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20 40

12 24
Features
6 Beverage Beat 30 Packaging
Shrink and stretch labels continue to penetrate the beverage market.
8 Industry Issues
34 Beverage R&D
12 Category Focus Consumer confidence in cognitive health and energy ingredients drives usage.
Premiumization trends impact wine market.
40 Ingredient Spotlight
16 New Products Domestic and exotic fruit formulations provide health and flavor benefits.

18 Special Report 42 Distribution

Health-and-wellness trend becomes more complex. Green alternatives find their niche in beverage delivery.

20 Cover Story 44 Warehouse

Cott Corporation sees bright future with home-office-delivery category. Storage systems and ASRS address space issues in beverage plants.

24 Up Close With… 50 Operations

Me & the Bees Lemonade • BevOps Fleet Summit 2019 Pre-Show Profiles
• Installing effective maintenance programs
26 Channel Strategies
Limited-assortment and dollar stores performing well. 58 Supplier’s Marketplace
28 Between Drinks 64 The Last Drop

4 | Beverage Industry | FEBRUARY 2019 | bevindustry.com Cover image courtesy of Cott Corporation
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Calculating the true costs

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

PRECEDING LAST YEAR’S SUPER BOWL, KRAFT HEINZ MADE EDITORIAL

Editor
headlines when the food and beverage manufacturer said
JESSICA JACOBSEN
it planned to give employees the day off after the big event. jacobsenj@bnpmedia.com
Managing Editor
This news came as mainstream media outlets calculated the BARBARA HARFMANN
costs on employers due to truant workers. The impact of this harfmannb@bnpmedia.com

Associate Editor
much-watched game on the Monday workforce continued once TAYLOR KARG
again this year; however, worker presence and productivity kargt@bnpmedia.com

following major events are not the only thing impacting the ART
Art Director
U.S. economy as of late. DANA KNAPP
Also placing a drag on the market occurs when consumers are faced with out-of-stock knappd@bnpmedia.com

products during their brick-and-mortar shopping experience. According to Information CONTRIBUTORS

Resources Inc. (IRI), out-of-stock products cost U.S. retailers approximately $47.4 billion
JEFF CIOLETTI
each year. Anecdotally, I can say that when you are shopping with a toddler who would
JOHN PETER KOSS
rather be making a pink pumpkin out of Play-Doh instead of at the grocery store, being
ADVERTISING
faced with out-of-stock necessities can be quite deflating and seeking a comparable East Coast, Canada
alternative is not always a luxury when factoring in nap times or other toddler triggers. BRUCE KLION
Although not as public as a toddler meltdown, retailers also are dealing with their own klionb@bnpmedia.com
248-786-1716
disappointment when losing a potential sale because of out-of-stocks.
Midwest
Noting the complexities of the supply chain, inventory costs and in-store executive
CHRISTOPHER CASEY
challenges, IRI highlights that retailers remain challenged when attempting to forecast, caseyc@bnpmedia.com
order and merchandise consumer packaged goods. However, in a recent Point of View titled 847-894-8761

“On-Shelf Availability: Fueling Profitability, Customer Loyalty and Topline Sales Growth,” Pacific Northwest

the market research firm details how technology can serve as a solution to the out-of-stock WAYNE WIGGINS JR.
w.wigginsjr@mindspring.com
challenges of today’s retailers.
Inside Sales
As an alternative to manual shelf audits, the firm developed the IRI On-Shelf MARIANNE MAJERUS
Availability Optimizer, which is powered by artificial intelligence and machine-learning majerusm@bnpmedia.com
248-786-1262
technology, it says.
Senior Classified Sales Manager
“Retailers that can capitalize on the vast technological and data science advances to drive
CATHERINE WYNN
sales growth will be winners in a competitive marketplace where every dollar counts,” said wynnc@bnpmedia.com
Prakash Tilwani, executive vice president of supply chain and media solutions at IRI, in a 847-405-4010

statement. “The On-Shelf Availability Optimizer solution ensures that at the critical point of Advertising/Production Manager

purchase, retailers are in position to provide excellent customer service, build loyalty and BRIAN BIDDLE
biddleb@bnpmedia.com
capture value.” Corporate Reprint Manager
By integrating data sets that track products across the supply chain and in stores, the JILL DEVRIES
On-Shelf Availability Optimizer creates near-real-time insights and then alerts in-store devriesj@bnpmedia.com

employees in near-real time, IRI says. AUDIENCE DEVELOPMENT

The market research firm even conducted a case with a major grocery store chain, which Audience Marketing Project Manager

found that the IRI On-Shelf Availability Optimizer solution alerted in-store employees to an SHERRI GRONLI
Toll Free: 800-952-6643
average of 6,000 inventory defects a day across 700-plus stores, it states. The retailer was 847-559-7399
able to recapture an average of $68 in sales with each alert, which amounted to tens of Integrated Media Coordinator
millions of dollars in just a few months, IRI adds. CATHERINE NEAL
As more consumers migrate to eCommerce grocery shopping, tools that can ensure
Audience Audit/Postal Specialist
stocked shelves could become more valuable as the consumer is not there to easily
WAFAA S. KASHAT
adjust a purchase pattern.
LIST RENTAL
POSTAL CONTACT:
Kevin Collopy at 402-836-6265
Toll Free: 800-223-2194 ext. 684

JESSICA JACOBSEN, Editor kevin.collopy@infogroup.com

EMAIL CONTACT:
Michael Costantino at 402-836-6266

Visit us online
michael.costantino@infogroup.com

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

6 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

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Industry Issues
Study finds legalization of recreational
marijuana not effecting spirits sales
I
n spite of consumer interest in recreational
marijuana and the fact that several states have
legalized its use, the Washington, D.C.-based
Distilled Spirits Council reports that distilled
spirits sales have not been negatively impacted.
The new in-depth study examined state-level
alcohol tax receipts and per capita alcohol sales
in Colorado, Washington state and Oregon for
the two years prior to recreational marijuana
legalization and up to three to four years post-
legalization.
“Simply put, the data shows there has been
no impact on spirits sales from recreational
marijuana legalization,” said Distilled Spirits
Council Chief Economist David Ozgo in a
statement, noting that examining tax data
and actual shipments provides the most
accurate insight into what is happening in the
marketplace.
“We now have four years of retail recreational
marijuana sales history in Colorado and
Washington state, and three years in Oregon, and
each of these markets remain robust for spirits
sales,” Ozgo added. He also noted that overall
alcohol sales mirror national trends and there is
no pattern of declining spirits sales in any of the
markets analyzed.
“We did this study because there is a lot of
misinformation circulating about the impact of
recreational marijuana legalization on distilled
spirits and the wider alcohol market,” he added.
The analysis shows that in the three states,
per capita spirits sales increased between
3.6 to 7.6 percent since recreational marijuana
legalization went into effect. Colorado was up
7.6 percent; Washington state was up 5.4 percent; and
Oregon was up 3.6 percent, according to study data.
Additionally, no evidence was found that legal
recreational marijuana has impacted total per
Columbia Distributing to
acquire Graybeal Distributing
P
ortland, Ore.-based Columbia Distributing
announced it will purchase the majority
of the assets of Graybeal Distributing,
Pendleton, Ore. Graybeal represents a portfolio
of more than 190 international, national and local
beer, energy and water suppliers that account for
more than 500 brands, it says.
Employees, brands and warehouses of Eastern
Oregon’s largest beverage distribution company
will continue normal operations under the new
ownership when the transaction closes on or
around Feb. 28, it said.
Founded in 1955 by the father and son team of
Finley and Jay Graybeal, the Graybeal family has
grown the business to more than 2,400 beverage
SKUs distributed to the eastern counties of
Morrow, Umatilla, Union, Baker and Wallowa.
The acquisition builds on the eastward territory
8 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
capita alcohol sales in beer, wine and spirits as
follows:
■ In the case of per capital beer sales, sales in the
three states declined between -2.3 to -3.6 percent,
but this is consistent with the national trend in
beer sales and is not isolated to just those states
that have legalized marijuana sales, Orzgo said.
■ In the three states, per capita wine sales were
mixed. Colorado was up 3.2 percent; Washington
state was down -3.1 percent; and Oregon was up
0.7 percent.
■ Per capita total beverage alcohol sales (spirits,
wine and beer) were roughly flat, also consistent
with the national trend. Colorado was up
1.7 percent; Washington state was down
-0.2 percent; and Oregon was down -0.5 percent.
Although the Distilled Spirits Council has taken
no position on whether states should legalize
recreational use of marijuana, it has established
marijuana policy principles that it urges state
officials to consider if they pursue legalization of
the product.
“If states contemplate marijuana legalization,
we urge lawmakers to ensure they fully consider
comparable taxes and regulation, strong road
safety measures and social responsibility
standards when they examine the issue,” said
Distilled Spirits Council President and CEO Chris
Swonger in a statement.
In addition to Colorado, Oregon, Washington
state and the District of Columbia, seven states
have legalized sales of recreational marijuana:
Alaska, California, Maine, Massachusetts,
Michigan, Nevada, and Vermont. In 2019,
several states are considering legalizing
recreational marijuana, including Arizona,
Connecticut, Illinois, Missouri, Montana, New
Hampshire, New Jersey, New York, Rhode Island
and Pennsylvania. BI
Columbia gained through last year’s acquisition of
General Distributors Inc. The Graybeal acquisition
mirrors the strategy of other distributors in recent
years, Columbia’s president and chief executive
officer (CEO) Chris Steffanci says. “This will allow
us to expand numerous brands where we see
strong potential for growth while delivering on our
brand promise. … We are excited to start a great
partnership with our new Eastern Oregon family.”
Graybeal CEO Maryl Featherstone added:
“Graybeal Distributing has been incredibly
fortunate to build a distributorship that’s made
such a significant impact on so many lives. A very
sincere thank you to everyone who’s touched the
company over the last 64 years ... I have no doubt
the business we’ve built is in good hands; it will
continue to grow, and most importantly, give
back to our community.” BI
Caribou Coffee, Minneapolis, announced that John Butcher
has been appointed president and chief executive
officer. Butcher has served as president of Caribou
Coffee since joining the company in June of 2017.
PepsiCo Inc., Purchase, N.Y., announced that its
Board of Directors has unanimously elected Ramon
Laguarta as the company’s Chairman of the Board,
succeeding Indra K. Nooyi, who announced in August
2018 her intention to step down as PepsiCo chief
executive officer, effective Oct. 3, 2018, and remain
Chairman until early 2019 to ensure a smooth
and seamless transition. The appointment became
effective when Chairman Nooyi retired from the
company Feb 1.
Hoist, Cincinnati, announced its self-titled line of
super hydration beverages now will be sold at select
Kroger locations in the Cincinnati and Atlanta areas.
Hoist will appear on shelves of Kroger’s natural
beverage segment at all 118 Cincinnati area stores
and 195 Atlanta area stores, the company says.
The Cincinnati division includes Dayton, northern
Kentucky and parts of Indiana, and the Atlanta
division includes parts of South Carolina and
Alabama, it adds.
Chicago-based Petal Sparkling Botanicals announced it
has signed a national contract with World Finer Foods
(WFF) Inc., Bloomfield, N.J., to help grow the brand.
Alongside Petal’s other partner, BeyondBrands, WFF will
help drive sales and marketing, allowing the brand to
rollout more flavors and scale itself nationally, it says.
Stony Creek Brewery, Brandford, Conn., named Catherine
McGuinness to lead its quality control/quality assurance
department. McGuinness will be responsible for
maintaining and ensuring that the breweries award-
winning lineup of beers are produced to the highest
standards and consistently enjoyed by guests, the
company says.
Miami and Dallas-based Southern Glazer’s Wine &
Spirits announced changes in its East Region
executive team, effective immediately. Walter Cowell,
previous vice president of commercial operations
for Florida, has been promoted to executive vice
president and general manager of the Mid-Atlantic
region, responsible for the Maryland; Washington,
D.C.; and Delaware markets. Greg Astle, previously
vice president of trade development for Southern
Glazer’s transatlantic division, will assume Cowell’s
position in Florida.
Pine Ridge Vineyards, Napa Valley, Calif. announced Gustavo
Avi–a as the winery’s new viticulture director. A 16-year
veteran of the winery, Aviña works across the company’s
five appellations: Stags Leap District, Howell Mountain,
Oakville, Rutherford and Carneros.
Fort Lauderdale, Fla.-based Bloomers Frosé & More
announced its new multi-state deal with Republic
National Distributing Co., Grand Prairie, Texas. The brand
will begin its multi-state launch in Georgia, as well
as release its new low-calorie, low carb version to
consumers, it says.
The Alkaline Water Co. Inc. announced that its wholly
owned subsidiary — A88 Infused Beverage Division, Inc.
— entered into a brand development agreement with
ArchPoint Group, San Antonio, Texas, to design the cans
and bottles for its new hemp-infused sparkling and
still water products, the company says.
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 Industry Issues

Cuvaison Estate Wines teams up with

importer Frederick Wildman & Sons
N
apa Valley, Calif.-based Cuvaison
Estate Wines, which includes the
Cuvaison winery in Los Carneros, and
Brandlin Vineyard on Mount Veeder, reports
that it has entered into a sales partnership with
New York-based Frederick Wildman & Sons.
Effective Jan. 1, Frederick Wildman will
provide sales services for the Cuvaison Estate
Wines portfolio throughout the United States,
the companies said. Founded in 1934, Frederick
Wildman is recognized as one of North America’s
pre-eminent importers, with a portfolio that
includes Gruppo Italiano Vini, Champagne Pol
Roger, Famille Hugel, Domaine Olivier Leflaive,
Jean-Jacques Vincent/Château Fuissé and
Domaine Pascal Jolivet.
“We are excited to be working with Frederick
Wildman and Sons, and honored to be a part
of their renowned portfolio of wines,” said
Cuvaison Estate Wines President and Chief
Executive Officer Dan Zepponi, in a statement.
“… As Cuvaison celebrates its 50th anniversary
throughout 2019, this partnership will help to
ensure that our next 50 years are as successful as
our first 50.”
As part of the strategic sales partnership,
Cuvaison Estate Wines will realign its current
distributor network with Wildman’s national
network of distributors, which includes
Southern Glazer ’s Wine & Spirits in more than
30 states. Cuvaison Estate Wines Vice President
of Sales Steve Richards will continue to oversee
the company’s international sales, while
working closely with Frederick Wildman’s team
to expand Cuvaison Estate Wines’ reach in the
North American wholesale market.
“We are proud to partner with Cuvaison
Estate Wines,” said Wildman President and
Chief Operating Officer Marc Hirten. “Not
only do they have a rich and storied history,
but Cuvaison’s focus on estate-grown,
vineyard-driven wines helped to shape the
modern era of California winemaking. In
addition, Brandlin Vineyard has long been a
leader on Mount Veeder, and is recognized for
making exceptional mountain-grown wines. As
a company that is dedicated to working with
the world’s finest wineries, we are thrilled to
welcome both Cuvaison and Brandlin to our
portfolio.” BI

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10 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
Constellation Brands
releases Q3 results
V
ictor, N.Y.-based Constellation
Brands released its third
quarter fiscal year 2019
results. Excluding per share data, the
company reported third-quarter net
sales of $1.9 billion, a 9 percent change
over the prior-year period.
Driven by sales of its Modelo and
Corona brand families, Constellation
reported that its beer division had
net sales of $1.2 billion, a 16 percent
increase over fiscal year 2017, it said.
These results within the company’s
beer business for the third quarter
were the most significant share gains
in the U.S. beer industry, it stated.
In wine and spirits, the company
reported net sales of $762 million
for the three months ending
Nov. 30, 2018, a 0.4 percent increase
over the $759 million reported in the
comparable prior-year period.
The company also generated
$2 billion of operating cash flow
and $1.4 billion of free cash flow, an
Kentucky Eagle set to distribute
Kona Gold beverages
K
ona Gold Solutions Inc.,
Melbourne, Fla., has entered
into a distribution agreement
with Kentucky Eagle Inc., Lexington,
Ky., the largest distribution deal to
date, the companies say. Kentucky
Eagle will distribute the company’s
Kona Gold Hemp Energy Drinks and
HighDrate CBD Energy Waters within
the great state of Kentucky.
Distributing products within
Central Kentucky for 71 years,
Kentucky Eagle operates out of a
new 190,000-square-foot facility
that is the first Anheuser-Busch
LEED Certified distributor in the
nation, it says. The team consists of
130 vehicles that service more than
1,500 accounts in 37 counties, with
sales of 4.9 million cases a year on
its way from distributing beer to
IN THE NEWS ...
Mary Ewing-Mulligan, president of
International Wine Center, received the
Lifetime Achievement Award at the
2019 Wine & Spirit Education Trust
(WSET) Awards and Graduation
Ceremony on Jan. 21. Mulligan is
increase of 34 percent and 77 percent,
respectively, it said.
Constellation reports that its fiscal
2019 operating cash flow target is
approximately $2.45 billion and its free
cash flow projection is $1.2-$1.3 billion.
“The results delivered by our beer
business mark the highlight of our
third quarter performance. The Modelo
and Corona brand families continue to
be on fire, fueled by strong velocities,
excellent distribution gains and
highly incremental innovation,” said
Rob Sands, chief executive officer of
Constellation Brands, in a statement.
“Our leadership in the high-end U.S.
beer industry positioned us to be the
most significant growth contributor at
retail during the quarter.”
The company also completed an
additional $4 billion investment in
Canopy Growth Corp., and plans to
return $4.5 billion to shareholders
in dividends and share repurchases
through fiscal year 2022, it says. BI
being a total beverage distributor
within the past few years, it adds. Its
portfolio consists of more than 400
brands of domestic, craft and import
beers, spirits, wines, ciders, specialty
beverages, mixers, energy drinks,
waters, teas and food.
“I am excited to announce that
Kentucky Eagle has joined our network
of distribution partners,” said Chris
Selinger, vice president of sales for
Kona Gold, in a statement. “Kentucky
Eagle has an impeccable reputation
in their market and are the premier
distributor in Lexington, Ky. I look
forward to working closely with the
Kentucky Eagle team as we expand
our Kona Gold line of products into the
great state of Kentucky.”
A rollout for February or March is
planned. BI 12oz Sleek
Carbonated Sodas
Functional Beverages
responsible for introducing WSET Sparkling Waters
programs to the United States in
1994 and has spent the past
25 years promoting WSET
expansion across America, the
copacking@nveusa.com
association says. (973) 601-8484
bevindustry.com | FEBRUARY 2019 | Beverage Industry | 11
 Category Focus

Maintaining
a diverse palate
Premiumization PREVIOUSLY, WINE CONSUMPTION WAS MORE LIKELY TO BE ASSOCIATED
with a wealthy and lavish lifestyle. However, as more wine companies are producing
trends impact
premium, yet affordable brands, more consumers are embracing the grape and
wine market considering themselves “wine connoisseurs.” New varietals, millennial-forward
trends and innovative packaging designs are helping shape today’s changing wine
market, experts state.
“Consumers are increasingly purchasing higher
priced wines and other alcoholic beverages, which
has contributed to revenue growth for wineries,
wholesalers and retail establishments,” says Chris
Lombardo, lead industry research analyst at Los
Angeles-based IBISWorld.
“Growing per capita disposable income and
low unemployment have also increased consumer
purchasing power,” he adds.
As a whole, the wine category has performed
particularly well, experts say. “Total U.S. dollar sales of
wine have grown by an estimated 15 percent from 2013-
18, and [were] projected to reach $62 billion [in 2018],”
Chicago-based Mintel’s November 2018 “Wine – US”
report states. “The rate of growth has slowed since the
4.2 percent gain in 2015, and appears to be settling in to a
more moderate 1-2 percent annual growth through 2023.
“Wine has outpaced the growth of alcohol sales
>>
increase in sales, notes Nathan Greene, consulting
analyst at New York-based Beverage Marketing
Corporation (BMC). “Flavor is driving growth,” he says.
“Prosecco and Rosé are the strongest growth varietals.”
A January 2018 Nielsen Insights titled “Heard it
Through the Grapevine: Wine Trends to Watch Out for
in 2018” touts the impact Rosé has had on the category.
“In the last several years, Rosé wine has exploded in
popularity among wine drinkers,” it says.
“Interestingly, Rosé buyers are expanding total
wine sales, as consumers are adding Rosé to their
carts as an addition to other wine varieties they also
purchase,” it continues. “For example, Rosé shoppers
are increasingly adding more white wines, such as
Chardonnay and White Zinfandel, to their baskets
compared to a year ago. This indicates that Rosé is
a popular middle ground for consumers who prefer
sweet or dry white wines.”

Different
ent wine varietals aare driving in total, but has maintained a steady share of the The same sentiments could be said for Prosecco, as
growth for the category, specifically
Rosé, as it appeals to sweet and/or dry
market, while spirits gain in the wake of beer it accounts for almost 20 percent of the total sparkling
wine drinkers, experts note. (Image declines,” it continues. wine category, the Insights adds.
courtesy of Charles Smith Wines) Data from Chicago-based Information Resources Inc. Chicago-based Euromonitor International highlights
(IRI) also suggests how red wine blends also are contributing to the
Top table wines moderate growth,
showing a 2.3 and
category’s growth. “Wine composed of blends of red
varietals has for the past decade provided an accessible
(Individual brands) 7.3 percent increase entry point for new wine consumers,” it states in its
in table wines June 2018 report titled “Wine in the US.”
DOLLAR % CHANGE VS. CASE SALES % CHANGE VS. and Champagne/ “Brands such as Apothic and Ménage à Trois have
SALES PRIOR YEAR PRIOR YEAR sparkling wines, been the most noteworthy benefactors of this trend and
Barefoot $666,072,031 -0.2 10,017,411 -0.6 respectively, in total consistently witnessed double-digit volume growth
Sutter Home $385,417,717 3.9 5,779,096 2.7 U.S. multi-outlets over the review period,” it adds.
and convenience The market research firm also expects Chardonnay
Woodbridge by $347,245,684 0.3 5,313,405 0.8 stores for the 52 blends to enjoy a promising future.
Robert Mondavi
Franzia Box $341,739,600 1.6 12,391,200 1.4 weeks ending Similarly, IBISWorld’s Lombardo recognizes the
Dec. 2, 2018. The popularity of certain varietals. “While there have
Yellow Tail $269,115,369 -0.2 4,069,559 0.6
data set also marks been certain wines that have briefly captured public
Black Box Wines $232,281,502 13.7 3,892,109 13.5 total table wine sales attention over the past five years, the classics still
Kendall Jackson $199,551,495 4.0 1,387,390 5.0 at $10.5 billion and largely dominate the market,” he says.
Vintners Reserve
total Champagne/ “These include Cabernet Sauvignon, Chardonnay
Apothic $194,064,496 1.5 1,665,034 -0.2 sparkling wine sales and Pinot Grigio,” he continues. “Additionally,
Josh Cellars $184,226,655 34.4 1,210,098 32.9 at $1.1 billion for that imported varieties have historically been popular in
Chateau same timeframe. the United States, and this trend holds true today, with
$183,458,770 3.0 1,563,347 3.8
Ste. Michelle The type of wine consumers of all age demographics seeking out new
Total sales* $10,470,776,144 2.3 127,568,224 0.2 that consumers are international varieties.”
*Includes brands not listed. drinking can help Additionally, strong value propositions can be credited
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, mass merchandisers, gas and explain the steady to the category’s stable growth, BMC’s Greene says.
convenience stores, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 2, 2018. year-over-year “Consumers are evaluating the value proposition of

12 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

 BY TAYLOR KARG

Top Champagne/sparkling wines

(Individual brands)

DOLLAR % CHANGE VS.

CASE SALES
% CHANGE VS.
LIQUID
NITROGEN
SALES PRIOR YEAR PRIOR YEAR
La Marca $112,668,215 23.6 636,292 18.8
Korbel $104,841,278 -1.0 728,141 -1.7
Cooks $94,371,509 2.4 1,117,432 -1.5

DOSING
Barefoot Bubbly $91,682,737 3.1 831,048 2.2
Andre $84,265,396 2.3 1,161,458 -2.9
Veuve Clicquot $48,768,820 6.2 80,129 4.1
Ponsardin
Cupcake $42,849,135 4.3 318,975 2.5
Ruffino $38,813,430 23.6 253,973 20.4
Stella Rosa $36,101,722 27.1 260,452 25.0
regardless of your package
Chandon $35,533,505 -5.9 170,715 -5.8 or closure preference
Total sales* $1,142,949,177 7.3 8,666,885 4.1
*Includes brands not listed.
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, mass merchandisers, gas and
convenience stores, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 2, 2018.

products leading to trading up when beverages in general,” he says.

applicable and trading down if a super-
premium product does not deliver,” he
says.
Furthermore, the overall health-and-
wellness trend plays a noteworthy role
in the performance of the wine category,
experts note. “Many consumers are
seeking products with lower calories
and/or stronger health connections to
fit within a lifestyle aimed at achieving
‘health and wellness,’” Greene says.
IBISWorld also highlights the “healthy
halo” draw of wine consumption.
“Over the past five years, consumer
preferences have shifted away from
premium beer brands toward wine and
spirits of all price ranges, contributing
to the increased volume of wine sales,”
it says its December 2018 report titled
“Wineries in the US.”
“One factor driving this trend is
consumer health concerns,” it continues.
“Medical studies released during the
past decade have shown that moderate
consumption of red wine can benefit
overall heart health.”
THE MILLENNIAL MOVEMENT
As with seemingly most alcohol
categories, millennials are a force
to be reckoned with. “Historically,
baby boomers represented the largest
consumer segment for wineries and
wine bars; however, in the past five or 10
years, millennials have captured the spot
for most wine consumed,” IBISWorld’s
Lombardo explains.
“The reason is largely two-fold:
smaller, craft wineries have popped
up in recent years, and millennials are
generally drawn to craft-style alcoholic
IBISWord’s report highlights how
millennials, in particular, are more
willing to expand their palates toward
different styles of wine, moving away SINCE 1958
from the standard light beers.
“Millennials represent an extremely
curious group of consumers,”
Euromonitor’s report explains. “To the
benefit of foreign producers, they seek
out products from new locations and
hold little preference for domestic wine.”
BMC’s Greene also notes the changing
demographics of the typical wine
consumer. “In general, older consumers
— early millennials, Gen Xers and baby
boomers — make up the majority of
the categories consumption,” he says.
“However, recent innovations and trends
that are currently driving the category
are actively opening up the market to
younger consumers, a trend that we
expect to continue in future years.”
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“Canned wine has seen a growth in
production and adoption in recent years,
representing one-in-10 launches tracked
in 2018,” Mintel’s report says. “Canned
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the industry is undeniable, IBISWorld’s
continued on page 14

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 13

 Category Focus
continued from page 13
Lombardo says. Current estimates have annual canned
wine sales around the $40 to $50 million mark, he adds.
Introducing canned wine has brought about more
opportunities for consumer consumption. “Single serve
makes consumption more accessible as consumers
can avoid wasting a 750-ml bottle if they don’t plan to
drink multiple servings in a session,” BMC’s Greene
explains. “Additionally, single serve allows wine to
more compete directly with malt products including
traditional beer and [flavored malt beverages] FMBs.”
Cans provide a multitude of benefits, all the while
further making the category more accessible to new
consumers, allowing for easy transport and consumption
in locations where glass is not ideal, he adds.
For example, Tualatin, Ore.-based Union Wine
Co. offers five varietals of its wine in cans. In the 12
months from July 2017 to July 2018, the
brand saw a 52 percent increase in sales,
said Ryan Harms, founder and owner, in
Beverage Industry’s July 2018 issue.
“We attribute this success to the
portability, recyclability and cost-efficiency
of putting wine in cans as well as the
explosive growth of the canned wine
category,” he said.
>>
Canned wine provides a multitude of benefits including helping the
Another alternative to the traditional
category be more accessible to new consumers, and allowing for easy
transport and consumption in locations where glass is not ideal, BMC’s wine bottle making headway is aluminum
Nathan Greene says. (Image courtesy of Union Wine Co.) bottles. In January, Calistoga, Calif.-
14 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
based Sterling Vineyards, a division of Treasury Wine
Estates, launched a trio of wines in 375-ml single-serve
aluminum bottles. Available in Chardonnay, Cabernet
Sauvignon and Rosé, the lineup is designed to improve
convenience for consumers, the company says.
The 375-ml category is showing double-digit growth,
with an increase of 54 percent in dollar sales and
35 percent in volume year-over-year, according to
data from IRI at the time of the announcement.
Although innovative packaging offers new
possibilities for brands, the category is experiencing
some challenges. “Fragmentation of the market remains
an issue that is further exacerbated by new growing
entrants, making it difficult to attract and retain
consumers, especially in a market where millennials
gravitate to [brand] switching,” BMC’s Greene says.
“Cyclical nature of the market is likely to continue, in
that many of the leading growth brands [in the past] five
or so years are now flat or declining, which may very
well happen to today’s growth leaders.”
As the wine connoisseur evolves, consumers can
expect the market to become even more accessible, with
a wider range of flavors and styles, and a new field of
leading brands, most from existing leading suppliers and
maybe even from new disruptive players, Greene says.
“The rate of innovation for all aspects of the industry
including products, packaging, distribution and styles
will accelerate in the coming years,” Greene says. BI
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VICTORIEUX CHAMPAGNE
Victorieux LLC, Portland, Maine
Telephone: 207/808-2049
Internet: vchampagne.com
Distribution: Select markets
FRENCH INDULGENCE
Victorieux LLC introduced its self-titled Champagne
brand. Victorieux Champagne is grown in the
terroir of the Côte de Sezanne, France, from
a certified, sustainable viticulture grower and
producer family, the company says. Available in
select markets, Victorieux features a 12 percent
alcohol-by-volume content and has a suggested
retail price of $49.99 for a 750-ml glass bottle.
HINT WATER FOR KIDS
hint Inc., San Francisco
Telephone: 415/513-4050
Internet: drinkhint.com
Distribution: National
GÂC HYDRATE PASSIONFRUIT SPARKLING WATER
GacLife LLC, Santa Monica, Calif.
Telephone: 719/581-9189
Internet: gaclife.com
Distribution: National and online
Ingredients: Carbonated water, organic 100 percent
passionfruit juice, organic 100 percent gac fruit and
organic 100 percent monk fruit juice.
SPARKLING PASSION
GacLife LLC released its newest beverage line:
Gâc Hydrate Sparkling Water in Passionfruit.
The sparkling water is infused with gâc fruit,
which delivers phytonutrients, including highly
concentrated and bioavailable carotenoids
that provide antioxidant content, it adds.
Gâc Hydrate Passionfruit Sparkling Water
is available nationwide in six-pack cases of
12-ounce cans for a suggested retail price
of $24. Consumers also can get a monthly
subscription of a six-pack for $19.20 a month.
TO SUBMIT A NEW PRODUCT FOR CONSIDERATION,
VISIT BEVINDUSTRY.COM/NEWBEVERAGEPRODUCTSUBMISSION
16 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
TERRA WATER
EB Beverage, Las Vegas
Telephone: 808/779-3504
Internet: ecoforlifeus.com
Distribution: National
HYDRATE
THE PLANET
EB Beverage launched Terra Water, a bottled
water where the bottle is 100 percent
biodegradable and compostable, the
company says. The bottle and cap are
plant based and the labels are made from
vegetable oil, it adds. The 500-ml bottles
will biodegrade at 60 degrees and burn
without releasing pollutants into the air.
Terra Water is available nationwide for a
suggested retail price of $1.99 for a bottle.
GIVE YOUR KIDS A HINT
hint Inc. launched its new line of products: hint water
for kids. Available in four fruit flavors — Watermelon,
Cherry, Blackberry and Apple — the new line is
packaged in 200-ml Tetra Pak cartons. Hint waters
are non-GMO certified and WHOLE30 approved. They
are vegan, and contain no MSG, nuts, soy or gluten.
Like all hint waters, the kids’ version is free from
juice, sugar, diet sweeteners, colors, calories and
preservatives, the company says. Hint water for kids
is available via the company’s website, and soon at
Costco and specialty retailers nationwide, it adds.
WESTERN SON VODKA CANNED COCKTAILS
Western Son Vodka, Pilot Point, Texas
Telephone: 940/324-0008
Internet: westernsonvodka.com
Distribution: National
PARTY IN A CAN
Western Son Vodka released its new canned cocktails in four flavors:
Vodka Mule, Watermelon Vodka Seltzer, Lime Vodka Seltzer and
Blueberry Vodka Lemonade. The vodka-based beverages contain
two cocktail servings in each can and features a 10 percent
alcohol-by-volume content. Four-packs of individual flavors are
available nationwide for a suggested retail price of $9.99.
 Sponsored By
HEINEKEN 0.0
Heineken USA, White Plains, N.Y.
Telephone: 914/681-4100
Internet: heinekenusa.com
Distribution: National
A LOW-CAL BREW
Heineken USA announced the launch of its latest innovation: Heineken 0.0, an
alcohol-free malt beverage that is brewed with a unique recipe for a distinct
balanced taste that contains 69 calories in each bottle, the company says.
Heineken 0.0 is a versatile brew for a variety of drinking occasions, and connects
with the discerning tastes of a wide range of drinkers, it adds. Heineken 0.0 is on
sale nationwide in six-packs of cans and bottles. Price varies from state-to-state.
VIVE HARD SELTZER
Braxton Brewing Co., Covington, Ky.
Internet: braxtonbrewing.com
Distribution: Select markets
CONURE WATER ENHANCERS
Conure LLC, Chicago
Telephone: 872/225-0945
Internet: conurelife.com
Distribution: National
ADAPTOGEN-INFUSED
Conure LLC launched its self-titled line of
super herb and adaptogen-infused water
enhancers. Packaged in single-serve
packets, Conure contains no sugar and is low
in calories, the company says. Each packet
contains herb flavors and extracts and is
designed for 16-ounces of water, it adds.
Available in Ashwagandha + Lime, Ginger
+ Lime, Tumeric + Lime and Holy Basil,
Conure is offered nationwide for a suggested
retail price of $1.99 for a single-serve and
$10.99 for a box of six packets.
Developers of some of the
world’s best known brands
allenflavors.com
COMMUNITY 2X CAFFEINE COFFEE
Community Coffee Co., Baton Rouge, La.
Telephone: 800/884-5282
Internet: communitycoffee.com
Distribution: National
FOR A POWERFUL DAY
Community Coffee Co. launched a new single-serve coffee line:
Community 2X Caffeine Coffee, which offers a natural extra boost
of caffeine from coffee extracts, the company says. Community
2X Caffeine Coffee is crafted with 100 percent Arabica coffee
beans and packaged in single-serve pods compatible with Keurig
2.0 K-Cup Brewers, it adds. The 3.88-ounce pods are available
nationwide for a suggested retail price of $8.49 for a 10-pack.
HEALTHY & HANDCRAFTED
Braxton Brewing Co. released Vive Hard Seltzer, a
hard seltzer crafted with pure Kentucky artisan
water, the company says. Containing 100 calories
and 2 grams of carbohydrates, Vive Hard Seltzer is
available in four flavors: Mango, Lime, Dragonfruit
and Grapefruit. Packaged in 12-ounce slim cans,
Vive features a 5 percent alcohol-by-volume
content and is available in select Kroger stores.
HENDRICK'S ORBIUM GIN
William Grant & Sons Ltd., New York
Internet: hendricksgin.com/orbium
Distribution: Select markets
LOTUS FLOWER BOMB
Hendrick’s Gin, a brand of William Grant & Sons Ltd.,
announced the launch of a new limited-edition gin —
Orbium — to the U.S. market. A reinterpretation of
the rounded house style of the original Hendrick’s Gin,
Orbium is instilled with additional extracts of quinine,
wormwood and lotus blossom, the company says. The
44 percent alcohol-by-volume gin is available in select
bars throughout the United States.
bevindustry.com | FEBRUARY 2019 | Beverage Industry | 17
 Special Report

The many layers

of health, wellness
Trend becomes WHEN TRYING TO INSTILL AN APPRECIATION FOR THE COMPLEXITY OF ART,
many art teachers and af icionados will highlight Georges Seurat’s 19th century
more complex for
painting titled “A Sunday on La Grande Jatte.” The oil on canvas is celebrated for
consumers its juxtaposition of optics and color exemplified by painted use of dashes and
dots. The complexity of Seurat’s famous painting has become a representation of
the post-Impressionist movement and the innovative ways artists transitioned
into the avant-garde art movement. Although unlikely to be celebrated in a high-
traff ic art museum, today’s health-and-wellness movement has shown itself to
exhibit its own layers of complexity to support today’s consumers.
“Americans’ definition of health and wellness has Nutrition & Weight Loss accounted for $702.1 billion
gotten more complex,” says Gary Hemphill, managing of the wellness economy in 2017, up from $647.8 billion
director of research for New York-based Beverage in 2015, according to data from GWI. This puts the
Marketing Corporation (BMC). “It varies by individual wellness sector’s average annual growth rate at
and it has morphed over time.” 4.1 percent, it adds. In fact, GWI estimates that the
The Miami-based Global Wellness Institute (GWI), wellness industry now accounts for 5.3 percent of the
a nonprofit organization with a mission to empower global economic output.
wellness worldwide by educating public and private Given the economic impact health and wellness
sectors about preventative health and wellness, also has accrued, analysts foresee its reach only growing,
recognizes how health and wellness has evolved. particularly within the food and beverage markets. For
“Once upon a time, our contact with wellness was example, Chicago-based Mintel identified “Through
occasional — we went to the gym or got a massage,” the Ages” as one of its trends to watch in its November
said Katherine Johnson, a GWI senior researcher, in a 2018 “Global Food and Drink Trends 2019” report.
statement at the 12th annual Global Wellness Summit “Healthy aging is emerging as a food and drink
in October 2018. “But this is changing fast: a wellness opportunity in 2019,” the report states. “Preparing oneself
mindset is starting to permeate the global consumer for a longer, healthier lifespan is particularly relevant
consciousness, affecting people’s daily decision-making as consumers view health and wellness as a holistic,
— whether food purchases, a focus on mental wellness proactive and ongoing pursuit. Consumer priorities for
and reducing stress, incorporating movement into daily health and wellness is a continuation of the importance of
life, environmental consciousness, or their yearning for self-care, a habit identified in Mintel’s ‘2018 Global Food
connection and happiness. Wellness, for and Drink Trend’ Self-Fulfilling Practices.”
more people, is evolving from rarely to Noting that the global population of those aged
daily, from episodic to essential, from 60 and older only continues to expand, the market
a luxury to a dominant lifestyle value. research firm highlights the relevancy that aging has
And that profound shift is driving and what that can mean for manufacturers for the food
powerful growth.” and beverage markets.
“Longer lifespans present opportunities for food
GROWING OPPORTUNITIES and drink manufacturers to take inspiration from the
According to the GWI, the global beauty industry and create products that help people
wellness industry has grown to look and feel young,” the report states. “Food and
be a $4.2 trillion market across 10 drink products can help people of all ages improve
sectors: Personal Care, Beauty & their bone, joint and brain health, as well as proactively
Anti-Aging; Healthy Eating, Nutrition address other age-related health concerns.”
& Weight Loss; Wellness Tourism; Mintel encourages food and beverage manufacturers
Fitness & Mind-Body; Preventive & to explore formulations through better-for-you
Personalized Medicine and Public ingredients that support segments like bone and joint
Health; Traditional & Complementary health, immune systems and cognitive health. It also
Medicine; Wellness Real Estate; Spa identifies a growing healthy aging segment: eye health.
Economy; Thermal/Mineral Springs; “Considerations such as eye health are also growing
>>

Mintel’s “Through the Ages” trend encourages food and beverage and Workplace Wellness. in importance in our technology-centric culture, which
manufacturers to explore formulations through better-for-you ingredients
that support segments like immune systems. Blossom Water reformulated As the second largest global wellness has many consumers looking at screens for the better
its lineup to include Staimune, a shelf-stable probiotic. (Image courtesy of sector (Personal Care, Beauty & Anti- part of the day,” the report states.
Blossom Water LLC) Aging being No. 1), Healthy Eating, As these healthy ageing product attributes gain

18 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

 By Jessica Jacobsen

“Early adapters of wellness modalities — especially aff luent

celebrities who receive attention for their lifestyle choices —
may have more resources to spend on healthy,
organic food, special fitness programs, etc. However,
the Global Wellness Institute is committed to the
democratization of wellness, i.e., wellness for all.”
— Beth McGroarty, vice president of research for Global Wellness Institute

footing in the beverage market, ingredients that
support these properties also are likely to proliferate.
“With more consumers taking an active interest in
their long-term health, expect to see more nootropics,
a broad group of supplements like L-theanine, B
vitamins, choline and omega-3s, that claim to enhance
brain power, focus, alertness and general well-being,”
Mintel forecasts in the report.
BMC’s Hemphill adds that health-and-wellness
formulations have come to be about an amalgamation
of not just what’s in the product but also what isn’t.
“In a nutshell, healthier drinking and eating today
entails fewer calories, less sugar and more natural
and organic products,” he says. “Drinking healthier
beverages is as much about what’s in the products as
what’s not in the products.”
Among the beverage categories, Hemphill notes
that some have reaped the benefits of the health-and-
wellness movement more than others.
“The single biggest trend in health and wellness
from a category perspective has been the emergence of
bottled water as the most popular beverage category
in the U.S.,” he says. “On the flip side, the decline of
carbonated soft drinks has come about in part due to
the consumer movement to healthier beverages.”
Based on estimated wholesale dollars, the wellness
and functional ready-to-drink (RTD) beverage segment
accounted for more than $81.3 billion in 2017, according
to BMC data. This is up from the more than $70 billion
in 2012.
“Beverages with health-and-wellness attributes
are outpacing the growth of the overall market and
are likely to continue to do so in the years ahead,”
Hemphill says.
Although the GWI doesn’t specifically track
beverage metrics, Beth McGroarty, vice president of
research for GWI, highlights that an observational
analysis does show an increase in demand for food and
beverages that are natural or organic. She notes that
this could be linked to various reasons.
“[As] one example, informed parents understand
the connection between diseases like Type 2 diabetes
and diet and realize they can spare their children the
hardship of making lifestyle changes later in their lives
by instilling healthy habits at an early age,” she says.
“In 2013, WHO estimated there were 42 million obese
children under the age of five worldwide.”
DIVERSE DEMOGRAPHICS
“In general, the new emphasis on wellness crosses all
demographics,” McGroarty says. “Of course, children
are deeply influenced by the habits and practices of
their parents or caregivers. Early adapters of wellness
modalities — especially affluent celebrities who receive
attention for their lifestyle choices — may have more
resources to spend on healthy, organic food, special
fitness programs, etc. However, the Global Wellness
Institute is committed to the democratization of
wellness, i.e., wellness for all.”
To support this mission, the GWI launched The
Wellness Moonshot in 2017, which is designed to create
a world free of preventable diseases, it says.
“The Wellness Moonshot is a call to action to
eradicate chronic, preventable disease worldwide by
uniting the health and wellness industries,” McGroarty
explains. “GWI’s goal is to aggregate information on
a global scale, collaborate to share knowledge and
eliminate silos, and accelerate the pace of change to
achieve significant results. The campaign has received
strong support from global wellness leaders, medical
professionals, and committed organizations.”
When it comes to developing food and beverages
that support healthy aging, Mintel says that
manufacturers should start with senior consumers.
“At a time when record numbers of people are living
to be 100 years old, food and drink companies are
challenged to address the wide variety of health states
of consumers aged 55 and older,” the report states.
“The diversity of seniors’ needs can be addressed
through food and drink for medical purposes as well
as products designed for prevention, with formulations
that are nutritious, flavorful, and easy to consume.”
For example, the report details that 20 percent of
U.S. consumers aged 65 and older currently use a
supplement for joint health.
Because what might be important to a person as
an adult is not the same as to a child and vice versa,
variations of health and wellness exist in the market,
BMC’s Hemphill says. “As the beverage landscape has
proliferated, we have seen marketers develop products
for specific demographic groups,” he says.
But no matter which demographic food and
beverage marketers are targeting, Mintel highlights
the lessons that can be learned from the beauty and
personal care markets. “Beauty and personal care has
successfully established a model for healthy aging by
designing proactive products that are marketed with
positive language to people of all ages,” the report
>>

Gâc Lemon Water delivers phytonutrients

With the health-and-wellness market more complex
than in past years, analysts can trace the changing
layers to diverse health-and-wellness trends across
demographics.
states. “Food and drink brands can follow similar
models and target healthy aging products toward
consumers of any age who want to prepare their bodies
for longer lifespans.” BI
from the gâc fruit. These nutrients include
carotenoids that provide antioxidant
protection while preserving collagen for skin
firmness and radiance, the company says.
(Image courtesy of GacLife LLC)

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 19

 Cover Story

MAKING
THE SHIFT WHEN IT COMES TO BEVERAGE
consumption choices, many will
highlight that consumers are not at a
loss for solutions. However, data shows
that on a volume basis, one category
has emerged as the latest favorite:
bottled water. According to a May 2018
release from the International Bottled
Water Association (IBWA) and Beverage
Marketing Corporation (BMC), bottled
water was the No. 1 beverage product
in the United States by volume, for the
second year in a row.
Given the volume growth of packaged water,
beverage manufacturers have taken notice of how
consumers are reaching for hydration beverages over
sweeter options, prompting them to rethink their own
portfolios.
This shifting sentiment caught the attention of Cott
Corporation, Tampa, Fla., and Mississauga, Canada,
back in 2013, thereby paving the way for the beverage
manufacturer to create a new identity for itself.
“We have an annual process whereby we look out
over the next three, five, seven and 10 years, which
culminates in a Global Senior Leadership meeting in the
third quarter of each year,” explains Tom Harrington,
Chief Executive Officer (CEO) of Cott. “As a part of
this process in 2013, our senior leadership team lead
by Jerry Fowden (our CEO during the transformation)
and Jay Wells, CFO of Cott determined that the sugary
sweetened beverage market would continue to decline
as the consumer was shifting consumption from sugary
sweetened beverages and toward healthier alternatives,
including a variety of products within the water and
coffee categories.”

COTT CORPORATION SEES BRIGHT

However, that was not the only factor impacting
the then private-label beverage manufacturer. “In
addition to this shift in consumer behavior, we also

FUTURE WITH HOD WATER

experienced pricing and margin pressures from our
retail customers,” Harrington details. “This price and
margin squeeze was occurring during a time period
with relatively low commodity costs, and management
forecasted potential future challenges in the event our
commodity prices increased.
“Even with these pressures on our business,
we consistently delivered strong free cash flow
>>

Tom Harrington assumed the position of chief executive officer for Cott Corporation after it had completed its
new company identity. Harrington previously served as president of DS Services, which Cott acquired in 2014. but had not been rewarded by the markets in our
(Image courtesy of Cott Corporation) stock price,” he continues. “With this backdrop, we

20 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

 By Jessica Jacobsen

developed a strategic plan, which incorporated a shift
from a focus on small bolt-on acquisitions to larger
scale acquisitions that would allow us to quickly move
the needle and begin to transition our business and
diversify our revenues and profits with meaningfully
lower customer concentration.”
Through a strategic plan review process, the coffee and
water markets, particularly home office delivery (HOD),
caught Cott’s attention. Harrington explains that the
company found that it could seize an opportunity to be
the leader in the HOD water market while lowering its
customer concentration and exposure to commodities.
Although the prospectus on HOD water was most
desirable, the company found the market for HOD and
foodservice or “on-the-go” coffee to be appealing as well.
“HOD was also a channel with good historical growth
with expected growth many years out into the future,”
Harrington says. “In addition to HOD water, we also
liked the ‘on-the-go’ coffee channel and bookmarked
S&D Coffee as the business that we would like to have
within our portfolio as it was a leader in not only the
roasting and grinding of coffee and blending of tea
for many of the well-known quick-service restaurants,
convenience stores and distributors throughout the
U.S., but it was also the only vertically integrated coffee
and manufacturer with extract production capabilities
relative to its peers.
“Being a key supplier within the ‘sticky’ distribution
channel for so many well-known customers as well as
being a leader within the fast-growing extract channel,
(think cold-brew coffee, flavored coffees, the concentrates
used to make ready-to-drink coffee, etc.), we looked at
S&D as the ideal business to acquire when making our
move into the ‘on-the-go’ coffee channel,” he continued.
costs, and our bottles are reused 50 plus times thereby
minimizing any increases in the costs of the materials;
[and] growing categories with the ability to leverage
an international footprint and in turn drive additional
profits within the businesses,” he says.
Also part of Cott’s transformation was the sell-off of
its legacy carbonated soft drink traditional beverage
manufacturing business. In 2018, this was completed with
the $1.25 billion sale to Refresco, which included Cott’s
North America, United Kingdom and Mexico beverage
manufacturing businesses.
Harrington notes that it wasn’t necessary to divest
from this business; however, by doing so, it allowed Cott
to focus on its new business ventures while significantly
reducing the leverage of the business.
Although Cott already has made high-profile M&A
moves, the company realizes that more acquisitions
will likely be part of its future as it strives to create more
value for its shareholders and customers.
“Throughout 2018, we noted that we would execute
approximately $40 to $60 million of tuck-in or smaller
acquisitions,” Harrington says. “We executed against this
priority in 2018 completing several tuck-in acquisitions
as well as the acquisition of Mountain Valley, which is a
fast-growing premium American branded spring water
bottled in 5-gallon glass bottles as well as a variety of
other spring, sparkling and flavored water bottle formats,
which will benefit not only our HOD water channel but
also has many opportunities in foodservice. In addition,
we have noted that we would look at more scale
opportunities over the coming years in the areas of HOD
water, filtration and coffee, tea and extracts with HOD
water being the primary area that we would look to grow
ahead of the other areas.”

BUYING & SELLING ‘ROUTED’ FOR SUCCESS

With the vision to become the leader in HOD water and
coffee, Cott began its merger and acquisition (M&A)
activity in 2014. The first acquisition occurred in May of
that year with the purchase of Aimia Foods, a provider
of hot drinks to foodservice and catering channels in the
United Kingdom.
Toward the end of 2014, Cott made its initial foray
into the North American HOD water market with the
purchase of DS Services, a direct-to-consumer services
provider across home and office delivery water, office
coffee and filtration services in the United States.
The company continued to add to its arsenal in 2016
with the acquisitions of Aquaterra, a Canadian distributor
of home and office delivery; S&D Coffee & Tea, a custom
coffee roaster and distributor of coffee and tea-based
beverage solutions for the U.S. foodservice market; and
Eden Springs, a European direct-to-consumer home and
office delivery water and office coffee services provider
with operations in 18 countries.
When making these acquisitions, Harrington details
that it was a collection of factors that motivated Cott to
make these M&A moves.
“The key characteristics of the HOD market that
appealed to our team — and myself as I was the
President of DS Services when Cott acquired the
Following Cott’s disposition of its traditional business,
the business now sees more concentration from its
Route Based Services operating segment. According to
Harrington, the Route Based Services operating segment
accounts for 70 percent of the company’s revenue and
more than 80 percent of its earnings before interest, tax,
depreciation and amortization (EBITDA) with the North
American division of the Route Based Services segment
accounting for over 70 percent of the revenue of the
Route Based Services operating segment.
“Within Route Based Services, our water delivery
services (primarily the 3- and 5-gallon returnable water
bottles) generates around 70 percent of the revenues,
while office coffee services generates 10-12 percent
of revenues, and filtration generates 3-4 percent,”
Harrington details.
Across all of its markets, Cott’s services business
reaches 2.5 million customers while the company’s U.S.
HOD business, covers more than 90 percent of the U.S.
population, serving 1.7 million customers. Of those
1.7 million U.S. customers, 1.4 million are HOD water
customers, Harrington says.
When Cott acquired the HOD businesses, it was able
to retain the heritage brands for those regions. Those
brands include Hinckley Springs in the Chicagoland
>>

business — was the following: minimal customer
concentrations; the ability to implement price increases
to offset inflation; limited exposure to commodities,
for example, we have energy surcharges to offset fuel
area, Alhambra in Northern California, Sparkletts
in Southern California and Texas, and Kentwood in
Louisiana. It also offers Mountain Valley spring and
sparkling water, a water that has been continuously
continued on page 22
Cott Corporation’s North American Route
Based Service segment accounts for 70 percent
of the company’s revenue and more than
80 percent of its EBITDA, Tom Harrington says.
(Image courtesy of Cott Corporation)

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 21

 Cover Story
>>
The success of the on-the-go coffee channel
appealed to Cott Corporation’s interest in S&D
Coffee. (Image courtesy of Cott Corporation)
22 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
continued from page 21
bottled in Hot Springs, Ark., since 1871, the company
says.
Beyond its variety of water brands, Cott also offers
a plethora of packaging formats that help serve the
customized needs of its consumer and commercial
customers.
“The key driver of our business and the success of our
business is 3- and 5-gallon returnable water bottles, but we
also offer a variety of other products such as 500-ml single-
serve cases of spring and purified water; premium glass
in 5-gallon, 333-ml, 500-ml and 1-liter formats; sparkling
water in a variety of packages; sparkling flavored water
in a variety of packages; in addition to a variety of other
ancillary or partner products such as La Croix, Voss and
FIJI,” Harrington says. “We also offer a variety of licensed
products within our route-based coffee services program
including Starbucks, Lavazza, Mars and Keurig. And let’s
not forget our product offerings in the fast growing filtration
category where we service over 150,000 customers across
our footprint with this being one area that we would look to
develop more scale over the next three to five years.”
Because the Route Based Services division is direct-
to-consumer, those working in the field are the main
point of contact for consumers. Harrington explains
that the company works to support these route service
representatives, thereby ensuring a positive experience
for the consumer.
“We have dedicated route service representatives,
the face of the company, that deliver product directly to
our customers as well as a state-of-the-art customer care
center, the voice of the company,” he says. “We track
our performance daily to ensure that we are satisfying
customers. We are currently experiencing the lowest quit
rates that we have seen within our North American Route
Based business. This is due in large part to a number of
initiatives that we have implemented over the last few
years including updating our route handhelds to iPhones
and linking them to our customer care center, which we
consolidated into one state-of-the-art center from three
separate centers back in 2015. We continue to upgrade
our customer experience in areas of website design and
flexibility, product offerings, as well as a mobile app that we
have in development.”
Cott also continues to bolster its product portfolio.
Although still water makes up large portion of its HOD
water share, it does offer sparkling options and is looking
to add more.
“This is an area where we have started to expand —
although it does not make up a large portion of our current
sales, we would expect it to grow over the coming years
as we improve our cross-selling capabilities, expand our
products within our footprint and add new products,”
Harrington explains. “For instance, we acquired Mountain
Valley Springs in October of 2018, an American premium-
glass spring, sparkling and flavored bottled water
company. We would look to start increasing the availability
and sales of these products over the coming years.
“In 2019, we have also added the distribution of La Croix,
which is a very popular sparkling beverage to our product
offerings and based upon the success that La Croix has
had in retail outlets, we would expect good growth from
this new product offering,” he continues. “In addition, we
have begun working on a water cooler that has sparkling
capabilities, which we will roll out in Europe in 2019,
resulting in the ability to deliver our environmentally-
friendly returnable bottle with sparkling capabilities.”
However, portfolio expansion is not the only growth
models that Cott is examining for its North American
markets.
“As we look to 2019 and beyond, we have a variety
of growth initiatives and would expect growth to come
from increased customers, increased consumption per
customer, pricing initiatives, small tuck-in or customer
list additions and the benefit of our customer experience
initiatives that will drive further cross selling and an
increased retention rate,” Harrington explains. “Within
North America we have expanded our direct sales force to
focus on continuing to grow our commercial customer base
throughout our footprint. We have also consistently driven
around 25 percent of our new customers from our route
service representatives as they benefit by adding additional
customers to their routes as they are primarily paid on a
commission basis.
“We also have a focused effort in growing our residential
customer footprint in the U.S. through the utilization of a
booth program in which we capitalize on the customer base
of a large retail partner by setting up booths on a weekly
basis in their stores,” he continues. “In addition, we have
seen a significant increase in customer additions through
our online and social media marketing activities.”
SPEEDY DELIVERY
With more than 2,400 routes dedicated to its North
American HOD delivery market alone, Cott understands
the importance of streamlining its distribution operations.
Across its 20 markets, the company has more than 3,600
routes in total.
To support these operations, Cott’s water route delivery
utilizes 10 bay side-load route trucks, while its coffee
delivery business features 18 20-foot step vans, Harrington
explains. Its equipment service fleet primarily is comprised
of cargo vans.
Also key to its delivery support is the use of routing
software solutions. “We are currently implementing Omni-
tracks in the U.S. and utilize it in Europe for routing,”
Harrington says. “Thus far, the software and tools have
allowed us to become more efficient throughout our
system. We are also working with more fuel-efficient
vehicles with ‘clean’ technology in addition to reviewing
the opportunity to incorporate propane technology. In
addition, we are implementing new fleet software that
will reduce our dependency in areas that we have needed
to outsource repairs and maintenance — we typically
employ our own mechanics but there are times when we
utilize third parties due to scheduling conflicts, etc. — and
the software is designed to assist us with improving/
reducing vehicle downtime both of which will reduce fleet
maintenance expenses and increase staff productivity.”
ACROSS THE POND
Although Cott has a vast presence throughout the United
States and Canada, the reinvented beverage company also
maintains notable representation in 17 European markets
and Israel.
For in-house operations (customer service, IT and
procurement), Cott has a centralized senior management
team that works across the 18 markets. However, the day-
to-day operations is unique to each country, Harrington
explains.
“We do utilize best practices in areas such as marketing,
 procurement, product offerings, etc. across the
business,” he says. “One of the benefits of having 18
different countries is that the diversification allows us
to stay on track throughout the year as small hiccups
seen in one area are offset by wins in other areas.”
Counter to North America, the European division
is primarily made up of commercial accounts. Yet,
Cott does see growth potential within the direct-to-
consumer market in Europe.
“[W]e see the opportunity to market to residential
customers as a future source of growth and we are
working on technology that would work better with
residences in Europe as they typically have less space
within their kitchens relative to North America,”
Harrington says. “The service offering, plants, and
products are very similar to the U.S.”
Adding specifics, Harrington notes that Western
Europe has a larger population of filtration users, while
HOD is more desired in Eastern Europe.
“As a result, the western part of Europe is a flat to
slight growth market for HOD while we see good
growth in Eastern Europe,” he says. “We also offer
filtration services and see this as an opportunity as
the filtration market has very good growth in both the
that these products are utilized in different channels
of our business. For instance, our small office / home
office or SOHO focus within HOD water typically
results in coolers being placed in areas that do not have
water access so the placement of a filtration unit is not
practical.”
ENVIRONMENTAL SOCIAL
AND GOVERNANCE
Cott’s new shape and form also allows it to now focus
on areas such as sustainability.
“Sustainability lies at the heart of our company
— it’s both our legacy and our future,” Harrington
says. “Our products and services are focused on
contributing to a sustainable future. We take advantage
of environmentally friendly processes that support
the health of the planet. Our successful sustainability
programs have reduced landfill waste, our carbon
footprint and water usage.”
Many of the products used within the HOD
water business can be thought of as some of the top
environmentally friendly packages currently available,
the company says.
“We are able to utilize our 3- and 5-gallon water

U.S. and Europe but it is very fragmented and has a
much smaller base as there are more HOD placements
throughout the areas that we operate in. In terms of
filtration versus HOD, we like both channels but find
bottles 50 times before we grind them up and utilize
a portion for the next generation of water bottles and
the remaining portion is utilized within other plastic
recycled materials,” Harrington says. BI
>>
Sustainability is a key focus for Cott Corporation.
The company is able to use its 3- and 5-gallon water
bottles 50 times before they are ground up for the
next generation of water bottles, Tom Harrington
says. (Image courtesy of Cott Corporation)

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bevindustry.com | FEBRUARY 2019 | Beverage Industry | 23

 Up Close With...
Busy as a bee
NOT MANY 12 YEAR OLDS CAN SAY THAT THEY HAVE PITCHED THEIR BUSINESS
Me & the Bee’s
on TV’s “Shark Tank,” introduced then-President Barack Obama at the United
Lemonade celebrates State of Women Summit, who jokingly suggested he should work for her, and
10 years of ‘bee-lieving’ formed her own nonprofit, Healthy Hive Foundation, which is aimed at saving
the honeybee and the food supply.
But it’s safe to say that social entrepreneur and
philanthropist Mikaila Ulmer is no ordinary young
woman. From a simple lemonade stand and using
her great granny Helen’s flaxseed lemonade recipe,
Ulmer, now 14, is the founder and chief executive
officer of Austin, Texas-based Me & the Bees
Lemonade.
The purpose-driven company offers ready-
to-drink (RTD) premium “lemonade that tastes
good and does good” in 12-ounce sustainable
glass bottles in four flavors: Original with Mint,
Ginger, Prickly Pear and Iced Tea/Lemonade.
The clean-label, freshly squeezed lemonades
contain no high-fructose corn syrup, no
preservatives and additives, and blends honey
with real lemon juice and flaxseed, which is
rich in omega-3 fatty acids and antioxidants,
the company says. The lemonades also are shelf
stable and gluten free.
“Our most popular SKU is Prickly Pear,” Ulmer
says. “We’ve come a long way from being available
in a lemonade stand in front of my house, then a
local pizza store and then Whole Foods Market in
Austin, Texas.
“Me & the Bees is buzzing off the shelves in
30-plus states from New York to California,”
she continues. “I love my flavors because I
use ingredients that are known to be both fun
and functional. There are unique flavors like
mint, which is a cooling agent; and half tea/
half lemonade, which has antioxidants; and
even prickly pear, which is known as an anti-
inflammatory.”
Word of mouth and Ulmer’s passion, persistence
and ingenuity has led to a distribution deal with
UNFI, resulting in more than 360,000 bottles
of the lemonades being sold annually in about
600 retailers, including Whole Foods, Wegmans,
Gelson’s and Natural Grocers. A distribution deal
with KeHe is in the works.
The family owned and operated company has
grown 490 percent from when it first began 10
years ago, and would not have been possible
without her family’s support, Ulmer says. In
addition to her mother, D’Andra, the company’s
chief marketing bee who helps with social media,
events, story-telling and the family schedule,
her father, Theo, serves as chief worker bee and
(Image courtesy of Me & the Bees Lemonade) handles finance and operations, purchase orders
24 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
and logistics. Younger brother Jacob helps out with
photography, while older brother Khalil assists
with computer science, “but because he’s a junior
in college, he doesn’t have as much time to spare
anymore,” Ulmer says, laughing.
To respond to the growth of the company, Me &
the Bees expanded its hive, which now includes
three regional broker teams, representing 15 states
and a new national sales team, she says.
Named one of Time’s 30 Most Influential
Teenagers, Ulmer is a highly sought-after speaker,
workshop facilitator and media presence whose
story has been showcased in teenvogue, Ebony,
“Good Morning America,” the “Today Show,”
“20/20,” among many others.
Also worth noting is her 2015 appearance, where
at the age of 9 on the aforementioned TV show
“Shark Tank,” her passionate pitch resulted in a
$60,000 investment from businessman Daymond
John. Two years later, a consortium of former and
current American football players invested more
than $1 million.
Now known by many as “the Lemonade Girl
from Shark Tank,” the high school freshman at
St. Stephens Episcopal School in Austin, Texas,
says she loves school and learning. Noting that she
is fluent in Spanish, her other favorite subjects are
math and science.
Although balancing a successful business at
such a young age is hard, Ulmer credits her family,
business partners, investors and customers for
the company’s success. Although diminutive in
stature, the 5-foot-tall spirited teen is well aware
of the importance of serving as a role model for
African-American teens and “really everyone”
wanting to pursue their passion, she says. As a
result, Ulmer soon will begin writing a book, she
adds.
“This is pretty important,” Ulmer enthuses. “I
receive a lot of mail from students and teachers
who share with me that they follow me on social
media (@MikailasBees, hashtag #girlpower)
and they congratulate me on all the hard work.
They often ask me to come visit their schools or
organization to inspire kids.
“Balance is key,” Ulmer continues. “I get a lot
of help from my mom. She helps manage my
schedule and makes sure I have time for school,
work and play.”
 By Barbara Harfmann

BEE-LIEF FROM THE BEGINNING
Although Me & the Bees Lemonade’s business and
its ability to galvanize a generation of “bee-lievers”
continues to thrive, Ulmer recalls that this journey
started as the result of an unlikely and somewhat
painful circumstance.
“In 2009, at the age of four, I got stung by two
bees in one week, and became super afraid of
the bees or anything that buzzed,” she says. “My
family, who are big on outdoors, asked me to do
research on the bees in hope that I would not be
afraid of insects — and that I would return to
gardening in our back yard. So I listened to my
parents and we started to do research on honey
bees. I learned so much about the littlest and
biggest insects in our food chain. Most importantly,
I learned that they were dying at an alarming rate
and that I wanted to save them.
“As I thought about how I was going to save them,
two more important things happened,” she continues.
“I signed up for a Children’s Entrepreneurship
event and my great granny Helen sent me her 1940s
cookbook with her flaxseed lemonade recipe. It hit
loved speaking at the United State of Women and
introducing President Obama. I also loved debuting
my new big yellow booth at [Natural Products] Expo
West in 2018. I met so many people, poured so many
cups of lemonade and closed a few retail deals. I had
so much fun, traveling to all the booths at Expo West
and getting enough snacks and goodies for months,”
she says, laughing.
Ulmer says she’s exited to return to Expo West
in March and notes that her company will be part
of the Hot Products Pavilion and located at booth
N1307. There she plans to unveil a less-sweet lineup
of her lemonades. The company also is launching
an all-natural and organic herbal Lip Balm featuring
moistening beeswax, she says.
With Ulmer at the helm, the future looks “bee-
utiful” for Me & the Bees Lemonade. “I never thought
for one minute that the bee stings … and of course
listening to my parents to do research, would lead me
on the path to discovering my passion and purpose,”
she says. “Fast-forward to 2019, 10 years later, and
I am so proud to celebrate being in business for 10
years.

me all at once. I would sign up for the entrepreneur
event, use my great granny Helen’s recipe, sweeten
it with honey and call attention to the plight of the
bees. For several years, I would sell my lemonade
at different events and many times, in front of my
house.”
Inspired by her mom and dad, Ulmer says she
always shared her profits with organizations helping
to save the honey bees. “My motto was and is ‘give,
>>
“You can ‘bee’ sweet and ‘bee’ profitable. You do Now 14, social entrepreneur and philanthropist
Mikaila Ulmer created Me & the Bees Lemonade
not have to choose,” she continues. “I started at a
from her great granny Helen’s flaxseed lemonade
very early age, using my business and profits to save recipe, hoping to galvanize a generation of “bee-
the honey bees. I never stopped ‘bee-lieivng’ in my lievers” to save the honey bees. (Image courtesy
dreams.” BI of Me & the Bees Lemonade)

π
save, spend,’” she says.
During the past 10 years, the company
continues to donate time, money and resources
to several organizations like Heifer International,
which provides gifts of honey to needy families
worldwide; the Texas Bee-Keepers Association,
which supports ongoing research through Texas
SHIPPING SUPPLY SPECIALISTS
A&M University on the preservation of bees in the
state of Texas; and the Sustainable Food Center
of Austin, a nonprofit that helps to strengthen
READY, SET, WRAP!
the local food systems and provides access to OVER 300 STRETCH WRAP
nutritious, affordable food. PRODUCTS IN STOCK
In addition, Ulmer’s nonprofit Healthy Hive
Foundation has funded the establishment of an apiary
and creating viable beehive colonies. She also has
taught more than 100 bee-keeping classes in which
thousands of bee-friendly seeds have been planted.
Me & the Bees Lemonade continues to donate
10 percent of its net profits toward saving and
growing the honeybee population, the company says.
The plight of the honeybees and sharing the story
of her fuzzy friends and their vital link to the food
chain is embedded in Me & the Bees Lemonades’
social consciousness. “More than 40 percent of
ORDER BY 6 PM FOR
commercial honey bees in the U.S. have been lost,”
SAME DAY SHIPPING
Ulmer explains. “At this rate, bees will cease to
exist by 2035. The loss of a species is tragic. The
loss of critical food worldwide is significant. And
economically speaking, bee pollination is worth
$15 billion to the U.S. farming industry alone.”
COMPLETE CATALOG
Because her mission to help the bee species has 1-800-295-5510
opened up many doors, Ulmer admits choosing uline.com
from among “so many cool” experiences is hard. “I

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 25

 Channel Strategies
Save that money
Limited-assortment, IN RAPPER LIL’ DICKY’S HIT SONG “$AVE DAT MONEY,” HE SINGS ABOUT HOW
rappers should focus on saving money rather than spending it. The chorus ends
dollar stores
with “What we do? We gone save that money.” Although used in a different context,
performing well dollar and limited-assortment stores are upgrading their offerings and allowing
consumers to “save that money” when shopping for consumables.
“Discount retailers are increasingly stocking their
shelves with consumables because that is what is
driving the demand,” says Claire O’Connor, industry
analyst at Los Angeles-based IBISWorld. “Previously,
they were known for carrying discontinued or
random items, but now operators are increasingly
stocking their shelves with food and beverage
products in an attempt to increase daily foot traffic.”
CHANGING DEMOGRAPHICS
The dollar and limited-assortment channel has
been a bright spot for the category, experts note. Jon
Hauptman, senior director of analytics at Winston-
Salem, N.C.-based Inmar, recognizes the increased
performance of the category. “Discount formats
featuring limited-assortment stores such as Aldi,
Lidl and Save-A-Lot, and dollar stores such as Dollar
General and Family Dollar grew dollar sales of
approximately 6.6 percent last year, far outpacing
retail food as a whole, which grew dollar sales of
only 2.1 percent,” he says.
The discount retail channel accounts for
approximately $76 billion in annual sales, equating
to a market share of almost 6.1 percent, Hauptman
notes, citing data from Inmar’s “2018 Future of Food
Retailing” report.
New limited-assortment stores constantly are
opening in new markets across the United States,
experts say. “Aldi, Dollar General and Family Dollar are
dominating the discount retail channel based on sheer
volume,” Hauptman says. “Aldi operates over 1,800
limited-assortment stores across 35 states, while Dollar
General and Family Dollar operate over 23,000
dollar stores combined, with each selling food.”
When it comes to innovation, Aldi is
dominating the discount retail channel by
continuously developing new, interesting
items to keep attracting shoppers, he adds.
“A second driver of the discount growth trend
is that limited-assortment stores such as Aldi are
rolling out expanded fresh offerings (produce,
meat, etc.) as well as new premium and specialty
foods that tend to attract a wider demographic
of shoppers than traditional budget-focused
shoppers,” Hauptman explains.
Similarly to Inmar’s Hauptman, IBISWorld
notes that the dollar and variety stores
industry is a top performer, particularly
>>
To attract a broader demographic of consumers, limited-
during the past five years to 2018, it states
assortment stores such as Aldi have expanded their fresh
offerings and added new premium and specialty foods, in its November 2018 report titled “Dollar &
Inmar’s Jon Hauptman says. (Image courtesy of Aldi Inc.) Variety Stores in the US.”
26 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
“A substantial platform for change within the
industry has historically targeted exclusively
low-income earners, [but] this consumer pool has
expanded in recent years to include middle-class
shoppers and even some high-income earners,” the
report states.
“Bargain shopping has become an increasing point
of pride for many wealthy consumers, and this trend
has drastically increased the industry’s customer
base,” it continues. “As a result of this expansion,
IBISWorld estimates that industry revenue has
increased at an annualized rate of 2.8 percent,
totaling $77.4 billion over the five years to 2018.”
Inmar’s Hauptman echoes similar sentiments
on the changing demographics of discount retail
shoppers. “Historically, discount retailers have been
largely shopped by middle-income to lower-income
households, i.e., those households that are looking to
stretch their weekly shopping budgets,” he says.
“However, this is changing,” he continues. “We’re
now seeing a wider demographic of shoppers
visiting discount stores. This shift is being driven by
discount operations ‘refreshing’ their store formats
to make them brighter and more appealing, and
developing innovative, new and exclusive products.”
Chicago-based Mintel also identifies the consumer
shift toward shopping at discount retailers. “Dollar
stores are increasingly appealing to consumers across
income levels, with the upper income contingent
seemingly discovering their value,” it’s December
2016 “Dollar Stores – US” report states.
“Well-to-do millennials are also flocking to dollar
stores and have become core customers for retailers
in the space that now have the challenge of retaining
these fickle, tech-obsessed shoppers,” it says.
IBISWorld’s December 2018 report also highlights
the millennial effect on discount retailers.
“Millennials, in particular, are a bargain-hunting
generation who have become increasingly prone
to shopping at dollar and variety stores,” it says.
“As the consumer pool has expanded to include
wealthier shoppers, some industry operations have
been able to raise prices, which has contributed to
profit growth.
“IBISWorld estimates that industry profit will stand
at 4.2 percent of industry revenue, which is higher
than the industry’s historical average,” the report
continues.
ECOMMERCE INTERRUPTION
As more and more retailers are delving into
 By Taylor Karg

the consumable eCommerce market, discount
retailers could potentially be facing drawbacks.
“Traditionally, discount stores were able to stay
competitive through their prices, but now online
retailers are able to offer similar prices due to lower
overhead costs, as well as increased convenience
and accessibility,” IBISWorld’s O’Connor says.
“Furthermore, consumers are able to shop online
for the best price, so they are increasingly choosing
to shop around rather than going to a specific brick-
and-mortar store because when shopping in-store,
there is no guarantee that they are purchasing the
product at the best price,” she adds.
The eCommerce channel has become difficult
for dollar stores’ value proposition of rock-bottom
pricing, Mintel’s report notes. “This conundrum
becomes a challenge for dollar stores especially
as their core clientele shifts to comprise a higher
percentage of millennials and higher income
consumers in general,” it says in regards to the
eCommerce channel. “These same shoppers also
operate their lives online and expect to able to
shop via whichever channel they choose. They may
not be willing to embrace the dollar store business
model in the future, especially without a viable
assortment and dollar channel, retailers are finding
ways to partner with eCommerce rivals rather than
solely compete with them, experts note. “To combat
the rapid expansion of eCommerce, discount
retailers have begun building their own eCommerce
offerings,” Inmar’s Hauptman says. “[For example,]
Aldi is partnering with Instacart to offer online
shopping at their stores across the country.
“Dollar stores are also finding that they need
to have eCommerce offerings to stay relevant in
today’s increasingly competitive retail market,”
he continues. “Operating eCommerce dollar stores
profitably will certainly be a challenge given
the channel’s already low margins. While dollar
stores are just getting started with eCommerce, it
will be interesting to see if they try to carve out a
unique niche by becoming the unquestioned leader
in eCommerce in selected categories in which
they already excel in serving both households
and businesses, as well as the ‘treasure hunt’ for
shoppers looking for interesting bargains.”
Going forward, dollar and limited-assortment
stores will have to expand their offerings in order
to stay pertinent. “Customers expect to have
an omnichannel shopping experience and seek

way to purchase online and/or if comparable or
better options are available at other businesses.”
Although eCommerce could threaten the limited-
innovation from dollar stores including more name
brands and better grocery selections,” Mintel’s
report says. BI
>>
The demographics of discount retail shoppers has
shifted as more consumers are associating saving
money on consumables as a form of wealth, experts
note. (Image courtesy of Dollar General Corp.)

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 27

 Between Drinks
<<
Superfruit in
<<We are Soccerr a super pack
Heineken announced W a mission to bring
With
it has strengthened its organic superfruit nutrition
o
longstanding support of tto the United States, SAMBAZON N
soccer by maintaining its debuted its Tropical Immunity
d
partnership with the UEFA A Superfruit Packs. With the immune-
S
Champions League (UCL) boosting properties of acerola as the
b
occer fans stay
and MLS, to ensure that soccer main ingredient, the superfruit pack is an
engaged and refreshed throughout the 2019 season. exotic blend of organic acerola, pineapple
Beginning March 1, Heineken’s fully integrated, and banana that can be blended into a
360-degree retail and on-premise We Are Soccer. smoothie, the company says. One serving
We Are Heineken. program, will encourage legal- of the Tropical Immunity Superfruit Packs
drinking-age fans to choose Heineken for all contains 10 times the vitamin C of an
their soccer viewing occasions and game-day orange, is 40 calories and has no added
celebrations. The program will tap into various sugar, it adds. “We are thrilled to introduce
digital platforms, including Twitter and the Tropical Immunity Superfruit Packs,
Facebook activations to drive consumers which is the beginning of a new line
to the Heineken Soccer website for of innovative products full of nutrient
game-day content and prizes. dense ingredients and health benefits,”
Cross-merchandising partnerships said Ryan Black, co-founder and chief
with Pringles and Cheez-It, executive officer of SAMBAZON, in a
compelling offers on Heineken statement. “… Our Tropical Immunity
products and game-day snack Superfruit Packs are a great way to
ADVENTURE essentials will lead to more basket quickly fuel up for the day ahead while
AWAITS rings, the company says. naturally fighting off illness.”
BY BARBARA HARFMANN
MANAGING EDITOR

I
n the new year, one of my goals is to eat healthier by
avoiding fast food and drinking more water. Thanks to a
21 day season of fasting and prayer at my church, I’m well
on the way. I’ve also pledged to be more adventurous in both my
DID YOU KNOW? 43%
travels and food and beverage choices.
Global coffee machine sales are likely to reach
For the first time, my husband, son and I are planning a trip 58,675 thousand units in 2019, growing at more
to Europe, specifically to Baja, Hungary, and Hatzfeld, Romania,
to attend the 4th World Meeting of the Danube Swabian than 4 percent compared with 2018, according to
Cultural Groups. As members of a German dance group, we will a Fact.MR study. Driven by easy operation, simple design
soak up the culture, attend wine tastings and cruise down the
famed Danube River in Budapest. and quality brewing, drip coffee machines will account for
It seems that I’m not alone in my quest for new adventures. nearly 43 percent of total coffee machine sales in 2019.
Innova Market Insights states that catering to “the adventurous
consumer” is No. 1 on the research firm’s “Top Ten Trends for — Research from a Fact.MR study on the evolving trends in the coffee machine market.
2019.” Targeting the increasingly adventurous consumers set
on new discoveries and experiences will be key in the food and
beverage industry, it states.
“The connected world has led consumers of all ages to << A viral sensation
become more knowledgeable of other cultures, contributing At the Golden Globes, a FIJI Water brand ambassador hydrating guests on the red
to 35 percent growth of ‘discovery’ claims when comparing carpet became a viral sensation after appearing in the background of a number
2017 and 2016 new product launch numbers,” it reports.
“… Consumers are moving out of their comfort zones to
of celebrity photos. In just three days, news of the FIJI Water Girl garnered more
explore bolder flavors and multisensory food experiences.” than 1.6 billion impressions, including appearances on “The Late Late Show with
At No. 2, the plant kingdom and the plant-based James Corden,” “Good Morning America” and in People. To capitalize on
market shows no signs of slowing down, as companies
and brands are “greening up” their portfolios to attract the hashtag #FIJIWaterGirl movement, the premium
mainstream consumers, the market research firm says. water company installed life-size standees at retailers
Rounding out the Top 5 are Alternatives to All, with nationwide. “For more than a decade, FIJI Water has
consumers adding alternative proteins like lentils and
chickpeas to their diets; Green Appeal, including waste shared the red carpet with some of Hollywood’s biggest
reduction through upcycled ingredients and post-consumer stars,” said Clarence Chia, vice president of marketing
recycling; and Snacking: the Definitive Occasion, a central and e-commerce for FIJI Water, in a statement. “Now FIJI
focus of innovation, which has globally seen a 10 percent
increase during the past five years [compound annual growth Water is sharing the red carpet experience in store with
rate] (CAGR 2013-2017), Innova states. retailers and consumers nationwide.”

28 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

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 Packaging
A revolutionary
approach to packaging
Shrink, stretch labels TODAY’S CONSUMERS ARE BLESSED WITH AN EVER-GROWING CHOICE OF
continue to penetrate beverage solutions. As these beverage options proliferate, so do the packaging
options. Among the options, shrink and stretch labeling materials are “stretching”
beverage market the creativity brand owners can utilize for packaging.
“Shrink sleeves in the beverage market continue
to be a strong packaging solution for our customers,”
says Kimberly Flynn, marketing manager for Hammer
Packaging, Henrietta, N.Y. “The beverage market
in particular is extremely competitive, so to draw
consumers to your product on a crowded shelf, you
really rely heavily on the stopping power of your
package decoration. The introduction of shrink sleeves
with a 360-degree canvas revolutionized the way
packages are designed and we’ve only seen that trend
continue to grow and evolve over time.”
Gwen Chapdelaine, marketing director for Elk Grove,
Ill.-based Fort Dearborn Co., highlights that the visual
and branding appeal that shrink and stretch sleeves
provide have helped the labeling materials become
one of the fastest growing in the label market. Within
beverage, Chapdelaine says one of the key contributors
to shrink- and stretch-sleeve utilization is the growing
number of new products entering the market.
“Shrink and stretch sleeves help beverages
differentiate themselves on shelf by combining shape
and color for 360-degree, eye-catching beverage
packages,” she says. “This combination creates product
distinction and visual appeal not achievable with other
label formats. The sleeves can also incorporate tamper
evidence for product safety.
“Consumers are increasingly demanding
transparency from the products they purchase,”
Chapdelaine continues. “Shrink and stretch sleeves can
provide the consumer with transparency by using clear
windows on portions of the label so that consumers can
view the contents of the product in a clear container.”
MAKING THE INVESTMENT
When deciding on the type of labeling materials to use,
beverage-makers are tasked with considering a number
of factors. Although shrink and stretch sleeves might
come with a higher price tag, suppliers note that the
benefits make it worth the investment.
“Shrink sleeves are about 25 percent more expensive
than pressure-sensitive labels generally speaking,”
says Mark Hill, vice president and assistant director of
research and development (R&D) for INX International
Ink Co., Schaumburg, Ill. “Sleeves can offer nearly
150 percent more real estate for brands to tell their story
or communicate regulatory information. Pressure-
>>
By combining bottle shape, color and a sensitive labels are usually easier to render and the
360-degree canvas, shrink and stretch sleeves application is simpler compared to shrink sleeve.
help beverages differentiate themselves on the
shelf, Fort Dearborn Co.’s Gwen Chapdelaine Film used for pressure-sensitive labels are typically
says. (Image courtesy of QKC LLC) polypropylene and are a relatively lower cost than
30 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
PETG used in shrink sleeves.
“Product run size may dictate the printing method
more so than whether it’s pressure-sensitive or shrink,”
he continues. “We see shrink sleeves printed digitally,
offset, flexographic and gravure, and cost increases in
that order. I feel people view products in shrink sleeve
as more desirable or valued higher than a competing
product in a common label.”
Neal Konstantin, president of PDC International,
Norwalk, Conn., also highlights the value that beverage-
makers can attain when using shrink sleeves. “Shrink
labels have the best return on investment in terms of
brand impact by cost,” he says. “The total package
coverage and form-fitting graphics are second to none.”
Beyond value, Justin Slarks, director of marketing for
Little Rock, Ark.-based Sleeve Seal, adds that stretch
and shrink sleeves hold up across a rugged distribution
process while offering a premium look.
“Cost per impression, durability of the labels,
recyclability and the ability to incorporate a tamper-
evident seal are all factors but the graphic possibilities
are really what is the most appealing to manufacturers,”
he says. “We are seeing some great looking labels in
the market that are an extension of what designers are
looking for in the ‘look’ of the product.”
EMBRACING THE MOVEMENT
For the beverage market, nearly all categories are
seeing brands that utilize shrink or stretch labels;
however, suppliers note that some markets are more
likely than others.
“We see a growing trend with performance and
fitness beverages (protein shakes, etc.), as this market is
becoming increasingly competitive,” Hammer’s Flynn
says. “We’ve also seen an increase in shrink sleeves for
aluminum cans — beer, sparkling beverages, etc. It’s
a great look, especially when you can incorporate the
metallic shine of the can itself with various coatings and
varnishes to give it that extra pop.”
Fort Dearborn’s Chapdelaine highlights the alcohol
categories that have embraced the labeling material
trend. “We’ve also seen more spirits products are being
introduced in sleeves and more can beverages are now
utilizing sleeves,” she says. “In the craft beer market as
well as other beverage segments, shrink sleeves are being
used as an economical alternative to pre-printed cans.
The sleeves offer volume and versioning versatility.”
INX International’s Hill adds that he’s seen
usage of shrink and stretch sleeves within dairy
and non-dairy alternative drinks as well as juices.
 By Jessica Jacobsen

“There seems to be more use in the and how the label will distort is essential reproduce with precision. the best film solution. Our internal lab
convenience sizes,” he says. in building the graphic. Hammer “Lastly, film selection to match the will confirm film selections and shrink
Beyond beverage categories, Packaging’s pre-press team works one- container is critical,” Flynn continues. recipes before testing at a customer
suppliers also are taking notice of on-one with our customers to help build “Hammer has a dedicated technical site.”
the size of the companies and brands the files and distort the graphics so they engineering group to help determine continued on page 32
employing shrink and stretch labels.
“It is the perfect technology to
infuse new life into an established
brand, as well as the ideal platform
for differentiating new products from
‘also-rans’ in the category,” PDC’s
Konstantin says.
Sleeve Seal’s Slarks also notes that
established and emerging brands are
using shrink and stretch labels, but in
different capacities. “Established brands
are expanding the use of shrink labels
in their facilities and buying new, faster
applicators while the emerging brands
are looking to co-packer’s equipment to
apply shrink labels until they have their
own production,” he says.
“The benefits of shrink labels
continue to be of value to both
established and emerging brands,”
Slarks continues. “In fact, the
established brands set the bar for good-
looking products and I think that the
emerging brands feel some sense of
having to utilize shrink labels to keep
up with the Joneses.”
Although more brand owners in
the beverage market are opting for
shrink and stretch sleeves for their
labeling needs, suppliers emphasize
the importance of doing one’s due
diligence when utilizing them.
“It is critical to get a clear
understanding on the substrate on
which the label is printed,” PDC’s
Konstantin says. “Each film, and it can
vary by vendor, has a unique ‘shrink
curve,’ which must be maintained to
get consistent results over time. Buying
the same label ‘type’ from a different
converter isn’t enough. The base film
has specific properties that need to be
understood and monitored.
“In regards to equipment, total cost
of ownership, including cutting blade
life, need to be taken into account,” he
continues. “Certain machines can go
months between blade changes, while
others last only a few days.”
Hammer’s Flynn notes that beverage-
makers must take into account
application equipment, container shape
and film type when opting for shrink- or
stretch-sleeve label materials.
“Having the right application
equipment is essential to ensuring
that shrink sleeves fit nicely on the
container and that the graphics display
as intended,” she explains. “Also,
understanding your container shape

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 31

 Packaging
continued from page 31
Because of the extra steps involved with shrink- and
stretch-sleeve labels, Fort Dearborn’s Chapdelaine
encourages its customers to involve the label supplier at
the onset when considering these materials.
“We encourage our customers to get us involved
upfront on a project to ensure success,” she says. “With
shrink sleeves especially, it’s critical to choose the
right material for the container and to take this into
consideration during the container selection process.
Shrink-sleeve labels also often need to include distortion
of the graphics in order for the printed product to appear
correctly once shrunk onto the container.”
A GREEN MOVEMENT
The marketing value that shrink and stretch labels can
provide has been recognized by many in the packaging
industry. However, some have raised concerns about
the environmental impact that the labeling materials
could have compared with other options. To address
these concerns, suppliers are searching for the right
sustainability solution.
“Sustainability is a driving force in the development
of new material types and gauges,” PDC’s Konstantin
says. “Shrink tunnels need to be precise enough to
compensate for lightweight, empty containers that can
deform if excessive heat is applied. Stretch labels have
the added benefit of not requiring heat at all.”
Hammer’s Flynn details the efforts that the label
supplier is doing to address sustainability for its
customers.
>>
says. “Hammer Packaging is committed to finding
and improving sustainable shrink-sleeve solutions
that reduce packaging’s carbon footprint without
compromising quality and the functional integrity
of the label. Working closely with our film suppliers,
we’ve made some great progress in this area and look
forward to the future of sustainable packaging.”
Fort Dearborn’s Chapdelaine expects that
sustainability will be part of the future for shrink and
stretch sleeves as suppliers continue to downgauge
materials and interest in eco-friendly materials continues
to grow. “Fort Dearborn offers thin gauge film label
options as well as floatable films that meet APR
recyclable guidelines for PET containers,” she says.
Sleeve Seal’s Slarks adds that downguaging will
open up shrink and stretch sleeves to more beverage-
makers. “Lightweighting is a trend furthering the cost
per impression benefits of shrink labels and will continue
to expand in the market as other labeler manufacturers
develop technologies to apply thin films at speed,” he says.
No matter what the draw is, many suppliers are in
agreement that the future looks bright for the shrink-
and stretch-sleeve label market.
“I think we will continue to see growth,” INX
International’s Hill says. “Smaller brand products
are seeing some advantages of printing capabilities
compared to other types of labels because of the
premium graphics and 360-degree coverage. I think we
will see more of our customer base get involved in the
market in the coming years because it is easy to tailor

Hammer Packaging utilizes a web offset press

“We’re seeing more options for recyclability brands based on region, culture, unique geographic
for most of its high-volume shrink-sleeve products,
Kimberly Flynn says. (Image courtesy of Hammer emerging from our suppliers, like de-seaming flavors and container shapes and sizes. We will see
Packaging) solutions, floatable films and recyclable films,” she this market grow.” BI

PACKAGING NEWS
CONSOLIDATED BRANDING
Copper Fox Distillery launched new branding and packaging for the distillery’s
existing products and new limited-edition releases. “The new packaging
and label design better organizes our current product portfolio, better
communicates our rich brand story at the shelf, and helps cut down on
confusion as it didn’t seem that people understood our Copper Fox Rye and
Wasmund’s Single Malt were from the same distillery,” said Rick Wasmund,
founder and master distiller at Copper Fox Distillery, in statement. Current
fans familiar with Copper Fox products no longer will see Wasmund’s on the
Original Single Malt Whisky label. “Although the label has changed, our
‘original’ spirits are the same,” Wasmund added. “This consolidation under
the Copper Fox brand reflects our respect for the history and culture of whisky,
our commitment to malting our own locally grown barley, and our passion
for innovation.” The same branding has been applied to the craft distillery’s
newest offering: Copper Fox SASSY Rye, a single malt distilled with 100
percent Virginia rye that is floor malted and smoked with Virginia sassafras
wood then double pot stilled, aged with a progressive series of new and used
Applewood and oak chips inside used bourbon barrels, and finished in a
second used bourbon barrel, the company says.
NOT YOUR TYPICAL JUICE
For juice-loving customers, 7-Eleven is back
with new varieties of its 7-Select GO!Smart
organic cold-pressed juice, but this time,
they are available in 100 percent single
juice varieties. The new 7-Select GO!Smart
100 percent fruit juices feature unusual
varieties that aren’t typically found in every
grocery and convenience store, the company
says. The lineup is available in the following
three varieties: Pomegranate, which contains
2.5 pomegranates in each bottle and is cold-pressed, organic and only sourced
from pink pomegranates; Melon, a honeydew melon variety that is a good source
of vitamins A, B and C; and Blackberry, which contains the juice of 165 Dewberry
blackberries in each bottle. “Today’s juice customers continue to look for more
premium options,” said Dion Miliaresis, senior product development manager
for private brand beverages for 7-Eleven, in a statement. “Each of the three new
juices will be sourced from a single organic fruit — pomegranate, blackberry or
melon. Pomegranate juice, specifically, has seen significant growth as a premium
juice in the U.S. because of its high levels of antioxidants and other nutrients.
Both blackberry and melon juices are great-tasting and found at very few other
retailers. They’re a great addition for our customers and their growing need for
healthier options.” The current 7-Select GO!Smart line of organic cold-pressed
juices are fruit and vegetable blends. Within two months of the 2018 launch,
sales of three of the original four varieties are in the Top 10 of juices sold in
the 20-ounce or smaller juice category, according to the company. The three
additional single fruit juice varieties are sold in 11.2-ounce glass bottles with a
suggested retail price of $2.99.

32 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

 Beverage

Making sense of
all the possibilities
Consumer confidence IN “THE IMPOSSIBLE DREAM” (“THE QUEST,”) THE SIGNATURE TUNE IN THE
1965 musical “Man of LaMancha,” the song extols the “mad” knight Don Quixote “to
in cognitive health,
dream the impossible dream, to fight the unbeatable foe, to bear with unbearable
energy ingredients sorrow, to run where the brave dare not go” in his quest to “reach the unreachable
drive usage upswing star.” When it comes to beverage fortification, beverage-makers have embarked on
their own quest to provide consumers with functional cognitive performance and
energy, and ingredient suppliers are ensuring brand owners have more options
that will support these dual benef its.
Several trends are influencing the use of cognitive an area which can potentially achieve both cognitive
health and energy ingredients within beverages, and energy benefits.”
experts note. These include increased awareness of
overall wellness due to the Internet and social media, DUAL BENEFITS
improved research and proof of efficacy of functional Energy ingredients and cognitive health ingredients
ingredients, and the rise of nootropics to enhance such as caffeine are recognizable attributes to increase
cognition and memory and to facilitate learning. alertness, says Brian Zapp, creative director for Applied
“The 2018 Gallup Cognitive Health Survey reported Food Sciences, Austin, Texas.
that consumers’ confidence level in food and beverages “Caffeine is one of the most common stimulants
formulated for brain health has increased from consumed worldwide and can originate from both
37 percent (2014) to 41 percent (2018),” says Elyse plant-based and synthetic sources,” Zapp explains.
Lovett, senior marketing manager at New York-based “Plant-derived foods such as coffee beans, tea leaves,
Kyowa Hakko USA. “It also reported that four out of guarana, cocoa beans, kola nuts … and holly species of
five adults are interested in trying a functional food or guayusa or yerba mate all contain caffeine.”
beverage that has a cognitive health benefit.” Although the average U.S. consumer will drink
Energy ingredients and cognitive ingredients are around 240 mg of caffeine per day, most don’t realize
not that far apart on the functionality spectrum, that not all caffeine sources are created equal in terms of
says Barbara A. Davis, vice president of medical and body response and overall effect, Zapp says.
scientific affairs at PTL Health Solutions, Morristown, “Caffeine will interact with neurotransmitters in the
N.J. “In a sense, many or even most of these brain and has been shown to have both therapeutic and
ingredients can be said to provide both functions,” she harmful effects,” Zapp explains. Consuming traditional
says. “Consider sports nutrition, where an ingredient forms of caffeine might provoke an increase in
that provides focus can help lead to a more intense epinephrine, the “fight or flight” hormone, which could
workout. Caffeine is both an energy and cognitive occur after having too many cups of coffee, he adds.
ingredient. Zapp notes that new innovation and discovery has
“ … Energy ingredients (such as caffeine) have long driven more research into the natural, plant-based
been a fixture in formulations for weight management guayusa, which is grown on holly trees in the Amazon
and sports nutrition,” she continues. “In the last 24 Rainforest. Conducted by Applied Food Sciences, a
months, we have seen cognitive ingredients begin to 2016 base study comparing guayusa leaf extract with
work their way into these formulations.” coffee and a control caffeine found that guayusa leaf
Improving the workout experience by enhancing extract stimulated a significantly lower increase in
focus and mood is the concept behind the inclusion of epinephrine compared with the control or coffee.
energy- and memory-boosting ingredients, Davis adds. As an ingredient, guayusa is estimated to be
In addition to caffeine, Matthew Phillips, vice growing at a compound annual growth rate (CAGR) of
president of business development at Irvine, Calif.- 14 percent through 2022, with 69 percent coming to
based Bioriginal, notes that nootropic ingredients North America and being used within beverages, Zapp
like coconut oil and palm kernel oil medium-chain says, citing a 2018 report from England-based Technavio.
triglycerides (MCTs) are more commonly being According to Chicago-based SPINS, natural energy
infused in ready-to-drink (RTD) coffees, teas and is growing 16.2 percent versus a 1.8 percent growth for
other beverage applications. other energy ingredients.
“Some of the science around MCTs supports the To capitalize on the natural energy movement,
>>

Studies comparing guayusa leaf extract to coffee
and a control caffeine found that the leaf extract
stimulated a lower increase in the “fight or flight”
hormone, Applied Food Sciences’ Brian Zapp says.
(Image courtesy of Applied Food Sciences)
ability to concentrate,” Phillips says. “We are seeing Applied Food Sciences offers AMATEA organic
and developing more MCT emulsion and powder guayusa extract for the busy, modern workforce and
products to capture the growing trend about the even gamers needing a “premium cognitively uplifting
benefits of MCTs, specifically coconut MCTs. This is energy experience,” Zapp says.

34 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

 By Barbara Harfmann

Building on results from its 2016 study, the
company is actively exploring the relationships
between key biomarkers and guayusa leaf extract to
help substantiate cognitive health claims. “We want
brands to have the resources that can easily inform
the consumer about how products using guayusa leaf
extract will differ from their caffeine sources,” Zapp
explains. “We are looking forward to [sharing] these
results in the upcoming future.”
Noting that caffeine can taste bitter, the company
offers soluble PurCal organic caffeine, which uses a
water extraction process to yield more than 95 percent
caffeine with a more neutral flavor profile, Zapp adds.
THE BRAIN GAME
Second to heart disease, cognition issues are top of
mind among U.S. adults. Citing data from the Natural
Marketing Institute, Holly McHugh, marketing
associate for Niles, Ill.-based Imbibe, notes the
importance of cognitive health has risen sharply,
growing from 61 percent in 2005 to 74 percent in 2017.
“Cognitive health beverages are an emerging
category that has a lot of potential,” McHugh says. “In
addition to giving consumers a boost to help with day-
improve energy, McHugh says.
Mountain Dew Amp Game Fuel, a brand of
Purchase, N.Y.-based PepsiCo Inc., is set to launch
nationally this year, but pro gamers got a sneak peak
of the beverage during the Call of Duty World League
competition in Las Vegas this past December.
The sparkling beverage contains Suntheanine, an
ingredient manufactured by Minneapolis-based Taiyo
International Inc., which has been shown to improve
focus, attention and mental clarity, says Derek Timm,
technical sales director. “It also has a relaxing benefit
that you can feel within 20 minutes after consuming,”
he says. The ingredient also is GRAS, non-GMO, kosher
and gluten free, he adds.
To keep up with consumer demand, more ingredient
suppliers are including cognitive health ingredients
as part of their portfolios. For example, Kyowa Hakko
USA offers its scientifically proven Cognizn citicoline
that supports mental energy without the associated
jitters of caffeine, Lovett says. The ingredient is stable,
soluble, tasteless, GRAS and works well in beverage
applications, she adds.
City of Industry, Calif.-based AIDP Inc. offers its
flagship Magtein, a proprietary magnesium l-threonate

to-day productivity, they’re suggested to help maintain
or improve cognitive function over time.”
In the market, Synapse and FocusAid are among the
products that might aid with cognitive function and
that not only slows down the cognitive effects of aging,
but actually reverses the process, says Lauren Clardy,
vice president of branded ingredients.
“Magnesium is an essential cofactor for over 300
continued on page 36
>>
Available in six flavors, Kicktail Energy Mixers
are premium, all-natural cocktail mixers with
“energy you can feel” and just the right amount
of caffeine, taurine and B-group vitamins, the
company says. (Image courtesy of Kicktail Energy
Mixers)

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bevindustry.com | FEBRUARY 2019 | Beverage Industry | 35

 Beverage
continued from page 35
systems that regulate biochemical
reactions in the body, including brain
and nervous system function,” Clardy
explains. “However, in order to be
effective for brain health, it has to
be able to actually reach the brain.
… Magtein is the only magnesium
compound that has been shown to
effectively raise the brain’s magnesium
levels.”
In a randomized, double-blind,
placebo-controlled trial, Magtein
supplementation for 12 weeks resulted
in “significant improvements” in
memory, stress and anxiety in middle-
aged and older adults, with a 10 percent
improvement in Trail Making Test Part
B (TMT-B), a clinical assessment that
evaluates attention, motor speed and
impulsivity, Clardy adds.

MEASURING PERFORMANCE
Engaged in both the cognitive health
and energy arena, PLT offers a range
of science-backed ingredients. These
include the patented Zembrin Sceletium
tortuosum and Synapsa Natural
Memory Support, which represent two
distinct needs in the cognitive health
market, Davis says.
Marketed to nutraceutical and
functional food and beverage-makers,
Zembrin experientially supports
calmness, enhanced mood and
improved cognitive function. PLT
Health Solutions, in partnership with
HG&H Pharmaceuticals Pty. Ltd.,
studied the effects of acute short-term
supplementation using Magnetic
Resonance Imaging and Zembrin to
study the “threat circuity” of the human

WHEY
brain on 16 healthy college students. “[It]
showed that 25 mg of Zembrin reduced
anxiety-related activity of the amygdala
and its associated anxiety circuity within

PROTEIN
two hours of administration.”
In 2017, PLT released a line of zümXR
targeted release caffeine ingredients in
three versions: extended release, delayed
release and liquid stable extended.
“This technology will allow beverage
formulators the ability to design custom
Say “Hi” to protein for busy lives energy profiles into their products,
delivering predictable performance for
the consumer,” Davis says.
Food is fuel for people constantly on the go. Your customers don’t want to sacrifice For instance, the zümXR extended
release caffeine is designed to provide
healthy choices for convenience. Offer them foods and beverages fortified with whey
long-term energy without the
protein for lasting energy. Our applications experts will work with you to create unpleasant effects associated with many
caffeine products, she adds.
products your consumers want.
To help meet the real world needs
of consumers interested in peak
Hilmar Ingredients whey protein helps: performance, mental clarity, health and
wellness and quality of life, the release
1. Curb hunger of new products for cognitive health
and energy support will continue to
2. Maintain lean muscle require investment and creativity.
3. Enhance exercise recovery In fact, the cognitive health market
experienced sales of about $1.4 billion
in 2015, Davis says.
Developing trust and credibility with
consumers and offering science-backed
products will be key to future success.
© 2019 HILMAR INGREDIENTS

“The investment will involve creating

strong, high quality, transparent
ingredients and solid science to support
them,” PLT’s Davis says. “… There is
Whey Protein Lactose  Milk Powder an educational opportunity and need
to power brain function and physical
Learn more at hilmaringredients.com or give us a call: 209.667.6076 prowess.” BI

36 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

Think.
Focus.
Citicoline.
Add brain health support to your next functional beverage
Cognizin® Citicoline delivers on the brain energy needs of modern
consumers. Whether they are going from work to workout – give them
the re-energizing benefits of clinically proven Cognizin.

Learn more at Kyowa-USA.com

* These statements have not been evaluated by the Food and Drug Administration.
This product is not intended to diagnose, treat, cure or prevent any disease.

Cognizin® is a registered trademark of KYOWA HAKKO BIO CO., LTD.

Copyright © 2019 KYOWA HAKKO U.S.A., INC. All Rights Reserved.

Pure | Patented | Water-Soluble | Stable | GRAS | Non-GMO | Vegetarian | Kosher

 Beverage
R&D NEWS
Commerce, Calif.-based Gold Coast Ingredients’
(GCI) new S.M.A.R.T. Center has opened.
Located in Santa Fe Springs, Calif., Gold
Coast has positioned sales, marketing,
applications, research and technology under
one roof in order to maximize its creative
efforts, it says. With more than 10 new
laboratories, GCI’s S.M.A.R.T. Center focuses
on developing custom flavors and colors,
as well as extracts, flavor modifiers, and
ingredient enhancers, it adds.
TIC Gums, White Marsh, Md., announced
that six of its pectin products now carry the
Non-GMO Project Verified seal. According to
the Non-GMO Project website, “the Non-
GMO Project Verified seal gives shoppers
the assurance that a product has completed
a comprehensive third-party verification
for compliance with the Non-GMO Project
Standard.”
Chicago-based Archer Daniels Midland Company
(ADM) announced that it has reached an
agreement to acquire Florida Chemical Co. (FCC),
a division of Flotek Industries. Based in Winter
Haven, Fla., FCC specializes in citrus-based
flavors and fragrances, and is one of the
Used in 100% Juice Blends lSSTranslucent Color lS Neutral Flavor Sl Minimal Texture l No Added Sugars
To see our full line of products, visit ititropicals.com today.
38 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
world’s largest providers of citrus oils and
ingredients, it says. FCC’s citrus expertize,
together with ADM’s combined leadership in
research and development, will allow ADM to
strategically accelerate and expand its diverse
offerings in natural flavors and high-value
products and solutions to a wider customer
base, it adds.
Gelymar, Providencia, Santiago, Chile,
appointed AIDP Inc., City of Industry, Calif., as
its exclusive North American distributor for
its carrageenan product portfolio. Gelymar’s
carrageenan products are sustainably sourced
from cold-water seaweed, and are vegan and
gluten free, it says. The ingredient is used
in food manufacturing to improve texture,
stability, mouthfeel, suspension, smoothness,
thickening and gelling.
New York-based International Flavors & Fragrances
Inc. (IFF) reports that it has established an
industry-exclusive collaboration with Aryballe,
a pioneer in digital olfaction technology based
in Grenoble, France, to refine and further
develop the flavor and fragrance capabilities
and applications of Aryballe’s technology in
portable, universal odor detection sensors.
What’s Possible with
benefits, while providing 100% juice
CREATOR’S BRIEFS
A SWEET, LOWER-CALORIE TASTE
Ingredion Inc. in partnership with Itami City, Japan-
based Matsutani Chemical Industry Co. Ltd, introduced
ASTRAEA Allulose. The on-trend sweetener is 70 percent
as sweet as sugar and helps manufacturers reduce
sucrose in their recipes and develop reduced-calorie food
and beverages to meet growing consumer demand, the
companies say. Matsutani will manufacture the ingredient
in Mexico and market it across the Americas. Available in
2019, ASTRAEA Allulose will enable food and beverage
manufacturers to reduce calories from sucrose and other
caloric sweeteners in a wide range of products, including
beverages, dairy, bakery and confectionery items, the
company says. “Reducing sucrose is an emerging global
trend and can be a challenge for manufacturers, who are
looking to match the sweet taste of sugar while achieving
the same functional benefits in their products,” said
Tony DeLio, senior vice president of corporate strategy
and chief innovation officer at Ingredion, in a statement.
“By combining our manufacturing network and global
footprint alongside Matsutani’s pioneering work in rare
sugars, we will bring exciting opportunities grounded in
innovation to meet the needs of the evolving food industry
ahead of sugar labeling changes.” The partnership also
supports Ingredion’s goal to grow its specialties business
to $2 billion in annual sales by 2022.
■ Ingredion Inc., 5 Westbrook Corporate Center, Westchester, Ill.
60154; 800/713-0208; ingredion.com.
Coconut Water
Coconut water adds nutritional
blends with less sugar than juice
blends without coconut water.
 ENERGY
TA R G E T E D R E L E A S E C A F F E I N E

GET CONTROL
OF YOUR ENERGY
WITH CLEAN, GREEN
COFFEE BEAN CAFFEINE
zümXR® Targeted Release Caffeine Advantages:
• Green Coffee Bean and Anhydrous available
• Tightly controlled GRAS coating materials
• Specified payloads
• Pharma modeling techniques employed
• Tightly controlled dissolution specs
• High physical quality ingredients
• Predictable performance
• Ability to design your energy profile

Pharmaceutical modeling technology allows you

to design and deliver a targeted energy profile
Developed by leading biochemists, zümXR Targeted Release Caffeine represents
new benchmarks in engineered release for supplements, functional foods and
energy drinks. Studies have shown that zümXR is a major leap forward from
conventional caffeine coating technologies. With the zümXR approach, we can
help you design an energy profile to target your customer and application –
and deliver an experience that will keep them coming back for more.
With our new Green Coffee Bean source of caffeine, you’ll have an additional
story that will resonate with consumers who prefer nature-based ingredients.

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The caffeine is extracted via a supercritical CO2 process – without chemical
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Ask Us about our New PK Study

THESE STATEMENTS HAVE NOT BEEN EVALUATED BY THE FOOD AND DRUG ADMINISTRATION.
THIS PRODUCT IS NOT INTENDED TO DIAGNOSE, TREAT, CURE, OR PREVENT ANY DISEASE.

Contact PLT Health Solutions for samples and more information.

+1.844.PLTHEALTH • www.PLTHealth.com
 Ingredient Spotlight
A fruitful influence
Domestic, exotic THE “HEALTHY HALO” MANTRA CERTAINLY HAS GAINED TRACTION WITHIN
the beverage marketplace in recent years. As consumers continue to look for
fruits provide
functional beverages that deliver health benefits and a clean label, they also seek
health benefits out ingredients that deliver on taste. Beverage-makers are recognizing these
trends and incorporating domestic and exotic fruits in their formulations to give
consumers healthy benefits along with great taste.
Familiar fruits like blueberries, pomegranates
and grapes commonly are seen on store shelves,
while exotic fruits like dragon fruit, passionfruit and
citrus varietals are becoming more popular beverage
ingredients.
Fruit juices have a very well-known health halo
and consumers continuously look to fruit juices for
health benefits like immunity, vitamin content and
overall well-being, notes Kristen Farr, marketing and
innovation manager at iTi Tropicals, Lawrenceville, N.J.
“The beverage category is getting more and more
complex with the super-premium juice (SPJ) category
continuing to grow and new players coming into
the space,” says Adam Cooper, vice president of
marketing at Los Angeles-based The Wonderful Co.
“Consumers are looking to try beverages that deliver
functional benefits but are still looking for clean labels
and great taste.”
Cooper touts the health and flavor benefits of
the company’s 100 percent pomegranate juice. The
pomegranate delivers on health factors because of its
antioxidant content, without sacrificing flavor, he says.
Tom Payne, industry consultant to the U.S. Highbush
Blueberry Council, San Mateo, Calif., also points to
the healthy draw of consuming fruit beverages and
blueberry beverages in particular. “The most important
and influential trend is undoubtedly the current trend
for healthy eating, which is [one] reason that blueberry
beverage development has been enjoying a particular
surge in popularity,” he says.
“Blueberries and fruit in general have a positive image
among consumers who consider fruit an almost-guiltless
‘right choice,’” he continues. “With their fresh burst in
the mouth flavor and healthy profile, blueberries give
products lush taste, broad appeal and clean labels.”
Beverage-makers are utilizing diverse fruits to
differentiate their products on store shelves, experts
note. “Increasingly, the provenance of domestic fruit
is adding a new dimension to beverages, with varietal
differentiation now a popular strategy [to] stand out,”
says Greg May, business development manager at
Concord, Mass.-based Welch’s Global Ingredients
Group. “Blood oranges, Meyer lemons and of course,
Concord and Niagara grapes can all be seen on-shelf in
the fruit beverage category.”
May explains how the origin of fruit ingredients
>>
Blueberries are making the scene in a wide variety resonates with consumers. “This level of extra detail
of juices, teas, sports drinks, smoothies and other about the origin of the beverage appeals in particular
beverages that make the claim for antioxidants, Tom
Payne says. (Image courtesy of the U.S. Highbush to conscientious shoppers with sufficient disposable
Blueberry Council) income to trade up from commodity options,” he says.
40 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
Additionally, the rise of fermented and vinegar-base
beverages like kombucha can utilize different domestic
and exotic fruits. “Sour flavors are on trend right now,
as demonstrated by the rise of kombucha and vinegar
drinks,” May explains. “Key to growth is to achieve
a balance between creating something that delivers
a point of difference, but is also palatable enough to
sustain repeat purchases.
“Harnessing fruit juices in these formulations can be
an effective way to hit that sweet spot,” he continues.
“To graduate beyond the novelty factor and maintain
their popularity in the long term, kombucha and
vinegar drinks must deliver on taste, and the addition
of fruit juices to a formulation can help achieve this.”
THE SWEET SPOT
A wide array of domestic and exotic fruits constantly
are being used in the beverage market. Domestically,
utilizing blueberries in beverages remains quite
popular. “Blueberries are making the scene in a realm
of juices, teas, sports drinks, smoothies and other
beverages that make the claim for antioxidants,” the
Highbush Council’s Payne says.
“Blueberries help ease consumers into an
adventurous flavor profile because they work well
in flavor combinations with spices, botanicals, floral,
citrus and herbaceous; they complement and enhance
as well as balance flavors,” he adds.
Although domestic fruits can be a way to “play
it safe,” Welch’s May warns that it can be difficult
for new fruits to enter the market as it can be quite
static in terms of trends. “We're not seeing [much]
else break into the space besides these ‘big’ four —
orange, apple, grape and cranberry,” he says.
On the other hand, the exotic fruit market is
gaining some new players. “In the exotic juices
category, we’ve observed new launches that include
dragon fruit (pitaya), yuzu and varietal citrus,”
May explains. “These niche fruits offer a way of
creating excitement through novel blends and limited
editions. But many exotic fruits arrive with a bang
and then disappear from the shelves, so it’s hard to
say which of them we will still be talking about in
five years’ time.”
iTi Tropical’s Farr also highlights the emergence of
dragon fruit. “Dragon fruit is showing momentum,
not only does it offer an exciting name from a
marketing standpoint, its characteristic natural neon
pink color is hard to beat,” she says.
Additionally, increased awareness about

passionfruit is helping the exotic fruit be incorporated
into more beverage formulations. “Passionfruit, while
continuing to gain popularity, is still making its way
as the main flavor in beverages,” Farr explains. “It
has a sweet yet tart flavor that pairs nicely with more
familiar fruits like apple and grape.”
Farr also points to the persistent popularity
of pineapple and mango and their ability to
complement other exotic flavors. “Well-established
tropical flavors like pineapple and mango are often
used as the main flavor while newcomers like guava
and passionfruit are often used as complementary to
more recognizable flavors,” she says.
Historically, pomegranate has been viewed as
an exotic fruit and continues to be one of the most
popular for consumers looking to experiment with
new flavors, The Wonderful Co.’s Cooper notes.
Pomegranate juice resonates well with the health-
conscious consumer as it contains potential benefits
including improved sports performance, memory
and cognition, gut health and more, he adds.
RELIABLE SOURCES
Before formulating with domestic and exotic
fruits, beverage-makers should be aware of several
associated challenges such as cost and sourcing.
Some domestic fruits are expensive, and commodities
like orange, apple, grape and pear aren’t necessarily
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domestic, as they also can be imported, iTi Tropical’s
Farr notes. However, issues beyond price also can
emerge when working with exotic fruits. “Overall
cost is one aspect,” she says. “… But quality, safety
and making a product consumers will buy and love
are the most important.
“Using tropical fruit juices in combination with
commoditized fruits, allow for products with added
value and benefits,” she continues.
Welch’s May also notes the challenges of using exotic
fruits within beverages. “With exotic fruits, creating
new and interesting flavor concepts is easy, but the
reality isn’t always as straightforward,” he says. “For
one thing, obtaining a secure, reliable supply of new
raw materials takes time to develop, and there also has
to be a market for that fruit.”
The healthy-halo trend in what people are consuming
will continue to drive the fruit juice category, experts
say. “In the future, consumers will continue to demand
transparency across the supply chains,” May says.
“Reputable, high-quality suppliers of fruit ingredients
are vital to juice beverage manufacturers’ ability to
deliver this expectation.”
iTi Tropical’s Farr notes how the demand for new and
unique flavor combinations also will drive the category.
“Caribbean flavors are becoming popular and more
>>
The pomegranate delivers on numerous health
mainstream like coconut, guava, mango, passionfruit factors because of its antioxidant content,
and papaya,” she says. BI without sacrificing flavor, Adam Cooper says.
(Image courtesy of The Wonderful Co.)
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bevindustry.com | FEBRUARY 2019 | Beverage Industry | 41

 Distribution
The road to the future
Green alternatives WHEN IT COMES TO EXTREMELY LOW OR ZERO EMISSIONS, ELECTRIC VEHICLES
becoming have been dominating the conversation, but their deployment in the beverage
delivery space remains relatively low. As all-electric technology steadily expands
increasingly popular in the market during the next several years, continuous opportunities also will
emerge for other green fuel types.
The market already has seen a number of operations
integrate natural gas into their fleets, for instance, but
we likely can expect propane to become a bigger part
of the conversation — especially if recent news from
Roush CleanTech is any indication.
Roush, which designs, engineers, manufactures and
installs propane fuel systems, has developed an ultra-
low nitrogen oxide (NOx) engine that can operate on
non-fossil-fuel renewable propane — running on
100 percent renewable raw materials such as waste,
residue and sustainably produced vegetable oils.
Renewable propane is an evolution from petroleum-
based propane autogas, which is itself, a viable option
for fleets looking for cleaner fuel options. During the
past three or four years, the propane conversation has
shifted away from light-duty to medium-duty, all the
way up to Class 7.
“Based on customer discussions, they’re saying, ‘we’re
done with diesel,’” says Todd Mouw, president of Roush
CleanTech. “Diesel is not the sweet spot for them.”
Fleets might be moving away from diesel, but
the fuel isn’t going away any time soon, experts say.
Recent research from business information provider
IHS Markit found that 60 percent of new medium- and
heavy-duty commercial vehicles sold in the United
States will be fueled by diesel, including diesel hybrids,
in 2040, down from 80 percent today.
Diesel is expected to maintain its dominance during
the next two decades, due mainly to increases in fuel
economy that will keep it competitive with alternative
powertrains, IHS Markit’s “Reinventing the Truck”
study says. But as alternative technologies advance,
they’ll continue to steadily grow, gradually cutting into
diesel’s share.
Among those is battery-electric vehicle technology,
which IHS Markit projects will enjoy a
15 percent compound annual growth rate in
the United States between now and 2040. This
is especially true as adoption rates increase for
medium-duty trucks, especially for Class 4 and
5 trucks in urban delivery environments.
Last month, Peterbilt unveiled its latest
electric vehicle, the 220EV, joining its previously
announced Model 520EV and Model 579EV,
which are all-electric offerings.
The 220EV is Peterbilt’s first option in the
medium-duty space. However, the company
says the full extent of electric vehicles’ long-
term prospects remains to be seen. “There are
still many things being evaluated to determine
the best business case for electric vehicles,”
The market recently has seen an increasing number of
>>
beverage fleets integrate natural gas into their operations. says Nicholas Smith, spokesperson for Peterbilt
(Image courtesy of Roush CleanTech /Jeff Cioletti) parent PACCAR. “That being said, Peterbilt does
42 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
By Jeff Cioletti
see the urban pick-up and delivery application that
beverage companies operate in being one of the first
and most viable applications.
Smith also expects the distribution market to be
quite receptive to electric technology, as it historically
has been receptive toward alternative powertrain
options. In recent years, the adoption of liquid natural
gas (LNG) and compressed natural gas (CNG) has
been a prime example of that. “Many companies in
that market have been very interested in testing and
evaluating the electric powertrains that Peterbilt is
developing,” he says.
Roush’s Mouw highlights that there’s a bright future
for electric vehicle technology, but also asserts that
renewable propane will have a seat at that table as well
— particularly as states follow California’s lead and
pursue near-zero emissions policies.
The Ford 6.8L V10 3V engine is equipped with a
Roush CleanTech fuel system to 0.02 grams per brake
horsepower-hour, which, according to Roush, is
90 percent cleaner than the current EPA standard.
“In California’s mind, that’s [electric vehicle] only,”
Mouw says. “But once you get to 0.02, you’re in that
category. There’s been a heavy investment in that
innovation to keep propane on par and in the same
conversation with electric vehicles.”
In terms of fueling infrastructure, propane is a
“shovel-ready” solution, Mouw explains. “Roush
customers have said they needed another solution that
was ‘shovel-ready,’” he says. “Propane plays very well
when you consider beverage fleet needs like lower
costs and lower emissions.”
The accessibility of propane’s infrastructure makes
the fuel an attractive solution for many delivery fleets,
Mouw notes. “Most times, propane companies will
work with beverage fleets — in exchange for a contract
they’ll often put it in [tanks] for low to no cost,” he says.
As for electric vehicles, the charging infrastructure
is one of the biggest questions to be answered
when it comes to the widespread production and
deployment of the vehicles, Peterbilt’s Smith says. “The
demonstration vehicles that Peterbilt is producing and
testing this year are going to private fleets that will have
charging stations installed at the facilities that will serve
as home bases for these trucks,” he says. “This is part of
the reason Peterbilt sees urban pick-up and delivery as
one of the early adopters of electric vehicles.”
Whatever clean-and-green technology ultimately
ends up powering most of the vehicles on the road
three or so decades from now, the shift isn’t going to
happen overnight. A great deal of experimentation and
a healthy dose of “wait-and-see” will need to happen in
the meantime. BI
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 Warehouse By Barbara Harfmann

A heightened demand
Storage systems, IN THE 2018 MOVIE “MARY POPPINS RETURNS,” THE CATCHY NEW TUNE
“Nowhere to Go But Up” proclaims that “as you fly over town, it gets harder
ASRS address
to frown. And we’ll all hit the heights if we never look down.” To keep up with
space issues burgeoning stock, warehouse experts are “looking up” and strategizing storage
solutions that deal with decreased high-moving SKUs and the challenges of “long
tail” slow-moving products.
In addition to the proliferation of SKUs, the volumes
being delivered to customers have drastically changed,
says Darrell Dunham, president of Cirrus Tech Inc.,
Kearney, Neb. “In most cases, you can’t just order 15
of a slow-moving SKU at a time. You typically have to
order a full pallet,” Dunham explains. “If you only need
15 of the product for the month, but you get a pallet of
75, that pallet is now needing to be stored, in most cases
very inefficiently from how much space it takes to store.
You can’t stack anything on top of it, you need to store
it for five months and take it down and to replenish the
pick location five to 10 times over the life of that pallet.
“This is where an [automated storage retrieval system]
(ASRS) comes in really handy, especially if you can
replenish your highest volume SKUs,” he continues.
“Consolidating these SKUs frees up 50 percent or more
space in your existing warehouse, giving you the room
to more efficiently ‘deal’ with the long tail. It’s a triple
win with the density of storage freeing up significant
space, only touching your highest volume SKUs (60-80
percent of your volume) once and you can now more
efficiently handle your slower moving items.”
Paul Laman, vice president of food and beverage
at DMW&H, Fairfield, N.J., also notes the “long tail
of SKUs,” which often result in much lower storage
density. “Warehouses are regularly getting taller
and are being equipped with higher density storage
systems, such as ASRS, pushback racking and tall
narrow aisle racking.
“A decade ago, the high-volume SKUs were
basically stored in bulk by stacking two to four pallets
on the floor, [while] slower moving SKUs were stored
in standard storage racking,” he continues. “Today,
many warehouses can get twice as many cases stored
per square foot using the latest in storage strategy
optimization.”
OPTIMAL ORGANIZATION
To keep up with product diversity, lightweight
packaging and more, storage systems are broadening
their appeal to include shelving and carton flow.
Racking also is becoming more sophisticated,
according to Ron Hassenfratz, president and owner of
Distribution Technologies, Plano, Texas.
“To address these added items within the same cubic
feet of storage space, distributors are adding fixtures
such as shelving and carton flow to store and locate
>>
aisles to access the loads,” Hassenfratz says.
While pallet sizes have remained unchanged in
the past 50 years, pallets are an important common
denominator between production, distribution and
transportation, he adds.
Warehouse management systems (WMS) and the
Internet of Things (IoT) continues to play a pivotal role
in the functionality of beverage warehouse storage
systems, experts say.
“Software is key to any storage, picking and order
fulfillment operation,” says Tom Steininger, market
development director at Grand Rapids, Mich.-based
Dematic Corp.
When it comes to storage technologies, Steininger
cites the following as integral to today’s storage needs:
high-speed deep lane pallet storage systems, which
provide more density and ability to support shipping,
layer picking and case picking operations; storage of
individual cases to support high-speed automated case
picking; and storage of open top cases to support bottle
picking either manually or robotically.
David Schwebel, vice president of business
development and market intelligence at Swisslog
Logistics, Newport News, Va., highlights important
technology and software advancements that are
taking storage systems to the next level. These
include the following:
■ The introduction of robotic picking and palletization
solution sets.
■ Little-to-no pallet conveyor in forward picking areas
(manual and automated) supplied by long-distance
traveling automated guided vehicles (AGVs) and
autonomous mobile robots (AMRs).
■ Pallet shuttle technology improving the cubic density/
cases storage per cubic foot of ASRS operations.
GRAVITATIONAL PULL
Although it is good for beer lovers, the increased variety
of craft beers can create challenges for distributors that
need to make room for heavy, full and partial kegs such
as one-half and one-sixth kegs that weigh 165 pounds
and 60 pounds, respectively, notes Brian C. Neuwirth,
president of UNEX Manufacturing, Lakewood, N.J.
“Between space constraints, inefficiencies for pickers
and safety issues, the problem in a beer distributor’s
cooler area is anything but pint-sized,” Neuwirth says.
As a solution, UNEX offers the UNEX Keg-flow

To keep up with product diversity and lightweight
packaging, many storage systems are using
sophisticated racking, shelving and carton flow,
Distribution Technologies’ Ron Hassenfratz says.
(Image courtesy of Distribution Technologies)
these added SKUs,” he says.
Hassenfratz details how the racking system is used
to organize products in a given space. “The majority of
space is taken up by the product and by the operating
system, which has been designed using Span-Track
rails and side guards to hold as many as nine kegs
deep. The gravity flow system is powered by natural
gravitation mechanics that decrease energy usage and
continued on page 46

44 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

 Join the growing list of distributors partnering with Cirrus Tech:

Contact us today to learn how to get more space, speed

and efficiency in the same space you have now.

▶ WATCH OUR VIDEO TO SEE HOW WE DO IT Because Every Case Counts™

www.cirrustech.com | mattb@cirrustech.com | 919.608.3401

 Warehouse
>>
UNEX offers a Keg Flow System that provides
dense, multi-level keg storage to accommodate
heavy 165-pound kegs, UNEX’s Brian Neuwirth says.
(Image courtesy of UNEX Manufacturing)
46 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
continued from page 44
lower operational costs.
“Kegs, cartons or pallets are loaded into the high end
of pitched lanes, and product is dispensed from back to
front via controlled downward glide to the pick station
in an orderly flow that optimizes [first-in first-out] (FIFO)
inventory turnover and relieves congestion by separating
load and pick aisle,” Neuwirth explains. “Systems
are highly fluid, flexible and configurable, allowing
responsive adjustments to accommodate changing
product specs, applications or operational demands.”
MAXIMIZING EFFICIENCY
Given the proliferation of SKUs, today’s equipment
manufacturers offer a variety of automation technology
and storage systems to maximize efficiency and space.
For example, Swisslog offers the AcPaQ mixed case
palletizing system; the CarryStar fully automated layer
and stack picking solution; and the Vectura high-bay
warehouse pallet stacker crane.
“Beverage companies that utilize these new
advancements are able to improve their dynamic pick
zones and move forecasted SKUs closer to the output
stations to improve storage utilization,” Swisslog’s
Schwebel says.
If space is an issue in a beverage warehouse, Cirrus’
Dunham says that manufacturers have two choices:
expand or build greenfield, or put in an ASRS. “Some
picking systems can help you gain some space, not the
appreciable amount that most wholesalers are looking
for. Combining ASRS with other automated trends will
be the thing to look for in the future,” he says.
The company offers “The Crane,” its flagship ASRS
product currently in use by five beer wholesalers
with case volumes of 2 million to 10 million cases a
year, Dunham says. “Cirrus designs, configures and
customizes to each beverage distributors/suppliers
unique warehouse environment. … ASRS can help
a warehouse reclaim up to 50 percent or more space
in the same footprint. If you are willing or able to go
higher, it compounds that number.
“Technology of the ASRS should be able to gain
inches or feet as technology changes, but as far
as moving full 3,000-pound pallets is concerned,
the space savings at this point are undeniable,” he
continues. “The reality is that it is the software that
separates ASRS solutions providers and this is where
the sophistication can be improved.”
Distribution Technologies’ Hassenfratz notes that
listening to clients’ needs and presenting a variety
of solutions is important. “As a material handling
integrator, we are product neutral. … The unused
space is the cheapest warehouse space available. Before
considering the construction of new warehouse space,
the beverage distributor should acquire a material
handling expert to evaluate his current facility to make
sure the space is performing to its full potential.” BI
 REGISTER
NOW!
THE M RESORT SPA & CASINO // LAS VEGAS
The 2019 BevOps Fleet Summit will encompass a
variety of exciting elements formulated to engage and
inspire today’s beverage decision makers who are
responsible for warehousing, distribution and fleet
operations within their organization. In the summit’s
13th year, attendees will experience a high profile
keynote address, two tracks of engaging educational
sessions, the coveted Ride & Drive/Equipment Demo
held at the Las Vegas Motor Speedway, elegant
networking events and an interactive facility tour.
ATTENDEE AND SPONSOR/
EXHIBITOR REGISTRATIONS INCLUDE:
• All educational sessions
• Facility tour (includes transportation)
• Ride & Drive/Equipment Demo (includes transportation)
• Welcome Reception with Complimentary Bar and Food Stations
• Breakfast, Lunch and Breaks on Wednesday and Thursday
• Breakfast on Friday for Facility Tour Participants
• Registration Credentials
• Access to Exhibits
• Free WiFi
www
6
BENEFITS OF ATTENDING:
• Obtain a competitive advantage as you learn directly from industry leaders
on current industry challenges and trends.
• Make powerful connections and expand your industry network.
• Get behind the scenes with an in-depth and insightful tour of Southern
Glazer’s Wine & Spirits “State of the Art” distribution facility.
• Discover the newest products and services and meet with the companies
who provide them on site
• Get behind the wheel at our Ride & Drive Equipment/Demo where beverage
f leet vehicles and distribution equipment can be tested on-site at the
Las Vegas Motor Speedway
• Enjoy some relaxed networking time at the annual golf outing and exquisite
receptions where we mix business with fun!
THE M RESORT SPA & CASINO
702-797-1000
FOR THE BEST RATES,
BOOK YOUR TRAVEL NOW
& SAVE!
com
2019 AGENDA
highlights
Check out www.BevOpsFleetSummit.com
for full agenda details!

TUESDAY, MARCH 19 THURSDAY, MARCH 21

11:30 am - 5:00 pm Golf Tournament Sponsored by 7:00 am - 11:00 am Registration Open
6:00 pm - 8:00 pm Welcome Reception 7:30 am - 8:30 am Breakfast/Exhibits Open
Sponsored by
8:30 am - 9:10 am KEYNOTE ADDRESS: Classic Brands Tackle
the Modern Supply Chain
WEDNESDAY, MARCH 20 Ron Kane, Chief Supply Chain Officer, Pabst Brewing Co.
7:00 am - 5:00 pm Registration 9:00 am - 10:00 am
8:00 am - 9:00 am Breakfast/Exhibits Open General Session Panel: Safety Training &
Management on the Road and in the Warehouse
9:00 am - 10:00 am KEYNOTE ADDRESS: E-commerce & Gary Yurt, President/Chief Safety Adviser, Industrial Safety & Training Services
the Digital Distribution Frontier Brian Lundberg, Operations Manager, Atlas Distributing
Cory Rellas, CEO, Drizly Eric Joseph, V.P. of Operations, Del Papa Distributing
10:00 am - 10:30 am Break/Exhibits Open 10:00 am - 10:30 am Break/Exhibits Open
10:30 am - 11:30 am 10:30 am - 12:00 pm BREAKOUTS
General Session Panel:
Going Big: Harnessing Big Data in Fleet & Warehouse Operations 10:30 am - 11:15 am What’s on the Regulatory Horizon
Dan Betz, Executive Vice President, Operations, Andrews Distributing David Consider, Senior Safety Adviser,
Lester Jones, Chief Economist, The National Beer Wholesalers Association National Safety Council
Kris Hacker, VP of Analytics & Business Development, Columbia Distributing
From Receiving Docks to Store Shelf –
11:30 am - 12:00 pm Exhibits Open What Works, What Doesn’t Work?
12:00 pm - 1:30 pm Roundtable Luncheon/Exhibits Open Greg Ellis, President, Precision Distribution Consulting
1:30 pm - 3:00 pm BREAKOUTS
11:15 am - 12:00 pm A World-Class Vehicle Maintenance Plan
1:30 pm - 2:15 pm CDL Training, Recruitment & Retention Andrew Zak, Master Lead Technician,
Steve Golladay, Manager and Owner,
Silver Eagle Distributors
Total System Thinking Solutions
Cyber-security for Today’s Beverage Facilities When Mother Nature Intervenes: Protecting Your Supply
Steve Holtsclaw, Director of IT, Del Papa Distributing Chain in the Wake of Natural Disasters
Greg Stephens, Director of Facility Management,
2:15 pm - 3:00 pm Silver Eagle Distributors
On Autopilot: The Potential Impact of Autonomous Vehicles
Matthew Trentacosta, Automotive Advisory Services Consultant, IHS Markit 12:00 pm - 12:15 pm Buses depart to Las Vegas Motor Speedway
End to End Automation for a Smarter Warehouse for Ride & Drive/Equipment Demo
Bob Ogden, director of operations, R.H. Barringer Distributing Co.
3:00 pm - 3:30 pm Break/Exhibits Open 1:00 pm - 4:00 pm Lunch Sponsored by

3:30 pm - 5:00 pm BREAKOUTS Ride & Drive/Equipment Demo

3:30 pm - 4:15 pm All-Electric: The Future of Sustainable Fleets? 4:00 pm - 5:00 pm Return to M Resort
Susan Beardslee, Principal Analyst,
Intelligent Transportation & eFreight, ABI Research 5:00 pm Open Evening
Recruiting & Retaining for Today’s Automated Warehouse
Gary Thompson, Executive Vice President & FRIDAY, MARCH 22
General Manager, Powers Distributing
8:00 am - 9:00 am Breakfast
4:15 pm - 5:00 pm Containing Costs Amidst Rising Freight & Fuel Prices
Julio Lopez, Fleet Supervisor, Silver Eagle Distributors 9:15 am Facility Tour
Strategies to Reduce Risks & Costs When Southern Glazers Wine & Spirits
Upgrading & Expanding
Chet Willey, President, Chet Willey Associates
Julian Rayzor, Sales Manager, GG Distributing L.L.C.
5:00 pm - 6:30 pm Networking Reception/Exhibits Open

www com
 Warehouse

BevOps is Vegas bound

Annual summit
welcomes f leet, BEVERAGE INDUSTRY IS GEARING UP TO WELCOME THE ATTENDEES OF THE
13th annual BevOps Fleet Summit to fabulous Las Vegas. An event for beverage
operations experts warehousing and distribution professionals, the BevOps Fleet Summit will take
place March 19-21 at the M Resort Spa & Casino in Henderson, Nev. The three-day
conference will address the business challenges and industry trends of today’s
beverage marketplace and how operators can prepare for what’s next.
Those who attend the BevOps Fleet Summit are Sustainable Fleets?,” and “Containing Costs Amidst
able to obtain a competitive advantage by learning Rising Freight & Fuel Prices.”
directly from industry leaders about current trends For the operations tracks on March 20, the sessions
and challenges; making connections and expanding will feature “Cyber-security for Today’s Beverage
their industry network; getting hands-on experience at Facilities,” “End to End Automation for a Smarter
special live events; enjoying relaxed networking events; Warehouse,” “Recruiting & Retaining for Today’s
and discovering the newest products and services Automated Warehouse,” and “Strategies to Reduce
applicable to the industry. Risks & Costs When Upgrading & Expanding.”
For some, the conference will kick-off with a golf The next day of the conference begins at 8:30 a.m.
tournament at 11:30 a.m. on March 19. For those not with a keynote address from Ron Kane, chief supply
attending the golfing event, the conference will begin chain officer for Pabst Brewing Co. Kane will detail the
with a welcome reception slated from 6 to 8 p.m. complexities of the evolving U.S. distribution landscape
At 8 a.m. on March 20, the exhibit portion of the from the perspective of the country’s fifth-largest beer
event will open, allowing attendees to see the latest company.
solutions that support beverage warehouse and Kane’s address will immediately be followed by
distribution operations. The education portion of the a general session panel titled “Safety Training &
conference is set to begin at 9 a.m. with a keynote Management on the Road and in the Warehouse.”
address from Cory Rellas, chief executive officer of The panel will welcome Gary Yurt, president and
online alcohol-delivery provider Drizly. Rellas will chief safety adviser for Industrial Safety & Training
discuss the impact that eCommerce is having on Services; Brian Lundberg, operations manager for
beverage distribution and how partnering with beer, Atlas Distributing; and Eric Joseph, vice president
wine and spirits wholesalers is enhancing operations of operations for Del Papa Distributing. The group
across the supply chain. will discuss best practices and policies that beverage
That
T morning also will feature warehouses and fleets can apply for a safer working
a general session panel titled environment across the organization.
“Going Big: Harnessing Big The morning will continue with the final breakout
Data
D in Fleet & Warehouse sessions for the distribution and operations tracks.
Operations.”
O The panel will For distribution, the day will include “What’s on the
welcome
w Dan Betz, executive Regulatory Horizon” and “A World-Class Vehicle
vice
v president of operations for Maintenance Plan.” Concurrently, the operations
Andrews
A Distributing; Lester session will feature the topics “From Receiving
Jones,
Jo chief economist for the Docks to Store Shelf – What Works, What Doesn’t
National
N Beer Wholesalers Work?” and “When Mother Nature Intervenes:
Association;
As and Kris Hacker, Protecting Your Supply Chain in the Wake of
vice
vic president of analytics Natural Disasters.”
and
an business development for After the breakout sessions end, buses will load
Columbia
Co Distributing. The attendees for the Ride & Drive/Equipment Demo at
trio will discuss how beverage the Las Vegas Motor Speedway, which will take place
operations
op have become inundated with data from 1 to 4 p.m.
from
fro the road, trading partners and their The conclusion of the conference will culminate with
own
ow facilities and what it all means when a facility tour with Southern Glazers Wine & Spirits.
trying
try to optimize and manage beverage The 340,000-square-foot facility houses more than
operations.
op 17,000 SKUs and features the latest in cutting-edge
The afternoon will begin with separate conveyor, wave control, routing, inventory tracking
fleet
fl and operations tracks. For the and digital security technologies. Having packed and
fleet
f portion, topics will address hot- shipped more than 9 million cases in 2018 and with
button
b topics such as “CDL Training, current plans for expansion — an additional 110,000
Recruitment & Retention,” “On Autopilot: square feet — this is an ideal tour for those looking to
The Potential Impact of Autonomous discover what is needed to keep beverage distribution
Vehicles,” “All-Electric: The Future of successful going into the new decade. BI

50 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

WHAT TO SEE AT BOFS
ABCO FLEET SERVICES
4427 Midlothian Turnpike
Crestwood, IL 60418
Company website: abcofleetservices.com

Strick trailer dealer offering new and used beverage delivery trailers, rail lift sales and installation, OEM and aftermarket parts for all brands.
Reconditioned single-axle and tandem-axle tractors with warranties also available. Frame drops and side load body installation available. Side-load
trailer reconditioning including sub frames, suspension and King pin plates offered. OEM and aftermarket parts available for all trailer manufacturers
including complete door assemblies.

BROTHER MOBILE SOLUTIONS

11030 Circle Point Road, Suite 100
Westminster, CO 80020
Company website: brothermobilesoutions.com/route

Mobile printing for route accounting. We engineer compact, wireless, rugged mobile printing solutions that help you improve accuracy, deliver
goods faster, reduce shrinkage, manage inventory, serve more customers in a day, reduce errors, and improve cash flow. Quickly and wirelessly
print the documents and labels you need from practically any mobile device, smartphone or tablet. Compact, rugged and highly advanced mobile
thermal printers from Brother are designed to withstand the bumps, drops, and rough handling that can happen on the road — both indoors and
outdoors. Even in tough conditions, they keep performing.

CIRRUS TECH INC.

412 W. 48th St., Suite 6
Kearney, NE 68845
Company website: cirrustech.com

As a comprehensive integrator of material handling systems for more than 20 years and beverage industry leader in Crane System
implementations, Cirrus Tech offers world-class products, services and 24/7/365 support to customers across many industries. We have
automated and software solutions implemented in 30,000-square-foot warehouses to larger 1,000,000-square-foot distribution centers in both conventional existing facilities
and new-build facilities. Whether it is product retrieval, maximizing storage, reducing logistics costs, product rotation, real-time inventory management, or fulfilling orders more
efficiently, Cirrus Tech has best-in-class, automated hardware and software solutions that can fit any warehouse environment. The Cirrus Tech Crane System addresses the need
for more space and efficiencies in order picking, warehouse damaged beer, and touching product once versus four to five touches. The Cirrus Automated Case Picking System
optimizes the picking environment by reducing FTEs in order picking and replenishment, increasing picking rate, minimizing picking errors and cutting warehouse overtime.

DAIMLER TRUCKS NORTH AMERICA (FREIGHTLINER TRUCKS)

4555 N. Channel Ave.
Portland, OR 97217
Company website: Freightliner.com

The M2 106 is one of the best-selling medium duty trucks on the road and designed to get any job done. With a GVWR of up to
66,000 pounds, this versatile medium-duty truck supports a wide range of beverage bodies. In addition to being easy to upfit, the
M2 106 maximizes uptime, safety, quality and productivity to lower your Real Cost of Ownership (RCO). The M2 106 provides up to a 55-degree wheel cut, a low-profile
dash and ergonomic driver environment and best-in-class visibility. The M2 106 is also now available with the new Detroit DD8 engine and the Detroit DD5 engine, that
is equipped with Detroit Connect suite of connectivity services to maximize uptime.

DEMOUNTABLE CONCEPTS INC.

200 Acorn Road,
Glassboro, N.J. 08028
Company website: demount.com

Beverage and food distributors utilize the Warehouse on Wheels System by Demountable Concepts Inc. to change
their distribution model from Regional Warehousing to Centralized Distribution. This truck-based system provides
a cost-effective alternative to Regional Warehousing by utilizing tractor-trailers to line-haul preloaded truck bodies to a location near the regional market, where they’re
transferred to straight trucks for final mile delivery.

Other benefits include:

• No labor required to load and unload trucks at remote market • Goods can be line-hauled to remote market at off traffic hours
• Delivery drivers don’t have long drives to get to their routes (HOS compliance) • Refrigerated and van bodies can be hauled on the same trailer
• Drivers have more time to make deliveries because bodies arrive preloaded • Flexible truck-based system can be rolled out quickly to service
• Easier to source, less expensive non-CDL drivers in delivery market additional markets

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 51

 Warehouse

ENCOMPASS TECHNOLOGIES
420 Linden St., Suite 200
Fort Collins, CO 80524
Company website: encompass8.com

Encompass Technologies comprehensive ERP software helps more than 600 beverage distribution warehouses increase operational efficiency and manage growth
effectively. The customizable system is specifically built for the distribution industry and functions to fit your unique business needs with products like route accounting,
warehouse management, sales execution, logistics, warehouse automation, retailer ordering tools, and more. Take control of your business with this all-in-one cloud-based
system Encompass ERP.

ESKER INC.
1850 Deming Way, Suite 150
Middleton, WI 53562
Company website: esker.com

As a worldwide leader in AI-driven process automation software, Esker offers companies integrated solutions for improving order-to-cash,
purchase-to-pay and document delivery performance. Founded in 1985, Esker operates in North America, Latin America, Europe and Asia Pacific with global headquarters
in Lyon, France, and U.S. headquarters in Madison, Wis. Esker’s TermSync AR platform includes an EIPP tool, a customer-facing invoice payments portal, an online credit
application tool, and a strategic collections management platform. The company has taken a CRM-like approach to its AR platform, automating AR’s most time-consuming
tasks while enabling staff to optimize their collections management processes. Esker reports an average of 29 percent reduction in DSO for clients that have used the
TermSync platform for at least six months. It also reports that its clients’ AR departments have been able to manage more accounts per staff member after adopting it. Esker
offers month-to-month contracts for new TermSync customers so that they can become acclimated to the solution before making a long-term decision.

FORD COMMERCIAL SOLUTIONS

Regent Court Building – 4 North 16800 Executive Plaza Drive
Dearborn, MI 48126
Company website: commercialsolutions.ford.com

Ford Commercial Solutions leverages the power of the Transportation Mobility Cloud to pass OEM-grade data from the modems
built into your Ford vehicles to your internal IT system or your telematics services provider, including Ford Telematics, ARI, Geotab,
Spireon or Verizon Connect. Ford Telematics is your gateway to our wide range of solutions. This simple yet powerful tool delivers fleet
information, insights and solutions right to your fingertips. The easy-to-use interface enables you to manage in real-time and quickly
assess where you need to take action. Its software that helps you optimize your fleet. Our integrated telematics hardware and software
have been engineered in conjunction with the Ford vehicles your fleet uses every day. This means that they work together seamlessly to deliver solutions that are easy to
implement and can have an immediate positive impact on your operational effectiveness. Maintain the power of choice with Ford Commercial Solutions.

FRAZIER INDUSTRIAL
91 Fairview Ave.
Long Valley, N.J. 07853
Company website: frazier.com

Frazier Industrial is the largest producer of structural steel pallet rack systems in North America with 10 manufacturing plants located throughout the United States,
Mexico and Canada. Frazier’s rack systems are quickly recognized for durability and custom engineered design. From standard pallet rack to complex pick-to-belt towers
and AS/RS installations, Frazier’s expert team of engineers will help each customer design the best, most cost-effective material handling solution. All pallet rack systems
are manufactured using 100 percent hot-rolled structural steel, the most durable and abuse-resistant material available.

GREENMILE
5736 S. Semoran Blvd., Building D
Orlando, FL 3822
Company website: greenmile.com

GreenMile is a leading cloud-based and mobile platform solution that allows companies to better manage their mobile team’s productivity by providing them with
visibility, actual-versus-planned management, real-time optimization and full analytics capabilities.

HDA ARCHITECTS
16150 Main Circle Drive, Suite 100
Chesterfield, MO 63017
Company website: hdai.com/beverage

HDA is an authority on beverage distribution facility design and functionality having worked with over 150 beverage wholesalers on facility needs.
Our vast experience ensures your facility will be designed to maximize your investment and control your costs. We combine our thorough understanding of the beverage industry
with your specific needs to design a facility that supports your unique image and operation today and in years to come. Many parties are involved when you undertake a major
construction project. HDA manages those entities on your behalf. We will bring your vision to reality and act as your extension, providing you the freedom to stay focused on
your business. When you decide it’s time to make an investment in your facility, HDA offers a full line of services that cover every component of your project. Whether it be
investigating a site and constructing a new facility or expanding an existing facility, our team will apply our proven process to deliver a quality project on time and on budget.

52 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

HINO TRUCKS
45501 12 Mile Road
Novi, MI 48377
Company website: hino.com

Carrying the name Hino XL Series, this all-new lineup rounds out Hino Trucks Class 7 product offering and launches them into the
Class 8 market for the first time in the U.S. The Hino XL7 and XL8 models are powered by Hino’s legendary A09 turbo diesel 8.9-liter
inline 6-cylinder engine boasting a B10 life of 1,000,000 miles. The Hino XL Series is offered in a host of straight truck and tractor
configurations ranging from a GVWR of 33,000 to 60,000 pounds and GCWR up to 66,000 pounds with max performance of 360 horsepower and 1,150 pound-feet torque.
Available wheel base selections of up to 304 inches, and tandem axle and fifth wheel configurations make this a versatile truck for many vocational applications. The lineup
features new active safety solutions with electronic stability control (standard on tractor) and collision mitigation systems, innovative payload management suspension options,
and a body builder friendly optimized design engineered for maximum ease of serviceability.

IDEALEASE INC.
430 N. Rand Road
North Barrington, IL 60010
Company website: idealease.com

Idealease offers a safe, cost-effective and efficient alternative to commercial truck ownership through our comprehensive truck leasing, truck rental, and dedicated
maintenance solutions. We are the industry experts at seamlessly transitioning businesses from truck ownership to full service leasing. Our responsive fleet services will
help keep your business running smoothly — allowing you to focus even more attention on serving your customers and growing your business. We have the expertise to
create transportation solutions for commercial fleets of all sizes. We employ the most seasoned and tenured truck leasing and truck rental professionals. They can show
you how our fleet services and dedicated maintenance can help reduce the risk and costs associated with commercial truck operations and fleet management. Idealease
is committed to vehicle uptime. We support a fleet of more than 45,000 trucks, tractors and trailers with the most proficient, manufacturer-certified technicians, a vast
parts inventory and the latest diagnostic equipment.

INTERNATIONAL TRUCK
2701 Navistar Drive,
Lisle, IL 60532
Company website: internationaltrucks.com

International Truck is a manufacturer of medium-duty, heavy-duty, and severe service commercial vehicles. Our mission is to provide best-in-class
uptime that keeps you on the road or on the job site. It’s about more than just building reliable trucks, it’s about taking safety, performance, and
driver comfort to a whole new level. From durability and ergonomics to connected technologies and more, it’s uptime at international truck. Our
offerings for the beverage industry include the LT Series and RH Series Class 8 tractors as well as the medium-duty MV Series.

DRIVERFIRST: Driver-focused design philosophy that improves comfort, safety and ergonomics to optimize productivity.
DIAMOND LOGIC ELECTRICAL SYSTEM: Advanced electronics allow for improved productivity and reliability while lowering operating costs.
UPTIME COMMAND CENTER: Real-time service data reviews and cross-functional support for A26 powered vehicles and more.
NORTH AMERICA’S LARGEST DEALER NETWORK: You’re never far from highly qualified technicians to get you back on the road faster.
ONCOMMAND CONNECTION: Connected technology keeps you informed about your fleet’s vehicles and maintenance for maximum uptime.

ISUZU COMMERCIAL TRUCK OF AMERICA INC.

1400 S. Douglass Road, Suite 100
Anaheim, CA 92806
Company website: isuzucv.com

Isuzu Commercial Truck of America, headquartered in Anaheim, Calif., is the No. 1 best-selling low cab forward truck in America, every
year since 1986. Isuzu offers a wide range of commercial trucks. The popular N-Series has Class 3 to 5 offerings, while the new FTR is
quickly becoming a favorite among Class 6 customers. Isuzu’s low-cab-forward design and multiple wheelbases accommodate body lengths from 10 to 30 feet and their diesel
and gas powertrains are among the top of their class in durability and fuel efficiency. The FTR will be on hand for you to experience at the Ride and Drive. Be sure to visit us and
see how Isuzu fits your transportation needs. For more information, call 866/441-9638 or visit isuzucv.com.

LEYMAN LIFT GATE

10335 Wayne Ave.
Cincinnati, OH 45215
Company website: leymanlift.com

For more than 50 years, Leyman Lift Gate continues to manufacture all-hydraulic liftgates that set the industry standards. At Leyman
Lift Gate, we build dynamic industry leading solutions paired with industry leading service to ensure our client’s success.

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 53

 Warehouse

LYTX INC.
9785 Towne Centre Drive
San Diego, CA 92121
Company website: lytx.com

At Lytx, we harness the power of video and data to enable fleets to improve safety, efficiency, and security. Our flagship DriveCam safety program is the gold standard
for driver safety, helping to ensure that 850,000 drivers come home safely every day. Our Lytx Video Services platform delivers on-demand continual video and optional
livestream of the road to show even more critical moments — both on the road and in the field. We protect more than 3,000 clients commercial and government fleets
that log billions of miles worldwide each year. We empower our clients to realize significant returns on investment by lowering operating and insurance costs, while
achieving greater efficiency, compliance, and safety. Most of all, we strive to help save lives — on our roads and in our communities, every day. Lytx is privately held and
headquartered in San Diego, Calif. Visit us at lytx.com.

MERCEDES-BENZ USA LLC

One Mercedes-Benz Drive
Sandy Springs, GA 30328-4201
Company website: mbvans.com/sprinter/home

Mercedes-Benz Vans are ready to build your business. The new Sprinter is built for you, with available diesel and gas engines, and thousands of ways to
customize it to meet your needs. The innovative Metris delivers large-van capabilities in a mid-size van. Whatever you choose, we have the van to make
working easier, safer and more efficient. Mercedes-Benz Vans. Born to Run.

OMNITRACS LLC
717 N Harwood St., Suite 1300
Dallas, TX 75201
Company website: omnitracs.com

Omnitracs is a global pioneer of fleet management, routing and predictive analytics solutions for private and for-hire fleets. The Omnitracs platform is a single source of
truth that allows you to manage your transportation needs for creating routes, monitoring them in real time, and managing compliance information and driver behavior.
Create routes from orders, dispatch to mobile devices, and collect vehicle inspections and duty status — all from one mobile device and one backend solution. Drivers
use a single device in the cab for both compliance and trip management functions, on an Android tablet or a smartphone.

PACCAR LEASING CO.

777 106th Ave. NE
Bellevue, WA 98004
Company website: PacLease.com

PacLease, a PACCAR company, provides fleet customers with value-added transportation services and premium-quality Kenworth
and Peterbilt vehicles. With independent franchises and company-owned locations throughout the United States and Canada,
PacLease provides customized full-service lease, rental, and contract maintenance programs designed to meet specific fleet needs.
At PacLease, we work with our customers to learn about the intricacies of their business in order to create customized transportation
solutions for them. Along with our lease, rental, and maintenance programs, we offer a suite of customized solutions: PacTrainer, a
driver-training program; PacTrac, vehicle telematics to assist with fleet management; PacFuel, a fuel management solution; PacTax,
fuel tax management and reporting; and PacToll, a toll billing and management solution. At PacLease, we know that our business
depends on your business being successful, that is why we focus on keeping your business moving forward.

PDC INC.
150 Farm Lane, Suite 200
York, PA 17402
& 3025 Parker Road
Aurora, CO 80014
Company website: pdcinc.us

As an independent consulting firm, our business depends exclusively on satisfied clients. We specialize in customized, engineered solutions for warehouse layouts, pay
for performance programs, facility sizing and location, and sales and delivery optimization — from conceptual design to implementation management and training. For
over 600 beverage clients in 31 countries, we create unique and customized solutions based on empirical analysis and operational expertise.

PROPANE EDUCATION & RESEARCH COUNCIL

1140 Connecticut Ave NW, Suite 1075
Washington, D.C. 20036
Company website: propane.com

Propane-powered forklifts and trucks do more than just move inventory. They’ll give your productivity and bottom line a big lift, too. Visit the Propane Education &
Research Council in booth 34 or online at propane.com to learn more about propane, equipment, or to find a retailer near you.

54 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

ROUSH CLEANTECH / MICKEY TRUCK BODIES
12170 Globe St.
Livonia, MI 48150
& 1305 Trinity Ave.
High Point, N.C. 27261
Company website: ROUSHcleantech.com & mickeybody.com

ROUSH CleanTech and Mickey Truck Bodies have teamed up to provide “near zero” emission solutions to help combat volatile fuel and increasing maintenance costs
while minimizing a fleet’s environmental footprint. ROUSH CleanTech designs, engineers and manufactures alternative fuel and advanced technology systems for Ford
commercial trucks and vans, and has partnered with Mickey Truck Bodies, a leading manufacturer of truck bodies and trailers for a wide variety of industries, including
food and beverage, to help fleets increase their bottom line with a domestically produced alternative fuel and advanced technology.

RYDER SYSTEM INC.

11690 NW 105 St.
Miami, FL 33178
Company website: ryder.com

Ryder is a FORTUNE 500 commercial fleet management, dedicated transportation, and supply chain solutions company. Ryder’s stock (NYSE:R) is a component of
the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. Ryder has been named among FORTUNE’s World’s Most Admired Companies, and has
been recognized for its industry-leading practices in third-party logistics, environmentally-friendly fleet and supply chain solutions, and world-class safety and security
programs. The company is a proud member of the American Red Cross Disaster Responder Program, supporting national and local disaster preparedness and response
efforts. For more information, visit www.ryder.com, and follow us on our Online Newsroom and social media pages: Facebook, LinkedIn, Twitter, Instagram and YouTube.

SAMSARA
350 Rhode Island St., Suite 400
San Francisco CA 94103
Company website: samsara.com

Samsara is an Internet of Things (IoT) company that transforms data from internet-connected sensors into immediately actionable insights for transportation, logistics,
and industrial applications. By combining plug-and-play sensors, wireless connectivity, real-time GPS, cameras, and rich cloud-hosted software, Samsara’s integrated
platform empowers manufacturers and fleets to boost operational efficiency, increase safety, simplify regulatory compliance and enhance customer service.

SONOCO THERMOSAFE
30553 S. Dixie Highway
Beecher, IL 60401
Company website: thermosafe.com

High quality, durable insulated containers for storage and transportation of refrigerated or any
temperature-sensitive products on non-refrigerated vehicles.

TWINLODE AUTOMATION
51024 Portage Road
South Bend, IN 46628
Company website: twinlodeautomation.com

Leveraging decades of experience, Twinlode Automation provides complete beverage warehouse solutions from concept to completion utilizing the industry’s most
advanced technology. In most warehouse environments, space is at a premium. Twinlode Automation has a wide range of rack systems ideally suited for the unique
requirements of the beverage industry, including case/carton and keg flow systems, as well as craft barrel racking, Twinlode’s iconic Gen2 pallet rack that exceeds seismic
considerations and allows warehouses to move two pallets at a time, and customizable automation systems. Twinlode Automation offers full management of a project,
focusing on the needs of the customer and putting an action plan to work that is both scalable and reliable for any beverage warehouse environment.

VECTOR FLEET MANAGEMENT

9300 Harris Corners Parkway, Suite 350
Charlotte, N.C. 28269
Company website: vectorfleet.com

Vector Fleet Management provides dedicated fleet maintenance and management programs which favorably impact costs, service levels, availability and life expectancy of
equipment. This is achieved through deploying skilled personnel, a world class fleet management information system, vocation specific fleet planning and competitive parts and
tire sourcing. These components are optimized by an experienced management team utilizing proven maintenance strategies and tactics. Since 1988, Vector Fleet Management
has consistently delivered reliable, customized and cost effective solutions because fleet maintenance is our one mission. Our singular focus on improving our clients
maintenance performance, allows them to focus on their core business and improve their bottom-line.

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 55

 Warehouse

VEHICARE FLEET SOLUTIONS

3133 East Kemper Road,
Cincinnati, OH 45241
Company website: vehicare.com

VEHICARE is an asset management solutions provider that delivers a broad range of support for companies that operate equipment and want to maximize their return on
investment and uptime. Our solutions are customized to meet the specific needs of our customers and can include support and full services ranging from complete asset
management to preventative maintenance. We evaluate your business, create solutions and processes to solve key challenges, and utilize industry-leading data analysis to
take your fleet to best in class. Customize. Perform. Manage. Vehicare Fleet Solutions.

VIP (VERMONT INFORMATION PROCESSING)

402 Water Tower Circle
Colchester, VT 05446
Company website: public.vtinfo.com/

VIP is a 100 percent employee-owned company, and the leader in providing innovative business solutions to the beverage
industry. For more than 40 years, VIP has built long-lasting relationships with many of the most successful companies in
the beverage industry. Technology is transforming the warehouse. For distributors who embrace the change, deploying VIP’s
Warehouse Management System (WMS) allows them to manage SKU proliferation, a changing workforce, and ever-shifting
industry challenges while saving time and money. With VIP, you’ll have real time information — both in the warehouse and in the
trade. EasyPick, EasyOps, location-based inventory, and truck loading are just a few of the ways that you can eliminate errors,
maximize space utilization, and increase warehouse productivity and morale. But, these benefits aren’t just felt in the warehouse.
When you pick orders faster and more accurately, load them on trucks, and send fresh product off for delivery on time, you’re also
making happier customers.

WISE SYSTEMS
84 Sherman St.
Cambridge, MA 02140
Company website: wisesystems.com

Wise Systems builds autonomous dispatch and routing software with machine learning to continuously improve fleet
efficiency and performance. Trusted by the world’s largest brands, Wise automatically schedules routes, monitors routes
in progress, and intelligently adjusts to day-of delays on the ground. The Wise platform includes Wise Scheduler for
planning, Wise Dispatcher for day-of routing, and mobile iOS and Android apps including Wise Driver for drivers to
manage their routes, Wise Updates (for field personnel), and Wise Customer Portal (for delivery recipients). Our customers typically see an 80 percent reduction in late
deliveries, a 15 percent decrease in fleet miles, and fleet utilization improvements of 20 percent. Cloud-based, Wise’s next-generation route optimization platform can be
used on its own or integrated with other systems to bring real-time dynamic capabilities to fleets.

WORTHINGTON INDUSTRIES – CNG FUEL SYSTEMS

200 Old Wilson Bridge Road
Columbus, Ohio 43085
Company website: WorthingtonIndustries.com/CNG

Worthington Industries is the leading global manufacturer of pressure cylinders and related products for industrial, alternative fuel, energy
and consumer products markets. Our alternative fuels team is dedicated to maximizing a fleet operator’s investment in alternative fuels.
From truck specification to aftermarket support, our fuel systems are designed and developed to be the most efficient, reliable and safe
products in the market. Our commitment to providing fleets a safe and effective onboard CNG or RNG fueling option will ultimately improve
the longevity of a fleet, the experience of a driver and the environment. Available at the BevOps Fleet Summit Ride and Drive will be the
Worthington Industries Demo Truck, which features our 60 DGE Type 3 Rail Mount fuel system mounted on a Kenworth T680 Day Cab.

YALE MATERIALS HANDLING CORP.

1400 Sullivan Drive
Greenville, NC 27834
Company website: yale.com/north-america/en-us/

In a market where accuracy and uptime are everything, the reimagined Yale End Rider seeks to maximize precision and productivity. The
optional extended platform provides more than 30 percent more usable foot space than leading competitors and the ultra-cushion floor
mat helps reduce shock and vibration. LED platform and fork lights improve visibility in trailers and low-light areas and provide greater
pedestrian awareness. Efficiency and productivity are improved with advanced technology that bundles several key functions around a
convenient “shift” button. Operators can navigate quickly, precisely and in both directions with single-button speed and coast functions.
Reduced service times and increased service intervals allow the truck to be serviced faster and as much as 50 percent less often,
meaning less time out of operation and more time moving product. Built with the operator and application in mind, the new Yale End
Rider is challenging the competition as a powerful force in the beverage industry.

56 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

By John Peter Koss
Installing effective
maintenance programs
EVERY SEGMENT OF THE BEVERAGE INDUSTRY IS A CAPITAL INTENSIVE
operation. The facility, machinery, equipment and processes required to build
a carbonated soft drink (CSD) plant, brewery, winery or distillery creates assets
from which a return would be expected. With such important investments, the
created assets must be protected to ensure maximized utilization and efficiency,
as well as minimized downtime and damage.
To accomplish these goals, the assets must be
adequately and properly maintained. However,
the word maintenance can have different meanings
depending on the operating conditions and a variety of
management philosophies. Therefore, it is best to clarify
this word before discussing or establishing guidelines
for an effective maintenance program.
From an operations perspective, two basic categories
can be used to define specific types of maintenance.
First, use the basic premise to get maximum efficiency
(utilization). Several terms such as preventive,
predictive, planned and scheduled maintenance
have been used with slight differences, but all are
basically quite similar. The focus will be on preventive
maintenance (PM), which in context, is planned,
scheduled and predictive.
Second, when machinery, equipment and/or
processes experience malfunctions it does in fact create
an emergency operating situation requiring immediate
or emergency maintenance (EM).
Using PM and EM categories and establishing an
effective maintenance program must recognize the
important and necessary relationship between the two.
Most machinery and equipment manufacturers
usually establish recommended schedules, methods
and procedures; however, the suggested guidelines
might not be applicable after long-term use or if
operating conditions change from what was initially
intended. Therefore, modifications would be
necessary to adapt to the new operating conditions.
In this situation, many manufacturer PM programs
were manually administered and executed by plant
personnel trained by the manufacturer.
From an engineering viewpoint, constantly changing
designs, technology and complexity of maintenance
tasks created a new rationale and development
of computerized programs. To become effective,
significant changes involved different personnel
training, budgets and management philosophies to
cope with specific new operating conditions.
Keep in mind the distinct “working” relationship
between PM and EM and the execution necessary to
experience an effective program along with the factors
that contribute to that execution. Another basic premise
to be considered in an effective program is that EM
cost decreases as PM cost increases. Also factored into
this comparison is the cost of downtime that will be
reduced or eliminated with justified PM cost.
Operations Perspective
Accounting for
preventive, emergency
maintenance
The following guidelines structured as dos and
don’ts, could be helpful:
Program — Manual (good for smaller operations)
or computerized (many available but caution on
application), in either case, should be simplistic and
configured to a facility’s physical needs, including
facility, machinery, equipment and processes.
Proficient Personnel — Ensure maintenance
workers are selected according to specific criteria
for scope of tasks pertinent to a plant location.
Make sure workers are experienced and can pass
knowledge level testing and, if not experienced, it
is necessary to train potential maintenance people
preferably by the manufacturer. Avoid having plant-
trained workers instruct other workers because
this tends to lessen the effectiveness of program
execution. Any program must have top management
commitment and possess mechanics who know how
to use effective managerial direction.
Budgeting — From experience, observation and
analysis/evaluation, the budgeting of maintenance
monies has always been a debatable and controversial
topic. The management committee is a part of the
budgeting process. Assets must be maintained to
realize expected return-on-investment and length of
service; therefore, budgets for maintenance, whether
PM or EM, should be based on asset needs and
performance records (including downtime logs, EM
costs and adherence to PM schedules). Using this
approach can prevent unjustified, unnecessary and
“cross the board” budget reductions that could cause
asset damage going forward.
The following are among the significant
maintenance program areas that should be evaluated:
■ Compare – PMs scheduled versus actual
completed
■ Compare – PM cost versus EM cost
■ Track – downtime before and after PM work
■ Evaluate – cost trends of downtime during various
time periods
■ Personnel – training log and activity: scheduled
versus actual
■ Analyze maintenance cost – percentage of asset
value and trends from year-to-year (updated
John Peter Koss, the Beverage Operations
annually)
Advisor, has more than 50 years of
■ Upgrade programs as operating conditions change beverage industry experience, is a licensed
■ Determine facility maintenance needs before any registered professional engineer, and can
program acceptance. BI be contacted at oleboss@aol.com.
bevindustry.com | FEBRUARY 2019 | Beverage Industry | 57
 Supplier’s Marketplace
NEWS
Greenwich, Conn.-based Atlas Holdings
LLC acquired Saxco International LLC,
Horsham, Pa., a value-added distributor
of rigid packaging in the wine, spirits and
craft beer markets. Saxco serves a customer
base of more than 5,000 wineries, distillers,
brewers and specialty food manufacturers
across North America, the company says.
Terms of the transaction were not disclosed.
Aker Solutions, Fornebu, Norway, and
Siemens, Munich, Germany, signed a
collaboration agreement to further develop
digital offerings in engineering, operations
and services. The collaboration focuses
on the creation of software applications
and joint service offerings including the
development of industrial digital twins that
will drive efficiency throughout the entire
plant lifecycle, the companies say. Aker
Solutions will bring in its domain expertize
and sector-specific digital offerings in
field development, asset performance and
integrity, while Siemens will provide a wide
range of digital offerings for the process
industries, they add.
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.
Los Angeles-based Rehrig Pacific
partnered with Virginia Tech University’s
Center for Packaging and Unit Load Design,
which put the company’s new fire-retardant
pallets through an exhaustive battery of
tests to simulate real-world warehouse and
supply chain conditions. Rehrig’s pallets
survived as many as 200 cycles, making
them the first flame-retardant pallets on the
market to achieve these standards, it says.
Isuzu Commercial Truck of America
Inc., Anaheim, Calif., broke multiple sales
records in 2018, making last year its new
benchmark for Isuzu-brand trucks and
parts, it says. Isuzu dealers retailed a
record-breaking 23,914 Isuzu trucks to
customers in 2018. In addition, Isuzu parts
sales increased 5.9 percent versus 2017.
This also marks the fourth year in a row
that Isuzu has established records in these
important metrics, it reports.
58 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
Extracting cold-pressed juices
JBT Corp. recently launched a new system for cold-
extracted fruit and vegetable juices designed to
overcome complications with traditional bag presses.
Capable of processing various produce, including
whole watermelons, carrots, beets and berries, the
READYGo FVP offers continuous, hygienic juice
extraction at as much as 5 tons an hour of raw
product, the company says. Among the advantages
the fruit and vegetable processing (FVP) system offers
compared with traditional bag systems is the FVP
does not require emptying and refilling after each
batch. Instead, the FVP offers continuous processing,
which is hygienic and easy-to-clean, while at the same
time, unlike a bag press, is completely enclosed.
The FVP delivers a yield of anywhere between
50 to 92 percent across a range of commonly processed
fruits and vegetables, it adds. Depending on the
product, the fully automated FVP can hygienically
generate as many as 20 gallons a minute of fresh
juice. The result of two years’ research involving
prototypes and precursors, the FVP skid incorporates
JBT’s proven chopper pump, the FVX-5, with an
external FVG flow-through grinder and a UCF110
screw finisher. No heat is applied during extraction,
making the juice or blends suitable for immediate
bottling followed by high-pressure processing (HPP)
with JBT’s Avure HPP system. The modular system
encapsulates three pieces of equipment on a single
skid at a single price, the company says.
■ JBT Corp., 400 Fairway Ave., Lakeland, Fla. 33801;
863/683-5411; jbt.com.
Yeast management
for craft beer
The GEA Group reports that sales of the GEA Craft
Propagator, a yeast propagation system specially
designed for small- and medium-sized craft breweries,
now are underway. With production volumes ranging
from 5 to 25 hectoliters, the propagator’s dimensions
are adaptable to GEA’s brewhouse solutions CRAFT-
STAR and COMPACT-STAR, which encompass brew
sizes of 25 to 125 hectoliters, the company says. The
GEA Craft Propagator, a smaller version of YEAST-
STAR, which provides high capacity utilization with
full automation, is designed for smaller budgets and
smaller capacities and offers gentle homogenization,
highly efficient aeration and adaptive temperature
control, the company says. The system also allows
for more spontaneity and experimentation via
reduced automation while providing vital and
highly fermentative yeast, it adds. The propagator
is equipped with a recirculation pipe, an internal
aeration system and a sterile air measuring unit.
During the propagation phase, the yeast cells in the
reaction tank are intensively supplied with oxygen in
order to keep them in a state of aerobic metabolism,
thus stimulating rapid growth of yeast cells. Unlike
the YEAST-STAR, assimilation takes place directly
in the propagator with adjustable temperatures and
aeration rates. The propagator also can be used to
store the yeast crop from the large fermenters until the
next propagation, it says.
■ GEA Group, Peter–Müller-Str. 12, 40468 Düsseldorf,
Germany; +011/49-211-9136-1503; gea.com.
Precise chilling
To help companies that produce wine, beer,
distilled or dairy products or that require heating
and/or cooling as part of its beverage process,
Delta T Systems Inc. announced that its chiller
technology now incorporates ambient dew points
as a control system variable. A standard feature
on all of its process chillers, the Delta controller
is designed to monitor and adjust the chillers’ set
point temperature at or above ambient dew point
temperature. When the dew point temperature
increases above the process control temperature,
the controller automatically adjusts the set point
to track with the dew point, the company says.
Benefits of the now standard on-board ambient
temperature and humidity sensor include decreased
scrap rates, increased polymer strength, improved
polymer appearance and the prevention of unsafe
slip hazards, it adds. Condensation prevention also
will decrease unsanitary conditions, provide a longer
equipment life and prevent equipment damage or
catastrophic failure.
■ Delta T Systems Inc., 2171 State Road 175,
Richfield, Wis. 53076; 800/733-4204; deltatsys.com.
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 Supplier’s Marketplace
NEWS
Imola, Italy-based SACMI unveiled new
applications for molding and compression
technology developed as part of a joint
research project with Germany-based
Polyoptics and German research institute
KIMW. The new application aims to foster
the development of optical parts such as
lighting lenses, advanced instrumentation
and parts for the automotive sector. On lab
scale, a special machine processed the
special thermoplastic polymers requested
for the manufacture of optical components,
and KIMW verified the quality of the
produced samples.
UNITED CAPS, Wiltz, Luxembourg, reports
that it manufactured its 10 billionth closure
in 2018, marking the first time in its 27-year
history that 10 billion closures have been
produced in a 12-month period, it says.
To support growth, flexibility and
sustainability of its KeyKeg and UniKeg
lines, The Netherlands-based Lightweight
Containers is expanding its manufacturing
capacity throughout Europe. Along with a
fully operational production line in Seaham,
United Kingdom, a production line in
Guadalajara, Spain, will begin operating in
May to meet growing demand in that region.
Plans for a sixth production line in Italy
already have been drawn up, the company
says. All five of the state-of-the-art plants
feature the latest blow molding technology
and machinery, as well as new automation
and robotics technologies, it adds.
Raleigh, N.C.-based MonarchFx, a
business unit of Tompkins International,
hired operations expert Scott Lenhoff to
oversee the company’s distributed logistics
facilities. As West Coast regional director,
Lenhoff is responsible for building, creating
and instituting state-of-the-art facilities
to help the company achieve optimal
productivity, accuracy, the lowest costing
possible, and give the company the ability
the handle millions of orders throughout a
given year.
Romeoville, Ill.-based BW Integrated
Systems, a Barry-Wehmiller packaging
company, named industry veteran Mike
Girtman as director of product development.
In this newly created role, Girtman will focus
on driving innovative product development
throughout the BW Integrated Systems
product portfolio, which includes industry-
leading end-of-line solutions such as
cartoning, case packing, palletizing and
robotic automation.
60 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
independently driven agitators: a screw auger, a high
speed disperser and a three-wing anchor agitator.
The sides and bottom of the changeable mixing vessel
are insulated and jacketed for as much as 50 psig.
The vacuum-rated machine is designed to run 24/7,
supplied with rugged touchscreen controls showing
digital readouts for speed, cycle time, vacuum level
and batch temperature.
■ Charles Ross & Son Co., 710 Old Willets Path,
Hauppauge, N.Y. 11788; 800/243-7677; mixers.com.
Retail-ready case packaging
Somic America Inc. offers a new packaging machine:
the SOMIC-FLEXX III. The multi-purpose, retail-
ready case packaging system collates and packages
soft or flexible products. The new concept allows
manufacturers to pack primary packages in a flat,
nested position or a standing display orientation, the
company says. The SOMIC-FLEXX III can handle
single or multi-component packaging including one-
piece corrugated blanks for standard wraparound
shipping cases and two-piece tray and hood for
retail-ready presentations. Equipped with industrial
automation technology from Rockwell Automation,
the fast and flexible machine takes the collating,
grouping and packing of stand-up pouches, flow
Scissor-lift precision
Verti-Lift Inc. offers scissor lift tables with tilt
packs, rigid containers and other items to a new
capabilities for improved ergonomics and product
dimension, the company says.
positioning. Now available in stainless steel
■ Somic America Inc., 500 Lone Oak Road, Suite 200;
washdown designs, the lift tables integrate the
Eagan, Minn. 55122; 847/915-9872; somic.us.com. height adjustment of a scissor lift and can handing
lifting capacities of 2,000 to 4,000 pounds and a tilt
range as wide as 60 degrees, making it suitable for
a wide range of assembly line or batch production
applications, the company says. The tables also
contain optional removable forks that automatically
orient the workload for transport to the next cell. The
company’s lift and tilt tables also are available in mild
steel, feature easily accessible internal power units,
heavy duty cylinders, hand or foot controls, heavy
duty tubular frames, heavy duty hydraulic cylinders,
and lifetime lubricated kingpin bearings to ensure a
long service life with no maintenance, it adds.
■ Verti-Lift Inc., 5559 National Turnpike, Louisville, Ky.
40214; 502/361-0180; verti-lift.com.
Improved lifting and sealing
Charles Ross & Son Co. unveiled improvements to
the dual-post hydraulic lift and seal design of its
1,500-gallon multi-shaft mixer, Model PVM-1500. The
new lifting design is a double-acting, fully hydraulic
cylinder operating at a much higher pressure,
allowing for a smaller cylinder and significantly less
oil for operation, the company says. The net result is
a lifting system that operates at lower cost, requires Wine designs for
less maintenance for the end user, and provides faster
lifting speed when raising and lowering the agitators. the modern vintner
In addition, the new seal arrangement allows seal Wine Cellar Innovations (WCI) launched a number of
replacement without removing agitator shafts. Unlike products to meet the growing trend in wine storage for
the historical design, seal replacement no longer modern wine cellars. Along with the rise in modern
requires removal of the mixer from the tank nor tank wine storage trends is the increasing amount of do-
entry to access the seal. The PVM-1500 features three it-yourself (DIY) wine cellar projects. Homeowners
have taken to creating DIY wine
racking arrangements for their personal
collections. To accommodate clients
on a budget, WCI has revolutionized
its modern wine racking products by
making them available in kit format.
The “Modern Vintner,” from the Vintner
Series, includes the ability to work with
different mediums including cable,
acrylic and wood. The Vintner Elite
Cabinetry embraces contemporary
racking styles in kit format, while the
Acrylic 9 Column Individual and Cable
Racking units are affordable alternatives,
closely reminiscent of the Contemporary
Cable Wine Racking System. Another
option is the Vintner Individual Concave
Wine Racks collection, a modular
unit that comes in various height
configurations and can be stacked to
accommodate any ceiling height and
comes in custom wood, stain and finish
options. Among the new stains offered
for a modern look are Graywash,
Whitewash and Midnight Black.
■ Wine Cellar Innovations, 4575 Eastern
Ave., Cincinnati, Ohio 45226; 800/229-9813;
winecellarinnovations.com.
360-degree
cargo control
Kinedyne LLC introduced a new family
of ergonomically advanced EASE-Z
Winch Bars, which combine mechanical
advantages, ergonomics and industrial
design to create its winch bar tools. The
patented Z-shaped winch bar rotates 360
degrees, providing users with greater
leverage. The bar comes in one standard
model and two combination versions,
which have modified handles that can
be used to release tension on chain
binders. The tough, heat-treated carbon-
steel and mushroom-shaped head of
the EASE-Z Winch Bar is tapered for
easy insertion, and helps keep the bar
seated in the winch cap, and prevents
it from slipping out during revolution
and when the user is applying torque. A
knurled non-slip handle with a flanged
grip ring on the bar’s upper shaft
helps prevent it from slipping out of
users’ hands even in moist conditions.
Because the winch bar can be rotated as
much as 360 degrees, users are able to
optimally position themselves and the
bar to deliver superior leverage when
tensioning winch straps. Available
in three models and lengths ranging
from 34 inches to 39 inches, the tool’s
contoured, extruded Z-shape, bent-bar
offset design can help reduce back,
shoulder and arm strain by eliminating
the need to exert excessive upward or
downward force on the bar at awkward
angles.
■ Kinedyne LLC, 3040 US Highway 22 W.,
Suite 150, Branchburg, N.J. 08876; 800/848-
6057; kinedyne.com.
AI controller solution
Omron Automation Americas
highlighted its new artificial intelligence
(AI) controller solution that assists
the data-driven decision process for
predictive maintenance. The Sysmac
AI controller is able to identify
abnormal machine behavior without
being explicitly programmed to do so
and also extends equipment life with
machine learning, the company says.
The solution also collects, analyzes and
utilizes data on edge devices within
a controller to prolong equipment
longevity. In addition, the AI controller
can help manufacturers reduce the risk
of bad parts or equipment damage by
detecting issues early on and prompting
immediate action to resolve them.
Customers can take advantage of the
company’s advanced technology and
its team of data scientists to facilitate
predictive maintenance, the company
says. Known as “machine learning,”
AI functionality saves a significant
amount of time, resources and end-
user cost savings, it adds. Rather
than being a cloud solution, Omron’s
approach to AI-based control involves
hardware, offline software and in-person
service. No Internet connectivity or IT
infrastructure/service is required, the
company says.
■ Omron Automation Americas, 2895
Greenspoint Pkwy., Suite 200, Hoffman
Estates, Ill. 60169; 847/843-7900;
omron247.com.
The perfect canvas
With the rise of craft beer, brewers are
looking to differentiate their packaging
in order to stand out from the crowd.
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.
NEWS
In 2019, Elyria, Ohio-based Bendix is
rolling out new advanced training courses
designed to help fleets, technicians and
owner-operators keep pace with today’s
advancing truck technologies, it says. The
company has doubled its technical training
force and enhanced its long-running
in-person training programs. In addition to
the established three-day Air Brake Training
class, a new two-day Advanced Technology
Training program also is available. For
more information, visit bendix.com or
foundationbrakes.com.
San Francisco, Calif.-based Vector, a
mobile-first workflow and transportation
management platform, launched its Vector
Back Office solution to help carriers and
shippers streamline data entry. It combines
Vector’s smartphone scanning app with
intelligent processing to automatically
fill data into documents. The app, built
specifically for the trucking industry, is used
in conjunction with a trucker’s smartphone
and the result is simplified document
handling and creation, the company says.
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
bevindustry.com | FEBRUARY 2019 | Beverage Industry | 61
 To place your classified ad in
Beverage Industry call
Catherine Wynn at
847-405-4010
Fax: 248-502-9109
E-mail: wynnc@bnpmedia.com

CAREER OPPORTUNITY EQUIPMENT FOR SALE TRUCK & TRAILER WASHING EQUIPMENT

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62 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

To place your classified ad in
Beverage Industry call
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Fax: 248-502-9109
E-mail: wynnc@bnpmedia.com
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bevindustry.com | FEBRUARY 2019 | Beverage Industry | 63
 SOUR OR
SWEET?
BY TAYLOR KARG
Associate Editor
T
he chewable candy Sour Patch
advertises with the tag line
“Sour. Sweet. Gone.,” to
portray how people crave its sour, then
sweet taste. Although a different type
of consumable, sour beverages, and
particularly sour
beers, increasingly are
becoming something
consumers crave.
Sour flavors are
more likely to be
associated with
drinking kombucha;
however, an
increasing amount
of craft brewers are
experimenting with sour and tart flavors,
experts note.
In an October 2018 blog post titled
“Will sour beers lead to sweet success?,”
Jenny Zegler, associate director of Mintel
Food & Drink, explains how even though
the number of launches of sour-flavored
beers remain relatively small globally,
they are on the rise.
“Sour beers are appealing to those
with adventurous flavor preferences,
but the tart brews are also attracting
attention for delivering refreshment
suited for hot weather and post-exercise
consumption,” Zegler writes.
The analyst uses Dogfish Head
Brewery and its SeaQuench Ale Session
Sour as an example. “According to
Dogfish Head, SeaQuench Ale has
become the fastest growing beer in the
craft brewery’s 23-year history,” she
writes.
SeaQuench was recognized by fitness
magazines such as Sports Illustrated
and Men’s Health magazine, which
named it the Best Low-Calorie Beer in
2017 and 2018, she notes.
Sour beers also can target kombucha
fans, Zegler writes. “In the U.S.,
kombucha is consumed by one-in-five
older millennials and one-in-10 younger
millennials,” she says. “More brewers
can target kombucha fans by emulating
kombucha flavors.”
To put this into perspective, Zegler
references brewers who make “hybrid”
products like Rogue Ale & Spirits who
created Kulture Clash, an imperial
blonde ale blended with kombucha tea
from Brew Dr. Kombucha.
As sour profiles continue to become
more popular in the beverage world, it
will be interesting to see whether more
craft brewers will hop on board the sour
flavor train.
64 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
Sponsored energy
Obstacle course race event Warrior
Dash and X2 All-Natural Energy
For your
entered into a partnership making convenience
PepsiCo, in collaboration with Bay-area based
X2 the official energy drink of
Robby Technologies, launched Hello Goodness, a
the race. Backed by 10 years of fleet of self-driving robots that contain snacks and
research and development, X2 beverages for college campuses. Hello Goodness
features a patented formulation was first launched at the University of the Pacific
of critical ingredients that support in Stockton, Calif., giving college students a direct,
the development of adenosine better-for-you snacking experience, the company says.
The snackbots are user-friendly and are stocked with
triphosphate (ATP), the body’s
consumables including Smartfood Delight, Baked
essential source of real energy, Lay’s, SunChips, Pure Leaf Tea, bubly, LIFEWTR and
the company says. Warrior Dash Starbucks Cold Brew. “We’re thrilled to launch our
participants will be treated to Hello Goodness autonomous delivery snackbots and
X2 Energy samples in addition reimagine college snacking for the future,” said Scott
Finlow, vice president of innovation and insights at
to contests and activities at the
PepsiCo FoodService, in a statement.
X2 Energy display located in the
Warrior Dash festival, it adds.
Scheduled to begin in March,
Warrior Dash events take place The
throughout the year. perfect
combo
Pizza Hut announced
Cook off for charity the expansion of its
Hall Wines announced plans for its 10th annual Cabernet category-first beer
Cookoff, which will take place in April at the wine’s delivery program. First launched in December 2017
headquarters in St. Helena, Calif. Hosted by Vintner Katheryn in parts of Arizona and California, the company
Hall, the annual event will feature a lineup of renowned Bay announced plans to expand the program to nearly
Area Chef teams vying for a chance to win proceeds for a 300 restaurants across Florida, Iowa, Nebraska,
charity of their choice by participating in the food-and-wine- North Carolina and Ohio. The rollout is a brand
pairing competition, the company says. One-hundred percent priority as Pizza Hut is aiming to grow beer
of ticket proceeds benefit nonprofit organizations as selected delivery capabilities to 1,000 restaurants across
by the winning teams, it adds. “This event makes a difference new markets by this summer, it says. “We are
for many lives in our community,” Hall said in a statement. proud to be pioneers of beer delivery and are well-
“So many people come together to celebrate passion for food poised to take on more markets in the coming year,”
and wine, and in the end, local nonprofits garner awareness said Marianne Radley, chief brand officer at Pizza
and proceeds. Everyone participating comes out a winner.” Hut, in a statement.
A chance to create
Rapper Pusha-T and 1800 Tequila launched 1800 Seconds, a new
recording and artist discovery platform that gives unsigned artists a
chance to write and release a new three-minute track with the full
production and marketing support of a record label, the company says.
1800 Seconds intends to seek out new hip-hop sounds and help 10
on-the-rise artists release their music on a national scale, it adds.
Each artist was handpicked by Pusha-T and will be featured on a
30-minute compilation album on 1800seconds.com, Spotify, Apple Music
and SoundCloud, the company says.
 REGISTER BY 3/31
FOR BEST VALUE!

May 6 – 9, 2019
¨
Rosemont, Illinois

UPGRADE YOUR EDUCATION

BY GETTING CERITIFIED
The Food Safety Summit is offering 8 Certificate/Certification courses
including 3 NEW courses in 2019. All courses include breakfast,
lunch and breaks, books/training material and certificate.

NEW COURSES IN 2019

IA Conducting Vulnerability Assessments Course
This course will provide participants with the information and skills necessary to conduct
a vulnerability assessment that considers the three fundamental elements outlined in the IA rule.

Produce Safety Alliance Growing Training

This course is for fruit and vegetable growers and others interested in learning about produce safety,
the FSMA Produce Safety Rule, Good Agricultural Practices (GAPs), and co-management of natural
resources and food safety.

Seafood HACCP
This standard “live” 2.5 day Alliance training course is for the supply chain of the seafood processors
including food distribution warehouses and those companies that make, transport or stores seafood.

COURSES RETURNING IN 2019

• Certified in Comprehensive Food Safety (CCFS) • Professional Food Safety Auditor Training
• Foreign Supplier Verification • Preventative Controls for Human Foods
• HACCP Training

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T H E AU T H O R I T Y O N T H E B U S I N E S S O F M E AT A N D P O U LT R Y P R O C E S S I N G

BAKERY
 Ad Index
READER & MARKETING
Allied Electronics .................................................... 9 HDA Architects .....................................................46 SERVICES
www.thinkallied.com www.hdai.com/beverage LETTERS
JESSICA JACOBSEN
Allen Flavors ......................................................16-17 Hilmar Ingredients ................................................ 36 Mail: Beverage Industry
155 Pfingsten Road, Suite 205
www.allenflavors.com www.hilmaringredients.com Deerfield, IL 60015
E-mail: jacobsenj@bnpmedia.com

Amelia Bay ............................................................... 5 iTi Tropicals ...........................................................38 SINGLE COPY SALES/

BACK ISSUES
www.ameliabay.com www.ititropicals.com www.bevindustry.com/scs

Applied Food Sciences, Inc................................... 35 SUBSCRIPTIONS

Kyowa Hakko USA ................................................. 37
www.appliedfoods.com
CUSTOMER SERVICE
www.cognizin.com T: (800) 952-6643
F: (847) 763-9538
E-mail: bi@omeda.com
Beverage Forum 2019...........................................29 Lanxess ...................................................................15
www.beverageforum.com
CUSTOM MEDIA
www.nagardo.com
MELANIE KUCHMA
E-mail: kuchmam@bnpmedia.com
BevOps Fleet Summit.................................... 48-56 Lubriplate Lubricants Company ............................ 3 Call: (610) 383-7970

www.BevOpsFleetSummit.com www.lubriplate.com LIST RENTAL

Beverage Marketing Corporation ........................ 33 FOR POSTAL

Membrane Technology Forum .............................. 59 INFORMATION:
Contact Kevin Collopy at
BMCBeverageCompanyDatabase.com
www.membraneforum.com (402) 836-6265
Toll Free: (800) 223-2194, ext. 684
kevin.collopy@infogroup.com
Cirrus Tech Inc ......................................................45
Motion Industries .................................................... 7
FOR EMAIL
www.cirrustech.com
www.motionindustries.com INFORMATION:
Contact Michael Contantino at
(402) 836-6266
Clean Liquid Systems ............................................10 michael.contantino@infogroup.com
Nightclub & Bar Convention/Trade Show ...........43
www.cleanliquidsystems.com
www.NCBShow.com/register PRINT & INTERNET ADVERTISING
STEVE PINTARELLI
DMW&H .................................................................. 47 Western US
NVE Pharmaceuticals ............................................11
E-mail: pintarellis@bnpmedia.com
www.DMWandH.com Call: (949) 600-8092
www.nveusa.com
BRUCE KLION
Flavor Dynamics, Inc .............................................14 East Coast, Canada
PDC International .................................................. 31 E-mail: klionb@bnpmedia.com
www.flavordynamics.com Call: (248) 786-1716
www.pdc-corp.com
CHRISTOPHER CASEY
Food Safety Summit .............................................65 Midwest
E-mail: caseyc@bnpmedia.com
PLT Health Solutions ............................................ 39 Call: (847) 894-8761
www.foodsafetysummit.com
www.plthealth.com
Freightliner Trucks..........................................67, 68 CLASSIFIED

www.freightlinertrucks.com
Southeast Bottling & Beverage ............................41 CATHERINE WYNN
E-mail: Wynnc@bnpmedia.com
www.southeast-bottling.com Call: (847) 405-4010

GEA ........................................................................... 2
REPRINT
Tekleen ................................................................... 23
www.gea.com
JILL DEVRIES
www.tekleen.com devriesj@bnpmedia.com

Uline........................................................................25
www.uline.com
BEVERAGE INDUSTRY (ISSN: Print 0148-6187 and Digital 1938-3843)
is published 12 times annually, monthly, by BNP Media II, L.L.C., 2401
W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) Vacuum Barrier Corporation ................................. 13
362-3700, Fax: (248) 362-0317.
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Printed in the U.S.A. Copyright 2019, by BNP Media II, L.L.C. All rights reserved. The
contents of this publication may not be reproduced in whole or in part without the consent
of the publisher. The publisher is not responsible for product claims and representations.
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Change of address: Send old address label along with new address to Industry, Dairy Foods, Flexible Packaging, Food & Beverage
BEVERAGE INDUSTRY, P.O. Box 2145, Skokie, IL 60076. Packaging, Food Engineering, Industria Alimenticia, The
For subscription information or service, please contact Customer Service at: National Provisioner, Perishables Buyer, Prepared Foods,
Phone: (800)952-6643 Fax: (847)763-9538.
Private Label Buyer, and Snack Food & Wholesale Bakery.

66 | Beverage Industry | FEBRUARY 2019 | bevindustry.com

 Driven by the best.
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