Beverage Brilliance

The beverage aisle has seen an onslaught of innovative refreshments in recent years—and consumers are drinking it up. Instead of having only a few brands of soda or juice to choose from, today’s consumers have the option to reach for functional beverages, bottled waters, old classics and more. 

"Functional beverage” has become somewhat of a buzzword, as more and more consumers look for drinks that will not only quench their thirst, but will also offer additional benefits. A recent study from Mintel found that consumers are demanding beverages that support their fast-paced lifestyles, with 49 percent of the consumers that participated in the study saying vitamins and minerals were the most desirable qualities they are looking for in their ideal “hybrid” drink.

Among the hybrid drinks that consumers say they tried or enjoyed regularly, bottled water with added health benefits—such as protein, vitamins and antioxidants—was important to 44 percent. Carbonated juice was desired by 40 percent of the consumers and juices with added functional benefits, such as energy or relaxation, were desired by 35 percent of the consumers.  

Antioxidants (42 percent), energy (37 percent) and electrolytes (33 percent) also topped the list of attributes that consumers said they looked for in their ideal hybrid drink. Mintel found that older iGens (aged 18-21) are significantly more likely than consumers overall to desire mood-enhancing attributes in their ideal hybrid drink, such as energy (51 percent) and relaxation benefits (35 percent).

The beverage industry has managed to change with the times. This is largely thanks to the exceptional companies that have worked to drive it into the modern era. Grocery Headquarters first Beverage Trailblazers were chosen based on their innovation, high-quality products and ability to be great partners for retailers. These companies are being honored as industry leaders that have helped turned the beverage aisle into what it is today. 

So, without further ado, the inaugural Grocery Headquarters Beverage Trailblazer Award winners are: 

​Anheuser-Busch 

Officials with St. Louis-based Anheuser-Busch have noticed shoppers are making purchases from more retail outlets across multiple channels. They have also noticed online purchases through home delivery and click-and-collect are increasing in the retail space.   

“As competition continues to grow in the retail space, channels are blurring,” says Adam Byrne, vice president of category leadership. “We work to identify core shoppers and understand the specific occasions the shoppers are purchasing beer for.” 

 To grow the beer category, Anheuser-Busch has identified ways to expand consumption occasions by focusing on strategies to attract more shoppers, drive more trips and increase basket size. By deploying these strategies, the company has been able to grow the category overall, Byrne says. 

“We’ve deployed strategies to change the way beer is promoted to shoppers through promotion optimization,” he says. “Utilizing these tactics increases basket size and enhances margin for the category.”

Bing Beverage Co.  

Bing Beverage Co’s. premium, lightly carbonated, moderately caffeinated, juice-based beverage offers consumers a unique refreshment experience that is unlike anything currently on the market, says Susie Seckman, owner and vice president of the Lakewood, Colo.-based company. 

“Bing is truly a celebration of taste and functionality,” Seckman says.  “All four of our Bing varieties provide a tasty alternative to other caffeinated drinks. Bing is all about taste—still low in calories and carbs with no high fructose corn syrup. It appeals most often to those looking for a better-for-you option or those that simply want a truly delicious beverage.”

Seckman says the company’s relationship with its retail partners is paramount to its success, and Bing is unique in its ability to provide individualized programs to each retailer it works with. These programs include features such as promotions, display materials and market support by account. 

“The time and effort we put into supporting our retail partners is something that sets us apart,” Seckman says.  “Using real Bing cherry juice in all of our varieties allows us to team up with the top industry groups and grower/shippers. We take pride in our ability to cross promote with fresh produce in order to sell more fresh cherries (along with apples, blackberries, and raspberries) while promoting our brand.” 

Boxed Water 

Boxed Water was founded on the belief that sustainability matters and the company has the purpose of changing the way packaged water is shipped, sold and drank, say officials for the Grand Rapids, Mich.-based company, which has boxing facilities located in Michigan and Utah.

Boxed Water provides consumers with a better option for purchasing packaged water by producing pure water in recyclable cartons made using paper from well-managed forests. The company is a member of 1% for the Planet and partner of the National Forest Foundation (NFF).  

“It’s an honor to receive the Trailblazer award,” says Daryn Kuipers, CEO. “At Boxed Water, we believe that we can help the planet by changing the way water is packaged, shipped and enjoyed.  We are obsessed with helping the planet by providing a more sustainable alternative to plastic. We are excited about the recognition we are receiving both here and with the passionate response we’re receiving from our consumers every day. They are the true trailblazers.”

Celsius Holdings 

The beverages offered by Celsius Holdings are backed by multiple studies, which show that a single serving of CELSIUS burns 100 to 140 calories by increasing the resting metabolism an average of 12 percent and providing sustained energy for up to a three-hour period. The exercise-focused studies demonstrated that CELSIUS delivers additional benefits when consumed prior to exercise, these benefits include increased fat burn and building muscles mass, as well as increased endurance. 

“There is no other brand on the market that offers proven functional benefits with superior taste and flavor options,” says Vanessa Walker, executive vice president of sales and marketing. 

The Boca Raton, Fla.-based company offers three unique product lines; Original and CELSIUS HEAT, sweetened with sucralose; and Natural, sweetened with a blend of stevia and Erythritol that is naturally caffeinated. 

CELSIUS drinks have no artificial preservatives, aspartame or high fructose corn syrup and are very low in sodium. The products are made using high quality better-for-you ingredients and supplements such as green tea (EGCG), ginger, calcium, chromium, B vitamins and vitamin C. 

Walker notes that consumers are increasingly focused on living an active and healthy lifestyle as opposed to participating in diet fads. She has noticed that consumers tend to do more research today and place value on better-for-you options, and adds that consumers are also requiring that brands meet specific criteria that are unique to their lifestyle, such as gluten-free and non-GMO.

“CELSIUS is perfectly positioned as a proven, healthier alternative and can deliver the value that consumers place on authenticity,” Walker says. “These consumers will demand true function from brands and CELSIUS Fitness Drinks define that.”

The Coca-Cola Co. 

Since its founding more than 130 years ago, The Coca-Cola Co. has had an enduring commitment to being its customers’ most trusted and valuable partner. The Atlanta-based company calls this the “Coca-Cola Commitment for Retail.” 

“Every day, we deliver on this commitment by leveraging six core capabilities, which enables us to anticipate beverage trends and provide customers with the best assortment of products to meet consumer needs,” says Pam Basciani, group director, retail channel strategy and commercialization for Coca-Cola. 

For example, health and wellness-oriented beverages are currently experiencing massive growth, Basciani says, and the still and premium water category collectively has the highest dollar growth of any beverage category, and sales of RTD tea are forecasted to grow 19.7 percent between 2015 and 2020. 

“We expect this trend to continue in the coming years, so in response to these changing consumer needs, The Coca-Cola Co. has introduced new products like Gold Peak RTD Tea Lattes and new flavors of popular products like DASANI Sparkling,” Basciani says. 

These are only two examples of how The Coca-Cola Co. invests in beverage innovation to meet consumers’ developing beverage needs and interests. In the first quarter of 2017, Coca-Cola released a variety of new products, including two flavors of POWERADE, one new flavor of vitaminwater zero, two varieties of Simply juice drinks and three exotic flavors of Minute Maid, as well as two new transactional packages of Coca-Cola mini cans (6-packs and 10-packs). 

The company has grown its RTD coffee portfolio to include Illy, Gold Peak and Dunkin’ Donuts, and expanded its RTD tea portfolio—which includes new offerings like FUZE “Sweet and Lightly Tart” Flavor Fusions, Gold Peak RTD Tea Lattes, Gold Peak Diet Green Tea, Gold Peak Slightly Sweet Tea and Honest Tea Unsweet Peach Ginger Tea. 

Constellation Brands  - Beer Division 

Jennifer Dohm, spokesperson for Constellation Brands’ beer division, says that for decades, the company has been committed to building strong brands through a focused, deliberate approach, consistent messaging and fostering emotional connections with consumers through impactful marketing such as Corona’s iconic “Find Your Beach” campaign.

“As consumers’ taste preferences continue to shift to high-end brands, Constellation is uniquely positioned to lead the growing high-end segment of the market,” Dohm says. “The company is committed to serving as a true partner and insights provider to its distributor and retail partners, helping them not only keep up with consumer trends as they evolve, but also helping them anticipate future changes and adapt to them. The company believes that by working together, the beer industry can remain strong and healthy for many years to come.”

Constellation Brands is a leading international producer and marketer of beer, wine and spirits. Its beer division is the No. 3 beer company in the U.S., with high-end, imported brands such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. In addition, Constellation acquired Ballast Point in 2015, which company officials say is one of the fastest-growing and most highly respected craft brewers in the country.

In 2016, the company, with its beer division based in Chicago, was the No. 1 growth contributor at retail and the No. 1 growth contributor in the U.S. beer industry, thanks in large part to Corona Extra, the nation’s No. 1 import for the last 20 years, and Modelo Especial, the No.2 import. 

KeVita 

KeVita was recently acquired by PepsiCo, which was the culmination of a partnership that began about three years ago. The acquisition will allow the Oxnard, Calif.-based company to take its distribution to the next level, which will help bring KeVita’s healthy probiotic beverages to more people in more places, says Andrew Thomas, director of marketing. 

“Even though we’re expanding our reach, we still remain true to our values and our manufacturing processes; still fermenting, innovating and bottling our products right at home in Ventura County,” Thomas says. “We can’t wait to leverage the combination of these resources to bring new and exciting products to the marketplace.”

KeVita’s Sparkling Probiotic Drinks launched in 2009 and were pioneers in the sparkling probiotic drink space. Now with more than 12 flavors, the drinks are caffeine-free and serve as an alternative to traditional carbonated sodas and high sugar drinks. Made with a proprietary water kefir culture, the drinks are dairy-free and crafted with live probiotics and certified organic ingredients.

Living Essentials

Inspired by consumer demand, Living Essentials is adding two flavors to its Extra Strength 5-hour ENERGY shots line. The Apple Pie flavor was released as part of the brand’s official sponsorship of the Major League Baseball (MLB) All-Star Game. Several baseball-themed displays featuring this new flavor are available to retailers. To help promote this sponsorship a commercial featuring Houston Astros All-Star second baseman Jose Altuve will also promote the campaign. The promotional flavor will be available throughout the MLB season. 

The Farming Hills, Mich.-based company will also be test-marketing Fiery Cinnamon Extra Strength 5-hour ENERGY shots starting this spring. The unique flavor profile will remind consumers of hot cinnamon candies, says Carl Sperber, vice president of creative, and will be released in November.

“Product promotion is the key component not only to the success of the 5-hour ENERGY brand, but also to our company as a whole,” Sperber says. “We have a long track record of major media marketing and advertising, especially national TV campaigns. Today we are growing that reach by expanding targeted digital and social media marketing as well.”

Sperber notes that the company has also maintained a NASCAR sponsorship for 12 years. The unique program has allowed Living Essentials to not only promote the 5-hour ENERGY brand, but also its retail partners by sharing car space. 

“All of this is done to keep the 5-hour ENERGY brand in front of consumers, encourage trial and encourage them to make it part of their daily lives,” Sperber says. “Other things we do to support our retail partners is to work with them on designing customized displays, special packs and exclusive flavors.”

​Massimo Zanetti Beverage 

Massimo Zanetti Beverage (MZB), with a four-generation legacy of field-to-cup creation, helps its customers make the coffee aisle a destination experience.

“We partner with our customers to build comprehensive coffee portfolios that include our brands as well as single-serve, premium, and soluble coffees in their own brands,” says Clay Dockery, vice president of retailer brands for the Moonachie, N.J.-based company.

“We offer full access to the tools, products and brand support to convert shoppers to loyal store brand coffee customers.”  

Today’s consumers are consciously seeking out products made with sustainability in mind, notes Dockery. Massimo Zanetti offers the first certified 100 percent commercially compostable single-serve coffee pod to meet those needs. 

Dockery adds that Massimo Zanetti allows retailers to deliver today what will soon be the industry norm. MZB’s PURPOD100 is made from more than 90 percent renewable resources, and is certified by the Biodegradable Products Institute (BPI) to completely break down in commercial composting facilities, returning valuable nutrients to the soil.

The first retailer in the U.S. to offer consumers PURPOD100 under its private brand label has seen tremendous success since the launch in November 2016, Dockery says. The company’s brand has grown volume share 6 percent and has one of the highest overall store brand shares for single serve coffee in the U.S. 

“In addition, customers are very pleased [they] have changed to the compostable coffee pods’ and are impressed with the quality, saying, ‘the coffee is delicious,’” Dockery says. 

Mountain Valley Spring Co. 

With bottled water and sparkling water on the rise, driven in part by consumers looking for alternatives to soda and artificially sweetened and flavored beverage, Mountain Valley is a great choice for retailers across the country, company officials say. Mountain Valley Spring Co. offers spring and sparkling waters, as well as new sparkling water with fruit essences.

The Hot Springs, Ark.-based company’s water comes from a single spring source in the Ouachita Mountains, and has been bottled in glass at the source since 1871. 

“It has a long and storied heritage that resonates with consumers looking for healthy benefits, great taste and corporate integrity,” says Rick Tanner, president. 

The Mountain Valley has been naturally filtered over thousands of years, so it picks up a rich profile of minerals and emerges with a naturally high alkalinity that offsets the typically acidic American diet. Those healthy minerals also give the water its taste, which has been praised by chefs, celebrities, foodies and water enthusiasts.

“In addition, The Mountain Valley stands out as a domestic option in a sea of imports, making it an attractive pick for consumers looking for locally sourced products,” Tanner says. 

The company purchased 2,000 acres of forest surrounding the spring to protect and preserve the land, so consumers can expect Mountain Valley’s water to be enjoyed for another 150 years.

“On trend and aligned with category’s key strategies for success, Mountain Valley provides a brand solution to create a differentiated and compelling consumer experience in-store,” Tanner says. 

​Nestlé Waters North America

Nestlé Waters North America has relaunched NESTEA Iced Tea, offering real-brewed tea varieties and transformed the packaging within the U.S. market. 

“The complete reinvention, from the flavors to the ingredients, the bottle and the branding, was completely shaped from consumer research,” says John Zupo, president, customer development and sales operations for the Stamford, Conn.-based company. 

The new premium product line offers four real-brewed teas, as well as a spin on its classic flavors of lemon, peach, and raspberry. The relaunch marks the first major overhaul of the brand’s visual identity, packaging and formulation in its 70-year existence.

The flavored varieties do not contain high fructose corn syrup, artificial colors or flavors and are made with real sugar and stevia extract. Additionally, the new range of real-brewed teas is made with up to five simple ingredients (water, sugar, tea, rooibos and citric acid). The tea leaves for NESTEA are exclusively sourced from Nilgiri, India, a region known for producing high-quality tea leaves. 

To showcase the product, the new NESTEA has a contemporized, transparent bottle with a wider mouth and easier gripability. In addition to the complete relaunch, the company is partnering with select grocery retailers to launch in-store activations including in-aisle signage, Catalina coupons and “tiny house” sampling events in selected markets.

True Drinks

True Drinks is the maker of AquaBall, a children’s beverage that is completely sugar-, calorie- and preservative-free. The Irvine, Calif.-based company recently completely rebranded the product, which included a change in production from a cold fill process to a hot fill process to remove preservatives as well as an initiative to make the bottle shape more convenient for children’s hands and car-seat cup holders. 

“AquaBall continues to innovate the children’s beverage market with the intent to change the landscape of children’s obesity and diabetes one less sugary beverage at a time,” says Kevin Sherman, CEO of True Drinks. 

Sherman says the consumer is becoming more educated than ever before regarding the ingredient core of beverages, meaning they are becoming “label readers.” He says this means marketing lingo such as “less sugar,” “no added sugar, “no HFCS” and “organic sugar” are no longer necessarily effective once a consumer reads the label on many products. 

“Sugar is sugar is sugar… and children need less sugar rather than more sugar in their daily nutrition intake,” Sherman says. “We will continue to see a decline in excessive sugary beverages as the epidemic of diabetes and obesity continues to rise. Education will be paramount as we have learned at AquaBall.”

Sherman notes that, according to the American Heart Association, children under 8 years old should consume no more than three to four teaspoons of sugar a day, but many conventional juice pouches contain more than four teaspoons of sugar per serving. 

“The health effects are compounded when children drink three to four juice boxes or pouches a day,” Sherman says.

He also notes the recent sugar tax that is gaining steam across the country is focused primarily on carbonated soft drinks, but is opening up “Pandora’s box” for all excessively sugary beverages. 

“The big companies are beginning to realize that excessive sugar offerings will present a titanic concern in driving top line revenue,” he says. 

The Boston Beer Co.

The Boston Beer Co. began in 1984 with a generations-old family recipe that founder and brewer Jim Koch uncovered in his father’s attic. Koch decided to sample his beer with bars in Boston and named the brew Samuel Adams Boston Lager, in recognition of one of the nation’s founding fathers. Samuel Adams Boston Lager would soon move on to become a major driver of the American craft beer revolution.

Today, the company, which is still based in Boston, offers more than 60 styles of beer. It pursues the development of new styles and the perfection of classic beers by searching the world for the finest ingredients, company officials say. Using the traditional four vessel brewing process, the company often takes extra steps like dry-hopping, barrel-aging and a secondary fermentation known as krausening. 

The Boston Beer Co. has been committed to elevating the image of American craft beer by entering festivals and competitions around the globe, officials say, and is one of world’s most awarded breweries at international beer competitions. 

Celebrating its 21st birthday this summer, Sam Adams Summer Ale was first brewed back in 1996 and went on to win 76 awards. Summer Ale balances bright, citrusy flavors, hops and peppery spice and is brewed in the Hefeweizen tradition. Officials suggest pairing it with summery dishes such as grilled corn, baked clams, lobster rolls and Key lime pie. 

“We are honored to be awarded the 2017 Trailblazer Award for the beverage category. With the increasingly-diverse and complex beer category, it’s important that independent American breweries like Samuel Adams remain a mainstay on grocery store shelves,” says George Ward, director of off-premise national accounts. “We look forward to more years to come of innovation and working with retailers to offer a better beer to drinkers.”

Old Orchard Brands 

Old Orchard Brands operates a state-of- the-art manufacturing facility that is certified to the highest food safety and quality management standards set by the Safe Quality Foods Program. 

“We are constantly seeking out the latest flavor and health trends as we craft unique new juice products,” says Kevin Miller, vice president of marketing for the Sparta, Mich.-based company.

The company’s current product portfolio includes an array of 100 percent juice products, juice cocktails, reduced-sugar juice drinks, lemonades and frozen drink mixers.

Last year, Old Orchard expanded its Organics line to include four new juice products that are USDA-certified Organic and non-GMO Project verified. It also launched two organic frozen juice concentrates and is offering a new Strawberry Rhubarb 100 percent juice blend, available in a frozen concentrate.

Old Orchard Brands started out as a farming operation in the middle of a Michigan apple orchard. The company was founded in 1985 by fourth generation growers Mark and Lisa Saur, who took over the family’s juice processing business and began making frozen juice concentrates. The company made a rapid expansion across the Midwest and started bottling shelf-stable juices in 1997. 

“Old Orchard remains a family-owned and operated company and has grown to offer more than 100 bottled and frozen juice products available in stores across the nation and around the world,” Miller says. “Old Orchard is passionate about bringing to market only the highest quality fruit juices and innovative blends.”

​Pernod Ricard USA

Pernod Ricard USA is always looking at ways to make itself more relevant and innovative, says Michael Robinson, chain sales director, West. The New York-based company recently looked at its Absolut flavors and noticed a need for an additional fresh flavor to make its citrus line complete. Lime seemed like the best opportunity, and the company launched Absolut Lime in February. It has been a huge success and it is among the fastest growing flavored vodka launches over the last three years, Robinson says. 

In addition, Pernod recently launched Martell VS Single Distillery. It is crafted with spirits distilled from one source, which results in a rich cognac with fruit aromas. Its unique shaped bottle is a reinterpretation of the “montre,” which is a traditional and historical cognac bottle.

Also launched was Martell Blue Swift. It is the first-ever Martell VSOP matured in French Oak casks and finished in Kentucky Bourbon casks. It too has a unique and disruptive bottle that evokes the shape of both Cognac and Bourbon casks. 

The Pernod Ricard USA Chain division approaches its customer base with targeted capabilities that amplify brand and category saliency, Robinson says.

“We zero in on shopper driven solutions such as simple drink solutions, product education, demand space programming and cross merchandise solutions,” he says. “Any program that we present we make sure to always ask ourselves, ‘Is this providing a solution to our shopper? Are we helping make their decisions easier at the last three feet?’”

The company also focuses on customer-driven solutions, which includes digital/e-commerce alignment, solutions to realize brand/category message commercially in-store with more points of interruption, retail promotional and shelf and lockbox solutions. 

“At the end of the day, if it does not work for our retailers than it will not work for our shoppers,” Robinson says. “The Pernod Ricard USA team always strives to provide strategic alignment and thought leadership within the alcohol category.”