Dear Client:
Well it looks like Molson Coors is picking up right where it left off in 2020, as far as new partnerships go.
Yep, after announcing a barrage of deals in the back half of 2020, it took less than two weeks to announce its first one of the New Year.
The latest? Yet another non-alc partnership, but with a little skin in the game.
The brewer just announced that it will serve as “the retail distributor and have an equity stake” in ZOA, a new energy drink being launched by a team of big wigs, including superstar Dwayne “The Rock” Johnson.
THE BIG NAMES BEHIND THE BRAND. As stated above, The Rock isn’t the only one behind this brand – the rest of the ZOA co-founding team includes: American businesswoman and XFL owner, Dany Garcia; fitness professional and consultant, Dave Rienzi; and Juggernaut Capital Partners founder, John Shulman.
WHAT MAKES ZOA DIFFERENT? So, aside from its backing from big names, what makes ZOA different from the slew of other energy drinks already out there?
As the release puts it, ZOA is set to be “the first-ever healthy energy drink that contains immunity-boosting antioxidants like turmeric, camu camu and vitamin D, as well as 100% of the daily value of vitamin C and an abundance of focus-enhancing B Vitamins.” (Ed. Note: Vitamin D is hot right now, like Hansel).
Indeed, it sounds like ZOA is as much of a nutrition drink as it is an energy drink, as it’s “formulated to support the immune system while enhancing focus, providing pre- and post-workout hydration, supplementing amino intake and enhancing energy levels.”
DEBUTING ONLINE IN MARCH, OFF-PREMISE ROLLOUT TO FOLLOW. The healthy energy drink will make its debut “on the ZOA website and Amazon” in March in 16-oz. cans, according to the release, followed by rollouts to “natural, conventional and convenience stores.”
Molson Coors will serve as “the exclusive distribution partner for all retail locations,” according to the release.
It appears Molson Coors emerging brand partner will play a role with the brand too. “By utilizing Molson Coors and their partner L.A. Libations, ZOA will be able to tap into their vast distribution & retail network, as well as utilize their beverage expertise and marketing support,” per release. As BBD understands, LA Libations will help ZOA out with its chain selling relationships. Production of the new drink will be left to ZOA.
PARTNERSHIP “A NO-BRAINER,” SAYS PETE MARINO. We were able to snag some phone time with Molson Coors’ president of emerging growth, Pete Marino, to talk briefly about the tie-up.
Pete shared that they’ve been “working on this deal for a while now,” and are “obviously excited about” getting it to the finish line.
How does this deal fit in with their other recent non-alc deals?
Pete said their approach to non-alc has always been “a blend of creating our own brands, partnering with brands, and making investments in brands.” And there were a few categories they had their eyes on when it came to partnerships and investments.
“We liked enhanced water, which led us to our equity position in ZenWTR,” said Pete [see BBD 09-22-2020]. “We like ready to drink coffees, which led us to our distribution agreement with La Colombe,” [see BBD 10-01-2020]. “And we like the performance beverage category,” which obviously brought them to today’s partnership.
The performance beverage category “is big, it’s growing and it’s obviously dominated by a lot of big players, but I think what we’ve seen – is with a strong point of difference and a reason for being, you can create an entry of meaning in that category,” said Pete.
So to partner with the ZOA ownership group, led by The Rock, it was “a no brainer.”
“He and his ownership group are not only terrific people, but terrific business people, and the ambition to create something of scale here is one that we both share and I couldn’t be more excited about partnering with this group and creating this brand in this category and taking this product through our distribution system,” Pete said. “I think it’s a win for everybody, and I’m totally fired up about it… I think we have the opportunity to create something that over time can be pretty impactful.”
Much more from Pete and this new deal next week at our Virtual Beer Summit.
JACK THE MACK IMPLORES WOULD-BE BANG DISTRIBS TO “SIGN THE MOTHER F’N CONTRACT”
You gotta hand it to Bang chief Jack Owoc. He certainly has a sense of flair and theater, and you know exactly where he stands.
Back up: BBD has learned through its trusty nefarious backchannels that Jack hosted a virtual YouTube meeting on Friday, which seemed to double as a WWE show and techno rave (though thankfully Vince McMahon didn’t hit Owoc over the head with a folding chair, or vice versa). We’re kidding: The explosion-happy presentation clearly aimed to snag some beer distributors (at least some of whom they are re-courting). Apparently they’ve got some time-sensitive motivations to secure a new distributor network, amid their legal fight with Bang’s most recent distributor, Pepsi (who has condemned Bang’s outside solicitations).
Jack spent a lot of time complaining about how some former distributors did him dirty. You can’t have 20% of the distributors doing 80% of the work, he said.
Bottom line, Jack told the audience he wants to transfer $2 billion worth of business to a new distributor network, then advised the cameraman to fixate on the screen on his giant stage (of course there was a giant stage) and not him.
“Sign the mother f’n contract,” the screen said.
And apparently there’s something of a time crunch for Bang to land those new contracts.
You see, Jack introduced viewers to “Mixx,” their new hard seltzer (which BBD broke news of last fall, when it was prototyped to some retailers as “Fixx”). As BBD readers know, it features electrolytes and Bang-inspired flavors.
And according to Jack, “This is going to bring hundreds of millions of dollars to the distributor network we’re talking to today.” He says “these products are already being run — we have cans, we have product.” And they’re talking to pretty much “every” major retailer behind the scenes.
Indeed, Jack says it was these giant retailers’ idea for Bang to make a hard seltzer.
And that Bang’s hard seltzer chain launch commitments already exceed $66 million.
And here’s where they’re desperate for those new distributor contracts.
“This is not White Wave or Truly or whatever those non-brands are,” he said, promising to “crush them.”
But they “need the distribution network to do so” because time is ticking.
You see: One of the retailers wanted to launch the product in two states, Jack explained. But he said no, launch it in all states, or no brand. So the retailer said “’as long as you can show us a distribution network that CAN COVER ALL OF OUR STORES BY THE 22nd of THIS MONTH, you can have the entire U.S.’ That’s why we need you to sign the mother f’in contract now,” Jack reiterated, dangling the prospect of $427 million in annual seltzer sales.
Again he said Mixx is different firstly by being “loaded with electrolytes,” which he apparently knows you can’t claim but promises they “Won’t Hang You up!” (Ed. Note: Assuming this is a veiled reference to preventing hangovers). He also rattled off more packs than you’ll find on a Bang dancer’s stomach: “6-pack, 8-pack, two kinds of 8-pack variety pack; variety 12-pack; 16 oz. … It’s all here.”
And no “stupid flavors like Cucumber,” he said. Though we’re unaware of any major such seltzer to date. Rather, expect “Frose Rose and Key Lime Pie” and other “Radical Skedaddle” flavors.
OUR TAKE: The guy is a great showman, for sure. He certainly proved he can build beverage brands quickly if not unconventionally. But it appears that he needs a quick distribution network more than they need him, and if he really wants them to “sign the f’n contract” then he should put forward an “f’n contract” that distributors feel comfortable signing — meaning it isn’t completely one-sided.
Will distributors take another bite at the Bang apple? We’ll see.
CONSTELLATION, MOLSON COORS LOOKS TO JUMP ON LEMONADE SELTZER BANDWAGON TOO
You know what they say… when life gives you lemons (as it did in 2020) – turn that ish into lemonade seltzer.
Ah, who are we kidding? Everyone’s just following the success of Truly Lemonade. And the latest to do so? Constellation Brands, at least judging by the brewpic of Corona Hard Seltzer Limonada below. And Molson Coors with Vizzy Lemonade.
First, let’s talk about this Corona Hard Seltzer Limonada. The image, obtained through BBD’s nefarious cross-border back channels, depicts a Corona Hard Seltzer Limonada variety pack with flavors like Classic Lemon, Lime Lemonade, Strawberry Lemonade, Grapefruit Lemonade and Watermelon Lemonade. Each checks in at 4.5% ABV, and 100 calories, which we would note is slightly higher than original Corona Hard Seltzer, which holds 90 calories.
We were curious how Corona Hard Seltzer would inevitably follow suit with the lemonade seltzer train, because Corona and Lemonade Seltzer don’t necessarily go hand in hand, but add a little Spanish flare to the name (Limonada) and “a splash of real Mexican Lime Juice” – and voilà, you’re good to go.
No word on when this potential brand will hit, but if/when it does it will join a host of others, including A-B’s Bud Light Seltzer Lemonade (hitting the market as we speak), Mark Anthony Brands Mike’s Hard Lemonade Seltzer (coming in March), Diageo’s Smirnoff Seltzer Pink Lemonade (launch TBD) … and now we can also add Molson Coors to the bunch with Vizzy Lemonade, set to roll this April.
VIZZY LEMONADE HITTING IN APRIL. Yes, this one seemed all but inevitable too. Vizzy Lemonade Hard Seltzer will hit April 1 this year in four flavor combos — Strawberry Lemonade, Watermelon Lemonade, Raspberry Lemonade and Peach Lemonade — all holding the same intrinsics as the original Vizzy Hard Seltzer (made with antioxidant Vitamin C, 5% ABV, 100 calories, and gluten free).
YOUR TAKE. The shelves are getting mighty tight, folks. I’m interested in your take about who are going to be the losers in spring sets? Budget beer, legacy beer, slow moving non-alc? You know where to find me.
BREWPICS: Your first look at Corona Hard Seltzer Limonada
Vizzy Lemonade
And ZOA
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UPDATE ON DISTRIBUTOR COVID FUND. WOW. Just, wow. I knew beer industry folks were generous, but I am blown away. I purposefully set a very lofty goal of $150k under the belief that it’s better to set it too high than too low.
After just one week, we are almost at six figures. Just so you know, 100% of the contributions (less credit card fees and whatever GoFundMe takes) will go to folks in need.
TAX DEDUCTIBLE? I’ve gotten many questions on this, and yes we are working with industry friends to see if we can make your contributions tax deductible by partnering with a 501(c). As currently set up, they are not tax deductible, but that may change and I’ll let you know as it would be retroactive.
A WORTHY CAUSE? I took some heat on social media for attempting to raise funds for what some people characterize as a “rich industry” that doesn’t need help. In some ways that is true. But even good insurance and good corporate deeds don’t make up for some of the tangential issues our merchandisers and drivers and reps face every day when presented with the prospect of getting sick. There are a lot of moving parts in those families and being exposed every day has its costs. And these are the people in our industry who are least able to financially deal with any hiccups in their lives due to a 100-year pandemic.
Like “Mary” who wrote to me on social media: “There are decidedly more worthy industries.” I responded, rather rudely but with intense satisfaction: “Then go out and raise six figures for those industries, Mary. There are funds for Colorado Prairie Dogs while human babies are starving, so yes there’s always going to be a spectrum. Do what you can close to your home. Otherwise, STFU.” Yeah, I get a little harsh on twitter when challenged. It’s a weakness, and a hobby. I make no apologies.
Anyway, moving forward with the fund and already have a great Board lined up. Again, I’m no do-gooder, and I will not make it a habit to ask my paying readers for donations because — as my dear aging mother said — it’s gauche (whatever that means). But for this pandemic I made an exception, even if it means scandalizing my mother and her bridge club by being gauche.
I have been fired up about the response, and makes me and our staff here proud to be a part of this great industry.
LEARN MORE about the Beverage Distributor Covid Fund here>>
SUMMIT UPDATE: JUST ONE WEEK until the Beer Summit. Best speaker lineup we’ve ever had. Mike’s, Boston, AB, MC, Constellation, Twitter, Amazon, and my personal favorite because it’s their debut: Geloso Beverage, the little bev company that could, and does. Here is the speaker schedule.
MONEY BACK GUARANTEE. I know, it’s our first virtual conference, so I don’t know any more than you if it’s going to be good or not. So here’s the deal: If you register, and actually watch it, and don’t feel like it added value, you can call me and I’ll give you your money back. There, it’s in writing. No risk.
Check out more information and register here>>
Until tomorrow,
Harry, Jenn, and Jordan
“I never put on a pair of shoes until I’ve worn them at least five years.”
– Samuel Goldwyn
———- Sell Day Calendar ———-
Today’s Sell Day: 7
Sell days this month: 21
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Fri.
YTD sell days Over/Under: -2
