Drinks Ventures GmbH and Canable, a leading co-packing service provider based in Berlin, Germany, are excited to announce the launch of its new financing program aimed at helping beverage brands rapidly scale their operations. This initiative offers unlimited funding at competitive rates to qualifying companies, enabling them to meet growing demand and expand their market presence.
You’ve already proven your drink’s market potential by selling 100,000 cans? Now, imagine accelerating to 500,000 cans and beyond. Our financing program is your co-pilot in this exciting journey of scaling your beverage brand.
Eligibility criteria:
Companies must have successfully sold a minimum of 100,000 cans of their beverage product to qualify.
Applicants are required to possess a current purchase order or Letter of Intent (LOI).
“We recognise that many promising beverage brands face challenges in scaling production to meet demand, even after achieving initial market success,” said Jennifer Browarczyk, CEO of Drinks Ventures GmbH. “Our new financing program aims to bridge that gap, providing the capital needed to fulfill large orders and accelerate growth.”
The program is designed to work seamlessly with our co-packing services, offering a comprehensive solution for beverage companies looking to increase production volumes efficiently. By combining flexible financing with expert co-packing capabilities, Canable is positioned to be a valuable partner in helping innovative beverage brands reach their full potential.
Beverage companies interested in learning more about this financing opportunity and Canable’s co-packing services are encouraged to apply using this form: https://forms.gle/fmJqhS6aVn3b49AB6
About Drinks Ventures Drinks Ventures, home to Canable, is a top co-packing service provider based in Berlin, Germany. With a dynamic and flexible manufacturing process, Canable enables European beverage brands to ramp up production starting at 6000L. In collaboration with their partners, they streamline printing, canning and filling. Through the Beverage Scaleup Program, Drinks Ventures is focused on financing the growth of multiple scaleup drink companies.
Americans are increasingly longing for the “good old days” amid rapid social and economic changes in the aftermath of the COVID-19 pandemic, including the pressures of modern life, inflation, and the current cost-of-living crisis. Brands are looking to cash in on consumer inclination for nostalgia by bringing pack products and packaging from the bygone era to evoke a sense of familiarity, says GlobalData, a leading data and analytics company.
Meenakshi Haran, Lead Consumer Analyst at GlobalData, comments: “Nostalgia is often a sensory experience for consumers who are sentimental about a period or place that they have experienced before. They seek familiar flavours, fragrances, or products that take them back to that time or place. Americans, in particular, are feeling nostalgic about the “good times” and looking for familiarity in the food & drinks products they choose, as affirmed by 67 % of respondents in GlobalData consumer survey*.
“By bringing back old-style flavors and products, brands are hoping to tug at the heartstrings of consumers looking for comfort in fond memories. Olipop, for instance, claims to be a new kind of soda in retro cans, reminiscent of nostalgic packaging designs, while Spindrift a sparkling water brand introduced two new variants inspired by the 1990s when purple grape-flavoured products were popular. Similarly, Oreo debuted its new limited-edition “dirt cake” flavour that claims to be a spin on the classic childhood-favourite, mud-pie dessert.”
Haran continues: “Given the plethora of new product launches that are trying to differentiate themselves and gain a share of the consumer’s wallet, companies should try to differentiate their products and make them stand out on retail shelves. The launch of retro-themed products and packaging reflects an effort to attract consumers. This is corroborated by as many as 29 % of American respondents who claim that new experiences with product purchases are essential, while an additional 24 % state unique/novel features are essential*.”
Haran concludes: “While the desire for retro products is high among American consumers, brands must strike a balance between nostalgia and sensory expectations of visual and taste experiences to keep consumers coming back and drive sales. They need to ensure that there is a right mix of novelty and nostalgia to entice consumers.”
*GlobalData 2023 Q4 Consumer Survey – US, published in December 2023, 500 respondents
Over 270 non-alcoholic beverage brands, which include many globally recognised brands, have active sponsorship deals in place with sports properties based mainly across Europe, as of October 2023. Many of these deals are highly lucrative, with seven non-alcoholic beverage brand deals worth over USD 5 million annually. Among these brands, Red Bull is the biggest spending brand in the Europe, the Middle East, and Africa (EMEA) region, with over USD 63.31 million being invested by it in 2023, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “EMEA Non- Alcoholic Beverage Sports Sponsorship Landscape,” reveals that Red Bull is estimated to have 10 deals in place that are worth USD 1 million or more annually. Its deals include many esports teams such as OG, Team Spirit, and G2 eSports.
Tom Subak-Sharpe, Sport Analyst at GlobalData, comments: “Red Bull across the EMEA region is the biggest spending non-alcoholic beverage brand thanks to many lucrative deals, which include a primary front-of-shirt agreement with soccer club RB Leipzig. The brand’s investment in Leipzig has contributed massively in allowing the club to be one of the best-performing clubs in German soccer over the last 10 years.”
Red Bull’s biggest spending rival in the sector is Coca-Cola. GlobalData estimates the brand will spend nearly USD 60 million on sponsorship deals across the EMEA region in 2023. The brand’s biggest annual deal in the region is with FC Barcelona. Its one-year deal with the Spanish soccer giants is estimated to be worth USD 5.25 million.
Subak-Sharpe concludes: “In 2023, Coca-Cola continued to be associated with many athletes, with current deals ongoing with Neymar, Blake Griffin, Anthony Davis, Kris Bryant and Justin Barcia. Of these five deals, the one with the Brazilian soccer player Neymar is the most lucrative. Over a long period of time, Red Bull has associated itself with some of the world’s most recognisable athletes. These associations are not expected to decline, with the brand constantly identifying new top talent to partner with.”
Over 110 non-alcoholic beverage brands, which include many globally recognised brands, have active sponsorship deals in place with sports properties based mainly in the US. Many of these deals are title or main sponsorship deals, which allow brands to receive substantial brand exposure opportunities, often from sports properties that have substantial global fanbases. With many of the deals being highly lucrative, eight non-alcoholic beverage deals are worth over USD 10 million annually. PepsiCo is the biggest spending brand in the Americas region, with an estimated expenditure of USD 322.96 million, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report “Americas Non-Alcoholic Beverages Sports Sponsorship Landscape,” estimates that the American multinational food, snack, and beverage corporation PepsiCo has 55 deals in place, which are worth USD 1 million or more annually. In 2023, over USD 100 million is being invested by PepsiCo in team deals, which include many NFL teams such as the New England Patriots, Washington Commanders, and Miami Dolphins.
PepsiCo’s biggest competitor in the sector is Coca-Cola. In 2023, Coca-Cola is estimated to spend close to USD 277 million on sponsorship deals across the Americas region, according to GlobalData. The brand’s biggest annual deal in the region is with US Soccer. The current five-year agreement between the two parties is estimated to be worth USD 100 million.
Tom Subak-Sharpe, Sport Analyst at GlobalData, comments: “It is not surprising that PepsiCo and Coca-Cola dominate the region of all the competing non-alcoholic beverage brands due to the vast amounts of funding that these two powerhouse organisations have to spend on developing their sponsorship portfolios.”
In 2024, it is unlikely that any other non-alcoholic beverage brands will come close to competing with these two brands. However, a brand to keep an eye on who may increase their sponsorship spend and deal volume count is PRIME, the brand that is currently serving as the official sports drink of the Los Angeles Dodgers.
Subak-Sharpe concludes: “The meteoric growth experienced by PRIME in 2023 may allow the brand to invest more finances into securing more sponsorship deals with globally recognised sports properties based in the Americas region.
Offshoot Brands, a visionary entity fostering plant-forward brands like Love Beets, Genuine Coconut, and Veggie Confetti, and Canadian-based LOOP Mission, a formidable force against food waste and producer of cold-pressed juices, announce their exclusive partnership into the US market, blending sustainable, innovative beverage options with a powerful environmental ethos.
On an endeavor to reduce food waste and champion sustainability through innovative product lines, Offshoot Brands welcomes LOOP Mission to its portfolio, where it will lead sales and marketing initiatives for the beverage brand across the expansive US market. This collaboration ensures the amplification of LOOP’s mission to valorise rejected food, while simultaneously aligning with Offshoot’s ambition to bring more sustainable options to the retail landscape for consumers.
LOOP Mission operates with a distinctive and sustainable business model, partnering with major food industry entities to utilise perfectly edible products, which, due to aesthetic imperfections or shelf-life limitations, are discarded before reaching consumers.
Select LOOP Mission products will now be available for US retailers, expanding the avenues through which consumers can access sustainable, high-quality beverage options.
LOOP Mission will harmoniously integrate into Offshoot Brands’ portfolio, embracing and extending the brand’s existing values and commitments to sustainability. Offshoot Brands, which is actively working with farms to attain certified regenerative status and employs whole crop utilisation to mitigate food waste, sees LOOP Mission as an embodiment and extension of these practices.
This partnership is a stride toward further amplifying Offshoot’s existing sustainability initiatives, with prospects to potentially intertwine resources and minimise waste across all brand lines.
The Board of Britvic plc announced the completion of the acquisition of the Extra Power energy drink brand from GlobalBev following receipt of regulatory clearance. As part of the transaction, Britvic has also agreed to acquire three additional Brazilian soft drinks brands from GlobalBev, including the energy brand Flying Horse, the juice brand Juxx and the acai smoothie brand Amazoo.
Collectively, this acquisition in Brazil enables Britvic to expand its brand portfolio and regional footprint. Energy is the fastest growing category in the market with volume growing 17 % in 20221 on the previous year and forecast to grow 20 % year-on-year in 20232. Within this category, Extra Power has broad-based distribution and 42 % market share3 in its core regions near Brasilia, while Flying Horse was the first international energy brand to enter Brazil around 20 years ago. Juxx is a premium juice brand with added health benefits, and Amazoo is an acai-based premium smoothie. In the year to December 2022, the acquired portfolio generated R$ 118 m of net sales, growing 26 % on the previous year.
This marks an important extension of Britvic’s Brazilian operations, consistent with Britvic’s strategy to accelerate and expand its presence across Brazil. The acquisition also includes a modern, efficient warehouse in Brasilia that will enhance Britvic’s supply chain efficiency across its wider portfolio and route to market into Brazil’s Centre-West region.
Simon Litherland, Chief Executive Officer commented: “The addition of these brands to our Brazilian portfolio will accelerate our growth trajectory in one of our key markets, as well as generate value overall. In line with our strategy to expand our business and accelerate our growth in Brazil, we now have a meaningful presence in the Centre-West region, providing the opportunity to scale our existing brands into territories where we’ve historically under-indexed, while also bringing new brands into our existing market regions.”
Britvic first entered the Brazilian market in 2015 with the acquisition of Ebba, followed by the acquisition of Bela Ischia in 2017. Since then, Britvic has developed fruit favourites such as Maguary, Dafruta and Bela Ischia into strong national presences known for innovation.
The Maguary brand heritage dates back to 1953 and, similar to the European flavour concentrates brands, is consumed by families at home. This heritage and family awareness enabled Fruit Shoot to be launched in Brazil as Maguary Fruit Shoot – following the same approach Britvic has followed in Europe, where Robinsons and Teisseire are the halo brands. New category launches in recent years have included Puro Coco and Natural Tea, both of which are ready-to-drink formats in the coconut and iced tea categories. More recently, the Brazilian team has expanded Maguary’s presence further, launching a plant-based chocolate drink.
Dafruta Tropical was launched in the flavour concentrates category, utilising the technical know-how of the Robinsons formulation. This new range uses real fruit, has a range of flavours and is pre-sweetened, differentiating it from the traditional concentrates in Brazil which require sugar to be added by the consumer. More recently the portfolio has expanded with the launch of Britvic Mixers and the premium Mathieu Teisseire range of concentrates for cocktails.
The growth market for fruit drinks in Brazil is perfectly complemented by Britvic’s fruit growing and fruit processing company, Be Ingredient, providing natural ingredients for Britvic and the international market.
1Nielsen Energy Market Data all regions 2Global Data volume forecast by category 3Nielsen Data
Despite being digital natives, Gen Z consumers have started to exhibit some self-awareness and are questioning if all-encompassing tech usage is good for them. New Mintel research indicates that while 51 % of Gen Z Canadians (aged 13 – 17) cite a desire to integrate more tech into their lives, nearly the same percentage (47 %) also agree that social media and large amounts of tech usage have a negative impact on their mental health. In fact, 47 % say they are trying to limit their social media usage.
When examining the platforms that Gen Z uses, all of them rely heavily on visual interaction: Mintel research shows Gen Z Canadians engage with YouTube the most (77 %), followed by Instagram (75 %), Snapchat (58 %), and TikTok (52 %).
Michael Lloy, Senior Technology Analyst, Mintel Reports Canada, said: “Our research shows that due to significantly more time spent on these platforms, a portion of Gen Z has become more aware of their mental health and are exploring ways to reduce their usage of social media. This indicates that there is growing discontent among younger consumers about the negative effects that social media has on their lives, which may prompt radical behaviour shifts away from social media as they age. This will require brands to think strategically about how and where they market to Gen Z consumers as they age in order to develop and sustain an engaged and loyal audience.”
Reduced screen time in favor of better mental health
Gen Z consumers use of social media is a behavioural trait that sets them apart from other demographics. They are a heavily plugged-in generation with 51 % saying they are on the hunt to find technology to make their lives easier, more efficient, or more exciting. What’s more, 64 % say they engage with social media more than TV/movies.
However, nearly half of Gen Z (47 %) agree that social media has a net negative effect on their mental health and nearly all (95 %) agree that mental health is just as important to maintain as physical health.
“Gen Z reducing their screen time due to mental health concerns presents an opportunity for brands to lean into the visibility of their values in order to be seen to support causes that Gen Z cares about. Both Millennials and Gen Zs are heavily plugged-in generations, but there are a few, notable differences when it comes to social media. First, while Gen Zs are digital natives, most Millennials are not, and this informs the speed at which each generation adapts to new technology. Life stages are another piece of the puzzle. Millennials are a split generation. Some Older Millennials are married, homeowners, have children, or some combination of the three, while some Younger Millennials are closer to Gen Z in their life stages. These key differences will be important for brands to remember as they market to Gen Z consumers moving forward.”
The metaverse fails to make an impact
Since its launch in late 2021, the metaverse has been a popular topic for brands but has made less of a splash among consumers. Mintel research shows only 3 % of Canadian Gen Z consumers actually use the metaverse and 26 % have never heard of the metaverse before now.
“As many Canadian consumers are getting back to their pre-pandemic lifestyles, including in-person gatherings, the lack of eagerness to interact with the metaverse has been evident. Overall, only 15 % of consumers, on average, can even envision a world where they interact using the technology, meaning brands that currently or plan to leverage the metaverse in their marketing strategy have some work in front of them in order to convince consumers of the metaverse’s usefulness and applicability to their daily lives,” concluded Lloy.
Dutch company Riedel, a leading producer of NCSD products, is the first in the Netherlands to offer its famous juices in SIG’s innovative on-the-go combismile carton pack. Riedel’s iconic Appelsientje, CoolBest and DubbelDrank juice brands will benefit from the clever design of combismile, which is also paired with SIGNATURE FULL BARRIER packaging material, where the small amount of polymers used are linked to certified forest-based renewable materials via a mass-balance system.
SIG’s combismile carton offers the perfect lifestyle match for Riedel juices and provides busy consumers of all ages with ultimate on-the-go convenience – easy to open, handle, hold, close and store on the go. With a curved, modern shape with easy grip corners, combismile offers consumers handy consumption straight from the pack and is resealable thanks to its innovative one-step closure.
Riedel has extensive expertise in carton packaging, naturally evolving over time in close partnership with SIG. The new 330 ml on-the-go combismile carton pack is a logical development, unifying Riedel’s carton packaging portfolio to offer the most convenient and sustainable choice for consumers.
Carton packs with SIGNATURE FULL BARRIER packaging material reduce the carbon footprint compared to a standard carton pack* even further, as a result of the substitution of fossil polymers with mass-balanced plant-based polymers made from tall oil – a by-product of paper manufacturing. All three key raw materials are linked to certified responsible sources: paperboard is from FSC™-certified forests and other controlled sources; forest-based renewable polymers are certified according to ISCC PLUS (International Sustainability & Carbon Certification) via a mass-balance system; and an ultra-thin layer of ASI certified aluminium protects against light and oxygen. Riedel already successfully uses SIGNATURE FULL BARRIER packaging material for juices in 1,000 ml and 1,500 ml carton packs from SIG.
SIG’s CFA 1824 filling machine for combismileBig combines excellent flexibility with high speed, providing Riedel with the capacity to fill 24,000 carton packs per hour and the ability to fill five different volumes: 200 ml, 250 ml, 300 ml, 330 ml and 350 ml.
*Results based on ISO-compliant life-cycle assessment CB-100732c: https://cms.sig.biz/media/4440/sig_lca_signature_addendum-combiswift-plus.pdf)
HONEST Kids to remain in company’s portfolio, with HONEST teas product line to be phased out
The Coca-Cola Company is challenging itself to think differently about how its brands help accelerate business transformation, reflect consumer choice and promote growth as a company. This means rationalising its lineup of drinks and prioritising fewer, bigger brands with the greatest potential for scale and profitable growth.
While the HONEST Kids portfolio is quickly growing and will remain a successful part of the business, the HONEST teas product line will be phased out of The Coca-Cola Company’s beverage portfolio at the end of 2022.
Gold Peak, a national brand, and the regional Peace Tea offering will now anchor the company’s ready-to-drink tea (RTD) strategy in North America.
“Shifting from a three-brand tea portfolio to a prioritised two-brand tea lineup will free up investment resources and supply chain capacity to better meet consumer needs and capture share in the category,” said Sabrina Tandon, group director, RTD Tea, Coca-Cola North America Operating Unit. “We believe Gold Peak and Peace Tea are best positioned to meet consumer preferences for high-quality brewed teas with different levels of sweetness and flavour.”
The Coca-Cola system will continue to produce and distribute the HONEST Kids line of organic juice drinks and explore licensing ventures and innovation opportunities for the HONEST brand in other categories. “We are phasing out the HONEST teas product line, but are not selling the HONEST brand,” Tandon clarified.
Gold Peak launched in 2006 and became a billion-dollar brand in 2015. The brand transitioned to a real-brewed formula in 2018, appealing to “tea truists” who value tea-forward taste profiles and high-quality ingredients.
Peace Tea has built a loyal, Gen Z following in the Midwest, Northeast and Southeast with fruit-forward flavours offered in colourful, 23-oz. cans and a fun, free-spirited personality.
Mainstream brands like Gold Peak and Peace Tea are driving growth of the RTD tea category. Sales of both Gold Peak and Peace Tea have increased during the COVID-19 pandemic as shoppers gravitate both to beverages with immune-boosting properties and multi-serve packaging options for at-home consumption. HONEST teas, which are primarily offered in single-serve bottles with a strong concentration in the Northeast and along the West Coast, have been negatively impacted by a drop in immediate consumption sales and limited glass supplies.
“Ongoing supply chain challenges mean we are having to prioritise production and distribution of certain product SKUs, and that we’ve been unable to meet consumer demand for Gold Peak,” Tandon added. “This, among other factors, helped drive this very difficult decision.”
Tandon also cited some overlap among Gold Peak and HONEST tea consumers, adding, “We see endless runway with Gold Peak and are excited to expand the trademark with new product and packaging innovations that will appeal to the HONEST Tea consumer.”
The HONEST brand was founded in 1998 by Seth Goldman and Barry Nalebuff. In 2008, The Coca-Cola Company took a 40 % investment stake in HONEST before fully acquiring the brand in 2011.
Tandon credits HONEST tea with helping the company create a new route to market into the natural foods channel, where brands like Simply, Topo Chico, vitaminwater and smartwater remain.
Refresco Group B.V., the global independent beverage solutions provider for Global, National and Ernerging (GNE) brands, and retailers in Europe and North America, announced that Adee Packer has stepped down as Chief Financial Officer (CFO) and Member ofthe Executive Board.
Bill McFarland, CFO of Refresco North America, will be appointed as CFO for the Group, effective 1 July 2022. Bill joined the Company through the acquisition of Cott Beverages, where he was CFO since 2013, and has over 20 years of experience in the FMCG industry. Prior to his career at Cott, Bill held several finance rotes at Molson Coors, an international beverage company. He has worked and lived in the US, Canada, Australia, and the UK.
Andre Voogt, M&A Director Refresco North America, will step into the rote of CFO Refresco North America, also effective 1 July 2022. Andre has been with Refresco for over 15 years, mainly in senior finance rotes. When Refresco set its first steps in North America in 2016, Andre led the local finance organization. From 2018 to2020, Andre was responsible for the integration of Cott Beverages into Refresco, and member of the North America Leadership Team.
The new caps, introduced by BBL in Ireland, Cido Grupa in the Baltics, LY Company Group and Lactalis Puleva in Spain and Weihenstephan in Germany, have been designed to prevent litter and accelerate transition to renewable materials.
Joining forces with leading beverage producers, Tetra Pak is launching tethered caps on carton packages. Marking a significant milestone in the company’s long-term work on design for recycling, five new tethered cap solutions are currently being introduced across Ireland, the Baltics , Spain and Germany in different product categories – a market first for these geographies. As part of a wider programme, this development paves the way for Europe-based customers to stay ahead of schedule and meet the Single Use Plastics (SUP) Directive coming into force by 2024.
Julia Luscher (Photo: Tetra Pak)
Julia Luscher, Vice President Marketing, Tetra Pak, comments: “We are delighted to be supplying a number of customers with tethered cap solutions, helping them to ‘walk the talk’ towards their sustainability ambitions. Understanding our customers’ needs and having collected consumer insights through multiple pieces of research across various markets, our new tethered caps have been designed to enhance convenience. For instance, they are easy to open and re-close for subsequent consumption, while featuring carefully sized diameters for smooth pouring and drinking.”
Tethered caps play an important role in preventing litter, as the cap will stay attached to the package. They could also help reduce the carbon footprint of the carton when they are chosen by food manufacturers as plant-based options, made from polymers derived from responsibly sourced sugarcane, thereby increasing the renewable content of the package. Additionally, a majority of Tetra Pak’s tethered cap portfolio features a reduced amount of plastic. Depending on the various solutions, the company achieved a plastic content reduction ranging between 7 % and 15 %.
Marco Marchetti, Vice President Packaging Materials, Sales and Distribution Solutions, Tetra Pak, adds: “Starting with these five new introductions, we are planning to equip approximately 300 packaging lines with tethered caps in Europe by the end of 2022. Considering the scale of change required across the value chain, early collaborations like these are putting the food and beverage industry on a fast track to accelerate the transition to a low carbon circular economy.”
In May, Borrisoleigh Bottling Ltd (BBL) is set to start commercial production of the new plant-based C38 Pro tethered cap on Tetra Top® 330 and Tetra Top® 500 carton packages. Based in Ireland, BBL is an experienced and awarded water producer, who’s seeking ‘to lead the industry towards a more responsible and sustainable future’.
The new HeliCap 26™ Pro closure – on a Tetra Prisma® Aseptic 1000 Square package – is being tested since February 2022 in the Baltics with Cido Grupa, who is leading the juice segment in that region since many years and exporting its products to over 20 countries across the globe.
In Spain, LY Company Group – that is driving the growth of carton-packaged water in the country, with the mission of ‘reaching a turning point in which both society and companies are aware of the importance of choosing sustainable packaging for the conservation of the planet’ – will soon start commercial production of the new plant-based DreamCap™ 26 Pro closure on a Tetra Prisma® Aseptic 330 Square package.
In the same country, Lactalis Puleva – part of the Lactalis Group, a world leading dairy company – has chosen to test the new HeliCap™ 23 Pro closure. The cap, in its plant-based option, has been applied to Tetra Brik® Aseptic 1000 Slim packages for the brand Lauki, on shelf since March this year.
Weihenstephan, one of the oldest and most popular German dairy brands, will soon test the production of the new LightWing™ 30 closure, on a Tetra Brik® Aseptic 1000 Edge carton.
The company has also heavily invested towards an improved manufacturing experience for customers. Tetra Pak’s new high quality, automated production lines for tethered caps utilise Artificial Intelligence technology for increased efficiency.
Marco Marchetti (Foto: Tetra Pak)
Marchetti concludes: “We are on a journey towards creating the world’s most sustainable food package, a carton that is fully made from responsibly sourced renewable or recycled materials, is fully recyclable and carbon-neutral. We are ramping up investment in the development of alternative solutions across our packaging portfolio such as tethered caps and other drink-from systems, to reduce littering while increasing the renewable share of our cartons.”
“In total, we are investing around EUR 400 million in the development and roll-out of tethered cap solutions, including a EUR 100 million investment last year in our Châteaubriant plant in France to accelerate the production of tethered closures. By working seamlessly across multiple project streams and covering approximately 40 different packages with tethered caps, we expect to sell over 1.5 billion such closures by year end.”
Firmenich, one of the world’s largest privately-owned fragrance and taste companies, and Finlays, a leading supplier of tea, coffee and botanical solutions, have entered an agreement giving Firmenich full sales rights to Finlays’ European tea and coffee extracts portfolio in Europe, effective immediately.
As a part of this new agreement, Firmenich will focus on commercializing two core parts of Finlays’ extracts business in Europe: its world-leading Cold Brew Coffee portfolio and its Tea Extract portfolio. The Cold Brew Coffee portfolio serves a rapidly growing segment within the European region, and is crafted using a proprietary process which delivers a distinctly smooth, rich flavor experience. Finlays’ Tea Extract portfolio includes The Wellbeing Collection, a range of premium, all-natural tea extracts which are rich in bioactive compounds associated with various health benefits. These extracts are sustainably sourced from Finlays’ own tea farms, with on-site extraction facilities that enable tea leaves to be harvested and extracted on the same day, thereby preserving their fresh flavor and natural bioactive composition.
Under the new agreement, Firmenich is responsible for the full sales process, from commercial relationship to brief management, supported by the Finlays team. The partnership focuses exclusively on Finlays’ ranges of tea and coffee extracts, and covers European markets only.
Following PepsiCo’s introduction of Pep+, a policy that aims to improve the company’s agricultural footprint by addressing its packaging processes and greenhouse gas emissions;
Holly Inglis, Beverages Analyst at GlobalData, a leading data and analytics company, offers her view:
“Pep+ will keep PepsiCo ahead of the competition amid consumers’ ever-increasing demand for sustainability. The policy will be popular with the 70 %* of global consumers that stated they prefer ingredients that are sourced sustainably and ethically.
“GlobalData notes that consumers are yearning for drinks that are both better for them and better for the planet. Therefore, focusing on beverages that are thought of as ‘healthy’ and ‘sustainable’ such as dairy alternatives, flavoured waters and iced teas may be a good bet in the long term given their historical popularity in a number of markets across the globe. If PepsiCo continues to utilize these categories like Lipton, in combination with the new policies, the company will be able to get a big leg up on its competitors.
“It is clear that consumers are watching brands’ actions closely, as well as changing their purchasing habits based on how brands respond to the environmental crisis. GlobalData’s Q1 2021 global consumer survey reports that 33 %** of people worldwide like to see news about a brand’s sustainability initiatives.”
*GlobalData’s Q2-21 Consumer Survey – Global – Combined responses: “somewhat appealing” and ‘very appealing” for the question “how appealing do you find the following? Sustainably/ethically sourced ingredients” **GlobalData’s Q1-21 Consumer Survey – Global
PepsiCo, Inc. announced that it has entered into an agreement with PAI Partners to sell Tropicana, Naked and other select juice brands across North America, and an irrevocable option to sell certain juice businesses in Europe, which will result in combined pre-tax cash proceeds of approximately $3.3 billion while retaining a 39 % non-controlling interest in a newly formed joint venture. PAI, a leading private equity firm with strong experience in the food and beverage space, will be the majority shareholder of the transferred business, with PepsiCo retaining exclusive U.S. distribution rights to the portfolio of brands in its best-in-class, chilled Direct Store Delivery for small-format and foodservice channels.
“This joint venture with PAI enables us to realise significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” said PepsiCo Chairman and CEO Ramon Laguarta. “In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet.”
“We are delighted to bring these storied beverage brands into the PAI portfolio through another partnership with a leading global food and beverage company. We believe there is great growth potential to be realised through investments in product innovation, expansion into adjacent categories, and enhanced scale in branded juice drinks and other chilled categories,” said Frédéric Stévenin, a Managing Partner at PAI. “We are also thrilled that PepsiCo will remain involved as our partner in the joint venture as we execute our plans to drive the future success of these brands.”
These juice businesses delivered approximately $3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo’s overall operating margin in 2020. PepsiCo expects to use the proceeds from the sale of these assets primarily to strengthen its balance sheet and to make organic investments in the business. The transaction is expected to close in late 2021 or early 2022, subject to customary conditions, including works council consultations and regulatory approvals.
About PAI Partners PAI Partners is a pre-eminent private equity firm, investing in market-leading companies across the globe. It has significant experience in the food and beverage space and is currently invested in Froneri, the world’s #2 ice cream manufacturer, and Ecotone, a leader in healthy and sustainable food. It manages around €15 billion of dedicated buyout funds and, since 1994, has completed 84 investments in 11 countries, representing over €65 billion in transaction value. PAI has built an outstanding track record through partnering with ambitious management teams where its unique perspective, unrivalled sector experience and long-term vision enable companies to pursue their full potential – and push beyond.
Nestlé S.A. announced that it has reached an agreement to sell its regional spring water brands, purified water business and beverage delivery service in the U.S. and Canada to One Rock Capital Partners in partnership with Metropoulos & Co. for USD 4.3 billion. The Company’s international premium brands including Perrier®, S.Pellegrino® and Acqua Panna® are not a part of the deal. The transaction is expected to close following the completion of customary closing conditions.
The sale includes the following brands in the U.S. and Canada, which had sales of around CHF 3.4 billion in 2019: Poland Spring® Brand 100 % Natural Spring Water, Deer Park® Brand 100 % Natural Spring Water, Ozarka® Brand 100 % Natural Spring Water, Ice Mountain® Brand 100 % Natural Spring Water, Zephyrhills® Brand 100 % Natural Spring Water, Arrowhead® Brand Mountain Spring Water, Pure Life® and Splash. It also comprises the U.S. direct-to-consumer and office beverage delivery service ReadyRefresh®.
The agreement follows Nestlé’s announcement last year that it would conduct a strategic review of parts of the North American waters division and sharpen the focus of its global water portfolio.
Commenting on the transaction, Mark Schneider, Nestlé CEO, said: “We continue to transform our global waters business to best position it for long-term profitable growth. This sale enables us to create a more focused business around our international premium brands, local natural mineral waters and high-quality healthy hydration products. We will also boost our innovation and business development efforts to capture emerging consumer trends, such as functional water.”
Nestlé reiterated its commitment to make its entire water portfolio carbon neutral by 2025. In 2020, Nestlé announced renewed sustainability commitments which build on existing efforts to enhance water stewardship and tackle plastic waste.
Mintel, the experts in what consumers want and why, has announced seven trends set to impact global consumer markets in 2021, including analysis, insights, and recommendations centered around consumer behavior, market shifts, innovative brands, and opportunities for companies and brands to act on in the next 12 months:
Health Undefined: An awareness of wellbeing is at the forefront of consumers’ minds, but a playbook doesn’t exist. Brands have a responsibility and opportunity to set new rules.
Collective Empowerment: Consumers around the world are making their voices heard loud and clear in the push for equity, agency, and rights.
Priority Shift: Consumers are seeking a return to the essentials, with a focus on flexible possessions and a reframing of what ownership actually means.
Coming Together: Consumers are coming together in like-minded communities in order to connect with and support each other, driven by the impact of the global pandemic.
Virtual Lives: Physical separation due to the pandemic, increased need for escapism, and improved technology are driving consumers towards digital experiences.
Sustainable Spaces: COVID-19 has subtly but significantly shifted consumer awareness of our relationship with the spaces in which we live, accelerating demand for sustainability.
Digital Dilemmas: While there are many benefits to a more digitally-connected life, concerns about its negative impacts are putting consumers in a predicament.
Please download the FREE 2021 Global Consumer Trends under www.mintel.com.
Ozarka®, Deer Park® and Zephyrhills® join Poland Spring® in using 100 % rPET bottles in multiple sizes. All Nestlé Waters North America U.S. domestic packaging continues to be 100 % recyclable.
Nestlé Waters North America (NWNA) announced that three more of our U.S. domestic still water brands have started to convert their packaging to 100 % recycled plastic. Ozarka® Brand 100 % Natural Spring Water, Deer Park® Brand 100 % Natural Spring Water and Zephyrhills® Brand 100 % Natural Spring Water packaging, which has long been 100 % recyclable, will now be both 100 % recyclable and made from 100 % recycled plastic. With the expansion of recycled plastic (rPET) to these brands, nearly 60 % of all households in the U.S. will have access to one of Nestlé’s regionally distributed spring water brands in bottles made entirely with recycled plastic.
The packaging conversion for these three brands means that NWNA has now doubled the amount of rPET used since 2019 across its U.S. domestic portfolio to 16.5 %. This step brings the company closer to achieving its goals of using 25 % rPET across its U.S. domestic portfolio by 2021 and 50 % rPET by 2025. By accelerating the use of rPET in its bottles, NWNA is leading the shift from virgin plastic to recycled plastic and helping to create an end-market for sustainable rPET. Using recycled plastic can help keep it out of landfills, waterways and oceans, and reduces greenhouse gases by 67 % compared to using new plastic1.
To help consumers identify the new rPET bottles, all three brands will include a new message on the labels of the 20 oz, 700 mL, 1 L and 1.5 L bottles, stating they are both 100 % recyclable and now are also made from 100 % recycled plastic. To provide greater transparency about the source of the water, the labels will also include a QR code that allows people to scan and track the journey of the water they’re drinking, as well as the bottle. Ozarka will be launching a TV, digital and social media campaign this summer to inform Texans of the new rPET bottles. Understanding that bottles need to be recycled in order to create bottles with other bottles, Zephyrhills will be launching limited edition labels that encourage consumers to recycle through a bold message stating, ‘I’m Not Trash! I’m 100 % Recyclable.’ This message will accompany the “100 % recycled” message on the applicable bottle sizes.
NWNA’s ability to expand its use of recycled plastic partially relies on existing bottles being recycled when empty. Unfortunately, right now, less than 30 % of PET bottles are recycled and many recovered beverage containers are being down-cycled and used in non-food contact applications versus being made back into beverage containers. While giving a plastic beverage container another life in products such as carpets and textiles ensures one more use, it does not represent the highest and best use of food-grade recycled material. Recognizing these challenges in obtaining enough rPET to incorporate into more of our product packaging, NWNA will continue to work collectively with industry, NGOs, governments and consumers to address critical issues related to infrastructure, collection, policy, consumer education, and development of end-markets for recycled materials.
To help the underfunded and often outdated recycling infrastructure in the U.S., NWNA made a $6 million investment in the Closed Loop Infrastructure Fund to support projects that help increase recycling capabilities throughout the country. In 2019, Poland Spring collaborated with The Recycling Partnership to launch the first Instagram recycling hotline to help Americans understand what is recyclable in their communities. NWNA was also the first beverage company to add How2Recycle information on the labels of its major U.S. brands, reminding consumers to empty the bottle and replace the cap before recycling.
1Association of Plastic Recyclers (2018)
Consumers across the world may soon be experiencing tastier, fuller-sized blueberries year-round, thanks to a new breeding partnership in blueberries that will bring premium quality berries to customers across the world.
Plant & Food Research and global fresh produce company T&G Global have announced they are entering into a new agreement to breed and commercialise exciting new varieties of blueberries to be sold globally.
The breeding programme will produce new varieties of blueberry that will provide improved yield and resistance to disease while also delivering consumers larger, tastier berries over a longer period, with an extended harvest season.
The first new commercial varieties could be launched globally in the next 12 months under T&G Global’s Orchard Rd brand.
“Blueberries are a key strategic play for us in building our global portfolio, and we’re delighted to build another global category to emulate the success of our premium apple brands. We know there is strong consumer demand for blueberries and teaming up with Plant & Food Research means we get access to a pipeline of world-class varieties,” says Gareth Edgecombe, CEO of T&G Global.
“Securing exclusive rights to the best varieties is the first step in our strategy to build multiple global verticals that drive and enable value and add demand through strong consumer brands,” he says.
The new partnership builds on an existing agreement that grants the global fresh produce grower and marketer, T&G Global, access to a suite of Plant & Food Research-bred and licensed blueberry varieties for production in Australia.
“Plant & Food Research and T&G Global have a strong relationship that began at their legacy organisations in the 1990s,” says David Hughes, CEO Plant & Food Research.
“T&G has an excellent track record of commercialising our varieties, most notably the apples branded JAZZ™ and Envy™. We are looking forward to continuing building on this history and delivering excellent blueberries for New Zealand and global consumers,” he says.
Premiumization has developed as an excellent way forward for the brands to make consumers feel valued and special in the Asia-Pacific (APAC) region as the consumers are preferring and consuming high value products, says GlobalData, a leading data and analytics company.
Across the FMCG sector, be it food, or beverages, the brands are releasing new premium products along with exclusive offerings that elevate them above the national mass brands and compete as recognized premium products.
With the socio-eco diversification, the purchasing behavior of consumer has totally altered in different countries of the same continent. For instance, 76 % of consumers in China typically relish the opportunity to consume the highest-quality food & drink, often justifying a higher price point.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, says: “Asia-Pacific region has huge potential for growth due to population growth, rapid urbanization and rising disposable incomes in its emerging economies. High on the list of consumer preferences are high quality products with a luxurious feel and the products that offer greater convenience. The consumers also prefer to have products that pass stringent safety standards and are produced with environmentally sustainable practices.
Adapting to the changing demands and values of today’s modern shoppers, brands have realized the need to upgrade to premium offerings. Manufacturers have their eyes set on the premium market and targeting the middle-to-high income segment through host of value-adds to lure people to upgrade.”
Symrise has announced the company’s investment in and the creation of a strategic partnership with Califormulations, LLC, a unique platform designed to deliver end-to-end beverage innovation to consumer packaged goods (CPG) companies and their brands. Califormulations, LLC combines the expertise of Symrise, including its Beverage Innovation Centers in Laguna Beach and Teterboro, with the offering of The Green Organic Dutchman Holdings Ltd. (TGOD).
Paul Graham, President, Symrise Flavor North America, stated, “Major packaged goods companies put their focus on agile innovation to help fuel growth around their core brands. Agile venturing and creative innovation sprints will replace the traditional and often time-consuming ‘stage gate’ innovation funnel and are changing innovation sustainably.”
Califormulations, LLC fully embraces this approach. The company is run by an industry experienced management team and built on a business model that is designed for speed, agility, flexibility and focused innovation, with each investor harnessing specialized expertise.
The new platform combines beverage expertise and innovation capabilities with the ability to quickly develop shelf-ready, scalable products. Customers will have access to the expertise located at three locations: the newly formed Califormulations, LLC location in Columbus, Georgia, with 100,000 sq ft for beverage development, multi-purpose production, pilot scale flexible bottling and shelf-ready, scalable packaging; Symrise’s regional headquarters in Teterboro, New Jersey, providing global expertise in flavor solutions, including taste for sugar reduced products; and the specialized Symrise Beverage Center in Laguna Beach, California, to inspire creativity in beverage product concepts.
Utilizing the expertise located at these three locations, Califormulations, LLC in cooperation with Symrise will deliver a rapid innovation approach composed of four integrated parts: Insights & Design, Prototyping & Evaluation, Development & Production and the Activation Ecosystem.
The Symrise team brings a proven reputation in beverage innovation and incubation, a comprehensive portfolio of consumer insights, a strong footprint in beverage and CPG accounts including core listings with global brands. TGOD adds a new element to the business through their expertise in producing premium organic cannabinoids. Using sustainable growing practices, TGOD offers organic CBD and other organic cannabinoids where allowed by local laws and regulations. The end result is a unique, agile, end-to-end approach to innovation with full project management across every step.
Paul Graham concluded, “The complementary capabilities of Califormulations, LLC will foster innovation and scale new, successful brands quickly.”
Water is an everyday necessity, associated with life, healthiness and purity. To sustain this image, water packaging should feature simple and recyclable design. Since the impact of plastic packaging on the environment is widely discussed, canned water brands have an important role to play to reduce packaged water’s impact on the environment, says leading data and analytics company GlobalData.
The company’s report ‘ForeSights: Canned Water’ explores the future potential of reusable/recyclable canned water as an alternative to the mainstream bottled products.
According to GlobalData’s Q1 2017 consumer survey, recyclability is the most important factor in environmentally friendly packaging, with 74 % of consumers globally finding it very or extremely important.
Efforts have been made by manufacturers to replace plastic in water bottles with biodegradable materials obtained from various natural sources, such as algae. But could aluminum offer a more straight-forward answer to the problem?
Consumers mostly want reusable containers to be easy to carry, open and close. Other on-the-go packaging benefit preferences include being easy to dispose, reduced carbon foot print and light weight. Only aluminum cans, of all the available water packaging types, fulfill these preferences.
Canned and boxed water have been used in the past for emergency situations, such as natural disasters, rather than commercially. However, a few independent brands, including Noah’s spring water from US-based Varni Brothers and CanO water in the UK, have appeared in the developed world, using aluminum cans and beverage cartons to create more sustainable and safe alternatives of the bottled water.
Aleksandrina Yotova, Associate Analyst at GlobalData, says: “Aluminum cans are the most sustainable beverage package, reportedly outperforming plastic and glass bottles, as well as beverage cartons. They have the highest recycling rate and more recycled content than the other options. Consumers understand the efficiency of aluminum packaging.
“Being lightweight, stackable, and strong, cans allow brands to package and transport more beverages using less material (by weight) than plastic and glass bottles. Since beverage-makers can ship aluminum cans more efficiently, they could make transportation, energy, and cost savings, which translates to a more affordable end product.”
Consumers who make efforts to recycle product packaging as much as possible are likely to see canned water as a viable alternative to bottled water due to its high level of recyclability. According to GlobalData’s 2016 Q3 global consumer survey, the highest ratio of active recyclers is found in North America (78 %) and Europe (66 %).
Yotova adds: “Canned water is a logical extension of the trend for healthy and sustainable living among younger consumers. There are opportunities for manufacturers to target the millennial generation, especially in the developed world, with simple but elegant designs. These consumers want to associate themselves with the good cause of keeping the environment clean.”
