Beverage Industry November 2011

DAIRY DRINKS & ALTERNATIVES

COLOR TRENDS

XYIENCE XENERGY

Almond, coconut milks surge iinto in to substitute spotlight

Within a spectrum of possibilities, natural options continue to rise

Brand differentiates through natural ingredients, UFC sponsorships

Trends, technology & products shaping the marketplace

November 2011

Quest for the

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Beer importer’s growth vision leverages individual brand strengths Crown Imports Chief Executive Officer Bill Hackett

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Imagine having a broader spectrum of natural colors for your soft drinks.

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November 2011

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Features 6 Beverage Beat 8 Industry Issues 18 Category Focus

45 Packaging

Almond milk and soymilk contend for top dairy alternative spot.

Color trends address natural demands and stability concerns.

22 Special Report

56 Ingredient Spotlight

Contract manufacturers cater to customers.

Will cherry be the next superfruit to rise to the top?

26 New Products 30 Cover Story Crown Imports’ growth vision leverages individual brand strengths.

38 Plant Focus Grupo Modelo’s newest plant in Mexico sets a global standard.

43 Up Close With… Xyience Xenergy

44 Marketing *Patent Pending

Gefördert vom Bundesministerium für Wirtschaft und Technologie aufgrund eines Beschlusses des Deutschen Bundestages

Labeling materials adapt to packaging forms and functions.

49 Beverage R&D

58 Distribution 2012 trucks designed for advanced power, green options

66 Operations Filling machines address beverage trends, flexibility and hygiene.

67 Supplier’s Marketplace 70 Classifieds 74 The Last Drop Cover and cover story photos by Marta Garcia.

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Beverage Beat

VOLUME 102, NUMBER 11 PUBLISHER Midwest/West Coast Sales

STEVE PINTARELLI

Is just-for-me the new better-for-you? AS THE INDUSTRY CONTINUES TO WATCH THE RISE OF better-for-you products, it seems certain consumers also are searching for just-for-me products. Whether it’s a coffee beverage made with personally preferred ingredients or choosing a brand that embodies one’s personality, the customization trend has begun to permeate the industry. At this year’s National Association of Convenience Stores (NACS) Show in Chicago, Oct. 1-4, Kraft Foods launched the first expansion of its Mio liquid beverage mix line with Mio Energy. Scheduled to be available in convenience stores in the coming months, Mio Energy is a liquid water enhancer available in Black Cherry and Thunder Punch varieties that contains caffeine and vitamins B3, B6 and B12. A preview postcard for the launch specifically highlighted that “millennial consumers demand products they can customize and personalize.” At the show’s “What’s Hot in Coffee” session, panelists discussed the importance of variety in making a convenience store a beverage destination. Jennie Jones, vice president of marketing and communications for S&D Coffee, recommended that convenience store operators re-envision their hot beverage selection and think about improving coffee quality, adding single-origin coffees, offering a variety of condiments, redefining cup sizes, and to consider the addition of hot teas and hot chocolates as ways to cater to more customers. One session attendee inquired as to how convenience stores can get younger consumers who prefer energy drinks to switch to coffee selections. Jones and her fellow panelists Michael McLaughlin, product development manager for Wawa, and Ric Martin, vice president of chain account development for Bunn North America, recommended sampling coffee varieties or increasing condiment offerings to encourage trial among younger consumers. The NACS Show floor was full of reasons why energy drink fans might not be ready to make the shift, namely the sheer number of energy options. In addition to category leaders Red Bull, Monster Energy and 5-Hour Energy, numerous beverage-makers displayed energized formulas designed for specific audiences. Pure Growth Partners attracted a crowd with the Oct. 3 appearance of hip-hop artist Curtis “50 Cent” Jackson, who is a part-owner in the charitable energy shot brand. Solvi Brands also was on hand with its Strut & Rut Energy Shots that are packaged in a shotgun shell-type bottle to specifically appeal to the hunting community. LXR Biotech featured its Perfectly Petite brand, which is described as a premium women’s energy shot with calorie-burning ingredients designed to be “a little black dress’ best friend forever.” The Coca-Cola Co. tempted NACS Show attendees with its Freestyle fountain dispenser that offers 125 combinations of flavors from its portfolio of brands and is currently being tested in convenience stores. Making its first appearance at the NACS Show, The Coca-Cola Co. said that the two Freestyle machines at its booth attracted more people on Oct. 2 than “Jersey Shore” cast member Nicole “Snooki” Polizzi, who made an appearance at a separate NACS booth that day.

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Big Red Inc., Austin, Texas, announced its purchase of Portland, Ore.-based Thomas Kemper Soda Co., which makes vintage and all-natural varieties of craftbrewed soda.

Industry Issues Anheuser-Busch invests in facilities

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nheuser-Busch (AB), St. Louis, announced a more than $1 billion investment to improve its breweries and other facilities in the United States. The plans include capital expenditures spent or committed in 2011 toward projects to further modernize brewing processes, upgrade systems to reduce greenhouse gas emissions, and install equipment for new products and innovations, among other items with additional allocations being made for projects through 2014, the company says. Since 2010, AB has launched the following improvement projects: $60 million invested in improvements at the company’s historic St. Louis brewery; $34 million for upgrades at its Houston brewery that include expanding production by an additional 500,000 barrels a year; $34 million to introduce packaging and brand innovation in Cartersville, Ga.; a $30 million investment to improve the Los Angeles brewery; and $27 million in upgrades at its Baldwinsville, N.Y., facility. AB also is investing in its agricultural operations and other facilities, including a $40 million investment in its Longhorn Glass facility in Houston.

AB’s parent company Anheuser-Busch InBev formed a strategic alliance with GE, Fairfield, Conn., to develop innovative manufacturing solutions that are designed to drive energy efficiency and water savings in existing and “greenfield” AB InBev facilities across China. AB InBev has defined key performance indicators related to energy use, water use and carbon dioxide emissions. With clear 2012 objectives to reduce the water-to-beer ratio to 3.5, reduce energy usage aggressively, and decrease carbon dioxide output and reliance on traditional energy sources through the use of biogas and natural gas, AB InBev sought a partner with global reach and a dedicated approach to the challenges facing the brewing industry. AB InBev and GE teams will work together to optimize solutions and define additional ones throughout the partnership. This initiative is expected to reduce carbon dioxide emissions by approximately 100,000 tons a year in addition to reducing water and energy consumption, according to the companies. BI

Coca-Cola marks international growth

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he Coca-Cola Co., Atlanta, realized growth across each of its five geographic operating groups and announced strong worldwide volume growth of 5 percent in the third quarter, with 1 percent volume growth in North America. Its year-to-date volume growth in North America also ranks at 1 percent, while worldwide volume growth was 6 percent, led by trademark Coca-Cola, which was up 3 percent in the quarter and year-todate, according to the company. Excluding cross-licensed brands in North America, primarily Dr Pepper brands, worldwide volume grew 4 percent in the quarter and 5 percent year-to-date, the company reported. North American cross-licensed brands contributed 1 percent growth to worldwide sparkling beverages in the quarter, The Coca-Cola Co. reports. Worldwide volume of sparkling beverages increased 3 percent, which was driven by a number of markets around the world, including a 17 percent increase in India, 11 percent growth in Argentina, a 7 percent rise in China, a 6 percent lift in Mexico and a 5 percent increase each in France, Germany and Great Britain. Worldwide still beverage volume grew 9 percent in the quarter, led by growth across the company’s portfolio of products, such as juices, juice drinks, ready-to-drink teas and water. Still beverage volume

grew 10 percent internationally and 4 percent in North America during the third quarter, the company reports. Minute Maid Pulpy continues to expand globally and achieved 20 percent growth during the time period, it says. Bottled water volume increased 11 percent in the quarter as the company continued to focus on innovative and sustainable packaging like its PlantBottle in North America, which is driving new customer listings, and its lightweight crushable bottle in Asia and Latin America, it says. In addition, the company and its bottling partner, Coca-Cola Hellenic, Athens, Greece, announced a $3 billion investment in Russia during the next five years, beginning next year. The announcement came with the official opening of a new Coca-Cola plant in the Rostov region of Russia. The investment into the Coca-Cola Hellenic Rostov facility, which has a production capacity of 450 million liters of beverages a year and is located in a 26.5 hectare area, has already amounted to more than USD $120 million. Worldwide, The Coca-Cola Co. and its bottling partners are investing nearly $30 billion during the next five years to support anticipated growth across its system. These investments range from new manufacturing facilities to new distribution systems to new marketing investments in emerging economies. BI

PEOPLE IN THE NEWS… The board of directors of The Coca-Cola Co., Atlanta, elected Nancy Quan, Coca-Cola’s global research and development officer, vice president of the company effective Jan. 1, 2012. Heineken USA, White Plains, N.Y., appointed Nick Lake senior director of category management and hired Monique Acevedo as vice president of innovation.

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PepsiCo Inc., Purchase, N.Y., announced Enderson Guimaraes will join the company as president of global operations. Consumer-driven marketing company Catalina, St. Petersburg, Fla., named Jamie Egastic as its new chief executive officer. The company also expanded its targeted coupon program to convenience stores.

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

Constellation Brands Inc., Victor, N.Y., purchased the remaining 50.1 percent of Ruffino S.r.I from MPF International S.r.I., an entity controlled by the Folonari family of Tuscany, Italy, for approximately $69 million. The National Beer Wholesalers Association (NBWA) and the Brewers Association awarded Powers Distributing Co., Orion, Mich., as the 2011 Craft Beer Distributor of the Year. Wine, spirits and beer wholesaler Horizon Beverage Co., Avon, Mass., broke ground on its new headquarters building in Norton, Mass. The $43 million project will renovate and expand a former General Motors warehouse and will have a total of 555,000 square feet of warehouse and office space. Sazerac Co. Inc., Louisville, Ky., purchased certain brands from Toronto-based Corby Distilleries Ltd. and shares of Corby’s manufacturing and bottling facility in Montreal for a total price of $32.9 million, plus the value of inventory on hand at closing. Pacific Water & Drinks Group Ltd., which is owned by Jon Olafsson, co-founder and chairman of Icelandic Water Holdings Ltd., completed its acquisition of nine companies in China and Hong Kong from China Water & Drinks, formerly owned by Heckmann Corp. Joint Juice Inc., San Francisco, acquired the Premier Nutrition brand and its assets. Premier Nutrition Inc., Carlsbad, Calif., offers several lines of high-protein nutrition products, including ready-to-drink shakes. The Coca-Cola Co., Atlanta, announced that Five Guys, Lorton, Va., will install two Coca-Cola Freestyle fountain dispensers in all company-owned restaurant locations nationwide. Pernod Ricard USA, Purchase, N.Y., named the Minnesota division of Southern Wine & Spirits of America Inc., Miami, as the exclusive distributor of its full portfolio of wines and champagnes and the preferred spirits distributor in Minnesota. Cheerwine, Salisbury, N.C., partnered with Pepsi Beverages Co. to expand distribution of its namesake beverage to Atlanta, Memphis and Florida. W.J. Deutsch & Sons Ltd., White Plains, N.Y., signed a five-year distribution agreement with Martignetti Companies, Norwood, Mass., in several New England states. The agreement formalizes and extends Martignetti Companies’ and its subsidiaries’ existing rights to market and sell Deutsch wines and spirits in Massachusetts and New Hampshire, while granting exclusive rights in Rhode Island. Skinny Nutritional Corp., Bala Cynwyd, Pa., announced Skinny Water varieties are now available at all 251 Albertsons store locations throughout southern California and Nevada as well as at all 196 Meijer locations in the Midwest. Xyience, Las Vegas, formed a deal with Skyland Distributing Co., Asheville, N.C., to add distribution of Xenergy drinks in western North Carolina.

PepsiCo worldwide beverage volume grows 4 percent in Q3

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epsiCo, Purchase, N.Y., reported growth in volume, net revenue, operating profit and earnings per share for the third quarter of 2011 driven by top-line gains across its worldwide snack and beverage businesses and from the acquisition of Russian dairy and juice company Wimm-Bill-Dann (WBD). Worldwide beverage volume increased 4 percent, including a 3 percent point impact from the WBD acquisition, the company reports. Volume performance was led by growth in emerging markets where organic volume increased 3 percent in beverages. Volume at PepsiCo Americas Beverages (PAB) increased slightly and net revenue increased 3 percent reflecting incremental pricing actions taken in the quarter across much of the portfolio. Mid-single digit volume growth in non-carbonated beverages offset declines in carbonated soft drinks, the company says. Non-carbonated beverage volume growth in North

America was led by a 9 percent increase in Gatorade. Within the United States, PAB’s volume share of the liquid refreshment beverage category grew slightly in the quarter, it says. PAB’s Latin America Beverages delivered solid volume growth in the quarter driven primarily by strength in Mexico, Central America and Brazil. In Europe, PepsiCo’s organic beverage volume declined mid-single digits, it says. The company’s Asia, Middle East and Africa division reported a 6 percent increase in beverage volume, which was led by strong performance in key emerging markets, it says. The company noted double-digit beverage volume growth in India and Saudi Arabia. Beverage volume growth in China was affected by the introduction of a consumerpreferred 500-ml. PET value package, which drove strong unit and net revenue growth, but adversely affected reported volume growth, the company says. BI

Samuel Adams expands small business philanthropy program

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he Boston Beer Co., Boston, expanded its philanthropic initiative, Samuel Adams Brewing the American Dream, to Chicagoland food, beverage and hospitality small-business owners. The Chicago expansion of the program, which provides access to loans for small businesses, is in partnership with Accion Chicago, a member of the Accion U.S. Network. Previously launched in New England, New York, Ohio and Pennsylvania, the Samuel Adams Brewing the American Dream program will now provide Chicago-based small businesses with access to loans ranging from $500 to $25,000. The loans, which are provided through the partnership with Accion, can be used for a variety of business purposes including expansion, equipment and marketing. In addition to the local initiatives, the program also is available to craft brewers nationwide. So far, Samuel Adams Brewing the American Dream has provided funds to three craft breweries. Jim Koch, brewer and founder of The Boston Beer Co., says with the growth in the industry, he looks for brewers that have a

particular niche, such as Jim Woods, owner of MateVeza, a craft brewery that makes naturally caffeinated beers with yerba mate. The craft brewery program keeps the company in touch with its roots, he says. “I’m still dealing with labeling and sourcing issues, so it doesn’t take me back, it takes me forward,” Koch says. “One of the really good things for Boston Beer is that this program keeps us in touch with our entrepreneurial and small-business roots. Even though we’re 1 percent of the U.S. beer business, that’s still small and we need to keep that mentality in mind.” The company also announced that Jim Woods of MateVeza and Chris Spinelli and Jon Mervine of Roc Brewing Co. received the first Samuel Adams Brewing the American Dream Experienceship. The recipients will have the opportunity to visit Samuel Adams’ Boston brewery and meet one-on-one with employees from the Samuel Adams team to learn more about a range of brewing and business topics, including communications, branding, marketing, packaging, legal, sales and distribution-related issues. BI

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Industry Issues Coca-Cola shares plans to advance sales momentum in North American market

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he Coca-Cola Co., Atlanta, at its North America Market Tour event in Houston in late September highlighted the company’s North American roadmap for growth goals, which are to build strong brands, translate brand value into customer value, and build the capability to sustain and repeat success in the region. Sandy Douglas, president of Coca-Cola North America, and Steve Cahillane, president and chief executive officer of Coca-Cola Refreshments, noted the benefits of bringing together portions of The Coca-Cola Co., Coca-Cola Enterprises and the bottling investments group as Coca-Cola Refreshments. The combined teams now are able to follow one set of goals and work to become the No. 1 most valued supplier to all of its customers, the company said. “It’s a tremendous time and we have a tremendous opportunity,” Douglas said. “We have an opportunity to leverage the most popular brands in the world and an opportunity to deliver these strong brands in an even stronger opportunity model.” Its brand strategy platform includes expanding the Coca-Cola trademark, growing in the still category, and developing, testing and deploying new brands and business opportunities, Douglas said.

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BRAND STRATEGY

The Coca-Cola Co. will roll out a new 12.5-ounce hand-held package priced at $0.89 nationally in 2012.

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Katie Bayne, president and general manager of sparkling beverages for Coca-Cola North America, explained that the sparkling portfolio has seen a 10 percent increase in consumer adoption of its no-calorie options since 2000. In 2011 year-to-date figures, 58 percent of consumers opted for trademark Coca-Cola, while 42 percent chose Diet Coke, Caffeine Free Diet Coke or Coke Zero, she said. In addition, the company has evolved its package positioning to cater to the more than 30 million incremental use occasions in the North American market, Bayne said. Its 16-ounce pre-priced $0.99 package added 30 million incremental use occasions, she said. The company’s mini cans also expanded use occasion options and at the event, the company announced the re-pricing of six-packs of the 7.5-ounce mini cans to $2.99. It also plans to nationally launch a 12.5-ounce Coca-Cola “handheld” package in 2012 that will retail for $0.89. The hand-held package will become the new value proposition to drive consumers into convenience stores, the company said. To continue growing sparkling category consumption, The Coca-Cola Co. targeted five areas, which are as follows: to recruit teens and young adults, to lead sparkling credibility, to engage family shoppers, to sustain adults, and to enhance occasion, brand, package, price and channel (OBPPC) architecture. To recruit teens, The Coca-Cola Co. activated digital methods such as its virtual soda fountain online feature and the @DocPemberton Twitter

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

account, which is named after the founder of CocaCola. The company also is targeting specific brands to certain age groups, such as 20 to 29 year olds for Diet Coke and 18- to 24-year-old males for Coke Zero. Its Seagrams and Caffeine Free Diet Coke brands are part of its strategy to sustain adults, Bayne said. In the still category, The Coca-Cola Co. highlighted the mid-August launch of Minute Maid Pure Squeezed, which is part of its plan to accelerate the company’s leadership in juice. Minute Maid Pure Squeezed is positioned as a premium juice option between the portfolio’s super-premium Simply Orange brand and value-positioned Minute Maid from concentrate options. The Minute Maid Pure Squeezed platform also provides the ability for enhanced juice varieties, the company said. Within the still beverage portfolio, The Coca-Cola Co. also aims to close its leadership gap in active hydration, which includes its Vitaminwater, Smartwater and Powerade lineups. The company also spotlighted its Dasani bottled water brand and its plans to differentiate and drive value for premium-priced bottled water, which include communication about the brand’s PlantBottle packaging. It also highlighted the possibilities of building still commercial capabilities, such as Simply coolers for singleserve juices, the Dasani Give it Back retail rack and Gold Peak foodservice machine. In addition, the company wants to build competitive platforms for the future in energy drinks and ready-to-drink tea with its brands Gold Peak, Honest Tea, Nestea, Full Throttle and Nos while incubating new growth, including relationships with Zico and Sokenbicha teas. The company also distributes the Monster Energy brand from Hansen Natural in retail accounts, which is included in its energy portfolio as a “mass appeal” brand alongside “high-performance” brand Nos and “blue collar/value” Full Throttle, explained Brian Wynne, president and general manager of still beverages for Coca-Cola North America.

EXECUTION AT RETAIL At the core of its expansion policy is its OBPPC strategy, which was pioneered by the Latin American division of the company. OBPPC is based on the principle that products need to be merchandised and marketed to appeal to consumers at the right time according to an individual use occasion. At retail, OBPPC is put into practice by locating specific brands, package sizes and bundle opportunities in the proper location to best capitalize on the consumer’s needs at that moment. For example, a convenience store consumer might be looking for a grab-and-go opportunity and can be enticed by value or an offer to add a snack for a given price. In a grocery store, the company creates multiple zones to attract consumers who might

with that consumer and leverages the company’s entire portfolio. Each channel has its own priorities regarding displays, brands, bundling offers and consumer connections. In addition to traditional retailers, the tour also included stops at foodservice outlets, which featured the Coca-Cola Freestyle fountain dispenser, and university locations that offer products through the company’s interactive vending machines. In order to execute at retail, Coca-Cola Refreshments has implemented strategies to move toward making the company the best supply system, explained Brian Kelley, chief product supply officer for Coca-Cola Refreshments. The company standardized processes, controls and metrics across its network of 78 manufacturing plants and 416 distribution centers, Kelley said. This has allowed for approximately $20 million in annual savings, improved service and improved safety, he explained. In addition, the company has seen a 9 percent increase in on-time deliveries and a 45 percent reduction in warehouse out of stocks. To fulfill ontime and fill-rate success for national foodservice and on-premise accounts, Coca-Cola Refreshments implemented a policy that decreases average order size, but increases delivery frequency, the company said. BI

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grab a meal on-the-go, are stocking their pantries or filling in a missed purchase. By contrast, the large format store shopper who is focused on value might be enticed by a middle-of-the-aisle display of 12-packs themed around a seasonal tie-in, such as fall football tailgating. Before implementing the strategy, the company said it had limited assortment, few price points and dispersed messaging. Now with OBPPC in place, the company has an optimized assortment, expanded price point and occasion messaging to align with shopper needs across channels and shopping occasions. The company showcased its OBPPC implementation through a market tour of various formats and retailers throughout the Houston area. The city is the fourth largest in the United States and has a highly diverse consumer base with more than 100 nationalities represented and 90 languages spoken in the market. Caucasians, Hispanics and African-Americans each represent more than 19 percent of Houston’s total population, the company said. The diversity of Houston often is viewed as a representation of the future demographic mix of the country, it noted. In each channel, The Coca-Cola Co. featured the various ways the Houston team embodies its “Look of Success” program, which tailors product mix to a store’s priorities, targets messaging to connect

The company added Minute Maid Pure Squeezed to its juice offerings in mid-August.

bevindustry.com | NOVEMBER 2011 | Beverage Industry |

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Industry Issues Beer distributors address industry’s opportunities at annual NBWA meeting

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he National Beer Wholesalers Association (NBWA) addressed strategies for its membership to return to growing beer volume during its annual convention and trade show, which took place from Oct. 16 to 19 in Las Vegas. The trade show featured products and services from 275 exhibitors, including beverages, warehouse technology, fuel management systems, software and promotional products. The association’s leadership spotlighted NBWA’s achievements in the last year, including federal legislation pursuits, improvement in the quantity and quality of relationships with distributors, and defeat of Costco’s ballot proposal to deregulate alcohol sales in Washington state. The association partnered with several organizations to donate time and money to defeat Costco’s initiative last year, but the retailer has returned with a new proposal that does not include beer, but seeks to allow retailers larger than 10,000 square feet to directly sell wine and spirits. The association continues its actions to defeat the proposal this year. Outgoing NBWA Chairman of the board Larry Del Papa of Del Papa Distributing Co., Galveston, Texas, passed the role to Steve Lytle of Columbia Distributing, Portland, Ore. Lytle highlighted the challenges that the

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

industry continues to face, such as the continuation of attacks on the three-tier system as well as the challenging economy and declining beer volume. Craig Purser, president of NBWA, highlighted the importance of brand building for the future of the beer industry. “It’s the brands that make this industry,” Purser says. “Distributors are in the brand building business. So are brewers, and so are retailers. Maintaining a three-tier system that includes independent distributors is good for everyone. It is good for brewers of all sizes looking for access to market.” MillerCoors Chief Executive Officer Tom Long discussed how beer’s competition is no longer confined within the industry, but rather coming from the spirits segment, which has consistently taken share from beer during the last few years. Taking a page from beer’s past successes, consumers are responding to spirit brands’ marketing and innovation of new flavors, packaging and repositioning, he noted. In order to compete, brewers have improved their understanding of distributors’ concerns and are supporting the market with investments, Long says. Although overall beer volume has decreased during the last year, import and craft beer segments both presented positive numbers. At “The Demographics

of Imported Beer: Surprises from the 2010 Census and Forecasts on Beer Consumer Migration” session, panelists said that changing demographics in the United States present a favorable opportunity for the import beer segment. Demographic expert Robert Schmidt said analysis of census data shows that in the next decade, the U.S. population will be older and the growth rate will slow with a projected decline in the white, non-Hispanic population through 2050. Import brands have an opportunity, especially those with ties to the growing Hispanic community, panelists noted. On Oct. 17, Bump Williams of Bump Williams Consulting moderated a panel of craft brewers that included Nikos Ridge of Ninkasi Brewing Co., Bob Sullivan of Boulevard Brewing Co., Rob Tod of Allagash Brewing Co. and Dick Yuengling of Yuengling & Son Co. Williams said the category is benefiting from organic growth as loyal consumers are buying more craft beers on- and off-premise. The brewers addressed what they look for in new wholesale partners and how important those partnerships are to mutual growth. Joe Thompson of Independent Beverage Group discussed consolidation trends within brewers as well as distributors at “The Evolving Three-Tier System” session. Thompson noted that beer distributors currently are experiencing solid profitability primarily due to beer price increases, diminishment of discounting, improved cost management and synergies from consolidation. However, he

emphasized that some of the cost cutbacks have affected customer service and value-added offerings that could have negative long-term effects on relationships. Attendees also heard from Lee Scott, former president and chief executive officer of Wal-Mart Stores Inc. The former retail executive noted that trends show that consumers are spending less money on material items, which he says can present an opportunity to sell more beer. In response, Wal-Mart is allocating more space to beer as the industry’s assortment grows and consumer purchase behavior shows they are interested in increased variety beyond just package options, he explained. Scott also noted that a proactive attitude from distributors as well as approaching retailers about how they can grow their business, increase sales and drive consumption will help both parties. NBWA also presented several awards, including the association’s Life Service Award that was presented posthumously to Gary Blinn, former president of Norfolk Beverage Co., Norfolk, Neb. Awarded for political action committee contributions, Boening Brothers Inc. of North Lindenhurst, N.Y., received the Whitey Littlefield Award. The Kenneth Kerr Award, which is presented to an NBWA member who goes above and beyond in promotion of its political action committee, was presented to Greg Lamantia of L & F Distributors LLC, McAllen, Texas. BI

bevindustry.com | NOVEMBER 2011 | Beverage Industry |

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Industry Issues NACS Show highlights new products, energized and functional innovations

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ore than 22,300 attendees visited the National Association of Convenience Stores (NACS) Show in Chicago from Oct. 1-4. This year’s event featured a record number of international attendees from 58 countries, the association said. The NACS Show featured a 387,000plus net square foot exposition floor with 1,333 exhibiting companies, including 324 companies new to the show. The following is a highlight of beveragerelated features during the show. Arizona Beverage Co., Cincinnati, (drinkarizona.com) introduced its new Raspberry Half & Half beverage that is made with black tea, juice and raspberry flavor and packaged in a bright red bottle. The company also highlighted its new CocoZona Coconut Water and Arnold Palmer Hard iced tea and lemonade alcohol beverage. Additionally, it announced new flavors for its Arizona 20-ounce PET tallboy bottles, including Unsweetened Brewed Tea, Pina Colada, Strawberry Colada, Blueberry White Tea, RX Stress Herbal Iced Tea and Raspberry Half & Half. It also featured a new Blueberry Coconut Water variety in its Rescue Water line. Brooklyn Bottling, Milton, N.Y., (brooklynbottling.com) featured its newest varieties of Tropical Fantasy Tea, Nature’s Own soda, Calvin Cooler alcohol beverages, and a variety of Horchata, a Hispanic rice-based beverage. The Coca-Cola Co. (thecoca-colacompany.com) highlighted the benefits of its aligned structure one year after its acquisition of its largest bottlers. The Atlanta-based company also introduced its $0.89 pre-priced 12.5-ounce bottle for its sparkling beverages that will launch early next year. The package will be heavily promoted outside of convenience stores to drive traffic inside, the company says. The Coca-Cola Co. also highlighted its frozen beverages, smoothies and Gold Peak iced tea dispensers as a method to help convenience stores increase traffic. It also promoted bundling options that pair its beverages with snacks from partners such as General Mills, Grupo Bimbo, Kraft Foods, The Hershey Co., Procter & Gamble and Kellogg Co. for a value proposition. The company also featured the Coca-Cola Freestyle dispenser, which it is testing in a handful of convenience store accounts. Dr Pepper Snapple Group, Plano, Texas, highlighted the national launch of Dr Pepper

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Ten, the new Diet Snapple Half-and-Half and its partnership with enhanced water brand Hydrive Energy (drpeppersnapplegroup.com). National Beverage Corp., Ft. Lauderdale, Fla., (nationalbeverage.com) showcased new flavors from its Everfresh, Faygo, Ohana, Rip It, Shasta, Clear Fruit and Mr. Pure lines. A 16-ounce Pineapple Mango flavor and a 24-ounce Strawberry Banana flavor were introduced to the Everfresh line. The Faygo brand launched Pineapple Watermelon and Diet Peach in 20-ounce and 24-ounce bottles. The Ohana line of beverages now is available in 1-liter bottles. Rip It energy drinks are available in new Red Zone, 3-Way and Le Moan’r flavors. The Rip It brand also includes 2-ounce energy shots. The Shasta line introduced Fiesta Punch, California Dream and Very Cherry Twist flavors. Clear Fruit offers a new Tangerine flavor. Mr. Pure’s new flavor is Pineapple Mango.

ENERGY EVERYWHERE 5-Hour Energy, Farmington Hills, Mich., (5hourenergy.com) showcased its numerous convenience store displays as well as its latest release, 5-Hour Extra Strength Grape. Bawls, Miami, (bawls.com) promoted its Cherry flavor, which launched in 10-ounce glass bottles in March of this year. The company’s other flavors, Original, Sugar Free and Root Beer, also are available in glass bottles. Bazi, Denver, (drinkbazi.com) showcased its Bazi All Natural Energy Shot, which contains an antioxidant-rich blend of eight superfruit extracts, 12 vitamins and D-ribose. Cold Star Inc., Ephraim, N.J., (coldstarinc.com) showcased its coffee-infused energy drink line Caf Fusion, as well as its ready-to-drink, all-natural TEAse line. Tampa, Fla.-based Cott Corp. (cott.com) was on hand at the show featuring its lineup of functional shots and variety of beverages that are available for private label accounts. Davies Enterprises, Cooper, Texas, showcased its Tweaker (tweakerenergy.com) energy shots. The 2-ounce shots are available in Pomegranate, Grape and Berry flavors and do not contain calories, sugar or carbohydrates. DynaPep, Boca Raton, Fla., (dynapep.com) announced it will launch new flavors in the first quarter of 2012. Its DynaPep Energy line will introduce Grape and Cherry flavors, and its DynaCalm line will add a Vanilla Cream flavor. DynaPep Energy and DynaCalm products feature time-released micro-shot technology. Hydrive Energy, Rye, N.Y., (hydriveenergy.com) showcased its new labels that will debut next year. The beverage is moving from a supplement panel to a nutrition panel, a spokesperson said.

Northfield, Ill.-based Kraft Foods debuted Mio Energy, the first expansion of its liquid beverage enhancer (kraftbrands.com/mio). Available in Black Cherry and Thunder Punch flavors, Mio Energy features caffeine and vitamins B3, B6 and B12. LXR Biotech LLC, Brighton, Mich., (lxrbiotech.com) unveiled its Eternal Energy and Perfectly Petite energy shots. Eternal Energy is an energy shot that retails for $1.99 a bottle, or two for $3, the company says. Perfectly Petite, another value-priced offering, is an energy shot with a calorie-burning function. Drinking one bottle burns 100 calories, the company says. Perfectly Petite is not yet available in stores. Monster Beverage Co., Corona, Calif., sampled a variety of its energy drinks (monsterenergy.com), including the new line extensions of its Rehab line. New Whey Nutrition, Oviedo, Fla., (newwheynutrition.com) showcased its BetaNOX pre-workout energy shots, which are available in Citrus Blast and Berry Lemon Blast flavors. The product is packaged in tall 3.5-ounce vials. NVE Pharmaceuticals, Andover, N.J., featured its Stacker2 energy drinks and shots (stacker2.com), including the Vitamin Shot line. Pure Growth Partners, New York City, celebrated the launch of its Street King energy shot (streetking.com), which feeds a child in need with every bottle of Grape or Orange Mango sold, with an appearance from co-owner and musician Curtis “50 Cent” Jackson on Oct. 3. Redux Beverages LLC, Valley Center, Calif., promoted its Cocaine beverages and introduced a new product: Cocaine energy shots (drinkcocaine.com). The bottle resembles a prescription bottle, the company says, and refers to its volume as a “dosage.” According to the company, it contains three and a half times more caffeine than the leading competitor. Adding to the energy category, Downers Grove, Ill.-based Sara Lee Foodservice (saraleefoodservice.com) teamed up with Jacked Up Energy (jackedupenergy.com) to promote new energy beverages that will be

available in early 2012. The companies also promoted the energy shot line, which is available in Gushin Grape, Wackedup Watermelon, Outrajus Orange, Bar Gin Berry and Lit Up Lime. StarMaker Products LLC, Malibu, Calif., (starmakerproducts.com) unveiled its Power Energy Drops. The product delivers a jolt of energy by dispensing a drop of the liquid on the consumer’s tongue. Available in Power Apple and Power Lemon flavors, the drops were designed to improve performance, endurance, concentration and reaction speed without a high concentration of caffeine. Xyience, Las Vegas, (xyience.com) released its new Xenergy Xtreme Frostberry Blast, which features Ultimate Fighting Championship middleweight fighter Wanderlei Silva on the can. Frostberry Blast’s flavor is a balanced blend of blueberry and raspberry flavors, according to the company.

FUNCTIONAL FORMATS Boca Raton, Fla.-based BioEngineered Supplements and Nutrition Inc. (BSN) (bsnonline.net) featured its Endorush energy shot and two new flavors of Syntha-6 protein beverages, Strawberry and Banana, during the show. BYB Brands Inc., Charlotte, N.C., (bybbrands.com) highlighted its Simmer and Tum-E Yummies brands. Simmer is a low-calorie relaxation drink made with 11 functional ingredients. It is available in Grape and Wild Cherry flavors in 16-ounce cans. Tum-E Yummies is a line of noncarbonated fruit-flavored drinks for kids. Each 10-ounce bottle is equipped with a spill-proof sport cap. Chill Drinks LLC, Miami, (drinkchillo.com) showcased its C+Swiss Hemp Ice Tea, an all-natural hemp-infused ice tea that is packaged in a can made of paper. Cutting Edge Beverages, Boca Raton, Fla., (cuttingedgebeverages.com) highlighted its X-Ade performance beverages, which come in six regular flavors and two lowcalorie flavors. VPX, Weston, Fla., (vpxsports.com) showcased new packaging and flavors. The company is phasing its Protein Rush! line out of Tetra Paks and into resealable plastic bottles. Additionally, its

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Industry Issues continued from page 15

Redline Xtreme Energy Drink and Redline Xtreme Energy Shot now are available in a Lemonade flavor.

NATURAL PROFILES Newport Beach, Calif.-based Activate (activatedrinks.com) promoted its two new flavors, Lulo Pear and Blueberry Pomegranate. Activate beverages hold the vitamins and flavors separate from the water until consumption. A twistable proprietary cap releases them into the water below. Bai Brands LLC (drinkbai.com) showcased its lineup of coffee fruit-infused beverages, such as the original Bai lineup, the five-calorie Bai5 line and the five-calorie Bai5 line in glass bottles. The Princeton, N.J.-based company also promoted its new marketing campaign, “The Secret is Out,” which showcases the benefits of coffee fruit. Blk Beverages (blkbeverages.com) extended its line of enhanced waters with the addition of Mango, Citrus and Berry varieties. The all-natural flavored waters contain the same fulvic acid, antioxidants, electrolytes and 77 trace minerals as the original Blk water, the New York City-based company says. Bug Juice International Inc., Brighton, Mich., (drinkbugjuice.com) promoted its new Bug Juice Naturals line. Bug Juice Naturals contain no added sugar, high fructose corn syrup, as well as no artificial flavors, colors and preservatives. The company says each 10-ounce bottle provides the following: two servings of fruit, one serving of vegetables, a half serving of milk, 100 percent of the recommended daily allowance (RDA) of vitamin C, 25 percent RDA of vitamin D, 30 percent RDA of calcium and 350 mg. of potassium.

showcased new packaging and flavors for its line of Teas’ Tea beverages. It also highlighted its antioxidant-filled Sencha Shot and Oolong Shot. Lifeway Foods (lifewaykefir.com) introduced its new 8-ounce “Grab & Go” sizes for its Lifeway Lowfat Kefir. The 8-ounce size also is available for the Lifeway Lassi and Lifeway Organic Kefir Probugs. The Morton Grove, Ill.-based company also promoted its Lifeway Bio Kefir, available in four-packs of 3.5-ounce bottles. New York City’s New York Spring Water (newyorkspringwater.com) reported a recordbreaking show with new accounts taking on its V-Blast product, which features liquid vitamins that are added to spring water upon opening. Pulse Beverage Corp., Westminster, Colo., (pulsebeverage.com) introduced its line of Cabana 100 percent Natural Fruit-Flavored Lemonades. The ready-to-drink lemonades are sweetened with a blend of pure cane sugar and stevia and are available in Lemonade, Strawberry Lemonade, Cherry Lemonade, Tropical Mango Lemonade and Island Spice Lemonade varieties. Vita Coco, New York City, (vitacoco.com) promoted its new sand-and-beach environmental marketing campaign as well as sampled its coconut waters, the flavors of which include Tropical Fruit, Acai & Pom, Pineapple, Tangerine, Peach & Mango and 100 percent Pure Coconut Water. Zico Pure Premium Coconut Water, Hermosa Beach, Calif., (zico.com) sampled its Chocolate coconut water variety.

ADULTS ONLY

Cintron Beverage Group, Philadelphia, featured its expanded line of Cintron Iced Teas and Fruit Ades (cintronbeveragegroup.com). The teas feature a blend of green or black teas with floral notes and fruit flavors, while the juice drinks are sweetened with organic cane sugar and made with 10 percent fruit juice. Frubob USA Inc., Brandon, Fla., (frubobusa.com) plans to move production from the U.K. to Florida by the end of the year. Therefore, it is changing its bottle sizes from 16.9 ounces and 8.4 ounces to 16 ounces and 8 ounces. It also announced plans to launch a new flavor, Strawberry, in the coming months. Frubob fruit floats feature pieces of real fruit in the beverage. Hint Water, San Francisco, (drinkhint.com) featured its Premium Essence Water as well as its Hint Fizz sparkling water, which is available in Blackberry, Watermelon, Strawberry-Kiwi and Peach flavors. InZone Brands, Atlanta, (inzonebrands.com) promoted its Tummy Tickler Tots, Tummy Tickler and Belly Washers juices for children. The drinks’ packaging are BPA-free and spill proof. Ito En USA Inc., Honolulu, (itoen.com)

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

The Boston Beer Co., Boston, celebrated its support for convenience stores by sampling its popular seasonal Samuel Adams Octoberfest variety (samueladams.com) and Twisted Tea flavored malt beverages (twistedtea.com). E.&J. Gallo Winery, Modesto, Calif., (gallo.com) highlighted its new Barefoot Bubbly Sparkling Pink Moscato Champagne and Edna Valley Chardonnay. Hangover Joe’s Products, Cincinnati, (hangoverjoes.com) featured its Hangover Joe’s Recovery Shot with new labels that include characters from the movie “The Hangover.” The product is designed to take in the morning to aid in relief of a hangover, the company says. Party Armor, Bay City, Mich., (drinkpartyarmor.com) showcased its hangover shot that is designed to be consumed prior to going to sleep. Sierra Nevada Brewing Co., Chico, Calif., (sierranevada.com) sampled a few of its beers and highlighted the launch of Sierra Nevada Pale Ale in cans available nationwide in February. BI

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Category Focus

Substitutions expand non-dairy options Almond milk battles soymilk for top dairy alternative spot

IN 1999, THE U.S. FOOD AND DRUG ADMINISTRATION (FDA) APPROVED A health claim allowing soymilk manufacturers to state that consuming 25 grams of soy protein in a diet that is low in saturated fat and cholesterol can reduce the risk of coronary heart disease, says Virginia Lee, senior research analyst at Chicagobased Euromonitor International. This claim boosted the popularity of soymilk, and it continues to be the most popular dairy alternative beverage today, she says. However, the research firm estimates that sales of soymilk declined 5.8 percent from $981 million in 2009 to $924 million in 2010, and another 8.5 percent in 2010 reaching $846 million in 2011.

>>

“Soymilk’s decline is due to consumer migration from soymilk to other dairy alternatives such as almond milk and coconut milk due to taste, health concerns and calories,” Lee says. “Many U.S. consumers have been switching from soymilk to almond milk because they consider almond milk to be better tasting than soymilk. Almond milk is also gaining fans because it contains fewer calories than soymilk.” Although almond milks have been available in health food stores for many years, they’ve only recently emerged in the mainstream market, according to Innova Market Insights, Duiven, the Netherlands. The United States led this trend with nearly one-fifth of dairy alternative drink launches in 2010 recorded by Innova Market Insights being WhiteWave Foods, which markets the leading almond milk or almond milk blends. dairy alternative brand Silk soymilk, launched Silk Pure Coconut this year. This spring, Tree of Life, based in St. Augustine, Fla., launched its Almond Beverage line. The dairy alternative includes (individual brands) vitamins A, D and E as well as calcium, iron and protein. % CHANGE VS. MARKET SHARE % CHANGE VS. DOLLAR It is available PRIOR YEAR PRIOR YEAR SALES in Chocolate, Silk Soymilk $205,715,900 -7.8 32.4 -8.7 Vanilla, Original, Blue Diamond $86,395,060 114.2 13.6 6.2 Unsweetened Vanilla Almond Breeze and Unsweetened Silk Pure Almond $74,665,860 172.7 11.8 6.7 Original flavors. Silk Light Soymilk $70,342,580 -5.2 11.1 -2.6 Broomfield, Colo.Private Label based WhiteWave $59,001,220 0.5 9.3 -1.5 Soymilk Foods, which offers Lifeway Kefir $32,583,320 28.9 5.1 0.5 the Silk soymilk line that continues to lead 8th Continent $21,157,370 -2.6 3.3 -0.7 Soymilk the dairy alternative category in sales Silk Plus Soymilk $14,120,080 -16.6 2.2 -0.9 and market share, Odwalla Protein $13,170,770 13.1 2.1 -0.1 launched Silk Pure Monster Almond in 2010. Meyenberg $10,175,390 -3.1 1.6 -0.3 Goat Milk This summer, the product was named Category Total* $634,328,600 17.0 100.0 — to Chicago-based *Includes brands not listed. SymphonyIRI’s Top Source: SymphonyIRI Group, Chicago. U.S. supermarkets, drug stores, gas and convenience stores and mass 20 New Product merchandise outlets, excluding Walmart, for the 52 weeks ending Sept. 4, 2011.

Top refrigerated kefir/ milk substitutes/soymilk

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

Pacesetters for 2010. To earn the title of New Product Pacesetter, a new product or line extension must reach at least $7.5 million in year-one sales across food, drug and mass channels, excluding Walmart, complete a full year of sales and have 30 percent actual cash value weighted distribution, the market research company says. Additionally, Silk Pure Almond ranked No. 11 on SymphonyIRI’s list of the Top 20 best-selling products of 2010.

COCONUT CONCOCTIONS This year, WhiteWave Foods once again expanded its Silk brand portfolio with a coconut milk offering. “Coconut milk is on the rise, benefiting from greater consumer awareness of coconut water as a beneficial sports drink substitute,” Euromonitor’s Lee says. Silk Pure Coconut does not contain dairy, lactose or cholesterol and is a good source of vitamins D and B12, the company says. The product is available in Original and Vanilla flavors with 80 and 90 calories in each serving, respectively. “Consumers continue to seek plant-based beverages,” said Craig Shiesley, vice president of Silk, in a statement. “At the same time, they are becoming more interested in coconut-based products, so we brought those two trends together. Silk Pure Coconut gives consumers another plantbased option for milk that offers great taste combined with the calcium they’re looking for.” In September, the brand increased the calcium level in its natural refrigerated soymilk products to 50 percent more than typical dairy milk, which is consistent with its Pure Almond and Pure Coconut products, the company says. The company also is intent upon growing its non-dairy lineup. “In January 2012, Silk will introduce an entirely new product that will continue the trend of providing plantbased, nutrient-rich non-dairy beverage options,” says Sara

By Stephanie Hildebrandt

KEEPING UP WITH KEFIR While soymilk and almond milk are the top dairy alternative contenders, Lifeway Foods’ Lifeway Kefir brand landed the No. 6 spot on SymphonyIRI’s list of top refrigerated kefir/milk substitutes/soymilk brands in U.S. supermarkets, drug stores, gas and convenience stores and mass merchandise outlets, excluding Walmart, for the 52 weeks ending Sept. 4. In the second quarter of 2011, Lifeway Foods’ gross sales increased 28 percent to $19.9 million compared to $15.5 million for the second quarter of 2010, the company says. It attributes its growth to an increase in consumer awareness of the benefits of kefir; increased sales of its Kefir and ProBugs Organic Kefir for kids brands; and the successful introduction of new product lines such as Bio Kefir. Similarly, the popularity of its beverages has led to expanded distribution. In the third quarter of 2010, the company added Costco, BJ’s Wholesale Club and Big Y Foods chain stores to its distribution channel. “Our increased distribution is a direct result of the growing popularity of kefir and the many health benefits of its probiotics,” said Julie Smolyansky, chief executive officer of Lifeway Foods, in a statement. This year, the company celebrated its 25th anniversary with the launch of Lifeway Kefir Birthday Cake-flavored smoothie. The low-fat beverage features probiotics and is packaged in special 25th anniversary packaging. The company also released Green Kefir with Phytoboost, which is a fruit-flavored cultured milk smoothie. Green Kefir with Phytoboost combines the probiotics of kefir with 80 mg. of plant-based polyphenols, the oxygen radical absorbance capacity (ORAC) equivalent of a full serving of vegetables in each bottle, to neutralize free radicals and support the immune system, Lifeway Foods says. It also provides 100 percent of the U.S. Department of Agriculture (USDA) recommended daily value (RDV) of vitamin C, 20 percent of the USDA RDV of vitamin A and 30 percent of the USDA RDV of vitamin E. The beverage is available in Kiwi Passion Fruit and Pomegranate Acai Blueberry flavors. >>

Blue Diamond Growers launched Blue Diamond Breeze Almondmilk Coconutmilk Blend in September.

INNOVATIVE SOURCES While soymilk, almond milk, coconut milk and kefir continue to be in demand, other dairy alternatives are cropping up. Hope, Minn.-based Sunrich Naturals, which offers a line of soymilk, recently launched a new dairy alternative line called SĿL. Made from sunflower kernels, SĿL contains antioxidants, vitamins and minerals to promote heart and brain health, strengthen bones and teeth, and promote younger-looking skin, the company says. It also includes folic acid, which is beneficial for prenatal health. Each 8-ounce serving provides 50 percent of the recommended daily allowance for vitamin E, 60 percent for phosphorus, 30 percent for calcium, 25 percent for vitamin D and 20 percent for folic acid. The beverage is available in Unsweetened, Original and Vanilla flavors and comes in shelf-stable aseptic 32-ounce Tetra Pak containers. According to Packaged Facts’ 2010 Culinary Trend Mapping Report, hemp milk has been on the market for a few years, but it’s just now Made from sunflower kernels, SoL contains antioxidants, vitamins and getting into the mainstream market. minerals and promotes heart and brain health, strengthens bones and >>

Loveday, spokesperson for WhiteWave Foods. Sacramento, Calif.-based Blue Diamond Growers offers a flagship line of Almond Breeze almond milks, which ranked No. 2 on SymphonyIRI’s list of top refrigerated kefir/milk substitutes/soymilk brands in U.S. supermarkets, drug stores, gas and convenience stores and mass merchandise outlets, excluding Walmart, for the 52 weeks ending Sept. 4. This September, the company expanded its portfolio with the launch of a new line of dairy alternative blends. Blue Diamond Breeze Almondmilk Coconutmilk Blend is available in Almond Coconut Original, Almond Coconut Original Unsweetened, Almond Coconut Vanilla and Almond Coconut Vanilla Unsweetened varieties.

continued on page 20

teeth, and promotes younger-looking skin, the company says.

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bevindustry.com | NOVEMBER 2011 | Beverage Industry |

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Manitoba Harvest, based in Canada, has fueled the growth of hemp milk beverages, the report states. It introduced Hemp Bliss in April 2007, and within the last five years,

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its sales have grown more than 500 percent, it adds. Recently, Pacific Natural Foods, Tualatin, Ore., launched three new varieties of hemp milk: Unsweetened

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

Original, Unsweetened Vanilla and Chocolate. Each features a natural source of omega-3s and 6s, calcium, protein, vitamins and amino acids, the company says.

HEALTH HALO According to the Innovation Center for U.S. Dairy, consumers are increasingly seeking betterfor-you dairy drinks, which is beneficial for the dairy beverage segment because it carries a health halo. But consumers aren’t that easy to please, it notes. They want it all: low calories and good taste, the Innovation Center for U.S. Dairy says. And when you bring kids into the equation, nutrition carries even more meaning. This year, Dean Foods launched TruMoo, a better-for-you chocolate milk made without high fructose corn syrup. The brand contains 15 to 20 percent less sugar than typical flavored milks and just 40 more calories than unflavored white milk in each serving, the company says. TruMoo is sold as 1 percent low-fat milk in retail stores, and fat-free in schools. Depending on regional and retailer variations, the beverage also can be available in Strawberry, Vanilla and Coffee flavors in gallons, half gallons, quarts and single-serve bottles. In schools and foodservice settings, it’s available in half-pint containers. Fat-free TruMoo milk contains 130 calories a serving with 10 grams of added sugar, compared to previous chocolate milks made with as many as 180 calories and 16 grams of added sugar, the company says. After launching successfully in select retail and school locations in the Northeast and Pacific Coast regions, almost all of the flavored milk across Dean Foods’ family of regional brands is converting to TruMoo, making it one of the largest milk brands in the country by sales and volume, the company says. Although consumers might be used to seeing dairy drinks and dairy alternatives packaged in glass jugs, plastic bottles and paper cartons, aluminum bottles might be a new sight for them. Earlier this year, Buffalo, N.Y.-based Upstate Niagara Cooperative launched Crave chocolate milk in aluminum bottles nationwide. In addition to keeping the product cold, the bottles feature a twist-off cap that allows consumers to take the beverage on-the-go. The aluminum packaging also offers a sustainable attribute

>>

Crave chocolate milk comes packaged in aluminum containers for recyclability and to retain cold temperatures.

because aluminum is 100 percent recyclable. In addition, Crave’s pasteurization process allows it to be shelf stable, the company says. Also capitalizing on consumers’ interest in on-the-go beverages is Denver-based Atkins Nutritionals Inc. Containing 10 grams of protein, 3 grams of net carbs or less and zero grams of sugar, Atkins Day Break Shakes feature resealable twist-off caps for consumers on-the-go. Atkins Nutritionals research showed that 60 percent of consumers drink breakfast shakes on-the-go, which led the company to institute the resealable closures to its bottles, it says. The shakes are available in Wild Berry, Creamy Chocolate and Strawberry Banana flavors and contain on average 20 grams less net carbs and 2 grams more fiber than its competitors, the company says. Odwalla, a subsidiary of The Coca-Cola Co., offers a line of protein-fortified beverages in multiple varieties. Its Odwalla Protein Monster brand landed the No. 9 spot on SymphonyIRI’s list of top refrigerated kefir/milk substitutes/soymilk brands in U.S. supermarkets, drug stores, gas and convenience stores and mass merchandise outlets, excluding Walmart, for the 52 weeks ending Sept. 4. Its Odwalla

Super Protein brand ranked No. 15 on the list. This year, the company introduced Odwalla Super Protein Mango smoothie to the line. Each 12-ounce bottle contains 20 grams of soy protein and provides 50 percent of the RDV of calcium and 150 percent of the RDV of vitamins B12 and B6. (individual brands) “Mango-flavored beverages are becoming increasingly % CHANGE VS. MARKET SHARE % CHANGE VS. DOLLAR popular, yet we PRIOR YEAR PRIOR YEAR SALES noticed a gap in the Rice Dream $15,131,290 -2.8 31.7 2.4 non-dairy protein Hershey's Milk Shake $10,463,220 151.4 21.9 14.1 category,” said Kerns Aguas Frescas $3,881,765 3.2 8.1 1.1 Irma Shrivastava, vice president of Chug $3,865,088 -10.2 8.1 0.0 marketing at Odwalla, Yoo Hoo $3,372,292 -9.2 7.1 0.1 in a statement. “By Private Label $2,831,665 -33.3 5.9 -2.1 providing 20 grams Deans Choco Riffic $1,559,551 -1.0 3.3 0.3 of soy protein and a creamy swirl of mango Don Jose $1,371,378 5.2 2.9 0.4 flavor in every bottle, Lala Lalacult $740,598 27.0 1.6 0.5 Super Protein Mango Borden $706,268 1.2 1.5 0.2 is a fresh on-the-go Category Total* $47,715,620 -10.2 100.0 — beverage for health*Includes brands not listed. conscious consumers Source: SymphonyIRI Group, Chicago. U.S. supermarkets, drug stores, gas and convenience stores and mass who don’t want to merchandise outlets, excluding Walmart, for the 52 weeks ending Sept. 4, 2011. compromise taste.” BI

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Special Report

Finding ways to fulfill all needs Contract manufacturers cater to customers

OPERATING IN A BUSINESS MODEL WHERE CUSTOMER SERVICE IS KEY, contract manufacturers have adapted their business models to best serve their customers. For some, that means helping customers deliver their products; for others it means helping beverage-makers refine their formulations. But for all contract manufacturers one value is paramount: to provide their clients with bestin-class service.

>>

Castle Co-Packers, New Kensington, Pa., has taken a proactive approach to its business. “Because the economy is still not where it should be, we took a step back and said, ‘OK, what can we do to improve and do more for existing customers since there’s less people getting into the industry because there’s less access to capital?’” says company President Brian Dworkin. “What we’ve done is we’ve started a distribution company over the past year, so besides bottling for brands, we’re now distributing for brands in the Pittsburgh area.” Castle Co-Packer’s afÀliated business Full Circle Distributing now operates with three side-loading trucks and one van. As the name suggests, Full Circle has helped complete Castle Co-Packer’s service offerings as well as introduce new clients to the contract manufacturing business, Dworkin says. “Either we’ve had brands that we were already bottling that jumped on board with Full Circle and dropped other distributors, or in the instance of one company, Full Circle was distributing for them Àrst and they moved their production to us because they were so happy with the distribution,” he says. Last year, Castle Co-Packers added a carbonated line, which now runs at full capacity producing beverages for customers, such as Hi-Ball Energy, Boylan Bottling, Pennsylvania Dutch Birch Beer and Hint Inc. The company also is adding two more lines to make for a total of seven at the facility, Dworkin says. The additions will include a can line and a new cold-Àll shot line, which he says complements its existing hot-Àll shot line. Castle Co-Packers also has the capability to brew coffee and tea, Dworkin says. He adds that it’s important that the company continues to invest in order to attract new customers, “I’m a Àrm believer that you have to have the infrastructure to get the business.” On the packaging side, each of Installed last year, Castle Co-Packers’ carbonated filling line is Castle Co-Packer’s Àve existing running at capacity for clients such as Boylan Bottling Co.

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

lines has an average of three to Àve labelers, he says. The company is able to run products with a variety of labels, including cut-and-stack and cold glue. The company also offers a range of capping abilities and is adding roll-on pilfer-proof (ROPP) closures to the mix, Dworkin says. To better serve its customers, Brooklyn Bottling offers storage and delivery, explains Eric Miller, president of the Milton, N.Y.-based company. The company purchased a 140,000-square-foot facility to provide added storage for clients and doubled its delivery tractor-trailer Áeet to 10 trucks. In the last year, which Miller says has been its biggest ever, the organic and kosher manufacturer also added a reverse osmosis Àltration system, ozonators, and stateof-the-art sand and charcoal Àlters. In the beginning of 2012, Brooklyn Bottling will add a 90-valve Àller for non-carbonated cold-Àll products, such as water, tea, lemonade and orangeade, he says. Brooklyn Bottling also upgraded the case packer on its can line to increase capability from 60 cases a minute to 85 cases a minute, Miller says. “We are working diligently to increase our speeds and efÀciencies to handle growth of our existing customers and new customers,” he says. “It seems to be very nice that we are getting more business from existing customers and we’re not losing, we’re gaining customers. I think service with a smile, can-do attitude, caring for people’s products like they’re our own and partnering with people seems to be working.”

GETTING OFF THE GROUND Start-up companies make up the majority of the clients at Kiko Foods, explains Max Burnell, president and chief executive ofÀcer of the Kenner, La.-based company. The company offers research and development services and can create a product from scratch or turn a recipe into a commercialized product, Burnell says. The company is a high-acid packer that manufactures a variety of products, such as meal replacement beverages, juice drinks, 100 percent juices, energy drinks and medically oriented beverages, he says. Kiko Foods operates three lines. One is dedicated to either hot- or cold-Àll products in 750-ml. glass bottles on a line that runs at speeds up to 95 bottles a minute. Another is able to run PET or glass bottles as large as a

>>

By Jennifer Zegler

NVE Pharmaceuticals has a 40,000-square-foot facility dedicated to production of carbonated products packaged in 8.4-ounce cans.

half-gallon in size. Kiko Foods’ third line produces 250-ml. aseptic cartons at a rate of 100 units a minute, Burnell says. In the last year, Miami-based AlRite has seen growth from existing customers as well as new ones, says Alfredo Faubel, director of sales and marketing. Al-Rite works with many start-up customers across industries. “We’ve been doing so many different things from energy drinks to healthrelated drinks to beauty, but we don’t come up with the ideas, we come up with a pathway for those ideas to become actual products,” he says. Faubel says sugar-free products are its specialty, and the company has developed a number of sugar-free cocktails for customers as well as its own brand. Regardless of beverage category, the company begins consultations by determining whether the client is committed to its idea. If so, Al-Rite can help develop prototypes, labels and packaging, Faubel explains. It also recommends that new clients start with a test market to validate whether the product is something the consumer wants, Faubel says. “By running small runs, you always have the option to go back and reÀne the concept, change the formula, the labeling, the packaging, whatever. You’re not invested in a humongous amount of inventory,” he says. To keep up with a recent surge in demand, Al-Rite is installing a third line. The new line will allow the company to dedicate one of its lines to one size of product, which will help with productivity, Faubel says. “In a way, it’s changing the way we do things here because it forces us to improve everything else; once you

increase the scale and complexity of your operation there’s a halo effect — everything else has to be upgraded as well,” he says. “It’s forcing us to get more space and to manage larger amounts of raw material, inventory, packaging and shipping. So it’s just like stepping up in the business and a lot of it has allowed us the possibility to provide more employment as well.”

OFFERING EXPERTISE With 30 years experience in the diet and energy supplement manufacturing industry, NVE Pharmaceuticals works with global customers as well as produces its own Stacker2 product line, explains Walter Orcutt, executive vice president of the Andover, N.J.-based company. “We [make] private label for companies all over the country that are owned by celebrities, athletes, large entertainment entities as well as companies looking for a liquid line extension, start-up companies and retailer chains looking for a private label product,” he says. “Our international business has grown by leaps and bounds. Currently, as far as I know, today we are manufacturing [functional] shots in Àve languages and have customers from 17 countries.” He describes NVE as a one-stop shop with departments that can help customers from inception to completion. The company is able to manufacture products using a customer’s proprietary blend, an in-house blend or blend developed in its laboratory, Orcutt says. The company has a 40,000-squarefoot facility dedicated to production of carbonated products packaged in 8.4-ounce cans. The facility is able continued on page 24

Special Report continued from page 23

produce 30 million functional shots a month, he says. The facility also has six PET blow molding machines to blow custom bottles in a variety of shapes and sizes.

Kansas City, Mo.-based Dairy Farmers of America Inc.’s point of differentiation comes through in its 60-plus years of experience, says Ed Tilley, senior vice president of >>

to run 800 cans a minute, Orcutt says. NVE also owns and operates a 200,000-square-foot production facility with four high-speed liquid shot Àlling lines that are able to

Century Foods is able to produce a variety of protein-enhanced products including ready-to-drink beverages.

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

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operations and business development for the company. “We provide companies with what I would characterize as new thinking,” Tilley says. “We focus on leading innovation in the area of beverages that are beyond either carbonated soft drinks or water. So [customers] are looking to Dairy Farmers of America from the standpoint of providing a product that has an added beneÀt, whether it’s proteins or a nutritional platform or something that can either create a new market or capitalize on a trend.” The company has Àve manufacturing sites to provide coast-to-coast and border-to-border production capabilities, he says. Dairy Farmers of America specializes in low-acid products, such as recovery drinks, adult nutritional products and weight loss products packaged in steel, aluminum or glass containers, Tilley says. He characterizes Dairy Farmers of America as a responsive organization that has commercialized products in as little time as 60 days, he says. It has a research and development facility in SpringÀeld, Mo., with a staff of scientists and chemical engineers. In addition, Dairy Farmers of America also has a packaging group to help customers innovate and keep up with the market, Tilley says. Century Foods, Sparta, Wis., also maintains a full research and development team to help its customers formulate or adjust recipes as needed. The company considers itself to be protein specialists and is able to produce a variety of protein-enhanced products from dry powders to ready-to-drink beverages, says Pete Hahn, business development manager for the company. In addition, the company also can manufacture a range of beverages, such as sports drinks, energy drinks, juices, functional waters, smoothies and yogurt drinks, Hahn explains. The company’s plant operates a high-acid hot-Àll line. For packaging, the company can run full and partial shrink sleeve and wrap-around glue labeling. To fulÀll customers’ security needs, the company has the capability to provide induction seals and neckbands. It also has the ability to create registered or unregistered multipacks, Hahn says. BI

For more info contact Leslie Peoples at [email protected]

JOHNNIE WALKER DOUBLE BLACK Diageo plc, Norwalk, Conn. Telephone: 203/229-2100 Internet: johnniewalker.com Distribution: National

NAKED JAY BIG DILL PICKLE FLAVORED VODKA Sazerac Co., New Orleans Telephone: 866/729-3722 Internet: nakedjay.com Distribution: Select markets

ULTRA PREMIUM WHISKY

UNIQUE FLAVORS

Diageo plc is expanding its Johnnie Walker brand with the introduction of Johnnie Walker Double Black. Based on Johnnie Walker Black Label, this whisky features the same smoky characteristic, but is amplified with more flavor, the company says. Its flavor profile was achieved by blending select single malts from Johnnie Walker’s reserves including both naturally smoky aged whiskies and whiskies matured in deep charred oak barrels. In addition to the smoky flavor, Double Black features notes of dried fruit, vanilla and spice, the company says. The limitededition offering is available through the end of the year and retails for about $40 for a 750-ml. bottle.

Sazerac Co. introduced a new line of Naked Jay vodkas. The three varieties — Vodka, Big Dill pickle flavored vodka and Whip Cream flavored vodka — are distilled four times. Naked Jay Big Dill pickle flavored vodka was created after Virginia native Jason Zimecki ran out of mixers at a football game and decided to mix vodka with pickle juice. Zimecki suggests using the pickle-flavored vodka in a Bloody Mary or specialty shot. Naked Jay vodkas are available in the state of Virginia in 50-ml., 750-ml. and 1-liter bottles. The flavored vodkas are 60 proof and the original vodka is 80 proof. A 750-ml. bottle has a suggested retail price of $14.99.

FRESH 4 FLAVORED WATER Fresh Corp., Yardley, Pa. Telephone: 877/405-1776 Internet: fresh4.com Distribution: National Ingredients: Spearmint: Water, natural flavor, citric acid, maltodextrin, sucralose and acesulfame potassium.

ACAI ROOTS ACAI JUICE + COCONUT WATER Acai Roots, San Diego Telephone: 866/401-2224 Internet: acairoots.com Distribution: National Ingredients: Organic acai juice (water, organic acai puree), organic coconut water, organic evaporated cane juice, citric acid and xanthan gum.

BREATH-FRESHENING Fresh Corp. launched Fresh 4 flavored waters, which contain mint and menthol natural flavors to help freshen breath with a cool and tingling sensation, the company says. The beverage is available in four flavors: Tropical Citrus, Strawberry Chocolate, Acai Pomegranate and Spearmint. Each 20-ounce PET bottle has a suggested retail price of $1.99.

SIPP MOJO BERRY AND HONEY PEAR Sipp Eco Beverage Co., Uwchland, Pa. Telephone: 866/222-4735 Internet: haveasipp.com Distribution: Select markets Ingredients: Mojo Berry: Carbonated water, organic agave syrup, organic natural blackberry, organic natural color, organic natural lime, citric acid and organic natural spearmint.

NATURAL COMBINATION Acai Roots added Acai Juice + Coconut Water to its juice portfolio. The U.S. Department of Agriculture certified organic beverage includes antioxidants, omega fatty acids, vitamins and minerals to deliver functionality and hydration for consumers. It is available in 10- and 32-ounce bottles with a suggested retail price of $2.99 and $7.99, respectively.

FOR MORE INFORMATION ON NEW BEVERAGE PRODUCTS, VISIT BEVINDUSTRY.COM. 26

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

GOURMET FLAVORS Sipp Eco Beverage Co. added two new flavors to its line of organic sparkling beverages: Mojo Berry and Honey Pear. Mojo Berry combines blackberry, mint and lime flavors, while Honey Pear includes pear and green tea flavors. Sipp beverages launched last year and feature gourmet, organic ingredients and agave nectar. A 12-ounce bottle retails for $2.25 to $4.50.

SPONSORED BY:

BRINGING NATURAL FLAVORS INTO FOCUS [email protected]

TROPICAL BREEZE SUN TEA Tropical Breeze Beverages LLC, Inwood, W.V. Telephone: 304/283-2257 Internet: tbsuntea.com Distribution: Select markets Ingredients: Coconut: Treated and filtered water originating from local springs, natural flavors, xylitol, caffeine-free rooibos tea and malic acid.

DENTIST APPROVED Tropical Breeze Beverages LLC launched an all-natural, caffeinefree rooibos tea called Tropical Breeze Sun Tea. The beverage is sweetened with xylitol because of its tooth-friendly characteristics. Xylitol is the only sweetener approved by the U.S. Food and Drug Administration and the American Dental Association to reduce or eliminate dental decay, the company says. Tropical Breeze Sun Tea is available in Apple Spice, Banana, Coconut and Pomegranate flavors. Each 16-ounce bottle contains 20 calories and retails for $1.69 to $1.99.

MALIBU LIMITED WINTER EDITION Pernod Ricard USA, Purchase, N.Y. Telephone: 914/848-4041 Internet: malibu-rum.com Distribution: National

LET IT SNOW Capitalizing on the “season of giving,” Pernod Ricard USA released Malibu Limited Winter Edition, which is available through December. The rum features the same Malibu formula, but contains floating coconut flakes. Consumers can see the flakes through a window on the bottle’s packaging. The inside of the bottle is painted blue to enhace the winter wonderland theme. A 750-ml. bottle of Malibu Limited Winter Edition has a suggested retail price of $13.99.

VITAMINS AND WATER KARMA WELLNESS WATER Karma Culture LLC, Pittsford, N.Y. Telephone: 585/218-0022 Internet: drinkkarma.com Distribution: National Ingredients: Balance: Spring water, sugar, natural flavor, ascorbic acid, citric acid, fruit juice, stevia rebaudiana leaf extract, grape seed extract, DL-alpha-tocopheryl acetate, white tea extract, green tea extract, D-calcium panthothenate, niacinamide, zinc picolinate, retinol palmitate, pyridoxine hydrochloride, cholecalciferol cyanocobalamin, acai fruit extract, tea polyphenols, cranberry extract, pomegranate fruit extract and vitamins A, C, D, E, B6 and B12.

KONARED COCONUT WATER KonaRed, Kona, Hawaii Telephone: 808/212-1553 Internet: konared.com Distribution: Select markets Ingredients: KonaRed coffee fruit extract, coconut water from concentrate, apple juice from concentrate, pineapple juice from concentrate, natural fruit and vegetable color, malic acid, ascorbic acid and stevia.

SUPERFRUIT AND COCONUT KonaRed added Coconut Water to its line of functional superfruit beverages in response to consumer demand for healthier beverages, the company says. KonaRed Coconut Water is made from the fruit of the coffee plant and water from young coconuts. The coffee fruit found in KonaRed Coconut Water contains antioxidants that are absorbed directly at the cellular level, helping to fight inflammation, prevent sickness and provide a long-lasting mood boost, the company says. By picking coconuts at the earliest stage of maturity, the beverage ensures the maximum amount of electrolytes, it adds. The beverage currently is available at select grocery and convenience stores and will expand to additional markets in the coming months, the company says. A 16-ounce bottle of KonaRed Coconut Water has a suggested retail price of $2.99 to $3.49.

According to Karma Culture LLC, vitamins deteriorate in water, causing premixed vitamin-fortified beverages to lose their potency over time. As a result, the company created Karma Wellness Water, which keeps the vitamins separate from the water in a custom cap until consumption. The beverage comes in five varieties, each of which offers a function. Mind, an Orange Mango variety, is formulated for sharper thinking; Body, a Raspberry Guava Jackfruit flavor, is formulated for fitness acceleration; Spirit, available in a Passionfruit Green Tea option, is formulated for mood elevation; Balance, an Acai Pomberry flavor, is formulated for an immunity boost; and Vitality, a Pineapple Coconut offering, is formulated for healthy hydration. Each variety contains seven essential vitamins, superfruits, antioxidants, herbal extracts, amino acids, minerals and electrolytes. An 18-ounce bottle has 20 calories and retails for about $2.39 to $2.89.

NEW AMSTERDAM VODKA New Amsterdam Spirits Co., Modesto, Calif. Telephone: 877/879-2446 Internet: newamsterdamspirits.com Distribution: National

NEW YORK ESSENCE Joining New Amsterdam Gin, from New Amsterdam Spirits Co., is New Amsterdam Vodka. The brand’s bottle and label were inspired by the architecture of New York City, which was originally named New Amsterdam, the company says. The 80-proof vodka is five times distilled and filtered three times for smoothness, it adds. It is available in 50-ml., 100-ml., 200-ml., 375-ml., 750-ml., 1-liter and 1.75-liter bottles. A 750-ml. bottle has a suggested retail price of $14.99.

bevindustry.com | NOVEMBER 2011 | Beverage Industry |

27

SPONSORED BY:

BRINGING NATURAL FLAVORS INTO FOCUS

KUPFERBERG GOLD RED SPARKLING WINE Niche Import Co., Cedar Knolls, N.J. Telephone: 973/993-8450 Internet: ourniche.com Distribution: National

SEEING RED Niche Import Co. added a new sparkling wine to its portfolio. Kupferberg Gold red sparkling wine is made from a blend of red grapes from Germany. According to the company, it carries an aroma of wild red berries and has a rich, full-bodied taste. Each bottle has a suggested retail price of $9.99.

[email protected]

LACROIX SPARKLING WATER COCONUT Sundance Beverage Co., Warren, Mich. Telephone: 877/622-3499 Internet: lacroixwater.com Distribution: National Ingredients: Carbonated water and natural coconut flavor.

FLAVORED AND CARBONATED Sundance Beverage Co., a subsidiary of National Beverage Corp., launched its eighth LaCroix Sparkling Water flavor: Coconut. The beverage is all-natural, caffeine-free, caloriefree and sugar-free. LaCroix Sparkling Water is triplepurified and sourced from a dozen regions in the United States, the company says. A 12-pack of aluminum cans has a suggested retail price of $4.79 to $5.29.

MADRINA’S CAFÉ CON LECHE AND MANGO Madrina’s Multicultural Brands, St. Louis Telephone: 800/779-7980 Internet: madrinashorchata.com Distribution: Select markets Ingredients: Café con Leche: Water, sucrose, non-fat dry milk, non-dairy creamer (refined coconut oil, corn syrup solids, potassium caseinate, sucrose, dipotassium phosphate, mono- and diglycerides, salt, sodium stearoyl lactylate, carrageenan, artificial flavor, annatto extracts and turmeric extracts), coffee extract, maltodextrin, coffee, dipotassium phosphate, natural flavors, sodium bicarbonate and carrageenan.

TRES AGAVES MARGARITA MIX Tres Agaves Products Inc., Oakland, Calif. Telephone: 510/444-3338 Internet: tresagaves.com Distribution: National Ingredients: Filtered water, organic agave nectar, organic lime concentrate and ascorbic acid.

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MULTICULTURAL FLAVORS Madrina’s Multicultural Brands introduced two new flavors: Café con Leche and Mango. Café con Leche blends coffee and milk, producing a beverage with a light, smooth finish, the company says. Its Mango variety features the same characteristics as a handpicked mango, it adds. Madrina’s branded products are targeted toward 18- to 34-year-old Hispanic Americans and consumers interested in multicultural products. Café con Leche and Mango flavors come in shelfstable 15-ounce cans for a suggested retail price of $1.49 to $1.79 each.

ALO ESCAPE SPI West Port Inc., South San Francisco Telephone: 800/223-4438 Internet: alodrink.com Distribution: National Ingredients: Water, aloe vera juice, aloe vera pulp, cane sugar, seabuckthorn juice from concentrate, pineapple juice, guava juice, citric acid, vitamin C and beta-carotene.

CERTIFIED ORGANIC

ALOE AND FRUIT

Tres Agaves Products Inc. launched the first shelf-stable U.S. Department of Agriculture certified organic Margarita Mix, it says. The beverage contains organic lime juice, organic agave nectar and filtered water. Containing just 68 calories a serving, Tres Agaves Margarita Mix has a suggested retail price of $7.99 for a 1-liter bottle.

SPI West Port Inc. launched the eighth flavor in its AlĿ Drink line. In addition to aloe vera juice, AlĿ Escape includes pineapple, guava and seabuckthorn berry flavors. The all-natural beverage is sweetened with cane sugar and honey. Like the rest of the line, the beverage also has a textural element from the aloe vera pulp. A 16.9-ounce bottle contains 70 calories and has a suggested retail price of $1.99.

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

Cover Story

Quest for the

Crown Beer importer’s growth vision leverages individual brand strengths

CROWN IMPORTS’ PORTFOLIO OF EIGHT BRANDS CAPTURES APPROXIMATELY 42 percent of the volume of the import beer market in the United States, a figure that the Chicago-based company is intent on increasing. In fact, the joint venture between Mexico’s Grupo Modelo, S.A. de C.V. and Constellation Brands Inc., Victor, N.Y., has a goal of becoming the third major U.S. beer company occupying 20 percent per dollar market share. In order to achieve its vision, the company has redesigned its marketing and sales strategies to play to the strengths of each of its brands, including Corona Extra, Corona Light, Modelo Especial, Negra Modelo, Victoria and PaciÀco, across national channels and demographics. Effective January 2007, Crown Imports became responsible for the Grupo Modelo portfolio as well as the St. Pauli Girl and Tsingtao lineups on a national basis. Prior to that period, Grupo Modelo’s representation in the U.S. market was split between western and eastern territories. Crown Imports Chief Executive OfÀcer Bill Hackett was previously president of Constellation’s Barton Beers division that was responsible for the portfolio in the western half of the United States. At the time, Barton Beers’ territory consisted of more developed markets, which required a different strategy than the eastern half of the country’s new and expanded markets, Hackett explains. The variation in markets provided initial beneÀts, but as awareness of the

30

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

brands increased in the United States, the division complicated relationships, he says. “As time progressed and the business developed and grew, it really became painful having two suppliers,” he says. “It’s not only just the selling effort across accounts that overlap both territories, but everything from the programming — the programming for Cinco de Mayo in one territory was different than the other and that would drive retailers nuts. Our marketing messages were completely different. The approach to market was completely different. Our messaging and our alignment with wholesalers were different. As the business grew it just became more and more challenging.” UniÀcation as Crown Imports has been able to Àx those issues and address the national market and opportunities for each of its brands, Hackett says. “If the business ever expected to grow and realize the vision that we’ve deÀned, it absolutely had to be under one roof,” he says. Bruce Jacobson, executive vice president of national sales, says the consolidation was advantageous for the sales organization.

By Jennifer Zegler

“In the past it would have been a different program, different timing, and a different sales rep,” Jacobson says. “It’s all coordinated at this point in time, and it’s really turned into creating more feature opportunities for us, both on- and off-premise, with the key customers. We are much more in tune to their business across the country.” To complicate matters, the beginning of the economic downturn coincided with the start of the joint venture. Crown Imports employed the mantra that if we’re going to go through these difÀcult times, we better learn something from them, Jacobson says. The company realigned its sales team’s approach to market and when Chief Marketing OfÀcer Jim Sabia joined the company two and a half years ago, he revamped the framework and structure of the company’s marketing strategy, Hackett explains.

INSIGHT DRIVEN After realizing the synergies of one national organization and posting positive sales Àgures in a challenging beer market, Crown Imports has taken a proactive step to better leverage its portfolio of brands across the country. The company evolved its marketing strategy from a regional to a national approach, which was a choice based on consumer insights, it says. Better understanding the beer consumer also has become an integral part of its marketing strategy. The company’s brands often attract both Hispanic and general market consumers, Sabia says, but the ratio depends on the brand. With Corona, Hispanics make up about 35 percent of sales, but with Modelo Especial the demographic occupies 80 percent of sales. Crown Imports’ consumer research divided its consumers between general market and Hispanic demographics. General market and Hispanic consumers are then each sub-divided into Àve segments based on attitudinal insights as well as consumer needs and occasions, Sabia explains. Based on those insights, Crown Imports redeÀned its messaging, mediums and sponsorships to better position the individual brands for the desired demographics. In addition to better targeting consumers, Crown Imports has paid special attention to making the right packages available in the right channels, which represents a change in strategy, Jacobson says. Two years ago, the company was focused on what Jacobson describes as a Áurry of new packages, but now it has switched to design sales and promotions around available packages and leveraging those in the marketplace. Also integral in this approach is proper package placement, he says. “It doesn’t do us or the distributor network any good to put brands and packages in places where the consumer is not looking for them or not going to Ànd them,” Jacobson says. “So we’ve taken this very targeted approach to the market and we’re working with them speciÀcally by package to say, ‘Where is the most success going to happen? Where’s the best return on their efforts of their organization to drive success over the course of time?’ Then let’s work on getting the right packages and the right brands

into the right accounts, and that right account is determined by the consumer.” Hackett agrees, “We’ve been far more aware and responsive to opportunities across channels, whether it’s convenience stores, club stores or independents. All these different channels are used by consumers differently and they have packages of reference that work better than others.” One example of this is the rollout of Corona Familiar, a 32-ounce bottle of Corona Extra that is the top-selling SKU in Mexico. Corona Familiar debuted in the U.S. market 14 months ago and the company will expand the family-size package nationally in 2012. The target consumers are Hispanics of Mexican descent who recognize the package from their home market, Sabia says. Aligning with its overall strategy, placement remains a key concern for Corona Familiar. “We’re being cautious with it,” Jacobson says. “You’re not going to Ànd it in every single 7-Eleven across the country and you’re not going to see it in every on-premise location, but you will Ànd it in the places that it needs to be because of the consumer base. Then you’ll start to see it sprinkle in other places.”

GETTING OFF THE BEACH To grow Corona Extra, which is the No. 1-selling import beer in the United States, and No. 1 light import brand Corona Light, the company wants to increase the occasions when consumers choose the brands. “We realized that [Corona] lovers would drink us everywhere, but the occasional drinkers would say to us, ‘I love it in the summertime on the beach,’” Sabia explains. “We knew that we had to get those occasional drinkers to drink us in more occasions. This whole brand is about this beach state of mind and we needed to communicate to consumers that ‘Look, it is great in the summertime. It is great on the beach. However, here are all these other occasions that are perfect for a Corona.’” The evolution began with the 2010 TV commercial titled “Moments.” The ad showed people consuming Corona in different occasions off the beach and ended with the tagline “Find your beach.” “‘Find your beach’ is a call to action for consumers,” Sabia says. “It says to consumers, ‘Your beach is different than my beach, however, Corona is the brand that can get you to your place. Whether it’s literal or a state-of-mind, Corona’s the brand to help you Ànd your beach.’” Crown Imports continued this theme with its “Commuters” advertisement that featured an urban rushhour setting transitioning onto the beach through an after-work gathering of friends around Corona. In October, the company debuted the “Snow Sand” advertisement that blurs the lines between beach and snowy mountainside. Corona’s “Find your beach” campaign, which also includes a Facebook page and mobile In January, Corona Extra and Corona Light will rollout new secondary packaging elements, has been successful featuring evolutionary changes to the design, explains Jim Sabia, chief marketing in driving new consumer officer of Crown Imports. >>

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From left to right: Crown Imports’ Bruce Jacobson, executive vice president of national sales, Bill Hackett, chief executive officer, and Jim Sabia, chief marketing officer.

continued on page 32 bevindustry.com | NOVEMBER 2011 | Beverage Industry |

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Cover Story

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continued from page 31

Modelo Especial is the fastest-growing brand in Crown Imports’ portfolio. The brand is on track to sell 34 million cases ranking as the No. 3 import brand this year.

purchase occasions, Sabia says. The company has aligned its sales and marketing strategies to better leverage the brand at retail. Marketing also collaborated with sales to solve a particular seasonal issue. “We do a great job [with] Cinco de Mayo,” Jacobson says. “The wholesalers and distributors are on top of what’s going on and they get activity out there. A combination of our chain team and the distributors’ chain teams get activity in key retailers and we do a great job. Then when Cinco de Mayo’s over, it became someone else’s summer.” To ensure Corona continued to sell between Memorial Day and July Fourth, the teams created the “Win the Beach” campaign. Part of the success of the program, which is in its second year, was that the TV promotions for the contest gave consumers the cue to look for a particular display at retail. “The feedback from retailers was outstanding, ‘Wow, you guys get it. You guys understand what I’m looking to get done,’” Jacobson says. “Now all of a sudden, we’re not only coordinated between sales and marketing, but we’re coordinated between Crown Imports and the retailers, and that was the objective.” In January, Corona’s evolution will continue with the introduction of new secondary packaging designs for Corona Extra and Corona Light. Described as an “evolutionary change” by the executives, the main logo and graphics remain the same on the new packages that

now feature callouts of the primary packaging — either glass bottles or cans — contained within the package. The packages also more strongly identify the Corona brands through color. Corona Extra features blue coloring and Corona Light has yellow highlights.

PORTFOLIO OF OPPORTUNITY The company also has aligned to promote its portfolio beyond the Corona brands, which together make up three-quarters of Crown Imports’ volume. “When I talk to any new hire group, I say that I would believe that Corona is the brand that brought you here,” Jacobson says. “Then after you spent some time here, you realize the strength of this portfolio is so much deeper than that, and that the general consumer doesn’t understand. You’ll see brands like Tsingtao, Modelo Especial, Negro Modelo or Pacifico and you’ll say, ‘Wow, there’s so much potential for these in our portfolio.’ These secondary brands have so much upside that it really is engaging to our distributor network.” As the business begins to connect consumers with more of its brands, Crown Imports is seeing an effect on sales, Hackett says. “As you look at the overall mix of the business, the mix of Corona is continuing to decline as the overall business grows because the growth is being driven by other members of the portfolio as they start to realize their opportunity,” he says. continued on page 34

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Cover Story

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continued from page 32

Crown Imports is placing a new emphasis on draft offerings, which provide opportunities for sampling and establishing brand affinity as well as advertising through tap handles, the design of which is a key consideration, says Jim Sabia, the company’s chief marketing officer.

Modelo Especial is the fastest-growing brand in the company’s portfolio, according to the company. To continue its growth, the marketing goal is to increase awareness of the brand thereby driving more households to purchase Modelo Especial, Sabia says. The brand is on track to sell 34 million cases this year and ranks as the No. 3-selling import brand. This year, the company ran its Àrst general market TV advertisement for Modelo Especial featuring international soccer star Clint Dempsey. The advertisement was the Àrst outreach beyond the Hispanic demographic, who make up 80 percent of Modelo Especial’s sales. Hackett notes that introducing new consumers to Modelo Especial remains a goal for the company. “Our challenge and our opportunity, really, is to build on that and continue to expand the awareness of the brand, a lot of which is coming through the draft beer that we recently introduced,” Hackett says. “[Draft beer] gives us a great platform to go and talk to general market consumers.” Draft beer is seen as one of the company’s biggest opportunities overall, Hackett says. He attributes some of the popularity of draft selection in on-premise locations to the growing craft beer movement, which often targets draft as its point of entry. “Clearly, the craft beer phenomenon has been a driver of draft selection, afÀnity and for consumers

to have the ability to sample different beers,” he says. “It’s been an area that we felt we absolutely had to play in and Grupo Modelo has supported us with their investment in this package.” Within on-premise accounts, the company’s Corona Extra and Corona Light bottles are popular, but Jacobson says the company’s research indicated that many consumers prefer not to drink packaged beer in on-premise locations. Instead, on-premise consumers often make beverage choices based on what’s on tap. “We weren’t even in that brand set,” he says. “So now, not only are we in that brand set, we have brands that are interesting and maybe even unknown to [consumers]. That creates an opportunity for them to create an afÀnity for that brand through draft. We’re excited about what Negra Modelo, Modelo Especial, PaciÀco and Victoria can do for us on draft and for that business across the board.” Negra Modelo was the company’s Àrst brand available on draft, and Crown Imports has since expanded availability with PaciÀco and Victoria brands. The company promoted the availability of PaciÀco on draft during the U.S. Open of SurÀng, which was July 30 through Aug. 7 in Huntington Beach, Calif. Draft serves as a catalyst for consumer discovery of PaciÀco, which is successful in California and along the West Coast. Crown Imports is expanding markets for PaciÀco and getting good traction, Jacobson says. continued on page 36

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“What we’re Ànding with [PaciÀco] is a high level of velocity, meaning with that tap, how much beer is going through it?” he explains. “It’s becoming one of our highest velocity brands per tap that we have, that’s why we’re so encouraged by taking it to new places.” Draft also is providing an opportunity to introduce new consumers to Victoria, which is the oldest and second best-selling beer brand in Mexico, Sabia says. Due to its popularity in Mexico, Victoria, an amber beer that Hackett describes as having a complex front-end with a clean Ànish, is already popular with Hispanic consumers of Mexican descent. Crown Imports sees a lot of potential for Victoria, which made its U.S. debut in Chicago in June 2010, but the introduction has been a challenge as demand for the brand exceeds the company’s strategy. “When we rolled out Victoria, one of the hardest things that we had to do was keep the package in the right places because we have retailers, distributors and consumers wanting it everywhere,” Jacobson says. The company has measured plans for Victoria’s rollout; since its mid-2010 launch, it’s still only available in 12 states. Even with limited availability, the brand is already the No. 20 imported beer brand in the United States, according to SymphonyIRI data cited by Sabia. “[Victoria is] just a jewel that we are excited about, but we’re also realistic in our approach,” Hackett says. “It’s not about driving overwhelming volume year in and year out. We know that this is a brand that can be built for the long-term so that’s the approach that we’re taking and that’s why we haven’t gone across the country. It’s building the business and afÀrming that business in each market as we roll out, and that takes resources and we are going to move relatively slowly in terms of expansion of the product.” In addition to the Grupo Modelo brands, Crown Imports also represents European brand St. Pauli Girl and Chinese beer Tsingtao. “More important than the business they drive, it’s an important message that Crown Imports has a diversiÀed portfolio and desires to be a representative of a range of products, not just one group from one country of origin,” Hackett explains. St. Pauli Girl has featured model Jennifer England as the personiÀed ambassador of the brand, which provides the European import with a point of differentiation, Hackett says. England represents the brand at events and recently was featured on the cover of the September/October issue of Beer Magazine. Although the non-alcohol offering of St. Pauli Girl has particular traction onpremise, the brand struggled in the last few years as demand for European beers overall has waned, Hackett says. “We are evaluating how we can support this business and From left to right: Crown Imports Chief Marketing Officer Jim Sabia, Chief continue to create a niche for St. Executive Officer Bill Hackett, Beverage Industry’s Jennifer Zegler and Crown Imports Executive Vice President of National Sales Bruce Jacobson Pauli Girl,” he says. “It continues to be very good beer. It’s authentic. discuss the company’s marketing and sales strategies.

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

It is a classic European style and one that we certainly have an afÀnity for.” In September, Crown Imports subsidiary Monarch Import Co. extended its agreement with Tsingtao International to be the exclusive importer of Tsingtao in the U.S. market as well as Bermuda and the U.S. Virgin Islands. Already popular in Chinese food restaurants, the company sees opportunity to expand the Tsingtao brand as a complement to all Asian food styles, Hackett explains. In addition, Sabia says the company’s plans continue to ensure Tsingtao’s availability at hotels and locations that cater to Chinese tourists and traveling businesspeople.

PARTNERING FOR POSSIBILITIES In addition to increasing consumer connections, Crown Imports has seen its new strategies create payoffs within its relationships with its partners, including Grupo Modelo and its wholesalers. Hackett says the relationship with Grupo Modelo has strengthened through the years as the U.S. market has grown from importing 1 million cases of Grupo Modelo brands to 160 million cases. “Grupo Modelo has come so far in their understanding of the U.S. market and their requirements of the U.S.,” Hackett says. “They have worked with us, especially over the last three to Àve years, in helping us access opportunity with new packages and new brands, which are not easy for them to do. Their whole market is dramatically different and has far fewer SKUs and they scratch their heads every time we come to them with, ‘Well, now we need an 18-pack and a 24-pack, etc.’ They understand our challenge and our business and they have responded, and that’s really helped us through the challenging times. They’ve been a terriÀc partner for us.” Last year, Grupo Modelo inaugurated its eighth brewery in Piedras Negras, Mexico. The new plant is located 10 miles from the western Texas border and was built primarily to supply brands for U.S. distribution, Hackett says. Crown Imports also has found that its targeted strategies are presenting advantages for its wholesaler network. “[Our wholesaler relationships] are as strong as they’ve ever been because we’ve engaged them and they’re a critical part of the mix,” Hackett says. “They are a critical part of who we are and what we do. We are absolutely interdependent — they are not going to be successful without us and we are not going to be successful without them. It’s clear that we both recognize that and we admit it, and therefore we work together to achieve win-win situations, and it’s working for us.” With its partner relationships strong, Crown Imports plans to maintain its strategic plans for U.S. growth. “We are planning on growing both volume and bottom line even as the environment is very challenging,” Hackett says. “Our expectation is that we’re going to do that with a very limited plan of package expansion. In fact, it’s really going to be Corona Familiar rolling that out nationally. … There’s opportunity gaps that we have across the market, each package and each channel. That’s really what we’re doing is afÀrming where we have opportunities or identifying them and then Àlling those gaps.” BI

Plant Focus

By Elsa R. Torres

A model plant Grupo Modelo’s newest plant sets a global standard

GRUPO MODELO’S COMPAÑIA CERVECERA DE COAHUILA S.A. DE C.V. IN Piedras Negras, Mexico, is one of the most automated plants in the global beer industry, yet it still retains the mastery of making beer that the company has had since its inception, thus preserving the traditional quality of its brands.

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The eighth and most recent plant in Grupo Modelo’s portfolio, the Compañia Cervecera de Coahuila has been called the “eighth wonder of Grupo Modelo.” Corona Extra production began March 28, 2010, in one of the most modern process plants in the world, which is a mark of pride for those who work at Grupo Modelo and in the Mexican village in general. Construction began in June 2007 and ended in a record time of three years in 2010. The new plant allows the company to deal with global trends in the beer market, increase its leadership and meet Grupo Modelo’s objectives. To select its location, Grupo Modelo made thorough investigations and projections for the construction, infrastructure and resources necessary for the development of its products. Coahuila, a state with experience in the livestock, coal and metallurgy industries that offers a strategic location, became the ideal candidate. For the construction of this plant, a strategy was developed with adequate infrastructure both in personnel and materials to mitigate the impact on the environment with state-of-the-art technology and a highly qualified staff.

A stained glass window marks the various factors that make up the Compañia Cervecera de Coahuila, including Grupo Modelo’s logo on the left, the plant and rail lines in the center, and beer ingredients on the right.

PLANT DESIGN Grupo Modelo staff applied the accumulation of knowledge acquired in other plants and improved some of the technologies with which they were already familiar. Throughout the process at Piedras Negras, they have applied the best technologies provided they do not impede with the methodology of making beer. “We follow a maturation method known as krausening,” says Engineer Arturo Cadena Rios, director of brewing and malting processes for Grupo Modelo, S.A. de C.V. “This obliges us in each and every one of our brands to keep this special recipe, the formula for each brand from its origin. Each brand has its own methodology of maceration, fermentation and maturation.” Planning, design and development of the plant’s construction was carried out by a team of engineers from Grupo Modelo. “Through experience gained in other Grupo Modelo plants, we have been able to develop knowledge and experience to carry out this megaproject,” says Engineer Alejandro Correa Iturbe, director of engineering for Grupo Modelo. “We had multidisciplinary teams that extensively participated in the design, development and construction of the plant. “At the time, we had the option to go to companies that specialize in this type of project, but for many years our staff has been trained through other projects within the company, and the result is a mega-plant with the characteristics that we wanted,” he concludes. Grupo Modelo’s plant in Zacatecas was a good example because it is a mega-plant that produces 528 million gallons each year. The cost of investment in this plant with its current capacity of 264 million gallons a year, in two phases of 132 million gallons each, was USD $600 million. The total area is 825 acres and is designed to be able to expand in the future. With the two phases, it currently occupies 252 acres, which gives them a margin of two-thirds to continue growing at 132 million gallons without disrupting production. “In addition, it allows us vertical growth and in the future we will be able to install our own manufacturing of bottles, cartons, etc. This would provide a lower cost of production,” Alejandro Correa says. continued on page 40

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

Plant Focus continued from page 38

The new plant has 650 employees, which represents a very high productivity, even taking into account production volume and size of the plant. The Compañia Cervecera de Coahuila produces Corona, Modelo Especial, Corona Light and in the future will produce Negra Modelo. Within the cutting-edge technology, one will find a sewage treatment plant with aerobic and anaerobic treatments that has allowed them to satisfactorily comply with Mexican law. Two premixers expedite production and allow the reach of 12 batches a day in each of the brewing tanks. Unitanks with fully automatic systems for the management of beer in the stages of fermentation, maturation and finished beer have a capacity of 264 million gallons each year. The brewery has the largest lauter filters in the world, the company says. Measuring nearly 50 feet in diameter each, their function is to filter the mash before moving on to the cooker. In the brewing area is a single control room where all the variables of the process, ranging from grain reception until the beer is sent to packaging, have been centralized. Everything is controlled through double-function valve systems, process automation and activities, and high-tech equipment. Packaging lines operate at a high-tech level. Laserguided vehicles move all the inputs of the packaging production lines as well as the finished product from these lines. High-density warehouses keep sufficient levels of finished product inventory.

UNITANKS: TRUE APPLIED TECHNOLOGY

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Fermentation and maturation processes are carried out in a single tank, which is why they call them “unitanks.” The plant has three sizes of tanks: the smallest has a capacity of 36,984 gallons, 26 medium tanks have a 142,653 gallon capacity and 42 tanks have a 324,932 gallon capacity. The tanks are filled to 75 percent capacity for fermentation and 98 percent for aging. “They are called unitanks because when we previously had the conventional process, we had to ferment in a rectangular tank and mature in a cylindrical tank,” Arturo Cadena says. “Today, that process is held in a single tank. The savings is certainly extraordinary. We previously had a room where we refrigerated all the tanks whether they had or didn’t have beer; today we refrigerate only the tank that has beer. This is possible because the unitanks have coolant to cool only the tank that is needed.” “In the 1980s, we tested processes with [79,352 gallon] tanks, later expanded to [211,338 gallon] and ended up with [317,006 gallon] tanks,” Alejandro Correa says. “This was a great accomplishment knowing that yeast is a microscopic organism of 5 microns in size, and with the static load, which [in the largest] tank [is 66 feet] in height, we had to refine the process very well so the fermentation Grupo Modelo’s Compañia Cervecera de Coahuila currently occupies 252 acres of its 825 total acres in the Mexican town does not suffer any deterioration, and we did it. of Piedras Negras.

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

“The Zacatecas plant started with the concept of [317,006 gallon] tanks, but the difference in the new plant in Piedras Negras is that the process is fully automated with double-seat valves,” he continues. “Technology now allows a network of pipes to circulate a liquid on the one side and a different liquid on the other without mixing them. This gives us more flexibility, less length of pipelines and more control of the process.” Another technological advancement is the distribution in a linear process. “Everything moves in one direction, pumping and the movement of all materials and products, in the same direction. This has allowed us to economize on space, energy, water and pipeline,” Alejandro Correa says.

TECHNOLOGICAL CONSIDERATIONS The packaging area consists of four lines — three for bottles that run 2,400 bottles a minute and a can line that operates at 1,200 cans a minute. Machinery protects the integrity both of empty packaging and full containers through fully automated systems, which is a guarantee of quality for the products. The packaging technology allows them to be more productive and profitable. Although there is equipment that fills up to 2,200 cartons a minute in the market, the company decided on three fillers with speeds of 800 bottles a minute, a total of 2,400 a minute. “The investment might be more expensive at the beginning, but productivity is more profitable because if a malfunction occurs, it can be corrected with minor loss of productivity (it’s not the same to stop production of 800 bottles versus 2,200 bottles per minute),” says Arturo Cadena. “In addition, the machine runs at a speed that does not sacrifice the equipment: there is no excessive wear and allows us to carry out the scheduled maintenance. Without this it would have more of an impact. True innovations are the double-seated automated valves that have not only made it possible to automate the process, but they represent substantial savings.” Mechanical systems have been a part of the industry for hundreds of years, but is it possible that they will be displaced by robots? Alejandro Correa says it depends on the activity. “There are activities where the robots are highly profitable, such as packaging where they are very efficient,” he says. “They are also excellent for routine activities, activities that present high distress to workers or when heavy lifting requires more people.” For this plant, Grupo Modelo sought to apply proven technologies with well-known benefits. “We have not been closed-minded to new technologies, but yes, we want to be certain that it will bring savings or benefits to productivity,” says Arturo Cadena. Some of the criteria for choosing a vendor are the quality of the products it offers, if it has proven

SUSTAINABILITY PLANS

QUALITY AND DISTRIBUTION

The issues of quality, employee safety and environmental control are priorities for Grupo Modelo regardless of whether the return on the investment is justified. An example of this is the masher housing where the temperatures can be extremely high. The equipment in this area of the plant is completely isolated. Protection of the employees also was taken into account in the architectural design incorporating good ventilation and lighting, anti-skid floors, and appropriate sound levels. “In the production process, we have systems to recover energy, save steam and automate dosing systems, which has involved much technology for control and monitoring of the process and achieved fuel savings,” says Arturo Cadena. For the cleaning of the equipment, systems were developed that enable total sanitation with less intervention by staff and with the greatest possible safety and effectiveness. “We are talking about tanks that are [66 feet] tall that are washed with a combination of machines and run-off,” explains Arturo Cadena. “This washing is done through a system of sprayers which distributes the liquid evenly like a film. This requires that the finished material and inside of the tank are suitable because there is a risk that if the drainage is not correct, crusts can form, and also to prevent the formation of beer stone.” The plant takes into account the use of natural resources, such as water; proper chemical use; saving energy with low consumption lamps and sensors that turn on and off, thus not lighting areas that are empty; and systems designed to recover biogas, which is reused in the boilers.

The plant has various certifications to assure the quality of its processes and products as well as environmental care. “Since we are exporting to more than 170 countries, we have to comply with the strictest quality standards and controls,” Arturo Cadena says. “We therefore have all the ISO certifications, but no less important are those required in the country, which are quite severe and mandatory. We have good manufacturing practices and go beyond other concepts. “This plant has a very special feature, products are not stored for a long time nor are they kept empty or full for many days,” he continues. “We have equipment for microbiological detection of anaerobic sowings (five days) and aerobic (three days) and also have Milliflex equipment that uses bioluminescence technology with which we have the results within 24 hours. This gives us total security. We cannot afford the luxury of an error being only [9.3 miles] from the border of The new plant uses robotic elements in processes, such as case packing. the United States.” >>

technology, that it is a responsible company and that it is willing to be more of a strategic partner than a vendor. Within this group of companies is Inamex de Cerveza y Malta S.A. de C.V., which has approximately 500 employees. Inamex has contracts for the transfer of technology with technical partners of Grupo Modelo and installed almost 90 percent of the equipment for the breweries. It participated in the manufacture and installation at a very high percentage. “Inamex is our manufacturer for very large equipment, such as conical cylinder tanks that were assembled on the site; it is not possible to bring them assembled. Thanks to Inamex that manufactured and installed all of the tanks at Piedras Negras, we could finish the factory in record time,” says Alejandro Correa.

A good portion of the water is reprocessed to be used in the plant; the water that is not reused is sent to a sewage treatment plant to be treated and returns to the sewer system in the manner required by the Mexican government’s standards. Many of the technologies applied in this mega-plant, such as energy consumption savings and more efficient water treatment, are being evaluated to see whether they should be replicated in other Grupo Modelo plants. But one of the best uses of available technology is the high-density storage. “Despite similar storage in other areas, none is equal. In this case, it was tailored to the needs of Piedras Negras,” Alejandro Correa says. They formerly had large areas of storage for empty packaging, finished product, etc. The high-density storage area measured approximately 394 feet by 492 feet with a height of 11 stories and exploits more space per square foot all together. “Robots are programmed to locate the empty packaging, find a particular brand, etc., with millimeter precision. This allows the finished product to co-exist with the packaging, etc., and there is room for 72,000 positions,” Arturo Cadena says. It is self-supported, fully automated and there are no workers within the area. Everything is robotic and automated to have real-time inventory and shipping. Product rotation is better and they have no waste.

>>

Engineer Arturo Cadena Rios, director of brewing and malting processes, and Engineer Alejandro Correa Iturbe, director of engineering for Grupo Modelo S.A. de C.V., received the award commemorating Industria Alimenticia magazine’s Plant of the Year title.

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Plant Focus

>>

continued from page 41

Because the majority of the Coahuila brewery’s production is exported to the United States, it has established security and distribution standards that are required by the country from both the logistical and profitability point of views. Being as close as possible to its target — the American market — was paramount and that is why the plant is located in the municipality of Nava on one side of the city of Piedras Negras and at only 9.3 miles from the border. The second is related to the concern about environmental pollution. Therefore, 85 percent of the distribution is done in containers that are sent by rail, which is both cheaper and cleaner, leaving only 15 percent distributed in trucks. In this plant, they also manufacture The brewery uses automation in several stages of brewing, packaging and storing. some non-returnable

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products sold in Mexico. The railcars leave organized by lots and have an established path, which is downloaded to distribution centers. Team participation was integral in order to realize this marvel of Grupo Modelo. “Many factories provide their staff with many years of experience — young engineers are trained in Grupo Modelo’s plants where they can find the best teams to achieve the knowledge to be used later. Other collaborators supported the team that was at the forefront of the work from their positions in the office. Everyone participated actively in the project and this plant is the sum of the efforts of many people; it is the contribution of everyone,” Alejandro Correa says. Arturo Cadena discloses, “Despite the problems of Mexico and the negative news that propagates globally about the country, it is well-known that there are people interested in getting things right and this plant is proof of this, which is a pride not only for those who work in Grupo Modelo, but for the whole country.” BI Elsa R. Torres is the chief editor of Industria Alimenticia, a Spanish-language sister publication of Beverage Industry magazine. Industria Alimenticia selected Grupo Modelo’s Compañia Cervecera de Coahuila as its Plant of the Year, which it covered in its October 2011 issue. To read more articles on the Latin American market, visit industriaalimenticia.com.

Up Close With...

By Jessica Jacobsen

Appealing to an active lifestyle AS THE ENERGY DRINK MARKET EXPANDED YEARS AGO, SPORTS NUTRITION AND supplement company Xyience, Las Vegas, saw the emerging category as the next step for its products. That evolution led to the development of Xyience Xenergy drinks. “Xenergy is ‘zen energy;’ that’s what it means,” says Michael Levy, chief financial officer and chief operations officer with Xyience. “It has a concept of healthy energy for people with an active lifestyle.” Levy says that the company wanted to develop an energy drink that tasted great, but also had zero calories and no sugar. Its line of energy drinks also contains allnatural flavors and colors. “We’re speaking to a different consumer,” says Xyience President John Lennon. “Basically, our key point of difference is no sugar, no calories, great flavor, and the energy hit is coming from a big hit of B vitamins. We have niacin, magnesium, potassium, all kinds of good things in the product as well, and that goes with the source of the supplements company. “We’re pitching ourselves to a more adult consumer, a little older consumer, a little bit more active — someone who’s really beginning to think about what they’re taking into their bodies and what they’re consuming, so a more responsible, more educated consumer,” Lennon adds. Xyience also partnered with the Ultimate Fighting Championship (UFC) and sponsors some of the sport’s high-profile fighters, which has allowed Xyience Xenergy to reach a large audience and fan base. “We know who the UFC aficionado is, and that’s two-thirds male, one-third female, typically between 21 and 34 years of age, college-educated, above average household income, and really that’s where we believe we appeal to,” Lennon says. “That’s why we like UFC so much, because that helps deliver that consumer. We think that’s the right consumer for our product and UFC delivers that for us.” Xyience also maintains a strong relationship among its sponsored fighters. “[Being] branded with the UFC is huge … a lot of people associate the brand with UFC and as it grows, the brand grows as well,” says Mark Hominick, a Xyience-sponsored UFC fighter. “Xyience is great,” says Dan Hardy, another Xyiencesponsored UFC fighter. “They push us very much and it’s like a family, so all the fighters work quite well with them. We all want to push the brand and, obviously, the product as well. I use the product in my training.” In addition to product awareness, Xyience and its athletes also engage in promotional events where the fighters sign autographs for its fans at retailers as well as showcase the Xyience Xenergy products for potential consumers. The products’ ingredient statements also have helped Xyience Xenergy reach another audience. “The female consumer we’re actually getting by default because

they’re the ones actually looking at the ingredient collection of our product,” says Reuben Rios, vice president of sales for Xyience. Females are a different audience than UFC fans, and the company wants to better understand who is drinking the products and why. Lennon adds that, anecdotally, the company believes female consumers are drawn to its no-sugar ingredient statement.

Xyience Xenergy drinks target healthy energy

FLAVORFUL EXPANSIONS Xyience Xenergy drinks include a wide array of flavors, including its top sellers Mango Guava and Cherry Lime. The company’s newest flavor, Xyience Xtreme Frostberry Blast, is inspired by its natural formulation, Lennon explains. “If you look at the product, it’s actually a Blueberry/ Raspberry product, but to create a blueberry bluish-red color requires artificial coloring agents, which we would not put in our product,” he says. “So we presented it in a natural color, which is sort of this icy, frosty looking product, and therefore that was the reason for the name, because it reflected better for the product.” Frostberry Blast features Xyience-sponsored UFC fighter Wanderlei Silva on the limited-edition can. The addition of the fighters to the cans is a new element for Xyience. Rios says the company noticed that within other categories, the collectible can added value to not only the Xyience brand, but also to people who watch the sport. This year the company also released a Fruit Punch variety in a limited-edition can featuring Hardy. Xenergy Xtreme Fruit Punch is made with a blend of flavors from natural sources, including cherry, orange and tangerine. Xyience also has applied the collectible can package to existing flavor Xyience Premium Cran Razz featuring Jon Jones, current UFC light heavyweight title holder. That same dedication Xyience applies to its packaging also is present in its flavor varieties. “We’re continually looking at the popularity of flavors and they continually change; some will go out of style and come back into style later on,” Levy says. “So we may take out a flavor, but we’re always prepared to launch it back in the market if we feel that the consumers’ tastes want the flavor.” Rios adds that the company monitors its flavor sales and if it notices a SKU slowing down, it will replace it for the retailers. “The greatest thing about it is when we’ve got a whole shelf. It’s absolutely awesome when our chains are realizing that every SKU is selling, and that’s exciting.” BI

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Marketing << Terminal takeover

Master homebrewers

This summer, William Grant & Sons Global Travel Retail and the International Shoppes partnered to bring Hendrick’s Gin to travelers at John F. Kennedy and Philadelphia International Airports. In a twomonth period, more than 3 million consumers were introduced to the brand through a series of brand activations ending with the creation of Hendrick’s Victorian Hothouse, a concourse activity at Jet Blue’s JFK Terminal 5, from Sept. 5-12. The brand activations included Hendrick’s Birdcage merchandising units, ice cream tricycle cart sampling bars, Victorian croquet sets and in-store branding. Hendrick’s Victorian Hothouse featured a gothic-style front and weather vane made from cucumbers as well as brand decorations.

Pilsner Urquell announced the winners of its 2011 Master Homebrewer competition, which took place in Chicago, New York City and Washington, D.C. The homebrewers were tasked with re-creating the Czechstyle pilsner made famous by Josef Groll in 1842. Each beer was judged according to cleanliness, artistic impression and, most of all, accuracy to Beer Judge CertiÀcation Program style. Of 125 competitors, three claimed the title of Pilsner Urquell Master Homebrewer. The winning homebrewers were the following: Philip Jensen of State College, Pa.; Aaron Hermes of Leesburg, Va.; and Jeff Lewis of Hilliard, Ohio. Each winner will travel to Plzen, Czech Republic, later this year to tour the historic brewery and attend the International Master Bartender Competition in Prague.

Winning park After 13 million votes were tallied, Oak Park in Minot, N.D., came out on top as the winner of The Coca-Cola Co.’s second annual “America Is Your Park” campaign. In addition to winning the title of “America’s Favorite Park,” Oak Park was awarded a $100,000 recreation grant made possible by the Coca-Cola Live Positively initiative. Second and third place winners also received grants. Soudan Underground Mine State Park in Soudan, Minn., and Cunningham Park in Joplin, Mo., received $50,000 and $25,000 grants, respectively. The grants will be used to restore, rebuild or enhance places for people of all ages to be active outdoors.

<< Roots marketing Jarritos launched a new campaign to honor its Mexican roots and loyal fans, it says. The campaign, “We’re Not From Here,” made its debut in September and features original wall mural art, a branded food truck and sampling bicycles. It also supports the brand’s new website, which includes videos and user-generated content, as well as in-store signage and media sponsorships. Murals and sampling events will kick off in the Los Angeles area, followed by other markets such as New York City and Austin, Texas, in 2012.

Nationwide taste test

<<

‘Cheers to Education’

J.J. Taylor Distributing Florida Inc., Tampa, Fla., donated $20 million in beer excise taxes to Step Up For Students, a non-proÀt organization that provides scholarships to underprivileged kindergarten through high school students in Florida. J.J. Taylor presented checks to the organization at its “Cheers to Education” events, which took place at three of its Florida distribution centers. The company joined the program as a corporate sponsor in 2011 and has pledged the largest single redirection in the history of the program, which will provide scholarships for nearly 4,850 low-income children in Florida to attend a school that best meets their learning needs, the company says.

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To promote its new spiced rum, Bacardi introduced fans to the Bacardi OakHeart Challenge, which attempted to bring together more than 25,000 consumers around the country on the same day at the same time to try the rum neat, over ice or with cola in bars. The social media component of the OakHeart Challenge was the “Three Word Toast” contest on Facebook, where fans were challenged to come up with the perfect three-word toast for Bacardi’s new product. The best toasts were put to a vote each week and winners received OakHeart steins. The contest lasts through Nov. 23.

Packaging

By Stephanie Hildebrandt

Labels take on new shapes For new consumers, labels oftentimes are a deciding factor for purchase. They help present information to the consumer, identify the product and offer shelf standout. The first mainstream bottles were made from a straight-walled glass material, which featured a built-in relief to prevent labels from touching during shipment, says Louis Iovoli, vice president of strategic partnerships and marketing for Hammer Packaging, Rochester, N.Y. When PET bottles were invented, they replicated glass bottles, presenting a drop-in solution for the beverage industry. And as the technology became more accepted, beveragemakers began to innovate with unique shapes, adds Iovoli, who also is the current chairman of the Label Printing Industries of America. “The form and function of bottles will continue to evolve, and as it does, it really puts a higher demand for labeling in shrinkable films to meet those forms and functionality,” Iovoli says. “Everybody wants something to make them stand out on the shelf. … The standard old bottles that all look the same, that’s going away.”

MATERIAL SELECTION Whether the bottles are made for form or function — or both — the bottle shape can greatly impact a beverage-maker’s labeling material choices. However, brand managers also must consider the product’s function, audience and placement at retail, among other things. “The most important thing to do is to begin with the end in mind,” says Don Earl, president of Overnight Labels Inc., Deer Park, N.Y. “The labeling material should help convey the company’s message, however, graphics are the most important part of the label. The label material just supports the designer’s vision. Of course, you must ask the converter and co-packer if the specific substrate will work in the manufacturing process.” Once a beverage-maker has selected its route-tomarket and discovered the options available, it’s

time to choose the appropriate label. Oftentimes, beer bottles make use of cut-and-stack labels because of their economics, Earl says. However, he does see the occasional inquiry for a shrink sleeve on a beer bottle. Functional beverage-makers, on the other hand, most often select shrink sleeves. “PETG is the most desirable because of its excellent shrinkability and stability and its relative environmental friendliness,” he adds. Likewise, PLA is another higher shrink percentage film for shrink sleeves, says Paul Pritchett, sales, marketing and technical manager of the Labeling Solutions Division of Printpack Inc., Atlanta. The company’s Affinia shrink film line is made from PETG, PVC, OPS or PLA film. One of the company’s new materials is its Acro Affinia high percentage machine direction shrink film, which is roll applied. Printpack also offers a PETG shrink film under its NeoAffinia brand. This material is a white film that provides a matte finish look with a soft texture, he adds. Film-based labels are a popular request due to their durability and moisture resistance, says Gwen Chapdelaine, marketing director for Elk Grove, Ill.based Fort Dearborn Co. According to Dawsonville, Ga.-based SleeveCo, shrink and stretch labels have grown in popularity. In addition to their ability to grab consumers’ attention on shelves, they can conform to any package shape and size, and provide tamper-proof evidence, SleeveCo says. Stretch sleeves are one-piece, 360-degree, closed loop labels made from low density polyethylene, the company explains. They are applied with special stretch sleeve equipment, which opens and stretches the sleeve onto the container, which then adheres to the container utilizing the “memory” of the film, it adds. “The procedure is simple and fast, so there is high application efficiency, and application speed is largely limited only by filler speeds,” SleeveCo says. When it comes to using paper as a labeling

Labeling materials adapt to packaging forms and functions

>>

IMAGINE OPENING A COOLER FULL OF BOTTLED SOFT DRINKS, WATER AND beer only to find the labels peeling off or disintegrating. Labels are expected to hold up against environmental factors like water, ice and hot or cold temperatures. When they don’t, it can reflect poorly on the product. And if this happens at retail, it could even deter a consumer from purchasing the product.

Printpack’s Acro Affinia shrink films can be run on most roll-fed applicator equipment with slight modifications to the line. Running this film provides machine speed advantages versus traditional shrink sleeve labels, the company says.

continued on page 46 bevindustry.com | NOVEMBER 2011 | Beverage Industry |

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Packaging continued from page 45

material, Frontier Label Co. offers a line of 60-pound Estate papers with a slight ribbed texture. The labels offer significant wet strength to keep the material from disintegrating in water and the adhesive from separating from the paper, says John Flowers, prepress/customer service manager for the Greenville, S.C.-based company. “It’s a thicker material, it doesn’t have a laminate on it and it kind of has a craft paper feel to it, so it’s a little bit nicer and it really stands out on a shelf compared to any sort of other material that would be non-textured, not quite as thick and would have to be laminated,” he says.

INTEREST IN GOING GREEN

>>

“One of the trends that we’ve participated actively in on the shrink sleeve side is downgauging,” says Printpack’s Pritchett. “Label material is becoming thinner to generate a more positive sustainability result and to drive cost savings.” Bruce Gordon, product services manager with Arjobex America Inc., Charlotte, N.C., also notices customers requesting thin films that are sustainable as well as more durable in-mold labeling (IML) films. Frontier Label Co. is in the testing phase for two sustainable materials. The first is made from crushed rock particles and the other is made from post-consumer recycled material. However, the company hasn’t seen as many requests for green materials in the last year as it did in the two years prior, Flowers says. When compared to other materials, sustainable options are typically much more expensive, Hammer Packaging’s Iovoli says. Considering the amount of resin used to make a bottle or cap and the energy used in distribution, the label is a small concern in the sustainability of a beverage, he says. Nonetheless, customers are still seeking these materials, even though the demand might not be at its peak. Fort Dearborn, for instance, is seeing a growing interest in eco-friendly labeling materials. As a result, it offers a recycled wet strength paper for cut-and-stack label applications. It also offers soybased inks; its HiColour printing eliminates the need Nika Water sports a pressure sensitive label printed on Hammer Packaging’s Nilpeter flexo press. for special PMS colors allowing for more effective

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>> Fort Dearborn offers a roll-fed label made from a clear film material, which enables 360-degree graphics.

combination sheet printing and reduces press make-readies and run quantities, Chapdelaine says. For pressure-sensitive labels, Fort Dearborn offers PCR and tree-free facestocks as well as EarthFirst PLA film for pressuresensitive and shrink sleeve applications, she says. In the future, Chapdelaine expects to see a continued trend toward downgauging labels and a growing interest in eco-friendly labeling materials, such as recycled paper, recycled wet strength paper, PLA films and soy inks. Similarly, Overnight Labels’ Earl expects to be using more environmentally friendly films in the future.

THE BOTTOM LINE However, because of the recession and rising prices, many beverage-makers are putting cost above sustainability when selecting a label. “Customers are always looking for cost reduction opportunities,” Chapdelaine says. “We have successfully helped customers reduce costs through investigation of substrate and print method alternatives, supply chain management programs that leverage technology to reduce costs, and technical resources to help identify efficiency improvement efforts within a customer ’s facility.” As a small digital label printer, Frontier Label has the ability to reduce costs for its customers by printing smaller runs. This way, beverage-makers can keep the amount of product on the shelf that they know will sell quickly as opposed to buying it in bulk and keeping the product on shelves in a

warehouse, Flowers says. Because the company isn’t built around a business model to print millions of labels per customer, it can provide shorter runs of labels and therefore, a shorter turnaround time, he adds. In addition to saving cost by increasing speed, reducing resin weight and experimenting with different inks, Hammer Packaging puts 12 percent of its annual sales back into capital equipment every year, Iovoli says. “Engineering has become more and more critical to the beverage industry and if you’re not investing in equipment, whether you’re a printer or a bottler … then you’re going to be left behind,” he says. “You need to be investing in the technology that allows you to fill a lighter weight bottle, to use a lighter weight label, to use different styles of labels … otherwise your case price [is] just not competitive.”

CONSIDERING AESTHETICS While the function of the label is important, as Overnight Labels’ Earl highlights, the graphics are the most important part. Recently, the company began printing foil on shrink sleeves, which gave customers new decorating options >>

Overnight Labels’ shrink sleeves are a solution for uniqueshaped bottles and offer a tamper-evident seal.

that they didn’t have a year ago, he says. Earl believes this innovation, along with thermochromatic inks and other inks with special effects, will be used more often in the future. For beverage-makers looking for an upscale look at a reasonable price, Fort Dearborn offers a variety of substrates. Synthetic materials for cut-and-stack labels, which are now available in clear, metalized and white colors, provide an upscale look in addition to durability and moisture resistance, Chapdelaine says. Clear film substrates in pressure-sensitive applications can provide a more natural and upscale look. And for shrink sleeve labels, high yield PETG film, a white substrate, provides an upscale matte finish that offers higher opacity and light blocking capabilities, she adds. Frontier Label’s Flowers agrees, noting that putting a matte finish on a label makes it look classy no matter what’s printed on it. Another affordable option is metallic highlights, which can make a label stand out at any angle on a shelf, he adds. “I think there’s a tendency to go to an extreme, either really overdoing a label and selecting as many options as possible or there’s the other extreme of going too simple and too basic and potentially not representing your company well,” Flowers says. “Even something as simple as the material can really speak on behalf of the company. I would advise beveragemakers to really think about what they’re trying to sell and then what would they want to carry the face of that because they’re not just selling the drink, they’re selling the packaging it comes in.” BI

PACKAGING NEWS MODERNIZED PACKAGING DFV Wines is re-launching its traditionally packaged Delicato brand into a new modern package called Domino. The change marks a shift toward innovation at DFV Wines and reflects the company’s steady growth, it says. As consumers gravitate toward more contemporary brands, the Indelicato family felt that the time was right to refresh Delicato’s packaging and positioning, the company says. The DFV Wines marketing team chose a retro, yet contemporary

style that was designed to appeal to both the brand’s current customers: baby boomers, as well as the growing demographic for wine: millennials.

CANNING CONVENIENCE Previously available in designer glass bottles, Cascal fermented soda now is available in cans. The can transition also has heralded the introduction of three new blends: Bright Citrus, Berry Cassis and Fresh Tropical. The brand’s existing Crisp White and Ripe Rouge varieties also are available in cans. bevindustry.com | NOVEMBER 2011 | Beverage Industry |

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Packaging PACKAGING NEWS NOSTALGIC BOTTLES After receiving feedback from focus groups after the brand’s initial rollout,

RealBeanz reworked its packaging, the shape of which was inspired by old milk bottles. As a result, approval

ratings increased from the 60 to 70 percent range to the 80 to 90 percent range, the company says.

The Maximum Machine for the

Perfect Package. The cutting systems on PDC’s tamper evident banders and shrink sleeve labelers are uniquely tough and durable. Unlike the competition’s tiny spinning knives that dull quickly, often in days, PDC’s blades are built to deliver clean cuts for months. Rugged, resharpenable blades mean reduced downtime and longer intervals between replacement. PDC’s solid blade assemblies reflect our commitment to build tough, durable machines for Ultimate Productivity and your perfect package.

Call PDC at 203-853-1516 or visit us at www.pdc-corp.com.

PDC’s robust mechanical blade assemblies are built like tanks to save you downtime and make your package look perfect.

PDC’s R-250 Evolution Shrink Labeler applies heat shrinkable labels at over 250 bpm and can also be used to multi-pack products.

4(%0/7%2"%().$4(%0!#+!'% 3 ( 2 ) . + 3 , % % 6 %, ! " % , % 2 3s4! - 0% 2% 6) $ % . 4. %# +"! . $ % 2 3 - 5 , 4 ) 0 ! # + % 2 3 s 3 ( 2 ) . + 4 5 . . % , 3 s 3 4 2 % 4 # ( 3 , % % 6 ) . ' s # / . 4 2 ! # 4 3 , % % 6 ) . '

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

INTERACTIVE LABEL Anheuser-Busch InBev joined forces with Spear to introduce an interactive label for its Bud Light brand. The bottles now feature a customizable pressure-sensitive label. Incorporating metal activation technology, extensive testing was required to investigate accidental activation and abrasion problems. The end result features an exclusive area of the label on which consumers can customize their bottle by using a coin or key to write a message or draw an image.

ARTISTIC CAN

PDC BLADES LAST MONTHS,NOT DAYS

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RealBeanz also altered its flavor, coffee and sweetness profiles.

Bomb Lager, a new craft beer from Bomb Beer, has launched in Rexam 12-ounce cans. Bomb Lager is committed to building a brand that embodies artistic expression and creativity, as well as easy drinking, the company says. Every production of Bomb Lager will feature a new can design developed by a local street artist. New York City’s East Village artist Billy Miller came up with the graphics for the inaugural can. Bomb Beer Co. chose to launch its beer in aluminum cans because they offer the best canvas to display the artwork that is a key part of its brand, it says. In addition, cans completely block out light, which helps beer stay fresh longer, are more widely accepted at outdoor venues and are the most sustainable choice with a recycle rate at more than double any other beverage package, it adds.

NEW BOTTLES Coupled with its Big Apple campaign, the FRS Co. partnered with multi-faceted entertainer Nick Cannon to promote the debut of allnatural Healthy Protein and Healthy Energy beverages in sleek, recyclable and resealable bottles. The FRS Healthy Energy product offerings will be available in resealable bottles and sleek recyclable cans in a variety of flavors and formulations.

Beverage

By Jessica Jacobsen

A colorful

palette of options

FOR BEVERAGES, COLORS CAN PLAY A CRUCIAL ROLE WHEN IT COMES TO shelf appeal. They can help grab a consumer’s attention as well as correspond to the flavor and branding of a beverage. In addition, as beverage-makers seek more natural ingredients to be able to provide clean label statements, the search for colors that can deliver on all of those requests has helped spark innovation among ingredient suppliers. “One of the big problems is the definition of ‘natural,’” says David Tuescher, technical director with Sethness, Lincolnwood, Ill., a caramel color supplier. “There is no government definition of ‘natural’ and if you look at the long term, in the past, all caramel colors were considered natural. Nowadays, some companies consider all caramel colors natural, some companies consider only the Class 1s, and most companies prefer Class 1 for natural over the other products.” In addition, ingredient suppliers suggest that regulations in Europe have impacted the natural and synthetic markets domestically. “In Europe, the main drive has been the change in the regulations last year requiring that products containing azo dyes, red 40, yellow 5, yellow 6, etc., the main category of synthetic colors, be labeled to the effect: ‘May cause attention or activity disorder in children,’” Greaves says. “This has had an indirect effect on the U.S. market as multinational [companies] seek to eliminate synthetic colors globally as a result.” The regulations with synthetic dyes in Europe are an example of the replacement aspect of formulation, says Jason Armao, director of application and innovation with D.D. Williamson. Although D.D. Williamson says it is seeing the switch to naturally derived colors, in the United States those requests are more common for initial products and not reformulations. “A lot of those [requests] are coming from product line extensions or creating new products,” Barnum says. “In some cases, it is reformulating products. A lot of it is, ‘I’m used to dealing with synthetic color, but for this product I’d like to try the natural alternatives.’ Sometimes we get the other, but it’s a lot more challenging to reformulate and match exact characteristics.”

MAKING THE SWITCH Ingredient suppliers that deal in both natural and synthetic colors have seen more of their customers’

>>

“All of our research indicates people are really starting to care about what they put into their body and especially in diet drinks,” says Stefan Hake, chief executive officer of GNT, Tarrytown, N.Y. “People don’t just count calories, they’re aware of what they’re putting into their body, and there’s some great diet drinks like water drinks that are zero calories and they are also natural and don’t contain any artificial colors. “The market is being driven by consumers and also by a lot of retail outlets that position natural products over products that are artificially colored, and we see that the trend is moving more and more in that direction,” he continues. That driving force for natural offerings has had some impact on the synthetic colors market. “The artificial color market globally has been shrinking, though this has not been reducing the cost of synthetic colors. Perhaps this is due to the economies of scale,” says Jeff Greaves, president of Food Ingredient Solutions, Teterboro, N.J. “As demand for synthetic colors is decreasing, many synthetic color companies are seeking to reinvent themselves as natural color companies.” Even though some ingredient suppliers say that synthetic color demands do not seem to be increasing, a market still remains. “I think there is still demand for artificial colors, particularly … [for] existing products,” says Campbell Barnum, vice president of branding and market development with D.D. Williamson, Louisville, Ky. “But I do think that natural color has been growing 5 to 10 percent a year in the past few years in North America and synthetic color demand has been pretty flat, just from a total dollar perspective. The food and beverage industry has been growing, but artificial color demand has been flat, so natural colors have enjoyed the growth in the beverage industry.” As naturally derived colors continue to become more popular with beverage-makers, ingredient suppliers have encountered some issues with the term “natural.”

Color trends address natural demands, stability concerns

Wild Flavors developed Acid-Stable Blue, which is a color naturally derived from fruit and suitable for both the food and beverage industries.

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requests leaning toward the natural side. By selecting naturally derived colors, some challenges and limitations can arise. Sensient Colors LLC, St. Louis, says its customers want natural colors that are as stable and consistent in shade as the synthetic versions. “We continue to improve the vibrancy and stability of natural colors by developing more stable botanical sources, identifying new sources or even developing new plant hybrids,” says Mark Goldschmidt, director of global quality and product safety with Sensient. “Selective plant breeding programs and new hybrid creations are important factors in producing more stable botanical sources.” He adds that a majority of Sensient’s natural colors are free of genetically modified organisms (GMOs), preservatives and allergens. “We know that people want cleaner, more wholesome ingredients in their product, and we also know that natural colors possess compounds that promote health and wellness,” Goldschmidt says. “We offer a complete product portfolio of natural colors like carotenoids and anthocyanins, which capture many of the healthy attributes inherent in colors derived from fruits and vegetables, such as D.D. Williamson says improvements with technology have antioxidants, vitamins and polyphenols.” aided in making emulsion colors and improved efficiencies One area that has sparked recent innovations with extraction techniques. is the development of a natural blue color. “Regarding natural colors, the biggest gap is finding a natural blue color that can replicate the rich shade of certified colors,” says Emina Goodman, technical support manager for the beverage and dairy group with Sensient United States Food Colors. “Since blue is a primary color, which is also used to develop green and purple shades, this gap affects the development of vibrant green and purple shades.” Great colors make everything more enchanting. Goodman adds Trust your coloring needs to the proven experts at D.D. Williamson. that the company previewed its Our wide array of natural colorings – along with our sought after development of a caramel color – helps sell 1.5 billion servings of foods and beverages every day. natural blue color at the Institute of Together we can create alluring products. Food Technologists Expo this year and is testing the natural blue shade with select customers. Erlanger, Ky.1- 800- 22 7 - 2 6 3 5 ddwilliamson.com

Color Makes Life Magical

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based Wild Flavors also made advancements in the natural sector with its development of the Acid-Stable Blue color. Wild Flavors’ Acid-Stable Blue offering is naturally derived from fruit and is ideal for both the food and beverage industries. “The Acid-Stable Blue is our most recent innovation and with that it allows us to create different shades such as green or purple and even black or brown. This really has been quite a successful innovation for us, and we continue to expand upon it,” says Chad Ford, technical product manager with Wild Flavors. Additional features for the Acid-Stable Blue are that it is GMO-free, kosher, water-soluble, heat-, light- and acidstable, and offers a clean taste and smell, the company says.

STABILIZED OFFERINGS In addition to developing naturally derived colors that mimic the vibrancy and the hue of synthetic colors, ingredient suppliers also are tasked with ensuring stability in natural offerings. “The issues for both natural and artificial colors in beverages are light stability, heat stability and pH stability,” says Food Ingredient Solutions’ Greaves. “In some cases, natural colors actually offer a performance advantage over synthetic colors. For example, acidproof cochineal has far superior light stability to the synthetic red color with a similar shade, red 3. Also, purple sweet potato color offers superior stability to red 40 in systems with high amounts of vitamin C.” Food Ingredient Solutions has worked to develop a range of colors that meet stability needs of beveragemakers with its FISclear line of natural colors and micro-emulsions. “The fruit and vegetable juice colors under this banner offer a complete range of stable, economic fruit and vegetable juice color blends for customers seeking an out-of-the-box shade solution,” Greaves says. “The micro-emulsions offer a range of clear, stable yellow to red-orange shades.” The company also recently introduced a micronized curcumin extract. It offers a stable shade that is similar to yellow 5 with some opacity, he says. “Micronizing greatly improves the stability of the curcumin,” Greaves adds. “It also reduces the cost in use, which is important as curcumin prices are up several hundred percent.” Although working with naturally derived colors can present some technical challenges, suppliers recognize how far the market and technology has come. “I think the technology involved with producing the natural colors, for example emulsions, has come a long way in the last several years,” D.D. Williamson’s Armao says. “There’s new technology being employed with making emulsion colors and there’s improved efficiencies with extraction techniques.” Armao adds that yields related to crops and other agricultural issues can result in more consistent products. That, coupled with the technology used to produce colors, has helped improve the functionality and performance of different colors. “A perfect example in beverages would be emulsion colors. You can take beta carotene, which is oil soluble, and make it water soluble using emulsion technology,” he says. “Even going beyond that, emulsions can be made clear or cloudy. So if you’re putting a yellow color into a beverage, instead of it looking cloudy like juice, now you can have something more clear, which when continued on page 52

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you think about the enhanced water category, it kind of fits; you want the water to be colored, yet still be clear and not have a cloudy appearance.” The advancement of these

technologies has helped more companies deliver products to their customers. “We’ve developed some clear and cloudy color emulsions that allow for broader shades of colors

in various beverages due to the enhanced stability of those products, making them more suitable across a wide range of product categories,” Wild’s Ford says.

Another area that can affect the long-term stability of naturally derived colors is the absence of preservatives, and ingredient supplier companies continue to seek ways to address those concerns. “Eliminating preservatives from natural color systems significantly reduces shelf life,” says Steve Morris, commercial director with Sensient. “With our new aseptic packaging system, we are able to offer customers preservative-free natural colors that have a shelf life comparable to a preserved color.” In addition to stability, technology also has helped companies make improvements to taste. For example, Sethness has seen advancements with its caramel color offerings. “We’ve actually produced some Class 1 [caramel colors] that have a very, very mild taste,” says Sethness’ Tuescher. “Typically, Class 1s have a very strong [taste]; they’re commonly used in whiskey. … But a lot of products when you go from a Class 4 or a Class 3 to a Class 1, you increase the amount of caramel color required and the taste becomes more of a factor … We have some Class 1s that do very well in high salt concentrations and have some Class 1s that do very well in organic acids.” D.D. Williamson also has seen a sudden surge in demand for its flavored Caramelized Sugar 830 and Caramelized Apple 810, which launched a couple of years ago. The natural flavors provide incidental coloring, Barnum says. The Caramelized Sugar offers a characteristic flavor of burnt sugar and is stable in phosphoric acid, citric acid, up to 60 percent alcohol and 15 percent salt applications, he adds. The company’s Caramelized Apple flavor, which can be used in ciders and other apple drinks, enables the beverage to state “100 percent apple” on a product display panel. This is important for beverage companies, he says. The ingredient also can be labeled as “caramelized apple juice concentrate” or “natural flavor,” the company says.

ON THE HORIZON With more and more beverage-makers exploring the use of natural colors combined with ingredient suppliers’ technical strides and formulation with more varieties of fruits and vegetables, the market for naturally derived colors looks poised to continue its growth. continued on page 54

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Natural Colors

®

The Bold Difference in Your Brand Characterized by vibrant custom color solutions, Sensient® natural colors define and protect beverage brands. By uniting advanced science and creativity with global capabilities, Sensient helps customers produce reliable, preservative-free products with clean labels, safe and secure ingredients, and consistently stable color.

Define your brand with superior natural color. Visit sensientfoodcolors.com.

U.S.A.

CANADA

BRASIL

MEXICO & LATIN AMERICA

Sensient Colors LLC 2515 N. Jefferson St. Louis, Missouri 63106 800-325-8110 [email protected]

Sensient Colors Canada Ltda 30 River Street Kingston, ON K7L 4X6 800-267-7884 [email protected]

Sensient Technologies Brasil Ltda Avenida Benedito Quina da Silva, 545 Pólo Industrial Multivias 13212-141 Jundiaí SP Brasil 55-11-4622-8282 [email protected]

Sensient Colors S.A. de C.V. Rodolfo Patron Num 12 Parque Industrial Lerma Lerma, Edo. De Mexico, C.P. 52000, Apartado Postal 17, Mexico 52-728-285-0569 [email protected]

©2011 Sensient Colors LLC, all rights reserved. The FUSION PRECISE NATURAL COLORS trademark is owned and registered by Sensient Colors LLC. The SENSIENT trademark and the Sensient Technologies Corporation logo are owned and registered by Sensient Technologies Corporation. All rights in trademarks are reserved.

Safe an d Sec u re In g re d ie n t s

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GNT’s Hake notes the increase in color variety recently, “I think with the last five years, you see that if you go through the aisles throughout the world, you’ll see more and more [that] it’s not a niche market. It’s not where just some small players are picking out alternative [colors] for beverages, but you’ll also see some of the biggest beveragemakers around the world incorporating natural colors.” Hake anticipates in the future to see more color varieties emerge with the help of research to find more varieties of fruits and vegetables that can provide new color hues, shades and improve stability. Food Ingredient Solutions’ Greaves anticipates the main innovations will come from improved fruit and vegetable juice colors and improved emulsions, but he also hopes to see more options emerge. “Another pending breakthrough, which we hope to finally complete this year, is our petition for copper chlorophyllin — filed in 2006 — a natural green color,” he says. “This will allow us to not only offer greens, but In some cases, natural colors can offer a performance advantage modify a wide range of other compared to synthetic colors, says Food Ingredient Solutions President Jeff natural color blends.” BI Greaves.

R & D NEWS D.D. Williamson, Louisville, Ky., launched a new brand image to reflect its expanded expertise in color solutions for customers. In the new logo, “DDW” replaces “D.D. Williamson” for a concise, contemporary image, the company says. “The Color House” tagline expresses a place where creativity blends with advanced technical capability to bring color ideas to life, it adds. The company also announced its annual Natural Coloring Competition for Students to encourage learning about naturally derived coloring. Two winners will receive a trip to the 2012 IFT Annual Meeting in Las Vegas and display their project poster in the D.D. Williamson booth at the IFT Food Expo. Abstract submissions are due Nov. 14 and winners will be announced by April 15. Bioenergy Life Science Inc., Minneapolis, announced Bryan Clay, Olympic gold medalist and World Champion decathlete, and Laura and Greg Bennett have been named ambassadors for the company’s patented D-ribose ingredient Bioenergy Ribose. At Brau Beviale in Nuremberg, Döehler, Darmstadt, Germany, addressed smart category evolution through new calorie-reduction technologies, tea concepts with premium tea infusions, lemonades with authentic flavor profiles, innovative fermented beverages, innovative malt beverage concepts and many more product applications. Wild Flavors GmbH, Züg, Switzerland, announced the acquisition of certain assets of the A.M. Todd Group Inc., a provider of mint flavors and ingredients based in Kalamazoo, Mich. Synergy Flavors, Wauconda, Ill., announced its acquisitions of natural essence and extract manufacturer Sensus LLC, Hamilton, Ohio, as well as flavor producer Sethness Greenleaf, Chicago.

CREATOR’S BRIEFS INGREDIENT TECHNOLOGIES Glanbia Nutritionals – Ingredient Technologies offers a comprehensive range of innovative dairy, whey protein, whey peptide and flax ingredient solutions. Specialized whey proteins offer fortification and processing benefits, the company says. Novel whey peptides provide targeted health benefits and unique market positioning, it says. BevGrad flaxseed ingredients offer ALA omega-3 fortification without graininess or textural issues, according to the company. TruCal natural milk mineral complex provides an optimal source of dairy calcium and minerals for bone health, Glanbia says. Through its expertise with proteins and other ingredients, Glanbia also can develop successful fortified beverages for customers, from concept to formulation to identifying and working with processors and packaging companies, it says. QGlanbia Nutritionals, 5951 McKee Road, Suite 201, Fitchburg, Wis. 53719; 608/316-8521; glanbianutritionals.com.

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CREATOR’S BRIEFS NEXT-GENERATION ANTIOXIDANT NutraGenesis reformulated its Wellberry ingredient, which is a patent-pending, generally recognized as safe-affirmed functional superfruit ingredient. The new Wellberry ingredient combines superior, proprietary forms of two antioxidants: a multi-patented extract of Indian gooseberry and a new highly effective form of vitamin C called Transport C-Plus, which contains a blend of buffered vitamin C and alpha lipoic acid. Wellberry now features high antioxidant levels as well as scientifically validated human health benefits and substantiated structure and function claims in the following categories: antioxidant, anti-aging, immune support and cellular protection, according to the company. The new Wellberry ingredient has an oxygen radical absorbance capacity value that is more than twice the level of ascorbic acid and other standard vitamin C ingredients, the company says. QNutraGenesis LLC, 167 Main St., No. 208, Brattleboro, Vt. 05301; 802/257-5345; nutragenesis.com.

TEA EXTRACTS OFFERINGS Autocrat LLC announced that they now offer

premium tea extracts in an effort to help customers increase share in the rapidly growing tea market. As the trend toward healthy lifestyles continues to drive consumer products, Autocrat has positioned itself to provide customers with four distinct blends of green and black teas: Autocrat Premium Black Tea Extract, Green Tea Extract, Black and Green Tea Extract, and Black Tea Extract. Each tea extract can be used in ready-to-drink beverages, smoothies and various other food, beverage, health and beauty applications. QAutocrat LLC, 10 Blackstone Valley Place, Lincoln, R.I. 02865; 401/333-3300; autocrat.com.

STEVIA SOLUTIONS GLG Life Tech Corp.’s newly formed subsidiary AN0C Stevia Solutions launched a new zerocalorie product line, AN0C Dream Sweetener, which is based on GLG’s BlendSure products. AN0C Stevia Solutions focuses on providing naturally sweetened zero- and reduced-calorie food and beverage formulations outside of mainland China, where it markets products under the AN0C brand name. The AN0C Dream

Sweetener line includes AN0C Dream Sweetener x10, x30, x60 and x100 varieties, which reflect the product’s relative sweetness to sugar. The AN0C Dream Sweetener product series is made with different formulations of GLG’s BlendSure and other natural components, the company says. The company describes the sweeteners’ taste as similar to cane sugar with the benefits of not having an aftertaste, providing a consistent sweetness for easier formulation, availability in a light powder form for easier handling, ability to reduce time to market for formulation and comparability to the cost of cane sugar. The all-natural products used with BlendSure to create AN0C Dream Sweetener products have all been previously certified under the U.S. Food & Drug Administration’s generally recognized as safe process, the company says. The company has filed a patent application for the series in China with the intention of filing an international application for patent protection, it says. QGLG Life Tech Corp., Suite 2168, 1050 W. Pender St., Vancouver, B.C., Canada V6E 3S7; 607/669-2602; glglifetech.com.

Color as natural as you can get! To create EXBERRY® concentrates we went back to nature, using the pure and natural colours that only fruits and vegetables provide. Supplied in a wide range of vibrant shades and with excellent stability, EXBERRY® coloring foods offer the quality and clean label declaration demanded by your customers.

True Natural Color – as nature intended www.gnt-group.com

GNT USA, Inc.

660 White Plains Road Tarrytown, NY 10591 USA

+1 914 524-0600 [email protected]

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Ingredient Spotlight

Searching for the next superfruit star Will cherry be the next fruit to rise to the top?

IN RECENT YEARS, CONSUMERS HAVE EMBRACED SUPERFRUITS, SUCH AS pomegranate, acai, blueberry and cranberry, for their antioxidant content. However, certain cherry varietals also rank alongside the more renowned superfruits in terms of antioxidant content. Although the fruit has long been favored as a pie filling and ice cream sundae topper, cherry is still establishing itself as a beverage ingredient, but suppliers say that’s ripe for a change. An already popular fruit and fruit flavor, Greg Kaiser, president of Encore Fruit Marketing, Bellingham, Wash., says cherry benefits from being easily recognized by consumers. “The exotic fruits seem to be on the wane in the beverage market, and consumers are usually receptive to new products that are based around a familiar longterm fruit flavor, like cherry,” Kaiser says.

RISING PROFILE The Cherry Marketing Institute (CMI), Lansing, Mich., has been promoting the use of tart cherries

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in dried, frozen and juice forms, explains Jeff Manning, the institute’s chief marketing officer. In the campaign, CMI positioned tart cherries similar to a consumer brand. The institute highlights that tart cherries have been touted as an “it” ingredient by Everyday with Rachael Ray, Good Housekeeping and The Food Network Magazine. Although tart cherry juice is available year-round, CMI reports the ingredient is underdeveloped relative to more mature segments like cranberry and pomegranate juice. In the last year, the institute has worked to increase the awareness and preference

By Jennifer Zegler

Image courtesy of the Cherry Marketing Institute.

for tart cherry juice to unprecedented levels, Manning says. The institute’s proprietary research indicated that the greatest potential for cherry juice is in superfruit juices and smoothie blends, Manning says. Tart cherry juice will add color, a unique flavor profile and antioxidants to a juice or juice drink, Manning explains. He adds that the juice blends well with milder juices, such as apple and pear. “No other juice blends so perfectly, adding color and taste without overpowering the end product,” Manning says. “In fact, three-quarters of the best-selling new foods and beverages introduced in 2010 to 2011 claimed a new/unique flavor or recipe; 39 percent a distinctive new flavor, up to 24 percent over the previous 10 year average, making tart cherries — with their unique sweettart flavor profile — the new ‘sweet spot’ in beverage innovation.” Jim Bryant, vice president of the ingredients division for Cherry Central Cooperative, Traverse City, Mich., credits CMI for its efforts with helping to raise the profile of tart cherries, also known as Montmorency variety cherries.

RIPE FOR APPLICATIONS Cherry Central has received increased requests for new formats of cherries for food ingredients, Bryant says. Requests have expanded beyond the sweetened cherry ingredients popular for dessertmakers, he says, and for beveragemakers, Cherry Central offers tart cherry concentrate and tart cherry puree. Bryant adds that some formulators are using the company’s dried cherries in

beverages, clarifying that he’s not sure how. In addition, the company also provides custom ingredients. “There’s probably not a week that goes by that we don’t see a request for cherries in a slightly different format than what we’re doing now,” Bryant says. “Some of that can be easily remedied and some of it takes a little time and money, but all in all the industry is willing to spend the time and money to get there.” The company works with beveragemakers to create an ingredient suitable for a specific application, Bryant says. “Companies will have their R&D people out looking for cherries and they come to us and maybe they don’t want just the standard concentrate, the standard puree or dried cherries, they want that product, if you will, tweaked a little bit for their particular application,” he explains. “That’s where we get involved, trying to process something that makes sense for them and their application.” Cherry supplier, Encore Fruit Marketing offers dark sweet cherry juice concentrates, which are made from the familiar fresh market sweet cherries, and red sour pie cherry juice concentrate that is derived from pie-type sour cherries, Kaiser says. The company can offer customers example formulas to use in the development of proprietary cherry juice-based beverages or arrange custom development of a blended cherry beverage that is ready for bottling, he says. Tree Top Inc., Selah, Wash., offers dark sweet cherry juice concentrate, red sour cherry puree, concentrated red sour cherry puree and frozen cherries. In addition, Tree Top’s wholly owned subsidiary, Northwest Naturals, offers dark sweet cherry and red sour cherry juice concentrates that are processed from the raw fruit to retain the character of the whole fruit, it says. Northwest Naturals also offers cherry concentrates formulated with other natural flavors to match the characteristics of 100 percent singleingredient fruit juice or to provide a value-added solution. Its portfolio also includes U.S. Department of Agriculturecertified organic dark sweet cherry and organic red sour cherry concentrates as well as juice ingredients that blend organic fruit juices and organic or natural flavors to customer specifications. The company also has the capability to create specialty bases for dairy and smoothie applications in both standard and custom formulations, it says. BI

Puzzled about color selection?

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2012 truck roundup Latest models designed for power, green options

COMPLETED ANNUALLY, BEVERAGE INDUSTRY’S MEDIUM- AND HEAVY-DUTY truck roundup, which consists of Classes 4 through 8, is a compilation of vehicle offerings suited to beverage industry applications. Highlighted as follows is an overview of model year 2012 trucks and selected vehicle specifications.

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FORD COMMERCIAL TRUCKS

Ford F650 Crew Cab

Ford has three medium-duty conventional truck models for beverage applications: the F-650 Pro Loader with a gross vehicle weight rating (gvwr) of 26,000 pounds; the F-650 Straight Frame with a gvwr of 29,000 pounds; and the F-750 with a 37,000-pound gvwr. All three models are available in three factory-built cabs: Regular Cab, Crew Cab and SuperCab, which is the only four-door extended cab configuration in the segment, the company says. All come with a host of standard and optional upgrades for enhanced flexibility, comfort and utility. The F-650s and F-750s share the same standard engine: an inline six-cylinder Cummins 6.7-liter ISB intercooled and turbocharged diesel with ratings from 200 to 360 horsepower (hp). Allison six-speed automatic overdrive transmissions are standard. Allison, Eaton Fuller and Spicer six- and seven-speed manuals are optional. New for 2012, the F-650 is available with a 6.8-liter Ford V-10 gasoline engine that’s rated at 362 hp and 457 pound-feet of torque. It’s paired with Ford’s all-new 6R140 six-speed automatic transmission with double overdrive gears and available power takeoff. Website: ford.com/commercial-trucks

in combination with the hybrid electric motor. This motor provides additional power to launch the vehicle and improves fuel economy in heavy stop-and-go operations. The hybrid electric system recovers the energy normally lost during braking and stores that energy in the system’s batteries. The M2 112 is a higher capacity vehicle that can be specified to handle gross vehicle weight ratings of up to 80,000 pounds. It is available with the Detroit Diesel DD13 diesel engine in hp ratings from 350 to 450, and with Cummins ISC and ISL engines. Transmission options also include manual and automated manuals from Eaton Fuller and Allison automatic transmissions. The M2 112 model also can be specified to use natural gas. Available with liquefied natural gas (LNG) or compressed natural gas (CNG) fuel tanks, the natural gas-powered trucks and tractors are designed for high performance in a broad range of applications. The M2 112 Natural Gas features the Cummins Westport ISL G 8.9-liter natural gas engine with ratings up to 320 hp and 1,000 pound-feet of torque.

David Kolman is a veteran truck communicator, keynote speaker and long-haul trucker. Commissioned as an honorary colonel on the Kentucky governor’s staff for his work promoting traffic safety, he actively participates in trade associations and reports news and information about the trucking industry for broadcast and print media.

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Freightliner’s Business Class M2 models come in 106- and 112-inch bumper-to-back-of-cab (BBC) platforms, in both truck and tractor configurations. Cab choices are: day cab, 26-inch extended cab and 48-inch crew cab. The M2 106 features up to a 55-degree wheelcut, set-back front axle and swept-back bumper for excellent maneuverability in tight urban situations. With a gvwr of up to 60,000 pounds, the M2 106 has a Cummins ISB or ISC diesel engine with ratings from 200 to 350 hp. Manual and automated transmissions from Eaton Fuller, Allison automatic transmissions and Freightliner’s AMT3 fully automated manual transmission, featuring SmartShift “shift-by-wire” technology, are offered. The M2 lineup also includes the M2 106 Hybrid, which features the Eaton Hybrid Electric Drivetrain System that operates using the diesel engine alone or

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

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FREIGHTLINER TRUCKS

Freightliner Business Class M2

The Freightliner Cascadia is the company’s aerodynamic tractor offering, available as a day cab for urban deliveries and regional haul as well as in sleeper configurations. The Cascadia features the Detroit Diesel DD13 in ratings up to 470 hp and 1,650 pound-feet of torque. The Detroit Diesel DD15 and DD16 or the Cummins ISX 15, in ratings up to 600 hp, also are available. Transmission selections include Eaton Fuller 10-, 13- and 18-speed manuals and the Eaton Fuller UltraShift Plus and Eaton Fuller

Hino 338 CT

HINO TRUCKS Hino offers two diesel cabover models covering Classes 4 and 5. In early 2012, Hino will add dieselelectric hybrid models to its Class 4 and 5 cabover lineup, the company says. The Hino 155 is a Class 4 cabover model with a gvwr of 14,500 pounds. It comes standard with Hino’s inline four-cylinder J08E-TP diesel engine, rated at 210 hp, and an Aisin six-speed automatic transmission. Size wise, next in the manufacturer’s lineup is the Hino 195, also a cabover model. It has a 19,500-pound gvwr. This Class 5 model has the same standard powertrain as the Hino 155. Hino offers several Class 6 and 7 models, all of which are conventional models. This lineup begins with the 23,000-pound gvwr Hino 238. The standard engine is Hino’s inline six-cylinder 220-hp J08E-VC diesel. The standard transmission is an Allison six-speed automatic. Next are the Hino 258ALP (air brake low profile) and Hino 258LP (low profile) models. Both have a 25,550-pound gvwr and the same standard engine and transmission as the Hino 238. The Hino 268 and 268A (air brake) models top the company’s Class 6 offerings at 25,950 pounds gvwr. They, too, are powered by a 220-hp Hino diesel engine and six-speed Allison automatic transmission. The conventional Class 7 model Hino 7 338 and Hino 338 CT (city tractor) are the highest load capacity models. The 338’s gvwr is 33,000 pounds. The 338 CT has a combination gvwr of 48,000 pounds. These trucks come standard with Hino’s J08E-VB 260hp diesel engine and an Allison six-speed automatic. For improved performance, Hino increased engine torque by 12 percent to 660 pound-feet on the J08E-VB engine. Website: hino.com

ISUZU COMMERCIAL TRUCK OF AMERICA Isuzu Commercial Truck of America (ICTA) offers a lineup of Class 4 through 6 N-Series low-cab-forward (LCF) tilt-cab trucks. The lineup begins with the 14,500-pound gvwr NPR-HD. The standard engine is the Isuzu 4HK1-TC turbocharged intercooled diesel engine with 215 hp and 452 pound-feet of torque. An Aisin A465 six-speed double overdrive automatic transmission with lockup, torque convertor and PTO opening is standard. Manual transmission

is optional. The NPR-HD also is available with a 297-hp V8 Vortec 6000 gasoline engine. This model has a 6L90-E Hydra-Matic six-speed automatic transmission with double overdrive. Isuzu’s gas N-Series is the only gas-powered LCF in the U.S. market. The Vortec gasoline engine is available with a CNG or LPG alternative fuel capable option. The company’s Class 5 offering is its NQR with a 17,950-pound gvwr. The 19,500-pound gvwr NRR is the Class 6 model. Both of these vehicles have the same standard powertrain and options as the NPR-HD. Isuzu’s cab/chassis combinations offer standard three-seat cabs or crew cabs with seating for a sevenperson crew. Isuzu’s “class-leading” diesel engines provide B-10 service life durability of 310,000 miles, according to the company. All diesel engines have better fuel efficiency than previous generation models, employ clean diesel technology and are B-20 Bio-Diesel compatible. Exclusive to Isuzu diesel-powered models is the Isuzu Diagnostic Service System (IDSS). It allows truck owners to receive a detailed health report from Isuzu dealers about vehicle performance data. New for the 2012 model year is the Reach — a new-concept walk-in, walk-through commercial van. The body, designed and built by Utilimaster, sits on an Isuzu chassis and has a gvwr of 12,000 pounds. The Reach gets its power from an Isuzu 4JJ1-TC diesel turbocharged intercooled diesel engine with 150 hp and 282 pound-feet of torque, backed to an Aisin A460 double overdrive six-speed automatic transmission with lockup. Website: isuzucv.com

Isuzu NRR

KENWORTH TRUCK CO. Kenworth’s line of conventional trucks for beverage applications begins with the Class 5 T170. It comes standard with a Paccar PX-6 6.7-liter diesel engine. An Eaton Fuller six-speed manual or Allison five-speed automatic are the transmission selections. Next is the T270, a Class 6 model. There is the choice of a Paccar PX-6 or an 8.3-liter Paccar PX-8 diesel engine and Eaton Fuller six-, nine- and 10-speed manual; Eaton Fuller six-speed UltraShift; and Allison five- and sixspeed automatic transmissions. Ratings for the Paccar PX-6 are 200 to 325 hp. The PX-8 engine has hp ratings of 260 to 350. The Class 7 T370, which is available in both truck and tractor configurations, has the same engine and transmission offerings as the T270. Both the T270 and T370 are offered in a diesel-electric hybrid version powered by the Paccar PX-6 engine and include an integral transmission-mounted motor/ generator, frame-mounted battery pack and dedicated power management system that creates a unique fuel-efficient system. In slower stop-and-go traffic, the parallel hybrid power system, developed in partnership with Eaton, acts as an electric motor utilizing power from the battery pack. The system automatically switches between the two modes of operation. In truck, tractor and extended cab versions, the Class 7 and 8 Kenworth T440 has engine choices of the Paccar PX-8 and Cummins diesels. These can be mated to Eaton Fuller six-, nine-, 10-, 11- and 13-speed manual or Allison five- and six-speed automatic transmissions.

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AutoShift. Allison 3000 and 4000 Series automatic transmissions can be ordered as well. Website: freightlinertrucks.com

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By David A. Kolman

Kenworth T370

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485. Transmission options are Mack mDRIVE 12-speed automated manual transmissions; Mack six-, nine-, 10-, 13- and 18-speed manuals; Allison five- and six-speed automatics; and Eaton Fuller nine-, 10-, 13-, 15- and 18-speed manuals. Engine choices for the Pinnacle axle-backs are the Mack MP7 in 325 to 395 hp ratings, or the Mack MP8 from 425 to 485 hp. Mack mDRIVE 12-speed automated manual transmissions; Mack six-, nine-, 10-, 13- and 18-speed manuals; Allison five- and six-speed automatics; Eaton Fuller nine-, 10-, 13-, 15- and 18-speed manuals; and Eaton Fuller 10and 18-speed AutoShifts and UltraShifts are the transmission offerings. Mack Trucks offers special components for Pinnacle Axle Back Sleepers as part of the EPA’s SmartWay Transport Partnership. Proven to reduce fuel consumption and lower emissions of greenhouse gases, Pinnacle tractors built with the following components can be designated as certified SmartWay tractors: full-roof fairings and side shields, cab side extenders, aerodynamic front bumpers, aerodynamic exterior mirrors, chassis fairings, low-rolling resistance tires and idle-free or “key-off” HVAC systems. Website: macktrucks.com

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The T440 also is available in LNG and CNG models with a Cummins Westport ISL G engine. The T660 is an aerodynamic, U.S. Environmental Protection Agency (EPA) SmartWay program designated Class 8 model that comes in day cab, extended cab and sleeper cab models. SmartWay designation recognizes technologies that provide fuel saving and/or emission reduction benefits. The 12.9-liter Paccar MX diesel engine, in ratings of 380 to 485 hp, and the Cummins ISX15 and ISX11.9 diesels are the engine choices for the T660. Available transmissions are Eaton Fuller nine-, 10-, 13-, 15- and 18-speed manuals; Eaton Fuller 10-, 13- and 18-speed AutoShifts; and Eaton Fuller 10-, 13- and 18-speed UltraShifts. Kenworth’s aerodynamic wide-cab T700 is another Class 8 model. It also has earned EPA SmartWay program designation. This tractor comes with a choice of the Paccar MX and Cummins ISX15 engines and the same transmission offerings as the T660. The T800 is Kenworth’s Class 8 workhorse vehicle, available in day cab, extended day cab and sleeper cab versions. It offers the Paccar MX and Cummins ISX15 and ISX11.9 engines. Transmissions include Eaton Fuller manual nine-, 10-, 11-, 13-, 15- and 18-speeds; Eaton Fuller Auto Shift 10- and 18-speeds; and UltraShift PLUS 10-, 11-, 13- and 18-speeds. The W900 is Kenworth’s Class 8 traditional tractor, available in day cab and sleeper cab versions. Transmission offerings are Eaton Fuller nine-, 10-, 11-, 13-, 15- and 18-speed manuals; Eaton Fuller 10- and 18-speed AutoShifts; and Eaton Fuller 10-, 11-, 13- and 18-speed UltraShifts. Available engines are the Paccar MX and Cummins ISX15 diesels. Website: kenworth.com

Mitsubishi Fuso Canter FE160

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MITSUBISHI FUSO TRUCK OF AMERICA

Mack Pinnacle day cab

MACK TRUCKS Mack Trucks said the most appropriate model for beverage industry applications is its Pinnacle Series of aerodynamic conventional highway tractors. Well-suited to line-haul as well as pick and delivery operations, these tractors come in single and tandem axle in addition to axle-back or axle-forward configurations. The series is available in day cab and sleeper cab versions. Sleepers are available in 48-inch and 56-inch flat-top, 60-inch and 70-inch mid-rise or 70-inch high-rise models with the option of removing the sleeper box on the sleeper cab models. The Pinnacle axle-forward tractors are powered by a Mack MP8 diesel engine with hp ratings from 425 to

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Earlier this year, Mitsubishi Fuso Truck of America (MFTA) introduced its new line of cabover Canter FE and FG Series trucks for 2012. This is the most extensive redesign the company has undertaken in seven years, it said. Bringing the name Canter to the North American models for the first time, MFTA is applying its long-standing global branding to the trucks sold in North America. The entire 2012 model lineup has enhancements and upgrades to provide robust performance while delivering enhanced fuel economy. These include an advanced powertrain; refined frame that makes body attachment easier while increasing available payload; improved handling, durability, comfort and aesthetics; and extended service intervals of 18,000 miles. The Canter FE160 is a Class 4 model with a gvwr of 15,995 pounds. It has a standard four-cylinder fourstroke cycle water-cooled turbocharged intercooled 161-hp 3-liter DOHC diesel engine combined with a Mitsubishi Fuso Duonic six-speed overdrive transmission. The Duonic transmission is a dualwet-clutch automated manual, which is the only one

Navistar produces International brand medium- and heavy-duty commercial trucks. With its MaxxForce diesel engines, it is the only heavy-duty truck company to offer an exhaust gas recirculation (EGR) solution for EPA 2010 diesels. All others have gone with selective catalytic reduction (SCR) technology in addition to their EGR systems. Navistar’s medium-duty models include the Class 4/5 International TerraStar and the Class 6/7 International DuraStar. The TerraStar comes standard with a 300 hp MaxxForce and an Allison five-speed automatic. Navistar said the TerraStar features 80,000 psi frame rails that rank best-in-class; has the largest cab in its class with 30 percent more room than its leading competitor; and best-in-class visibility at 38 percent better than the leading competitor. The DuraStar is available with MaxxForce 7, MaxxForce 9 and MaxxForce DT diesel engines, with a wide range of hp options. Transmission selections include Eaton-Fuller five-, six- and 10-speed manuals; TTC six-plus manual; Eaton UltraShift five- and sixspeed automated manuals; Allison 1000, 2000 and 3000 Series (HS, EVS, RDS) automatics; and Allison 3000 TRV Series automatics. The DuraStar also is offered in a hybrid model that uses a diesel hybrid electric system. The key to this powertrain’s efficiency is the Hybrid Drive Unit (HDU). While braking, torque passing through the transmission turns the generator in the HDU to recharge the battery. Then, when pulling away, the truck uses the torque created by the electric motor to get the vehicle moving. Once up to speed, the MaxxForce DT engine, in ratings of 215 to 260 hp, takes over. Navistar’s heavy-duty (Class 8) conventional tractors suited to the beverage industry include the International TranStar and International ProStar+. The International TranStar has “superior handling and maneuverability” due to its set-back axle and 50-degree wheel cut. It comes in single- and tandem-axle day cab versions and offers “the shortest BBC in the industry at 107 inches for a tight turning radius up to 12 feet better than any tractor in its class. Plus, the truck’s panoramic front windshield and dramatically sloped hood offer a commanding view of the road that all but eliminates blind spots,” according to the company. The model is powered by the big bore MaxxForce 11, with up to 390 hp and 1,450 pound-feet of torque, or the MaxxForce 13, with up to 430 hp and 1,700 poundfeet of torque. Transmission selections include EatonFuller seven-, 10- and 13-speed manuals; Eaton-Fuller UltraShift Plus 10- and 13-speed automated manuals; and Allison 4000 Series (HS) automatics. International’s ProStar+ also is an aerodynamic

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NAVISTAR

tractor that comes as a day cab or sleeper cab. It has earned EPA SmartWay program certification. The ProStar+ features a widetrack front axle for a tighter turning radius and better maneuverability, making it easier to negotiate city streets and loading docks, the company said. The ProStar+ is available with the MaxxForce 11, up to 390 hp and 1,450 pound-feet of torque; MaxxForce 13, up to 475 hp and 1,700 pound-feet of torque; or MaxxForce 15, up Navistar TranStar to 500 hp and 1,850 pound-feet of torque, big bore engines. Eaton Fuller nine-, 10-, 13-, 15- and 18-speed manuals; Eaton Fuller 10- and 18-speed AutoShifts; and Eaton Fuller UltraShift PLUS 10-, 13- and 18-speed automated manuals are the available transmissions. Website: internationaltrucks.com

PETERBILT MOTORS CO. The Peterbilt Model 210 is a cabover Class 6 straight truck with a gvwr of 26,000 pounds. It comes standard with a 220-hp Paccar PX-6 engine and an Allison automatic transmission. Also a cabover is the Model 220, which is available in Class 6 and 7 truck configurations. It, too, comes standard with a 220-hp PX-6 and an Allison automatic. The Class 5 Model 325 is a conventional truck powered by a PX-6 from 200 to 300 hp. An Eaton Fuller six-speed manual transmission is standard. An Allison five- or six-speed automatic is optional. The Peterbilt Model 330 is a Class 6 conventional truck that can be configured for non-commercial driver’s license operation. It has a PX-6 diesel in hp ratings from 200 to 325 and the choice of a Fuller six-speed manual, Fuller UltraShift Plus HV Series six-speed or Allison four-, five- or six-speed automatic transmissions. The Model 330 also is available in a hybrid electric (HE) version that uses the Eaton parallel hybrid system with an electric motor that assists the diesel engine with supplemental torque for improved fuel economy. The system stores energy during stopping through a process called regenerative braking and then reuses it to launch and accelerate the vehicle. The Class 6/7 Model 337 comes in truck and tractor configurations as well. Engine options are the PX-6 diesel from 200 to 325 hp or the Paccar PX-8 from 260 to 380 hp. For Peterbilt 330 >>

available in a medium-duty commercial truck, the company says. The FE160 also is available in seven passenger crew cab version, the Canter FE160CC. At 17,995 gvwr, the FE180’s payload capacity is the largest in the Canter lineup. This truck model has the same powertrain as the FE160. Last year, MFTA announced it will concentrate on Class 3 to 5 vehicles and is discontinuing its heavierduty FK and FM models. Website: mitfuso.com

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ADVERTORIAL

TRUCKS KEY TO BEVERAGE INDUSTRY OPERATIONAL EFFICIENCY Improvements in design and engine technology offer ñeet savings Gregory Treinen, Product Segment Manager Alternative Fuels, Freightliner Trucks Beverage fleets are consistently working to make their operations more efficient. In the past, the typical beverage delivery truck was a drop frame chassis with a side load body. However, drop frame beverage trucks are limited in the amount of product they can carry, which means more time is spent loading and unloading. These days, beverage fleets increasingly are utilizing tractor-trailer combinations for daily delivery routes to boost the amount of product that can be delivered.

Selective Catalytic Reduction (SCR), the technology offered by most truck manufacturers to meet 2010 EPA standards, offers advantages for beverage distributors that includes improved fuel economy, and also a reduced number of diesel particulate filter regenerations. Fewer regens results in less time spent parked, and more time delivering product, as well as less fuel burned. Nathan Gaunt, fleet supervisor for Coca-Cola Refreshments in Atlanta Ga., has several new trucks in his delivery fleet with SCR technology. He acknowledges that there was some concern about the technology when it first came out. Nobody knew what it was or where they’d get the diesel exhaust fluid (DEF) needed, how expensive it would be or how much fluid they’d use. “Today, it’s not even an issue,” says Gaunt. “Filling the DEF tank is comparable to refilling windshield washer fluid. Most DEF tanks hold seven gallons; most of our diesel tanks hold about 50 gallons. We typically fill the DEF tank once for every five to seven tanks of diesel.” An outside vendor refills both diesel and DEF for the fleet Gaunt supervises. Like others in the industry, Coca-Cola Refreshments is using more day cab tractors, rather than drop frame beverage trucks, to increase its fuel and operational efficiency. In this business a truck is a tool, more than it is transportation. Adding SCR engine technology to the fleet translates into even more efficiency, minimizing fuel consumption and downtime.

Adding a few hybrids to a fleet helps managers learn how and where the vehicles work best and what the differences are in maintenance. Later, the fleet is more prepared and knowledgeable when additional units are needed.

Natural Gas While natural gas-powered trucks – equipped with either compressed natural gas (CNG) or liquefied natural gas (LNG) – are gaining popularity in other markets such as port drayage, refuse, regional haul and municipal applications, the beverage market has been much slower to put this technology to use. Initially it’s more expensive, but fuel costs in many cases are significantly less than diesel. As diesel prices continue to spike upward and natural gas fueling stations become more available, I think we’ll see more interest in CNG and LNG. Even without government incentives, there is a business case for natural gas. Pickup and Delivery Light and Medium Truck 8.125 x 10.875 8.375x11.125

Selective Catalytic Reduction (SCR)

Earlier this year Gaunt added eight Freightliner M2 106 Hybrids with SCR to his fleet as part of a corporate initiative to reduce the company’s carbon footprint, particularly in large urban markets. Coca-Cola puts only about 75 miles a day, 20,000 miles a year, on these trucks. The trucks travel 40 to 50 miles from the Atlanta production facility to local customers, then return to pick up another trailer that’s loaded and ready to go. Gaunt estimates that the hybrid day cab tractors have increased fuel efficiency by about 30 percent.

It’s also the cleanest-burning fuel available, and, since natural gas is a domestic fuel source, dependence on foreign oil is reduced. Freightliner M2 112 Natural Gas trucks and tractors use the Cummins Westport ISL G 8.9 liter engine, a great size for the beverage industry. Rated up to 320 hp and 1000 lb ft torque, the ISL G-equipped M2 112 can be spec’d to haul loads up to 65,000 lbs GCW and, in many cases, up to 80,000 lbs with approval from Freightliner Trucks and Cummins Westport. Title: Pub: Trim Size: Bleed Size:

We can’t discuss increases in operational efficiency in beverage fleets without also recognizing the fuel-saving impact of 2010 Environmental Protection Agency (EPA)-mandated technology reducing nitrogen oxide exhaust emissions, and other engine technologies being used by beverage industry fleets. Three specific engine technologies are Selective Catalytic Reduction, Hybrid and Natural Gas, and each offers specific benefits for the end user.

Of the readily available alternative power technologies currently on the market, parallel-electric hybrid technology was the first to be adopted in notable quantities by the beverage market. The M2 106 Hybrid truck offers the same benefits as its non-hybrid cousin — including outstanding visibility and maneuverability — while providing added fuel efficiency and environmentally-friendly features of hybrid power. All of Freightliner’s hybrid products are equipped with EPA 2010-compliant engines utilizing SCR technology and the Eaton® Hybrid Electric Drivetrain System, a parallel-electric hybrid system that enables the truck to operate using the diesel engine alone, or in combination with the electric hybrid motor.

Customers choose hybrid and natural gas-fueled vocational trucks for reasons as diverse as the industry itself. David Bryant, Freightliner manager of vocational sales for hybrid and alternative fuels, sums it up. “In addition to 2010 EPA standards, some companies are taking further steps to ensure their products are brought to market in the most environmentally responsible way. Their customers appreciate that. Some are responding to corporate initiatives mandating reducing their carbon footprint. And some states, most notably California, have legislated tough statewide standards for reduced emissions. With the wide range of products available from Freightliner, our customers can choose the best technology to further their environmental stewardship and help the bottom line. Fleets are finding out that going green can pay green.” FTVOC 5442 P&D Ad_L&MT - m1.indd FL Trucks - Vocational FTVOC 5442 InDesign CS5 4cp

However, even with the increased utilization of tractor-trailer combinations, beverage fleets still want vehicles with excellent maneuverability and outstanding visibility. I recently did a ride-along with a Coca-Cola Refreshments driver in a Freightliner Business Class® M2 106 Hybrid tractor-trailer who needed to make a U-turn on a narrow city street. The M2 made the turn with no problems. No need to put it in reverse, no need to drive over a curb. That kind of maneuverability for tractor-trailers in tight urban situations makes real business sense.

Hybrid

File Name: Client: Job #: App: Colors:

With tractor-trailer combinations, distributors can preload a trailer at the plant or distribution center, put all products on a pallet – soft drinks, diet drinks, water – and shrink wrap it for each customer. The driver doesn’t have to pull the product by SKU on site. He just unloads the pallet and then it’s on to the next stop. At the end of the route, the driver heads back to the distribution center, where there’s another trailer, all loaded and ready to go. You simply cannot do that with a drop frame truck. At Freightliner Trucks, we’re seeing this change in beverage truck purchases, which previously were about 50/50 trucks to tractors, and now are about 65 tractors for every 35 trucks.

No matter what the motivation, the three new engine technologies offer fuel savings, cost savings and delivery efficiencies for the beverage industry. And reviewing and updating the kind of truck you are using for delivery, can offer real operational advantages.

A TURNING RADIUS AS TIGHT AS MOST SCHEDULES.

The Freightliner Trucks Business Class ® M2 has up to a 55-degree wheelcut, so navigating narrow city streets or tight loading zones isn't a problem. It also has a 2,500 square-inch windshield, aerodynamic sloped hood and low-profile dash for excellent visibility. Innovative cab ergonomics and a low step-in height enhance comfor t and productivity. And the steel reinforced aluminum cab maximizes payload. All of this means your drivers can deliver more product to more customers. On time. To learn more, visit FreightlinerTrucks.com/WorkSmart. Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks Dealer nearest you, call 1-800-FTL-HELP. www.freightlinertrucks.com. FTL-MC-A-1091. Specifications are subject to change without notice. Copyright © 2011. Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.

Distribution

UD TRUCKS NORTH AMERICA Formerly Nissan Diesel, UD Trucks’ lineup of cabover vehicles starts with the UD1800 rated at 17,995 pounds gvwr. Moving up to a gvwr of 19,500 pounds is the

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transmissions, the choices are Eaton Fuller six-, nine-, 10- and 11-speed manuals; Eaton Fuller UltraShift Plus HV Series six-speeds; or Allison four-, five- or six-speed automatics. Peterbilt has a number of Class 8 vehicles suited to the beverage industry, starting with the Model 382, a lightweight, aerodynamic day cab tractor intended for regional haul applications. It comes in single- and tandem-axle configurations. This tractor is powered by the Cummins ISL9 engine, in ratings from 345 to 380 hp, and has a choice of Eaton Fuller 10-, 11-, 13- or 18-speed manuals; Eaton Fuller 10-, 11-, 13- or 18-speed automated; or Allison four-, five- or six-speed automatic transmissions. The Model 384, which also is a day cab tractor, is suited for tanker, regional, pickup and delivery, and short-haul applications. It is offered with single- and tandem-drive axles and can be ordered with a detachable Unibilt sleeper. Engine choices are the Paccar MX from 380 to 485 hp; Cummins ISL9; Cummins ISX 11.9 from 310 to 425 hp; or the 320-hp Cummins ISL G natural gas engine in two platforms: CNG and LNG. The Eaton Fuller nine-, 10-, 13-, 15- and 18-speed manuals; Eaton Fuller 10-, 13- or 18-speed UltraShift Plus; and Allison four-, five- and six-speed automatics are the available transmissions. Peterbilt’s day cab Model 386 tractor, ideal for regional and pickup and delivery operations, is available in single- and tandem-drive axle versions with a detachable 36-, 48-, 63- or 70-inch sleeper. Engine selections are the Paccar MX in 380 to 485 hp, and the Cummins ISX15 in ratings from 400 to 600 hp. Transmission selections are Eaton Fuller nine-, 10-, 13-, 15- or 18-speed manuals and Eaton Fuller 10-, 13- or 18-speed UltraShift Plus. The Model 386 also comes in an LNG version. The Model 386 LNG runs on a 15-liter, 475-hp Westport GX engine that uses high pressure direct injection technology (HPDI), specialized cryogenic fuel tanks and associated electronic components to “facilitate robust performance and reliable operation.” This truck is the industry’s first EPA SmartWay designated alternative fuel vehicle, Peterbilt said. Model 388 and Model 389 are Peterbilt’s traditionally styled vehicles, but with aerodynamic enhancements. They can be ordered in single- or tandem-drive axle versions. The Model 388 can be purchased as a day cab or with detachable Unibilt sleepers. The Model 389 comes with a range of sleeper sizes. The Paccar MX and the Cummins ISX 15 are the engine choices for the Model 389. The Paccar MX, Cummins ISX 11.9 and Cummins ISX 15 are available for the Model 388. Transmission options for both tractors are Eaton Fuller nine-, 10-, 11-, 13-, 15- and 18-speed manuals and Eaton Fuller 10-, 13- and 18- speed UltraShift Plus. Website: peterbilt.com

UD Trucks North America’s UD2600

UD2000. Next up is the 23,000-pound gvwr UD2300, available in dock height and low profile versions. All four of these models come standard with a 245-hp GH7 6-liter turbocharged intercooled inline six-cylinder direct-injection diesel engine and MLS63B six-speed manual transmission. An Allison RDS five-speed automatic is an optional transmission. The UD2600 has a load capacity of 25,995 pounds gvwr and also comes in a low profile model, the UD2600LP. These models have the same standard engine and transmissions as the lower gvwr models, but also have the option for a 280-hp engine. Allison RDS five- or six-speed automatic transmissions are optional. UD Truck’s UD3300 has the heaviest payload capacity with a gvwr of 32,900 pounds. It also has the 245-hp GH7 6-liter diesel as standard, but the engine can be upgraded to a 280-hp version. Transmission selections are the same as those for the UD2600s. Website: udtrucksna.com

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Sponsored by:

Volvo VN 670

VOLVO TRUCKS Volvo Trucks offers a lineup of aerodynamic conventional tractors that fit a range of beverage applications. The VNL 300 and VNM 200 are day cab models designed for regional bulk and specialty hauling. The models can be equipped with Volvo D11, D13 or D16 engines with ratings from 325 to 550 hp and available in straight, Eco-Torque or Dual Torque rating personalities. The Cummins ISX15 Smart Torque diesel from 400 to 550 hp also may be specified. The models have a variety of available transmission options,

WESTERN STAR TRUCKS Western Star said its most appropriate trucks for beverage applications are its 4800 and 4900 models. They are available as trucks or tractors in day cab or sleeper configurations. The standard engine in the 4800 is the Detroit Diesel DD13 with hp ratings from 350 to 450. The 4900 is available with the Detroit Diesel DD13, DD15,

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including the Volvo I-Shift, a two-pedal, automated mechanical transmission; Eaton Fuller manuals, AutoShifts and UltraShifts; and Allison automatics. Volvo’s mid- and long-hood 430 models, the VNL 430 and VNM 430, are intended for regional routes that might require spending only a night or two on the road. These models can be ordered with the same engine and transmission options as the VNL 300 and VNM 200. Volvo Trucks’ VN 630 is a 61-inch mid-height roof sleeper tractor. It, too, is available with the same engine and transmission options, including the Volvo D13 Dual-Torque and Eco-Torque diesels. Next comes the VN 670, a long-hood 61-inch highroof sleeper; the VN 730, a premium 77-inch mid-roof long-hood sleeper; and the VN 780 long-hood raisedroof sleeper. Designed as a long-haul truck, the VN 780 is the flagship model of Volvo Trucks’ VN line. The VN 670, VN 730 and VN 780 each come with the same engine and transmission offerings as the VN 630. Website: volvotrucks.us.com

Western Star 4900

DD16 and Cummins ISX with hp ratings from 350 to 600 hp. Transmission choices include Eaton Fuller seven-, 10-, 11-, 13-, 15- and 18-speed manuals; Eaton Fuller AutoShifts and UltraShifts; and Allison automatics. The 4800 and 4900 are both offered in set-forward and set-back axle configurations, and are available with 34-, 40-, 54- and 68-inch sleeper lengths with ultra-low, low, high and ultra-high roof heights. The 4900 also is available with an 82-inch sleeper. Website: westernstar.com BI Find out more online

For more trucking trends and tips from David Kolman, visit bevindustry.com.

bevindustry.com | NOVEMBER 2011 | Beverage Industry |

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Operations

By Jessica Jacobsen

Filler technology hitting on all cylinders Filling machines address beverage trends, flexibility and hygiene

AS BEVERAGE-MAKERS CONTINUE TO DEVELOP NEW AND EXCITING BEVERAGES, manufacturers of filling machines also continue to develop technology and products to accommodate the industry’s new directions. Italy-based SIPA sees the importance of flexibility for beverage manufacturers. Through the years, it has advanced the technology of its products to address the demands for flexibility and fast changeover. “Flexibility is one of the key elements of the bottling lines of today and tomorrow,” the company says. Recently, SIPA released a new series of volumetric filling valves: the Isotronic SC, for carbonated product applications, and the Unitronic SC, for still product filling. “These valves, replacing versions already present in the range, show new aspects that are absolutely state-of-the-art,” the company says. “Our goal [is] to go beyond the standard quality normally requested for this type of application.” The Isotronic SC is an isobaric volumetric and electronic filling valve version and is suitable for filling liquids with or without gas into PET bottles, such as soft drinks, water and clear fruit juices, while the Unitronic SC is a gravitation volumetric and electronic filling valve version for products such as still water, juice, tea, energy drinks and milk in PET bottles. “In the development of the new generation of valves, the aim was to achieve higher quality and levels of efficiency, while maintaining key features of the previous generation: simplicity and flexibility, high performance, ease of use and maintenance, and extreme cleanliness inside the system,” the company says. However, the key features of its newest products are not the only thing SIPA sees driving the need for advancements with filling machines. “One of the major trends is to have more and more compact and integrated filling lines,” it says. “We are noticing that the market is following two main parallel directions: on the one side, extremely high-speed lines working with a single product and single size that are often realized with direct integration of the blow molder; on the other hand, [are] the rest of the lines with lower output handling many types of products and sizes.”

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PARTICLE VARIABLES

Sidel’s Veloce ISD is designed to fill beverages such as pulpy juices, flavored waters with fruit pieces, Chinese specialty drinks, aloe vera and coconut-based drinks in PET containers.

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With some beverage-makers exploring juice drinks that contain pulp as well as sizable pieces of fruit, filling machine manufacturers have developed products to address this growing trend. “The consumption of beverages including pulps or particles is becoming more and more popular and corresponds to a request for

more natural and value-added products,” said Gero Von Stackleberg, product manager for sensitive products with Sidel Group, in a statement. Swiss company Sidel addresses this need with its new Veloce ISD hot filler with integrated slurry dosing. The Veloce ISD is designed to fill beverages such as pulpy juices, flavored waters with fruit pieces, Chinese specialty drinks, aloe vera and coconut-based drinks in PET containers. It can dose particles up to 10-by-10-by-10 mm. in size and with particle quantity concentration ranges from 10 ml. to 200 ml., depending on the recipe and bottle size, the company says. The Veloce ISD in-line filler features double stage filling, beginning with a dosage of particles in pumpable slurry, followed by filling the bottle with liquid. Sidel says the accurate dosage from the Veloce guarantees that a steady and precise quantity of particles is administered in the final beverage product. The filler guarantees the quality of the filled beverage and maintains the physical integrity of the particles, it adds. The Monobloc Veloce ISD machine handles plastic bottles by the neck and is composed of a rinser, doser, filler and capper. The company also ensures that during the capping process, no microbiological risk can occur between the neck thread and the cap.

SAFETY FIRST Hygienic practices were front of mind for Dormund, Germany-based KHS and its new Innofill Glass filling system. “The chief feature of the new Innofill Glass system is the consistent implementation of the hygienic design concept,” the company said in a statement. “The optimization thereof results in a range of additional benefits, such as consumer protection thanks to increased product safety, and cost reductions through simpler cleaning and maintenance.” No electrical elements, pilot valves and control hoses in the filling valve are in the hygiene area, it says. The glass bottle filling machines provide a basis for various electronic KHS filling systems that can be tailored to suit the individual criteria of specific filling methods. The company’s first release on this platform was the Innofill DRS-ZMS pressure filling system for the beer industry. Innofill Glass systems were designed with no corners and edges but with curves and slopes, enabling a rapid runoff of liquids. It also features a bottle transfer frame that connects the stars and capper modules using open pipes with no flanges, the company says. Efficiency also was important with the system. Drives with torque motors have an efficiency of 96 percent, KHS says. BI

Supplier’s Marketplace Eco-friendly merchandisers Frigoglass featured its range of Ice Cold Merchandisers (ICMs) designed to reduce the impact on the environment through the use of natural refrigerants, natural substances in the insulation process and smart energy management systems that reduce energy consumption by up to 50 percent at the National Association of Convenience Stores (NACS) Show. Its Miracool ICMs are Energy Star certified and are highly compatible with recycling process requirements in the United States, the company says. In addition, Frigoglass is the first company in North America that uses cyclopentane, which is an environmentally friendly blowing agent, in the production process of ICMs, which are produced at its Spartanburg, S.C., plant. The company’s ICMs also feature optimized and efficient design, best-in-class components like LED lighting, efficient compressors, fan motors and glass panes that work toward providing high-efficiency levels, it says. QFrigoglass SAIC, 15 A. Metaxa St., 145 64 Kifissia, Athens,

Greece; +30 210 6165700; frigoglass.com.

lines in high-volume environments. Additional M-410iB/140H robot benefits include the following: palletizing speeds up to 1,900 cycles an hour (bags or boxes); compact wrist minimizes interference with peripheral devices; ability to operate in environments ranging from harsh to traditional factory floor; can be mounted on the floor or a platform/riser; and operates with the company’s latest controller with integrated intelligent functions such as iRVision, Collision Guard, Roboguide/ PalletPro and PalletTool software. QFanuc Robotics America, 1800 Lakewood Blvd., Hoffman

Estates, Ill. 60192; 847/898-6000; fanucrobotics.com.

Energy focused SG Beverage Solutions Inc. introduced its MC-12 Energy Cooler and MC-18 Energy Shot Cooler at the NACS Show. The MC-12 accommodates 16- or 12-ounce cans and occupies less than 1.4 square feet of countertop space. The MC-18 holds up to 18 energy shots and occupies less than 1 square foot of countertop space. Standard features for both include an exterior LCD temperature display, sound alert once the lid is lifted, two thermo-electric units and an LED illuminated interior. The MC-12 also can cool 16-ounce cans to 34 degrees Fahrenheit. QSG Beverage Solutions Inc., 2801 NW 55th Court, Fort

Lauderdale, Fla. 33309; 800/882-6693; sgbeveragesolutions.com.

Cooler options Imbera highlighted its beverage cooler options at the NACS Show. The company showcased its VR-04, a smaller-sized cooler that is interactive, illuminates products and displays video. The VR-08M Supercold is designed to reduce product temperature to 39 degrees Fahrenheit without freezing. Its door configuration makes it easy to promote various product types, the company says. The G3-42M emphasizes the multi-category concept and the design allows consumers to easily identify various products. QImbera, 303 Perimeter Center North, Suite 300,

Atlanta, Ga. 30346; 678/690-8454; alpunto.mx/en/imbera/portada-imbera.

Shelf management Mixed-case palletizing Fanuc Robotics America demonstrated intelligent mixed case palletizing with its latest M-410iB/140H palletizing robot during Pack Expo. Ideally suited for high-volume production in bag and box palletizing operations, the M-410iB/140H is the latest member of the M-410iB family of palletizing robots, the company says. It features a 140-kg. payload and a slim arm and wrist design with integrated cable routing to minimize interference with tooling and other peripheral devices. Its compact size allows it to work in small spaces with low ceiling heights. The robot uses iRVision Bar Code Reading to adjust the patent-pending end-ofarm tool to match the size of each case. The robot picks a case from one rack and transfers it to an open space in an adjacent rack. The process continues until all of the cases are moved from one rack to the other. The robot also features a large work envelope that, when combined with its high-speed operation, allows a single M-410iB/140H to service multiple

RTC showcased its EcoTrac Shelf Management system at the NACS Show. The system consists of a reprocessed plastic tray with a replaceable front retainer. The ability to upgrade a gravity glide to a spring-driven glide or to replace a broken front enhances the tray life, lowering the total cost of glide ownership, the company says. QRTC, 2800 Golf Road, Rolling Meadows, Ill. 60008;

NEWS Crown Holdings Inc., Philadelphia,

opened its new beverage can plant in Hangzhou, China. Located in the capital of the Zhejiang province, the Hangzhou facility supplies two-piece 33-centiliter and 50-centiliter aluminum cans and has an initial production capacity of more than 700 million beverage cans. It is Crown’s fifth beverage can plant in China. Construction on plants in Putian, Heshan and Ziyang is under way, and plans for two new facilities in Changchun and Zhengzhou were just announced. Ball Corp., Broomfield, Colo., opened

an expansion of the company’s Graphics Center of Excellence in Westminster, Colo. The 2011 Simei-Enovitis, an international trade show of enology, bottling and vineand olive-growing techniques, will take place from Nov. 22-26 at Fiera Milano in Milan. The show will feature 647 companies from 24 countries. More than 50,000 visitors are expected to attend, 20 percent of whom are from abroad. Spirax Sarco, Blythewood, S.C., announces the launch of Steam News, a digital magazine published quarterly for plant managers, facility and operations professionals, and engineers in the manufacturing industry. Each issue features editorial, steam tips and training opportunities to help improve plant production, sustainability and energy efficiency. Minerva Associates Inc., San Diego, launched minerva-associates.com. The new website is designed to introduce prospective clients and partners to Minerva’s advanced inventory management software offerings, warehouse management system and transaction processor system. JX Enterprises, Waukesha, Wis., added

two new full-service dealerships in Indianapolis and Fort Wayne, Ind., expanding the JXE network to 15 locations.

847/640-2400; rtc.com.

Flavorful options Lancer Corp. showcased its FS60 Flavor Select Advanced Ice-Beverage Dispenser at the NACS Show. The FS60 offers more than 120 flavor combinations, the company says. It features interactive “Life-Touch” buttons as well as state-ofthe-art cold carbonation technology, it adds. FS60 also is self-contained with multiple ice fill options. The Air Mix nozzles blend syrup and water in midair for consistent drink delivery, the company says. QLancer Corp., 6655 Lancer Blvd., San Antonio, Texas

78219; 210/310-7000; lancercorp.com.

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Supplier’s Marketplace PEOPLE Baltimore-based Barcoding Inc. announced the promotion of Martin Jack to chief technology officer. In addition, Barcoding hired Jeff Bateman as controller and added Kyle Gold and Christopher Goodman as executive account managers. PTi Extruders, Aurora, Ill., appointed

Rodd “JR” Duff director of business development and strategic accounts. Patrick D. Johnsen, formerly a product sales manager, has been named eastern regional sales manager for PTi Extruders. Robert Williams, formerly an inside sales engineer, has been named product sales supervisor. Aaron Barkema has been promoted to the newly created position of director of sourcing.

One-step process

Lantech introduced its new EZ Weigh Integrated Scale option at Pack Expo. The innovation uses load cell technology to combine pallet load weight and stretch wrapping into a one-step process. The EZ Weigh design separates the weigh system from the stretch wrappers’ frame to ensure only objects placed on the wrapper’s turntable are weighed, the company says. Designed for the company’s Q-250, Q-300, Q-300XT, Q-400 and Q-400 XT stretch wrappers, the new option is compatible with both 65- and 72-inch-diameter turntables. Stretch wrappers equipped with the EZ Weigh option maintain the Q Series’ classic low profile and are shipped from the factory calibrated and ready for immediate use, the company says. QLantech, 11000 Bluegrass Parkway, Louisville, Ky. 40299;

Counter top coolers ATC Group featured its new CTA Series Counter Top Coolers at the NACS Show. The full-front glass door provides open visibility and is suited for use in retail displays. Other features include top mounted forced air refrigeration, bright LED interior lighting, an adjustable thermostat, a low-e tempered glass door, an aluminum door frame with lock and two adjustable wire shelves. QATC Group, 3235 Industry Drive, Suite C, North Charleston,

S.C. 29418; 800/905-4768; atcgroup.net.

800/866-0322; lantech.com.

Cincinnati-based Intelligrated announced the appointments of Fernando Meneses and Roberto Laguna as key account sales managers for the company’s Mexico City operation.

Inspection system

OCS introduced its newest checkweigher model, HC-Medium, at Pack Expo. The HC-Medium is designed for mid-range applications for speeds up to 250 pieces a minute. It is operated by an industrial PC and is characterized by its 10.4-inch touch display, the company says. It features the same control concept as the high-end checkweigher HC-A, removing the need for crosstraining between various controllers, it adds. HC-Medium is equipped with Wipotec’s EMPR weigh cell. QOCS Checkweighers Inc., 2350 Hewatt Road, Snellville,

Teledyne TapTone unveiled a new vision inspection system, TotalVu, at Pack Expo. The new system follows the tradition of TapTone equipment for reliability, ease of use and a small footprint, the company says. It is designed to be configured with up to four smart cameras to perform a variety of inspections, including labeling inspection, closure inspection and fill level inspection. Equipped with either color or monochromatic cameras, the unit is both flexible and cost effective, the company says. Additional features include CCD high-resolution technology, support of 240 to 1280 dpi resolution, inspection speeds up to 2,000 fps, variable height and cantilevered design, up to four smart cameras for single and multiple point product inspection, as well as logs that track date and time history of rejects. QTeledyne TapTone, 49 Edgerton Drive, North Falmouth,

Ga. 30039; 678/344-8300; ocs-cw.com.

Ma. 02556; 508/563-1000; taptone.com.

Newest model

GLASS SUPPLIER CONTINUES CUSTOMER AND CONSUMER-FOCUSED TRADITION Owens-Illinois Inc. (O-I) is the world’s largest glass container manufacturer and preferred partner for many of the world’s leading food and beverage brands. The company is headquartered in Perrysburg, Ohio, and employs more than 24,000 people at 81 plants in 21 countries. O-I delivers safe, effective and sustainable glass packaging solutions to a growing global marketplace. O-I has been manufacturing iconic glass containers for leading consumer brands like The Coca-Cola Co., PepsiCo, Heinz, Anheuser-Busch InBev, Nestlé, Pernod Ricard and

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| Beverage Industry | NOVEMBER 2011 | bevindustry.com

SABMiller since 1903. Today, O-I provides the highest quality glass packaging materials to companies in more than 80 countries, the company says. The company’s glass container lines span a range of shapes and sizes for food, beer, wine, spirits and other non-alcohol beverages. O-I is focused on leveraging capabilities to bring innovative package solutions to current and potential customers. O-I is committed to being a performance-driven, customer- and consumer-focused organization that provides the best packaging solutions to enhance brand recognition. O-I is dedicated to providing sustainable, value-added packaging solutions to its customers, it says. QOwens-Illinois, One Michael Owens Way, Perrysburg, Ohio 43551, 567/336-5000, [email protected], glassislife.com.

New generation

Market introduction

Ferrum Ltd. showcased the can seamer F410 and the Easy Rider seaming roll, which was presented for the first time to the American market at Pack Expo. Easy Rider is easy to handle, has a long service life and does not lose any oil, the company says. Less friction surfaces in the center of the seaming roll means that the roll runs with less torque , it says. The new tapered roller bearing with a pretension optimized to the applied forces makes the seaming roll free of play, according to Ferrum. QFerrum AG, 5503 Schafisheim, Switzerland;

At Pack Expo, Chep USA introduced Intercon, its new generation of foldable intermediate bulk containers, which can be used for both dry and liquid applications. Made from food-grade polypropylene, the lightweight unit is easy to clean and handle, and is more environmentally sustainable than non-reusable alternatives, the company says. The unit’s design allows forklift access from all four sides, providing greater handling efficiencies, it says. In addition to its strengthened latching system, the unit can be secured with tamper-evident seals. The drop door feature enables easy access to the internal base for manual filling and placement of liner bags. QChep USA, 8517 South Park Circle, Orlando, Fla. 32819;

407/370-2437; chep.com.

+41 62 889 11 11; ferrum.ch.

Compact keg line

With its Innokeg Till CombiKeg, KHS has launched a compact keg washing and racking machine that houses not only the systems for washing the kegs inside and out and filling them, but also the media tanks, controls and conveyors. Shipped fully assembled in a standard-sized container, the Innokeg Till CombiKeg can be commissioned in a short time period, according to the Plug & Produce principle, the company says. With capabilities of between 60 and 100 kegs an hour, the Innokeg Till CombiKeg works on the principle of rotary processing. The target group for the Innokeg Till CombiKeg is primarily small- to mediumsized businesses in the brewing, carbonated soft drinks, mineral water, fruit juice and wine sectors, the company says. The system processes kegs from 10 to 58 liters. Innokeg Till CombiKeg also is designed to fill disposable kegs such as Petainer kegs. The standard R 3/1 model of the Innokeg Till CombiKeg has three washing heads, one racking head and a volumetric filling system with return gas control. Depending on the product and output required, a R 5/1 version of the Innokeg Till Combikeg also is available, equipped with five washing heads and one racking head. In place of the classic return gas control system, KHS’s Direct FlowControl filling technology also is available as an option. QKHS USA Inc., 880 Bahcall Court, Waukesha, Wis. 53186;

262/797-7200; khs.com.

Sustainable-aimed innovation

Standard-Knapp featured its 939S Versatron Soft Catch Servo Case Packer at Pack Expo. The 939S Versatron Soft Catch Servo Case Packer technology enables packers to handle the thinner, lightweight and more fragile glass containers being used in the move toward greener, more sustainable packaging, the company says. The 939S Versatron minimizes the amount of material needed for container partitions, and major national retail chains have achieved savings as high as 10 percent in the cost of a case, it adds. Standard Knapp’s 939S Versatron Soft Catch Servo Case Packer is designed with a two-axis servo system that allows the machine to catch the product while it descends into the case. The company also developed the 990 model that builds on the Versatron’s features, which was on display at Pack Expo along with the 939S Versatron model. The 990 machine uses a set of grippers or vacuum cups to grab 12- to 24-count bottles and physically lower them into the case. This solution would virtually eliminate impact and is suited for higher-end products and extremely thin-walled glass materials, the company says. QStandard-Knapp Inc., 63 Pickering St., Portland, Ct. 06480;

860/342-1100; standard-knapp.com.

Versatile equipment Delkor Systems Inc. addressed the growing demand for shelf-ready and retail-ready packaging for beverages at Pack Expo. Delkor’s new Shelf Ready Case & Tray Packer for beverage containers is engineered to address the mass merchandisers’ needs for product in a traditional corrugated case, product shipped in a shelf-ready display tray and a retail-ready format where some products have both two-pack and three-pack plastic handles applied. All of these changeovers are accomplished without tools and in less than 10 minutes. QDelkor Systems Inc., 8700 Rendova St. NE, Minneapolis,

Minn. 55014; 763/783-0855; delkorsystems.com.

Mass production Nissei ASB Machine Co. Ltd. shared information about its ASB-70DPH and ASB-70DPW one-step injection stretch blow molding machines at Pack Expo. Utilizing its variable cavitation design, the ASB-70DPH is highly versatile and capable of producing an extensive range of containers from small bottles to large wide-mouth jars ranging from 5 ml. to 10 liters, the company says. Utilizing a two-row cavity layout, the ASB-70DPW can produce small mineral water containers up to 700-ml. capacity with high outputs, it adds. QNissei ASB Machine Co. Ltd., 4586-3 Koo, Kormoro-Shi,

Nagano-Ken 384-8585, Japan; + 81 267 23 1565;

bevindustry.com | NOVEMBER 2011 | Beverage Industry |

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BEVERAGE INDUSTRY 946760 0148-6187 09/26/2011 MONTHLY 12 178.00 2401 W BIG BEAVER RD STE 700 TROY, OAKLAND, MI 48084-3333 CATHERINE RONAN (248) 244-8259 2401 W BIG BEAVER RD STE 700 TROY, MI 48084-3333 STEVE PINTARELLI 155 N PFINGSTEN RD STE 205 DEERFIELD, IL 60015-5293 JENNIFER ZEGLER 155 N PFINGSTEN RD STE 205 DEERFIELD, IL 60015-5293 JESSICA JACOBSEN 155 N PFINGSTEN RD STE 205 DEERFIELD, IL 60015-5293

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0

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260 4879 35145 801 35946 86.12

1376 4258 36280 718 36998 88.26

D. Scott Eckman - Founder/President [email protected] | 630-404-0458

Ad Index AAF International ................................................. 32

Imbera S.A. de C.V. ................................................ 39

www.aafintl.com

www.imbera.mx

Amco Products ...................................................... 37

iTi Tropicals ..................................................... 13, 56

www.amcoprod.com

www.iTitropicals.com

BASF AG .................................................................. 2

Kill Cliff...................................................................25

www.newtrition.basf.com

www.killcliff.com

Brooklyn Bottling Company .................................42

Kluber Lubrication N.A........................................... 9

www.iberiaworldfoods.com

www.klubersolutions.com

Brother Mobile Solutions, Inc. ............................. 33

Kyowa Hakko USA .................................................. 17

www.brothermobilesolutions.com

www.kyowa-usa.com

CMC-Kuhnke, Inc. .................................................... 4

Modex 2012 ........................................................... 35

www.cmc-kuhnke.com

www.modexshow.com

ContiTech Schlauch, GmbH .................................... 7

MRI Flexible Packaging .........................................21

www.contitech.de/ih

www.mriflex.com

READER & MARKETING SERVICES LETTERS

JENNIFER ZEGLER Mail: Beverage Industry 155 Pfingsten Road, Suite 205 Deerfield, IL 60015 E-mail: [email protected]

SINGLE COPY SALES/ BACK ISSUES

ANN KALB E-mail: [email protected] Call: (248) 244-6499

SUBSCRIPTIONS

D.D. Williamson & Co., Inc. ...................................50 www.ddwilliamson.com

Dairy Farmers of America .....................................19 www.dfamilk.com

David Michael & Company ....................................52 www.dmflavors.com

Flavor Dynamics, Inc. .............................................11 www.flavordynamics.com

Flavor Producers ................................................... 23 www.flavorproducers.com

Food Ingredient Solutions, LLC ...........................54 www.foodcolor.com

Freightliner Trucks..........................................62-63

NEPA Carton & Carrier Co. ..................................46

NVE Pharmaceuticals .......................................3, 51 www.nveusa.com

Overnight Labels, Inc. .......................................... 47 www.overnightlabels.com

Pacific Ozone .........................................................34 www.pacificozone.com

PDC International Corporation ............................48

LIST RENTAL

FOR POSTAL INFORMATION: Contact Rob Liska at 800-223-2194 x726 [email protected]

FOR EMAIL INFORMATION: Contact Shawn Kingston at 800-409-4443 x828 [email protected]

PRINT & INTERNET ADVERTISING

www.pdc-corp.com

Pure Growth Partners ..........................................BC

STEVE PINTARELLI

www.puregrowth.com

Midwest/West Coast E-mail: [email protected] Call: (203) 267-3388

Robertet Flavors, Inc ......................................26-28 www.robertet.com

Rocket Products....................................................24

TOM BACHMANN Mid-Atlantic/Southeast/Texas E-mail: [email protected] Call: (941) 473-7739

BRUCE KLION

www.rocketproducts.com

Roha USA, LLC ...................................................... 57 www.rohadyechem.com

Northeast/Canada E-mail: [email protected] Call: (516) 944-5885

CLASSIFIED

www.gnt-group.com

Sensient Food Colors N.A. ................................... 53 Hilmar Ingredients ................................................20

CHRIS WILSON E-mail: [email protected] Call: 248.244.8264

www.nepacartons.com

www.glanbia.com

GNT USA ................................................................55

T: (847) 763-9534 F: (847) 763-9538 E-mail: [email protected]

CUSTOM MEDIA

www.freightliner.com

Glanbia Nutritionals, Inc. .....................................29

CUSTOMER SERVICE

CATHERINE WYNN E-mail: [email protected] Call: (847) 405-4010

www.sensient-tech.com

www.hilmaringredients.com

Spirax, Inc. ..............................................................15 www.spirax.com

REPRINT

JILL DEVRIES [email protected]

TriCore ...................................................................... 5 BEVERAGE INDUSTRY (ISSN 0148-6187) is published 12 times annually, monthly, by BNP Media II, L.L.C., 2401 W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) 362-3700, Fax: (248) 362-0317. No charge for subscriptions to qualified individuals. Annual rate for subscriptions to nonqualified individuals in the U.S.A.: $178.00 USD. Annual rate for subscriptions to nonqualified individuals in Canada: $216.00 USD (includes GST & postage); all other countries: $228.00 (int’l mail) payable in U.S. funds. Printed in the U.S.A. Copyright 2011, by BNP Media II, L.L.C. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

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Beverage Industry | NOVEMBER 2011 | bevindustry.com |

73

WHAT’S NEXT? BY JESSICA JACOBSEN Managing Editor

W

hether it’s for suppliers or finished beverages, trade shows can provide an eye-opening experience about what trends are on the horizon. At this year’s National Association of Convenience Stores (NACS) Show, the Cool New Products section was a great introduction to what innovations companies were showcasing. And on the show floor there was no shortage of emerging brands and categories. Among the numerous beverage trends, one that caught my eye was hangover shots. Packaged similarly to energy shots, hangover shots are positioned as an alternative to hangover pills, and two companies at NACS showed alternative ways their products address this emerging trend. Hangover Joe’s Products, Cincinnati, featured its Hangover Joe’s Recovery Shot, which is designed to be taken in the morning to aid in relief of a hangover, the company says. The formulation contains a combination of vitamins, including niacin, B6 and B12. The product also contains Hangover Joe’s proprietary Get Up & Go Blend, which includes the kudzu root and flower because of their cooling properties that address the heat component of the alcohol, the company says. Another brand, Party Armor, Bay City, Mich., addresses the hangover shot category, but is designed to be consumed prior to going to sleep. The company says a 2-ounce solution contains 17 ingredients to help your body recover while sleeping. Part of Party Armor’s proprietary blend is prickly pear extract, which contains antioxidants that support the liver with detoxification abilities and as an anti-inflammatory agent that aids in the relief of a typical hangover symptom, nausea, the company says. As the anti-hangover trend continues to emerge, it will be interesting to keep an eye on this category and see where it will land in the future of the beverage industry.

74

Tuition giveaway

Musical advertising dvertising

Dr Pepper will give away more than $1 million in tuition money as part of its Dr Pepper Million Dollar Tuition Giveaway. Dr Pepper fans can submit videos online at drpepper.com to explain why they deserve tuition money for a chance to compete to win scholarship money. The students whose videos are selected will compete during halftime of four conference championship games and the AT&T Cotton Bowl Classic. To win, contestants must throw footballs from the 5-yard line into a 2-foot hole in an oversized Dr Pepper can replica. The person who completes the most throws in 30 seconds will win a $100,000 scholarship, with the runner-up winning a $23,000 scholarship prize. In addition to the halftime throws, more than 60 videos will be selected to receive instant $2,500 scholarships.

PepsiCo’s new “Music Icons” commercial made its debut during the Sept. 21 premiere of Fox’s “The X Factor.” The TV spot celebrates Pepsi’s rich music history by featuring global icons Michael Jackson, Ray Charles, Britney Spears, Kanye West and Mariah Carey and its new slogan, “Where there’s Pepsi, there’s music.”

The next blue moon To celebrate the next blue moon, which will appear Aug. 31, 2012, the Blue Moon Brewing Co. is using consumer feedback to create limitededition offerings. The “Craft the Next Blue Moon” program on Blue Moon’s Facebook page will collect comments on consumers’ favorite beer styles, ingredients, packaging designs and product names. Blue Moon will craft three beers to be sampled by consumers at tasting events across the country.

Premium cognacs Camus, New York City, released a new line of certified single vintage cognacs, each of which has a suggested retail price between $280 and $1,250. All of the cognacs are handcrafted and bottled straight from the cask in a limited and numbered series. The range consists of eight vintages — 1964, 1970, 1971, 1974, 1980, 1988, 1989 and Pionneau 1969. The Pionneau 1969 vintage is a unique offering from the House of Pionneau, which Camus took over in the 1960s. Less than 5,000 bottles were produced; each was hand-numbered and signed to guarantee authenticity.

Life’s a beach Malibu and its digital creative agency, Isobar, launched a Facebook game application called Beach Club, which challenges fans to successfully manage a fantasy island resort for a chance to win a trip to Barbados. The game transports Facebook users to Sonny Beachbottom’s island. Their goal is to help him manage his luxurious island resort, and if they do well, Sonny might give them the resort. With 10 different beaches around the island, players are challenged to earn points by keeping resort guests happy with plenty of interactive beach activities. Players also can earn additional virtual cash and points by bartending at tiki bars on the island. In the end, points are converted into sweepstakes entries for chances to win an all-inclusive four-day, three-night trip to Barbados. The Beach Club game sweepstakes is available on Facebook through Dec. 15, while the game itself runs indefinitely.

| Beverage Industry | NOVEMBER 2011 | bevindustry.com

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