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40 66

14 46
Features
6 Beverage Beat 54 Packaging
Packaging trends drive innovation for case packing and wrapping equipment.
8 Industry Issues
60 Beverage R&D
14 Category Focus Sweetening solutions gain momentum in reducing sugar content and
Kombucha shakes up RTD tea category. improving taste.

18 New Products 66 Ingredient Spotlight

Grains and nuts power plant-based beverage formulations.
23 Special Report
2019 Beer Market Report 68 Distribution
CDL driver recruitment and retainment challenges beverage delivery.
40 Cover Story
Sierra Nevada Brewing uses expertise to help wildfire victims. 70 Operations
• Technology spurs customization of processing automation.
46 Up Close With… • Assessing beverage processing patterns leads to supply chain improvement.
Shmaltz Brewing Co.
74 Market Insights
48 Channel Strategies Technology streamlines ordering while reducing potential errors.
Drug stores offer personalized product sets.
76 Supplier’s Marketplace
50 Between Drinks 89 The Last Drop

4 | Beverage Industry | MARCH 2019 | bevindustry.com Cover photo courtesy of Sierra Nevada Brewing Co.
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please contact Customer Service at:
TEL.: 800-952-6643 or

The invasion of
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PUBLISHER

cannabis infusions
Western US
STEVE PINTARELLI
pintarellis@bnpmedia.com
949-600-8092

EDITORIAL
Editor

IN MY HOME STATE OF ILLINOIS, TALKS OF RECREATIONAL JESSICA JACOBSEN

jacobsenj@bnpmedia.com

marijuana have increased since the election of our latest governor, Managing Editor
BARBARA HARFMANN
J.B. Pritzker. Although the Illinois voters, legislature and governor harfmannb@bnpmedia.com

will determine whether this becomes a reality, the states that Associate Editor
TAYLOR KARG
already have legalized recreational marijuana are seeing the plant kargt@bnpmedia.com

pop up in more food and beverage products. ART

In an October 2018 Business Insider feature titled “The market for marijuana-infused Art Director
beverages could explode to $600 million in the next four years,” the business news DANA KNAPP
knappd@bnpmedia.com
outlet highlights the potential for this market. Citing a note from Canaccord Genuity,
the article says that the financial firm is predicting that cannabidiol (CBD) beverages CONTRIBUTORS
will become a $260 million market by 2022 and that tetrahydrocannabinol (THC) JEFF CIOLETTI
beverages will become a $340 million market by 2022. MATTHEW COMERFORD
Beverage-makers in states where recreational marijuana is legalized are wasting no time JOHN PETER KOSS
helping this prediction become a reality. High Style Brewing Co. released Coastal Haze, ADVERTISING
an alcohol removed, cannabis-infused craft beer. Inspired by pale ale recipes, Coastal East Coast, Canada

Haze is brewed using Cascade and Amarillo hops, it says. Each 12-ounce bottle also is BRUCE KLION
klionb@bnpmedia.com
infused with 10 mg of THC extract, the key psychoactive ingredient in cannabis, it adds. 248-786-1716
“Selection of our THC extract was very important,” said Lyden Henderson, chief Midwest
operating officer of High Style, in a statement. “A one- to two-hour delay from consumption CHRISTOPHER CASEY
to onset of effects was unacceptable to us. We believe that our consumers deserve a ‘self- caseyc@bnpmedia.com
847-894-8761
regulating’ product, where they know by the time they finish their first High Style whether
Pacific Northwest
or not their individual tolerance will allow them to responsibly have another.” WAYNE WIGGINS JR.
High Style also plans to bring a version of Coastal Haze with 5 mg of THC and 5 mg w.wigginsjr@mindspring.com

of CBD (a non-psychoactive component of the cannabis plant) this quarter, it says. Inside Sales

Beer manufacturers also are looking at another market to further cannabis infusions: MARIANNE MAJERUS
majerusm@bnpmedia.com
medicinal. 248-786-1262
Flying Dog Brewery partnered with Green Leaf Medical Cannabis to release a THC- Senior Classified Sales Manager
infused beer. The non-alcohol IPA named Hop Chronic will serve as a medical delivery CATHERINE WYNN
wynnc@bnpmedia.com
system to provide Maryland medical cannabis patients with therapeutic cannabinoids
847-405-4010
including CBD, CBG and THC without the patient having to smoke or vape the
Advertising/Production Manager
cannabis, it says. Subject to regulatory and legal approvals, the product will be released BRIAN BIDDLE
at dispensaries throughout Maryland. biddleb@bnpmedia.com

“We see a lot of interest in cannabis from the craft beer community, and we jumped at the Corporate Reprint Manager

opportunity to partner with Green Leaf on a product that captures the passion and energy JILL DEVRIES
devriesj@bnpmedia.com
you see in fans of both craft beer and cannabis,” said Flying Dog Chief Marketing Officer
Ben Savage, in a statement. “There are definitely similarities between the natural flavor AUDIENCE DEVELOPMENT
Audience Marketing Project Manager
profiles we extract from hops and the terpenes and cannabinoids found in cannabis.”
In the spirits category, Humboldt Distillery was an early adopter of cannabis infusion. In SHERRI GRONLI
Toll Free: 800-952-6643
2016, the microdistillery announced the release of Humboldt’s Finest, a vodka infused with 847-559-7399
cannabis sativa. The THC-free spirit has found success in Northern California and recently Integrated Media Coordinator
expanded to more than 100 Von, Pavilion and Albertson stores in Southern California. CATHERINE NEAL
Whether its CBD or THC, it seems clear that cannabis infusions have found a home in
LIST RENTAL
the beverage market.
POSTAL CONTACT:
Kevin Collopy at 402-836-6265
Toll Free: 800-223-2194 ext. 684
kevin.collopy@infogroup.com

EMAIL CONTACT:
JESSICA JACOBSEN, Editor Michael Costantino at 402-836-6266
michael.costantino@infogroup.com

CORPORATE
Visit us online Chief Experience Officer: DARRELL DAL POZZO
Human Resources & Information Technology Director:
Go to BEVINDUSTRY.COM for archived articles, to conduct keyword searches, RITA M. FOUMIA
BNP MEDIA HELPS
and to print or download articles. For high-quality reprints of articles or advertisements, Production Director: VINCENT M. MICONI
PEOPLE SUCCEED Finance Director: LISA L. PAULUS
contact JILL DEVRIES: TEL.: 248/244-1726, EMAIL: devriesj@bnpmedia.com. IN BUSINESS WITH Creative Director: MICHAEL T. POWELL
SUPERIOR INFORMATION Clear Seas Research Director: BETH A. SUROWIEC
Chief Event Officer: SCOTT WOLTERS

6 | Beverage Industry | MARCH 2019 | bevindustry.com

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Industry Issues
PepsiCo releases 2018 results
P
epsiCo Inc., Purchase, N.Y., reported results
for the fourth quarter and full year 2018.
“We are pleased with our results for the
fourth quarter and the full year 2018. For the year,
we met or exceeded each of the financial objectives
we set out at the beginning of the year. Frito-Lay
North America and each of our international sectors
performed very well, and our North America
Beverages sector made progress throughout the year,”
said Chairman and Chief Executive Officer Ramon
Laguarta, in a statement. “While adverse foreign
exchange translation negatively impacted reported net
revenue performance, our underlying organic revenue
growth accelerated in the second half, and we ended
the year with 4.6 percent organic revenue growth in
the fourth quarter. Furthermore, we are excited about
the outlook for our business. We are well-positioned in
large, growing categories and have developed strong
and relevant capabilities over the years. In 2019, we aim
to capitalize on the momentum we have as we enter the
year, and to continue to invest in the capabilities that
will better position us for success for years to come.
“For 2019, we expect 4 percent organic revenue
growth and approximately 1 percent decline in core
constant currency [earnings per share] (EPS),” he
continued. “Our 2019 EPS performance is expected
to be impacted by incremental investments that are
intended to further strengthen the business, lapping a
number of 2018 strategic asset sale and refranchising
gains and an increased core effective tax rate in 2019.
Importantly, we expect to return to high-single-digit
core constant currency EPS growth in 2020.”
For the fourth quarter, reported net revenue
was even with the prior year. Foreign exchange
translation had a 4-percentage point unfavorable
impact on reported net revenue performance and
Sierra Nevada acquires Sufferfest
S
ufferfest Beer Co., San Francisco, will join Sierra
Nevada Brewing Co., Chico, Calif., and Mills
River, N.C., the breweries announced. Sierra
Nevada will acquire 100 percent of Sufferfest, which
is the company’s first-ever acquisition. The breweries
stated shared values, commitment to innovation and
common goals as the root of the partnership, they
added.
“While still in its infancy, Sufferfest is at the front
of the wave of ‘functional’ alcoholic beverages,” said
Sierra Nevada President and Chief Executive Officer
Jeff White, in a statement. “By joining with Sierra
Nevada, Sufferfest will be better positioned to grow
and continue to lead the way in a rapidly growing and
highly competitive space.”
Sufferfest, which launched in 2016, is known for its
gluten-removed line of beers like its 95-calorie Kölsch
brewed with bee pollen and its FKT (Fastest Known
Time) Pale Ale brewed with salt and black currant.
“The complementary nature of our offerings and
their position at the cusp of this emerging category
are not the only reasons Sufferfest made sense,” White
said. “From the moment we met, it was clear that our
8 | Beverage Industry | MARCH 2019 | bevindustry.com
acquisitions, and divestitures had an unfavorable
impact of 1 percentage point. Organic revenue, which
excludes the impacts of foreign exchange translation,
acquisitions, divestitures, structural and other
changes, grew 4.6 percent, it says.
For the North America Beverages (NAB) division,
operating profit declined 12 percent, reflecting
certain operating cost increases, including increased
transportation costs, a 9-percentage point impact of
higher commodity costs, and higher advertising and
marketing expenses. These impacts were partially
offset by net revenue growth, productivity savings
and a 4-percentage point impact of prior-year
hurricane-related costs, it says.
For the full year, reported net revenue increased
2 percent. Foreign exchange translation and
acquisitions and divestitures each had an unfavorable
impact of 1 percentage point. Organic revenue, which
excludes the impacts of foreign exchange translation,
acquisitions, divestitures, structural and other
changes, grew 4 percent.
For NAB, operating profit decreased 16 percent,
reflecting certain operating cost increases, including
increased transportation costs, a 7-percentage point
impact of higher commodity costs and higher
advertising and marketing expenses. These impacts
were partially offset by productivity savings and
net revenue growth. Higher gains on asset sales
positively contributed 1.5-percentage points to
operating profit performance. A bonus extended
to certain U.S. employees in connection with the
Tax Cuts and Jobs Act of 2017 negatively impacted
operating profit performance by 1.5-percentage points
and was partially offset by prior-year costs related to
hurricanes, which positively contributed 1 percentage
point to operating profit performance. BI
two companies are deeply aligned in our values and
our commitment to do the right thing.”
Sufferfest is a Certified B Corp. and a values-driven
company. Founder and Chief Executive Officer Caitlin
Landesberg, a long-distance trail runner, started the
company with a vision to create the post-sweat beer.
“I’ve always craved a beer after a race, but when
I couldn’t find a beer that agreed with my dietary
and performance needs, it left a genuine void in
the post-race social experience,” Landesberg said.
“The finish line is where we get to celebrate the
ail, anguish and suffering we’ve all been through
together. I so wanted to continue to be part of this
occasion, but didn’t want to keep compromising on
taste or ingredients.
“Sierra Nevada is the perfect fit,” Landesberg
added. “If it were any other company, this would not
be a consideration for us. Sierra Nevada is a family
owned and operated business that isn’t driven by
shareholder pressure to meet quarterly numbers. I’ve
always been so impressed by their commitment to
the communities they serve. They are really driven by
their own North Star.” BI
Atlanta-based The Coca-Cola Co. announced Lisa Chang as
its new chief people officer. Chang replaced Jennifer
Mann, who now serves as president of global ventures.
Previously, Chang served as senior vice president and
chief human resources officer for AMB Group, the
investment management and share services arm of The
Blank Family of Businesses.
Trinchero Family Estates (TFE), St. Helena, Calif., has
expanded its luxury import portfolio by partnering with
Spanish producers Finca Allende, Finca Nueva, Quinta Sardonia
and Terras Gauda as its exclusive importer, distribution
and marketing representative in the United States,
the company says. The addition of the four Spanish
estates to the TFE imports portfolio will help the wine-
maker meet the needs of U.S. consumers as the size
of the Spanish still wine category in the United States
now is worth more than $200 million, it adds.
Boulder, Colo.-based The Brewers Association (BA)
announced its 2019 Board of Directors, adding three
new representatives to the 19-person board. Eric
Wallace, co-founder and president of Left Hand Brewing
Co., continues as board chair for a second term. Newly
elected brewpub representative Leah Cheston, co-owner
of Right Proper Brewing Co., joined re-elected packaging
brewery representatives Leslie Henderson, Lazy Magnolia
Brewing Co.; and Garrett Marrero of Maui Brewing Co. New
board member Jill Marilley was appointed by the American
Homebrewers Association (AHA) governing committee to fill
the second of two AHA board seats, previously held
by term-limited director Chris Frey. New board member
Kevin Blodger, co-founder and head brewer at Union Craft
Brewing; and Larry Chase were appointed by the BA Board
of Directors as at-large representatives. They replace
outgoing board members Jim Koch, The Boston Beer Co.; and
Tom McCormick, California Craft Brewers Association.
Sierra Nevada Brewing Co., Chico, Calif., announced “Pope
of Foam” Charlie Bamforth as its new senior quality
advisor. Bamforth will evaluate all areas of production
and provide input to the brewery’s “highest quality”
mission, the company says. He also will provide
employee training focused on beer quality, it adds.
Brooklyn, N.Y.-based Q Mixers announced the
appointment of Mike Atkins as its new executive vice
president of retail. Atkins will oversee all of Q Mixers’
sales at retail locations, the company says.
Drizly, Boston, announced a partnership with Concord,
Calif.-based BevMo!, a specialty beverage retailer on
the West Coast, to bring Drizly’s on-demand delivery
platform to 45 BevMo! stores throughout California,
the company says. The partnership gives BevMo!
retailers and customers access to the Drizly platform
throughout the Bay Area and Silicon Valley, as well as
Southern California from Los Angeles to San Diego, it
adds.
Washington, D.C.-based Jos. A. Magnus & Co. announced
details of its new national growth strategy. Key
initiatives for the distiller include an expanded and
experienced leadership team, broadened national
distribution and barrel warehousing capabilities,
and the launch of several Magnus special releases
in 2019, the company says. In addition, Magnus
revealed plans to temporarily close and refurbish its
Washington, D.C., cocktail room, which is expected to
reopen this spring.
Report details trends
impacting on-premise
A
dult beverages play a huge part in attracting
customers and the on-premise channel
is vital to an alcohol brand’s success,
according to Chicago-based Technomic. Technomic’s
“On-Premise Intelligence Report,” developed with
New York-based Beverage Marketing Corporation,
examines trends in the on-premise market as
consumers’ demands for quality, variety and
authenticity increase and their flavor preferences shift.
The report acts as a guide for on-premise operators
and adult beverage brand marketers to better
understand consumer attitudes, behaviors and
usage, it says.
The following are highlights from the report:
■ Slow to Grow: Identifying growth brands,
categories and sub-segments, as well as targeting key
Boston Beer net revenue up for year
T
he Boston Beer Co. Inc., Boston, reported
fourth quarter 2018 net revenue of $225.2
million, an increase of $18.9 million or 9.2
percent from the fourth quarter of 2017, mainly due to
an increase in shipments of 6.3 percent.
Net income for the fourth quarter was $21.8 million,
or $1.86 per diluted share, a decrease of $8.7 million
or $0.71 per diluted share from the fourth quarter
of 2017. This decrease was primarily due to a fourth
quarter 2017 favorable one-time tax benefit of $1.72
per diluted share related to the Tax Cuts and Jobs
Act of 2017. Operating income for the fourth quarter
was $28.8 million, an increase of $14 million or 94
percent, primarily due to increases in net revenue
and decreased advertising, promotional and selling
expenses, partially offset by lower gross margins.
Earnings per diluted share for the 52-week period
ending Dec. 29, 2018, were $7.82, a decrease of $0.27
from the comparable 52-week period in 2017. Net
revenue for the 52-week period ending Dec. 29, 2018,
was $995.7 million.
“We are proud to report depletions growth of 11
percent for the quarter and 13 percent for the full
year,” said Jim Koch, chairman and founder of the
company, in a statement. “We are thankful to our
outstanding employees, distributors, retailers and
drinkers, all of whom helped return the company
to double-digit volume growth. We believe that
our depletions growth is attributable to our key
innovations, the quality of our products and our
strong brands, as well as sales execution and support
from our distributors. We are still seeing challenges
across the industry, including a general softening of
the craft beer category and retail shelves that offer an
increasing number of options to drinkers. We continue
to work hard on our Samuel Adams brand messaging,
focusing on communicating our artisanal care in the
brewing of Samuel Adams Boston Lager.
“While it’s still early, it appears that our new
advertising campaign has noticeably improved Boston
Lager’s trends,” he continued. “We plan to continue
to invest in this campaign in the coming months, with
the goal of further improving trends and returning
Samuel Adams to growth. We are confident in our
consumer groups and occasions, is crucial as alcohol
sales growth continues to lag behind total food and
beverage growth in the channel.
■ Margaritas Waning?: With cocktail innovation
accelerating, Margaritas face stiff competition for
drink menu space from restaurant originals and
unique specialty drinks.
■ Italian Imports: Challenges remain for wine, but
imports from Italy have traction, with Italian wine
varietals among the fastest-growing red wines on
menus last year and Prosecco also gained menu
placement.
■ Properly Briefed Bartenders: Consumers’
knowledge of drink selections and quality is
expanding along with their expectations of bartenders’
expertise. BI
ability to innovate and build strong brands and we
are planning to launch three new brands in 2019 that
we believe will complement our current portfolio
and help support our mission of long-term profitable
growth.”
Dave Burwick, the company’s president and chief
executive officer, added: “Our depletions growth in
the fourth quarter was the result of increases in our
Truly Hard Seltzer, Twisted Tea and Angry Orchard
brands that were only partially offset by decreases in
our Samuel Adams brand. Truly continues to grow
beyond our expectations and we continue to work hard
to grow distribution across all channels while building
a strong brand. We are committed to maintaining and
improving our position as a leader in the emerging
segment of hard seltzer as more competitors enter.
Twisted Tea is growing in both distribution and velocity
while generating consistent double-digit volume
growth. Angry Orchard’s growth is led by Angry
Orchard Rosé, which was introduced in early 2018.
“We are excited about our brand investment plans
for Angry Orchard in 2019, which include expanding
our packaging formats to reach more drinkers,”
he continued. “Our overall plans for 2019 include
significant investments in the second year of our
successful 2018 innovations, which include Angry
Orchard Rosé, Truly Berry Variety Pack, Truly Wild
Berry, Sam’76 and Samuel Adams New England IPA.
These five new innovations in 2018 are within the top
product introductions in their combined categories.
In 2019, we plan to build upon these successful
innovations with three additional brands that address
important health-and-wellness opportunities in our
categories. These brands include 26.2 Brew from
our wholly owned affiliate Marathon Brewing Co.,
a thirst-quenching gose beer made with sea salt to
fit runners’ active lifestyles; Wild Leaf Hard Tea, a
craft hard tea with lower calories and sugar, and Tura
Alcoholic Kombucha, an organic, light and refreshing
shelf-stable alcoholic kombucha with live probiotics
and real fruit. We are now in the very early stages of
our national launch of both 26.2 Brew and Wild Leaf
and we will launch Tura later in the quarter on a more
limited geographic basis.” BI
bevindustry.com | MARCH 2019 | Beverage Industry | 9
 ADVERTORIAL
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From our perspective at O-I, craft beer continues to be a dynamic and exciting segment and a core focus of our business. We have
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 Industry Issues
CBC heads to Denver for
annual tradeshow, expo
P
resented by the Boulder, Colo.-based Brewers
Association, the Craft Brewers Conference
(CBC) offers concentrated brewing education
and idea sharing to improve brewery quality and
performance, it says. The conference brings together
13,000 brewing industry professionals for more than
70 different educational seminars led by the top minds
in the beer world and access to BrewExpo America,
the largest brewing trade show in the U.S. featuring
more than 700 vendors.
For 2019, the annual tradeshow and expo will take
place April 8-11 at the Colorado Convention Center in
Denver.
As small and independent craft brewers face unique
opportunities and challenges in the marketplace, the
CBC allows them to connect with their colleagues
and comrades to share ideas and learn about
relevant topics ranging from brewery operations to
Essentia Water posts another
year of strong retail sales
E
ssentia Water, Bothell, Wash., announced that
it continued to generate accelerated growth at
retail during the final quarter of 2018, marking
a strong conclusion to the brand’s most successful
year-to-date, it says. Total all channel sales increased
71 percent for period 13 for the week ending Dec. 30,
2018. Essentia’s sales momentum was particularly
evident in the convenience channel, which was up
137 percent, it adds.
“Our goal heading into the year was to remain
focused and committed to our brand mission,
and thanks to our talented and dedicated team of
overachievers, we succeeded in making 2018 another
notable year for Essentia,” said Ken Uptain, chief
Coca-Cola releases financial results
T
he Coca-Cola Co., Atlanta, reported another
quarter of solid operating performance,
capping off strong financial results for the
year, it says. While reported net revenues declined
because of refranchising and currency headwinds,
the company delivered organic revenue (non-GAAP)
growth within its long-term target for the sixth
consecutive quarter, while also gaining value share
globally, it said.
“I am pleased with our strong organic revenue and
earnings growth in 2018. Our results demonstrate
progress in our transformation as a consumer-
centric, total beverage company and the power of
a more strategically aligned system,” said James
Quincey, chief executive officer of The Coca-Cola
Co., in a statement. “Coca-Cola has established a
strong foundation to capitalize on long-term growth
opportunities and drive sustained shareowner value.”
Net revenues declined 6 percent to $7.1 billion for
the quarter and declined 10 percent to $31.9 billion
for the year. Fourth quarter and full year results were
impacted by headwinds of 13 percent and 17 percent,
respectively, from the combined impact of currency
12 | Beverage Industry | MARCH 2019 | bevindustry.com
sustainability and government affairs, while shopping
for the products and services they need to run their
breweries, the association says.
The event will feature 84 educational seminars and
attendees can choose from 12 educational tracks to
personalize their schedules.
Attendees also will get a chance to hear from
keynote speaker Bruce Dickinson. Dickinson is
the lead singer of Iron Maiden, a commercial pilot,
brewmaster, entrepreneur and creative business
thinker. He was a pilot and marketing director for
Astraeus Airlines, a company that leased aircraft
to other carriers, and is the chairman and founder
of Cardiff Aviation, which specializes in heavy
maintenance of Airbus and Boeing commercial
aircraft. Dickinson will share the parallels between his
music and business careers, and the lessons you can
take away from both success and failure, it says. BI
executive officer and founder of Essentia Water, in a
statement. “With the rise in popularity and demand
in the premium bottled water category, it’s easy to
get excited about what’s on the horizon for 2019 as
we continue to grow our brand visibility amongst a
national audience.”
In 2018, Essentia generated nearly $196 million
in measured retail sales, growing at 59 percent over
2017, it reports. The brand captured an 8.3 percent
share of the premium water market and continuously
outpaced growth in the premium bottled water
category — a category that generated more than
$2.4 billion for the year, it says, citing data from
Chicago-based Information Resources Inc. BI
and the refranchising of company-owned bottling
operations, it says.
The company continued to strengthen its sparkling
soft drinks portfolio and build consumption rituals
through innovation, premiumization and revenue
growth management initiatives, it adds. In North
America, innovation in the Diet Coke brand, along
with the continued success of Coca-Cola Zero Sugar,
led to an 8-point acceleration in retail value growth for
the no-calorie sparkling soft drinks portfolio for the
year.
The company’s increased speed and agility,
coupled with the strength of its distribution system,
helped launch approximately 500 products across
multiple markets through the lift, shift and scale
strategy while also accelerating the elimination
of underperforming SKUs during the year. The
company also announced several key acquisitions
in 2018, including Costa Limited, which provides
a platform to build a global coffee business, and
a strategic partnership with BODYARMOR, one
of the fastest-growing beverage trademarks in the
United States. BI
 Category Focus By Taylor Karg

Health in a glass
Kombucha AS CONSUMERS CONTINUOUSLY BECOME WARY OF SUGARY BEVERAGES,

shakes up they are seeking out healthier substitutes. For many, ready-to-drink (RTD) teas
have become the answer. One sub-segment of RTD teas that seems to be appealing
RTD tea category to the masses is kombucha — a tea that has been fermented with bacteria and
yeast, and is rich with probiotics, antioxidants, amino acids and enzymes. Known
for its healthy-halo mantra, kombucha is moving away from a niche product to
one of the fastest growing categories in the beverage market.
A December 2018 Insights from New York-based
Nielsen confirms this fact. In its report, “Tops of 2018:
Organic” the research firm notes that the kombucha
category reached more than $412 million in sales in
2018, marking a 42 percent increase compared with the
previous year.
“Known only to a niche audience a few years
ago, today this probiotic and functional beverage is
winning the hearts of consumers across America,”
the Insights says.
MAINSTREAM AWARENESS
The better-for-you (BFY) beverage trend prominently
is driving growth within the category, experts say.
“[T]he strong 18 percent growth in the refrigerated
tea segment contributed to the [overall tea] market’s
bottom-line success,” Chicago-based Mintel’s
September 2018 “Tea and RTD Tea – US” report
explains. “Rapid BFY innovation, kombuchas in
particular, and premium positioning continue to align
refrigerated teas with consumer interest in fresher
products driving consumers to refrigerated products.”
Mintel references Purchase, N.Y.-based PepsiCo’s
2016 acquisition of KeVita as a likely contributor
to the mainstream awareness of kombucha among
consumers.
Roger Dilworth, senior analyst at New York-based
Beverage Marketing Corporation (BMC), also points to
the mainstream status of kombucha as a contributing
factor to its success. “The meta-trend of kombucha
fac
becoming more mainstream continues,” he says. “It has
be
evolved from a West Coast health food phenomenon
ev
to a broader audience of ‘regular’ people looking for a
health edge.”
he
The “health edge” of kombucha also can be
attributed to its growing success in the market.
att
“[P]roducts like some high-antioxidant green tea
“[P
beverages and kombucha have been designed to
be
specifically attract health-conscious customers; as a
sp
result, these products introduce RTD beverages into
res
markets where they may not have been prominent
ma
before, such as health food stores,” says Los Angeles-
be
based IBISWorld in its December 2018 “RTD Tea
ba
Production in the US” report.
Pr
“This simultaneous and synergistic development of
>>
draw of kombucha. “The conventional soda as well as
the craft beer categories continue to lose shelf space to
these new ‘better-for-you’ categories, such as traditional
kombucha and hard kombucha,” she says.
“The acceptance and placement of kombucha
in the conventional grocery channel has brought it
into the spotlight as people seek healthier beverage
alternatives,” she continues.
Several other factors including label redesigns, line
extensions and new flavor introductions have helped
the category proliferate, according to Basil Beshkov,
director of business development; Rick Mochulsky,
category manager; and Amelia Winslow, director
of nutrition at Torrance, Calif.-based Health-Ade
Kombucha.
The market has seen a number of label redesigns
from leading brands like Revive, Brew Dr. and Health-
Ade, introductions of new product lines from GT's
Living Foods, as well as the continued proliferation of
new flavors, Beshkov, Mochulsky and Winslow say.
“The expansion of product offerings and the
refinement of labels shows the category is continuing
to grow and get more competitive,” they say. “The
emergence of new entrepreneurs and businesses shows
that kombucha has become an established category, and
that interest in it is a global trend.”
The success of the RTD tea and kombucha category
not only comes from the rise in health-aware
consumers, but also from an increase in disposable
income, according to IBISWorld’s report. “[A]s
discretionary income increased steadily, it also boosted
industry revenue at a balanced pace,” it says. “As
industry revenue grows, new companies are rapidly
entering the industry.”
Health-Ade’s Beshkov, Mochulsky and Winslow
also highlight how increased consumer income has
affected the category. “Fermented beverages carry a
higher dollar ring than other beverages and have been
growing where other categories have declined,” they
say. “This is great for retailers, who have dramatically
expanded their kombucha sets, and for consumers,
who have more and better healthy beverage options.”
The rapid proliferation of kombucha has disrupted
the RTD beverage category. “With the exception of
bottled and sparkling water, many large beverage

The kombucha category has evolved from a
West Coast healthfood phenomenon to a broader
audience of everyday people looking for a health
edge, BMC’s Roger Dilworth says. (Image courtesy
of GT’s Living Foods)
product lines and new markets contributes to the [tea]
pr
industry’s overall growth,” it adds.
ind
Holly Lyman, queen bee at Cottonwood,
Ariz.-based Wild Tonic, also notes the healthy-halo
categories have seen long-term declines, whereas
kombucha has grown by more than 30 percent for each
year for the past decade,” Beshkov, Mochulsky and
Winslow say.
continued on page 16

14 | Beverage Industry | MARCH 2019 | bevindustry.com

 WEBINAR
April 3, 2019 2:00PM ET

STATE
OF THE
BEVER
AGE IN
DU S T R Y
2019
The beverage aisles of today have shown to be an accurate representation of the diverse
needs of today’s consumers. Whether its function, refreshment, alcohol or non-alcohol, the
North American beverage market is fulfilling consumer need states through innovative
products, packaging, processing methods and delivery vehicles. As beverage-makers
continue to adapt to these trends, the true winners are the American shoppers.

LEARNING OBJECTIVES:
» Find out which New Age Beverages are carving out a larger market share in the non-alcohol
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» Learn whether bottled water hit its plateau or whether the hydration beverage holds more
potential for growth
» Hear how the beer market is faring after years of contraction
» Find out what spirit and wine segments are capturing consumers’ dollars

Gary A. Hemphill Michael C. Bellas Brian Sudano Eric Schmidt Nathan Greene
Managing Director of Research Chairman and CEO Managing Partner Director of Alcohol Research Consulting Analyst,
Beverage Marketing Corporation Beverage Marketing Corporation Beverage Marketing Corporation Beverage Marketing Corporation Beverage Marketing Corporation

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 Category Focus

TEA OF THE FUTURE healthier alcohol-based drinks and even alcohol

When it comes to whose drinking the fermented teas,
consumption largely can be attributed to younger
generations, experts say. “Millennials consume
a tremendous amount of kombucha, as well as
Generation Z, who are both looking for products that
are healthier and contain less alcohol,” says Wild
Tonic’s Lyman.
“The idea of ‘social drinking’ has given way to a
younger generation who prefers to be plugged into
social media, instead of going out for a drink,”
she adds.
Health-Ade’s Beshkov, Mochulsky and Winslow also
put kombucha consumers into a similar profile, noting
they are healthy-engaged consumers. They also are
college-educated, have disposable income, live in cities,
and work in jobs in new industries. It is a group that
includes both men and women (slightly more female),
largely in the age range of 24-40, they add.
However, kombucha has the potential to reach
a wider audience, according to Mintel. “Forging
associations between teas [like kombucha] and specific
functions and even occasions, will resonate with a
growing group of consumers who actively seek out
means to manage their well-being, both emotional and
physical,” the report states.
>>
substitutes that can be consumed in an adult setting
likely will make this a trend, BMC’s Dilworth notes.
“Alcohol kombucha is the new ‘go-to’ beverage
for the younger generations and so it will be a
lot like craft beer or wine in America when those
sectors blossomed and came into their own,” Wild
Tonic’s Lyman says.
For example, in fall of 2018, Wild Tonic released
three varietals of its Hard Jun Kombucha: Wild
Love, Dancing Naked and Mind Spank. Each variety
features a 7.6 percent alcohol-by-volume content and
is fermented with certified organic fruit, herbs and
botanicals, the company says.
Health-Ade’s Beshkov, Mochulsky and Winslow
also see the budding potential for alcohol kombucha.
“The products are good, play on the same healthy
trends as kombucha, and touch an untapped alcohol
consumption occasion that regular kombucha (with
just a trace amount of alcohol from fermentation) isn’t
particularly well-suited for,” they say.
“Within a few years, you may be able to walk into
your favorite bar and find a handful of alcoholic
kombucha options, like you see with craft beer now,”
they add.
Looking to the future, experts predict that consumers

Wild Tonic offers a 7.6 percent alcohol-by-volume

As consumers seek out healthier non-alcohol RTD will find more kombucha innovation, expanded flavor
Hard Jun Kombucha in three varietals: Dancing
Naked, Mind Spank and Wild Love. (Image courtesy beverage alternatives, they likely are exploring similar offerings and distinctive packaging that will help
of Good Omen Bottling LLC) options in the alcohol category. The trend toward brands stand out on store shelves. BI

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 3RD GEAR BOURBON OLD FASHIONED
Yahara Bay Distillers, Fitchburg, Wis.
Telephone: 608/275-1050
Internet: facebook.com/3rdgearoldfashioned YÖNALÉ BIRCH WATER
Distribution: Select markets Yönalé, Hoboken, N.J.
Telephone: 651/ 414-1740
Internet: yonale.com
Distribution: National

PUT IT IN GEAR
Yahara Bay Distillers offers 3rd Gear, a blended and
bottled ready-to-drink (RTD) cocktail designed
to be similar to an old-fashioned cocktail.
3rd Gear yields a shimmery copper color with
orange peel aromas, the company says. The
bourbon is nuanced with notes of Door County
cherries, toasted with walnuts, aromatic spices
and botanicals, it adds. The 750-ml alcohol is
bottled at 30 percent alcohol by volume and
has a suggested retail price of $19.99.
SUSTAINABLY
SOURCED HYDRATION
Yönalé launched its self-titled line of fresh birch water,
offering consumers a clean, plant-based beverage
designed to boost the immune system, it says.
Sustainably sourced from the forests of the Finnish
archipelago, Yönalé Birch Water is USDA certified
organic, non-GMO, and keto- and paleo-friendly, it adds.
Packaged in 11.2-ounce Tetra Pak cartons, the plant-
based beverage contains 3 grams of sugar. Available
nationwide in Original and Bilberry, Yönalé Birch Water
has a suggested retail price of $3.99 for a carton.

VITACUP INFUSED FUNCTIONAL COFFEE

VitaCup Inc., San Diego
Telephone: 888/857-8482
Internet: vitacup.com
Distribution: National

A DAILY DOSE
VitaCup Inc. launched its self-titled line of vitamin-infused single-serve coffee pods in five blends: Slim
Blend, Probiotic Blend, Beauty Blend, Genius Blend and Green Tea. VitaCup uses premium quality
coffee beans and tea leaves to create blends infused with high-quality vitamins and superfoods
designed to boost a consumer’s day, the company says. Each blend contains B and D vitamins, and
antioxidants to naturally boost energy, metabolism and mood, it adds. Available nationwide, VitaCup
is packaged in 10-count boxes for a suggested retail price range of $9.99-$12.99.

SURFRIDER RUM
Surf City Still Works, Huntington Beach, Calif.
Telephone: 714/718-7157 KOIA KETO
Internet: surfcitystillworks.com Koia, Los Angeles
Distribution: Select markets Internet: drinkkoia.com
Distribution: Select markets and online

RIDE THE WAVE

Surf City Still Works introduced its latest spirit:
Surfrider Rum. Distilled from Jamaican sugar
cane, Surfrider Rum features notes of banana,
pineapple, papaya, mango and coconut, the
company says. The 750-ml bottle features a
42.5 percent alcohol-by-volume content and is
available in select markets. Surfrider Rum has
a suggested retail price of $30.
TO SUBMIT A NEW PRODUCT FOR CONSIDERATION,
VISIT BEVINDUSTRY.COM/NEWBEVERAGEPRODUCTSUBMISSION
KETO-INSPIRED
DESSERT
Koia unveiled Koia Keto, a new line of
100 percent plant-based protein beverages
in three flavors: Chocolate Brownie, Cake
Batter and Caramel Crème. The dessert-inspired line offers a convenient
indulgence to complement consumers’ ketogenic diets, the company says.
Koia Keto is made with nutrient-dense ingredients such as coconut milk and
MCT oil to provide sustained energy and deliver the desired ketosis ratio of
74 percent fat, 18 percent protein and 8 percent net carbohydrates that help
accelerate the process, it adds. Each flavor contains 12 grams of protein
with no added sugar. The beverages exclusively are available at Whole Foods
Market stores and at drinkkoia.com for a suggested retail price of $4.99.

18 | Beverage Industry | MARCH 2019 | bevindustry.com

 Sponsored By
RABBLE ROUSER RYE WHISKY
Catoctin Creek Distilling Co., Purcellville, Va.
Telephone: 540/751-8404
Internet: catoctincreekdistilling.com
Distribution: Select markets
SHOOT YOUR WHISKY SHOT
To celebrate its 10th anniversary, Catoctin Creek
Distilling Co. launched its latest “Bottled in Bond”
spirit: four-year-old Rabble Rouser Rye Whisky.
Rabble Rouser Rye features a flavor profile of clover
honey, uncured bacon, earthy spice, sandalwood,
white peaches, nectarines, peanuts and a hint of
mesquite, the company says. The 50 percent alcohol-
by-volume whisky is available for purchase at the
distillery and at select retailers across the distillery’s
distribution footprint, it says. Rabble Rouser has a
suggested retail price of $95.99 for a 750-ml bottle.
VIBE ORGANIC ELECTROLYTE BLACK TEA
MindFull Inc., Boulder, Colo.
Internet: mindfull.com
Distribution: National
WELCH’S SMOOTHIE POUCHES
Big Easy Blends, New Orleans
Telephone: 504/467-1606
Internet: bigeasyblends.com
Distribution: Select markets
SMOOTHIES-TO-GO
Big Easy Blends extended its ready-to-drink (RTD) pouches in
new Welch’s Smoothies. The 6-ounce individually packaged
frozen smoothies are available in three flavors: Peach
Mango, Strawberry Banana and Mixed Berry. All flavors are
dairy free, contain 8 grams of protein and 3 grams of fiber,
the company says. Available in select markets, Welch’s
Smoothie Pouches have a suggested retail price of $2.79 for
an individual pouch.
Developers of some of the
world’s best known brands
allenflavors.com
HORIZON ORGANIC HIGH PROTEIN MILK
Horizon Organic, Broomfield, Colo.
Telephone: 888/494-3020
Internet: horizon.com
Distribution: National
GOT MILK?
Horizon Organic, a division of Danone North America, launched its latest milk product:
Horizon Organic High Protein. Available in three flavors, Reduced Fat Chocolate,
Reduced Fat Plain and Vitamin D, Horizon Organic High Protein contains 12
grams of protein in each 8-ounce serving, the company says. The milks also are
high in vitamin D, calcium, riboflavin, vitamin B12 and phosphorus, it adds.
Available nationwide, Horizon Organic High Protein are USDA organic, non-
GMO and have a suggested retail price of $5.99 for each 64-ounce carton.
FEEL THE VIBE
MindFull Inc. introduced Vibe, a ready-to-drink
organic electrolyte tea. Vibe is made with artesian
spring water containing naturally occurring
electrolytes and minerals, the company says. It also
contains 48 mg of naturally occurring caffeine from
USDA-certified organic black tea, 1 gram of sugar
and 20 calories in each 500-ml serving. Packaged
in 500-ml Tetra Pak cartons, Vibe is available in
four flavors: Mint, Lemon, Peach and Pomegranate.
SPRITE LYMONADE
The Coca-Cola Co., Atlanta
Telephone: 800/643-8151
Internet: sprite.com
Distribution: National
THE PERFECT COMBO
Sprite, a brand of The Coca-Cola Co., introduced Sprite
Lymonade, which is made with 1 percent real juice
and blends original Sprite flavors with a splash of
lemonade, the company says. Available nationwide,
Sprite Lymonade is available in 20-ounce PET
bottles and is line-priced with other Sprite products.
bevindustry.com | MARCH 2019 | Beverage Industry | 19
Sweegen.com
 Reducing sugar in alcoholic beverages
Today’s consumers are more closely eyeing the sugar content not only in their favorite soda
or yogurt but also in their favorite after hours drink. According to the TTB (Alcohol and Tobac-
Tobac
co Tax and Trade Bureau) manufacturers traditionally have to include carbohydrate content
but not the sugar content on their labels. But change is coming. More and more manufactur-
ers now voluntarily show added sugar on the label and product developers are looking for
ways to reduce sugar and calories, without altering the taste.

The perfect way to do this is to use stevia. Stevia can be used either as sweetener, to reduce
up to 100% sugar, or as flavor modifier, to reduce around 30-40%. Bestevia® Reb M, Reb D
and e+ are three perfect products to reduce sugar and calories in alcoholic beverages.
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T
oday’s food and beverage industry is constantly reinventing itself with the
launch of new products, using new and healthier ingredients. This is driven
by consumers who have started to closely eye the ingredient labels, looking
at fat, carbohydrates and sugar content, but also searching for healthier-for-you
ingredients with a functional purpose.
Craft brewers are at the forefront of such innovation when it comes to craft brew
products whether alcoholic or non-alcoholic. They are typically first adopters
of new ingredients and new technologies, and incorporate them into their
marketing and the mystique of their new products. With a much faster product
development cycle, craft brewers are usually able to launch new products within
a minimal timespan, using this advantage to become first movers, setting
industry trends.
As the craft brewing industry is producing alcoholic and non-alcoholic
beverages, they are competing in different fields of the industry, with different
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best tasting product with benefits that meet consumer expectation.
Root beers, cream soda’s, birch beer, ginger beers are well liked by all
demographics but the need to cut down on calories and give consumers low to
no sugar options is favorable to consumers. The competition is fierce in reducing
added sugar in brewed alcoholic beer and fruit ale products and goes as far
as calling each other out on using too much added sugar. Some companies
have started to voluntarily place nutritional and ingredient statement on their
products as to differentiate each other from their competitors.
Next generation stevia sweeteners, such as Reb M and Reb D have generated a
great interest in the alcohol industry in general, and the craft brewers’ industry
specifically. Their ability to reduce the amount of added sugar and calories
is coupled with the ability to maintain the well-loved sweet taste. Sweegen’s
non-GMO stevia sweeteners help to supplement the sweetness preferred
by consumers, as brewmasters innovate in delivering brewing bases that
incorporate natural sugars from the brewing process.
In addition to Reb M and Reb D, Sweegen also offers its newest product,
Bestevia® e+, which was specifically created for non-alcoholic beverages but can
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generation stevia sweeteners have a sugar-like taste profile with no aftertaste.
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bioconversion process that supports today’s non-GMO trends, especially craft
brewed beverage connoisseurs whom are more apt to follow.
 Annual Beer Report

March 2019

MAPPING OUT THE

BEER MARKETʼS
FUTURE

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A growing
Domestics’
initiative for beer
WITH DOLLAR SALES REACHING APPROXIMATELY $112 BILLION, THE U.S. BEER
market continues to be one of the top categories based on dollar sales in the overall
dominance remains
beverage industry, according to Chicago-based Mintel. However, although dollar sales
despite declines have seen slight increases, volume sales have been challenged in recent years.
“The beverage alcohol market continues to evolve performance in 2018. “There are fewer households that
with beer losing share to both spirits and wine,” says purchased the beer category in 2018 compared to 2017,
Brian Sudano, managing partner for New York- so there’s a decrease in household penetration — just
based Beverage Marketing Corporation (BMC). “The about four-tenths of a percent, which is small,” he says.
continued splintering of consumer’s considered brand “However, there is a decrease in penetration.”
set that includes spirits and wine in more occasions will
continue to put pressure on beer per caps.” COSTS OF PREMIUMIZATION
Because of this splintering, members of the beer As the beer market looks to increase volume growth,
community are looking to tackle these challenges many experts note the impact that the mass market
through a group effort. At its 81st Convention, the domestic beer segment will have on that goal.
National Beer Wholesalers Association unveiled the “Many argue that the beer category cannot return
Beer Growth Initiative (BGI), an industry-wide effort to to health in the short term without a healthy premium
improve the category health of the beer industry. core,” Livingston says. “… This segment, premium
In partnership with the Brewers Association and beer, makes up 40.5 percent of the beer category.”
>>

Domestic super-premium brands like

the Beer Institute, the effort is designed to identify He adds that when adding the sub-premium
Michelob Ultra have positively impacted
the domestic beer market. (Image opportunities to grow the beer category while bringing domestic beer segment, these two segments make up
courtesy of Anheuser-Busch InBev) together large brewers, small brewers, distributors and approximately two-thirds of beer market share. “These
industry experts to are very large segments and they’re very important to
address beer’s steady the health of the beer category,” Livingston says.
Top domestic premium beers decline during the However, premium beer declined 5.1 percent
(Brand family) past few years, the in volume for the 52 weeks ending Dec. 30, 2108,
association says. according to IRI data.
This initiative Among the current trends impacting the domestic
DOLLAR % CHANGE VS. CASE SALES % CHANGE VS.
SALES PRIOR YEAR PRIOR YEAR comes as the off- premium beer market, BMC’s Sudano notes that
premise U.S. beer premiumization continues to be at the forefront. “The
Bud $7,320,205,119 -5.3 342,680,493 -6.2
market decreased long-term trend is to trade up,” he says. “Recently
Coors $2,513,932,983 -3.8 119,658,166 -4.8
0.3 percent in terms of the majors have gotten aggressive on price within the
Miller Lite $2,010,961,224 -1.2 96,762,133 -2 volume sales in 2018 value segment making beer more competitive to price-
Yuengling $388,688,707 1.3 16,638,184 -1 while being up sensitive consumers. This has resulted in improved
Rolling Rock $129,803,897 -9 7,855,367 -7.9 1.8 percent in dollar value beer trends but worsening of the premium
sales for that same domestic beer segment. Overall, this is negative for
Total sales* $12,601,135,426 -4.2 595,819,788 -5.1
time period, says domestic dollar sales.”
*Includes brands not listed.
Patrick Livingston, IRI’s Livingston also details the impact of
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass
director of client premiumization. “We think that consumers are
merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 30, 2018.
insights of beer, choosing more premium beer options,” he says. “We
wine and spirits also think they are increasing their consumption
Top domestic super-premium beers for Chicago-based of spirits and reducing consumption of some beer
(Brand family) Information products. These are longer term trends; they’ve been
Resources Inc. (IRI), around for a while, we call it the premiumization of
DOLLAR % CHANGE VS. % CHANGE VS. citing the market the alcohol category. It might be a positive for beverage
SALES PRIOR YEAR CASE SALES PRIOR YEAR research firm’s sales alcohol in total, but it specifically places a strain on the
Michelob $2,121,572,436 18.8 78,938,379 15.9 data across total multi- premium beer segment.”
outlets including the Supporting this assessment, Livingston points out
Bud Specialty $707,501,836 3 23,022,054 0.3
convenience channel that household penetration of premium beer was
Landshark $45,870,518 -1.2 1,681,516 -1.1 sector. 18.9 percent in 2018 compared with nearly 20 percent
Budweiser $36,493,453 703.8 1,170,489 711.8 Analyzing this in 2017. However, he notes that the dollars that each
Reserve Collection
performance, household is spending on premium beer each year is
George Killian's $12,945,080 -13.8 485,717 -14.1 Livingston notes that flat, highlighting again the penetration impact.
Total sales* $2,943,102,055 15.2 106,292,688 12.9 a number of factors Nonetheless, not all domestic segments were down
*Includes brands not listed. are contributing to for 2018. The domestic super-premium beer segment
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass
the beer market’s was up 12.9 percent in terms of volume for 2018, based
merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 30, 2018. relatively flat on IRI data. BI

26 | Beverage Industry | MARCH 2019

2016 | bevindustry.com
 ADVERTORIAL
HUSKY INJECTION MOLDING SYSTEMS
500 QUEEN ST. SOUTH
BOLTON, ON L7E5S5 CANADA
COMPANY WEBSITE: HUSKY.CO
R
ethink your Beer Bottle – your Beer in PET
Although polyethylene terephthalate (PET) might seem like an
unconventional choice for packaging beer, the benefits over alternative
materials are significant.
Bottling beer in PET provides a lightweight, unbreakable package and keeps
beer colder for longer periods of time, ensuring a satisfactory consumer
experience, each and every time. Plastic provides numerous advantages,
including the ability to design more imaginative, appealing packages that stand
out on store shelves. Additionally, producing plastic bottles provides increased
sustainability, included a reduced carbon footprint and lower greenhouse gas
emissions. Consumers expect a reliable, consistent experience when they drink a
craft beer beverage — by packaging beer in PET over glass or cans, you are able
to offer your customers an unbreakable, unbeatable experience.
Unique and Unbreakable
Currently, the options for where to sell glass bottles are limited due to concerns
over breakage and injury. By bottling beer in PET, you can significantly expand
your reach, while maintaining your existing bottling lines. Imagine all of the
non-glass venues where beer is consumed — pools, beaches, concerts, sporting
events, golf courses. Bottling in PET allows you to grow your business by selling
an unbeatable consumer experience into venues traditionally unavailable, while
maintaining existing bottling lines depending on the design of your application.
Breakthrough with Revolutionary
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Husky Injection Molding Systems’ revolutionary Multi-Layer Technology is
able to offer the industry this level of differentiation, sustainability and new
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a memorable consumer experience. We’ve combined the capability of our
industry-leading PET preform manufacturing systems with revolutionary melt
delivery technologies in order to inject precise amounts of barrier material
exactly where it is required — offering you a package that still protects the
freshness of the beer, while providing all of the advantages of PET.
Multi-Layer Technology can enable you to produce more imaginative packages
that stand out on store shelves, giving you additional opportunities to
differentiate your product beyond a catchy label. With a variety of closure
options, colors, effects, gradients, shapes and sizes, the possibilities are
endless. These attractive packages maintain the performance consumers
expect from a beer bottle, preserving freshness and taste and keeping beer
cold for longer than traditional packaging. Husky offers the ideal combination
of product protection and package design, including innovative decorative
capabilities.
We also understand that sustainability is a critical factor in today’s
purchasing decisions. Producing beer in PET provides increased environmental
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precisely dose the barrier layer, we are able to achieve the required level
of product protection while using less material than conventional barrier
technologies. This, combined with the potential to use recycled PET in the
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Husky’s revolutionary Multi-Layer Technology makes this all possible. As an
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We believe the future of beer packaging is PET and having an integrated
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 Special Report By Jessica Jacobsen

SPONSORED BY:

Claiming its share

Import beers IN RECENT YEARS, THE IMPORTED BEER MARKET HAS OUTPACED THE OVERALL
beer market in dollar and case sales. Based on recent insights, the segment’s
continue to gain
performance continued throughout 2018 and experts forecast a positive impact
ground on the market in 2019.
“Our data suggests imported beer is growing quicker
than the domestic beer category and this trend is
expected to continue over the next five years, especially
[because] Mexican brands are performing very
strongly,” says Chris Lombardo, lead industry analyst
for Los Angeles-based IBISWorld.
Patrick Livingston, director of client insights of
beer, wine and spirits for Chicago-based Information
Resources Inc. (IRI), highlights how the popularity of
import beer in the United States helped it post strong
gains last year.
“The import growth is largely driven by Mexican
imports,” he says. “Mexican imports make up 72.3
percent of all import sales, and imports themselves are
a very important segment. They make up a 20 share of
the beer category based on dollars and imports are up
1.1 share point in 2018. Actually, imports was the largest
gaining segment in 2018, so it’s very much a growing
segment and very important.”
For the 52 weeks ending Dec. 30, 2018, import
beer dollar sales were up 7.4 percent while case
sales increased 5.2 percent in total U.S. multi-outlets,
including convenience stores, based on IRI data.
Unlike other beverage segments, import beer has not
derived its growth from new brands, but instead from
the prominence of established Mexican beer brands,
Livingston adds.
>>
industry, accounting for more than 65 percent of
industry imports,” he says. “This is partially due
to its proximity to the United States and the North
American Free Trade Agreement, which makes
importing from the country relatively easier than
other destinations.”
In 2018, Corona, a brand of Victor, N.Y.-based
Constellation Brands Inc., expanded consumers
Mexican beer options with the national release of
Corona Premier, the first innovation for the brand in
29 years.
“Corona is a brand that consumers have loved for
more than three decades in America, and we’re excited
to add a new brand to our family,” said John Alvarado,
vice president of marketing for Corona, in a statement
at the time of the roll out. “Corona Premier offers the
light beer experience men 35-plus have been waiting
for. These guys have upgraded just about every brand
in their life since college — now it’s time to upgrade
their beer, too.”
The light beer was designed for the mature,
sophisticated beer consumer looking for better-for-
you light options, the company says.
However, research shows that light options is not
the only product attribute that consumers want from
Mexican beers.
Last fall, Dos Equis, a brand of White Plains,

Mexican beer sales are outpacing the

imported beer segment as they were up nearly 3
Brian Sudano, managing partner for New York-based N.Y.-based HEINEKEN USA, announced the
percent in 2018, IRI’s Patrick Livingston states. Beverage Marketing Corporation (BMC), also details brand was debuting Dos Equis Mexican Pale Ale
(Image courtesy of Constellations Brands Inc.) the importance that Mexican imports have had on the (MPA), a traditional Pale Ale with a Mexican
beer segment. twist that is fuller bodied and delivers a subtle
Top imported beers “Mexican imports kick of heat. The sessionable Mexican Pale Ale
have been outpacing was available on draft nationally at sports bars
(Brand family)
market,” he says. “We and at Buffalo Wild Wings (BWW) as part of the
expect this trend to restaurant’s Brew Series from September through
DOLLAR % CHANGE VS. CASE SALES % CHANGE VS. continue as brands have early November. Following its successful run on-
SALES PRIOR YEAR PRIOR YEAR hit significant scale, premise, HEINEKEN USA announced that MPA
Corona $2,370,454,072 11.6 72,203,831 9.5 which commands more now is available off-premise in Texas with plans to
Modelo $1,974,795,285 17.9 63,641,365 15.4 shelf space. Recent expand to other Sun Belt states.
Heineken $794,783,627 -1.5 24,557,531 -3.1 innovation and market HEINEKEN USA also recently launched Tecate
activation has also drove Titanium, a higher alcohol-by-volume (ABV) spinoff
Dos Equis XX $382,850,606 -1.8 11,947,589 -2.5
incremental volume and from its Mexican import Tecate brand. Tecate
Stella Artois $367,756,681 -0.8 10,267,589 -0.9
driven sales.” Titanium boasts a 7.5 percent ABV content packaged
Tecate $202,315,496 -11.4 9,913,670 -11.7 According to in a 24-ounce can.
Labatt $152,248,823 -6.8 8,135,666 -7.3 IBISWorld’s Lombardo, When looking at country of origin, IRI’s Livingston
Guinness $144,027,893 0.9 3,876,073 -1.3 Mexican beer imports highlights that Mexican imports were up 2.8 percent in
account for nearly dollar sales, but all others are declining.
Pacifico $125,180,970 8.4 3,969,427 6.3
two-thirds of the U.S. “Among imports, the only country of origin that is
Foster's $75,048,784 0.7 2,860,860 -0.6
import beer market. growing is the Mexican imports,” he says. “I find that
Total sales* $7,059,725,796 7.4 226,620,942 5.2 “Currently, Mexico beers from Holland, Belgium, Canada, U.K., Ireland,
*Includes brands not listed. accounts for the highest Germany, Australia, Asia, Latin America, which are
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass share of imports the top import sub-segments, are all declining to
merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 30, 2018. in the breweries some degree in 2018.” BI

28 | Beverage Industry | MARCH 2019

2016 | bevindustry.com
 ADVERTORIAL
ROBERTS POLYPRO
5416 WYOMING AVE.
CHARLOTTE, N.C. 28273
COMPANY WEBSITE: ROBERTSPOLYPRO.COM

A
s brewers grow their brewhouses, the economics of bringing packaging operations
in-house begins to make more economic sense. At the same time, we see more craft
beer being sold commercially in can packs than ever before. These factors have
greatly contributed to the growing demand of can handle carriers. However, not all can
handles are created equal. After listening to the needs of our customers and assessing
consumer usage trends, we developed a can handle solution that not only maintains a
secure holding strength as measured by static drop tests, but also is engineered in a
way that makes it easy to remove cans from the carrier when ready to drink. Because can
packs are the first touch point consumers have with our customers’ beer, we wanted to
design handles that minimized the possibility of the beer to be over-shaken. Basically, a
handle that kept beer cans from falling to the floor but then didn’t require consumers to
yank them out of a ring handle with all their might.

In addition, these handles can be easily reused to fit the empties back in when done. top, we eliminate the ick factor from occurring. This design also provides functional
With our handles being 100 percent recyclable, consumers are able to conveniently recycle packaging efficiencies for brewers. Because the handles are easier to apply, this leads to a
their empty pack wherever they may be. measurable application time savings for those using manual applicators.

A defining difference in our can handle carriers can be seen in the appearance, utilizing To apply handles, Roberts PolyPro has options for every level of canning output. For
an open top design. We did this for a number of reasons, one of the bigger reasons smaller operations, we have the manual applicator that makes a lot of sense. However, as
being that with closed tops you run the risk of moisture accumulating between the can brewers grow and their need to automate increases, we can continue to support them all
top and handle which can negatively impact the beer’s taste or odor. By having an open the way up to our automated high-speed can carrier applicator machines.

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 Special Report By Jessica Jacobsen

SPONSORED BY:

A sense of style
Emerging beer IN THE TRAILER LEADING UP THE SEASON 17 PREMIERE OF BRAVO TV’S

styles, f lavors help “Project Runway,” host Karlie Kloss details how the fashion industry has changed
and the new season will ref lect that evolution. Just as styles have evolved during
craft segment the past 20 years in fashion, so have the styles in the craft beer market.
“New beer styles are becoming popular largely due
to younger consumers’ interest in diversifying their
beverage consumption,” says Chris Lombardo, lead
industry analyst for Los Angeles-based IBISWorld.
“This provides brand owners with the opportunity to
try new and differing styles of beers without as much of
a risk alienating their key markets as in the past.”
Among the styles that are experiencing measureable
growth are sour beers. Patrick Livingston, director of
client insights of beer, wine and spirits for Chicago-
based Information Resources Inc. (IRI), notes that the
beer style’s sales are up nearly 40 percent.
“I think that craft brewers are looking to introduce
new styles to continue to keep the segment fresh for
the marketplace,” he says. “Craft beer consumers are
interested in choice and a unique taste portfolio that
will allow them to experience new beers and share that
experience with their friends.
“I think the idea of sour growing is largely because
sour is very well differentiated from the other craft
beer styles in terms of its taste profile,” Livingston
continues. “Thus, it helps add to the craft beer
drinker’s portfolio, if you will, and allow them to have
more taste experiences as they are trying new craft
beers and new styles.”
Livingston adds that style innovation is a key
Sour beer styles are up nearly
>>
styles and therefore do not participate in the craft
category.”
In its October 2018 report titled “Beer and Craft Beer
– US,” Chicago-based Mintel details the importance of
“style” when beer consumers are selecting products.
“Style is the second most important factor
influencing beer choice, and ‘better selection of styles’
is the leading reason driving increased consumption
among those who have increased their consumption in
the past year,” the report states. “Open-end responses
included in our custom consumer survey indicate
consumers may feel increasingly knowledgeable about
beer and, thus, are growing more comfortable in the
category. Engaged beer drinkers (including younger
consumers and craft drinkers) place a significantly
higher-than-average level of importance on style,
suggesting that messaging that gets specific about the
beer style and its components’ impact on the flavor and
drinking experience may find appeal.”
Although varying styles can offer more opportunities
for craft beer, the top style remains IPAs, which account
for a 31.5 percent share of the craft beer segment, IRI’s
Livingston says. Additionally, sales of the beer were up
12.5 percent, he notes.
Like any emerging beverage segment, craft beer
caught the attention of larger players that sought

component to success of the craft beer segment. For to realize the benefits. “While the number of craft
40 percent in sales, IRI’s Patrick
Livingston says. (Image courtesy example, he calls attention to craft brewers that have breweries continues to expand at substantial
of Upslope Brewing Co.) developed hazy IPAs, a lighter version of the traditional rates, many older players in the segment are
IPA; lagers; and brewing being acquired by global breweries,” IBISWorld’s
with coffee ingredients. Lombardo says. “For instance, Magic Hat Brewing
Top craft beers Brian Sudano, Co., Ballast Point Brewing Co. and Lagunitas
(Brand family) managing partner Brewing Co. were once considered significant players
for New York-based in the segment. Now, these breweries are owned by
Beverage Marketing major beer brands and are no longer classified as
DOLLAR % CHANGE VS. CASE SALES % CHANGE VS.
SALES PRIOR YEAR PRIOR YEAR Corporation (BMC), craft breweries.”
echoes similar Although some craft brewers have joined forces
Blue Moon $334,297,713 -1.9 9,907,721 -3.4
sentiments about the with global brewers, local craft breweries remain in
Samuel Adams $256,654,585 -7.2 7,607,906 -8.1 opportunities that beer vogue to help fill consumers’ thirst for new beers and
Sierra Nevada $252,064,642 3.2 7,171,843 1.2 style differentiation can styles.
New Belgium $201,593,640 -3.3 5,521,410 -7.9 offer to craft brewers. “We also see there is continued growth in smaller
Lagunitas $182,753,832 0.7 4,748,144 1.6
“As craft brewers try craft brewers,” IRI’s Livingston says. “I believe that
to penetrate mainstream there is a large local piece to that, meaning that the
Leinenkugel $151,680,816 -16 4,791,078 -16.9
Specialty consumers that seek smaller craft brewers tend to cater to a local market.
easier-to-drink beers, They are very strong. Any craft beer looking to
Shiner $132,941,774 -2.6 3,969,444 -3
other styles will become expand to a broader distribution faces the fact that
Founders $108,183,412 32.4 3,387,061 37.8
more prevalent to they will be launching their product in new markets
Shock Top $92,058,148 -17.2 3,147,277 -13.8 include sours and that are not local home turf and therefore they tend
Stone $79,823,404 16.9 1,753,380 10.8 lagers,” he says. “[They] to have difficulty in maintaining high sales rates and
Total sales* $4,209,673,166 2.5 111,921,039 1.2 broaden the consumer velocities as they expand into new markets. I think
*Includes brands not listed. base by attracting beer that is why smaller craft brewers are doing well.
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass
consumers that reject Because it’s a little bit easier to maintain higher sales
merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 30, 2018. more complex beer rates and velocity on your home turf.” BI

30 | Beverage Industry | MARCH 2019

2016 | bevindustry.com
 ADVERTORIAL
RYSON INTERNATIONAL INC.
300 NEWSOME DRIVE,
YORKTOWN, VA 23692 Ryson Vertical
COMPANY WEBSITE: RYSON.COM
Conveying Solutions
Ryson Spiral Conveyor product line is gaining acceptance in
the craft beer and bottling industries.

T
he Ryson Mass Flow Spirals are ideal for canning and bottling operations where
units need to be conveyed vertically in mass. Its ability to handle cans, jars and
bottles — full and empty, makes it a versatile machine perfect for craft beer
industry. Products are conveyed up or down in a continuous single file or mass flow at
a rate of up to 2,000 units a minute. They are able to provide space-savings because
of their small footprint. Use of the Ryson Mass Flow Spiral Conveyor in conjunction
with either high or low-level bulk de-palletizers is a common application in the craft
beer market.

The Ryson Case Spiral is a high-speed reliable method to vertically transport

packaged products up or down in a continuous flow. It is an ideal way to transport
cartons or cases to either the warehousing, shipping or palletizing areas. All
Ryson Spiral Conveyors are based on a new and innovative technology, offering
many features and benefits. Ryson Spiral Conveyors need less floor space than
conventional conveyors and are also faster and more reliable than any elevator or
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Maintenance and down-time are minimized with these reliable machines. Between
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Ryson has the Right Vertical Conveying

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Whether you are handling cases, trays and packs or
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 Special Report By Jessica Jacobsen

SPONSORED BY:

A spiked revolution
Hard seltzers fuel CALORIE-COUNTING FANATICS OFTEN CAN BE HEARD TELLING NEW RECRUITS
not to forget alcohol when adding up their daily calorie consumption. As beverage
FMB segment
alcohol manufacturers seek out ways to provide a low-calorie solution, it seems as
though the latest craze to hit the flavored malt beverage (FMB) segment is fulfilling
that need state.
“Hard seltzers are raising the bar around perceived
health and wellness and attracting much of the dollars
spent in the space,” says Brian Sudano, managing
partner for New York-based Beverage Marketing
Corporation (BMC).
Sudano adds that the perception of lower calories
and the “better-for-you” halo have been driving
innovation in the segment.
Tracking FMBs as part of the ready-to-drink (RTD)
mixed spirit production market, Chris Lombardo, lead
industry analyst for Los Angeles-based IBISWorld,
details the impact that health and wellness is having on
these products.
“RTD spirits are a close substitute for beer and
wine; therefore, industry demand is linked to the
fluctuating popularity of other types of beverages,”
he says. “Although research has been published
suggesting the potential cardiac benefits of moderate
wine consumption, RTD spirits do not show any
potential health benefits. However, the industry has
gradually increased its appeals to the health-conscious
consumer by making lower-calorie drinks, cocktail
>>
achieved a 2 point share in the U.S. beer category in
2018, based on IRI-measured channels. “That actually
surpassed the cider segment, which has 1.8 share points
using the same share point,” he says. “Hard seltzers
also make up a third of total FMB sales, so we believe
that hard seltzers are having a major impact on the FMB
segment, and we also believe, as we are watching these
products very closely, these products are beginning to
form what appears to be a distinct segment.
“Hard seltzers are bringing flavor into the better-
for-you space, which is an important cross section
[that] we are finding today,” Livingston continues.
“Consumers are demanding products that are
better for them, fewer calories, fewer carbs, better
ingredients and they’re also looking for flavor. With
hard seltzers, we do believe that this segment and
these brands are delivering on this cross section,
which is products that are slightly better for you but
also products that are bringing you flavor and taste
that can be enjoyed as well.”
Within hard seltzers, three brands posted triple-
digit growth for the 52 weeks ending Dec. 30, 2018,

Hard seltzers have surpassed hard ciders in terms blends and recipes.” in total U.S. multi-outlets with convenience stores.
of share of the beer category. Based on IRI data, hard
When it comes to success within the FMB segment, Those brands are White Claw, a brand of Mark
seltzers now account for a 2 point share of the beer
market, IRI’s Patrick Livingston says. (Image courtesy Patrick Livingston, director of client insights of beer, Anthony Brands Inc., with 251.5 percent volume
of Braxton Brewing Co.) wine and spirits for Chicago-based Information growth; Truly Spiked & Sparkling, a brand of The
Resources Inc. (IRI), Boston Beer Co., which grew nearly 200 percent in
highlights four main volume; and Spiked Seltzer, a brand of Anheuser-
Top f lavored malt beverages product attributes. Busch InBev, which posted a case sales increase of
(Brand family) “We see that lightly more than 145 percent.
flavored products do Hard seltzers also seem to benefit from its broad
very well. We find appeal since the sub-segment shows roughly a 50-50
DOLLAR % CHANGE VS. CASE SALES % CHANGE VS.
SALES PRIOR YEAR PRIOR YEAR that products with share when it comes to male versus female consumers,
lower calories do Livingston says. “It may drive back to the socialization
Smirnoff $341,279,205 14.8 9,674,574 16.3
very well; also lower of the ability to appeal to a mixed group and more social
Twisted Tea $323,631,885 21.8 10,087,575 19.8 sugar; and brands that occasions where there is a mixed group involved,” he
Mike's Harder $303,274,280 11 9,040,109 9.7 are social or create a explains. “Therefore, creating an opportunity for both
Mike's Hard $265,205,086 -3.1 7,361,188 -4.9 social opportunity,” he male and females to enjoy the product.”
Bud Light
explains. “Generally Although hard seltzers have been a growth driver
Lime PAB $252,532,954 -15.2 7,726,731 -10.6 lighter products that for FMBs, Livingston notes that it is not the only sub-
Redd's $230,745,912 -18.7 7,023,993 -20 are more social-able segment helping the market.
tend to be doing very “If we remove hard seltzers from FMBs, the segment
White Claw $194,505,683 241.7 5,846,976 251.5
Hard Seltzer well in the flavored is still growing without hard seltzer, which is good to
Four Loko $145,348,604 -5.4 4,149,862 -7 malt beverage segment. know,” he says.
I think that we can BMC’s Sudano also highlights the numerous
Truly Spiked $131,439,528 178.8 4,144,246 199.8
& Sparkling group a lot of those attributes contributing to the FMB market’s success.
products together into “[The] amount of innovation in [the] category
Steel Reserve $70,708,453 18.2 3,090,397 18.9
what we’re calling continues to accelerate; better product line
Total sales* $2,555,899,775 10.7 76,352,763 12.2
the hard seltzer sub- segmentation from major players like Diageo;
*Includes brands not listed. segment.” improved control over SKU management at retail; [and]
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass Livingston explains higher alcohol alternative in FMB format as offered by
merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 30, 2018.
that hard seltzers Four Loko,” he says. BI

32 | Beverage Industry | MARCH 2019

2016 | bevindustry.com
 ADVERTORIAL
RUBBER FAB
26 BROOKFIELD DRIVE,
SPARTA N.J. 07871
COMPANY WEBSITE: RUBBERFAB.COM

R
ubber Fab, a leading hose and gasket company for the food and beverage
industries, offers a complete line of sanitary products for the brewing, winery and
distilling industries. Our inventory includes several FDA-certified, food grade hoses
that offer kink-resistant flexibility as well as various brewery gaskets and screens that will
not impart taste or odor.
Rubber Fab is proud to offer the RFFDABOC brewery transfer hose, which is bromobutyl
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see out full line of products for the beverage industry.
 Special Report By Jessica Jacobsen

SPONSORED BY:

Finding favor with flavor

Hard ciders benef it IN THE UNITED STATES, THE HARD CIDER MARKET HAS EXPERIENCED ITS
shares of ups and downs. “IBISWorld estimates that the cider production industry
from diverse prof ile
has experienced robust growth over the past five years, as renewed interest in the
beverage has encouraged a slew of new operators to enter the industry,” says Chris
Lombardo, lead industry analyst for Los Angeles-based IBISWorld. “Still much of
this growth occurred at the beginning of the five-year period, with the later years
becoming more volatile. Many cider operators have mirrored the craft brewery
model, offering ancillary services along with a variety of cider options. Moreover,
as the consumers continue to diversify their alcoholic beverage consumption,
ciders have experienced heightened demand.”
According to Chicago-based Information Resources industry analysts are pointing to a number of factors
Inc. (IRI), the hard cider market was up 7.4 percent in that have helped hard ciders to be in the black.
case sales and 10.1 percent in dollar sales for the “If I look at the cider vendors, I see that 11 of the
52 weeks ending Dec. 30, 2018, in total U.S. multi- Top 15 cider vendors saw growth in 2018, so cider still
outlets, including convenience stores. This marks a does seem to be very healthy and most of the cider
notable change for the market, which was down 6.1 vendors do continue to show growth and health,” IRI’s
percent in volume and down 3.1 percent in dollar sales Livingston says.
during the same time period in 2017. Last year also saw numerous cider producers
Brian Sudano, managing partner for New York-based develop rosé varietals, including Crispin Cider Co.,
Beverage Marketing Corporation (BMC), highlights Woodchuck Hard Cider, Strongbow Hard Cider, Angry
that hard ciders performance tends to be tied to Orchard and Bold Rock.
other markets that it plays against as well as its new As an extension of that, Livingston says that Angry
innovations. Orchard Rosé had the largest incremental impact on the
“Hard cider interacts heavily with the alternative hard cider segment.
beverage alcohol segment — [flavored malt beverages] However, Rosé hard cider releases are not the only
(FMBs) are part of this segment,” he says. “When cider way that producers are tapping into flavor innovations,
had a lot of flavor innovation and heavy investment analysts note.
behind the category, it grew rapidly. However, as “Cider producers are continually experimenting
>>

Angry Orchard Rosé had the largest innovation shifted to other segments — most recently with new cider flavors with pear becoming a major
incremental impact on the hard cider
segment, IRI’s Patrick Livingston says. Spiked Seltzer — the category has struggled.” substitute for apples,” IBISWorld’s Lombardo says.
(Image courtesy of The Boston Beer Co.) Sudano suggests that focus directed toward flavor “Still, apple ciders account for the highest share of
profiles were responsible for previous growth within revenue.”
hard ciders. Outside of the apple ciders, 2 Towns Ciderhouse
Top hard ciders “Flavored hard released Pearadise, a limited-edition hard cider that
cider has changed the features Washington-grown Anjou pears, Oregon-
(Brand family)
category dynamics and grown Muscat grapes and fresh-pressed 100 percent
what drove its last leg Northwest apples, the company says. The 8.6 percent
DOLLAR % CHANGE VS. CASE SALES % CHANGE VS. of growth,” he says. alcohol-by-volume Pearadise contains a full bodied,
SALES PRIOR YEAR PRIOR YEAR “Before Angry Orchard ripe pear character and a touch of floral notes, it adds.
Angry Orchard $245,553,013 13.4 6,721,459 11.1 pursued the flavor Another positive for the hard cider space has been
Bold Rock $25,766,388 30.8 683,743 30.1 strategy, hard cider was the performance of “micro” cideries.
Strongbow $22,682,857 -15.4 603,482 -16.4 slow growing and under “Some the local more craft-oriented hard ciders are
8 million cases. The growing,” BMC’s Sudano says. “As there are more craft
Stella Artois Cidre $15,575,985 -14.5 446,562 -15.3
expansion into flavors, like providers of hard cider, this portion of the category
2 Towns $12,177,572 49.6 189,491 55.3 among other things, is less impacted by FMB trends but it is very small.”
Austin Eastciders $11,215,656 68.8 264,017 73.1 drove the category to For instance, Bold Rock Hard Cider and 2 Towns
Ace $10,356,258 37.6 249,986 37.2 near 30 million cases. posted volume gains of 30 percent and 55 percent,
Smith and Forge $8,491,167 -38 254,204 -38.9 However, it also moved respectively, based on IRI data.
the category from being Brand owners also are turning to new packaging
Crispin $7,984,783 26.2 189,580 28.8
an apple-based drink formats to expand occasions for hard ciders.
Woodchuck $7,432,184 -35.6 190,754 -38.8 in traditional format to Strongbow Hard Ciders, a brand of White Plains,
Total sales* $433,459,271 10.1 11,145,006 7.4 more toward the FMB N.Y.-based HEINEKEN USA Inc., announced the
*Includes brands not listed. space.” launch of 100-calorie, 8.5-ounce slim cans in a 12-can
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass Now that the segment variety pack with three flavor varietals: Dry Pear, Rosé
merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 30, 2018. has returned to growth, Apple and Original Dry. BI

34 | Beverage Industry | MARCH 2019

2016 | bevindustry.com
 ADVERTORIAL By Judy Smith, Standard-Knapp

STANDARD-KNAPP INC.
63 PICKERING STREET,
PORTLAND, CT 06480
COMPANY WEBSITE: STANDARD-KNAPP.COM

A key to craft brewery growth Standard-Knapp offers

craft brewery packaging equipment from garage brewing
up through national distribution

T
he American beer palette has gradually changed from one focused primarily on
the simple flavors of mainstream breweries to include a more complex, artisanal
palette. This is evidenced by the huge increase in the number of microbreweries
and taprooms. These small breweries have distinct needs when it comes to bringing their
products to market, and packaging equipment that meets those needs is critical to their
growth.
Craft breweries often follow a similar growth trajectory. They begin with one or more
dedicated homebrewers experimenting in small batches. As the operation grows, their beer
finds its way into the proving grounds of local bars, distributed into discerning customers’
pint glasses and growlers.
If the brewer’s product is deemed worthy, they might seek the resources of a larger
brewery for distribution in labeled bottles. A successful few will invest in their own
packaging equipment and grow larger still. Although brewing itself is always the focus of
an accomplished brewer, packaging and distribution allow the fruits of their labor to reach
a wider audience.
Standard-Knapp, a worldwide leader in the manufacture of innovative packaging
technology, recognizes the unique packaging needs of craft breweries throughout their
growth process. Standard-Knapp helps breweries remain focused on the quality of their
products while growing and distributing more widely.
The most basic tool Standard-Knapp has developed with craft breweries in mind is the
EZ Picker™, designed for easy manual bottle handling. While many small craft breweries
might begin by hand packing, that method rapidly falls behind when production volume
increases. The EZ Picker is an inexpensive tool that allows users to pick up as many as
12 bottles at a time, speeding up the packaging process.
For breweries that have grown larger and need more automation, Standard-Knapp offers
the 939 EZ Versatron™ Case Packer. The 939 EZ is ideal for craft breweries ready to take
the next step in their production and distribution, offering complete automation at 10-30
cases a minute.
Sometimes craft breweries outgrow even the reliable 939 EZ. For these, Standard¬
Knapp offers high-speed case packers, packing beer at speeds of 40 to 75 cases a minute.
All of these packaging tools help breweries to expand into their next phase of production,
and reach more customer palettes.
Craft breweries that produce a quality product have the potential to grow immensely.
As energy continues to grow within a small brewery, so does the demand for flexible and
innovative packing solutions tailored to their needs. Standard-Knapp has the experience
and know-how to fulfill these needs.
 Special Report
NEW PRODUCTS
THE PERFECT DISGUISE
Dogfish Head Craft Brewery, Milton, Del.
Telephone: 302/684-1000
Internet: dogfish.com
Distribution: National
BREWING A DISGUISE
As part of its latest Off-Centered Art Series Beers,
Dogfish Head Craft Brewery has created a beer that is an
IPA disguised as a Kölsch or is it a Kölsch disguised
as an IPA? The Perfect Disguise is the craft brewer’s
newest Double IPA and is made with nearly
4 pounds of German and American hops in each
barrel, bringing tropical flavors of citrus, tangerine,
mango, gooseberries and peach, the company says.
The limited-release beer is packaged in six-packs of
12-ounce bottles and is available nationwide.
HEMP INSPIRATION
FIFCO USA launched Hemptails, a flavored malt beverage
(FMB) made with organic, sterilized hemp seeds,
the company says. At 8 percent alcohol by volume,
Hemptails is low-sugar and contains no psychoactive
ingredients, it adds. Featuring an herbal aroma and
flavor, the hemp FMB is available nationwide in
23.5-ounce single-serve cans for a suggested retail
price (SRP) of $2.99, and in four-packs of 16-ounce
cans for a SRP of $8.99.
TECATE TITANIUM
Heineken USA, White Plains, N.Y.
Telephone: 914/681-4100
Internet: tecatebeerusa.com
Distribution: National
TI STRENGTH
Tecate, a brand of Heineken USA, announced the launch
of Tecate Titanium, a 7.5 percent alcohol-by-volume
beer. Packaged in a 24-ounce single-serve can, Tecate
Titanium delivers a bold and refreshing taste, the
company says. Available nationwide, the beer was
specifically created for sale in licensed off-premise
accounts, specifically convenience stores, to capitalize
on the growth of high alcohol-by-volume beers, it adds.
36 | Beverage Industry | MARCH 2019
2016 | bevindustry.com
SPACE CAMPER COSMIC IPA
Boulevard Brewing Co., Kansas City, Mo.
Telephone: 816/474-7095
Internet: boulevard.com
Distribution: National
OUT OF THIS
UNIVERSE
Boulevard Brewing Co. launched Space
Camper Cosmic IPA, a new year-
round brew. The juicy India Pale Ale
features minimal upfront bitterness
and maximum tropical fruit flavors,
the company says. With a 5.9 percent
alcohol-by-volume content and 50
IBUs, Space Camper Cosmic IPA boasts
flavors of fresh citrus, stone fruit and
watermelon from Ekuanot, El Dorado
and Galaxy hop varietals. Space Camper
was inspired by Boulevard’s desire
to offer drinkers an escape from the
heavy-handed bitterness characteristics
commonly associated with IPAs, the
HEMPTAILS
FIFCO USA, Rochester, N.Y.
Telephone: 716/431-2176
Internet: fifcousa.com
Distribution: National
CLEAN MACHINE BRUT IPA
Lakefront Brewery, Milwaukee
Telephone: 414/372-8800
Internet: lakefrontbrewery.com
Distribution: National
CLEAN BREW
Lakefront Brewery announced the release
of a new Brut IPA: Clean Machine Brut
IPA. Like the name sounds, a Brut IPA
is brewed to emulate Champagne; clear,
bubbly and flavorful, the company says.
With an alcohol-by-volume content of
6.8 percent, Clean Machine Brut IPA
contains 26 IBUs. Brewed with Cascade,
Lemondrop and Mandarina Bavaria hops,
Clean Machine is dry and refreshing,
the company says. It boasts grapefruit,
tangerine and pineapple flavors, it adds.
The name Clean Machine was tapped
from Queen’s 1975 hit “I’m In Love
With My Car,” written by Roger Taylor.
 FIRST CUT MANGO IPA
Tröegs Brewing Co., Hershey, Pa.
Telephone: 717/534-1297
Internet: troegs.com
Distribution: Select markets
HOPPY ROTATION
Tröegs Brewing Co. announced the release of its rotating
Hop Cycle beer for spring: First Cut Mango IPA. The
limited-edition beer features an alcohol-by-volume
content of 6.2 percent and 45 IBUs. Packaged in
aluminum cans, First Cut Mango IPA is available in
markets where Tröegs’ craft beers are sold.
LAGER LOVE
Stone Brewing announced its newest year-
round brew: Stone Tropic of Thunder
Lager. The beer’s name is a nod to the
uncharted tropical islands, according
to the company. With a heritage of bold
and flavorful porters, stouts, sours, IPAs,
strong ales and more, Stone continues its
tradition of pushing boundaries with an
unconventional lager, it says. The
5.8 percent alcohol-by-volume beer STONE TROPIC OF THUNDER LAGER
features Mosaic, Citra and newcomer Stone Brewing, Escondido, Calif.
Cashmere hops. The three hops combine Telephone: 760/294-7899
to form an array of citrus, tropical and fruit Internet: stonebrewing.com
aromas and flavors, the company says. Distribution: National
The new addition to Stone’s lineup now
is available throughout the United States
in 12-ounce six-pack cans, 19.2-ounce
single-serve cans and on draft.
2019 EXPERIMENTAL INDIA PALE ALE
Upslope Brewing Co., Boulder, Colo.
Telephone: 303/396-1898
Internet: upslopebrewing.com
Distribution: Select markets
EXPERIMENTING
WITH A NEW BREW
Upslope Brewing Co. announced the latest iteration of
its annually released style: 2019 Experimental India
Pale Ale. In addition, the brewery revealed its Rocky
Mountain Kölsch now is a year-round, core style. The
2019 Experimental IPA features Cashmere, Loral and
Cascade hops. The brew is an amalgamation of malt
structure meets ripe melon and orange zest, it says.
Featuring a 6.5 percent alcohol-by-volume content,
2019 Experimental IPA is available in 12-ounce cans in
six-packs. The limited-edition release will be available
throughout 2019 in Colorado, New Mexico, Utah,
Arizona, Wyoming, Montana, Nebraska and Florida.
DOS EQUIS MEXICAN PALE ALE
HEINEKEN USA, White Plains, N.Y.
Telephone: 914/681-4100
Internet: dosequis.com
Distribution: Select markets
A MEXICAN TWIST
Dos Equis, a brand of HEINEKEN USA, debuted a
new beer to drive brand penetration and store
traffic with the launch of a Mexican Pale Ale
[MPA]. With citrus hops and a hint of spicy heat
on the finish, Dos Equis MPA is a traditional
Pale Ale with a Mexican twist, the company
says. After testing for several months in select
on-premise accounts, the sessionable Mexican
Pale Ale is rolling out to off-premise outlets in
the Sun Belt. Dos Equis MPA is available in
12-pack bottles and cans and six-pack bottles.
LA FOLIE GRAND RESERVE: PX
New Belgium Brewing Co., Fort Collins, Colo.
Telephone: 970/221-0524
Internet: newbelgium.com
Distribution: Select markets
DESSERT INSPIRATION
A love of dessert wines inspired New Belgium
Brewing’s latest small batch version of its
sour brown La Folie — La Folie Grand
Reserve: PX. The PX stands for Pedro
Ximénez, a white Spanish wine grape
varietal grown under intense sun to produce
the super sweet, unctuous Pedro Ximénez
Sherry with flavors of figs, molasses, roasted
nuts and exotic spices, the company says.
La Folie Grand Reserve: PX has 8 percent
alcohol by volume and is available in
375-ml bottles and on draft. Available for
a limited time, La Folie Grand Reserve:
PX can be purchased in Colorado, North
Carolina, California, Hawaii, Missouri,
Arizona, Nebraska, Iowa, Texas, Washington
state, Oregon, Minnesota, Illinois, Idaho,
Georgia, Tennessee, Florida, Pennsylvania
and Massachusetts.
bevindustry.com | MARCH 2016
2019 | Beverage Industry | 37
 ADVERTORIAL
APPLIED FOOD SCIENCES (AFS)
8708 S. CONGRESS BLVD. STE. B290
AUSTIN, TX 78745
COMPANY WEBSITE: APPLIEDFOODS.COM
A
s a developer of innovative functional ingredients, Applied Food Sciences
(AFS) has seen a lot recent changes within the craft beer industry. As
the market becomes more saturated, brands are taking greater risks to
separate from one another and create a greater variance of differentiation. We
have noticed this most in incorporating edgy and earthy flavors, embracing
textures, and what we call “going beyond brew” into other functional categories.
Inspiration of Global Flavors
Imbibe reports an annual growth of 20 percent between 2013 and 2017 for spicy
flavors like cardamom, ginger, turmeric and chilies. Although we have already
seen coffee, tea, juice, and RTDs all increase in these global flavors, craft beer
quick to join.
“Earthy Flavors”
Ginger was the top searched “earthy flavor,” according to Google Beverage
Trends Report. The most researched flavor pairings associated with ginger were
blackberry, lemon, honey and turmeric.
It is one thing for brands to be daring in pilot brews and incorporate a new flavor
paring. It is another to be able to bring that to scale. This is where AFS has seen
some real traction within the market. Take our ginger for instance. A typical
ginger flavor would come in the form of a juiced concentrate or, for those bold
enough, processing their own ginger. However, a concentrate has limitations as
it is expensive, requires frozen storage, and has a reduced shelf life. Processing
fresh ginger requires lots of overhead in time and staffing. Our organic ginger,
on the other hand, is a standardized ingredient that is fully water soluble and is
a dry good with a two-year shelf life. Same thing with our organic turmeric. Both
turmeric and ginger are becoming very popular in beer applications proving on
trend earthy flavor along with a different mouth feel.
New in Coffee & Beer: Cascara?
Although coffee and beer have been a popular pairing for some time there is a
different part of the coffee plant that is offering something new to add to craft beer.
Cascara is the “husk” or coffee cherry fruit that surrounds the coffee bean. Cascara
has a beautiful flavor with subtle sweetness and notes of caramel and maple.
“Beyond the Brew” Functional RTDs
Quite frankly, beer is one of the best functional beverages on earth, and
craft beer makers are embracing other RTDs with functionality beyond
alcohol. Even the larger craft beer makers are losing market share due to
the sheer velocity of new breweries popping up everywhere. Some of these
breweries are identifying that they can double up on their facility’s value by
producing other beverages beyond beer. Hops, ginger, turmeric, coffee, and
many of the same ingredients in beer have added health benefits and can
go across channel into functional waters, energy drinks, shots and more.
During the past few years, the largest incorporations in beer, such as AB
InBev, Asahi Holdings, and Constellation Brands have taken more stake in
functional beverages investing in RTD coffee, CBD, energy drinks, and more.
 Po u r i n t o
G i n g er
Pure

Keep it simple with a highly soluble,

shelf stable, pure organic ginger.
Contact AFS Today!
appliedfoods.com/ginger
1(800)345-9666
sales@appliedfoods.com
 Cover Story By Jessica Jacobsen

Sierra Nevada uses

brewing expertise
to help wildfire
victims

THIS PAST FALL, THE PHRASE CAMP FIRE TOOK ON A DEEPER MEANING AS
people across America followed the progress of the Northern California wildfire
dubbed Camp Fire. Named after Camp Creek Road, where its origin hails, the
Camp Fire began Nov. 8 and spread throughout the region until it was fully
contained Nov. 25. According to the San Francisco Chronicle, the fire burned
153,336 acres and claimed the lives of 85 people. Many companies and consumers
stepped up to help those impacted by the fire. In the beer community, Sierra
Nevada Brewing Co., Chico, Calif., has not only given of itself but has created
an opportunity for other members to help those who were and continue to be
impacted by this wildfire.
The Camp Fire originated in Butte County in manager for Sierra Nevada Brewing. “Officials
Northern California, the county in which Sierra were calling for mandatory evacuations in our
>>

Sierra Nevada Brewing is sharing the recipe of
Resilience Butte County Proud IPA to help generate
funds to help rebuild the communities that were
impacted by the wildfire that spread across Butte
County in Northern California. (Image courtesy of
Sierra Nevada Brewing Co.)
Nevada Brewing’s headquarters resides, and
came uncomfortably close to the craft brewer’s
operations.
“The fire came just about a mile from the
brewery,” says Robin Gregory, communications
neighboring zones, so we voluntarily evacuated
the brewery in the interest of safety. Our physical
facility itself was not impacted, but many of our
employees were directly impacted. We had about
50 employees lose homes and many others that
continued on page 42

40 | Beverage Industry | MARCH 2019 | bevindustry.com

 ADVERTORIAL
VACUUM BARRIER CORP. (VBC)
4 BARTEN LANE,
NITROGENATE
WOBURN, MA 01801
COMPANY WEBSITE: VACUUMBARRIER.COM
With or without a widget

Liquid Nitrogen Dosing

Even as the craft brew industry has grown and product offerings have become more
diverse, the struggles when packaging beer remained, with the main culprit being oxygen.
A reactive element, oxygen tends to get absorbed by beer which reduces shelf-life, and
can alter flavor and aroma profiles that a brewmaster worked hard to achieve. Vacuum
Barrier Corp. combats the effects of oxygen through the use of nitrogen, an inert gas. By
replacing oxygen in a container with nitrogen, the unique taste and bouquet of the beer
can be maintained.

Another advantage of nitrogen is its ability to be stored as a liquid. At Vacuum Barrier,

we specialize in extremely precise, efficient, and reliable liquid nitrogen dosing systems,
and have been involved with the brewing industry since the 1980s. Our Linerter excelled at
pre-purging empty bottles of all sizes prior to filling. Providing a low-oxygen environment
for filling helped to extend shelf life. Our compact Minidoser provided a simple solution for
purging oxygen from the head space of filled bottles just prior to capping.

As preferences changed and craft canning lines became popular, our products needed
to change, too. The Easydoser G2 with off-set dosing arm and electric dosing valve made
set-up and installation simple for headspace dosing on canning lines. The development of
our Low Dose Velocity block improved reliability when dosing very low headspace products.
Beyond just purging oxygen, some low-carbonated products need to be pressurized to
add strength and stability to the can to accommodate packing, labeling, storing, and
shipping. This is accomplished with the same dosing equipment, but involves seaming
the can immediately after dosing to trap the nitrogen in the headspace. A similar process
is used when nitrogenating a beer. When enough pressure is added to a can, nitrogen gas
can be forced into solution. When this nitrogen comes out of solution by “hard-pouring” or
through the action of a widget, the beer exhibits a cascade affect and provides a smooth,
creamy mouthfeel.

Vacuum Barrier dosers offer a reliable and efficient method of purging empty containers
before filling, purging oxygen from the headspace of filled containers, pressurizing cans of
low-carb products for stability or to nitrogenate for Nitro-style beers.

Vacuum Barrier designs, engineers and manufactures a complete line of liquid nitrogen
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Liquid Nitrogen Dosing by VBC

4 Barten Lane, Woburn, MA 01801
Tel 1-781-933-3570
Fax 1-781-932-9428
email: sales@vacuumbarrier.com
www.vacuumbarrier.com

Since 1958
 Cover Story
continued from page 40
were evacuated for some time.”
However, even those who did
not lose their own home have
experienced the effects of the
wildfire in one way or another.
“Almost everyone has friends or
family members who lost homes;
many employees have had people
staying with them for months,”
Gregory says.
Even before the fire reached
containment, Sierra Nevada
Brewing was finding ways to help
those in the community. “When
the fire was still burning, we
responded to immediate needs,”
Gregory explains. “We opened up
our taproom and served free meals
to First Responders and those who
lost homes. We also gave out free
shirts and sweatshirts to anyone
who needed them. We hosted a
free all-day Thanksgiving dinner
at the brewery and fed about 1,000
people.”
As officials were getting closer
to containment of the Camp Fire,
Gregory says the craft brewer
decided to direct its energy into
addressing the long-term effects of
the wildfire and the communities
that it impacted.
“As the fire started to reach
containment, we shifted our focus
to long-term needs,” she says. “We
established the Sierra Nevada Camp
Fire Relief Fund and seeded it with
an initial $100,000. Then we started
the Resilience project.”
#BUTTESTRONG
When Sierra Nevada Brewing
shifted it efforts from short-term
to long-term needs for the victims
by establishing the Sierra Nevada
Camp Fire Relief Fund, the decision
to embark on this fundraising
adventure was an easy one.
“It was really never a question,”
Gregory explains. “We’ve been
in Butte County since we opened
in 1980 and our community has
supported us for nearly 40 years. We
felt strongly compelled to support
it right back. We would not be
where we are today without our
community.”
Although the Sierra Nevada
Camp Fire Relief Fund began with
the $100,000 seed donation from
the craft brewery, Gregory notes
it hopes to raise $10 to $15 million
through donations as well as
proceeds from the Resilience project.
The Resilience project emerged
42 | Beverage Industry | MARCH 2019 | bevindustry.com
after Sierra Nevada Brewing Nevada Camp Fire Relief Fund. what we do. We’d been inspired
announced that it would brew “We knew right away that we by Russian River Brewing Co.’s
Resilience Butte County Proud IPA, wanted to brew a fundraising beer,” Sonoma Pride beer effort after the
a beer in which 100 percent of the Gregory says. “We were strongly fires in Santa Rosa. We wanted to
sales will be going to the Sierra compelled to help, and beer is take this effort to the next level
ADVERTORIAL
KHS USA INC.
880 BAHCALL COURT,
WAUKESHA, WI 53186
COMPANY WEBSITE: KHS.COM/EN/
T
he Innofill Can C can filler gives operators the
technological innovations of the big machines
and is convincing with its compact design
and quick installation. With the Innofill Can C can
filler, KHS GmbH satisfies the demand of smaller
breweries on the international market. Since
introducing the prototype at drinktec 2017, there
has been increased interest in the new technology
from the Dortmund systems supplier. This is one
of the reasons why KHS has launched a further
machine size with a greater capacity to market.
The German systems provider will be presenting
the Innofill Can C at Craft Brewers Conference
from April 8 to 11 at Booth 16033.
At the world premiere of the Innofill Can C at drinktec 2017 Canadian craft brewery Steamworks procured the very first
machine with a serial number of 001. In commissioning the can filler in February 2018 KHS laid the foundations for the future
machine series. “The high order entry demonstrates that this machine concept is already proving convincing,” says Kevin
Rathbun, project manager at KHS USA.
KHS shipped the can filler in a single container to the customer in Vancouver where it was commissioned on site on a plug-
and-produce basis without any need for complicated installation processes. As the 21 filling and three seaming stations, valve
manifold, cladding and control cabinet on the Innofill Can C form an enclosed, ready-to-produce machine unit, all that had to
be done during installation was to connect up the electricity cables, piping and conveyors.
Just 14 days lay between delivery and the commissioning of the prototype. According to Steamworks its new plant engineering
fills approximately 15,000 cans an hour in its standard 355-milliliter can format. The craft brewery also uses cans holding
473 and 500 milliliters. “With its new development KHS has again made the technical innovations of its big machines available
to the craft brewing segment,” says Rathbun.
Steamworks’ CEO Gershkovitch is very pleased with his new can filler. “I like the KHS approach to design. In my experience
things with a logical array work best.” In addition to the compact layout and fast installation, Gershkovitch also appreciates the
machine’s hygienic design. In particular, this includes a gapless bell guide with PTFE expansion joints (Teflon) and bells which
are lifted and positioned fully electropneumatically to seal the cans — without any mechanical action from cams and rollers.
This does away with the need for water lubrication, simplifies cleaning and promises a service life which is up to twice as long
as before.
The Innofill Can C is designed for low to medium outputs depending on the can size. KHS has now implemented a further
machine size in order to increase the capacity for filling 330-milliliter cans from 15,600 to 27,800 cans per hour. “In addition
to craft brewers, who continue to grow and grow, medium-sized breweries are also increasingly asking for further cost-efficient
machines for the medium capacity range,” emphasizes Rathbun.
by inviting every brewery in the
country to brew.”
To date, 1,478 breweries
worldwide have pledged to brew
and donate to the fund, Gregory
says. “We’ve been completely
overwhelmed by the response,” she
adds. “We initially hoped that 200
breweries would sign up.”
This outpouring is how Sierra
Nevada Brewing hopes to reach Resilience should raise between
its donation goal for the Sierra $10-15 million,” Gregory says.
Nevada Camp Fire Relief Fund. “If
all of the breweries brew what they
committed to and sell all of the beer,

“WORL D C L A SS BE E R
DEMANDS A
WORLD CLA S S FI L LE R .”

>>
A Sierra Nevada employee adds
ingredients to the brewing kettle. Resilience
Butte County Proud IPA is a classic West

s Brewing Co.
Coast-style IPA. (Image courtesy of Sierra
Glaru
Dan Carey, New
Nevada Brewing Co.)

Packaged in 12-ounce aluminum

cans, Resilience IPA is a West Coast-
style IPA that features a dank, hop-
forward character, Gregory says.
“The recipe for Resilience IPA is
similar to our Celebration IPA with
a few tweaks,” she explains.
To get the mass brewing effort
rolling, Sierra Nevada Brewing was
orchestrating all the logistics, but
was easily aided by its connections
throughout the beer community.
“We handled the effort in house,
so it’s been quite a task for our
team,” Gregory says. “It was
pretty much all hands on deck.
Fortunately, we had many pre-
existing relationships with other
breweries thanks to our Beer Camp
Across America beer festival tours.
But we called in every favor for this
one.”
Although the craft brewers are the
recognizable supporters, Gregory
highlights that everyone in the beer
community — suppliers and beer
wholesalers — have been vital allies
in the fundraising effort.
“We provided the recipe,
information on how to register the

-*5sTGCNU[UVGOU beer, graphics, tap handles, coasters,

posters, social media assets —
HQTTGCNDTGYGTU hopefully just about everything a
brewery would need to get going,”
Gregory says. “A huge piece of the
-*5oPGYECPEQORCEVƂNNGTUCTGFGUKIPGFYKVJVJGUCOGUVCVGQHVJGCTVVGEJPQNQI[CUNCTI puzzle has been our supplier partners.
GT-*5ECPƂNNGTU9KVJVQRƂNNNGXGNCEEWTCE[J[IKGPKEFGUKIPCPFNQYQZ[IGPRKEMWR-*5 Our malt, hop and yeast suppliers all
GPCDNGUVJGJKIJGUVDGGTSWCNKV[sGXGT[VKOG0QOCVVGTYJCV[QWCTGƂNNKPIECPUDQVVNGU pitched in and donated ingredients
to all participating breweries to get
QTMGIU-*5UVCPFUHQTOCZKOWOTGNKCDKNKV[MGGRKPINKPGUTWPPKPIUVGCFKN[CVCXGT[JKIJGHƂ
the cost down for the brewers. Our
EKGPE[sUWRRQTVGFD[QWTFGRGPFCDNG0QTVJ#OGTKECPUGTXKEGQTICPK\CVKQP9QWNF[QWNKMG wholesalers and retailers agreed to
VQMPQYOQTG!2NGCUGEQPVCEVWUCV YYYMJUEQOGPETCHVDGGTDTGYGT carry the beer for free. It’s been a huge
effort from everyone up and down
the supply chain.”
continued on page 44

bevindustry.com | MARCH 2019 | Beverage Industry | 43

 Cover Story
continued from page 43
Gregory notes that many Relief Fund has expanded, Sierra other local groups (The North Valley committed to other projects, the bulk
breweries have released their Nevada Brewing has partnered with Community Foundation and the Aaron of the Sierra Nevada Camp Fire Relief
version of Resilience while others other foundations to streamline Rodgers NorCal Fire Recovery Fund) to Fund will fund Butte Strong Fund
still have the brew on tap. “[S]o the recovery efforts. form the Butte Strong Fund,” Gregory initiatives. We will be actively working
first funds are just starting to come “We have joined forces with two says. “Though some funds were on community recovery projects
in,” she adds.
Because some brewers were
unable to add another beer project
to their calendar, they willingly
assisted in fundraising efforts.
ADVERTORIAL
For example, Milwaukee-based
Lakefront Brewery could not INGREDIENT SOLUTIONS INC. (ISI)
accommodate a new beer to its 631 MOOSEHEAD TRAIL,
production schedule. Instead, from WALDO, MAINE 04915
Dec. 2 through 9, Lakefront Brewery COMPANY WEBSITE: ISI.US.COM
sold its Riverwest Stein Amber
Lager on special and donated 100
percent of the sales to California’s
Camp Fire relief efforts, it said.
During that week, each pint was $3
and generated more than $1,000 in
donations, Lakefront Brewery Brand
Manager Michael Stodola reported
in December 2018.
“We’ve helped a number of
other breweries over the years,
and this one went even farther,”
said Lakefront Brewery Owner
and President Russ Klisch in a

statement. “We’re proud to assist
our independent craft beer family
and their communities.”
Although the brewing effort
might be getting all the attention,
Gregory notes that the project
wasn’t just about the beer.
H
ydrocolloids have a long history of use in a wide range of beverages, from chocolate milk, infant formula, smoothies and
yogurt drinks, to alcohol beverages (such as “Irish Cream” types) and beer. Hydrocolloids offer a broad range of textural
and stabilizing properties including thickening, suspension of solids in liquids (milk or water), gelling, and emulsion
stabilization. We will focus today on carrageenan and propylene glycol alginates as they apply to the craft brewing industry.
Carrageenan is really a family of products, extracted from several types of red seaweeds, grown around the world. These
seaweeds are fully sustainable and their farming and harvesting is all-natural, with no use of fertilizers or pesticides.
Carrageenans provide gelling, thickening, stabilization. They have the unique ability to react and complex with various proteins.
It is this property that makes them useful in beer production. Carrageenan is used to react with and precipitate residual
proteins in beer. These precipitated proteins can then be removed via settling or simple filtration, thus preventing them from
causing cloudiness in the finished product. This process is referred to as “chill-proofing.” This means of chill-proofing is
especially useful in craft brewing as a viable and natural option to ultrafiltration.

Propylene glycol alginates (PGA) also are seaweed derivatives, extracted from brown seaweeds (kelp). These brown seaweeds
grow naturally in cold ocean waters and are harvested from the oceans of Japan, the Chilean coast and in the North Atlantic.
This is the same type of seaweed commonly seen on beaches in California. PGA has the ability to stabilize the foam in beer and
has been used for this purpose for decades. Again, this a seaweed derivative obtained from naturally growing, sustainable and
renewable marine seaweeds.

Since 1992, Ingredients Solutions has sourced and supplied specialty hydrocolloids from around the world for use in a wide
>>

Ingredients for Resilience Butte County

Proud IPA ferment in a beer kettle. Sales
of Resilience IPA and sales from the
sister beers will go to support the Butte
Strong Fund. (Image courtesy of Sierra
Nevada Brewing Co.)
variety of food, beverage, personal care and pet food products. Our product line includes carrageenan, alginates (including
PGA), pectin, agar, xanthan gum, konjac, locust bean gum, tara gum, gellan gum and microcrystalline cellulose. We provide
R&D and customer service from our U.S. headquarters in Waldo, Maine. Our R&D team represents more than 200 years of
experience in hydrocolloids research and development.

“It’s about the incredible brewing For more information on how to make use of hydrocolloids in beverage, food, or any other application please contact the
community coming together for a experts at Ingredients Solutions: phone: 800-628-3166 or 207-722-4172; email: Info@isi.us.com
common cause,” she says. “We are of
course open to any way folks want to
help. It has been overwhelming and
heartwarming to see the response
from so many other breweries around
the world, and we are so grateful to
everyone who has helped in any way
that they can.”
As the Sierra Nevada Camp Fire

44 | Beverage Industry | MARCH 2019 | bevindustry.com

through the Butte Strong Fund in the
coming years.”
Gregory adds that the formation of
the Butte Strong Fund came about after
the craft brewer learned about the efforts
the other organizations were doing.
“As we were starting to work on
recovery efforts, we found that there
were other groups working on very
similar projects,” she says. “In some
cases, we were even doubling efforts together than we ever could alone.”
in inefficient ways. By joining forces,
we found that we could not only work
“When the f ire
more efficiently, but we could also pool was still burning,
resources to make a greater impact
we responded to
immediate needs.
We opened up
our taproom and
served free meals
to First Responders
and those who lost
homes. We also
gave out free shirts
and sweatshirts
to anyone who
needed them. We
hosted a free all-day
Thanksgiving dinner
at the brewery and
fed about 1,000
people.”
— Robin Gregory,
communications manager for
Sierra Nevada Brewing Co.
Gregory explains that Butte Strong
has identified six areas of focus: housing,
children and youth services, health
and wellness, education, community
development, and business recovery.
“Some current projects include
providing temporary classrooms,
providing bus passes, creating a business
recovery task force, helping to fund a
city planner and more,” she says.
Although direct assistance partners
still are being determined, Gregory
explains that the craft brewer is eager
to see the Butte Strong Fund get fully
underway to help the community
that means so much to Sierra Nevada
Brewing.
“The goal of the Butte Strong Fund
is to be a catalyst to start the rebuilding
process. There are currently many
obstacles and rebuilding can feel
overwhelming,” she says. “We want to
help remove those barriers and allow
the community to move forward. The
needs are massive and there are no
quick fixes. We hope to work alongside
the community and provide assistance
wherever needed.” BI
For more information …
To read more about the U.S. beer
market, visit bevindustry.com/
topics/2244-beer
bevindustry.com | MARCH 2019 | Beverage Industry | 45
 Up Close With...
To life, L’Chaim!
Shmaltz Brewing Co. FROM A WILD ART PROJECT AND “EXPERIMENT” TO START A JEWISH
honors Jewish heritage celebration microbrew, Shmaltz Brewing Co. has advanced from delivering 100
cases of HE’BREW Beer out of a Volvo to building a brewery in Upstate New York
and back to a contract brewing model while combining innovation and “schtick”
to expand its brand across 30 states, through 40 wholesalers and in nearly 5,000
retailers.
Founded in 1996 as a 100 percent contract packed
venture in San Francisco, Shmaltz Owner and Founder
Jeremy Cowan details that his microbrewery started as
a whim and an “inside joke” with a group of longtime
friends. “I honestly thought it was just fun, funny and
delicious to have my own beer and to be able to share it
to those who might get a kick out of it,” he explains. “I
went to a tiny little brewery in Northern California that
made me 100 cases of our first HE’BREW Beer, which
we then hand-bottled, hand-labeled and I delivered
it by borrowing my grandmother’s Volvo to several
accounts in Northern California.
“My mom and a couple of friends helped with
the first deliveries as well,” he continues. “I’m not
even sure I would have counted myself as a full-time
employee at that time since I had a full-time job and I
relied on the kindness of my friends and family to get
those cases out the door. Contract brewing was by far
the best way to start this little crazy experiment.”
What began as a crazy little experiment now is going
into its 23rd year. The award-winning Upstate New
York-based Shmaltz Brewing Co. produces a gamut of
craft beers widely varying in style and taste — from
light to dark, hoppy to malty, high alcohol-by-volume
(ABV) beers to easy-drinking session beers, Cowan
says. He notes that a lot of hutzpah, or extreme joy, and
experimentation goes into his brews since “none of his
beers are rarely to a specific style target.”
THE CRAFT BEER TRIBE OF SHMALTZ
To date, the company offers four year-round core
brands: Slingshot, a 5.3 percent ABV American Blonde
Ale billed as a “fermented tribute to the Glories of the
Underdog” that boasts a bright, citrusy hop aroma,
supported by touches of wheat and rye and the light
spice accent of Noble hops; Messiah Brown Ale, a
5.2 percent ABV with a complex yet smooth blend of
bold dark malts revealing hints of chocolate, coffee
and toffee paired with hop character;
Hop Manna IPA, a 5.2 percent ABV dry
hopped India Pale Ale, offering a golden
opportunity to feed one’s inner hop
head; and one of the company’s popular
mistakes, the 5.8 percent ABV Hop Momma
IPA, a juicy, fruity IPA brewed with real
peach, apricot and a hint of habanero
pepper, the company says.
Slingshot and Messiah Brown Ale are
packaged in 12-ounce cans of six-packs
and on draft, while Hop Manna and Hop
Momma are available in 16-ounce slim
(Image courtesy of Shmaltz Brewing Co.) cans in four-packs, as well as on draft. The
46 | Beverage Industry | MARCH 2019 | bevindustry.com
packaging designs on three of the brewery’s year-
round offerings — Messiah Brown Ale, Hop Manna
IPA and Hop Momma IPA — proclaim “Gold Medal
Champion,” a highly coveted honor bestowed at the
World Beer Championships.
Despite the commercial and fan success of Shamltz’s
core lineup, Cowan is reluctant to name one brand as
its flagship SKU. “For many years, many of us fought
against the concept of a flagship beer and went more
for diversity of creativity and flavor,” he explains.
“These days, everyone wants what’s new — but the
sales channel often demands focus, so we are trying
to accomplish both things at once by putting a much
bigger push on our core brands this year all in cans.
“And, diversifying through our various brands
(Shmaltz, Alphabet City, etc.) as well as the one off
draft-only rarities. It’s hard to balance creativity and
commerce,” he continues. “For 2019, given the amazing
expansion of breweries and beer styles in the country,
we have scaled back on our different styles so we can
focus on building core brands — very tough for our
constant love of creativity. But, we introduced a new
year-round beer, Hop Momma, as well as several new
special releases that I’m really excited about. This year,
we’ve also transformed our barrel-aged sour program
into multiple special releases. We moved everything
into cans, 12-ounce and 16-ounce, and we have really
special draft-only options as well.”
A TRADEMARK SHTICK
All said, Cowan plans to release about 12 to 15 beers
this year and proclaims there will still be enough
flexibility for a “ton of fun” across its multiple brand
lines, including Shmaltz Brewing, 518 Craft, Alphabet
City Brewing Co. and the Star Trek beers.
“This year, we will definitely have a slew of tasty
IPAs, varying widely in style,” he says. “At this point,
everyone knows how much fun we like to have with
our names, and our packaging — our shtick is truly our
trademark — and a favorite part of the biz.
“Each year, perfect opportunities arise for new styles
and given we are still rather a niche brewery, there
are always new customers to expose to the Shmaltz
sensibility” he continues. “The names usually come out
of brainstorms, rock lyrics, references to the Torah or
Mel Brooks. We often wish we had more time to crank
out endless fun names, but for now we need to focus on
selling what we have cooking now.”
For example, the limited-edition Jewbelation 22,
was re-released in celebration of the company’s 22nd
anniversary. Packaged in single-serve 16-ounce slim
cans and on draft, the dark American 11 percent ABV
 By Barbara Harfmann

complex strong ale features 11 malts and 11 hops.
Other special releases include SHE’BREW, a
Northeast style, hoppy hazy double IPA annually
brewed for International Women’s Collaboration
Brew Day (March 8); NO SHTICK, a golden hued
American Imperial IPA style beer; and the 10 percent
ABV Bittersweet Lenny’s R.I.P.A., a rye double IPA
brewed with 10 malts and 10 hops and packaged in
16-ounce slim can four-packs and on draft. In honor of
Hanukkah, the company’s “chosen beer” of the holiday
season, Hanukkah, Chanukah: Pass The Beer is a dark
ale brewed with eight malts, eight hops, and boasts an
8 percent ABV.
To keep its fans stoked and coming back for more,
Shmaltz Brewing also offers a seasonal Funky Blender
Series of barrel-aged sour beers with three limited on-
draft releases in spring, summer and fall. “I’m really
excited to release our barrel-aged sours for 2019 in
smaller specialty draft-only drops. This will be about
our 10th year doing barrel-aged sours and the flavors
just keep blowing me away,” Cowan says.
RAMPING UP PRODUCTION
Shmaltz Brewing continues to evolve. After 17 years of
annual capacity, Cowan notes it was difficult to keep up
demand so the factory was sold late last year to some
friends who needed the capacity, Cowan says.
In July 2018, the brewery officially opened a new bar
and tasting room in the craft-centric community of Troy,
N.Y. The move also combined the hyper-local brands
518 and 838 under one name: 518 Craft. To showcase the
breadth of Shmaltz’s portfolio as well as select releases
from New York State craft breweries, 518 Craft boasts
a bar and tasting room, local art displays and artisanal
food, while the Shmaltz Shop features handcrafted to-go
beers, spirits, wines and hard ciders. Bridging out again,
in February, Shmaltz opened an official tasting room at
The Comedy Works in Saratoga Springs, N.Y.
The company’s craft beers continue to bring in
accolades. The brewery has garnered one platinum,
10 gold and six silver medals from the World Beer
Championships.
“As far as I know and I joke about it all the time, we
are the first, the biggest, the smallest, the most award-
winning and still the only Jewish-themed celebration
beer in the country,” Cowan says. “… Sometimes it’s
hard to stand out in a crowded beer world so it’s great
to have a unique identity. I have lived through plenty of

being an outspoken cheerleader for contract brewing,
Cowan and his staff opened their own New York
State production brewery in 2013 in Clifton Park, N.Y.
Even with a 50-barrel brewhouse and 30,000 barrels of
the ups and downs, and have a good sense of what we
need to do to fight our way toward growth as well as to
maintain the creative passion that got us here in the first
place. L’Chaim to that.” BI
>>
Founded in 1996 by Jeremy Cowan,
Shmaltz Brewing Co. began as an
“experiment” now boasts a portfolio of
12-15 craft beers. (Image courtesy of
Shmaltz Brewing Co.)

bevindustry.com | MARCH 2019 | Beverage Industry | 47

 Channel Strategies
Curated assortments
Drug stores offer SO FAR THIS WINTER, IT’S ESTIMATED THAT BETWEEN ABOUT SIX TO SEVEN
million people have been stricken with the flu, according to a January statement
personalized from the Atlanta-based Centers for Disease Control and Prevention. As consumers
product sets seek out appropriate medical care, many are turning to drug stores to provide
them with the necessary prescriptions and products to restore them back to
optimal health.
Experts note that one trend in particular is driving
the drug store channel’s performance: health and
wellness. “Health and wellness items remain a top
purchase on drug store trips and some shoppers are
utilizing drug stores to manage health care needs,”
states Chicago-based Mintel’s February 2018 “Drug
Store Retailing – US” report.
“… For some shoppers, drug stores may address
many of their healthcare needs and could even be
replacing visits to primary care physicians,” the report
continues.
Joan Driggs, vice president of Thought Leadership
at Chicago-based Information Resources Inc. (IRI) also
notes the self-care trend. “People have started to take
greater ownership in their personal well-being,” she
says. “It has really blossomed from there… Both the
drug channel and the retail grocery channel have really
upped the services they are offering like more minute
clinics and a greater array of diagnostic testing.
“This has extended the way drug stores are making
their assortments,” she continues. “They are moving
away from things like tobacco, [which is] creating a
bigger opportunity for [the beverage industry] to help
people manage and maintain their medical conditions
or to just help them feel better about their own health
and personal well-being.”
Driggs also highlights how personalization has
affected the channel. “Retailers want to demonstrate
to their shoppers that they are an extension of their
support network, like ‘we’ve got you, we’re here to
support you, we have the products that you will feel
good about purchasing,’” she says.
For example, drug store beverage assortments
almost always have a designated health-and-wellness
curated-section, Driggs says. “Say it’s cold and flu
season… the drug channel is going to do a fantastic
job at saying, here is everything you need from
beverages—shelf stable, drink mixes, teas — all the way
to tissues and other over-the-counter items, that’s that
personalization, the ‘we are here for you’ type of feel,”
she adds.
MISSION-FOCUSED PRODUCTS
The drug store category as a whole has experienced
marginal growth, with an estimated growth of
2.7 percent in 2018, according to Los Angeles-based
>>
CVS account for more than one-fourth of industry
IBISWorld’s September 2018 “Pharmacies & Drug
revenue, dominating the drug store channel for the
past decade, IBISWorld’s Chris Lombardo says. Stores in the US” report. This increase marks a total
(Image courtesy of CVS Health Corp.) industry revenue of $290.6 billion, it says.
48 | Beverage Industry | MARCH 2019 | bevindustry.com
“Over the next five years [2018 to 2023], revenue is
anticipated to increase at an annualized rate of
2.4 percent to $326.9 billion,” it adds.
IRI’s Driggs notes that beverage sales account for
5.8 percent of total drug store sales, not including alcohol.
IBISWorld reports that three companies account
for more than 65 percent of revenue in the industry:
Walgreens (33.7 percent), CVS (28.9 percent) and Rite
Aid (5.3 percent). “These three players have dominated
the industry for the past decade,” says Chris Lombardo,
lead analyst at IBISWorld.
Older demographics generally frequent drug stores
more often than younger demographics, Lombardo
explains. “This is simply due to the fact that older
consumers are more likely to have conditions that
require one-time or continual medications,” he says.
“As a result, IBISWorld estimates that consumers aged
45 to 64 account for 36.8 percent of industry revenue,
while consumers aged 65 and older account for
26 percent of industry revenue.”
IRI’s Driggs echoes similar sentiments on the
demographics of consumers who frequently utilize
the drug channel. In suburban and rural areas, you
are going to find older consumers frequenting the
channel, as they are the ones who most likely have
prescription ailments that are going to bring them
into the store, she says.
However, as consumers venture to more urban areas
the foot traffic essentially includes every demographic,
she adds.
Although the drug store channel has experienced
marginal growth, it faces challenges from other market
channels. “Pharmacies and drug stores experience
mounting competition from mass merchandisers (e.g.,
discount stores, supercenters and warehouse clubs)
mail-order prescription providers, online pharmacies,
convenience stores, wholesalers (e.g., Costco) and
health clinics,” IBISWorld’s report states.
“Due to intensifying competition the industry
will contend with many external competitors
cutting into consumer demand for industry
products,” it continues.
As with seemingly most retail channels,
eCommerce poses an increasing threat. “eCommerce
has affected the industry in terms of pharmaceutical
sales,” IBISWorld’s Lombardo says. “Online
pharmacies have gained popularity, especially
among older consumers who do not want to, or
cannot, frequently visit industry establishments.

Moreover, these consumers are more likely to have
long-term medications that they continually need
refilled.
“Using an automatic online pharmacy can
prove useful and a bit more convenient for these
consumers,” he continues.
Competition and online shopping continue to pose
a threat to traditional drug stores, Mintel’s report
explains. “Walmart is capturing the most drug store
related trips of any retailer, including leading drug
stores,” it says. “Additionally, while consumers are
shopping both the drug channel and other retailers
almost equally overall, online shopping is occurring
more outside the channel, signaling an area of
concern for traditional drug stores.”
While IRI’s Driggs notes the definite influence
of eCommerce on the drug store channel, she
suggests the beverage category might not be as
strongly impacted. “A lot of eCommerce purchases
are more of those uncomfortable/grudge
purchases that people are more comfortable
making online than physically purchasing at the
store… which doesn’t really translate over to
beverages,” she says.
“[For example], vitamins are one of the things that
you think would be and are a big seller in the drug
channel, but they also are one of the top purchased
eCommerce items across the board,” she continues.
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By Taylor Karg
Despite competition from outside channels,
beverage brands and drug stores can explore several
opportunities to efficiently utilize the channel,
experts note.
“It is all about knowing the drug store’s mission,”
Driggs says. “Because they are centered on health and
wellness, a manufacturer can go in and say ‘let us be
a part of your curated set’ — beauty drinks, drinks for
people who have special dietary considerations, people
taking medications who need certain supplemental
items to help with these issues — really anything that
speaks to the collaborative, curated assortments for
people who are coming into the store.”
Packaging also has potential to draw consumers
to the channel. Because more people are moving
away from single-use plastic, brands can seize the
opportunity to implement recyclable and reusable
packaging, Driggs says. The drug channel can show
consumers, “not only do we care about you, but we
care about the environment too,’” she adds.
To drive more foot traffic into drug stores,
IBISWorld’s Lombardo suggests the channel could
choose to focus on its front-end offerings. “Some
regional operators have expanded this portion of
their business to include more than just the typical
food and beverage staples, enabling consumers to
do a large portion of their grocery shopping in the
establishment,” he explains. BI
bevindustry.com/connect
It’s now easier than ever to stay up to date
with the latest news and information.
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bevindustry.com | MARCH 2019 | Beverage Industry | 49
 Between Drinks

<<
A deeply
<< A coffee
ffee complex eau-de-vie
co
companyny with heart Th year’s first and 14th overall release
The
No one understands service, sacrifice and from The Last Drop Distillers, features an
reverence like Fire Dept. Coffee (FDC) founders exceptional Grande Champagne Cognac
Luke Schneider and Mark Williams. With almost distilled in 1925 and then forgotten behind
10 years of service and eight deployments a secret wall during World War II for nearly
between them, Schneider, a Navy veteran a century before being discovered by a team
turned firefighter paramedic, and Williams, a of rare spirit hunters, the company says. The
combat vet turned firefighter, are on a mission bottle officially will be stateside and for sale
to serve, unite and give back. The duo created beginning in April. The liquid features a deep
Fire Dept. Coffee, a fresh and flavorful coffee mahogany coloring, floral notes and fruity hints
company, backed with heart and service. of red and black cherry on the nose, the company
Available in a variety of flavors and grounds, says. With only 182 bottles in existence, the 1925
FDC offers Classic Original, Bold Dark, Cognac presents an eau-de-vie from a single,
Delicious Donut Shop and Decaffeinated precious cask, distilled the same year that Last
coffee blends in ground, whole bean Drop Founder Tom Jago was born, it adds. “The
or single use cups. It also offers moment we first tasted the 1925 Cognac, we
four spirit-infused blends using knew we had a miraculous spirit before us,” says
bourbon, whiskey, rum and tequila. Rebecca Jago, joint managing director of The
Regardless of flavor choice, each Last Drop, in a statement. “It is an extraordinary
batch is carefully roasted to order, cognac from a single, precious cask, to rival any
the company says. To recognize their of the great names. It was distilled in the year
CHEERS service, military and First my father, Tom Jago, was born. We celebrate his
FOR BEERS Responders receive 15 percent off wonderful life with our 14th release, of which he
BY BARBARA HARFMANN every order of FDC. would have been most proud.”
MANAGING EDITOR

W
ritten for the 1953 MGM musical “The Band
Wagon,” the lyrics of “That’s Entertainment!”
rollickingly suggests what entertains people —
“from a clown, with his pants falling down, or the dance, that’s
DID YOU KNOW?
Innovation in gluten-free products continues as
196
a dream of romance or the scene where the villain is mean —
that’s entertainment.” consumers demand transparency, accountability and
To entice consumers, many restaurants and bars offer
entertainment platforms. For example, comedy clubs usually authenticity in food processing. In 2018, 2,203 products across
require a small cover charge and a two-drink minimum, while food and beverage made by 196 brands now carry the gluten-
some bars offer weekly karaoke sessions.
Hofbräuhaus Chicago in Rosemont, Ill., features nightly free organization (GFCO) logo. GFCO currently certifies more than
entertainment in its beer hall, including bands direct from
Germany and Austria, featuring singing, dancing and audience 52,000 products made by more than 2,500 brands in 47 countries.
participation along with the regular hoisting of steins of beer. — A release from the Gluten Intolerance Group about the benefits of
As a member of the media, I attended the restaurant’s sixth
its certification program and why brands secure third-party
anniversary celebration featuring a new chef, keg tapping, and
a new menu of sausage specialties and Bavarian snacks. certification to secure the trust of the gluten-free community.
A few weeks later, I was back at Hofbräuhaus for a special
performance from the Muller Fasching Verein Nordamerika Inc.,
also known as the Milwaukee Mullers, a nonprofit organization << Succulent strawberry
where participants don carved wooden masks and unique In response to overwhelming demand, Brew Dr. Kombucha’s Strawberry Basil has
costumes while performing a story surrounding the four seasons. taken a permanent place in the brand’s flavor lineup. “Our Strawberry
Entertainment aside, beer is the highlight of Hofbräuhaus’s
menu. I enjoyed Hefe Weizen, an aromatic wheat beer with fruity Basil was such a hit this summer as a limited release that we decided to
notes and a mild and sweet finish. Other year-round craft beers add it to our full-time lineup,” said Matt Thomas, founder and chief
brewed on-site in the 20,000-square-foot German microbrewery executive officer of Brew Dr. Kombucha, in a statement. “It’s tart, tasty
are a full bodied, slightly malty premium lager and Dunkel, a
flavorful, malty and hoppy dark lager. and made exclusively from organic tea blends and botanicals. It will
The monthly beer calendar lists limited-edition seasonal also be available in a 12-ounce can, which is great for hikes, bike rides
offerings including “Schwarzbier,” a deep black lager with a
roasted malt and sweet chocolate flavor in January; the “Royal
and trips to the beach. We think it’s perfect for long-time kombucha
Export,” a pale, malty IPA in April; and “Oktoberfest,” a stronger fans and newbies alike.” Brew Dr. Strawberry Basil kombucha
lager style beer with a slightly hoppy finish in September and combines high-quality green tea with strawberries and two types of basil.
October. On “First Thirst Days,” the first Thursday of each month
at 7 p.m., the microbrewery celebrates each beer’s debut with Strawberry Basil is available in 14-ounce and 32-ounce bottles and
tasting information, free half liter samples and brewery tours. four-packs of 12-ounce cans.

50 | Beverage
BeverageIndustry
Industry| MARCH
| MARCH2019
2019| bevindustry.com
| bevindustry.com

Right product, right time
THE ANNUAL CES TRADESHOW TRADITIONALLY IS THE FIRST EVENT OF THE NEW
year to kick-off the next-generation of innovations. Although robots like Lovot, the
companion robot, grabbed mainstream media headlines, innovation for the consumer
market is not limited to the latest artificial-intelligence-powered creation. Instead, the
innovations with perhaps the broadest impact can be found at local food and beverage
retailers.
In the beverage industry, the beer market is among
the categories that has seen consistent innovations
released from small and large players. For a company like
HEINEKEN USA, White Plains, N.Y., the global brewer
benefits from the support of a large-scale parent company
yet still operates with the flexibility of an emerging brand.
“Although Heineken is a global company, we think
and act like a small, nimble player and jump on market
opportunities quickly,” says Jenna Behrer, vice president
of innovation and activation for HEINEKEN USA.
“We keep a close eye on emerging consumer trends
and believe firmly that a market can be developed if
you have the right product at the right time that meets
a consumer need. We ask ourselves, what are the
incremental drinking occasions when consumers are
currently not drinking beer and what can we innovate to
change that? These are opportunity spaces.”
These opportunity spaces are designed to weave the
consumer trend with the consumer need state, Behrer
explains.
“We identify ‘white space’ in the market and innovate
in a way that fills that space with products for which we
know there is — or will be — a consumer demand,” she
adds.
That white space identification led HEINEKEN USA to
develop a collection of innovations that recently hit the
U.S. market: Tecate Titanium, Dos Equis Mexican Pale Ale
(MPA), Heineken 0.0 and Strongbow 100 Cal Slim Cans.
The most recent launch is Tecate Titanium, a Mexican
import beer that features a 7.5 percent alcohol-by-volume
(ABV) content that is packaged in 24-ounce aluminum cans.
“Tecate Titanium is in a sweet spot that really
capitalizes on the continuing growth of Mexican imports
and the more recent demand for higher ABV products,”
Behrer says. “There is no brand that currently occupies
this space. We saw this as a gap in the market where
most of the high ABV options are non-beers, domestic
beers or hoppy crafts.”
Although it features a higher ABV content, Behrer notes
the company designed it to still offer top-notch drinkability.
“Tecate Titanium delivers a bold yet refreshing taste that
packs a punch,” she says. “Its distinct aroma and flavor are
the result of an obsessive and tireless brewing process that
results in the high alcohol content but great drinkability.”
Yet, Behrer says that the beer market is seeing
polarization when it comes to drinking occasions. “At one
extreme consumers are seeking higher ABV products; at the
By Jessica Jacobsen
HEINEKEN USA
takes nimble
approach with
innovations
other, they are abstaining from alcohol altogether,” she says.
“There’s plenty of room at both ends to satisfy consumer
needs with unique, premium, great-tasting products.”
At the other end of the spectrum, HEINEKEN USA
developed Heineken 0.0, an alcohol-free malt beverage.
“The non-alcohol beer segment is growing globally,
particularly in traditional beer markets like Spain and the
U.K.,” Behrer says. “This trend is arriving in the U.S, and
we’re getting out early with a premium product to satisfy
consumers who appreciate beer taste and want a beer for
occasions when they don’t necessarily want to consume
alcohol. Heineken 0.0 is not a substitute for beer with
alcohol; it’s an incremental opportunity.
“There are plenty of non-alcohol beers currently in
the market, although few are premium and most fall
short of authentic beer taste,” she continues. “Heineken’s
master brewers created the new zero-alcohol beer using a
breakthrough process that removes the alcohol but keeps
the taste, resulting in a beer brewed for beer lovers, by
beer lovers. Heineken 0.0 disrupts the category and offers
a new take on how people drink and enjoy beer, bringing
for the first time a great beer taste to the non-alcohol
space.”
HEINEKEN USA also is taking its popular brands like
Dos Equis and giving it a fiery twist.
“We developed Dos Equis MPA in collaboration with the
sports bar distribution channel, as an interesante twist on a
traditional and popular beer style,” Behrer explains. “Beer
drinkers who are looking for a bit of heat absolutely love
it. With the use of citrus hops and peppers, MPA takes the
Pale Ale brewing process and adds a Mexican twist that
delivers its fresh, spicy taste.”
Dos Equis MPA hit off-premise locations in Texas last
month and will expand to other Sun Belt states, Behrer
adds.
For HEINEKEN USA, packaging innovations are just as
vital as new product development. That is why the company
released Strongbow 100 Cal Slim Cans at the start of 2019.
“Given [that] 70 percent of millennials are looking to
cut back on cals [sic] from beverages, we understand
the importance of consumers feeling good about what
they drink,” Behrer says. “That’s why Strongbow creates
refreshing new products with no artificial colors or flavors
that are always gluten free — and now with less guilt in the
100-cal cans.”
The new packaging format is available in Original Dry,
Rosé Apple and Dry Pear. BI (Images courtesy of HEINEKEN USA)
bevindustry.com | MARCH 2019 | Beverage Industry | 51
 ADVERTORIAL
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FRANKLIN, WI 53132
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Krones NA Brewing Systems:

Made in the USA – Powered by
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W
ith the acquisition of W.M. Sprinkman in fall of 2018, Krones greatly
expanded its offerings to the North American Brewing market. Retaining
Sprinkman’s manufacturing sites in Waukesha and Elroy, Wis., Krones
now supports the craft brewer through every stage of growth — from 5bbl
Pub & Pilot systems to 100+bbl Steinecker brewhouses. At the upcoming Craft
Brewers Conference/Brew Expo, we will be promoting our new extended portfolio
and bringing understanding to our new motto – Made in the USA, Powered by
German Engineering.
Joining forces with Sprinkman allows Krones to meet North American brewers
needs better than ever before:
Pub & Pilot Brewhouses
The smallest of the brewhouse offerings, the Sprinkman Pub & Pilot is designed
for small options such as tap rooms and keg-focused breweries with an average
output up to 1,500 bbl per year. Available in 5, 7, and 10 BBL setups, the Pub &
Pilot features the same quality design as the larger brewhouses available but
with a smaller build. This brewhouse features a standard two-vessel design with
a mash/lauter tun and brew kettle/whirlpool and is made in the USA.
MicroCube
MicroCube is ideal for small- and medium-sized breweries with limited bottling
and canning capabilities and an average output of up to 1,500 bbl per year with
10 to 30 bbl sizes. Featuring a compact design, the MicroCube was developed
with limited floorspace without sacrificing the features needed to produce a
quality beer. In fact, the MicroCube doesn’t just produce more beer, it utilizes a
manually operated, touchscreen-equipped S7-300 Universal Controller to help
make better beer. This brewhouse has an optional third vessel allowing for more
efficient production and is now made in the USA for North American customers.
CombiCube
Designed with the established brewery in mind, the Steinecker CombiCube can
handle an output of up to 100,000 bbl per year with sizes from 10 to 85 bbl and
comes standard with three vessels and the option to add additional vessels
depending on the brewery’s needs. As with the MicroCube, the CombiCube
features a compact layout to maximize floor space for other equipment and
comes fully automated to ensure the highest quality beer. In addition, the
CombiCube includes a standardized module for utilities and CIP system. Finally,
the Sprinkman CombiCube is made in the USA for North American customers.
Steinecker
The gold standard of our offerings, the Steinecker brewhouse is built for the
highest quality possible, engineered and manufactured in Germany. Designed
for large, well-established breweries, this brewhouse range can handle outputs
of 100 bbl or more and can feature the most energy saving technology available.
Whether you’re a small operation just starting out or a large, well-established
brewing operation, Krones has a brewhouse designed to meet your needs.
From the Pub & Pilot to the Steinecker, each brewhouse is more powerful and
customizable than the last.
Botec F1 – Automated Batch Oriented Technology
Botec F1 is Krones’ process control system that monitors and controls every
stage of batch production. This powerful but easy-to-use system allows for
consistent production, ensuring customers receive the same quality product,
batch after batch.
Stand-Alone Products: Vessels, Portable CIP Carts, Dry Hop
Skids, Yeast Brines and Tanks Vessels – Also at Krones’ Sprinkman
facility we can produce ASME Certified 5-600 bbl vessels, brewhouse additions,
and water system upgrades.
Custom CIP Skids and Portable CIP Carts – Our custom CIP skids are
prewired for the growing brewhouses and are ASME Certified. For small or more
mobile needs, our portable CIP cart design includes two tanks, an inline heating
element, a pump with VFD for speed control and all the necessary valves and
tubing. Simply plug it in and utilize the convenient control panel to operate the
cart.
Dry Hop Skid – Improve the quality and efficiency of delivering dry hops from
the safety of the cellar room floor with a Dry Hop Skid. Through comparative
testing, brewers have reported that due to the skid’s ability to immediately but
gently break down pellets, they have been using up to 20 percent fewer hops
to achieve similar taste profiles. In addition to hops, this cart can dose purees,
fruit pieces, cocoa nibs, coffee and more.
Come by the Krones booth (No. 14003) at the Craft Brewers Conference/Brew
Expo in April to see our product offerings from Steinecker, Sprinkman, Evoguard,
and Syskron, specifically tailored to the wants and needs of craft brewers.
House of Krones

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These features and more make it the perfect fit:
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(414) 409-4300
barry.fenske@kronesusa.com
 Packaging By Taylor Karg

Flexibility
holds the key
Case packers, AUTHOR AND PHILANTHROPIST TONY ROBBINS ONCE SAID, “STAY

wrappers continue committed to your decisions, but stay f lexible in your approach.” Although meant
in the context of following one’s life goals, staying f lexible in one’s approach also
to evolve can be beneficial to beverage manufacturers and the equipment they incorporate
in the warehouse. The demand for innovative packaging equipment that not
only is f lexible, but easy-to-use, can handle a variety of packaging types
and offers quick changeovers is driving the market for case packing and wrapping
machinery.
Efficient case packing and wrapping equipment shipping boxes, Gessler says.
begins with flexibility, industry experts note. “This robotic solution was created specifically to
“Beverage-makers are seeking case packing and address the need for package format flexibility,” he
packaging equipment solutions that can run more says. “The ability to adapt to package formats that
than one packaging design,” says Rick Gessler, vice suit retailers ranging from club stores to convenience
president of engineering and marketing at Delkor stores and mass grocers allows producers to leverage
Systems, St. Paul, Minn. “Flexibility is becoming the flexibility of this equipment to adapt to a
more important for beverage-makers because of changing marketplace. Beverage-makers can switch
changing retailer requirements and the growing to any of these package formats with just a simple,
adoption of retail-ready packaging designs.” tool-less changeover process.”
“… We consistently see three main trends Todd Welker, beverage sales manager at
prominently within the beverage industry,” he Alexandria, Minn.-based Douglas Machine Inc. also
continues. “First, packaging equipment flexibility highlights the important of flexible solutions with
continues to be important. Today’s packaging easy changeovers. “New lines typically require both
equipment must be flexible to erect, pack and size and format flexibility,” he says.
seal multiple package formats such as shelf-ready “This requirement [then] drives the need for
packages (SRP), club store trays and standard simple and potentially automated changeover
[restaurant supply chain] (RSCs) and [foodservice functions,” Welker continues. “More [packaging]
supply chain] (FSCs) [solutions]. formats mean that operators are performing more
“An example of this is the introduction of flexible changeovers, so ease and simplicity of changeovers is
pouches used by essential. Functions such as automatic lane changes,
Daily’s Cocktails into rotary counters with [human-machine interface]
a retail environment HMI feedback, and automatic changeover features
where pouches had not simplify changeovers and decreases downtime.”
previously existed,” he The need for multiple sizes and formats for core
says. “Daily’s leverages brands, as well as co-packing requirements also are
the Delkor Cabrio Case contributing to the flexibility factor, he adds.
to present their cocktail Delkor’s Gessler also notes the importance of
pouches at a wide range simplified changeovers and its ability to drive
of retailers.” innovation for beverage manufacturers. “The second
The Cabrio Case is trend we see is related to package flexibility, which is
designed and packed the machines’ ability for quick changeover between
by the company’s LSP package formats, with a fast return to 100 percent
Series Robotic Case production,” he says.
Packer, which can pack In addition to quick-change cartridge-style tooling,
pouches and bags into a trend to meet these changeover requirements is the
retail-ready packages, engineering of tool-less changeover processes that
>>

Three common trends in the case packing and wrapping industry include machine-to-
package flexibility, simplified changeovers and reduced downtime, Rick Gessler says. stackable club store enable plant operators to quickly set the packaging
(Image courtesy of Delkor Systems Inc.) trays and standard lines to run different package formats while reducing
continued on page 56

54 | Beverage Industry | MARCH 2019 | bevindustry.com

 THERE’S MORE TO EXPLORE AT…
BEVINDUSTRY.COM

polls videos image webinars new

galleries products
 Packaging
continued from page 54
production downtown, Gessler adds.
Reducing production downtime is the third most
common trend, he continues. “Beverage-makers have
a greater need now more than ever for higher uptime
and operating efficiency,” he says. “Time is money
when in a production plant and any lost time due to
a machine being down or being changed over can be
costly for a beverage business. That means end-of-
line systems must be engineered to meet aggressive
uptime requirements but also speed for production.”
In line with this trend, Delkor designed the
Performance Series Loader, a compact case loading
machine that not only offers flexibility, but produces
a wide range of finished packages using a minimum
of change parts that are 3-D printed to enable quick
deployment of new package formats, according to
Gessler.
Douglas Machine also offers a machine with
simplified changeover requirements: the CpONE
Intermittent Motion Case Packer. The CpONE
features a 45 percent reduction in changeover points
with 40 percent fewer parts required to do so,
allowing for simple operation and maintenance, the
company says.
>>
several factors, experts note.
Reduced case count is driving faster line speeds in
secondary and tertiary packaging, therefore, future
packaging sizes will need to be taken into account,
Douglas Machine’s Welker explains. “For example, if
you currently run a 12-count case and are suddenly
directed to a six-count case at twice the speed, it is
better to plan ahead for [that kind of] flexibility in
lieu of replacing entire systems,” he says.
Delkor’s Gessler echoes similar sentiments
about the importance of determining what type
of packaging will be running on the line, today
and into the future. “If you think you’ll need
to accommodate new package designs such as
shelf-ready packaging, then it is critical to invest
in a case packer that will enable you to pack more
than one package design,” he explains. “Having a
simple changeover to transition from one package
style to another is also important in this case to
help reduce downtown at a plant.”
Implementing fully automated operations also is
an important consideration for beverage-makers.
“For companies who have not fully automated
their end-of-line operations, the most important
consideration is to determine whether it’s time to

New packaging lines typically require both size

and format flexibility, like being able to run six- and
THINKING AHEAD do so,” Gessler advises.
12-count packs, Todd Welker says. (Images courtesy Before investing in new case packing and wrapping He highlights McManis Family Winery, a
of Douglas Machine Inc.) equipment, beverage-makers should consider customer that experienced increased demand,

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56 | Beverage Industry | MARCH 2019 | bevindustry.com

“Flexibility is becoming more important
for beverage-makers because of changing
retailer requirements and the growing
adoption of retail-ready packaging designs.”
— Rick Gessler, vice president of engineering
and marketing for Delkor Systems
necessitating the need to fully
automate its line to keep up with
demand. McManis implemented the
Delkor Flex Loader, an automated
case packer that was customized
to suit the company’s needs such
as stainless steel for washdown,
tempered glass doors and flap
conditioners to ensure case flaps are
optimally opened for when wine
bottles are loaded, he adds.
GREEN MACHINES
As an increasing number of
consumers trend toward sustainable
packaging options, equipment
companies also are working to
accomplish the same goals. Although
sustainability has made a significant
impact on the industry as a whole,
most of the changes lie within
packaging designs, Delkor’s Gessler
says. However, more retailers are
demanding that secondary packaging
follow these same guidelines.
“More retailers and beverage-
makers are adopting more
sustainable package designs that
both reduce material use and can
be recycled after use,” he says. “For
instance, Walmart has been one
such retailer that has established
aggressive sustainability goals and
has tied their adoption of retail-ready
packaging to those goals by requiring
all [retail-ready packaging] that
are used in their stores to be fully
recyclable.”
To address sustainability
specifications, Delkor designed the
aforementioned Cabrio Case, which
is optimized for flexible products
such as pouches, as well as the
Turbo Case, which is ideal for rigid
containers such as bottles, Gessler
explains.
“Both designs use recyclable
corrugated materials and the Turbo
Case’s shrink wrapping is made
of recyclable plastic,” he says. “In
addition, both help beverage-makers
save significantly in materials, which
help improve sustainability and drive
down cost.”
The Cabrio Case saves as much
as 20 percent in materials compared
with traditional tear-away hood
cases, while the Turbo Case saves
as much as 40 percent in materials
compared with traditional shipping
boxes, according to Gessler.
Sustainability has been a strong
topic of conversation during the past
few years as companies strive to
reduce their environmental footprint
and “go green,” Douglas Machine’s
Welker says. However, as packaging
formats decrease to smaller sizes and
counts, it also drives up packaging
speed and flexibility, thereby
potentially requiring more materials,
he warns.
ADVANCED ENGINEERING
Current trends in the packaging
industry will continue to drive
innovation for case packing and
wrapping equipment, experts
say. “Engineering will continue to
advance case packing machines to
be more versatile and require less
maintenance,” Delkor’s Gessler says.
For instance, the technology used
in the above-mentioned Delkor
Performance Series Loader has
helped case packers more efficiently
pick-and-pack patterns at high
speeds while removing the need for
additional parts such as collation
chains, buckets and fixed guides,
Gessler says.
Less machine parts required equates
to less maintenance and less capital
investment on said parts, he adds.
“Additionally, 3-D printed
replacement parts such as printed
12oz Sleek
pickup heads will also be more prevalent
in future case packing equipment to
help reduce cost of parts and increase
speed of receiving replacement parts for
machines,” he says. Carbonated Sodas
Douglas Machine’s Welker also
highlights that machines requiring Functional Beverages
less materials for changeover will
continue to drive innovation in the Sparkling Waters
industry. Beverage manufacturers
copacking@nveusa.com
will look for machines that operate at
higher speeds while simultaneously
requiring less materials to get the job
done, he says. BI (973) 601-8484
bevindustry.com | MARCH 2019 | Beverage Industry | 57
 Packaging
PACKAGING
PACKA
AGIN
NG NEWS
NE
EWS
S
A FLASHY REFRESH
Green Flash Brewing Co. unveiled its logo redesign
and packaging refresh to coincide with the
announcement of the return of its original West
Coast IPA and the launch of its 2019 lineup. The
2019 Green Flash portfolio features the return
of the original 7 percent alcohol-by-volume West
Coast IPA, alongside new beers, returning favorites
and special releases, the company says. The new
branding is intended to reconnect Green Flash
with its San Diego origins, through packaging that
prominently features custom artwork by illustrator
Matthew Jay Fleming, whose illustrations depict
the vibrant San Diego lifestyle, it says. “Our new
visual identity represents a dramatic shift for the
Green Flash brand and reinforces its origin as one
of the original San Diego craft beers,” said Ben
Widseth, Green Flash Brewing’s vice president of
marketing, in a statement. Along with the logo
refresh, all Green Flash core beers now will be
offered in 12-ounce cans.
ROMA-INSPIRED
Peroni Nastro Azzurro announced a
packaging refresh including a new logo,
bottle design, updated glassware and
redesigned secondary packaging. The
refreshed bottle and glassware feature
sleek and stylish designs that draw
inspiration from Peroni’s
rich history and updates
its iconic elements, the
company says. The bottle,
transformed into an elegant
shape with curves, features
a new version of the Birra
Peroni crest that includes
a Roma callout spotlighting
the brand’s roots, and a
color palette designed
to reflect the warmth of
Rome, it adds. The signature blue ribbon takes on
a new shape, and an engraved signature of one of
the founding fathers, Giovanni Peroni is featured
on the bottle and the glassware, the company says.
“This rebrand signifies an exciting time for Peroni
Nastro Azzurro, as we continue to grow in the United
States,” said Paul Verdu, vice president of sales and
marketing for parent distribution-company, Tenth
and Blake Beer Co., in a statement. “Our brand has
an enormous amount of history and our bottle is a
timeless icon. We wanted to ensure we evolved it
into the future without forgetting our past. We hope
58 | Beverage Industry | MARCH 2019 | bevindustry.com
the new campaign and striking redesign will continue
to set us apart and showcase our timeless Italian
heritage and style in a modern, approachable way.”
ADDED TRANSPARENCY
Bud Light announced a new secondary packaging
design that now includes a comprehensive on-
pack serving facts and ingredient label. In addition
to listing the ingredients, the packaging also will
include serving size, calories, total fat, saturated
fat, trans fat, carbohydrates, sugars and protein.
“While ingredient labels are not required, consumers
deserve to know more about their beer,” said Andy
Goeler, vice president of marketing for Bud Light,
in a statement. “We brew Bud Light with the finest
ingredients and we’re happy to proudly display them
on our packaging. When people walk through a store,
they are used to seeing ingredient labels on products
in every aisle, except for the beer, wine and spirits
aisle. As the lead brand in the category, we believe
increasing on-pack transparency will benefit the
entire beer category and provide our consumers with
the information they expect.”
A TASTE OF NOSTALGIA
Tippy Cow Rum Cream introduced an all-new look
across its rum cream liqueur lineup including
Orange Cream, Chocolate Shake, Vanilla Soft
Serve and Shamrock Mint. “The new dressed-up
packaging better communicates Tippy Cow’s quality
and provides a bottle display that really stands
out on a back bar,” said John Reiter, president
of parent-company, Midwest Custom Bottling, in
a statement. “The new look increases consumer
recognition of the brand as a high-quality cream
liqueur while colorfully conveying each of Tippy
Cow’s long-loved nostalgic flavors found inside
every bottle.” Tippy Cow is available nationwide at
on- and off-premise locations for a suggested retail
price of $17.99 for a 750-ml bottle. Tippy Cow
50-ml mini bottles also are available for a
suggested retail price of $1.49.
NEW RECIPE, NEW PACKAGING
To coincide with
its new licensee
agreement with
Danone North
America and
Diageo, Baileys
introduced a
reimagined
recipe for its
line of coffee
creamers along
with a refreshed
packaging design.
Available in three flavors — The Original Irish
Cream, Vanilla Cream and Mocha Mudslide — the
new recipe includes the addition of more real dairy
cream and genuine Baileys Original Irish Cream
flavor, the company says. Danone North America
has streamlined the Baileys product line, refreshed
the packaging and expanded distribution to help
consumers find their next everyday indulgence, it
adds. “We are so excited to re-introduce the Baileys
line of delicious and indulgent coffee creamers,” said
Mac Krause, brand manager for Baileys creamers at
Danone North America, in a statement. “We asked
for feedback from consumers and worked closely
with our product innovation team to craft a rich and
creamy coffee experience with the new recipe. We
have focused on optimizing taste and texture, and
we hope Baileys fans —and new fans — enjoy a
splash of Baileys coffee creamer in their next cup of
coffee.” The new lineup of Baileys coffee creamers
now are available at grocery retailers nationwide for a
suggested retail price of $3.99 for a 32-ounce bottle.
U’LL LOVE THE CIDER
Ulee’s Light Cider launched its newest packaging:
a variety six-pack called Mix Six. The new Mix
Six pack includes Original Dry Apple; Bing Cherry
made with cherries from Hood River, Ore.; and
Citra made with Citra hops from the Yakima
Valley in Washington state, the company says.
The apples are a special blend grown in southeast
Washington, it adds. Each flavor of Ulee’s Light
Cider features a 4 percent alcohol-by-volume
content and is gluten free, vegan friendly,
and contains 99 calories and 5 carbs in each
12-ounce slim can. Available in select markets,
the Mix Six variety pack has a suggested retail
price of $10.99.
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 Beverage
Sweet innovations
that are hard to beat
Sweetener solutions A MCDONALD’S TV COMMERCIAL THAT AIRED IN THE LATE 1970S FEATURED
a little boy telling a little girl who was moving away how “neat, sweet and hard to beat”
gain momentum in
she was. When it comes to sweetening solutions like stevia, erythritol and monk fruit,
sugar reduction ingredient suppliers highlight how they also are “moving on” in search of the latest
iteration of sweetening solutions that will reduce sugar content while maintaining
the lower calories and sugar-like taste and texture consumers’ crave.
The need for new and improved sweetening solutions
has never been more important. Government agencies
such as the World Health Organization (WHO) have
long recognized sugar’s contribution to global issues
of obesity, diabetes, heart disease and other chronic
health problems. Since 2015, WHO has recommended
that consumers reduce sugar intake to have 5 percent of
total calories come from added sugars. For adults with a
normal body mass index (BMI), this equates to about six
teaspoons, or about 25 grams of sugar a day.
Experts note that when it comes to sugar, less is
more. Natural, plant-based sweeteners are carrying
more appeal around the world.
According to MarketsandMarkets, the global sugar
substitutes market is projected to reach $16.5 billion
by 2020, growing at a compound annual growth rate
(CAGR) of 4.5 percent from 2015. North America is
estimated to be the largest market for sugar substitutes,
while the Asia-Pacific region is projected to be the
fastest-growing market at a CAGR of 5.5 percent during
the review period. This growth mainly is driven by the
increasing beverage, food, and health and personal care
industries, particularly in developing countries such
as India, Japan, China, South Korea and other Asian
countries, the report states.
Today’s health-minded consumers prefer healthy,
but low-caloric food and beverage products. Experts
note that regular sugar/sucrose and high-fructose
corn syrup increasingly are being replaced by sugar
substitutes in carbonated soft drinks (CSDs), non-dairy
beverages, hard kombuchas, ready-to-drink (RTD) teas
and keto-friendly products.
READ THE LABEL
More educated consumers are researching and
scrutinizing labels at the grocery store, actively looking
for products to see if they are “natural” and “good for
you,” says Angela Skubal, applications lab supervisor
at Hanover Park, Ill.-based Prinova USA.
“This is driving the use of natural sweeteners
because of the demand for products to have a clean
label; meaning very few ingredients that are easy to
pronounce and derived from a natural source,” Skubal
>>
Healthfulness and consumers’ desire for natural
ingredients is driving the growth of stevia and monk says. “In the same token, consumers still do not want
fruit sweeteners. The five-year CAGR of new products
sugar or high-calorie beverages, so high-intensity, no
launched with stevia in North America is 8.6 percent,
Tate & Lyle’s Abigail Storms says. (Image courtesy of calorie, natural sweeteners are at the forefront because
Tate & Lyle) they possess all of these characteristics.”
60 | Beverage Industry | MARCH 2019 | bevindustry.com
Niles, Ill.-based Imbibe’s “Trends 2019 and Beyond”
report affirms that 85 percent of consumers are limiting
the amount of sugar in their diet and 79 percent of
consumers read nutrition facts’ panel labels specifically
looking at the types of sugar or sweetener being used
in a product. In addition, 57 percent of consumers think
low-sugar is important in deciding what to buy.
Abigail Storms, vice president of global marketing
and innovation at Tate & Lyle, Hoffman Estates, Ill.,
concurs that healthfulness and consumers’ desire for
natural ingredients is driving the growth of stevia and
monk fruit sweeteners. “The five-year CAGR of new
products launched with stevia in North America is 8.6
percent and other regions are experiencing double-
digit growth,” she says, citing Euromonitor’s 2013-
2017 New Product Development launches. “Stevia [is]
expected to experience strong growth, with monk fruit
experiencing slightly slower growth.”
As part of its sugar substitute portfolio, Storms says
its DOLCIA PRIMA Allulose offers a low/no calorie
ingredient with the taste and texture of sucrose without
all the calories.
Thom King, president and chief executive officer (CEO)
of Icon Foods, Portland, Ore., continues to see aggressive
growth for stevia, monk fruit, erythritol and combinations
thereof. “Consumers have become way savvier and are
making choices to stay away from nutritive sweeteners,”
he says. “Soft drinks formulated for an adult demographic
are impacting usage of stevia and monk fruit. These are
less sweet and have more exotic flavors.”
Maga Malsagov, CEO of Chicago-based PureCircle,
agrees: “The major beverage companies are responsibly
working to reduce sugar and calories in their portfolios.
And in carbonated soft drinks, the diet segment is
performing better than it has in recent years. The
growing use of stevia … up more than 33 percent
in new product launches, is providing beverage
companies with a natural zero-calorie sweetener
that will broaden the appeal of zero- and low-calorie
products and give consumers more choices.”
WEARING THE CROWN
The global demand for sugar substitutes is on
the rise, particularly in the beverage industry.
Experts note that the demand is governed by
their performance quality, incorporation of food
processing, sweetness intensity, and regulations
 By Barbara Harfmann

imposed by international and local governments.
The Cleveland-based Freedonia Group predicts
alternative sweeteners will hit $1.6 billion by 2020,
which is roughly one-third higher than in 2010.
“Because consumers want the same sweet flavor
with less sugar, many brands are turning to sweeteners
like stevia and monk fruit as alternatives,” states
a New York-based Nielsen Insights. “Stevia will
dominate the natural, non-nutritive sweetener category
since it is approved for use in food and beverages in
North America, European and Asian countries and is
considered more clean label than artificial sweeteners,
which 54 percent of consumers are avoiding.”
Because usage of stevia and erythritol is on the rise,
ingredient companies are accelerating the development
of next generation stevia sweeteners, which offer “a
significant improvement in taste quality,” says Kurt
Callaghan, marketing manager of global sweetness
innovation at Westchester, Ill.-based Ingredion Inc.
Several ingredient and sweetening companies also
are joining forces when developing, producing and
distributing non-caloric and non-GMO sweeteners.
For instance, Ingredion partnered with nature-based
sweetener company Sweegen Inc. as the exclusive
industry leading sugar reduction formulation expertise,”
Callaghan explains. “Ingredion currently distributes the
products in North America, Colombia, Ecuador, Peru,
Australia and New Zealand, with additional countries as
regulatory approvals are granted.”
BESTEVIA is made from 95 percent pure Reb M that
is produced from the stevia plant, says Elena Zalewski,
Ingredion’s associate marketing manager for sweet.
Among Ingredion’s other sweetening options are
ENLITEN Fusion stevia sweeteners, which identifies
synergies and combines the best attributes of multiple
steviol glycosides. In addition, Ingredion and Itami,
Japan-based Matsutani Chemical Industry Co., partnered
to jointly bring ASTRAEA Allulose to the North American
market. “This ingredient solution has a similar taste profile
to sucrose and is 70 percent as sweet, helping you add
sweet appeal to your low-calorie indulgences,” she adds.
In addition to BESTEVIA Reb M and Reb D, Rancho
Santa Margarita, Calif.-based Sweegen’s newest
ingredient, Bestevia e+ contains multiple stevia
sweeteners and creates a taste profile close to sugar at a
cost-competitive price, according to Katharina Pueller,
Sweegen’s director of natural sweetener business.
“Reb M as a stand-alone has certain restrictions in

global distributor for BESTEVIA Reb M and Reb D.
“The partnership enables both companies to benefit
from each other’s strengths: Sweegen’s industry leading
manufacturing technology capabilities and Ingredion’s
non-alcoholic beverages due to patent protections,”
Pueller says. “Bestevia e+ was created for non-alcoholic
beverages but really works well in all formulations.”
To continue raising the bar in sweetener innovation,
continued on page 62
>>
Plant-based stevia is growing in popularity and
being used in ready-to-drink teas, carbonated soft
drinks and non-dairy products to reduce calorie
content and improve taste, experts say. (Image
courtesy of Prinova USA)

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 Beverage
“The major beverage companies are responsibly working to reduce sugar and calories
in their portfolios. And in carbonated soft drinks, the diet segment is performing better
than it has in recent years. The growing use of stevia … up more than 33 percent in
new product launches, is providing beverage companies with a natural zero-calorie
sweetener that will broaden the appeal of zero- and low-calorie products and give
consumers more choices.”
— Maga Malsagov, chief executive officer at PureCircle
continued from page 61
Minneapolis-based Cargill and Heerlen, The
Netherlands-based Royal DSM announced a new joint
venture: Avansya. The collaboration is designed to
bring zero-calorie, cost-effective sweeteners to market
faster. Avansya will produce highly sought-after, sweet-
tasting molecules, such as steviol glycosides Reb M and
Reb D through fermentation, giving food and beverage
manufacturers an even more scalable, sustaining and
low cost-in-use solution, the companies say.
Pam Stauffer, global marketing programs manager
at Cargill, highlights that stevia and erythritol in
combination provide a sweet taste without sugar or
calories. “For product formulators, they are versatile
ingredients that can address both the technical issues
of formulating without sugar, while also meeting
consumers’ label expectations.”
62 | Beverage Industry | MARCH 2019 | bevindustry.com
STEVIA’S EFFICACIOUS
AND SUSTAINABLE FUTURE
As a natural plant-based product, ensuring there
is enough stevia to meet supply chain demand is
important. Several beverage companies have launched
projects to ensure stevia’s sustainability. For example,
Tate & Lyle, along with Sweet Green Fields, have
embarked upon a new research project with the
independent nonprofit Earthwatch to identify steps
to ensure that as the stevia market grows, sustainable
growing practices consistently are embedded and socio-
economic benefits are maximized.
Advances in extraction processes have made offnotes
in monk fruit and stevia totally manageable, Icon
Foods’ King says. The company maintains an exclusive
contract with its stevia manufacturer partner BioLotus
to ensure exceptional extraction standards and
continued on page 64
 SUGAR REDUCTION
MATTERS IN
FOODSERVICE
Your patrons want low and no sugar menu items.
Through our foodservice expertise and our complete
sugar reduction toolkit, we help you deliver the
reduced sugar food and beverage solutions they
demand, with the sweetness they expect.

Download our ideas2solutions

brief to discover new opportunities:
www.ingredion.us/foodservice/reducesugar | 1-800-713-0208

The Ingredion mark and logo are trademarks of the Ingredion group of companies. All rights reserved. All contents copyright © 2019.
 Beverage
>>
At SupplySide West, Cargill showcased a grapefruit
basil flavored cocktail mixer using EverSweet
sweetener and a small amount of erythritol to balance
the product’s sweet and sour notes, the company
says. (Image courtesy of Cargill)
R&D NEWS
As part of the American Heart Association’s
Heart Health Month in February, Ft. Wayne,
Ind.-based Artemis International announced a new
partnership with Weider Global Nutrition, Phoenix.
Artemis’ BerryDark Aronia 15% will be a key
ingredient in Weider’s Artery Health formulation
supplement to support healthy heart function by
keeping arteries flexible though proper calcium
transportation and increased blood flow, the
companies say. Aronia berries contain flavonoid-
rich antioxidant ingredients that help consumers
maintain proper cardiovascular health, they add.
Chr. Hansen, New Berlin, Wis., topped the 2019
global index of the 100 most sustainable
companies, as announced during the World
Economic Forum in Davos, Switzerland. The
145-year-old company is ranked the most
sustainable company in the world by Corporate
Knights, a specialized Toronto-based media
and investment research firm. More than
7,500 companies were analyzed against global
industry peers on a number of quantitative key
performance indicators. Chr. Hansen scored
100 percent on the “clean revenue” indicator,
reflecting that the company’s products have
clear environmental and certain social benefits,
the company says.
Los Angeles-based ChromaDex Corp.
(CDXC) and Arlington, Va.-based Nestlé
Health Science (NHSc) have entered into a
global commercial license and supply
64 | Beverage Industry | MARCH 2019 | bevindustry.com
continued from page 62
stewardship of the land, King says. “We have partnered
on an exclusive water extraction process and our
PuRefine resin column purification process … results
in a very clean-tasting extract for our stevia and monk
fruit [with] an amazing clean and neutral sweetness.”
Experts note that masking solutions can help
overcome the challenges of working with high-intensity
natural sweeteners.
Prinova’s Skubal notes that flavor and flavor system
formulations have to be more sophisticated to make
products palatable. These ingredients also have a
higher raw material price and have to be used at a
higher level than an artificial high-intensity sweetener
would, necessitating more masking technology and
flavor needs to help alleviate the bitter offnotes.
“Maskers and blockers developed for reducing
metallic, licorice and bitter offnotes work the best,”
she says. “We are fortunate here at Prinova to have
flavorists that dedicate their time to create blockers
specific to certain ingredients and taste profile based on
how these ‘bitter’ tastes are perceived on the tongue. …
This makes the products taste better.”
Andy Ohmes, global director of high intensity
sweeteners at Cargill, notes that sweetness quality and
the presence of aftertaste previously placed limits on
how much first-generation stevia sweeteners could
be used. “However, advances in stevia technology,
such as our ViaTech stevia products, combined with
agreement for the ingredient sales of TRU
NIAGEN. The agreement provides NHSc
the exclusive right to include CDXC’s
patented nicotinamide riboside ingredient
TRU NIAGEN in NHSc branded medical
nutrition, and co-exclusive rights to include
TRU NIAGEN in certain products within
the consumer health category. Under the
terms of the agreement, NHSc will make
an upfront payment of $4 million. CDXC
will receive certain commercial milestone
payments related to the sale of TRU
NIAGEN to NHSc as well as tiered royalties,
the companies say.
International Flavors & Fragrances Inc. (IFF), New
York, was recognized on CDP’s A List for
Climate Change for the fourth consecutive
year and received an “A” in water security
for the first time, naming IFF a global leader
in environmental responsibility. In 2018, the
company established EcoEffective+, a set of
aspirational, environmental goals that include
long-term emissions and water targets.
IFF achieved year-over-year reductions of
14.7 percent and 23.3 percent in greenhouse
gas emissions and water withdraw intensities,
respectively.
Toronto-based Liberty Health Sciences Inc.
announced that Ian McKinnon and John Hick have
been appointed to its Board of Directors.
McKinnon is serving as Chairman of the board.
effective blending of sweetener ingredients significantly
improves the quality of sweetness, enhances sweet/
sour balance and delivers a more robust flavor,” he
says. “We’ve found that using stevia and erythritol
together can result in an excellent tasting beverage.”
The company’s new EverSweet sweetener allows
product developers to achieve deep calorie and sugar
reductions, while reducing or eliminating the need for
expensive masking agents and modifiers, achieving
cost-effectiveness and a reliable, consistent and
sustainable supply, Ohmes adds.
PureCircle’s Malsagov notes that stevia has gone
from a plant-based, zero-calorie, single-ingredient
sweetener to a range of stevia leaf sweetener
ingredients, including Reb M and Reb D, which have
the most sugar-like taste, he says.
“We are also expanding our offerings of stevia leaf
ingredients to include, not just sweeteners and flavors,
but also protein, fiber and antioxidant ingredients —
all from the stevia plant,” Malsagov says. “This new
development will enable PureCircle to utilize much more
of every stevia leaf and to make each leaf ‘work harder.’
“We anticipate food and beverage companies will
increase their use of stevia as their go-to, non-GMO
sweetening solution, as well as using stevia as a
functional ingredient,” he continues. “This will provide
consumers the great-tasting, plant-based ingredient
they desire.” BI
CREATOR’S BRIEFS
CREATIVELY COMBINING
COFFEE, TEA AND DAIRY
Having identified millennial consumer tastes trending
toward a passion for coffee and tea beverages, Symrise
now offers a collection of specialty flavors designed to
deliver the popular tastes of tea, coffee and dairy products,
including milkshakes, yogurts, ice cream, and more. The
new collection provides a gateway to an indulgent, authentic
taste adventure developed in response to the company’s
proprietary consumer insight study titled “Conserve,
Preserve. Shaken or Stirred,” wherein processing, mixing
and infusing sometimes opposing ingredients together
transforms flavor profiles to create something uniquely new,
it states. The combination of unusual, rare ingredients and
special sourcing together with a unique process, creative
composition and an intriguing story has been showing
success for dairy products, especially outside of the usual
flavors and applications, the company says. “Consumers
are looking for that premium experience in their food,
which means pushing the boundaries on taste,” said Ian
Thurston, senior category manager of sweet at Symrise, in
a statement. “Our collection goes beyond what is expected
in coffee and tea flavors, utilizing café favorites and unique
tastes that pair perfectly with dairy indulgences.” To help
bolster the flavor experience within dairy products, flavor
profiles include hazelnut and amaretto, salted caramel, cold-
brew mocha, and hibiscus blossom chai latte in the coffee
category; and matcha, chocolate, vanilla earl grey, and white
peach for tea. The flavors are able to mask any astringent or
sour notes that are challenging for these dairy applications,
it adds.
■ Symrise Inc., 300 North St., Teterboro, N.J. 07608; 201/288-3200;
symrise.com.
 Ingredient Spotlight
In a nutshell
Grains, nuts IN THE MIDST OF THE CURRENT PLANT-BASED FOOD AND BEVERAGE
revolution, consumers are on the hunt for plant-based proteins in a variety of
power plant-based
foods, according to a 2018 whitepaper from Edlong Corp., Elk Grove Village, Ill.
beverages Ranking No. 7 on the list was plant-based protein in beverages with 29 percent of
consumers naming it as a sought-after product, it reports.
Pecan, quinoa, hazelnut and flax are emerging
ingredients gaining momentum as sources for
alternative milks, while 53 percent of U.S. consumers
purchase plant-based milks, the whitepaper states.
Reinventing the authentic taste of dairy, a 20 percent
increase was found in sales of vegan alternatives
versus dairy products from 2016 to 2017, the
whitepaper notes. From 2012 to 2016, global food and
beverage product launches with vegan claims were up
triple digits — 257 percent to be exact, it reports.
The beverage market’s increasing usage of nuts
and grains mirrors trends impacting the entire food
and beverage landscape, experts note.
“The lion’s share of beverages using grains and
nuts are in the dairy alternative milk category,”
explains Holly McHugh, marketing associate at
Niles, Ill.-based Imbibe. “Almond is the most popular
nut milk on the market, but oat milk is expected
to explode in 2019. Many niche products have
also launched over the last few years like cashew,
hazelnut, peanut, quinoa and brown rice milks.”
Jennifer Williams, marketing director of domestic
advertising for the Folsom, Calif.-based California
Walnut Board and Commission, agrees that plant-based
diets are increasing in popularity even by meat eaters
searching for more plant-based options in their diets.
“This has manifested itself in the beverage aisle by a
rapid expansion of the refrigerated milk case,” she says.
“Once dominated by dairy, we’re seeing countless new
nut-based products entering the marketplace.”
The health benefits of nuts also is well-documented
with consumers understanding the value of these
good fats, Williams adds. “With an ingredient
like walnuts, health research is continually being
published touting the ingredient’s impact in
improving heart health, cognitive function and
general well-being,” she says. “As consumers learn of
the amazing health properties of walnuts, we expect
to see them used more in milk products, smoothies
and creamer-type offerings.”
Almonds, another tree-based nut, also are being
added to more formulations as more consumers are
looking to live cleaner, healthier lifestyles, says Jeff Smith,
director of marketing for Blue Diamond Almonds Global
Ingredients Division, Sacramento, Calif. “[C]onsumers
are showing preferences for products that incorporate
all-natural, healthful ingredients such as protein. The
beverage industry is responding to these demands with
new plant-based and high-protein products, leveraging
>>
As consumers strive for clean-tasting, natural
products, plant-based ingredients like almonds, almond ingredients to achieve optimal taste, texture and
walnuts, quinoa and hazelnuts increasingly are being
nutrition.”
used in beverage formulations. (Image courtesy of the
California Walnut Board) Smith notes that almonds stand out because they
are a natural, recognizable superfood that provide
66 | Beverage Industry | MARCH 2019 | bevindustry.com
By Barbara Harfmann
healthy “value-added” ingredients for beverage
producers.
The company’s newest innovation, Blue Diamond
Almond Protein Powder is an excellent source of fiber
and minerals, including calcium, magnesium and zinc,
the company says. The ingredient also has a higher
omega-9 rich fat content than other proteins, which
contributes to a smoother mouthfeel, a clean taste and
a more rounded flavor profile, according to Smith.
SEEDS AT THE CENTER OF GOODNESS
As consumers pivot toward simple, unprocessed
foods with clean-label ingredient claims, the back-to-
nature appeal of grains and nuts within foods
and beverages is on the rise. U.S. launches of
plant–based foods and beverages with a non-GMO
claim grew from 3.8 percent in 2012 to 19.6 percent
in 2017, Chicago-based Mintel reports in a February
2018 press release titled “Taste is the Top Reason US
Consumers Eat Plant-Based Proteins.”
As a clean-label, nutritionally focused,
plant-based product, Blue Diamond Almond Protein
Powder also is dairy free, gluten free, soy free and
non-GMO, making it well suited for consumers who
are making the switch to a cleaner, plant-based diet,
Blue Diamond’s Smith says.
Almonds also pack a punch of protein and fiber.
“Almond protein delivers approximately 41 to 44
percent protein, making one 30 gram serving a good
source of protein,” he explains. “The powder derived
from whole brown almonds is also an excellent
source of dietary fiber, comprised primarily of
insoluble fiber, and many other important minerals
and nutrients that can help consumers fill gaps in a
primarily plant-based diet.”
Known for their role in premium baking, walnuts
are adding a unique flavor and texture to a variety of
foods and beverages. Research shows that 72 percent
of consumers would purchase a product containing
walnuts, while 82 percent said that health benefits are
one of the main reasons they purchase these products,
the California Walnut Board’s Williams says.
In addition to ready-to-drink smoothies, milks and
creamers, more teas are being infused with grains
and nuts, experts note. The ingredients also are
popping up in alcohol and non-alcohol drinks on-
premise. “We have even seen some restaurants use
walnuts in cocktails through walnut milks, walnut
infused cocktails and bitters,” Williams says. “…
Walnuts are an excellent source of alpha-linolenic
acid [and] plant-based omega-3 fatty acids are
certified by the American Heart Association with the
Heart-Check mark.” BI
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Train, retrain,
retain, repeat
Shortage of qualified TRAINING IS TRICKY BUSINESS, ESPECIALLY IN AN ERA WHERE BEVERAGE
distributors in virtually every U.S. city are dealing with a shortage of qualified CDL
CDL drivers poses
drivers. Finding them is hard enough. Keeping them is even harder. And when
industry challenges your operation invests in providing your delivery team with all of the world-class
tools and techniques to keep them running on all cylinders, the last thing you
want is to watch competing companies and industries poach your talent.
“This is an ever-increasing problem, especially in trainers attend training alongside Texas state troopers in
more urban areas where motor carriers have terminals the state-defined process of administering the road test
or major companies may have distribution centers — portion of the CDL testing process,” Pritchard explains.
such as Domino’s, Papa John’s, Panera, SysCo and other “This has allowed [Silver Eagle] to avoid the long lines
food suppliers,” says Steve Golladay, manager and at the DMV to secure CDL testing appoints. Of course,
owner of the supply chain logistics consultancy Total this process is laborious and does come with great
System Thinking Solutions. “Retention is becoming more responsibility, for which we are bonded and sworn to
difficult because you hire and then train a person for a uphold the highest standards prior to awarding CDL
CDL and they become a valued ‘commodity.’ Retention status to a Silver Eagle CDL candidate.”
starts first with recruiting the right candidates, secondly Silver Eagle requires its drivers to complete a
by challenging the status quo of the job itself: ‘Are there detailed and in-depth training program, with a
ways to make the job more appealing and/or enabling minimum numbers of hours set for the different
expansion of the available labor pool?’” phases of the process. The company’s goal is to get
Most won’t outspend the major commercial carriers, each student the maximum amount of one-on-one
but you can create the “ideal” job for the drivers who training possible in the behind-the-wheel phase of
like to be at home every night while still providing the training, according to Pritchard.
best customer service and satisfaction based on the When Silver Eagle CDL candidates are not training in
needs and requirements to get your beverage products a one-on-one environment with one of the distributor’s
to retailers and consumers, Golladay adds. dedicated driver trainers (DDT), the company has
Trained driver poaching is an ongoing challenge for incorporated three four-door training trucks — aka
Houston-based Silver Eagle Distributors. quad cabs — with a second-row seat allowing trainees
“Most companies in our market area who need CDL to ride, observe and critique one another in a group
drivers know if they can tempt a Silver Eagle driver to training environment.
jump ship, they are getting a highly qualified driver,” “This is a valuable tool which allows trainees to see
says Ed Pritchard, senior vice president of fleet how things work in a commercial motor vehicle from a
management and purchasing at Silver Eagle. “Our different perspective,” Pritchard says.
training program has the reputation of producing After the initial training and licensing phase is
good quality drivers. If CDL candidates make it complete, the trainee will then undergo training on a
through our training program, they become highly live route with a sales rep trainer to help them prepare
sought-after by other companies.” to operate independently on a delivery route, he adds.
When it’s purely a financial decision, Silver Eagle is “A big part of training should be supervisor ride-
often able to make an attractive counter-offer to keep alongs where the manager observes behaviors and gives
the drivers on staff. “In other situations, drivers are timely and appropriate feedback to the employees,”
leaving simply because they’re looking for something Total System Thinking Solution’s Golladay advises. “Lots
that isn’t quite as demanding from a physical aspect,” of companies now use computer-based training with
Pritchard continues. “It’s also worth noting that periodic refresher sessions that include testing. However,
roughly 10 percent of the drivers who leave end up the best is still observation and feedback.”
coming back when they realize that the grass wasn’t as Silver Eagle’s Pritchard recommends that drivers
green as they were led to believe.” should complete a refresher course at least once year.
Pritchard’s team has hired additional trainers and “No matter how good they are, drivers will develop
purchased more equipment to help keep pace with bad habits and behaviors over time,” he says.
driver turnover. The CDL driver shortage has created “Refresher training can bring these issues to the
a huge backlog in available testing appointments at forefront,” he continues. “Drivers that continuously
the local DMV, which prompted Silver Eagle to seek exhibit poor decision-making or otherwise bad driving
certification as Third-Party State Testers, by the Texas behavior that can’t be corrected may require either
Department of Public Safety. more behind-the-wheel training or simply be removed
“This is a rather lengthy process where our driver from an active driving role.” BI

68 | Beverage Industry | MARCH 2019 | bevindustry.com

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 Operations By Barbara Harfmann

Promise and preciseness

Technology spurs FOOD AND BEVERAGE PROCESSING EQUIPMENT CONTINUES TO BE HIGH

customization in demand. Requests for automation integration and advancements in customized

equipment could drive the market past $78 billion by 2022, according to business
operations consulting firm Frost & Sullivan. Changing dietary preferences worldwide,
improved economic conditions in emerging nations as well as a demand for
healthy, safe food and beverages, has influenced the development of processing
and packaging machinery that support those trends, thereby creating an upswing
in the market. Because of this upswing, the firm predicts that the global food and
beverage processing and packaging market will expand at a compound annual
growth rate (CAGR) of 4.1 percent from 2017 to $78.6 billion in 2022.
“With increasing food and beverage product demand HPP world. In the past three years, we have sold over
and a growing emphasis on food safety, food processors 50 percent of our machines to this sector.”
are reliant on equipment manufacturers to provide In addition to reliable, well-designed and easy-
processing and packaging equipment that is agile and to-use automation processing systems, beverage
utilizes advanced technologies to minimize energy manufacturers’ desire machines that autonomously
usage, operate at a higher efficiency and improve self-diagnose and troubleshoot problems with a
yield,” said Arun Ramesh, team lead, agriculture and high degree of remote support capability, says Kurt
nutrition in visionary science at San Antonio, Texas- Wagner, engineering director for Tampa, Fla.-based
based Frost & Sullivan, in a statement. Trans-Market, a member of the Krones Group. “There
Efficiency, flexibility and quality are cornerstones is also a demand for handheld wireless HII terminal
of any successful beverage operation. Breweries and configuration allowing the operators flexibility of
bottling companies are among the companies using being able to move around and still have access to
Botec (Batch Oriented TECnology) F1, an easy-to-use graphical information assisting in troubleshooting and
IT process control system from Franklin, Wis.-based problem solving,” he adds.
Krones Inc. that monitors and controls the consistency Adaptable, configurable process control equipment
of every product, batch after batch, time after time, the and software also is crucial, says Joe Mazzola, group
company says. manager at McEnery Automation, St. Louis. As a
Atlanta-based New Realm Brewing and co-founders certified member of the Control System Integrators
Mitch Steele and Carey Falcone are among the brewers Association (CSIA), McEnery offers process control
adopting the technology. They purchased a fully equipment (Allen-Bradley PLCs) and software
automated 20-barrel, 4-vessel Steinecker MicroCube (Rockwell Software) that easily adapts to ever-
brewhouse equipped with Botec F1. “The setup changing process operations.
allowed New Realm a capacity of 20,000 [barrels] a year “The PLCs can seamlessly connect to a variety
at full production with the ability to keg, bottle and can of instrumentation from traditional 4-20 signals to
their beer,” Falcone said in a statement. a multitude of communication protocols for more
Aside from processing equipment for the brewing complex instrumentation,” Mazzola says. “Software like
industry, during the past five years, experts have FactoryTalk Batch simplifies new recipe development
witnessed “significant growth” of high-pressure and ensures consistency in batch execution.
processing (HPP) within the beverage industry. “More and more devices are being connected
“HPP has proven to be an effective non-thermal via networks, allowing more complex data to be
preservation technology that enhances food safety, collected and stored from each device,” he continues.
significantly increases refrigerated shelf life, while at “Analytics software is able to use this data to identify
the same time, maintaining the quality organoleptic process points that can be adjusted to reduce energy
properties of the beverage,’’ says Mark Fleck, HPP use in heating or pumping applications, reduction of
consultant at Universal Pure, Villa Rica, Ga. expensive ingredients during batching or blending, or
Noting the great acceptance of HPP products durations of cleaning processes.”
worldwide, Roberto Peregrina, director of Miami- Design should come first when it comes to
based Hiperbaric USA, affirms that HPP is no longer a processing automation equipment, says Trans-
novel technology due to the “booming acceptance” of Market’s Wagner. “One item that we offer is
cold-pressed juices and functional drinks and the batch innovative mix-proof valve manifold skids
processing’s proven ability to extend shelf life and designed with 3-D modeling for easy integration
maintain the organoleptic properties of the beverage. into production systems,” he says. “Knowing the
>>

Noting the importance of design for processing

automation equipment, Trans-Market offers a
mix-proof valve manifold skid designed with 3-D
modeling, making it easy to integrate into production
systems, Kurt Wagner says. (Image courtesy of Trans-
Market)
“This enabled companies to expand to new markets ingredient and final product properties, the processing
and obtain national distribution in some cases like Suja automation equipment can be sized properly to
and Evolution Fresh,” Peregrina says. “This is also handle the different formulations during the design
the application with most acceptance within the and implementation stages.” BI

70 | Beverage Industry | MARCH 2019 | bevindustry.com

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 Operations Perspective
An infinite evolution
Assessing processing
patterns improves
supply chain
John Peter Koss, the Beverage Operations
Advisor, has more than 50 years of
beverage industry experience, is a licensed
registered professional engineer, and can
be contacted at oleboss@aol.com.
72 | Beverage Industry | MARCH 2019 | bevindustry.com
OBSERVATIONS AND EVALUATIONS IN ALL SEGMENTS OF THE BEVERAGE
arena reveal that the constant change syndrome (CCS) is alive and well, thus
creating processing technology and methodology changes at a much faster rate
than at any time in the past several years. It is a domino effect that presents a
constant concern to producers because of the real-time importance of beverage
processing.
Because processing is the first step in the supply
chain, it is important to assess how various stages
have evolved — from manual batch type operations
to automated, computerized and in-line processing.
When evaluating one’s supply chain, evidence that
suggests the need for improvement also implicates
that an evolution in the process could be needed.
These could include new materials development,
handling and regulation; machinery and equipment
design, compatibility, and utilization; and other
related integral technology advances.
Perhaps the most major evolution has been in the
materials used for formulating the product. Before
the SKU explosion, which has been occurring for at
least the past 20 years, fewer products and related
ingredients were used in the manual batch type
scenario. However, with more diversity in the types
of products, sweeteners and ingredients being used,
the materials also have changed either by choice or
by regulation. In many instances, new processing
procedures and quality control requirements have
been dictated by ever-changing rules and laws. Even
when products are created using converted basic raw
materials, new techniques and disposition of residuals
have been developed to ensure safety compliance.
The demand for improved quality and safer products
as well as cost implications have been driving factors in
the materials evolution in many beverages; therefore,
as new products enter the marketplace, raw materials
(e.g., concentrates, extracts, and other forms) continue
the technological evolution and are subjected to closer
scrutiny than in the past.
The materials and ingredients used in formulating
beverages also is not as discreet as before. The domino
effect when material changes occur can impact the
equipment being used to process the materials.
For instance, the manual batch type operation uses
specific types of equipment compatible with the
required processing of the material, but evolution has
shown that even in this scenario, equipment changes
have been required to handle different materials either
in quantity, form or method.
When transitioning from manual to what might be
referred to as semi-automated processing, other factors
should be considered. Because accurate measurement
of materials was often questioned, better methods were
developed on individual pieces of equipment to correct
the measuring task (scaled tank supports, liquid flow
meters, digital ingredient measuring).
By John Peter Koss
From an engineering viewpoint, semi-automatic
processing was confronted with the onset of new and
different products, which in most instances required
more precise measurement and apportionment.
Therefore, more complex, all-inclusive equipment was
designed to accommodate the material change as well
as measurement accuracy.
At this stage of process evolution, the driving
factors of cost and higher frequency material
changes have challenged machinery intelligence.
Although some beverages have been processed by a
totally automated system, the majority of beverages
are processed by manual and/or some form of
automated system.
The processing evolution continues as beverage-
makers develop SKUs with different materials,
more complex characteristics and more demanding
processing, which could require a new generation of
processes, equipment and personnel with higher skill
levels to operate under a new set of conditions.
From an operations perspective, the beverage
processing evolution is critical because operating
conditions will become more complex whether it
be ingredients, products, machinery, equipment
or regulations. The evolution could have no limits
regarding what could occur and what it will cost.
At almost 20 years into the new century, most
producers on a global basis have reached a point
where they are utilizing a broad range of operating
conditions that raise significant questions: what degree
of processing automation can effectively be attained,
how cost intensive will progress be, what issues can
be expected in the future, and what environmental
regulations will become real-time obstacles?
In beverage processing, all the factors mentioned are
integral parts as the technology evolution continues.
What results can be expected at any point in time? For
example, will the processing evolution provide safer,
higher quality products, less costly procedures, more
complex systems, better consumer acceptance, and/or
necessity of higher skilled personnel?
Keep in mind, each type of beverage is discreet
and starts the supply chain when created. Even
though processes have evolved from manual to
computerized systems activated and controlled by
intelligent machines, driving factors will emerge and
impact these operations regardless of how many
products or processes are used. Processing evolution
is infinite. BI
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 Market Insights
The evolution of
retailer ordering
Technology
streamlines ordering,
reduces errors
Matthew Comerford
is the product manager
of DSDLink and can
be reached at
ford@encompass8.com.
If you’d like to learn more
about DSDLink, please
visit DSDLink.com.
74 | Beverage Industry | MARCH 2019 | bevindustry.com
BUSINESSES ACROSS ALL INDUSTRIES EITHER ALREADY HAVE IMPLEMENTED
eCommerce solutions, or plan to do so in the coming years. Although the
trend originally began in the business-to-consumer environment, it soon will
take over the business-to-business (B2B) environment as well. While people
are becoming accustomed to these streamlined online ordering processes in
their personal lives, they will begin to desire a consistent experience in the
workplace.
The truth is that retailers often are left to order they forgot something or they suddenly sell a lot
products using an outdated, time-consuming of one item, the retailer has to try to contact the
process that involves phone calls, emails or representative by a phone call or text message
even handwritten order forms. These methods regarding an order addition. The retailer must
open the door for error and lack the essential then go through this entire process again for every
information that a retailer could benefit from such other distributor they purchase from. The order
as promotions, order visibility and new products. remains unseen by the customer until delivery
On top of that, the disruption of having to order day and errors can go unnoticed. Upon delivery, if
when your sales representative is on site can be an incorrect product is delivered as a result of an
inconvenient and time consuming for both parties. ordering error, the driver will return the incorrect
As technology becomes more accessible, it’s product to the warehouse, somebody will grab the
increasingly becoming important for businesses missing product, and make another trip to that
to implement processes that increase productivity. account. All the while, the retailer could be losing
In their personal lives, most employees are using business from being out of products they were
apps for virtually everything: food delivery, expecting to receive.
online shopping, dog walking, dating, and the With the development of B2B eCommerce
list goes on. Leveraging familiar user interfaces in software solutions, a more efficient ordering
the workplace results in significant time savings process quickly is gaining ground. To begin,
and even an increase in employee morale. Falling the retailer downloads an app or sits down at a
behind in terms of technology could negatively computer. When it’s convenient or time to place
affect your business and this becomes even clearer an order, the retailer logs onto the ordering tool
when comparing two different ordering processes. to view regularly purchased products from their
The aforementioned outdated methods of ordering distributors. Orders can be customized and
are neither cost-efficient nor worth the time they a product catalog is available to browse new
take. placements. If a mistake is made or a product is
The outdated way of taking orders goes out of stock, upcoming orders easily can be edited.
something like this: Pricing no longer has to be a mystery as accurate
To start, a sales representative either visits pricing is displayed to know exactly what is owed
the account, calls them, or waits for a text or upon delivery.
voicemail. The order is then deciphered and Not only do these solutions save time, but by
transcribed into the distributor’s system. From leveraging the cloud, they allow users to order
the sales representative’s perspective, this can be anywhere, at any time, on any device. Modeled
very time-consuming (especially for off-premise after other consumer-based eCommerce sites,
accounts). From the business owner’s perspective, the interfaces are intuitive, simple and easy
the timing can be very inconvenient (especially to use. With these types of programs, sales
for on-premise accounts). After order entry is representatives aren’t spending their time on order
completed, sales representatives can then start to entry or checking texts and voicemails, they’re
rotate products, put up displays, and if time allows able to research new products, develop better
it, sell some new products. relationships with their accounts, and provide
Unfortunately, that’s not the end of it. If the better service. Cloud capabilities also allow the
representative leaves and the retailer realizes distributor’s system to link up directly with the

retailer’s ordering app to ensure that information
is real-time, so if a product is out of stock, the
retailer is notified before they even place their
order. It’s a win-win for everyone.
Retailer ordering systems open up a world of
possibilities when it comes to product information
like photos, descriptions, performance stats and
more. They also have the ability to show past
orders; therefore, making the ordering process
much more streamlined. Through all of the
capabilities above, errors go down and service
goes up. Bottom line, these ordering programs
save time and money, freeing up time for value-
adding activities.
The results are in and retailer ordering apps
quickly are gaining traction in the marketplace.
The Frosted Mug, Sterling, Colo., began using
DSDLink, a retailer ordering tool, after trying
multiple other solutions. Within days of using
the app, the company was able to see significant
increases in efficiency.
“With DSDLink, we can order from all of our
distributors in half the time it used to take us and
we can place orders any time we want...it’s like
a dream come true,” said a spokesperson for The
Frosted Mug.
Because the app is free and easy to set up, the
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By Matthew Comerford
company was able to implement DSDLink in a
minimal amount of time. “On top of that, we can
now view products that are selling well in our
market that we’re not selling yet which provides
invaluable information that we’ve never been able
to access before,” the spokesperson said.
DSDLink is always making improvements to
streamline the ordering process, partnering closely
with retailers and distributors. “We’ve tried other
retailer ordering apps, but DSDLink is by far the
easiest to use,” the spokesperson said.
The benefits of DSDLink are not constrained to
retailers. From a distributor standpoint, DSDLink
provides significant time savings for sales
representatives, enabling them to allocate time to
activities that add value to their business. Adding
more transparency to the selling process builds
trust between retailers and distributors; therefore,
creating long-lasting partnerships. DSDLink makes
it easy to find and fix mistakes, saving both parties
time and money. Setup on the distributor side is
easy and can be completed in less than an hour.
By creating a more efficient way to order and
adding value to an antiquated process, B2B
eCommerce software solutions can enable retailers,
restaurants, and bars to move their business
forward. BI (Image courtesy of Encompass Technologies)
bevindustry.com | MARCH 2019 | Beverage Industry | 75
 Supplier’s Marketplace
NEWS
Columbus, Ind.-based Toyota Industrial
Equipment Manufacturing (TIEM) and
Toyota Material Handling USA (TMHU)
announced plans to integrate into a single
business unit by January 2020. The new
company, Toyota Material Handling
Inc. (TMH), will be led by Jeff Rufener,
president and chief executive officer;
and Tony Miller, senior vice president.
Integrating TMHU and TIEM is the next step
in a progression of events that started in
2014 when TMHU completed the three-
year relocation from California to Indiana,
followed by the combining of its service
parts business in 2017.
Corey E. Calla was named president of
Hyannis, Mass.-based SencorpWhite. In
this new role, Calla will be responsible for
White Systems, including the operations of
the InTek and Minerva Software divisions,
both recent acquisitions. Calla also will
lead the customer service initiatives for
SencorpWhite and its product offerings
including thermoforming, sealing and
automated storage equipment, the company
says. He will directly report to SencorpWhite’s
Chief Executive Officer Brian Urban.
THE
BEVERAGE OPERATIONS
ADVISOR
FOCUSED ON:
» Setting Performance Standards
» Maximizing Asset Utilization
» Enhancing Productivity
» Motivating Personnel
CONSIDER:
» Comprehensive Conditions Analyses
» Establishing Operating Benchmarks
» Determining Personnel Competency Levels
BASIC TOOLS:
» Critical Time Analysis (CTA)™
» Constant Change Syndrome (CCS)™
BOTTOM LINE:
» Operating Problem Solutions
» Productivity Improvement
» Increase Asset Utilization
CONTACT:
John Peter Koss
19640 Cypress Circle | Lakes on the Green
Miami, FL 33018, USA
305 829 3631 | fax 305 829 2484
oleboss@aol.com
76 | Beverage Industry | MARCH 2019 | bevindustry.com
Boosting production LED timer display. Voltage is set at 6.3
VDC, which is adjustable from
for hot-filled 4-9 VDC, the company says. Operating
beverages range is 0-500 ma with an improved
accuracy resolution of 0.01 ma. Preset
Sidel recently launched a new PET
to an industry-standard four-second
packaging solution: BoostPRIME.
mode, the rater also can be put into
BoostPRIME is an alternative for hot-
continuous or programmable modes.
filled beverages in PET bottles and
In programmable mode, the operator
expands opportunities for product
can select customized time settings.
premiumization and revenue generation
Both RS232 and USB ports allow for
with no compromise on packaging
easy transfer of data to computers,
performance and consumer experience,
printers or data collection systems, the
the company says. The patented solution
company says.
is addressing the single-serve market of
■ Wilkens-Anderson Co., 4525 W. Division St.,
juice, nectar, soft drink, isotonics and tea
Chicago, Ill. 60651; 773/384-4433;
(JNSDIT) filled in PET bottles as large
wacolab.com.
as 1.2-liter at temperatures between
85-88 degrees Celsius. BoostPRIME
removes the need for restrictive vacuum
panels or the introduction of gas into
PET bottles normally required for the
containers to withstand hot-filling
temperatures, the company says. The
final bottle shape is achieved with an
active base inversion and relies on
three key features with minor impact
on the packaging manufacturing line
layout. This includes a packaging
design with a specific packaging base
geometry; a base over stroke system
(BOSS), which mechanically forms the
bottle base during the blowing process; Masterful packaging
and a base inversion that should be At ProFood Tech in Chicago, Schubert
completed after filling and capping,
tilting and cooling and before labeling.
North America showcased its growing
portfolio of products and services
The solution increases packaging appeal
and total shape freedom to achieve
ranging from high-end packaging
machines for complex jobs to its new
premium and distinctive PET bottles
with a smoother bottle wall surface
lightline series for handling standard
packaging applications with ease and
and stronger bottle when labeling.
In addition, the sustainable solution
efficiency. The lightline series consists
of three machine types: Cartonpacker,
features measurable PET resin savings which takes on the role of a classic
as the bottles weigh as much as 30 case packer when erecting, filling
percent less than conventional HR PET
bottles, the company says. Available in
and closing cartons; the Pickerline,
designed to pick up and place
a several production configurations, products in trays; and the Flowpacker,
BoostPRIME can be utilized in off-line which packs products in flowpacks in
and in-line production with the Sidel conjunction with the Pickerline. Key
stand-alone blower and integrated blow- features include the ability to master
fill-cap Combi, the SBO Universal, the
SBO Matrix blower ranges as well as for
standardized packaging tasks with
great efficiency and high quality, the
contact filling and flow meter filling. company says. In addition, customers
■ Sidel Group, 5600 Sun Court, Norcross, Ga.,
30092; 678/221-3087; sidel.com.
now have a greater choice between
freely configurable machines with
extensive degrees of freedom, which
are tailored to individual customer
Accurate inspection requirements, and cost-attractive
Wilkens-Anderson Co. offers its
new Digital Enamel Rater III for
preconfigured machines from the new
lightline series with defined product
fast, accurate quality inspection and packaging formats, the company
measurements of the enamel coating says. At the tradeshow, the company
on the inside of food and beverage also demonstrated its state-of-the-art
cans. The device displays an index of automation packaging technology by
the metal exposure due to incomplete having a machine frame equipped
enamel coverage on an easy-to-read with a four-axis pick-and-place robot
digital LED display. Among the assemble 3-D printed miniature
features are a new LCD screen for Schubert machine frames.
easy menu selection, adjustment and ■ Schubert North America, 8848 Red Oak
settings; a 5-digit digital LED display Blvd., Suite H; Charlotte, N.C. 28217;
for milliamp readings; and a 2-digit 980/244-3140; schubert-na.com.
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 Supplier’s Marketplace
NEWS
With an increased focus on industrial
sustainability, global packaging
manufacturer Advanta, Cannock, United
Kingdom, has achieved ISO 14001
registration. The standard ensures the
company’s processes for manufacturing
aluminum packaging meets the
environmental systems, standards and
guidelines set by the latest edition of
ISO 14001.
e-nizing GmbH, the newly formed
subsidiary company of Schenck Process,
Kansas City, Mo., launched a new platform:
e-nizing.io. Regardless of whether or not the
equipment is manufactured by Schenck,
the platform can be used to visualize the
status of all machines by using an app
for all Internet of Things (IoT) solutions. It
eliminates data silos because data also can
be collected from non-IoT machines, the
company says.
SUN Automation Group, Glen Arm, Md.,
appointed veteran packaging industry expert
Mikah Thorne as president of Canadian
Corrugated Solutions. With 25-plus years of
experience in the packaging industry, Thorne
and his team will provide customers with
expertise, service and support in automation
within the corrugated and graphic
industries, the company says.
The Reusable Packaging Association
(RPA), Tampa, Fla., announced a new
executive team and new additions to the
Board of Directors for 2019. After serving a
two-year term as Chairman of the Board,
Norm Kukuk, executive vice president
and general manager for ORBIS Corp.,
passed the gavel to 2018 Vice Chairman
Rick Sasse, director of custom transport
packaging for TriEnda Holdings LLC.
Other changes to the RPA Executive
Committee include the appointment of
Michael Wasson, chief operations officer of
Tosca, to the role of vice chairman; and Ben
Stoller, chief executive officer for Paxxal
Inc., to the role of secretary-treasurer. The
annual RPA election also resulted in seven
new board members starting a two-year
term 2019-2020. The newly elected directors
are as follows: Patrick Garin, president of
CABKA North America; Michael Chiado,
president of the Americas for Georg Utz
Inc.; Tammy Wortham, director of retail
for IFCO Systems; Scott Starbuck,
packaging sales manager for Inteplast
Group; Samantha Goetz, marketing
communications manager for ORBIS
Corp.; Andy Schumacher, vice president
packaging group for Schaefer Systems;
and Bob Albright, vice president sales and
marketing for Schoeller Allibert.
78 | Beverage Industry | MARCH 2019 | bevindustry.com
Laser perfection with L-series
Matthews Marking System offers the L-series (L1-25
stitch), which prints best by/expiration dates onto
plastic lids of beverages. The laser also can print the
same type of data by permanently etching into plastic
bottles, beverage packaging like corrugated boxes
or six-pack boxes, the company says. With a variety
of ink types and colors available, the VIAjet L-Series
thermal inkjet printer is a clean, fast and cost-effective
alternative to thermal transfer and adhesive labels, it
adds. It is ideal for marking and coding variable data
in primary packaging and industrial applications,
imprinting onto paper, chipboard, corrugated, and
plastics. Leveraging the same cartridge technology
found in desktop printers, the L-series provides high
native print resolution (600-by-600 dots per inch) at
speeds as fast as 1,200 feet a minute, nearly twice as fast
as competitive thermal inkjet systems, the company
says. The company also offers the new eMark ECO
laser coding system for those seeking to replace
continuous inkjet systems. Engineered for simple
coding on primary packaging materials including
corrugated, paper and plastic, the eMark ECO requires
no ink or consumables to mark items and is virtually
maintenance-free, according to the company. The
environmentally friendly unit produces vector-quality,
permanent coding of alphanumeric text, date and time
codes, serial numbers, barcodes and 2-D codes with a
10-watt power class, air-cooled carbon dioxide laser.
■ Matthews Marking Systems, 6515 Penn Ave., Pittsburg, Pa.
15206; 800/775-7775; mathewsmarking.com.
Fancy self-service
With self-service stations becoming more popular
at retailers and foodservice, PourMyBeer offers
equipment that provides self-service of beer, wine,
cocktails, kombucha and other beverage options.
Available in more than 200 locations across the
country including Buffalo Wild Wings, Hilton Hotels
and Caesar’s, the company also captures data on
what brands are being consumed. The system also
saves restaurants an average of $142 a keg as well as
manpower, the company says. In addition, in a stress
test comparing the equipment to four bartenders,
PourMyBeer outsold the traditional methods four to
one, or 400 percent more beverages with half of the
staff, the company reports.
■ PourMyBeer, 222 W. Merchandise Mart Plaza, Suite 1212;
Chicago, Ill. 60654; 312/416-9989; pourmybeer.com.
Easy, peasy lifting
Crown Equipment Corp. announced that it has
expanded its internal combustion (IC) line of
counterbalance forklifts designed for heavy-duty
applications with the introduction of the Crown C-G
Series and C-D Series. With capacities as much as
20,000 pounds, the pneumatic IC forklifts are ideal for
manufacturing plants where operators need versatility
to handle multiple tasks and rugged reliability to
navigate rough terrain, unpredictable weather and
heavy loads. The forklifts combine rugged strength and
durability with an operator-focused compartment for
added comfort, control and confidence. Equipped with
industrial diesel and LPG engines and transmissions,
the forklifts deliver the long-term performance
and endurance needed to operate in challenging
environments. They also are equipped with industrial
dual radiators that provide separate cooling for the
powertrain in order to reduce fluid temperatures for
extended reliability. The C-G Series and C-D Series are
backed by Crown’s extensive support network and
feature an array of additional, optional accessories
and attachments including rear view cameras and
cabin options that can be equipped with heat and
air conditioning to help operators gain improved
comfort, visibility and performance while working in
unpredictable environments, the company says.
■ Crown Equipment Corp., 44 S. Washington St.,
New Bremen, Ohio 45869; 419/629-2311; crown.com.
Double-speed SCARA
launches in US
At the Automate 2019 tradeshow, TM Robotics Inc.
plans to unveil its THE600 SCARA robot to the North
American market for the first time. The new robot
boasts twice the speed and 60 percent higher payload
capacity than competing SCARA models in the same
price range, the company says. Demonstrations will
include models from the SCARA and six-axis range,
as well as the robotic programming tool, TSAssist.
Building upon the established specification of the
THE400, which launched last year, the THE600
promises to boost manufacturers’ productivity
without an extortionate investment and is an ideal
investment for those new to automation, it adds. The
THE600 model was developed to meet the growing
demand for fast-cycle automation while delivering
improved precision and enhanced performance at an
affordable price point, according to the company. The
company also will highlight its TVM range of six-axis
robot models, which come in three sizes and lend
themselves to a variety of industries. The company
also will showcase its latest robot control software,
TSAssist. The user-friendly robot programming
software is compatible with any Toshiba Machine
SCARA, Cartesian or six-axis robot and enables
companies to easily and effectively control the robot.
■ TM Robotics Inc., 755 Greenleaf Ave.,
Elk Grove Village, Ill. 60007; 847/709-7308; tmrobotics.com.
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Appleton, Wis.-based Great Northern
announced that it officially is recognized
by Amazon to support vendors selling
products through Amazon. The Amazon
Packaging Support and Supplier Network
(APASS) connects vendors with companies
and labs that can help test, design,
and supply protective packaging in line
with Amazon’s Packaging Certification
requirements.
Smurfit Kappa, Dublin, Ireland, showcased
its Bag-in-Box and Pouch-Up products at
the Unified Wine and Grape Symposium in
Sacramento, Calif. The company showcased
its Vitop Original tap, a tap for boxed wine.
With a leaker rate of 1 in 5 million since
launch, each tap is individually tested
under rigorous quality control standards,
according to the company.
Mentor, Ohio-based Avery Dennison
is collaborating with United Kingdom-
based Everledger to develop end-to-end
traceability and provenance solutions
for the wine and spirits industry.
The partnership is on display with
Appellation Earth wines from Napa
Valley, Calif., which combines Avery
Dennison’s intelligent label solutions with
Everledger’s blockchain-based platform.
Powered by Near Field Communication
(NFC) technology, the highly secured,
non-copy and tamper-resistant inlays are
adhered to specific bottle labels, giving
each bottle a unique digital identity
and enabling chain-of-custody data
to be captured throughout the supply
chain through the supporting blockchain
technology, the companies say.
In support of beverage startups and
distributors, Downers Grove, Ill.-based
Silgan Closures announced its Free
Closures for a Year contest. The company
will evaluate new product concepts of
all beverage categories using its stock
closures and select three finalists.
Companies have until March 29 to
participate, and the winners will receive
Free Closures for a Year (not to exceed
500,000 closures) as well as a process
consultation and a complimentary
package evaluation. For more information,
visit freeclosuresforayear.com.
80 | Beverage Industry | MARCH 2019 | bevindustry.com
A stronger bond
Interflon USA brings advanced European lubrication
technology to the American beverage processing
industry. Interflon manufactures lubricants with
MicPol which magnetically adheres to surfaces to
create a longer-lasting bond, it says. The lubricants
are sold in more than 40 countries worldwide, but
are relatively new in the United States. Many of their
spray and dry lubricants are rated NSF H1 and carry
kosher and halal certifications. Among its offerings are
H1, a spray lubricant that dries to a solid film, repels
water, dust and dirt, and can prolong the life of chains
and bearings; the HT1200, a ceramic-based assembly
paste that resists corrosion and galling, and works at
temperatures as hot as 1,200-degrees Celsius; and the
food grease EP, a waterproof grease for use in extreme
pressure environments.
■ Interflon USA Inc., 555 Route 78, Suite 403,
Swanton, Vt. 05488; 877/346-5823; interflonusa.com.
Pumps handle products
with high viscosity
HRS Process Technology Inc. offers the new HRS
BPM Series pump, which is designed to be moved
between production lines or even sites, reducing
capital costs and increasing flexibility. The pump
is designed horizontally to handle products with
larger particles. The HRS BP Series is a purpose-
designed, hydraulically operated, reciprocating,
positive-displacement pump, with an expanding
cavity on the suction side and a decreasing cavity on
the discharge side. Material flows into the pump as
the cavity on the suction side expands and is forced
out of the discharge side as the cavity collapses. The
sanitary design also incorporates a separator fitted
between the piston and the hydraulic chamber to
ensure that the product chamber and the hydraulic
oil don’t come into contact. The standard BP Series
has an adjustable flow rate of between a minimum of
52 gallons an hour and a maximum of 3,170 gallons
an hour, and features a high pressure drop of as
much as 435 psi. The pump is ideal for a wide range
of high viscosity, shear sensitive and large particle-
containing fluids. Clap valves allow pumping of
whole fruits or vegetables, and an alternative piston
pump with a pneumatic cylinder can be supplied for
low pressure applications of less than 72 psi.
■ HRS Process Technology Inc., 840 Kennesaw Ave. NW B-1,
Atlanta, Ga. 30060; 770/726-3540; hrs-heatexchangers.com/us.
Faster, more accurate
inspection reports
Exact Metrology expanded the company’s capability
in 3-D scanning to microns by adopting the new
Metrology Grade GE Phoenix v|tome|x m, a CT
scanner system with dual tube technology, nanofocus
to 180Kv and microfocus to 300Kv. The new
equipment will enable measurement to 2 microns,
even on denser parts. The new system, which
includes full CT automation, click-and-measure
capability and dual tube technology, can perform
analyses on an extremely wide range of samples,
from high-resolution nano CT of low-absorbing
samples to the high-power micro CT applications
such as engine turbine blades. Within the beverage
industry, bottlers and canners are able to use the
unit to check the tightness of seals, the company
says. Other applications for the device include light
metal castings, electronic assemblies, thermoplastic
molded and composite parts, plus all types of
machined metals. The Phoenix system features a
temperature stabilized detector array — as many as
30 fps — for fast CT data acquisition on workpieces
as wide as 500 mm diameter and 600 mm in height,
weighing as much as 110 pounds, it says. Compared
with conventional tactile or optical CMMs, this new
scanner system can generate a first article inspection
report including internal dimensions in less than
one hour, with high accuracy and repeatability, the
company says.
■ Exact Metrology Inc., 11575 Goldcoast Drive, Cincinnati,
Ohio 45249; 866/722-2600; exactmetrology.com.
Keeping industry in motion
Timken announced the expansion of its line of
mounted bearings with spherical roller bearing solid-
block housed units. The bearings can be used on beer

pasteurizers and in warming and cooling equipment,
the company says. Allowing for easier installation
and removal for a multitude of applications, the
new double-nut design saves time while eliminating
difficult measuring. The spherical roller bearings
with double-nut adapters are designed for tough
conditions, are easy to install and the mounted units
are stronger on the outside and smarter on the inside,
it adds. The new TAA Series units come in sizes as
long as 15 inches (380 mm) and feature a double-
nut, tapered adapter sleeve that simplifies bearing
replacements in challenging environments, according
to the company. In addition, the company modified
its standard adapter sleeve (with front lock nut) to
include a mechanical withdrawal nut on the back
end that is factory set for nominal shaft sizes and
easily can be adjusted in the field to accommodate
actual (under/over) shaft size. The front locking
nut is tightened until the back nut stops against the
face of the inner ring, indicating that proper bearing
clearance and mounting force has been achieved.
This eliminates the need for difficult and often
inaccurate in-process measurements of radial internal
clearance, saving time and improving consistency.
Regardless of the required seal combination, each
unit is assembled to order and shipped in a matter of
days, the company says.
■ Timken, 4500 Mount Pleasant St. NW, North Canton, Ohio
44720; 234/262-3000; timken.com.
Stretching the limit of
pallet load containment
Signode Industrial Group offers its line of Octopus
stretch wrappers and Lachenmeier stretch hood
equipment. The Lachenmeier stretch hood systems
and the Octopus line of rotary ring wrappers are
ideal for manufacturers looking to effectively secure
pallet loads during transport, the company says. The
sustainable solution minimizes waste and maximizes
box plant efficiencies, enabling customers to achieve
ideal load containment while simultaneously
improving their bottom line. Newly adopted in
the corrugated industry, the Octopus line of stretch
wrappers, a compact alternative to the company’s
Multi FleXL stretch hood machine and film, works
with a variety of applications and load sizes and
offers a film savings as much as 25 percent less than
traditional rotary arm stretch wrappers, the company
says. The Lachenmeier Multi FleXL stretch hood
machine provides the necessary protection and force
to stabilize even the most challenging loads, it adds.
Depending on the size and height of the product,
the machine can wrap as many as 180 loads an hour.
When coupled with patented multi-layer Xeros stretch
hood film, loads are not only quickly and effectively
secured but also free of contaminates and moisture.
■ Signode Industrial Group, 3650 W. Lake Ave., Glenview, Ill.
60026; 847/724-6100; signodegroup.com.
No-slip coverage
Argelith Ceramic Tiles provides hexagonal ceramic
floor tiles that are a durable, hygienic flooring solution
for beverage processors such as breweries, wineries,
dairies and soft drink manufacturers, it says. The
advanced floor covering naturally is sanitary and
nonabsorbent, without any surface treatments or
sealants to wear off. Because ceramic is a natural
material, it does not react with acids, oils or alkalis.
Caustic and corrosive materials like alcohol, sugar
and solvents clean away without degrading the floor.
With an absorption rate of less than 0.1 percent, the
tiles are almost nonporous, making them stain resistant
and inhospitable to bacteria, the company says. Slip
resistant and easy to clean, the tiles are made using a
special firing process, making them a resilient, durable
solution, it adds. The tiles exceed all industry standards
for commercial flooring when it comes to break
strength, abrasion resistance, chemical resistance and
moisture resistance.
■ Argelith Ceramic Tiles, 103 N. 11th Ave.,
Saint Charles, Ill. 60174; 630/444-0665; argelithusa.com.
The perfect canvas
Multi-Color Corp. offers an alternative method for the
decoration of aluminum cans such as cost-effective
pressure sensitive or shrink sleeve can labels. They also
allow the possibility for design embellishments such as
tactility, foil and matte-gloss finish, the company says.
The company recently worked with United Kingdom-
based Hawkshead Brewery on developing bold,
innovative labels for its collection of eight lagers and
ales, it adds. It also worked with CHE Proximity, an
Australia-based advertising agency, to produce labels
as a recruitment initiative for “Intern beer.”
■ Multi-Color Corp., 4053 Clough Woods Drive, Batavia, Ohio
45103; 513/381-1480; multicolorcorp.com.
bevindustry.com | MARCH 2019 | Beverage Industry |
NEWS
MonarchFx, Raleigh, N.C., a business
unit of Tompkins International,
announced a new partnership with
Vanguard Software, Wayne, Pa. They
configured the distributed inventory flow
forecasting (DIFF) model for eCommerce,
which provides customizable, value-
added technology for brands and
retailers. Among the features are an
initial allocation of inventories at SKU
levels; ongoing demand forecasting
models that are based on state-of-the-art
algorithms with user inputs on promos,
flash sales, new products, sales lifts
and more; and replenishment advisory
schedules for sellers when SKUs reach
thresholds and need to be replenished,
the company says.
Lawrenceville, Ga.-based Peachtree
Packaging & Display secured the
exclusive license from Recycool Inc.
to manufacture and sell the patented
Recycooler, a branded earth-friendly cooler
and cold shipping solution. Recycooler
is a reusable and recyclable cooler that
is made from a minimum of 60 percent
post-consumer product and printed with
soy based ink. Besides giving companies
a unique way to tell their brand story
and build brand equity with consumers,
the coolers can be used for private-label
branded products, promotional giveaways
or fundraising, it says.
France-based Gebo Cermex and Sidel
announced that its business units
officially now are operating as a single
entity.
Bellevue, Wash.-based PacLease
reported another strong year in the truck
rental and leasing market in 2018, and
expects more positive growth in 2019, the
company says. Besides adding 17 new
main and branch locations, the company
also grew its market share in the lease/
rental market by adding 30 percent more
medium- and heavy-duty units, it says.
Honeywell Intelligrated, Mason, Ohio,
highlighted a new collaboration with
Fetch Robotics, Fort Mill, S.C. The
companies will work together to provide
distribution centers with autonomous
mobile robots to help them more
effectively fulfill growing volumes of
eCommerce orders. The initiative enables
the company to help its customers
increase productivity and boost labor
efficiency by deploying the robots to safely
operate alongside workers without human
guidance or fixed paths in the warehouse,
the company says.
81
 APRIL 30 - MAY 1, 2019|Swissôtel Chicago

DAWN of a
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• Financial Insights: • Market Trends II:
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• Derek Dabrowski, Vice President of Marketing and Content, Keurig Dr Pepper

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• Carlos Laboy, Managing Director, Global Beverage Sector Head, HSBC
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Tuck School of Business, Dartmouth College JAMES L. DINKINS,
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• Robert Ottenstein, Senior Managing Director, Evercore ISI
• Jack Owoc, CEO, Chief Scientific Officer and Founder, VPX Sports Nutrition (Bang)
• Ed Pilkington, Chief Marketing and Innovation Officer, Diageo North America
• Parick Posey, Vice President of Non Perishable Procurement and
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• Dino Sarti, CEO, Gloe Brands, Inc.; Co-Founder, L.A. Libations, LLC
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84 | Beverage Industry | MARCH 2019 | bevindustry.com

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86 | Beverage Industry | MARCH 2019 | bevindustry.com

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 Ad Index
READER & MARKETING
Archer Daniels Midland .......................................... 7 Keg Stacking Systems..........................................56 SERVICES
www.adm.com www.kegstackingsystems.com
LETTERS
Allied Electronics ................................................... 71 Kenworth .................................................................. 5 JESSICA JACOBSEN
Mail: Beverage Industry
www.thinkallied.com www.kenworth.com 155 Pfingsten Road, Suite 205
Deerfield, IL 60015
E-mail: jacobsenj@bnpmedia.com
Applied Food Sciences, Inc.............................38-39 KHS .................................................................. 42-43
www.appliedfoods.com www.khs.com SINGLE COPY SALES/
BACK ISSUES
www.bevindustry.com/scs
Beverage Forum 2019.................................... 82-83 Krones ..............................................................52-53
www.beverageforum.com www.kronesusa.com SUBSCRIPTIONS

Beverage Marketing Corporation .................. 90-91 CUSTOMER SERVICE

Lanxess ................................................................... 17 T: (800) 952-6643
www.bmcreports.com F: (847) 763-9538
www.nagardo.com E-mail: bi@omeda.com

Clean Liquid Systems ...........................................56 Motion Industries .................................................. 73 CUSTOM MEDIA

www.cleanliquidsystems.com www.motionindustries.com MELANIE KUCHMA
E-mail: kuchmam@bnpmedia.com
ContiTech .........................................................24-25 NVE Pharmaceuticals .......................................... 57 Call: (610) 383-7970

www.contitech.us www.nveusa.com LIST RENTAL

Cummins ................................................................ 69 Owens-Illinois .....................................................10-11 FOR POSTAL
INFORMATION:
www.cumminsengines.com www.o-i.com Contact Kevin Collopy at
(402) 836-6265
Toll Free: (800) 223-2194, ext. 684
Fiji Water ................................................................. 13 Roberts PolyPro ....................................................29 kevin.collopy@infogroup.com
www.fijiwater.com
www.robertspolypro.com FOR EMAIL
INFORMATION:
Food Safety Summit 2019 ................................... 87 Contact Michael Contantino at
Rubber Fab ............................................................. 33 (402) 836-6266
www.foodsafetysummit.com michael.contantino@infogroup.com
www.rubberfab.com
FrieslandCampina .................................................. 77 PRINT & INTERNET ADVERTISING
Ryson International ............................................... 31
www.dmv.nl
www.ryson.com STEVE PINTARELLI
Western US
Hunan Huacheng Biotech, Inc .............................62 E-mail: pintarellis@bnpmedia.com
SEW Eurodrive .................................................. 2, 79 Call: (949) 600-8092
www.huachengbio.com
www.seweurodrive.com BRUCE KLION
www.adallen-nutrition.com East Coast, Canada
E-mail: klionb@bnpmedia.com
Spindrift .................................................................65 Call: (248) 786-1716
Husky..................................................................3, 27
www.spindriftfresh.com
www.breaktroughpackaging.com CHRISTOPHER CASEY
Midwest
Standard Knapp ..................................................... 35 E-mail: caseyc@bnpmedia.com
Ingredients Solutions, Inc ............................. 44-45 Call: (847) 894-8761
www.standard-knapp.com
www.isi.us.com
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Ingredion ................................................................ 63 CATHERINE WYNN
www.sweegen.com E-mail: Wynnc@bnpmedia.com
www.ingredion.us/foodservice/reducesugar Call: (847) 405-4010
Tekleen ................................................................... 75
iTi Tropicals ............................................................ 61 REPRINT
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www.ititropicals.com
JILL DEVRIES
Vacuum Barrier Corporation .................................41 devriesj@bnpmedia.com

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 Wine and song BACK INTO
Daou Vineyards announced a long-term deal with THE BLACK
Broadcast Music Inc. (BMI) as the organization’s
Best part of wakin’ up exclusive wine partner. By partnering with BMI, Daou
BY TAYLOR KARG
Associate Editor
As part of its Can Do Promotion, Vineyards seeks to provide a greater purpose beyond

A
s mentioned a few times, one
Folgers will provide funding to combining wine and music. The company strives activity I enjoy doing is
to provide an inspired setting for the songwriters checking out local breweries.
10 initiatives (from supporting Last month, I had the opportunity to
themselves, it says. Daou wines have already been
families to communities at shared and enjoyed at BMI events, including the BMI attend an exclusive brewery tour at the
large) and honor those who are Laguintas Brewery in Chicago, which now
Country Awards, the Maui Songwriters Festival, the
is one of the two new production homes
dedicated to making good things Troubadour Awards and the Rooftop Series, it adds. for Heineken-owned
“We believe in the power of music and wine to create Newcastle Brown Ale.
happen to those who deserve it,
community and lifelong relationships,” said winery Heineken USA
the company says. Consumers are Co-Founder and proprietor Georges Daou, in a tapped Laguintas
invited to submit their project on statement. “Just like the songs that BMI’s songwriters Brewing Co., a wholly
owned subsidiary
folgerscoffee.com/can-do-nation and artists create, wine is a story — not a product. We
of Heineken N.V.,
want to support and celebrate that for both of us.”
for a chance to receive $1,000 in to reimagine its
iconic Newcastle
funding for their specific cause Brown Ale. The beer
through March 24. Folgers will manufacturers
invited members of its key distribution
randomly select a different project networks as well as select trade media
each week to receive the funding members from around the country to
experience Newcastle Brown Ale in a
award, it says. brand-new way, including an updated
recipe, new packaging designs and
formats, and a revamped marketing
A literacy partnership strategy.
The tour began in the downstairs
for the kids Oh, the places you’ll go lounge where attendees were encouraged
to taste the reformulated Newcastle
The J.M. Smucker Co. and Akron Children’s Hospital announced Heineken launched a new campaign titled Go Places
Brown Ale in a draft format. After a
a multi-year partnership to continue the hospital’s child literacy 2.0, to showcase the real-life experiences of its warm welcome from brand directors and
efforts. Smuckers vowed to commit $500,000 to support the Reach employees to recruit, engage and inspire future talent, Lagunitas Brewmaster Jeremy Marshall,
Out and Read program at each of Akron Children’s Hospital’s 28 the company says. Go Places 2.0 features 34 Heineken attendees were taken on a tour around
employees sharing their personal stories from around the 300,000-square-foot facility.
pediatric care locations, the companies say. “We’re so grateful to
the world that also highlight the entrepreneurial culture It certainly was a cool experience to not
The J.M. Smucker Co. for its generous support of our Reach Out only drink the new beer, but to see
upon which Heineken was built since its founding in
and Read program for the next five years,” said Grace Wakulchick, firsthand the entire process, from the
1864. Through a collection of films, those featured silos containing the grains, to the
Akron Children’s president and chief executive officer, in a
employees illustrate how, with the right mindset, fermentation barrels, then to the bottling
statement. “Since 2003, we’ve put thousands of new books in the
people ‘Go Places’ physically and professionally and packaging processes.
hands of young children at their annual well-child visits through during a career at Heineken. Go Places 2.0 Attendees even were able to taste
this program. We know that this early intervention is crucial in showcases 22 markets, and a variety of roles, levels Newcastle beers straight from the
preparing our children for success in school and beyond.” and departments within the organization including production line.
Fittingly, the tour’s last stop took
marketing, sales, finance, supply chain, procurement, place in the Lagunitas Taproom,
human recourses, IT and corporate affairs. where guests enjoyed lunch and more
Making great whiskey robust Lagunitas’ beers. After lunch,
Jim Beam unveiled its new global marketing campaign titled Heineken and Newcastle brand directors
discussed the future plans of the brand
Raised Right, which shares what the brand has learned from seven generations
and hosted a Q&A session.
of family — how to treat a person and how to make a whiskey, the company Included in the new marketing plan,
says. The first TV advertisement under the new campaign, titled Celebration, following the motto of getting Newcastle
tells the story of James B. Beam leading up to the end of Prohibition — and “back into the black,” is a revamped
the group of family and friends who helped him rebuild the brand’s distillery social media presence for the United
in the 120 days following the law’s repeal, it adds. “We set out to create a States and geo-targeted social posts
campaign that focuses on the good created by treating those around you around Chicago.
Also unveiled was the brand’s new
like family. The little-known story from our past that is told in ‘Celebration’ packaging formats — available
illustrates how those values are just as relevant now as back then, and establishes nationwide in six-,12-, and 24-packs of
the meaning of our ‘Raised Right’ campaign,” said David Campbell, vice president of global integrated marketing 12-ounce bottles, as well as 7.75 gallon
communications at Beam Suntory, in a statement. slim-kegs.

bevindustry.com | MARCH 2019 | Beverage Industry | 89

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