Food Business News - June 28, 2016 - (Page 20)

Monster moving beyond energy beverages with debut of Mutant, Hydro CORONA, CALIF. - Monster Beverage Corp. plans to introduce a carbonated soft drink called Mutant that will extend its product portfolio beyond energy beverages and compete directly with PepsiCo, Inc.'s Mtn Dew brand. Later in the year the company also plans to introduce Monster Hydro, a packaged water energy drink. Calling Mutant a "super soda," Rodney Sacks, chairman and chief executive officer, said the new product will launch during the third quarter of this year and contain 115 mg of caffeine per 20-oz container, a slightly higher level than other beverages in the category. "... If you look at the convenience channel the Mtn Dew 20 oz is the leading prod- uct," Mr. Sacks said June 14 during the company's annual shareholders meeting. "And so that is the target." Mutant initially will be merchandised in the C.S.D. section of convenience stores, and Mr. Sacks estimated its price point to be around $1.99 per beverage. "It's the evolution of sparkling refreshment, the perfect balance of drinkability and energizing flavor," Mr. Sacks said. PepsiCo's Mtn Dew line features original Mtn Dew, Diet Mtn Dew and Kickstart. Mr. Sacks said he feels the line is targeting his products and that Monster's new relationship with The Coca-Cola Co. makes now the perfect time for the company to respond. "... Together we are ... putting our resources together to basically go after and compete with the leading C.S.D. in the convenience space, which is Mtn Dew and which is really attacking us on our flanks," he said. Mr. Sacks added that profit margin expectations for Mutant will be lower than for other Monster beverages because of the number of parties involved, including Monster Beverage, Coca-Cola and the bottler, and the product's price point compared to other Monster products will be lower as well. The company is also not planning a major advertising campaign around the product launch. "... That's something we've never done," Mr. Sacks said. "And it doesn't mean we won't do it, but at this point in time it's not on the front." During the fourth quarter of this year Monster Beverage will be introducing Hydro, a non-carbonated energy hydration drink. "You've got bottled water from mountains, glaciers, virgin springs, tropical islands and the Arctic," Mr. Sacks said. "It is mineralized, fortified, ionized, electrified, pH balanced ... straight out of the city tap. What's the point? You've got to hydrate everyday so you might as well enjoy a boost while you're at it. "Monster Hydro is non-carbonated, lightly sweetened with natural flavors to make it thirst quenching and easy drinking. We added just enough of that Monster magic to get you fired up." The product will be available in 500ml cans that feature an aluminum cap. At 120 mg of caffeine per can, Hydro will feature less caffeine than traditional Monster beverages. "The process positioning for Hydro is it's an energy drink," Mr. Sacks said. "It's just a different form of energy drink." He added that the product's price will be in the range of $2.69 to $2.89 depending on where it is sold. "We believe Hydro is one of those good opportunities for us to create something that's new and that's different," Mr. Sacks said. FBN Coca-Cola changing its soft drink strategy to focus on 'shaping choice' PARIS - The Coca-Cola Co., Atlanta, is adjusting its approach to selling carbonated soft drinks in response to evolving consumer trends, said James Quincey, president and chief operating officer. "We have made a shift in how we deal with the challenges and the headwinds around added sugar or total sugar consumption around the world," Mr. Quincey said during a June 16 presentation at the Deutsche Bank dbAccess Global Consumer Conference in Paris. "We realize that we need to go from offering choice to shaping choice. We need to use the ability of our system, our 20 FOODBUSINESS NEWS ® marketing, our designs, our reformulations to provide a portfolio of products that encourage and enable consumers to enjoy added sugars responsibly." In addition to offering portion-control cans of its classic Coke products, the company has increased its investment in research and development to reduce the aggregate sugar content across its portfolio, while promoting its existing low- and no-calorie options. "All of which will need to meet the absolute entry price of being great tasting," Mr. Quincey said. "There's no point of developing products with whatever level Jim Quincey, Coca-Cola Co. June 28, 2016

Table of Contents for the Digital Edition of Food Business News - June 28, 2016

Food Business News - June 28, 2016
What will Brexit mean for U.K. food and agriculture?
Obesity rate rises as sweetener use declines
Beverage Business News - Protein on trend in R.-T.-D. beverages
Table of Contents
Web Contents
Editorial - Market fragmentation intensifies C.P.G., retail competition
Coca-Cola invests in organic aloe water beverage maker
Dunkin’ Donuts evolves with expansion of beverage portfolio
Philadelphia passes tax on caloric, diet beverages
Post said to be considering combining with Lamb Weston
Teasdale adds to private label portfolio with purchase of Mesa Foods
CVS to expand selection of healthier foods, will add to private label line
Monster moving beyond energy beverages with debut of Mutant, Hydro
Coca-Cola changing its soft drink strategy to focus on ‘shaping choice
McDonald’s to relocate corporate headquarters
Smucker earnings soar on coffee sales, pet food acquisition
A squeeze on pectin
Picking out pectin alternatives
Kellogg launches $100 million venture capital fund
Kellogg adds Pure Organic to Kashi portfolio
TreeHouse Foods profiles the changing private label consumer
Martha Stewart enters meal kit market with delivery subscription service
B&G Foods ready to ‘fight back’ in frozen food aisle
Washington - Audit finds F.D.A. must improve food recall process
Snack Trends - Key trends unveiled at Sweets & Snacks 2016
Crispy, convenient and gluten-free
When gluten-free orders get serious
Company profile - WhiteWave Foods eyeing $3 billion in additional U.S. plant-based foods sales
WhiteWave’s Earthbound Farm brand set to soar in fresh and frozen
Industry Images - Record attendance at 2016 Purchasing Seminar
New Food Products
Ingredient Market Trends - Post-eleventh hour compromise on G.M.O. labeling
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - June 28, 2016