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COLOR TRENDS DISTRIBUTION INKS & GRAPHICS Suppliers emphasize the importance of color selection Vehicle manufacturers unveil the latest advancements for beverage fleets Ink technology expands shelf appeal www.bevindustry.com Nestlé Waters North America’s Kim Jeffery (left) and Tim Brown. Trends, technology & products shaping the marketplace COL OR TRENDS DISTRIBUTION INK S & GRAPHICS Suppliers emphasize the importance of color selection V ehicle manuf actur ers unveil the latest advancements f or beverage fleets Ink technology expands shelf appeal T rends, technology & products shaping the marketplace November 2013 Nestlé Waters North America evolves products, packaging to suit consumer needs Spearheading the rise of water

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Page 1: 9fc9a42a734d3c6444af4c4db886c3b784521d2e.3

COLOR TRENDS DISTRIBUTIONINKS & GRAPHICS Suppliers emphasize

the importance ofcolor selection

Vehicle manufacturers unveil the latest advancements for beverage fleets

Ink technologyexpands shelf appeal

www.bevindustry.comNestlé Waters North America’s Kim Jeffery (left) and Tim Brown.

Trends, technology & products shaping the marketplace

COLOR TRENDS DISTRIBUTIONINKS & GRAPHICS Suppliers emphasize

the importance ofcolor selection

Vehicle manufacturers unveil the latest advancements forbeverage fleets

Ink technologyexpands shelf appeal

Trends, technology & products shaping the marketplace November 2013

Nestlé Waters North America evolves products, packagingto suit consumer needs

Spearheading the rise of water

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D e f i n e a n d p r o t e c t y o u r b r a n d

S E N S I E N T F O O D C O L O R S . C O M

©2013 Sensient Colors LLC, all rights reserved. THE SENSIENT trademark, the Sensient Technologies Corporation logo, the AET trademark, and the AET logo are all owned by Sensient Technologies Corporation.

S E N S I E N T ® F O O D C O L O R S

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Brewed in Holland. Imported by Heineken USA Inc., New York, NY. ©2013 HEINEKEN® Lager Beer.

©2013 F. Korbel & Bros., Guerneville, Sonoma County, CA. Producers of fine California méthode champenoise champagnes for 131 years. KORBEL is a registered trademark used with permision.

1. Nielsen, Total USA Grocery, 2 weeks ending 12/29/12 2. Major Retailer Shopper Card Data, 2 weeks ending 12/29/12 3. Nielsen, Club/Mass plus FDL, 52 weeks ending 1/5/13 4. Spectra, versus average consumers*Where legal

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• 72% of Heineken consumers are also likely to purchase KORBEL® CALIFORNIA CHAMPAGNE4

DRIVE REPEAT PURCHASE WITH IN-PACK CODES THAT GIVE YOUR SHOPPERS A CHANCE TO WIN REWARD CARDS* • Heineken shoppers are 61% more likely to repeat purchase during the holidays2

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Features

November 2013

6 Beverage Beat

8 Industry Issues

12 Category FocusDairy alternatives capitalize on healthand wellness trends.

18 Special ReportCo-packers’ capabilities support new product development.

22 New Products

26 Cover StoryNestlé Waters North America spearheadsgrowth in the bottled water category.

30 Up Close With…Runa LLC

32 Channel StrategiesMass merchandisers polarize in size to appeal to urban and rural consumers.

34 Between Drinks

38 Packaging• Plastic bottle manufacturing equipment aims to cut costs and materials.

• Beverage containers get inked with a variety of special effects.

48 Beverage R&DBeverage-makers coordinate beverage colors with fl avors.

54 Ingredient SpotlightVegetable- and milk-based proteins offerdifferent selling points.

56 DistributionThe 2014 truck roundup

62 OperationsWMS and WCS systems provide effi cientwarehouse solutions.

64 Supplier’s Marketplace

68 Classifieds

70 The Last Drop

38

56

26

Cover photo by Susan Farley

30

bevindustry.com

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Beverage Industry INSIDERWEEKLY eNEWSLETTER

Delivering useful,up-to-date news,

new product briefs and information to the beverage marketplace.

SIGN UP TODAY ATBEVINDUSTRY.COM!

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6 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Go to BEVINDUSTRY.COM for archived articles, to conduct keyword searches, and to print or download articles. For high-quality reprints of articles or advertisements, contact JILL DEVRIES: TEL.: 248/244-1726, EMAIL: [email protected].

Visit us online

VOLUME 104, NUMBER 11

WITH MOST OF THE LEAVES NOW ON THE GROUND instead of on the trees, it might seem a little out of place to be talking about summer, but Newton, Mass.-based Restaurant Sciences LLC is keeping the summer season on our brains.

Last month, the independent firm identified the Top 10 adult beverage concoctions of the summer. After analyzing 50 million cocktail spirits purchases at bars, restaurants, nightclubs, sports venues, and recreation/leisure facilities from June through August, Restaurant Sciences found that Margaritas topped the list with 20.5 percent of the market share for the foodservice industry.

“Margaritas were the clear-cut adult beverage concoction winner throughout the 2013 summer season,” said Chuck Ellis, chief executive officer and president of Restaurant Sciences, in a statement. “Margaritas’ versatility and extensive flavor variety held more appeal for consumers over multi-spirit iced teas and martinis.”

Iced teas with multi-spirits were second with 8.8 percent share of the segment, and martinis grabbed the third spot with 6.9 percent share, it added. Rounding out the Top 5 were frozen/blended drinks (non-Margarita) and mojitos, both of which had just shy of 3 percent share.

The market research firm did note that shot and mixer concoctions known as highballs, like gin-and-tonic or rum-and-cola, were not included in the ranking, but that the large and diverse group outsells all of the listed adult-beverage concoctions.

However, the changing of the seasons has allowed for fall-inspired options. According to the recent Seasonal Strategies micro-report on Technomic’s online Digital Resource Information Knowledgebase (DRINK) database, cranberry, caramel, apple and pumpkin are among the flavors of vodkas that are inspiring seasonal cocktails this fall.

“Flavored vodka is a fast-growth spirits segment, and there are plenty of seasonal offerings coming to market that can inspire bartenders or at-home mixologists this fall,” said Donna Hood Crecca, senior director for Chicago-based Technomic, in a statement.

Promoting mixology at home, multichannel specialty retailer and product development company Brookstone recently introduced its Perfect Drink App-Controlled Smart Bartending system. The Perfect Drink smart scale and free app system contains hundreds of drink recipes and guides home bartenders with real-time pouring instructions, the company says. The system includes a smart scale, a 750-ml stainless steel shaker, two drink pouring spouts, a 3.5-mm cable, and a smartphone/tablet stand. It also can accommodate different serving sizes and senses the “perfect pour” by alerting users when to stop; or, it compensates for over-pouring by instantly re-adjusting the other ingredients, it adds.

Whether they’re at home or out on the town, consumers can enjoy their cocktails and all the creativity that goes along with them.

Beverage Beat

Cocktails keeping up with the seasons

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8 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Industry IssuesNatural Products Expo East, produced by New Hope Natural Media, a division of Penton, hosted more than 22,000 attendees and 1,200 exhibitors at its 28th annual trade show Sept. 25-28 in Baltimore. It also launched Next, a portfolio of data and analytics tools from New Hope Natural Media for entrepreneurial manufacturers and industry innovators in the natural products industry.

Bai Brands, Princeton, N.J., launched its Bai antioxidant-infused drinks in Chicago and announced a series of expansion plans that would put its drinks in all 50 states by the end of 2014. To support its expansion, the company recently opened a corporate office and warehouse facility in Corona, Calif., in order to build a coast-to-coast presence.

Reed’s Inc., Los Angeles, announced that it will start labeling all of its products as genetically modified organism (GMO)-free. Although all of Reed’s products already are non-GMO, the label changes will progressively appear during the course of the next year on Reed’s Ginger Brew, Virgil’s Root Beer and Reed’s Culture Club Kombucha.

Bend, Ore.-based Deschutes Brewery has partnered with Johnson Brothers of Nebraska, part of Johnson Brothers Liquor Co., to launch its craft beers in Nebraska.

Crystal Geyser Water Co., Napa Valley, Calif., manufacturer and distributor of Crystal Geyser Sparkling Mineral Water, Juice Squeeze, Tejavaand Metromint brands, announced its purchase ofa 145,000-square-foot bottling facility located on 266 acres in Mount Shasta, Calif.

SPI Group, Luxembourg, announced that it is looking to grow its global wine portfolio. The company, which owns Stolichnaya Premium Vodka, is planning to further diversify its spirit portfolio through the acquisition of exclusive and premium wineries located throughout the world.

Little Me Tea, Lawrenceville, Ga., partnered with Nature’s Best, KeHe and Unique Foods Marketing to expand its teas’ availability nationwide.

Sonoma Wine Co., Graton, Calif., announced that its Graton facility attained International Organization for Standardization (ISO) 9001 certification.

Boston-based Something Natural LLC announced that its all-natural sparkling waters now are available at Stop and Shop, Giant and Hannaford retailers in the Northeast.

Mamma Chia, Carlsbad, Calif., announced that it has expanded distribution of its Mamma Chia vitality beverages and Chia Squeeze vitality snacks into several national chains as well as launched the brands in Canada and established its first online sales channels.

Scottsdale, Ariz.-based The Alkaline Water Co. Inc. ’s Alkaline88 water brand now is available in all119 Fry’s Food Stores in Arizona.

ProWein, the international trade fair for wines and spirits, announced that its next show, set to take place March 23-25, 2014, in Düsseldorf, Germany, is already sold out. Approximately 70 U.S. exhibitors will participate.

Record attendance at NBWA show

The National Beer Wholesalers Association (NBWA), Alexandria, Va., hosted its 76th annual convention Sept. 29-Oct. 2 in Las Vegas.

NBWA President and Chief Executive Officer Craig Purser kicked off the convention’s general session by welcoming a record audience of nearly 4,000 convention attendees, saying, “Your presence here shows the great energy that is fueling the beer distribution industry right now.”

Highlighting the impact of beer distributors on the nation’s economy, NBWA Chairman of the Board Bob Archer told general session attendees that beer distributors employ 130,000 people, add more than $54 billion dollars to the nation’s gross domestic product each year, and annually contribute roughly $175 million to their communities.

Following the general session, the trade show featured products and services from nearly 300 exhibitors, including more than 500 brands of imported and domestic beer, non-alcohol beverages, warehousing technology, financial services software

and promotional products.New to the show this year were the NBWA

mobile app and NBWA-TV. Through the mobile app, attendees were able to personalize their profiles, network with fellow attendees, customize their schedules of seminars and events, plan their trade show experience with an interactive map and exhibitor listing, receive the latest updates from NBWA, and share event photos in the photo gallery.

Also at the show, Greg LaMantia, manager of L & F Distributors LLC in Texas and New Mexico, assumed the position of 2013-2014 chairman of the NBWA board of directors. As chairman, LaMantia will help guide the association as it advocates for licensed, independent beer distributors and educates elected officials, reg-ulators, media and the public about the value of beer distributors and America’s effective systemof state-based alcohol regulation.

NBWA’s 77th Annual Convention will take place Sept. 28-Oct. 1, 2014, in New Orleans. BI

Duvel Moortgat acquires family-owned craft brewery Boulevard Brewing

K ansas City, Mo.-based Boulevard Brewing Co. announced that Belgium-based Duvel Moortgat has acquired the craft brewery.

John McDonald, Boulevard Brewing’s founder, wrote in a letter on the company’s website that he selected the independent, family-owned craft brewer, which also operates Brewery Ommegang in Cooperstown, N.Y., to be the new owner because it brings to the table “an unparalleled depth of experience, strong resources, and an unwavering devotion to quality.”

“Duvel Moortgat is committed to our people, to the expansion of our Kansas City brewery, and to growing Boulevard brands throughout the U.S.

and abroad,” McDonald wrote. “We share the same values, respect each other’s achievements, and have the same obsession for exceptional beers.”

The Moortgat family will maintain its existing ownership structure in Europe, while McDonald intends to remain closely involved with Boulevard in Kansas City, where the base of operations will remain. Boulevard also will maintain its role in sustainability initiatives, including support for Ripple Glass, the glass recycling company founded by McDonald and other brewery principals in 2009.

The transaction between the two privately held companies is expected to close by the end of the year; no financial details will be disclosed. BI

Coca-Cola reports Q3, YTD 2013 results

The Coca-Cola Co., Atlanta, reported its third-quarter and year-to-date 2013 results, noting continued global value share gains in total non-

alcohol ready-to-drink (NARTD) beverages. Worldwide volume grew 2 percent in the quarter and year-to-date, with North American volume up 1 percent in the quarter and year-to-date, the company reports. This marks the 25th consecutive quarter of global value share growth in NARTD beverages, it adds.

Globally, the company experienced volume and value share gains within its sparkling beverages, juice and juice drinks, sports drinks, and RTD tea portfolios. Immediate consumption beverage volume continued to grow, up 2 percent globally in the quarter and year-to-date, which was driven by focused in-store activation efforts and continued cold drink equipment expansion, the company says.

In North America, sparkling beverage volume was even in the quarter with sparkling beverage price/mix growth of 1 percent. Coca-Cola, Diet Coke, Coca-

Cola Zero, Sprite and Fanta all showed sequential improvements compared with last quarter, led by brand Coca-Cola, which was up 2 percent in the quarter. Coca-Cola Zero volume grew 5 percent in the quarter with strong activation around the launch of Caffeine Free Coca-Cola Zero.

Worldwide still beverage volume grew 3 percent in the quarter, with RTD tea volume growing5 percent in the quarter, energy drinks volume growing 4 percent in the quarter, and packaged still water volume growing 5 percent in the quarter.

In North America, still beverage volume grew5 percent in the quarter, with balanced growth across all categories. The company’s RTD tea portfolio delivered double-digit growth in the quarter, fueled by growth in Gold Peak, Honest Tea and Fuze brands. Volume for its juice and juice drink brands grew4 percent in the quarter, with the Simply trademark up 7 percent. Volume for its packaged still water portfolio grew 5 percent in the quarter, led by Dasani. BI

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9 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

PEOPLE INTHE NEWS…The American Beverage Association(ABA), Washington, D.C., announced that Sally Hargis, vice president of corporate strategy at Ozarks Coca-Cola/Dr Pepper Bottling Co.; John Kalil, vice president of Kalil Bottling Co.; Gary Smith, president and chief executive officer of Big Red Inc.; Brian Charneski, president of L & E Bottling Co. Inc.; Stefan Kozak, chief executive officer of Red Bull North America Inc.; Larry Lordi, president of Coca-Cola Bottling Co. of Northern New England; Cliff Ritchie, president and chief executive officer of Carolina Beverage Corp.; Zein Abdalla, president of PepsiCo Inc.; Tim Brown, president and chief executive officer of Nestlé Waters North America Inc.; and Jack Pelo, president and chief executive officer of Swire Coca-Cola USA, were elected to its board of directors.

Chicago-based Phusion Projects promoted Chris Henneforth to chief operating officer.

Van Gogh Imports, Tampa, Fla., hired Joy Suchlicki Vicente as its director of marketing.

Building on an investment partnership with Chicago-based Wirtz Beverage Group and Temple, Texas-based McLane Co. Inc., St. Louis-based Missouri Beverage (MoBev) announced an enhanced leadership team. Derek Holmes became vice president of sales, and John Cissell assumed the new role of director of integration. Wirtz Beverage Group also appointed Joe Burdi as director of the off-premise general market and Kyle Milovanovic as director of corporate chains in its Alliance Division.

Louisville Distilling Co. LLC, Louisville, Ky., appointed Kevin Curtis as the company’s new distillery operations manager. He will manage all distillery operations for Angel’s Envy bourbon.

Louis Glunz Beer Inc., Chicago, appointed Eric Kobus as craft and specialty brands manager and Patrick Neill as on-premise manager.

Castle Brands Inc., New York, announced that Colin Wells has assumed the role of corporate director of mixology.

Drinktec reports growth in attendance

D rinktec 2013, which took placeSept. 16-20 in Munich, attracted66,886 visitors from 183 countries,

representing a 14 percent increase in attendance compared with drinktec 2009. Of these visitors, 62 percent traveled from countries outside of Germany, with 16 percent of the total visitors traveling from the United States.

At the show, 1,445 exhibiting companies represented drinktec 2013’s key themes of energy efficiency, variety, flexibility and safety. Below are some highlights from exhibiting companies:

American Holt, Norwood, Mass., highlighted its portfolio of aftermarket parts for Angelus, Bekum, Carmichael, Continental Can, Crown, Elmar, KHS, Krones, Nissei, Procomac, Sidel, Simonazzi and Solbern machines for the beverage industry.

Ball Corp., Broomfield, Colo., introduced several new can designs, printing capabilities and packaging sizes at the show. It also debuted its Magic Straw, a labeled drinking straw that emerges from a beverage can when opened.

BASF, Florham Park, N.J., offered samples of its B Caffeinated functional dairy beverage with caffeine, B vitamins and Lamequick CE 7203, which provides aeration and a creamy mouthfeel. It also presented its B Energized functional water beverage with B vitamins, to help reduce fatigue and contribute to normal energy-yielding metabolism, and apocarotenal 2 CWD, which provides clear, vibrant coloration.

As a first-time presenter at drinktec,Bell Flavors & Fragrances, Northbrook, Ill., demonstrated its expertise in new beverage concepts and offered tastes of maltless malt drinks, lemonades and cucumber-flavored bitter tonic infusions.

Beneo, Morris Plains, N.J., offered samples of a strawberry-flavored fermented rice drink and a vanilla-flavored rice milk featuring its Nutriz non-dairy, rice-based concentrates and powders for beverages.

Brewers Association, Boulder, Colo., announced the winners of the European Beer Star beer competition. Twenty-three members of its Export Development Program received 36 awards in 22 different categories.

Celanese, Irving, Texas, offered samples of beverages containing its Qorus sweetener system, which is designed to bring authentic taste profiles to reduced-calorie beverages, the company says.

DöhlerGroup, Prosser, Wash., highlighted its Natural Colors, Crystal Clear Colors and Red Brilliance coloring solutions for beverages.

DSM, Heerlen, the Netherlands, showcased the benefits of its brewing portfolio and introduced to visitors its brewmasters, who talked with attendees about ways to save costs, improve processes and develop new products.

Ferrum, Houston, featured its canning and seaming capabilities, especially its New Generation and Easy Rider seaming machines.

GEA Group, Düsseldorf, Germany, highlighted

its portfolio of processing technology including brewery systems, aseptic technology, cleaning technology, freeze concentration technology, filtration systems, pressure homogenizers, plate heat exchangers and centrifugal technologies.

Gebo Cermex, Norcross, Ga., unveiled its EvoFlex high-speed palletizer as well as an evolution of its VersaFilm seamless shrink-wrapper range that offers a new multi-channel shrink tunnel for higher-quality film shrinkage and an improved reduction in energy consumption, the company says.

KHS, Waukesha, Wis., highlighted its Nature MultiPack packaging system and FreshSafe PET packages, which use a thin layer of glass within the polyethylene terephthalate (PET) bottle to ensure freshness and preserve taste, the company says.

Krones, Franklin, Wis., and Micro Matic, Northridge, Calif., demonstrated the BevKeg, a 20-liter disposable PET beverage keg that begins as a preform, is filled and palletized by the customer, is tapped using a BevMate system, and then is compressed when empty for disposal.

Markem-Imaje, Kennesaw, Ga., presented its 9232 S inkjet printer for coding cans, bottles, returnable glass bottles, bricks, flexible pouches, packs and shrink-wraps with high-contrast inks. It is capable of printing 120,000 quality codes an hour, the company says.

Optek, Germantown, Wis., highlighted itsX56 series of photometric detectors, its Control 400 series of photometric analyzers, and its Control 800 series of universal analyzers.

Paxton Products, Cincinnati, showcased its blow-off and drying solutions.

P.E. Labellers, Cincinnati, presented its portfolio of labeling machines for combination labeling, liner-less labeling, hot-melt labeling and cold-glue labeling.

Tate & Lyle, Decatur, Ill., highlighted its Drop by Drop concept for sweetening beverages with Splenda sucralose in a liquid concentrate.

Teledyne Taptone, North Falmouth, Mass., showcased its TapTone 400-FSB pressure inspection machine.

Thonhauser, Vienna, introduced its Smart Gel instant verification cleaning system. Operators can apply Smart Gel with a spray device to hard-to-reach surfaces. The purple gel oxidizes organic residues on the surface and changes to green if it detects any impurities; otherwise, the gel remains purple, the company explains.

Vacuum Barrier Corp., Woburn, Mass., featured its Nitrodose liquid nitrogen injection systems.

Wild Flavors, Erlanger, Ky., presented some of its latest juice concepts including drinks with high juice content and its portfolio of Rainforest Alliance-certified fruit juice concentrates.

The next drinktec show will take placeSept. 11-15, 2017, in Munich. BI

To read the full version of this article, visitbevindustry.com/drinktec2013.

For more information…

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10 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Industry Issues

PepsiCo reports Q3 2013 results

Purchase, N.Y.-based PepsiCo reported net revenue of$16.9 billion in the third quarter

of 2013. This marks 1.5 percent growth in the quarter and 2 percent growth year-to-date, the company reports. Organic revenue grew 3.3 percent in the quarter and 3.9 percent year-to-date, and core constant currency operating profit rose 3 percent in the quarter. However, reported operating profit declined1 percent because of the net impact of mark-to-market losses on commodity hedges as well as certain restructuring and impairment and merger and integration costs in both 2013 and 2012, the company reports.

Specifically, organic revenue for PepsiCo Americas Beverages (PAB) declined 1.5 percent in the quarter, reflecting organic volume that declined 4 percent and the negative impact of concentrate shipment timing offset by effective net pricing of 3 percentage

points. In North America, non-carbonated beverage volume declined low-single digits, and carbonated soft drink volume declined mid-single digits.

Reported net revenue for PAB reached $843 million in the period, marking a 2 percent decline in the quarter and reflecting a 1-percentage-point impact of unfavorable foreign exchange translation. Core constant currency operating profit was even with the prior-year quarter, reflecting the volume decline partially offset by favorable effective net pricing, lower commodity costs and productivity gains, it reports.

“Our year-to-date results give us confidence in achieving our 2013 financial goals, and we continue to believe that we have the right strategies in place to create long-term value for our shareholders,” said Chairman and Chief Executive Office Indra Nooyi in a statement. BI

Starbucks opens $70 million Evolution Fresh facility

Starbucks Coffee Co., Seattle, officially opened its new $70 million state-of-the-art

Evolution Fresh juicery in Rancho Cucamonga, Calif. Capable of sourcing, peeling, squeezing and pressing raw fruits and vegetables, the 264,000-square-foot facility will quadruple the brand’s production of cold-pressed juices and feature advanced technologies, such as high-pressure processing (HPP) machines.

Since Starbucks’ acquisition of Evolution Fresh in 2011, the juice brand has exceeded its growth plans to be in more than 8,000 Starbucks and grocery retailers by the end of calendar-year 2013, the company says. The juicery will enable the company to further grow its market share in the $1.6 billion super-premium juice industry, it adds.

“The opening of this juicery marks a significant milestone in Evolution

Fresh’s history and commitment to making high-quality, never-heated, nutritious juice available to consumers across the country,” said Chris Bruzzo, general manager of Evolution Fresh, in a statement. “We believe cold-pressed is the future of juice and we are leading the charge in changing the way people think about juice.”

The facility’s Rancho Cucamongo location is ideal because of its distance from produce sources, he added. The new facility also employs 190 people, which includes retaining nearly 100 percent of the company’s original partners from the previous juicery as well as creating 65 new positions. It will be Starbucks’ sixth manufacturing site in the United States, adding to the company’s existing network of five roasting plants in Kent, Wash.; York, Pa.; Sandy Run, S.C.; Carson Valley, Nev.; and Augusta, Ga. BI

PEOPLE IN THE NEWS…Nestlé Waters Canada, Guelph, Ontario, announced that Debbie Moore has been appointed president of the company. John Zupo, who had served as president of Nestlé Waters Canada since April 2010, was appointed business executive manager and executive vice president/general manager of tea for Nestlé Waters North America, Stamford, Conn.

PepsiCo Inc., Purchase, N.Y., appointed Sanjeev Chadha to the position of chief executive officer for the Asia, Middle East and Africa (AMEA) regions. In this role, Chadha will report to Chairman and Chief Executive Officer Indra Nooyi and oversee all aspects of PepsiCo’s AMEA business.

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12 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Category Focus

AS CONSUMERS SEARCH FOR THAT HEALTHY, QUENCHING BEVERAGE,non-dairy drinks seem poised to fulfill that need state, experts note. “As more Americans become health conscious, that drives their purchasing decisions with regards to dairy and dairy alternatives,” says Jeffrey Cohen, industry analyst with IBISWorld, Santa Monica, Calif.

Cohen notes that fluid milk has experienced slight declines because of consumer concerns about excess fat, growth hormones and antibiotics. At the same time, plant-based alternatives have experienced notable increases, he says.

“Soy and almond milks have lower calorie counts than traditional milk [and] have basically been embraced as a healthier alternative over the past five years, and that’s the major reason we’ve seen sales increase,” he says.

Virginia Lee, senior research analyst for Chicago-based Euromonitor International, estimates that non-dairy milk alternatives increased 13 percent in terms of value from 2011 to 2012. Among these dairy alternatives tracked were soy, almond and coconut. During that same time period, the market research firm estimates that the cow’s milk category decreased 2 percent, she adds.

Euromonitor also is anticipating strong growth in the future for the segment, Lee says. “We’re estimating 47 percent value growth between 2013 and 2018 in the non-dairy milk alternatives [segment],” she says.

IBISWorld also is forecasting healthy sales for dairy alternatives as per capita fluid milk consumption declines, Cohen says. “We are looking at specifically during the five years to 2018 [and] … in the soy and almond milk production industry, we anticipate that

revenue will increase at an annualized rate of 5 percent during the five years to 2018 to total about $2 billion for the industry," he says. "We feel, as consumers continue to embrace health consciousness, demand for these drinks will increase.”

Cohen adds that dairy milk is an established, ingrained category in the United States, whereas dairy alternatives started to emerge in the last 10-15 years and now are being embraced by consumers.

“These products are still kind of going through their growth phase, and because of just the fact that

they provide healthier alternatives to traditional milk, such as being enhanced [with] vitamin content and lower calorie counts, they’ve been growing much more rapidly,” he says.

SPROUTING SALESHighlighted by both Euromonitor’s Lee and IBISWorld’s Cohen, almond milk continues to gain traction in the non-dairy drinks market.

“Almond milk has been experiencing the most explosive sales growth,” Cohen says.

Euromonitor estimates that 2012 value sales increased 50 percent for almond milk in comparison with 2011, Lee notes.

The dairy alternative segment leaders — Denver-based WhiteWave Foods and Sacramento, Calif.-based Blue Diamond Growers — also have noted the growth of this sub-segment in their earnings reports.

WhiteWave stated that net sales for its North American plant-based food and beverages platform, which includes its Silk soy milk, almond milk and coconut milk products, increased 12 percent in the second quarter of 2013 compared with the same time period in 2012. Those sales were highlighted by the strong growth of Silk almond milk, which increased50 percent in the second quarter, it stated. Almond milk also now accounts for a majority of the plant-based food and beverages unit with an estimated 55 percent share, the company reported.

Information Resources Inc. (IRI), Chicago, estimates that WhiteWave accounted for nearly 57 percent of the refrigerated kefir/milk substitutes/soy milk category for the 52 weeks ending Sept. 8 in U.S. supermarkets, drug stores, mass merchandisers, gas and convenience stores, military commissaries, and select club and dollar retail chains. Its Silk Pure Almond ranked No. 1 in sales for the category with nearly $283 million in sales, which is approximately a 46 percent increase compared with the prior-year period.

Offering a lighter variety, one of the Silk brand's latest releases is Silk Pure Almond Light in Original and Vanilla flavors. Light Original contains 40 calories in each serving, which is one-third fewer calories than Pure Almond Original’s 60 calories, the company says. Light Vanilla also has one-third fewer calories with 60 calories compared with the 90 calories in Pure Almond Vanilla.

A reduction in calorie consumption is among the trends impacting the dairy alternatives category, Euromonitor’s Lee notes.

“With almond milk, packages for the unsweetened variety are touting 30 calories per serving, while the original flavor ranges from 60 to 80 [calories], and that’s

A burgeoning alternativeNon-dairy drinks

capitalize on health and wellness trends

By Jessica Jacobsen

continued on page 14

*Includes brands not listed.

Source: Information Resources Inc., 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 Sept. 8.

Top refrigerated kefir/milk substitutes/soy milk(Individual brands)

DOLLARSALES

% CHANGE VS. PRIOR YEAR MARKET SHARE % CHANGE VS.

PRIOR YEAR

Silk Pure Almond $282,954,700 46.2 26.4 5.7

Silk $221,600,000 -16.3 20.6 -7.6

Blue Diamond Almond Breeze $217,448,500 52.9 20.3 5.1

Private label $103,724,700 11.8 9.7 -0.2

Silk Light $75,795,060 -12.3 7.1 -2.2

Lifeway $51,446,800 29.1 4.8 0.5

Silk Pure Coconut $28,312,870 21.7 2.6 0.2

8th Continent $24,393,830 -11.5 2.3 -0.7

Meyenberg $14,285,670 2.2 1.3 -0.2

So Delicious $14,262,510 21.9 1.3 0.1

Category Total* $1,073,418,000 14.6 100.0 —

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14 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Category Focus

lower than both soy milk and cow’s milk,” she says.

Blue Diamond Growers, a cooperative owned by more than half of the state’s almond growers, announced

in its 2012 annual report that it exceeded $1 billion in sales for its snack food and beverage business. For that time period, the company reported that its Almond Breeze aseptic packaged

almond milk increased 21 percent, while its refrigerated Almond Breeze almond milk was up 59 percent.

Blue Diamond Growers made up approximately 20 percent of the

refrigerated kefir/milk substitutes/soy milk category for the 52 weeks ending Sept. 8 in measured channels, and its Almond Breeze brand ranked No. 3 in sales with more than $217 million, a nearly 53 percent increase, according to IRI data.

Recognizing the growing popularity of almond milk, Blue Diamond Growers is expanding its headquarters to include a 6,500-square-foot almond innovation center.

“The new facility will be a showcase for initiating new almond product concepts for our consumer business and for the most innovative global food companies,” said Mark Jansen, president and chief executive officer of Blue Diamond Growers, in a statement.

The cooperative expects to increase its new almond product sales growth five-fold during the next five years, it said.

ALTERNATIVE OPTIONSAlthough almond milk is showing the strongest growth, segments like soy milk still make up a strong portion of the overall category’s sales.

“We have soy milk being the most consumed; we have almond milk, which is rapidly catching up, being second; and we have coconut milk being third, which is slightly increasing in demand,” IBISWorld’s Cohen says.

Soy milk still is the most consumed dairy alternative; however, it has been slightly decreasing in favor of almond milk during the last five years based on IBISWorld’s report, he adds.

Euromonitor’s Lee affirms that soy milk has continued to decline. The market research firm estimates that sales for the segment were down4 percent in 2012.

Despite the segment’s declining sales, soy milk has found favor among consumers. “Consumer opinion seems to be very positive as of now [for dairy alternatives],” Cohen says. “Soy milk, which has only recently over the past couple of years slowed down in sales,

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continued on page 16

Helios Organic Kefi r was reformulated and rebranded as Helios Greek Kefi r. The reformulation included increasing the protein content from 12 grams to 16 grams for each 1-cup serving and infusing honey into all fl avors except Original and Vanilla. (Image courtesy of Lifeway Foods Inc.)

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16 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Category Focus

has been largely embraced. While this wasn’t the case when it was first introduced, definitely over the past … 10 years it has been increasing in popularity among consumers.”

IBISWorld also has identified coconut milk and rice milk as being on the rise, but Cohen notes that coconut milk producers have faced some challenges when it comes to its growth potential.

For example, the flavor of coconut milk is not as universally appealing as that of almond milk, at least in the United States, Cohen says. “Also, coconut producers over the past five

years have faced rising costs, and basically what that has caused them to do is raise the price of coconut milk to consumers, and that has slightly affected demand negatively.”

However, kefir sales have continued to show growth. Lee notes that the sub-segment’s value sales increased10 percent for 2012.

Sales of Lifeway Foods Inc.’s Lifeway Kefir increased 29 percent to more than $51 million in sales for the 52 weeks ending Sept. 8 in IRI-measured channels.

At Natural Products Expo West in March, the Morton Grove, Ill.-based company unveiled its 14th flavor in its Lifeway Kefir portfolio: Honey Fig. Available in 32-ounce bottles, the cultured milk smoothie was created during Chicago Ideas Week in October 2012, where participants were able to visit Lifeway’s innovation lab and mix and match 45 different flavors, the company says. The company also unveiled Lifeway ProBugs Organic Green Kefir and Lifeway ProBugs Blast. Designed to appeal to kids, ProBugs Organic Green Kefir is a yogurt-like smoothie that contains kale, broccoli, spinach, cabbage and apple. Targeting “tweens,” ProBugs Blast is a new line extension packaged in 3.5-ounce easy-grip containers. The company’s Helios Organic Kefir also underwent some changes in 2013 as the company reformulated and rebranded the product as Helios Greek Kefir. The reformulation included increasing the protein content from 12 grams to 16 grams for each 1-cup serving and infusing honey into all flavors except Original and Vanilla. A new Pear & Honey variety also was released.

“With the changes to our Helios family of kefir products, we now have two distinctly different kefir collections for different palates,” said Julie Smolyansky, president and chief executive officer of Lifeway Foods, in a statement. “Helios Greek Kefir will appeal to consumers looking for a non-fat kefir with extra protein and a sweeter, richer flavor profile. Lifeway Kefir will be the choice for those who prefer the original kefir tart-and-tangy taste. This is an important shift in our product portfolio that not only distinguishes the two brands but also gives the market a clear choice.” BI

continued from page 14

To read about dairy alternatives'potential growth opportunities, visit bevindustry.com/dairyalternatives2013.

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18 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Special Report

Sharing the skills for successBEFORE FINALIZING NEW BEVERAGE PRODUCT CONCEPTS, BEVERAGE-MAKERS need to consider the capabilities of the contract manufacturers and packagers (co-packers) with which they work, according to experts. Laurie Troiani, division manager of product development for Livermore, Calif.-based The National Food Lab, noted in Beverage Industry’s Sept. 18 webinar, “The Path to New Product Success,” that beverage-makers have to ensure that co-packers exist in the market that can produce a given new product. “If you have a certain process and a certain package and a certain distribution that you need to adhere to, [you need to find out] do those co-packers exist out there or are you going to be shut out of the market?” she says.

According to Chicago-based Mintel’s Global New Products Database, more than 4,300 new beverage products launched in the United States in the last year across eight major beverage categories — alcohol, hot beverages, juice drinks, carbonated soft drinks (CSDs), water, ready-to-drink beverages, sports and energy drinks, and “other” beverages.

Among these new products, Bill Foley, chief executive offi cer of Tampa Bay CoPack, Dade City, Fla., says he has noticed more requests for creative and innovative new products as opposed to “me-too” products. “Two years ago and older, every other phone call was, ‘Can you make me a 5-Hour Energy knockoff?’” he explains. Now, the company receives calls from both new startup companies and mature companies wanting to bring new ideas to the market and move away from the mentality of “me-too” products, he says.

“This year, we will do work for 25 brand-new customers, and 20 of them are new product introductions, and none of them are what I would consider a knockoff of something that is in the marketplace,” Foley says. “So that really is a trend that’s new compared to people just looking at an existing product and wanting simply to make a version of it.”

In terms of packaging, Brian Dworkin, president of Castle Co-Packers LLC, New Kensington, Pa., says he has noticed more beverage-makers wanting to use differentiated packaging and in-cap delivery systems for ingredients. “Right now, the labeling of odd-shaped bottles is becoming more prevalent, and specialty caps for delivering ingredients into water are changing the beverage landscape,” he says. “I believe getting the consumer to grab something different off the shelf is fueling these products. Let’s face it, there are a zillion choices these days, and what makes you stand out of the crowd gets you your crack at the consumer. If you can get them to try it once, if they like it and feel that it is worth the money, they will come back for more.”

To keep up with new products

and packaging variations, co-packers have to offer multiple capabilities, says Eric Miller, chief executive offi cer of Brooklyn Bottling Group Inc., Milton, N.Y. In terms of requests, he says his company receives many inquiries about its capacities and capabilities in terms of production and labeling. “It’s a whole myriad of, ‘Can you do 12-packs, 15-packs, 18-packs; can you do tray shrink-wraps; can you do pads?’” he says. “It’s all types of ‘can you’ scenarios.”

Brooklyn Bottling can utilize hot- or cold-fi ll capabilities for 8-, 12-, 16- and 24-ounce cans for energy drinks, carbonated beverages, juices and teas. It also can produce single-serve and multi-serve hot-fi ll beverages in polyethylene terephthalate (PET) bottles and glass bottles in 12-24-ounce sizes, fi ll PET containers ranging in size from 8 ounces to 3 liters as well as custom bottles, and hot-fi ll 64-ounce containers with juice.

Beyond these capabilities, Miller notes that Brooklyn Bottling is willing to make advancements in order to accommodate the requests of larger customers. “We blow our own bottles, so if a customer is large enough — has a large enough business portion for us for a [packaging] agreement — then we can customize a bottle for them,” he explains. In the last year, the company also added reverse osmosis capabilities for water treatment combined with ultraviolet fi ltration and charcoal fi lters at the request of a prominent customer. “It made sense to give the customer the product quality they wanted, and it made sense for us to make an investment.”

Mountain Valley Spring Co., a natural spring bottled water company based in Hot Springs, Ark., recently expanded its capabilities into the private label PET bottled water co-packing business in response to market trends as well. According to data from Chicago-based Information Resources Inc. (IRI), private label bottled water was the top seller in the convenience/PET still bottled water market in the 52 weeks ending Sept. 8 in supermarkets, drug stores, mass-market retailers, gas stations and convenience stores, military commissaries, and select club and dollar retail chains. In fact, private label bottled water controls 19.4 percent of the market share, an increase of 2.2 percent compared with the same time period last year, IRI reports.

Last year, Mountain Valley Spring Co. added a new PET line, bringing its operations capabilities to a total of two PET lines, several bottling lines dedicated to bulk packages in 2.5-gallon and 5-gallon glass bottles,

Co-packer capabilities support new product

development

Tampa Bay Co-Pack operates two filling lines capable of hot-filling or cold-filling beverages into plastic bottles that range in size from 2 ounces to 1 liter at speeds of 80 to 200 bottles a minute. (Image courtesy of Tampa Bay Co-Pack)

>>

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19 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

By Jennifer Haderspeck

continued on page 20

and co-packing capabilities for natural spring water, fl avored water, enhanced water, sparkling water and still water in 1-liter glass bottles with high-end pressure-sensitive labels, says Speed Stodghill, director of sales for the company.

It also manufactures PET bottles onsite through its container division, Veriplas. Its undecorated stock glass bottles are supplied by Owens-Illinois Inc. (O-I), Perrysburg, Ohio. Mountain Valley Spring Co. then uses its pressure-sensitive labelers to label the bottles.

“We see a tremendous opportunity to provide a domestic alternative for store brand and private label 1-liter glass water programs,” Stodghill says. “It is our intent to grow the private label glass family to include one-third-liter and half-liter bottles.”

CUSTOMER SATISFACTIONBut it takes more than beverage-making capabilities to nurture a successful co-packer relationship with a brand. Customers also look for quality, reliability, agility and fair pricing, Brooklyn Bottling’s Miller says. For added quality control, the company invested in a high-performance liquid chromatography tester for caffeine testing as well as new equipment to test air and carbonation levels in cans to give its customers peace of mind through its new in-house testing capabilities, he says. In addition, the company recently added a nighttime quality control manager to ensure that the

company produces at consistent quality 24 hours a day. “We’re not milking our business; we’re investing

heavily as we increase our business, and that’s what your customers want to hear,” Miller says. “They want to close their eyes and know you’re going to produce their products timely and the way it’s intended to be produced with the proper quality and care.”

Castle Co-Packers’ Dworkin notes that technology, especially testing equipment, has helped make it easier for co-packers to uphold quality. “We can take pictures of bottles with cameras or X-rays on our lines as the bottles are running and discard anything that is defective,” he explains. “This is great because it takes human error out of things.”

Even with quality controls in place, co-packers still need to build a relationship of understanding with their customers. “Communication and trust are two of the most important keys to a successful partnership,” says Darold Sauber, director of business development for Dairy Farmers of America (DFA), Kansas City, Mo. “Only when we are able to fully understand our customers’ needs can we formulate a packaging partnership that best meets their needs.”

Castle Co-Packers designed its new plant in Latrobe, Pa., to keep the conversation fl owing and develop an atmosphere of trust with its customers. Along with 12 different lines for handling labeling and processing of hot-fi ll glass and plastic bottles

Brooklyn Bottling’s Eric Miller notes that potential customers often inquire about the company’s capacities and capabilities in terms of producing multipacks and packaging them in shrink-wrapped trays and pads. (Image courtesy of Brooklyn Bottling Group Inc.)

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20 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Special Report

as well as cold-fi ll non-carbonated beverages, carbonated beverages with or without preservatives, water, brewed tea, and hot- and cold-fi ll bag-in-box beverages, the company also set up its offi ces so that there are six conference rooms in which brands can “hang out, have meetings, and just have a very comfortable atmosphere,” Dworkin says.

HELPING THE NEW GUYSTampa Bay CoPack found a way to strengthen its customer relations by helping smaller companies feel comfortable in the market. The company offers a pilot-run program that allows new companies or even mature companies with new products to hire Tampa Bay CoPack to produce small-quantity runs for market testing, sampling or product validation.

“We can present a small-quantity opportunity to run for a marketer where the per-bottle cost is, of course, expensive, but his cash outlay is really minimized because he doesn’t have to run large minimums of 50,000 or 100,000 bottles,” Foley explains. “We’ve actually started putting this program out, and it’s really become one of our strongest suits in terms of allowing that entrepreneur marketer and even mature companies to [test out] product but not make that heavy fi nancial commitment until they can validate that it’s got some ability to sell. It’s really worked very well.”

As part of this, the company tries to be very fl exible

and offer a variety of capabilities, Foley says. The company operates two fi lling lines capable of hot-fi lling or cold-fi lling beverages into plastic bottles that range in size from 2 ounces to 1 liter at speeds of 80 to 200 bottles a minute, he says. It also added a carbonation line in January in response to the high number of carbonation requests it received, he notes. Also in response to customer requests, the company plans to add shrink-fi lm wrapping capabilities for multi-packs to its portfolio of services in 2014. The company also offers services in fi lling, capping, labeling and product confi gurations for sales displays for various bottle shapes and sizes to offer a variety of options to its customers.

Furthermore, the company caters to new beverage brands entering the market by offering assistance with sourcing ingredients, bottles and caps, Foley says.

“My experience is, if there’s 100 [new products], maybe two to fi ve will make it, but I’d like to be the guy that catered to that two to fi ve and enjoy the opportunity because [they] have a successful product,” Foley says.

Co-packers in general serve as a foundation for new beverage products. “Most companies are willing to gamble on an idea, but generally not on equipment, so there will always be a need for contract manufacturing,” DFA’s Sauber says. “The key is anticipating trends and ensuring we are well-positioned to serve our partners’ needs with the right equipment and formats at the right times.” BI

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continued from page 19

Castle Co-Packers’ new facility in Latrobe, Pa., has 12 different lines for handling labeling and processing of hot-fill glass and plastic bottles for various beverage types. (Image courtesy of Castle Co-Packers LLC)

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TO SUBMIT A NEW PRODUCT FOR CONSIDERATION,CONTACT [email protected]

22 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

26 CASCADE PILSNERFull Sail Brewing Co., Hood River, Ore.Telephone: 541/386-2247Internet: fullsailbrewing.comDistribution: Select markets

ANNIVERSARY BEERTo commemorate its 26th anniversary, Full Sail Brewing Co. released 26 Cascade Pilsner. The beer is a Northwest take on a European-style pilsner and features aromas of pine and spice with citrus notes, according to the company’s executive brewmaster. It contains 6 percent alcohol by volume and 60 International Bitterness Units (IBUs) and will be available through the company’s next anniversary (Sept. 27, 2014) on draught and in bottles. A 22-ounce bottle has a suggested retail price of $4.

PROTEIN RELAUNCHVital Pharmaceuticals Inc. (VPX) relaunched its Protein Rush protein drink with an enhanced formulation and new packaging. The drink now contains 28 grams of its proprietary seven-stage protein complex and zero sugars. It is available in Chocolate Dream, Strawberry Dream and Vanilla Dream fl avors. It also moved from cartons to 12-ounce plastic bottles, which have a suggested retail price of $3.49 each.

PROTEIN RUSHVital Pharmaceuticals Inc., Weston, Fla.Telephone: 954/641-0570, ext. 259Internet: vpxsports.comDistribution: National

LEGALIZED HOOCHProst Beverage Co. LLC released Tim Smith’s Climax Moonshine in Georgia and South Carolina. As the star of the Discovery Channel’s “Moonshiners” reality series, Smith has made moonshine illegally for years and now is releasing his product to the market legally. Climax Moonshine is pot-distilled from an original family recipe using corn, rye and barley malt mash, resulting in a 90-proof spirit. A750-ml bottle of Climax Moonshine retails for approximately $29.99. The company also announced plans to launch Grape Lightning and Peach Lightning fl avored moonshines, which are distilled from real fruit instead of fl avored by adding fruit later, it says. Both spirits will be 79 proof and come packaged in 375-ml bottles.

TIM SMITH’S CLIMAX MOONSHINEProst Beverage Co. LLC, Fort Pierce, Fla.Telephone: 772/460-7411Internet: climaxmoonshine.comDistribution: Select markets

GOING GREENAthena Brands Inc. launched Green Mustache organic fruit-and-vegetable juice smoothies in 10-ounce, kid-friendly bottles. Available in Mixed Berry, Strawberry Banana, Orange Mango and Tropical Twist fl avors, each bottle provides one serving of fruit and one serving of vegetables without any added sugar. The drinks also contain ground chia seeds, which offer calcium, omega-3 fatty acids, magnesium and fi ber, as well as coconut water, which offers potassium and electrolytes, the company says. The ingredients are certifi ed organic by the U.S. Department of Agriculture (USDA), certifi ed genetically modifi ed organism (GMO)-free by the Non-GMO Project, vegan and gluten-free. A bottle has a suggested retail price of $4.99.

GREEN MUSTACHEAthena Brands Inc., New YorkTelephone: 917/691-6788Internet: getgreenmustache.comDistribution: Select marketsIngredients: Orange Mango: Organic orange juice, organic mango puree, organic spinach puree, organic kale puree, organic coconut water from concentrate, organic lemon juice and organic ground chia seeds.

PACKED WITH OMEGASOceans Omega LLC, a wholly owned subsidiary of Mycell Technologies LLC, introduced Omega Infusion dietary supplement shots that provide 250 mg of eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) omega-3s in each 2-ounce bottle. The shots are available in Peach Mango, Raspberry Lemon and Pink Grapefruit fl avors for a suggested retail price of $1.99.

OMEGA INFUSION SHOTOceans Omega LLC, Paramus, N.J.Telephone: 855/366-3423Internet: omegainfusion.comDistribution: Select marketsIngredients: Peach Mango: Water, natural and artifi cial fl avors, citric acid, calcium disodium EDTA, gum acacia, sucralose, potassium benzoate, potassium sorbate and ascorbic acid.

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23 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

TEQUILA MEETS COFFEEBuilding upon its Cabo Wabo Tequila brand, Campari America, a wholly owned subsidiary of Davide Campari-Milano S.p.A., released Cabo Diablo coffee liqueur featuring 100 percent blue weber agave Cabo Wabo Blanco Tequila. The tequila imparts sweet notes of blue agave, honey and pepper, while the coffee liqueur base offers fl avors of roasted Arabica coffee, vanilla and chocolate, the company says. With 35 percent alcohol by volume, the spirit is best served as a chilled shot, it adds. A 750-ml bottle has a suggested retail price of $22.99.

CABO DIABLOCampari America, San FranciscoTelephone: 415/315-8000Internet: cabowabo.comDistribution: Select markets

ENERGY-ENHANCEDRed Rose Tea launched a line of Red Rose Energy Teas in single-serve cups. Available in French Vanilla and Hazelnut fl avors, the black teas are enhanced with caffeine, providing 60 mg of caffeine versus the typical 40 mg of caffeine in tea, the company says. This caffeine boost targets consumers who enjoy the taste of tea but sometimes turn to coffee for a pick-me-up, it adds. A 12-count box has a suggested retail price of $8.99.

RED ROSE ENERGY TEAS Red Rose Tea, Little Falls, N.Y.Telephone: 877/248-2477Internet: redrosetea.comDistribution: Select markets

MIXED ANDREADY-TO-DRINKIndependent Distillers launched Big Shots 50-ml prepared shots. The shots are available in Kamikaze, Cosmo, Lemon Drop and Margarita varieties and contain 16.5 percent alcohol by volume. A single shot retails for approximately $1.75. Big Shots also are available in four-packs and 10-packs for $6.99 and $15.99, respectively.

BIG SHOTS Independent Distillers, San Rafael, Calif.Telephone: 925/242-2275Internet: independentdistillersusa.comDistribution: National

BEATING HEART-HEALTH ISSUESBeat Juice Beverage Co. reformulated its all-natural Beat Juice, which originally was designed to help fi ght high blood pressure, cardiovascular disease and hypertension, the company says. The new formula features an enhanced fl avor and nutritional profi le and is genetically modifi ed organism-free, it adds. A 16.9-ounce bottle has a suggested retail price of $5.99.

RED, WHITE AND SPARKLINGBeam Inc. added Prosecco, Chardonnay, Cabernet Sauvignon and Pinot Grigio wines to its Skinnygirl Wine Collection. Skinnygirl Prosecco, the brand’s fi rst sparkling wine, is a seasonal release available through the New Year or while supplies last. Each wine contains 100 calories in a serving. Skinnygirl Prosecco, Chardonnay, Cabernet Sauvignon and Pinot Grigio have suggested retail prices of $19.99, $11.99, $13.99 and $11.99, respectively, for a 750-ml bottle.

SKINNYGIRL PROSECCO,CHARDONNAY, CABERNET SAUVIGNON AND PINOT GRIGIOBeam Inc., Deerfi eld, Ill.Telephone: 847/948-8888Internet: skinnygirlcocktails.comDistribution: National

BEAT JUICEBeat Juice Beverage Co., PhoenixTelephone: 310/801-8334Internet: drinkbeatjuice.comDistribution: Select marketsIngredients: Pomegranate juice, Concord grape juice, beet juice, hibiscus extract and MegaNatural Gold grape seed extract.

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24 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

CALIFORNIA BRANDYFor the fi rst time in more than a decade, Brown-Forman Corp. introduced a new brandy under its Korbel brand. Korbel 12 is a limited-edition, handcrafted California brandy made with premium grapes that is distilled in a copper-lined still, aged for a minimum of 12 years in hand-coopered Appalachian oak barrels, and blended from individually selected barrels. It features fl avors and aromas of fruit, vanilla, cedar and spice, the company says. With only 1,800 six-bottle cases of Korbel 12 California Brandy produced, it is available in select markets only with a suggested retail price of $39.99.

KORBEL 12Brown-Forman Corp., Louisville, Ky.Telephone: 502/585-1100Internet: korbel.comDistribution: Select markets

MEXICAN FLAIRBaja Brewing Co. brought its fl agship Cabotella Mexican Ale to four Southwestern states in America. Theale is crafted in small batches using100 percent malted two-row barley and all-natural ingredients. The result is a golden, medium-bodied, 5.5 percent alcohol by volume blonde ale that brings together a premium ale fl avor and the appeal of an authentic cerveza, it says.A six-pack of Cabotella Mexican Aleretails for approximately $8.99.

CABOTELLA MEXICAN ALE Baja Brewing Co., San Jose del Cabo,Baja California Sur, MexicoInternet: cabotella.comDistribution: Select markets

BLENDED AND READY TO SERVENatalie’s Orchid Island Juice Co. added Orange Mango, Strawberry Lemonade and Orange Pineapple varieties to its line of all-natural juices. The hand-crafted juices have no added sugar or preservatives and are vegan, gluten-free and kosher. Natalie’s Hand Crafted Orange Mango juice is available in 16- and 32-ounce bottles; Strawberry Lemonade comes in 8-, 12-, 16- and 64-ounce bottles; and Orange Pineapple is available in 16-, 32- and 64-ounce bottles.

COLORFUL OPTIONSThe Clairvoyance Group released 138 Water in eight different colored bottles, enabling consumers to complement their style or mood with their water, it says. Initially available at select retailers in Los Angeles and New York, the brand consists of purifi ed drinking water that is processed using reverse osmosis as well as carbon- and micro-fi ltration; ultraviolet- and ozone-treated; and infused with electrolytes. It is available in Leave-Me-Alone Black, Cool Blue, Going Green, Sunshine Yellow, Orange You Glad We Made Orange, Sexy Red, Pretty in Pink and Funky Purple varieties that are packaged in coordinating colored bottles that are sold individually and in six-packs of each color. A 1-liter bottle has a suggested retail price of $1.99.

138 WATER The Clairvoyance Group, Beverly Hills, Calif.Telephone: 424/332-3873Internet: 138water.comDistribution: Select markets

FUNCTIONAL FLAVORSNeuro drinks will add six new fl avors to its most popular Sonic, Bliss and Sleep functional beverages in January. Blood Orange Passion and Super Fruit Infusion join the Sonic line of energy-inducing beverages; White Raspberry and Summer Citrus Berry join the Bliss line of stress-reducing drinks; and Tangerine Dream and Mellow Mango join the Sleep line of restful-sleep-promoting beverages. Furthermore, the labels of the bottles will showcase a new design, highlighting the benefi ts of the drinks and the new fl avors.

NATALIE’S HAND CRAFTED JUICE BLENDS Natalie’s Orchid Island Juice Co.,Fort Pierce, Fla.Telephone: 772/465-1122Internet: orchidislandjuice.comDistribution: Select marketsIngredients: Orange Mango: Orange juice and mango puree.

NEURO SONIC, BLISS AND SLEEP FLAVORS Neuro drinks, Santa Monica, Calif.Telephone: 855/696-3876Internet: drinkneuro.comDistribution: NationalIngredients: Bliss White Raspberry: Carbonated water, L-theanine, choline alphoscerate, chamomile, phosphatidylserine, crystalline fructose, natural fl avors, citric acid, malic acid, potassium sorbate, sodium benzoate, sucralose, acesulfame potassium, soy lecithin and cholecalciferol.

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26 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

WITH A CAREER SPANNING 35 YEARS IN THE BOTTLED WATER BUSINESS, KIM Jeffery has seen a drastic change within the beverage industry since he joined Perrier Group of America in 1978. At that time, the U.S. water category primarily consisted of 5-gallon containers and was a $250 million business, he says. Although the company’s flagship Perrier sparkling water brand was available overseas for nearly a century prior to its debut in the United States, much of the U.S. beverage industry did not believe that Americans would pay $0.79 for a bottle of water, he adds. Jeffery and his team, however, thought otherwise and set out to prove them wrong.

Shortly after Perrier’s U.S. launch, the brand became “an instant success” in the marketplace, notes Michael Bellas, chairman and chief executive offi cer of Beverage Marketing Corp., New York. In fact, the brand even inspired more than 40 works of art by Andy Warhol in the ‘80s, which the company is paying tribute to now via a series of limited-edition bottles.

“[Perrier] was an alternative to both traditional non-alcoholic beverages, like [carbonated soft drinks], and it became in social settings almost a replacement for somebody that didn’t want to drink an alcoholic beverage but still wanted to have sophistication and something that would be appropriate in a cocktail setting,” Bellas explains.“It was a very, very big success.”

Today, Perrier Group of America, now known as Nestlé Waters North America (NWNA), Stamford, Conn., is the largest bottled water company in the United States with volume share of nearly 32 percent and revenue share of almost 36 percent, according to Beverage Marketing Corp. To put that into perspective, NWNA’s volume share of the market is approximately

double that of its closest competitor, Bellas says. Comprising 12 bottled water brands across all of the category’s segments — single-serve, sparkling, imports, bulk and home-and-offi ce delivery — as well as three tea brands across multiple price points, the company has grown from $20 million in sales in 1978 to more than $4.2 billion in sales last year.

By comparison, the entire bottled water category reached nearly $12 billion last year, and volume reached a historical high of almost 9.7 billion gallons, which represents the category’s strongest growth in fi ve years, Beverage Marketing Corp. reported in its “Bottled Water in the U.S.” analysis.

This year, NWNA expects to continue its growth but under new leadership. In February, Jeffery stepped down from his 20-year role as president and chief executive offi cer of NWNA and assumed a non-executive chairman position prior to his retirement in February 2014. During his tenure as president and chief executive offi cer with the company, sales increased sevenfold, which is a signifi cant accomplishment, Beverage Marketing Corp.’s Bellas notes. Although

Nestlé Waters North America evolves

products, packaging to suit consumer needs

Cover Story

Spearheading the rise of water

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27 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

Jeffery left some pretty big shoes to fi ll, his replacement is more than qualifi ed to take the reins.

After joining NWNA 25 years ago and spending three years as the president and chief executive offi cer of Nestlé Canada, Tim Brown took over as the president and chief executive offi cer of NWNA in February. Prior to joining Nestlé Canada, Brown was executive vice president of retail operations for NWNA, where he worked closely with Jeffery to help position the company as the No. 1 bottled water company in North America.

“I am excited to continue to build on the legacy achieved by Kim Jeffery,” Brown said in a statement. “Kim led the company from a single brand to the largest bottled water company in North America, while emphasizing environmental responsibility and cultivating the very best corporate culture in the food and beverage business.”

As long-time friends and co-workers, Brown and Jeffery share a vision for the industry that Brown plans to continue as the company’s new leader.

RISING TO THE TOPOne such legacy that Brown will continue to encourage is healthy hydration. As a result, he and Jeffery expect bottled water to eclipse the carbonated soft drinks (CSDs) category and take over as the No. 1 beverage category in the United States within fi ve years.

“It’s a question of when, not if,” Jeffery says. “It’s going to happen.” In fact, bottled water already outsells CSDs in 15 U.S. grocery markets, he says.

The company’s fastest-selling brand is Nestlé Pure Life, Brown says. Because there is such a growing demand within the U.S. market for portable, accessible, high-quality water, he expects the brand to double its sales within 10 years. Already, it is the No. 1 single-serve brand based on volume, Beverage Marketing Corp.’s Bellas affi rms.

One of the primary factors leading to the rise of bottled water is consumers’ increasing interest in health and wellness, Brown says.

Considering the high obesity rate of U.S. consumers and governmental attempts to tackle this issue, such as New York Mayor Michael Bloomberg’s proposed ban on soft drinks larger than 16 ounces, bottled water is easily accessible as a healthy solution — and consumers seem to have noticed.

“Consumers are smart; they realize [water] is the best they can put in their body, so they’re doing it at a greater frequency,” Brown says. “They’re inherently drinking less of other beverages and more water, so that’s driving the category growth.”

This runs parallel with the Partnership for a Healthier America’s new Drink Up initiative, of which NWNA is a supporter (see page 34), in addition to NWNA’s many other partnerships and campaigns to promote healthy hydration.

PLASTIC PIONEERSIn addition to delivering a healthy, hydrating product portfolio, NWNA realized the importance of convenience for consumers and released its fi rst

PET bottle in 1989, which revolutionized the industry, Jeffery says. At that time, CSDs were so dominant that it was challenging to fi nd a bottle manufacturer that would step outside of that category, he explains. After struggling with this issue for a few years, NWNA realized it would need to make its own bottles in order to compete. Therefore, in 1994, it began manufacturing its own preforms and blowing its own bottles. Doing so enabled the company to lower costs, improve bottle quality and benefi t the environment, Brown says.

Becoming a vertically integrated company also enabled it to capitalize on one of the most versatile beverage categories in existence.

“In 1992, single-serve waters were really not on the map,” Beverage Marketing Corp.’s Bellas says. “[NWNA was] one of the fi rst ones to realize the potential for single-serve waters. It was the perfect product for the consumer looking for something good for you. It was dietetic, it was all natural, it didn’t have to be chilled … and it had more usage occasions than any other product we’ve ever seen. … Plus, it has this wonderful good-for-you halo.”

Although putting its waters in single-serve PET bottles opened up numerous new consumption opportunities for consumers, NWNA didn’t stop there. Currently, NWNA’s Resource, Arrowhead and Deer Park brands are packaged in bottles made from 50 percent recycled PET (rPET). And, within the next year, NWNA plans to open another facility for making rPET, which will enable at least one more brand to be packaged in 50 percent rPET, Jeffery says. Within fi ve years, the company aims to have some amount of recycled material in all of its packaging, Brown adds.

“We think that recycled plastic material is going to be a very important source of material in the future,” Brown says. “There’s a fi nite amount of resources in the world, so why not use the ones that are available to be used over again, hence recycling?”

However, the stream of rPET is limited by the amount of bottles that consumers recycle, Jeffery explains. Therefore, he introduced the concept of Extended Producer Responsibility for consumer packaging, which brings the fi nancial responsibility of recycling to the industry and works to increase consumers’ access to curbside recycling and away-from-home recycling for bottles and all other product packaging.

“If you look across the country, the average collection of solid waste that’s recyclable is 34 percent, and it’s not moving anywhere,” he says. “I believe that in order for us to get rates of recycling up — that includes all types of plastic, all types of corrugate, aluminum, everything that can be recycled and reused again — I believe that industry’s going to have to be part of the solution, and that’s where the idea of Extended Producer Responsibility comes in.”

Offering three of its brands in 50 percent rPET helps NWNA to showcase its devotion to recycling.

“Part of our mission is to show people that if you recycle it, we’ll use it again,” Jeffery says. “Interestingly, bottled water recycling rates are now up almost to 40 percent, where the rest of the beverage industry for PET is still around 30 [percent]. So just in the last two years, we feel like we’ve moved the needle.” NWNA aims to increase the

continued on page 28

By Stephanie Cernivec

Nestlé Waters North America’s Tim Brown (left), president and chief executive offi cer, and Kim Jeffery, chairman. (Photo by Susan Farley)

>>

Bottles of Resource, Arrowhead and Deer Park all contain 50 percent recycled PET plastic. (Images courtesy of Nestlé Waters North America)

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Cover Story

plastic bottle recycling rate even further to 60 percent by 2018.

Although not all of the company’s bottles include recycled content, they have undertaken their own strategies for being friendlier to the environment throughout the years. According to Jeffery, NWNA pioneered what is known today as “lightweighting” more than 15 years ago but only made dramatic reductions of the plastic in the last 10 years.

“Starting in the late 1990s, every time we put in a new line and bought new bottle-blowing equipment, we kept trying to push how much lighter the bottle could go and how we could make it a better bottle,” Brown explains. “It wasn’t really until 2007 that we publicized that we’d been working on lighter bottles.”

That year, NWNA released its next-generation half-liter Eco-Shape bottle, which uses an average of 60 percent less plastic than its original half-liter PET bottle.

“It was a quantum leap in light-weighting and, in fact, so much so that consumers really didn’t like it right away,” Jeffery says. Consumers associated a thinner bottle with fl imsiness instead of sustainability, so the company had to help them understand why the reduction of plastic was good, he explains.

Besides the thickness of the bottle, its shape and size is another way that the company keeps up with consumer desires, such as portion packaging for kids

and sports closures for exercising or competing in sports. For instance, NWNA offers 8-ounce bottles of its Nestlé Pure Life water for children and 11-ounce Aquapod bottles of its regional spring water brands for preteens. The bottles also enable kids to write their names on the label so that they know which bottle is theirs, Brown notes. The company also offers 700-ml bottles with sport tops for active adults who are looking for a more convenient way to hydrate, he says.

TEA TIMEFurther building upon its health and wellness platform, NWNA took on a new role in the ready-to-drink (RTD) tea category in 2011 by acquiring the Sweet Leaf Tea Co., which makes organic, all-natural, home-style iced teas, lemonades and other natural beverages.

“We saw tea as an emerging category that had really positive attributes toward health and wellness,” Brown says.

NWNA originally made a $15.6 million investment in the tea company in 2009. The following year, the Sweet Leaf Tea Co. acquired Tradewinds Beverage Co., which makes all-natural, kettle-brewed iced teas and juices. NWNA fully acquired the Sweet Leaf Tea Co. in 2011.

Most recently, the Nestea brand came under the company’s umbrella after the Beverage Partners

continued from page 27

Specialized packaging, such as the 11-ounce Aquapod bottle and sport-top Nestlé Pure Life bottle, cater to various consumer need states. (Images courtesy of Nestlé Waters North America)

>>

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29 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

Worldwide joint venture between The Coca-Cola Co., Atlanta, and Nestlé dissolved. Throughout the 20-year partnership, Nestea was distributed using the Coca-Cola bottling system. Now, NWNA will be responsible for distributing Nestea in the United States, Brown explains.

Since the transition, the company has enhanced the Nestea brand in a few ways. In September, NWNA took its fi rst step into the U.S. liquid concentrates segment by introducing Nestea Liquid Water Enhancers made from real tea leaves.

“There’s a big race to get into these concentrated drops by all kinds of manufacturers,” Brown says. “We think this really stands out as the clear and only tea option.”

The RTD Nestea teas also got a formulation makeover, enabling the company to reduce the amount of sugar in the product but improve the taste, he says.

“It’s a real priority to get our new formulas out there, because we believe it’s signifi cantly better than what’s been sold in the past on Nestea,” Brown says.

Because the tea category mirrors the bottled water category in many ways, it is a natural fi t for NWNA.

“We see tea as a diverse category, just like water,” Brown says. Preferences for pricing, packaging, type of tea and fl avor profi le all vary among consumers, he explains.

“Some tea consumers want it sweet, and some tea consumers would prefer it not to be sweet; some like to drink it out of a can, and some like to drink it out of a plastic bottle,” he says. “What you’ll see in this diverse category is brands have taken on a role to meet certain consumer groups, and we’re going to need a stable of brands to be able to do that, so [Sweet Leaf, Tradewinds and Nestea] have different roles in our stable.”

Sweet Leaf, for instance, is a high-end, super-premium, more whimsical brand that features organic ingredients. It is sold mostly in glass bottles and competes with products that are aimed at health enthusiasts who are particularly concerned about the ingredients in the products they consume, Brown explains. Tradewinds also is a premium brand but targets tea purists, because it has a strong tea taste and a slow-brewed positioning, he adds.

Nestea, on the other hand, offers a more mainstream taste profi le. “We see Nestea as popular brand meets the popular palate of sweetness meets the popular package types and price points,” Brown says.

With roots planted fi rmly in the tea categoryand growth on-track to place bottled water in theNo. 1 spot within the beverage industry, NWNA has a transformational few years ahead. BI

Nestea’s ready-to-drink formulation has been enhanced for a more fl avorful, less sugary beverage. The company also recently extended the brand with Nestea Liquid Water Enhancers. (Images courtesy of Nestlé Waters North America)

>>

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Up Close With...

WHEN TYLER GAGE, CO-FOUNDER AND CO-CHIEF EXECUTIVE OFFICER OFRuna LLC, left California for South America, he was not planning to build a beverage company. “I originally went down to study indigenous languages in the Amazon,” he explains. “I had a professor in school who worked with these tribes in the Amazon, and I went with him primarily to do linguistic research.”

While working with these Amazonian tribes, Gage experienced his first taste of guayusa, a brewed beverage produced from the leaves of a caffeinated Amazonian holly tree ilex guayusa. “The whole community, particularly the hunters, gets up at 3 in the morning, and they boil these huge clay pots full of guayusa,” he describes. “They sit around the fire, drink guayusa, tell stories, interpret dreams, and do the whole routine. They brewed it like tea, so they would harvest leaves in these big pots and drink it like tea.”

However, guayusa is not technically tea; it’s a

member of the holly family, Gage says. As a different species, guayusa has a higher caffeine content than tea — with the brewed format offering about as much caffeine as espresso — and twice the antioxidant content of green tea, according to the company. “So, the combination is what we call balanced, clean energy from the mix of antioxidants and caffeine,” Gage says.

Guayusa also differs from tea in terms of flavor, Gage says. “The leaf doesn’t have any tannins, so it’s not astringent like green or black tea,” he says. “It’s got a super smooth flavor, and that’s a really big point of

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31 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

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(Image courtesy of Runa LLC)

difference, because we can create unsweetened, zero-calorie products with no sugar.”

From his Amazonian experience with the brewed beverage, the idea for the Brooklyn, N.Y.-based company and its flagship Fair Trade, organic Runa guayusa beverage was born. Gage partnered with his long-time friend Dan MacCombie to start a guayusa beverage company that would support indigenous farming communities in the Amazon.

“Our mission is to improve livelihoods for Amazonian farmers, and we do that by being a successful company,” Gage says. Runa purchases its more than $120,000 worth of guayusa leaves directly from more than 2,000 farming families in Ecuador. This economic partnership, in turn, supports a sustainable farming initiative that preserves the rainforest instead of cutting down trees for harvesting, he explains. Through its spin-off nonprofit organization, The Runa Foundation, the team also conducts experiments to find new crops and new species that the farmers can grow sustainably. It also helps create better livelihoods for the farming communities by supporting the creation of farmer cooperatives and providing funds to help the Ecuadorian communities invest in their own development. The company plans to expand its economical and social efforts into Peru, he adds.

This social mission, along with Runa’s Fair Trade and organic characteristics and health benefits, resonates with young, professional consumers, who have become the brand’s target audience. In addition, because Runa is a functional beverage that provides caffeine, it can serve as an alternative to other caffeinated products, Gage says. “The main times that people are drinking Runa is from

11 a.m. to 3 p.m.,” he says. “People might not want a third cup of coffee [at that time, and] they aren’t necessarily going to drink a mainstream energy drink at work. They want something that’s refreshing [and] healthy to get them through the rest of the day.”

The company and the brand’s name, Runa, also speak to this aspect of clean, refreshing energy. In the indigenous Kichwa language, which is spoken by Amazonian tribes in Ecuador, “Runa” has approximately 20 different meanings, Gage explains. The simplest meaning is “a fully alive person,” or a human who embodies the life force of a human being and is full of life, energy, awareness and passion, he says. The energy provided by Runa beverages fuels the lives of consumers to enable them to create, study and work, according to the brand’s website.

Runa offers two products in different packaging formats and flavors. Runa energy drinks come packaged in cans, whereas Runa tea is available in ready-to-drink (RTD) glass bottles, boxes of tea bags, and loose-leaf tea tins. With this portfolio, the company earns a few million dollars in sales each year, with the RTD teas being the most popular format, Gage says.

The brand’s distribution is primarily focused on the natural channel, par-ticularly on the East and West coasts, Gage says. Runa products are available in almost every region that Whole Foods Market covers, with the brand recently gaining approval to launch in Midwest stores next spring, he says. In total, the functional beverages are available in more than 4,000 locations across the country, including grocery and specialty retailers, local co-ops, and collegiate and corporate foodservice venues. Additionally, the company is pursuing some direct-store-distribution opportunities in New England to help the product gain further distribution in the region.

Looking to the future, the Runa team is prepared to invest its time and resources in helping the company grow and, in turn, support Amazonian communities. “Our way of doing business is something that we care a lot about,” Gage says. “Obviously, Runa is our passion, and we love guayusa, but if we can make our business work, in many ways, it means so much more just for this movement of responsible business and really creating an impact on more communities through business.” BI

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Channel Strategies

BETWEEN 2010 AND 2012, THE MASS MERCHANDISERS CHANNEL DECLINED nearly 3 percent, according to data from Euromonitor International, Chicago. However, the decline can be attributed to evolutions within the channel, such as an increasing focus on grocery and urban sprawl, which is transforming many traditional mass merchandisers into other store formats.

For instance, Bentonville, Ark.-based Wal-Mart Stores Inc. has converted many of its stores from mass merchandisers to hypermarkets — a supercenter that combines a supermarket and department store — by adding more space for groceries, says David McGoldrick, research associate with Euromonitor.

However, mass merchandisers also are shifting their focus to smaller-sized versions of their stores, which don’t fit into the mass merchandiser channel, he adds.

“There’s a lot of polarization going on,” McGoldrick says. “At the same time as they’re increasing their number of hypermarkets and making stores bigger, there’s also a focus on smaller stores that are either to be put in urban locations or that can [accommodate] smaller towns that don’t quite get the traffic that a larger store would demand.”

Shopko Stores Operating Co. LLC, Green Bay, Wis., for example, recently merged with Pamida, Omaha, Neb., and rebranded most of the stores as Shopko Hometown. The stores are smaller than a standard mass merchandiser and are located primarily in rural towns, says Jared Koerten, senior analyst with Euromonitor.

“They are aimed at preventing people from having to drive to the next big town in order to shop at a Target or a Walmart,” he explains. “They’re really targeting with these smaller-format stores these underserved rural locations.”

On the other hand, Minneapolis-based Target Corp. has created smaller-scale CityTarget stores that cater to the underserved urban crowd, Koerten says.

Similarly, Wal-Mart Stores Inc. has scaled down its stores by developing Walmart Neighborhood Markets,

Evolving for massive appealMass merchandisers

polarize in size to appeal to urban, rural consumers

Wal-Mart Stores Inc. is one of many mass merchandisers shifting its focus to smaller-sized versions of its stores to accommodate urban and rural areas. (Image courtesy of Wal-Mart Stores Inc.)

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33 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

Walmart Express and, more recently, Walmart On Campus.

“[Walmart On Campus stores] are basically a combination of convenience stores and drug stores, so slightly larger than convenience stores, and [they] have a pharmacy, but they also sell a small range of grocery products,” McGoldrick explains. Located on select college campuses, the stores offer bulk-size drinks, such as 24-packs of bottled water and 12-packs of sports drinks, which are slightly larger packaging sizes than convenience stores typically carry, he adds.

ONE-STOP SHOPPINGDespite having fewer stores in the market, mass merchandisers have grown their share of beverages in the last few years, Euromonitor’s Koerten notes. Within the channel, the two most-popular beverage categories are bottled water and carbonated soft drinks, McGoldrick adds. These categories also top the beverage charts within hypermarkets and club stores, he says. They are particularly popular in large retailers because of their availability in bulk quantities, and shoppers often stock up on groceries at these large-format stores, he explains. This plays into consumer desires for both convenience and value.

Offering food and beverages in addition to non-grocery items also enables one-stop shopping for consumers, which can boost a store’s number of purchases, McGoldrick notes.

In the five years leading up to 2013 when consumer sentiment was low, consumers shifted their spending to consumables, such as food and beverages, according to IBISWorld’s June 2013 report “Warehouse Clubs & Supercenters in the US.” This year, the consumables segment is projected to be the largest part of the club store and supercenter channels, accounting for 47 percent of total revenue, it adds.

Private-label products also have become more popular in the club store channel within the last five years, according to the report. For instance, Costco Wholesale Corp., Issaquah, Wash., is the only retailer that has a partnership with Green Mountain Coffee Roasters Inc. to make private-label K-Cups for the Keurig single-cup brewing system, Euromonitor’s McGoldrick notes.

Although traditional mass merchandisers aren’t projected to perform well because of their conversions into other channels, the

hypermarket, or supercenter, channel is expected to continue performing well moving forward, he says.

Supercenters and club stores are two of the fastest-growing retail channels,

growing 4.5 percent between 2008 and 2013, according to IBISWorld’s report. This year, revenue in the channels is projected to rise 6.7 percent due to rising consumer disposable income, it

adds. Their ability to offer low-priced merchandise is the primary driver of their success; however, retailers’ move toward smaller stores will offer some competition, the report notes. BI

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34 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Between Drinks

AFTER KICKING OFF HER “LET’S MOVE” INITIATIVE IN 2010 TO LEAD CHILDREN TO HEALTHIER LIFESTYLES, first lady Michelle Obama, as well as actress Eva Longoria, joined a new movement designed to encourage people of all ages to drink more water more often. Created by the Partnership for a Healthier America (PHA), Drink Up brings together more than a dozen public- and private-sector partners to make this goal a reality.

Key supporters of the initiative include water fi lter companies, public drinking stations, reusable water bottle companies, industry organizations, and bottled water brands such as PepsiCo’s Aquafi na, The Coca-Cola Co.’s Dasani, Hint Inc.’s Hint, Wat-aah!’s Wat-aah!, Beverly Hills Drink Co.’s Beverly Hills 9OH2O, Danone’s Evian Natural Spring Water, and Voss of Norway ASA’s Voss. These brands will integrate the Drink Up logo on products and promote the initiative through public events; print, digital, social and out-of-home media efforts; and funding.

In particular, Wat-aah! recently kicked off a social media campaign across its channels using the offi cial hashtag #DrinkH20 to engage fans. To further promote the initiative and drive traffi c to the campaign’s site, youarewhatyoudrink.org, the brand featured the Drink Up logo and hashtag in its Back-2-School marketing campaign in print and online ads in teen magazines and websites as well as poster installations in the schools where Wat-aah! currently is sold. Wat-aah! also will cross-promote the initiative via concerts and events in key cities. Last month, the brand debuted a 60-second co-branded commercial in collaboration with kids music group Yung Day 1 to support the initiative and encourage kids to drink more water. In October, the brand launched a limited-edition Wat-aah! Boo Halloween bottle featuring the Drink Up logo in the form of a spider.

Likewise, Nestlé Waters North America’s Nestlé Pure Life, Resource, Arrowhead, Deer Park, Ice Mountain, Ozarka, Poland

Springs and Zephyrhills brands will feature the Drink Up logo on select packaging. The company also will promote Drink Up on its delivery trucks and through social media messaging and

communications. PHA also invited consumers to visit youarewhatyoudrink.org to join in a virtual “Cheers” to water or to fi nd the initiative on

Instagram and tag their photos using the hashtag #DrinkH2O. Within the next year, supporters of the effort will carry the Drink Up logo on nearly 300 million packs

of bottled water; more than half a billion bottles of water; 200,000 packages of reusable bottles; and

more than 10,000 reusable bottles, PHA says. Additionally, more than 10,000 outdoor public taps are expected to carry the logo within the next few years. Approximately 1 billion media impressions have already been committed, including online and digital out-of-home media, it adds.

“PHA was launched a few short years ago to engage the private sector in helping make the

healthy choice the easy choice for busy parents and families,” Chief Executive Offi cer of PHA

Lawrence A. Soler said in a statement. “Drinking more water is an easy choice that nearly every one of

us — regardless of where we live, what we do, or how busy we are — can make every day. We applaud the efforts of the

supporters who have joined us today, and we thank them for their contributions to an effort that we hope will serve as a continual reminder that you are what you drink, and when you drink water, you Drink Up.” BI

Get healthy and drink up

Like us on Facebook: facebook.com/beverageindustry Follow us on Twitter: @BeverageInd Connect with us on LinkedIn: Beverage Industry Magazine Professional Network

(Images courtesy of PepsiCo, The Coca-Cola Co., Danone, Hint Inc., Nestlé Waters North America, Voss of Norway ASA, Wat-aah!, and Beverly Hills Drink Co.)

By Stephanie Cernivec

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Between Drinks

LIVING INA COLORFUL WORLD

F or years, consumers have been able to walk into a Starbucks café and order a nonfat grande extra hot latte with whip without any

questions asked. This ease of customization could have tipped us off years ago to the customization trend that we’re seeing today. Nevertheless, the number of liquid concentrates hitting the market confirms that it’s in full force with consumers. And soon, a new line of ink coatings might bring the trend to retail shelves in a different way.

Hartness International, a division of Illinois Tool Works Inc. (ITW), is in the process of releasing its electrostatically applied ultraviolet (UV) ink coatings, which will allow beverage-makers to turn a clear glass bottle into a colorful marketing tool (see page 40). Using any color on the Pantone scale, glass bottles can be coated in ink for a translucent or opaque color effect. Beverage bottles could be the new Apple iPod Nano — when it comes to a colorful exterior, anyway. Plus, they tie into consumers’ desires to be more eco-friendly. According to Sean Hartness, vice president of Hartness International, the bottles can be recycled with other clear glass bottles because the ink coating is burned off as a carbon derivative when it’s put back into the furnace.

Considering the continuing proliferation of SKUs in the beverage space, using primary packaging to differentiate a product is more important than ever. And in a customizable culture such as ours, there could be many colorful options ahead when it comes to beverage containers.

BY STEPHANIE CERNIVECMANAGING EDITOR

Lunar beer To celebrate the fall equinox, Dogfi sh Head Craft Brewery brewed a beer that is out of this world — literally. Named Celest-jewel-ale, the beer is made with lunar meteorites that have been crushed into dust then steeped like tea in an Oktoberfest-style beer. The certifi ed moon rocks, obtained by ILC Dover, are made up primarily of minerals and salts, which aid in the yeast-

induced fermentation process and lend a subtle but complex earthiness (or

in this case, mooniness) to the traditional German-style beer, the company says. The beer was available exclusively on draught at Dogfi sh Head’s Rehoboth Beach brewpub in Delaware.

For bartenders’ eyes only Hendrick’s Gin, a brand of William Grant & Sons Ltd., released just more than 4,000 bottles of its new Quinetum quinine cordial to two dozen bars in major U.S. markets. Quinine, also known as cinchona succirubra, is found in the bark of the cinchona tree and is said to be responsible for the bitter taste in tonic. In addition to quinine, Quinetum features lavender and orange distillates with extracts of orange blossom, wormwood and holy thistle for a more roundedand workable liquid, the company says. With 4 percent alcohol by volume,the cordial was designed to complement cocktails made with Hendrick’s Gin, encouraging bartenders to experiment with new concoctions. Adding to the character of the product, the cordial is packaged in a glass container modeled after a 1940s poison bottle discovered in an old London bric-a-brac shop.

<<

<< Why consumersdon’t recycleIn the last decade, the recycling rate in the United States has risen less than 6 percent, according to consulting fi rm The Ashkin Group. When researchers set out to learn why the rate wasn’t higher, their fi ndings revealed an unexpected answer. Although the researchers might have expected to learn that consumers do not recycle because recycling bins are not handy enough or recycling options are too confusing, they determined instead that psychology plays a role in recycling. Consumers tossed items in the trash instead of the recycle bin if the items looked damaged, incomplete, small, ripped, shredded or deformed, according to the study’s authors, Jennifer Argo of the University of Alberta School of Business and Remi Trudel of Boston University. However, if the item was in whole form, such as an undented can, it was usually sent to the recycling bin. These psychological fi ndings were published in the Journal of Electronic Commerce Research.

<<

DID YOU KNOW?Pumpkin-flavored products grew 18.8 percent to more than $290 million in Nielsen-measured channels in the United States last year. Coffee was the second-most popular pumpkin-flavored product last year, making up 11.2 percent of sales and growing 33.7 percent from 2011 to 2012. Beer was the fifth-most popular pumpkin-flavored product, accounting for 7.7 percent of sales and growing 22.3 percent from year-to-year.

— Nielsen, New York

| Beverage Industry | NOVEMBER 2013 | bevindustry.com 36

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38 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Packaging

Shaping bottles the sustainable way

APPROXIMATELY 55 PERCENT OF THE PLASTIC BOTTLES MANUFACTURED IN the United States are used for beverage bottling, and half of the plastic bottle manufacturing industry’s revenue comes from carbonated soft drink bottles, according to Santa Monica, Calif.-based IBISWorld’s Sept. 2013 report “Plastic Bottle Manufacturing in the US.” In fact, the $13 billion industry is expected to grow by 0.2 percent this year and another 1.9 percent annually through 2018 because of demand from the beverage industry, it states. Therefore, the plastic bottle manufacturing industry is expected to stabilize and grow during the next few years, it adds.

As the plastic beverage bottle market expands, manufacturers are looking for ways to reduce their total cost of ownership and environmental impact while maintaining the flexibility needed to compete in the market, according to Denis Marcon, North American sales director for SIPA North America Inc., Atlanta. This can mean saving energy, producing lightweight containers to save materials, and operating efficiently, he explains.

To help companies meet these objectives, SIPA currently is in the process of modifying all of its machines in order to reduce at least 15 percent of the global impact of material and energy in plastic bottle manufacturing, Marcon says.

Along the same lines, the company also recently premiered new technologies that reduce material and energy use. For example, although there are limits to how thin a preform can be before injection molding becomes impossible, SIPA’s Xtreme machine allows for the production of preforms that are as much as 10 percent lighter than typical lightweight injection-molded preforms without losing any key properties, the company says. To make this happen, SIPA uses injection-compression technology in which the molds are slightly open when the injection starts and then closed when dosing finishes, requiring lower injection pressure and lower clamp force, it explains. By using injection-compression technology, the machine can use preforms that have had extra weight

shaved off their bodies and bases to produce plastic bottles that have a length-to-wall thickness ratio of 80, it says.

Also to help reduce energy consumption, SIPA launched its SFR EVO3 stretch-blow molding system for polyethylene terephthalate (PET) bottles in July.

From an efficiency standpoint, the SFR EVO3 can achieve a maximum output rate of 2,250 bottles an hour in each

cavity. The various models offer capacities of six to 16 cavities, and 20- and 24-cavity models will be released later this year. Along with this production efficiency, the SFR EVO3 also offers energy efficiency through its “green” ovens and mechanical compensation in the blowing process. The “green” ovens use new lamps and special materials and coatings for the reflectorsto reduce electrical consumption by as much as40 percent while keeping process conditions stable,the company says. For the blowing process, the machine helps reduce air consumption, particularly with smaller bottles, by only using high-pressure blowing on the final fraction of a millimeter of the bottle blowing, as opposed to during the entire blowing process, it adds.

Krones Inc., Franklin, Wis., also has dedicated itself to more efficient air use in the overall packaging chain, including through its Contiform blow molder. “Krones has minimized the amount of redundant, wasted air present within blow molders through continuous design and development of lower-volume valves, lower-volume compensation, and reduced operating air requirements,” explains Adam Stowitts, product manager for plastics technology. Furthermore, the company uses an Air Wizard air-recycling stream, which is operated by the blow molder control system and recycles the remaining air inside a bottle, he says.

KHS USA, Waukesha, Wis., a division of KHS GmbH, offers a similar capability through its Airback Plus development for its InnoPET Blomax stretch-blow molders. This system allows approximately40 percent of compressed air used in the stretch-blow molding process to be reused in the blow wheel, the company says. In turn, machines equipped with Airback Plus require less energy, less high-pressure air, and a smaller compressor, thereby helping the equipment owner save on investment and running costs, it adds.

THE BIG PICTUREIn addition to achieving materials and energy efficiency, the plastic bottle manufacturing industry strives for

Blow-molding equipment aims to

cut costs, materials

Krones’ Contiform blow molder uses an Air Wizard air-recycling stream to recycle the remaining air inside a bottle. (Image courtesy of Krones Inc.)

>>

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39 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

overall line efficiency as well. “The reality is brand owners must get products to market as cost efficiently as possible,” Krones’ Stowitts explains. “The solution is to maintain as tight of a production stream as possible while still maintaining enough production volume to keep the materials cost down. … In other words, production should be vertically integrated wherever possible — compact, flexible and efficient.”

To maximize such efficiencies, Krones engineered the Ergobloc system, which integrates a Contiform blower, a bottle filler and a labeler. The system was designed to pro-tect lightweight bottles through positive control and gentle handling throughout the entire bottle manu-facturing process, Stowitts explains. In addition, the system uses a servo-joint control system to control speed and transfers between processes to maximize uptime, he says.

STRIVING FOR SANITATIONThe linking of various machines in the plastic bottle manufacturing process also helps to prevent contamination, according to GEA Process Engineering, Soborg, Denmark. GEA’s ABF system, which couples its aseptic blower with an aseptic filler, includes a microbiological isolator that runs throughout the unit. In this way, a sterile preform enters the microbiological isolator before blowing and remains in the sterile environment until it is aseptically capped after filling, the company said in a statement.

This microbiological isolator has two main sterile components. “At first, we physically separated the dirty mechanical parts from the sterile zone,” the company said in a statement. “Second, we designed every component in the sterile zone to be cleanable with foaming agents and to be sterilizable with vaporized hydrogen peroxide. We then pressurize the environment with a redundant [high-efficiency particulate air] (HEPA) filter station to classify the sterile area in class 100.”

For complete cleanliness, the preforms also need to be sterilized before entering the microbiological isolator, the company said in a statement. GEA sterilizes preforms in one single step with a controlled flow of vaporized hydrogen peroxide

after the heating oven. This single-step cleaning helps to prevent cross-contamination, the company explained in a statement. If the external preform is sterilized before the internal section,

contaminants from inside the preform can contaminate the outside of the preform as well as any mechanical pieces the preform comes in contact with, it said.

Through these steps, plastic bottle manufacturers can help ensure that they are producing the safest possible product for the beverage market. BI

By Jennifer Haderspeck

www.khs.com

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40 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Packaging

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Getting inkedIN ORDER TO GARNER CONSUMER ATTENTION, BEVERAGE-MAKERS ARE capitalizing on the power of consumers’ five senses.

Earlier this year, The Coca-Cola Co. released a print advertisement in Dubai designed to entice consumers to sample and talk about its new-and-improved Fanta Orange soda. To do so, the ad encouraged readers to remove the page from its protective sleeve, tear off a piece, and eat it. The ads were made from edible rice paper and infused with the proprietary Fanta Orange formula.

Taking this idea to the retail aisles, brand owners also have the opportunity to allow “sampling” of their products at the shelf. Like a packet of dissolvable breath strips, beverage-makers can transfer the flavor of their products to dissolvable strips to give the shopper an idea of what the product will taste like, according to Tony Bean, manager of energy-curing ink, and Bob O’Boyle, product manager of SunChemical’s coatings portfolio, for SunChemical Corp., Parsippany, N.J. A packet of these strips can be placed on a beverage package at retail to encourage a purchase, they add.

Moving from taste to smell, beverage packages also can take advantage of inks and coatings to provide a multi-sensory experience for shoppers. For instance, SunChemical’s SunScent line can be applied as an ink or coating to a cherry-flavored vodka, so that when consumers scratch or rub the image of a cherry, the aroma is released, Bean explains.

Both taste and scent technologies are emerging in the beverage market, he says. However, thermochromic, glow-in-the-dark, textured, color-shifting and other specialty inks are gaining popularity as well, he adds.

Specializing in thermochromic inks, Chromatic Technologies Inc. (CTI), Colorado Springs, Colo., released a number of new technologies this year. Building on its thermochromic temperature ink technology, such as that used in MillerCoors’ Coors Light Cold Activated cans and bottles, the company learned how to provide cold-guarantees on can tabs, crowns and closures, says Patrick Edson, chief marketing officer for CTI. It also evolved from blue thermochromic inks and created yellow and red thermochromic colors, which now enable the printing of hundreds of cold-activated colors, he adds.

On the warmer side of the spectrum, CTI introduced photochromic inks that are activated by sunlight, Edson says. Plus, it offers reveal inks, which enable the packaging to display messages after consumption, such as promotional codes or “return-to-fridge” alerts to improve food safety, he explains.

It also developed a technology for cans to help enable transparency, because cans are limited by their opaque material and cannot showcase the liquid inside. By using CTI’s product demonstration innovation, the product inside can be mimicked on

the outside. For example, a glass can be printed on the can to show it full of liquid, and as the consumer drinks it, the glass empties by detecting the remaining level of liquid in the can, Edson explains.

When it comes to glass bottles, however, the decorative inks from Hartness International, a division of Illinois Tool Works Inc. (ITW), are enabling the packaging format to become even more transparent by eliminating the label. The company uses a vertical ultraviolet (UV) ink solution that enables it to print directly onto the glass using any color on the Pantone spectrum as well as specialty effects, such as metallic, thermochromic and frost decorations. The inks are organic and do not include bisphenol A (BPA) or volatile organic compounds (VOCs), says Sean Hartness, vice president of the Greenville, S.C.-based company.

Inks also can help to differentiate a product on-premise. UV light ink, for instance, can add a fun, interactive element to beverage packages and allow them to stand out in bars or nightclubs, says Neill Mitchell, vice president of marketing and strategic development for Crown Beverage Packaging North America, a business unit of Crown Holdings, Philadelphia.

Although these specialty finishes work well at retail, on-premise and in consumers’ hands, the process to get them there isn’t always easy, SunChemical’s Bean notes. For instance, a sandy-textured specialty effect that promotes grip on a bottle could face some challenges on a high-speed filling line, and strong solvents on a production line could conflict with the chemistry of the inks and coatings on a can, he notes. Plus, stringent regulations, such as the aversion to BPA, which might be found in small traces in some inks, also should be taken into consideration, he adds.

“Matching some of these effects with what actually has to happen in the real world can be difficult,” he says. “… It’s a matter of balancing not just the performance needs that the consumer may need but also regulatory needs that are continuing to get more and more stringent.”

Beverage containers utilizing inks for a variety of effects

Specially marked bottles of The Coca-Cola Co.’s Fanta beverages in Australia used thermochromic inks to reveal a challenge for consumers to perform a “Funstigator” task. (Image courtesy of Chromatic Technologies Inc.)

>>

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41 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

BACK TO BASICSBeyond specialty effects, some brand owners are reverting to simple, nostalgic designs using labels or graphics from their past, says Janelle Harris, director of graphic services for Broomfield, Colo.-based Ball Corp.’s metal beverage packaging division in the Americas.

“Those simpler looks were iconic and clean and resonate with many consumers,” she says. “They say, ‘We’ve been around a long time, and we haven’t changed anything in our quality product.’ It’s a nostalgia play to an extent, but it is also a brand play and appeals to consumers who want traditional, simple excellence.”

Regardless of the complexity of the graphics, high-quality printing remains vital. Therefore, Crown developed its Pictoris high-quality print process to help brands achieve graphics that are crisp, clear and more realistic, Mitchell says.

“Pictoris employs proprietary separation techniques for improved dot spacing and superior reproduction of fine details in order to achieve the best visual representation possible while still offering quality and consistent printing across long print runs,” he says.

Likewise, Ball Corp. offers its proprietary six-color Eyeris high-resolution graphics technology as well as its new Dynamark Variable Printing Technology, which allows companies to produce a variety of different graphics on cans that then can go into a multi-pack without any sorting, Harris explains. Dynamark is an

ideal technology for promotions, she adds. “We’ll get to the point where we can print CMYK-

level graphics on cans,” Harris says. “It will be about higher resolution and more vibrancy in colors.”

Color also plays a role when it comes to glass bottles. Brands like Anheuser-Busch’s Bud Light Platinum and Campari America’s Skyy Vodka have created shelf presence by showcasing blue glass. And soon, Hartness will introduce a new UV-curable ink applied via electrostatic technology developed by the Nordson Corp., Westlake, Ohio, that can coat a clear glass bottle in any color on the Pantone spectrum.

“The beauty is instead of having maybe only three colors of glass as they have predominantly now — which is amber, green and flint — the producer can actually color glass any color that their team wants … and the glass still recycles as native flint glass,” Hartness explains.

Plus, the coating technology eliminates the need to changeover a glass furnace to run a new color, which is expensive and time-consuming, he says.

Considering the amount of SKU proliferation in the beverage industry, manufacturers will have to perform smaller production runs to make the additional SKUs, Hartness says. Therefore, technologies that can add value and help products stand out on the shelf will continue to hit the market to meet demand, he projects. BI

By Stephanie Cernivec

Hartness International’s decorative inks can be applied directly to a glass bottle without the need for a label. (Image courtesy of New Belgium Brewing)

>>

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42 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Packaging

Drawing crowds with packaging innovation

PACK EXPO INTERNATIONAL 2013, WHICH TOOK PLACE SEPT. 23-25 AT THE LAS Vegas Convention Center in Las Vegas, was the trade show’s largest event in Las Vegas yet, according to PMMI, the Reston, Va.-based host of the event. In fact, in early estimates, the association for packaging and processing technologies reported an attendance increase of 7.4 percent to 27,759 attendees, a 15.5 percent increase in exhibitors to 1,788 companies, and a 14.7 percent increase in floor space to 722,437 net square feet, all compared with the 2011 show, which also set event records.

Below are some of the exhibitor highlights from the 2013 show:

Admix, Manchester, N.H., promoted its Fastfeed powder induction and dispersion system. The Fastfeed system uses a high-performance powder suction pump that vacuum conveys 3-400 pounds a minute of any powder or solid.

Ambaflex, Bedford, Texas, displayed four of its spiral conveyors at the show. Its SpiralVeyor Portal incorporates two spirals — one up, one down — and an overhead bridging conveyor. The SpiralVeyor SlimLine for secondary packaging items has multiple parallel tracks for multi-package conveying in a space as small as 3-5 square feet. The SpiralVeyor SVM mass flow elevator can elevate mass flow containers up or down and accumulate them on parallel, side-by-side tracks. Finally, the BottleLift SpiralVeyor is designed for high-speed bottle elevation and lowering.

Amco Products Co., Fort Smith, Ariz., highlighted its portfolio of cap chuck solutions.

American Holt, Norwood, Mass., presented its portfolio of aftermarket machine parts, which can help customers save 20 to 30 percent of their inventory costs, the company says.

Auto-Mate Technologies, Riverhead, N.Y., introduced its new AM-QC quality control inspection center. The system is designed to check for quality aspects like missing, crooked or loose caps; missing or crooked labels; missing foil seals or neck bands; color correctness; barcode and date-lot information; conveyor speed; and custom applications.

Axon, Raleigh, N.C., featured its Aurora Wide shrink-sleeve applicator for large, lay-flat film applications such as multipacks or wide-diameter containers. Capable of handling as many as 200 containers a minute, the system also includes motorized film unwind, recipe functionality to control changeovers with the push of a button, and ergonomic features including a standard swing-arm human-machine interface (HMI) and a height-adjustable film-roll splicing table.

Bemis Performance Packaging, Oshkosh, Wis., highlighted its portfolio of shrink-film, roll-fed and Peel ‘N Tear labels for beverage packages.

Busch LLC, Virginia Beach, Va., called attention to its

experience in working with companies to implement energy-efficient vacuum pump systems.

Cognex Corp., Natick, Mass., presented its machine vision inspection systems under its Cognex Vision division. Of special note was its DS1000 vision system, which uses a laser instead of a camera for inspection.

Columbia Machine Inc., Vancouver, Wash., introduced its HL7200 high-speed, inline palletizer. The first in a family of high-level, high-speed palletizers to be released this year, the HL7200 incorporates Category 3 electrical safety components including dual-channel safety interlocks and full-height light curtains positioned on the full-load discharge and empty-pallet feed, among other safety features. In addition, the palletizer incorporates Columbia’s new programmable laner technology with its soft turn and configurable layer table to provide accurate and stable layer forming, the company says.

Delkor, St. Paul, Minn., highlighted many of its latest innovations at the show. In collaboration with Tetra Pak, Vernon Hills, Ill., the company debuted its C1 1400 Robotic Packer, a high-speed robotic packing system that integrates forming, loading and closing with a detection device that locates and discharges out-of-place packaging to avoid jams. The new packer also can handle a wide range of case formats and substrates, the company says. On the packaging materials side, Delkor featured its Cabrio Case design. This secondary packaging converts a corrugated, conventional flange-seal shipping case into a retail-ready display case by using its angled flaps to create a display that is open in the front with a higher wall in the back.

Emerson Industrial Automation, Florence, Ky., introduced its new System Plast Low Back Pressure Conveyor Belt series at the show. This system is designed to handle shrink-wrapped cases without cardboard pads or trays, the company says.

Etimag USA, Springfield, Va., presented its portfolio of shrink-sleeve, preform-sleeve, promotional-sleeve, tamper-evident sleeve and pressure-sensitive labels.

Exopack, Spartanburg, S.C., featured its AquaCrystal shrink bundling films for wrapping multipacks. The portfolio includes three models: AquaCrystal CW, AquaCrystal GP and AquaCrystal XP. CW is non-printed and specifically designed for distribution

Pack Expohosts largest

Las Vegas show yet

Emerson Industrial Automation introduced its new System Plast Low Back Pressure Conveyor Belt series for handling shrink-wrapped cases without cardboard pads or trays. (Image courtesy of Emerson Industrial Automation)

>>

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applications; GP is designed for can multipacks; and XP is suited for unsupported, nested case packs of polyethylene terephthalate (PET) bottles.

Gebo Cermex, Norcross, Ga., introduced new innovations to its VersaFilm range of seamless shrink-wrappers at the show. Cermex has re-engineered the vacuum table for its VersaFilm shrink-wrappers to make film-handling more fluid and to facilitate maintenance on high-speed lines, the company says. It also added an optimized shrink tunnel that can be adjusted based on product height, collation and number of lanes, it says.

Intelligrated, Mason, Ohio, launched a new mix-load order fulfillment solution at Pack Expo 2013. Its Alvey robotic mixed-load palletizing solution utilizes configurable end-of-arm tooling, software and controls to handle multiple product types. These features enable manufacturers and distributors to replace manual handling processes with the efficiency, accuracy and cost-saving benefits of automation, the company says.

Klüber Lubrication North America L.P., Londonderry, N.H., highlighted its portfolio of multi-purpose, food-grade greases.

Lubriplate Lubricants Co., Newark, N.J., announced that its National Sanitation Foundation H-1 Registered food-grade lubricants are newly registered with the U.S. Environmental Protection Agency. It also highlighted its portfolio of NSF H-1-registered,

food-grade lubricants. Matthews Brand Solutions,

Pittsburgh, highlighted three of its marking and coding machines. Its eSolarMark Light PET carbon dioxide

laser coding system is suited for marking PET containers and glass substrates with alphanumerical text, date and time codes, serial numbers, barcodes, 2-D codes and graphics. The

Viacode L Series printer provides 600-by-600 dots per inch resolution at more than 200 feet a minute for marking on porous and non-porous applications.

Schneider Packaging Equipment Co.’s new Robox BPR uses a Fanuc robot to pack a variety of bottles in neck-up, neck-down, alternating or lay-down formations at speeds as fast as 160 bottles a minute. (Image courtesy of Schneider Packaging Equipment Co.)

>>

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Specifically for porous materials, the company also offers the Viacode T Series high-resolution printers, which can create 4-inch-high images and codes with a single head.

Paxton Products, a Cincinnati-based division of ITW Air Management, featured its CapDryer, which provides complete drying of bottle necks and lids to allow for quality coding,

tamper banding, labeling, and vision inspection. It also highlighted its Ionized Air System, which removes particulates, dust and contaminants via ionization coupled with centrifugal

blowers and air delivery systems. The system’s design decreases energy usage by as much as 80 percent while increasing performance and reducing maintenance, the company says.

PDC Europe Americas, Austin, Texas, presented its BM-110 blow-molder stretch-sleever. The system applies easy-to-recycle sleeve labels without heat, which, in turn, reduces energy usage, the company says.

Pfannenberg Inc., Lancaster, N.Y., introduced its PWS 3000 cooling system with water. The latest addition to Pfannenberg’s Advantage series, the system includes an electronic thermostat for accurate temperature control, color-coded water lines for easy identification of water supply and return lines, and an airflow path designed to prevent condensate water from entering the enclosure.

QuikWater, Sand Springs, Okla., highlighted its direct-contact water heating systems. Quikwater’s systems create hot water on demand by quickly heating water up to 200 degrees Fahrenheit. Its clean-burn technology, which is powered by natural gas or propane, produces pure, potable water, and flash pasteurization kills pathogens, it says. In addition, the systems are environmentally safe, 99 percent energy efficient, and offer up to 40 percent energy savings, it adds.

Rehrig Pacific Co., Los Angeles, displayed its direct-store-delivery (DSD) One-Touch Delivery System. The system allows distributors to assemble pallets of product for delivery in the warehouse and then move them to and from delivery trucks with the cart. In addition, the system’s design allows DSD personnel to deliver up to five times more product for each trip and easily maneuver down narrow aisles and around sharp corners, the company says.

RockTenn Automated Packaging Systems, Orlando, Fla., featured its

Sustainable Handle & Applicator Solutions

PakTech takes major brands and processors to the top of the market. How? Sustainability and efficiency. Our handles are made using clean manufacturing practices and Post-Consumer Recycled (PCR) resin. Being 100% recyclable, they look good, feel good and have an amazing effect on consumer happiness. Plus, operations are streamlined with our state-of-the-art, automated application machinery that fitsseamlessly into any production line.

The ultimate turnkey solution found in something as simple as a PakTech handle.

Klüber highlighted its portfolio of multi-purpose, food-grade greases. (Image courtesy of Klüber Lubrication North America L.P.)

>>

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Meta mandrel-formed cases. The Meta 150 machine forms die-cut blanks into cases around a fixed mandrel, thus minimizing case-skew and maximizing structural integrity. The cases are available in one- and two-piece options as well as shelf display configurations that offer greater pallet stability, packaging weight savings and automated partition insertion capability.

Ryson, Yorktown, Va., unveiled its Narrow Trak Spiral conveyor at the show. The new spiral conveyor has a 5-inch-wide slat design and is designed to end-transfer small cartons and packages or side-transfer small bottles and containers in a single file or in mass flow. This compact unit has an outside diameter of 45 inches.

Sato America Inc., Charlotte, N.C., presented its portfolio of print engines for automatic print-and-apply labeling. The company also offers Label Gallery software for label design for production through Sato print engines.

Schneider Packaging Equipment Co., Las Vegas, debuted the next- generation Bottle Packer Row (BPR) case packer from its Robox family of products. The Robox BPR is designed for packing blow-molded plastic high-density polyethylene (HDPE), PET, polyvinyl chloride (PVC), polypropylene (PP) and other bottles into service cartons with or without liner bags.

Sealed Air, Duncan, S.C., highlighted its Cryovac LT1 low-density, high-shrink-sleeve label. The, ecological, low-density shrink sleeves can easily be separated from PET bottles in the recycling stream and provide 30 percent source production compared with other mono-layer shrink-sleeve labels, the company says.

SEW-Eurodrive Inc., Troy, Ohio, discussed successful implementations of its Movigear mechatronic drive system in beverage facilities around the world. The Movigear system has been shown to reduce operating costs due to its overall efficiency. The system also offers resistance against heat, moisture and cleaning agents, the company says.

Siemens, Munich, launched Simogear, its new gear motor series for conveyor applications in the packaging industry, at the show. Simogear features helical, parallel shaft and helical bevel gear unit types with integral high-efficient National Electrical Manufacturers Association (NEMA) premium motors. Additionally, the company debuted its single-axis Sinamics V20 drive for

basic applications at the show. The Sinamics V20 is available in four frame sizes to accommodate a performance range from one-sixth to 20 horsepower and can be used to operate pumps, fans, compressors and conveyor systems as well as for simple drive tasks in the processing and handling industries.

Teledyne TapTone, North Falmouth, Mass., emphasized its leak inspection systems. The company offers various systems for inspecting glass and plastic containers with single- or dual-rejection capabilities. These systems also can inspect caps, codes, pressure and fill levels.

Tetra Pak presented its entire portfolio of aseptic beverage packages in various shapes and sizes. One of its newest models, the Tetra Wedge, is designed to appeal to children and teens with its unique shape that is easy to identify, easy to hold, and easy to drink from with a straw.

Unibloc-Pump Inc., Marietta, Ga., highlighted its Unibloc-PD positive displacement pump. The system is designed to pump thin and thick liquids at a high rate of efficiency and at capacities up to 525 gallons a minute. The Unibloc PD pump is engineered for temperatures up to 250 degrees Fahrenheit and can be mounted with either horizontal or vertical through-put bars.

United Barcode Systems, Escondido, Calif., featured its APL 800 Series print-and-apply system for multiple panel labeling. The system prints labels at speeds between 50 and 600 mm a minute and can apply up to three self-adhesive labels to a pallet according to European Article Numbering/Uniform Code Council-128 Application Identification Standards and GS1 International pallet labeling recommendations.

Vacuum Barrier Corp., Woburn, Mass., presented its liquid nitrogen injection and dosing systems. Of specific note were the Nitrodose G2 and EasyDose G2 systems, which both can dose nitrogen into cans at speeds as fast as 450 containers a minute with a minimum dose duration of 25 milliseconds. In addition, both systems are self-monitored and feature alarm outputs and a self-generating nitrogen purge. BI

To read the full post-show report, visit bevindustry.com/packexpo2013.

For more information…

Made in USA

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PACKAGING NEWSFASHIONABLE WATEREvian Natural Spring Water, a brand of Danone, released its latest collaboration with designer Elie Saab. This year’s limited-edition bottle features Saab’s signature lace pattern that recalls the feminine and elegant designs showcased in her collections, the company says.

HOLIDAYHEINEKENHeineken USA launched its “Celebrate Together”

holiday program at retailers earlier this month. At the center of the program, four limited-edition bottles celebrate Heineken milestones through designs that represent the brand’s beginnings, its global presence, and its ongoing commitment to innovation. Each holiday-themed 12-pack of limited-edition bottles also features an in-pack code that gives consumers the chance to instantly win a $50 holiday reward gift card.

PACKING A PUNCHXyience Xenergy, the official drink of the UFC, launched a limited-edition collector can featuring UFC women’s bantamweight champion and Xyience team athlete Ronda Rousey. Her image will appear on the packaging of Xenergy Cherry Lime, which will be available at retailers nationwide through Dec. 31. The timing of the launch leads up to Rousey’s second UFC fight, which will be Dec. 28 in Las Vegas.

BIGGER BOTTLESIn order to meet growing demand for its Watt-Ahh brand, AquaNew LLC added a 1-liter size to its bottled water lineup. The new 1-liter bottles also are more efficient and economical to ship by pallet loads from Florida to out-of-state Watt-Ahh customers, the company says.

SLIMMING CANNutrié launched its Fuel premium protein shake in 12-ounce

Rexam Sleek cans. Nutrié chose the Rexam Sleek can because of its unique shape as well as its

portability, durability and graphic capabilities, it says. The company also benefits from the packaging material’s recyclability, it adds.

RETRO LAGERNarragansett Beer reintroduced its 1975 can, made famous in the “Jaws” movie during the scene in which Captain Sam Quint, played by Robert Shaw, crushes a can of Narragansett Lager to intimidate Richard Dreyfuss’ character, Hooper. For a limited time, the retro design appeared on 12-, 18- and 30-packs of Narragansett Lager throughout New England.

PREMIUM APPEALPernod Ricard USA released a new look for its Ballantine’s Finest Blended Scotch Whisky. New design elements include a chevron-shaped label that recalls the wings of the historic Finest label; a more prominent positioning of the brand’s crest; a simplification of the Ballantine’s seal, which amplifies the Ballantine’s “B”; and the transition of the word “Finest” to a more premium gold coloring. The shoulders of the bottle also have been made more angular, resulting in a sharper, prouder look, the company says. As a result, the bottle enhances the brand’s most familiar elements while achievinga more contemporary look, it adds.

WINE LINE REDESIGNUnion Wine Co. unveiled new packaging for its line of wines to appeal to a younger audience, it says. For instance, the adoption of the Oregon heart icon with a wine bottle, found in the logo and on the screw top, enables the brand to showcase Oregon character in a casual yet design-sophisticated way, the company says. Overall, the new packaging was designed to represent Union Wine Co. as an approachable lifestyle brand that embraces Oregon’s unique spirit and passion for craftsmanship, it adds.

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sweeteneverything

simplifylabels

improvetexture

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WHETHER RED, BROWN OR BLUE, BEVERAGE COLORS PLAY A LARGE ROLE IN impacting consumers’ perceptions of a product. A March 2013 study by D.D. Williamson, Louisville, Ky., further illuminated this concept by presenting24 test subjects with clear, brown and pink versions of a lemon-lime-flavored carbonated beverage.

When presented as a clear soft drink, 81 percent of subjects correctly identified the product as having a lemon-lime or citrus flavor. However, when the drink was colored brown, 34 percent of participants described it as “sweet” or “fruity,” while 15 percent described it as having a cola flavor. Likewise, when it was colored pink, 38 percent of respondents described it as “fruity,” “berry” or “sweet.” In addition, the majority of respondents said they enjoyed the pink beverage best, citing that it was the most flavorful and visually appealing. Many of these perception differences were influenced solely by the beverage’s color.

“The color of a beverage affects the consumer’s perception of taste as we drink with our eyes,”

explains Jody Renner-Nantz, global application scientist for D.D. Williamson. “Color is a clue to flavor. For example, red-colored drinks are typically associated with sweetness — such as strawberry or cherry flavors. By contrast, yellow-colored drinks are associated with sour flavors like lemon. Green is perceived as tart in flavor, such as apple or lime.”

Consequently, if a beverage-maker chooses the wrong color for a beverage, the perception can be skewed, says Dave Tuescher, technical director for Sethness, Lincolnwood, Ill. For example, Esquire magazine’s Eat Like a Man Blog described green beer as “disgusting,” even though the green food coloring added to the beer does not impact the taste, according to its March 14 article “Can Green Beer be Great Beer?”

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For this reason, when working with customers to select a color for a beverage, Food Ingredient Solutions LLC considers the flavor profile of the beverage product as well, says Jeff Greaves, president of the Rohnert Park, Calif.-based company. This can even come down to choosing a specific shade within a color range, like selecting a strawberry red versus a fruit punch red to appropriately match the flavor, he says.

Beverage-makers also consider what consumers want when choosing a color scheme. “Consumers are mainly attracted to well-known and natural-looking colors found in beverages,” explains Christian Benetka, senior product manager for Döhler Group, Darmstadt, Germany. For example, colors such as red, orange, yellow and brown are commonly found in nature in fruits and vegetables, he says. These colors also happen to be the most popular beverage colors, he notes. On the other hand, bright colors in a beverage can help to attract attention and appeal to children who are seeking a product that is interesting and different, he adds.

NATURAL BENEFITSHealth-conscious consumers are calling for naturally colored beverages,

says Chad Ford, associate director of colors for Wild Flavors Inc., Erlanger, Ky. “Many consumers

associate health benefits with sources of naturally derived colors,” he says. “Often natural colors are free of [genetically modified organisms] (GMOs) and allergens.” In addition, natural colors help to create a clean label, and their sources can be listed on the label to help explain what the ingredient is and what its use is, he adds. For example, purple carrot juice can be listed as “purple carrot juice (color),” he explains.

Plus, because they are derived from fruit and vegetable sources, such colors are frequently approved and accepted by most international regulatory bodies and retailers, says Kelly Newsome, corporate communications manager for GNT USA Inc., Tarrytown, N.Y. “Most importantly, consumers across the globe can easily recognize and feel safe consuming color ingredients made from fruits and vegetables,” she says. In this way, the use of natural colors can help beverages expand into new and international markets.

In order to formulate with natural colors, beverage-makers are willing to invest a little more money in their coloring solutions to make consumers happy, notes Tracy Takeda, product development technologist for San Joaquin Valley Concentrates, Fresno, Calif. “Artificial colors are usually less expensive than natural [colors], but formulators are willing to pay a little more for natural colors to gain consumers’ positive perceptions,” she says.

Chicago-based Mintel reported at this year’s Institute of Food Technologists (IFT) Annual Meeting and Food Expo that natural colors have been on the rise in the last few years. In fact, natural colors have experienced 77 percent growth since 2009, reported Lynn Dornblaser, director of innovation and insight

By Jennifer Haderspeck

To create its red color, San Joaquin Valley Concentrates uses Rubired grapes, which are the source of the most stable fruit anthocyanins, according to Tracy Takeda. (Image courtesy of San Joaquin Valley Concentrates)

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“Color is a clue to f lavor. For example, red-colored drinks are typically associated with sweetness — such as strawberry or cherry f lavors. By contrast, yellow-colored drinks are associated with sour f lavors like lemon. Green is perceived as tart in f lavor, such as apple or lime.”

— Jody Renner-Nantz,global application scientist,

D.D. Williamson

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at Mintel, during the market research firm’s IFT presentation.

COLORING IN HARMONYDespite their popularity, natural colors do pose some formulation challenges, including stability issues. According to D.D. Williamson’s 2013 IFT poll, pH is the No. 1 stability challenge when working with natural colors in a new beverage. Industry technologists polled also noted heat, light, distribution, interaction with

other components, and solubility as other challenges.

Lack of stability in a beverage can cause colors to fade, stain the bottle, or ring, says Byron D. Madkins, senior director of product development and applications for colors at Chr. Hansen Inc., Milwaukee. Ringing occurs when an emulsion

or encapsulation of an oil-based pigment is disrupted or broken. In the case of beta carotene, which provides yellow to orange hues, the color visibly separates from the solution and floats on top, he explains. This is undesirable and does not communicate quality to a potential consumer, he adds.

These stability issues also translate into shelf-life challenges, Madkins says. Ensuring that Chr. Hansen’s colors survive a nine- to 12-month shelf-life is one of the company’s biggest formulation challenges and takes up to 80 percent of its time, he notes. To further address this issue, the company’s laboratories conduct real-time and accelerated stability testing to demonstrate what a given beverage with its colors would look like in the first, fifth, ninth and 12th month after production, he says. With this data, the company is able to recommend the best color formulation options for a specific beverage type, he adds.

Through an understanding of these stability issues, beverage formulators also have designed color systems and formulations to handle these challenges. For example, formulators can take advantage of co-pigmentation, or the way in which colors interact, to create a more stable color system, Madkins says. They also can utilize micro-encapsulation by putting oil-based or insoluble pigments into a matrix with sugar and hydrocolloids to create water-dispersible color systems that can uniformly color the beverage, he says.

Emulsion technology also can help with color stability in a beverage, according to Cory Gegg, marketing manager for Sensient Colors LLC, St. Louis. Sensient recently launched its advanced emulsion technology, which uses complex, water-based emulsions to allow multiple oil- and water-based natural colors to co-exist in a single color system, he says. This technology also can help to prevent package staining, allow for lower color usage levels, and minimize off-notes that are sometimes associated with natural colors, he adds.

Many of these formulation challenges also can be skirted by opting for artificial colors, Food Ingredient Solutions’ Greaves says. “Most artificial colors can be used in most systems without much concern about the matrix,” he says. In addition, artificial colors easily blend into most beverages because they rarely react with other ingredients, Döhler’s Benetka says.

RED HOTWhether artificial or natural, red hues are the top trending color for beverages, experts note. These hues are mostly made of carmine or anthocyanins such as purple sweet potato, red cabbage, red radish, black or purple carrot, elderberry and

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Caramel colors are suitable for multiple types of beverages, including iced teas, experts note. (Image courtesy of Sethness)

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LycoRed recently developed its Lyc-O-Beta Intense and BetaCote color portfolios to offer high-intensity orange and yellow colors in forms that require low usage rates. (Image courtesy of LycoRed Ltd.)

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grape, according to Food Ingredient Solutions’ Greaves.

San Joaquin Valley Concentrates produces its natural red colors from Rubired grapes sourced from contracted farmers and purple carrots and sweet potatoes from Food Safety System Certification 22000-certified suppliers, Takeda says.

A recent challenge due to natural red’s popularity in a variety of beverages has been to create pigments that are stable in the presence of vitamin C, D.D. Williamson’s Renner-Nantz says. To overcome this, the company blended several different anthocyanins to create a red color that meets both hue and stability targets for vitamin-enhanced waters, she says.

BROWN IS THE NEW BLACKThe color brown recently garnered the second-most popular beverage color spot, surpassing yellow and orange, according to Renner-Nantz. In 2013, D.D. Williamson tracked a relative increase in new beverages that are brown and a relative decrease in those that are yellow, she says.

Although brown often is assoc-iated with chocolate or caramel flavors in the food industry, in the beverage industry, with the exception of dairy drinks, the color is commonly associated with cola and root beer flavors, Chr. Hansen’s Madkins says.

Beverages, including carbonated soft drinks, teas, beers, whiskies, energy drinks, protein drinks and fruit juice drinks, tend to be theNo. 1 use for caramel colors among all product categories, according to Sethness’ Tuescher. The company offers 60 different liquids in varying shades of brown, including colors as light as red and yellow, he says. To choose one of these shades and liquids, Sethness talks to customers about what they are trying to accomplish with the color.

Factors like desired level of 4-Methylimidazole, ionic charge, pH and other elements of the beverages’ conditions also are taken into account to find the appropriate solution. “For example, if you have a root beer, … you [need] a caramel color that foams,” Sethness’ Tuescher explains. “If you have a soda, you need a caramel color that does not foam. … If you have alcohol, like a whiskey, you need to have a caramel color that will tolerate the alcohol without precipitating.”

From a formulation standpoint, caramel colors are very water-soluble, Tuescher says. Caramel colors also help create batch consistency and uniformity within a beverage line,

because beverage formulators canadd a little bit of caramel color to make sure the shades of different batches look uniform on the shelf,he adds.

BRIGHT AND EYE-CATCHINGYellow and orange hues still are popular in the United States and also are the top trending colors in Spain,

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according to Food Ingredient Solutions’ Greaves. These colors tend to come from sources such as beta-carotene, apo-carotenal, Yellow No. 5 and Yellow No. 6, he says.

Most yellow and orange color sources are oil-based, which can present a challenge in beverage formulations, Döhler’s Benetka says. Oftentimes,

beverage-makers use emulsion technology to incorporate these colors, but that sometimes results in a cloudy appearance, he notes. Döhler took this technology one step further by using advanced emulsion technology to produce its Crystal Clear Colours portfolio based on carotenoids. The result is easy-to-use and highly stable “warm orange” and “shining yellow” hues for alcohol and non-alcohol beverages, he says.

To create high-intensity yellow and orange colors, LycoRed Ltd., Israel, recently developed its Lyc-O-Beta Intense and BetaCote color portfolios. These solutions offer higher color intensity compared with other beta-carotene colorants and, in turn, require lower colorant usage, the company says. In addition, the colors are non-foaming, resistant to the fading that can occur as a result of pasteurization and other stressful processes, and highly soluble for easy formulation, it says.

FEELING BLUECreating natural blues, greens and purples has historically been a challenge for color-makers, experts note. However, through advancements in the understanding of natural colors, the color industry has created stable, natural blues for use in beverages.

Five years ago, Wild Flavors launched its acid-stable natural blue color derived from fruit. Suitable for alcohol and non-alcohol beverages, the blue color additive is stable within a pH range of 2.5 and 8.0 and can serve as a foundation for green and purple colors, the company says.

Adding to the color options in the market, Sensient Colors launched this year a new line of clean-label, bright and stable blues, greens and purples for use in food and beverages in the United States. Derived from proprietary sources, the natural platform can replicate bold shades of artificial colors ranging from blueberry to sky blue, vibrant emerald green to clean mint green, and intense grape to soft pastel lavender, Gegg says.

Even more blue, green and purple color options may be available in the near future. This year, the FDA approved Spirulina, a pigment derived from algae that delivers bright blue and green shades, for use as a food colorant in candy and chewing gum. Although use of this colorant currently is limited, experts note that future consideration could open this source to use in the beverage industry. BI

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Sensient Colors launched this year a new line of clean-label, bright and stable blues, greens and purples for use in food and beverages in the United States. (Image courtesy of Sensient Colors LLC)

>>

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i. Percent Paid and/or Requested Circulation ((15c / 15f) times 100)

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35797 37034

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CREATOR’S BRIEFSCOCOAEXTENDERSIn response to higher cocoa prices, David Michael & Co. relaunched Cocoa-Mate, its line of cocoa extenders that are

functionally capable of replacing up to 50 percent of the cocoa powder used in a finished product, the company says. Cocoa-Mates are available to replace both Dutched Cocoas and Natural Cocoas, and both natural and artificial versions are available.■ David Michael & Co., 10801 Decatur Road,Philadelphia, Pa. 19154; 800/363-5286; mflavors.com.

ERYTHRITOL SWEETENER Pyure Brands launched a commercial-grade organic and non-genetically modified organism (GMO) erythritol sweetener. The U.S. Department of Agriculture-certified organic and Non-GMO Project verified

sweeteners are close to sugar in terms of bulk and can replicate the mouthfeel of food and drinks that are sweetened with sugar, it says. Erythritol also works well in conjunction with stevia, acting as a bulking agent for the higher-intensity sweetener, the company says.■ Pyure Brands LLC, 2277 Trade Center Way, Naples, Fla. 34109; 305/509-5096; pyuresweet.com.

A PALETTE OF CHERRY FLAVORSSensient Flavors LLC, a unit of Sensient Technologies Corp., introduced a line of natural, true-to-type varietal cherry flavors suitable for food and beverage applications. The flavors were created utilizing Sensient’s proprietary flavor development technologies, and sensory analysis and profiling also were conducted to ensure that the true essence of each varietal was captured, the company says. The following are available in the portfolio: Attika, which features a sweet and tangy flavor profile with high almond and floral notes; Black Cherry, which has a sweet and light floral flavor profile; Duke, which presents a sweet and mild

flavor profile with a blend of sour and soft almond notes; Maraschino, which is a preserved and sweetened cherry with strong floral and sweet aromatic notes; Morello, which has a sour and acidic flavor profile; and Wild Cherry, which features a soft floral flavor profile paired with sweet, fruity notes, Sensient explains. ■ Sensient Flavors LLC, 5600 W. Raymond St., Indianapolis, Ind. 46241; 800/445-0073; sensientflavors.com.

SPORTS RECOVERY SUPPORTKemin Industries Inc. launched AssuriTea Sport, a water-extracted proprietary formula of diverse polyphenols that works as a recovery ingredient for athletes and other active individuals. Backed by human clinical trial results, the all-natural ingredient does not contain harsh solvents or pesticide residues, the company says. AssuriTea Sport is generally suitable for use in many international markets and is environmentally friendly, it adds. ■ Kemin Industries Inc., 2100 Maury St., Des Moines, Iowa 50317; 800/777-8307; kemin.com.

R&D NEWSEdison, N.J.-based Allen Flavors promoted David Allento director of building operations. The company also added Maria Flati to its customer service team.

Andy Blum joined Carlstadt, N.J.-based Citromax, a division of Citroil Enterprises Inc., as vice president of product development.

DuPont Tate & Lyle Bio Products Co. LLC, Loudon, Tenn., partnered with Symrise, Teterboro, N.Y., for the use of Zemea USP propanediol as a carrier for compounded flavors. Zemea USP propanediol is a natural, 100 per-cent bio-based solvent and humectant made from the fermentation of glucose.

Cargill, Minneapolis, announced that, as part of the Cargill Cocoa Promise, the first Brazilian cocoa farmers have become UTZ Certified and their products can now carry the UTZ Certified label. The Cargill Cocoa Promise is the company’s global commitment to the development of a sustainable cocoa supply chain and

to improving the lives of cocoa farmers, supporting cocoa farming communities, and investing in the future of cocoa farming. For its cocoa customers, Cargill launched three new tools in its portfolio of Price Risk Services to help customers more easily manage price risk when working with cocoa and chocolate. These new protective structures, CocoaPacer, CocoaPacer Cap and CocoaRange Cap are designed to help protect customers from price volatility, it says.

Dallas-based Celanese launched a unified brand and new slogan, “the chemistry inside innovation,” to represent its various businesses and capabilities. The new brand incorporates the following products, solutions and technologies: cellulose derivatives such as Clarifoil and CelFX matrix technology; emulsion polymers including EcoVae, TruModa and Vinamul; engineered materials such as Hostaform, Celcon Pom, Gur UHMW-PE and Celstran LFRT; ethylene vinyl acetate (EVA) polymer products including Ateva and VitalDose; food ingredients including Sunett

and the Qorus sweetener system; and intermediate chemistry products and technologies such as AOPlus, VAntagePlus and TCX Technology.

Fona International, Geneva, Ill., launched a Discover Fona website at fona.com/discover-fona as a research tool for teachers who wish to incorporate food and flavor science into their lesson plans.

Nielsen-Massey, Waukegan, Ill., tripled the size of its manufacturing plant in Leeuwarden, the Netherlands, to accommodate its double-digit production growth this year, the company says. The approximately $4 million renovation created dedicated areas for production, packaging and warehousing, which enable the company to comply with strict quality certification requirements for reducing the potential for product contamination; a new automated processing system that provides more accurate and efficient batch processing; and four times more office space, it says.

In conjunction with Madagascar-based Soarary, Virginia Dare, announced a new dual-objective strategy to improve the sustainability of Madagascar’s vanilla market.

The first objective of the strategy is to enable farmers to properly cure their own raw vanilla in order to earn extra revenue from this value-added activity, the company says. To make this possible, Virginia Dare and Soarary have gifted materials and provided the training necessary for proper curing to a group of roughly 150 growers.

Secondly, the partners want to improve food security for Madagascar’s vanilla growing community. The plan will guarantee participating farmers access to affordable rice for food during the annual shortage period, the companies note. In turn, this access will help increase growers’ vanilla income by curtailing the practice of paying for otherwise unaffordable rice by pledging future vanilla production at prices below fair market value. ■ Virginia Dare, 882 Third Ave., Brooklyn, N.Y. 11232; 718/788-1776;virginiadare.com.

SUPPORTING SUSTAINABLE VANILLASynergy Flavors formally opened its new headquarters in Wauconda, Ill., on Oct. 4. President and Chief Executive Officer Roderick W. Sowders, who officiated at the opening ceremony, explained that the company’s investment in the facility was needed to support its customers and continued growth.

Also in attendance were the board of directors of Synergy’s Irish parent company, Carbery Group, as well as Wauconda Mayor Frank A. Bart and Aidan Cronin, consul general for Ireland.

The 15-acre campus houses Synergy’s 145,000-square-foot facility, which was built to Leadership in Energy and Environmental Design (LEED) standards. The flavor development portion of the facility houses flavor and application labs, a demo kitchen, sensory testing labs, and analytical and pilot plant facilities. The new facility also increases the company’s manufacturing space, allowing for the addition of new automation to improve liquid processing and packaging efficiencies as well as new proprietary processes for liquid manufacturing. ■ Synergy Flavors Inc., 1500 Synergy Drive, Wauconda, Ill., 60084; 847/487-1011; us.synergytaste.com.

SYNERGY OPENS NEW HEADQUARTERS

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Ingredient Spotlight

WHETHER THEY’RE USED BY FITNESS ENTHUSIASTS OR AS ON-THE-GO MEAL replacements, protein-fortified beverages are carving out their place in the beverage market. According to Chicago-based market research firm Mintel’s Global New Products Database, 74 beverages containing protein were released from January to June in 2013. In comparison, 49 drinks containing protein launched during that same time period in 2012.

“Overall, the protein market in ready-to-drink (RTD) beverages, powdered beverages and meal replacements is up significantly versus last year, and we believe that trend will continue,” says Barry Spors, director of research and development for Wisconsin Specialty Protein, a subsidiary of Omega Protein Corp., Houston. “As we move to an ‘on-the-go’ society, demand has increased for healthy products that are quick and easy to consume and prepare. In addition, consumers are searching for wholesome and natural methods to ingest a well-balanced diet, which is contributing to the upward trend of the protein market in beverages.”

Echoing similar thoughts, Gwen Bargetzi, director of marketing for Hilmar, Calif.-based Hilmar Ingredients, explains that consumers are using beverages in different ways than in the past.

“No longer on the table to ‘wash down the food,’ beverages, in some cases, have become the food as consumers use them for snacks, meal alternatives and nutrient boosts,” she says. “The availability of drink-friendly proteins and greater consumer appreciation for protein health benefits has spurred its use in beverages.”

To help meet these growing consumer demands for convenient, healthy products, beverage-makers are turning to proteins to fulfill a variety of functions.

“Those within the sports nutrition area are still utilizing protein for its muscle-building capacity, though more specialized blends are being developed to target pre- and post-workout occasions and maximizing the effectiveness of protein on muscle development and speed of damage repair,” says Russ Hazen, raw materials and innovations specialist for Schenectady, N.Y.-based Fortitech, a part of DSM. “Many products outside of this realm are employing protein’s satiety-inducing ability in products being developed for the weight-loss and -control market. This is perhaps where the greatest opportunity lies for manufacturers.”

And as more consumers look for protein content to fulfill their health and wellness needs, suppliers and manufacturers are finding more opportunities to meet those demands.

“Overall, we’re seeing a greater interest in incorporating some extent of protein in a number of different consumption periods throughout the day and different types of beverages,” says Shana

Smidt, business development manager for Glanbia Nutritionals, Evanston, Ill. “From that aspect as well, we’ve been challenged to develop proteins that work in different types of beverages and at different concentrations. A thing that has always been looked at are protein shots or concentrating protein into smaller amounts for kids, for example.”

In addition to its consumer packaged goods characteristics, proteins also play a functional role in formulation.

“Formulators are using protein to provide fortification, mouthfeel (viscosity), stability (emulsification), heat stability, acid and heat stability, and clarity,” says Grace Harris, director of applications and new business for Hilmar. “Whey proteins are unique in that they can be used in both acidic and neutral-pH beverage formulations. No other protein can do what whey protein can do in a formulation.”

Among its variety of whey proteins for beverage formulation, Hilmar’s WPC 80 line of proteins has been enhanced for heat stability, viscosity control, acid stability and an excellent amino acid profile, Harris explains.

The company’s whey protein hydrolysates also offer heat stability, even under retort conditions, as well as amino acids and pre-digested protein, Harris adds.

Also recognizing the benefits of whey protein, Glanbia offers its Bev-Wise line of protein systems for desired beverage systems. For example, its Bev-Wise A-100W is a pre-acidified whey protein isolate that can be used in high-acid beverages, Smidt explains. It can create a less astringent and clearer beverage that processes well, she adds. However, for intermediate pH levels, Glanbia’s Bev-Wise A-300W, which also is pre-acidified, is a whey protein isolate that could be suitable for categories like smoothies.

But milk proteins like whey and casein are not the only mainstream avenue that ingredient suppliers are turning to for protein.

“Over the last few years, the market for soy proteins has shifted,” says Tim Burrows, director of strategic marketing with Decatur, Ill.-based ADM’s foods and wellness division. “Ten years ago, soy protein was primarily viewed as an extender in meat products. Now, consumers are aware of the benefits of soy as a high-quality, nutritional food choice. Isolated soy

Vegetable and milk bases offer unique

selling points

Proteins reaching different need states

NuAquos protein drinks feature a number of different proteins including collagen protein isolate, whey protein isolate and casein protein isolate. (Image courtesy of New Whey Nutrition)

>>

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proteins are the only vegetable-based proteins with a protein digestibility corrected amino acids score (PDCAAS), a measure of protein quality that is comparable with animal proteins.”

Burrows notes that as weight management products continue to expand, soy protein can assist that trend. “Studies are finding that low-fat proteins like soy proteins have a positive impact on satiety and glycemic response,” he says.

To meet this demand, ADM offers Clarisoy, a soybean-sourced protein that can be added to finished beverages without compromising quality or taste, he explains.

The company also offers CardioAid, a brand of plant sterols, which was recently expanded to include a water-dispersible version.

NEW CROP OF PROTEINSFortitech’s Hazen notes that although the protein beverage market is growing, it also is segmenting into specialized areas, which are growing dramatically.

“There is still a lot of ‘traditional’ soy- and whey-fortified protein beverages being developed and launched into the market, but there is an increase in momentum being gained in the ‘novel’ vegetable protein arena,” he says. “Protein from a number of vegetables and grains are making their way into mainstream beverage launches. These include everything from pea and rice protein to quinoa and chia. This is allowing protein beverages to move beyond their traditional place within the sports performance nutrition market and into more mainstream consumer products targeting weight loss.”

Neelesh Varde, senior product manager with Geneva, Ill.-based Roquette America, adds that proteins such as pea and algal also are emerging.

“More recently, pea protein has addressed the need for a non-allergenic, high-quality, non-[genetically modified organism] (GMO) protein source with good nutritionals and functionality,” he says. “One of the emerging proteins is algal protein, [which is] derived from microalgae.”

As part of its protein line, Roquette offers Nutralys, its line of proteins sourced from yellow peas. The beverage-suitable proteins are concentrated at 85 percent, non-GMO and free of allergen concerns, Varde says. The company’s algal protein also offers a respectable amino acids profile and does not affect

the texture, he explains.Offering an alfalfa protein

concentrate, Wisconsin Specialty Protein’s Alfapro contains more than 50 percent protein, essential amino acids,

13 minerals, eight vitamins, chlorophyll, xanthophylls and omega fatty acids. Its sister company Cyvex Nutrition developed SolaThin, a protein isolate made solely from potatoes. BI

By Jessica Jacobsen

To read more about formulating with proteins, visit bevindustry.com/proteinfortifi cation.

For more information…

Fortifying foods and beverages withwhey protein ensures consumers get a high-quality protein source to help build and maintain lean muscle.

Whey proteins deliver:

biological value

Flex your musclesWith whey protein fortification fromHilmar Ingredients

Flex your marketing muscle and offer foods

show you how. Give us a call or learn moreat hilmaringredients.com.

hilmaringredients.comToll free: 888.300.4465 or 209.667.6076

©

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Distribution

The 2014 truck roundupBEVERAGE TRUCK NEWS CONTINUES TO SHOW A MIXED BAG FOR 2014 AS many truck manufacturers are still in a “holding pattern” due to economic uncertainty. However, in the midst of what could be identified as a stagnant market for product updates, there are a few bright spots.

The most notable of the positive news relates to the introduction of three all-new van offerings in the light-duty segment. Vans have long been limited to merchandising tasks or servicing coolers and dispensers, mainly due to dimensional limitations. Although these new vans won’t be able to take on a full seven- to eight-stop route, they’re all built to be pallet friendly.

The all-new 2014 Ford Transit and Ram ProMaster join the Mercedes Sprinter and Nissan NV in the full-size, stand-up-friendly cargo van segment, while a completely redesigned 2014 Ford Transit Connect continues to be the sole player in the space between mini and full-sized cargo vans.

The cargo-friendly configuration of these three new vans is by no means new, as all carry DNA from similar configurations that have been popular in Europe and Asia for a decade or more. Where traditional North American cargo vans were adapted from passenger-centric “wagon” models, most of the offshore van designs were built for cargo and only adapted for passenger use as an afterthought.

Aside from the trio of new vans, much of the other news is focused on enhancing existing models with additional capabilities, capacity and performance. Even with an iffy economy, truck engineers still need to keep busy, so these welcome refinements get the attention that would otherwise be scarce when multiple new models are being rolled out.

Work-ready pickup trucks also are in the news, mainly due to stronger demand for their consumer-market brethren. Ford will roll out its new F-Series Super Duty line of 2015 models soon, and Toyota just completed a major redesign of its Tundra full-size pickup.

Here are the highlights for 2014:

2014 CHEVROLET EXPRESS& GMC SAVANA VAN CUTAWAY The 2014 Chevrolet Express and GMC Savana cutaway vans feature a new 9,900-pound gross vehicle weight rating (GVWR) with a 159-inch wheelbase, along with higher GVWRs on 3500 models up to 10,100 pounds. The 4500 models have a maximum GVWR of 14,200 pounds. The cutaway

vans are available with three wheelbase lengths, single or dual rear wheels, and three engine choices — including the Duramax 6.6-liter turbo-diesel.

The Duramax turbo-diesel V8 engine is rated at 260 horsepower and 525 pound-feet of torque. It employs a large-capacity selective catalytic reduction (SCR) emission system that uses urea-based Diesel Exhaust Fluid (DEF). The DEF is housed in a 5.83-gallon tank and needs to be replenished approximately every 5,000 miles. Electrically heated lines feed the DEF to the emission system to ensure adequate delivery in cold weather, according to the company.

A fuel-operated heater is available for vans equipped with the Duramax 6.6-liter engine to quickly provide heat to the vehicle interior in cold weather. This seamlessly integrated system is designed into the Express chassis, saving customers the time and labor of upfitting an aftermarket system. The electronically controlled, fuel-operated heater operates automatically, turning on and off within parameters that include outside air temperature, fuel level, coolant temperature and engine use.

A 4.8-liter gas V8 engine is standard on 3500 models, generating 285 horsepower and 295 pound-feet of torque; while a 6.0-liter gas V8 engine rated at 342 horsepower and 373 pound-feet of torque is standard on 4500 models. The 6.0-liter engine also is offered in a special version with hardened valve seats for the available propane-powered 4500 models.

Cutaway models are built on a strong, ladder-type full-frame architecture. Varying frame sections support the 139-, 159- and 177-inch wheelbase lengths. Soft-mount body-mount “donuts” and bolts, which attach upfit bodies to the chassis, are available on all models. All cutaway models feature an independent short-long arm (SLA) front suspension, power steering, and four-wheel disc brakes with four-wheel antilock braking.

2014 CHEVROLET SILVERADO& GMC SIERRA 3500HD CHASSIS CAB The 3500HD chassis cabs for 2014 are available as regular cab models with 137.5- and 162-inch wheelbase lengths or crew cab models built on a 171.5-inch wheelbase. The cab-to-axle length is

What’s new in the f leet space

2014 Chevrolet Express van cutaway (Image courtesy of General Motors Co.)

>>

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60 inches for the regular cab (with a 137.5-inch wheelbase) and crew cab models, and 84 inches for the regular cab (with a 162-inch wheelbase) configuration.

Capabilities of the 3500 HD models include a maximum GVWR rating of 13,200 pounds, with payload ratings ranging from 6,443 pounds to 7,499 pounds. A 6.0-liter gas V8 engine with a six-speed automatic transmission is standard on all models. A Duramax 6.6-liter turbo-diesel engine is available, paired with the Allison 1000 six-speed automatic transmission.

2015 FORD SUPER DUTY PICKUPFord recently introduced the 2015 F-Series Super Duty lineup featuring a second-generation 6.7-liter Power Stroke V8 turbo diesel engine. A key innovation on the 6.7-liter Power Stroke is its “reverse-flow” layout. This design places the exhaust inside the engine’s V-shape, while the air intake is positioned on the outside of the V.

Positioning the turbo inside the engine’s valley helps isolate the engine’s hottest temperatures, improving performance and efficiency while also reducing noise, vibration and harshness, according to the company. Shorter airflow from the exhaust system to the turbocharger also improves throttle response. The Power Stroke also features improved engine exhaust braking, which can be manually controlled by a push-button switch on the dashboard. Extra braking power helps reduce wear and tear on wheel brakes and requires less manual brake application from the driver, especially on downhill grades.

2014 FORD TRANSIT CONNECT VANRedesigned from the ground up, the 2014 Ford Transit Connect cargo van is said to drive and park like a car, haul more payload than a pickup, and deliver fuel efficiency of more than 30 mpg on the highway, according to the company. The Transit Connect is offered in two wheelbase lengths, in XL and XLT series trim levels, and with up to a 1,600-pound payload and more than 130 cubic feet of cargo space. For the first time, the Transit Connect also is approved to tow up to 2,000 pounds when properly equipped.

The Transit Connect offers a choice between two four-cylinder engines: a standard 2.5-liter and an optional 1.6-liter EcoBoost estimated to deliver more than 30 mpg on the highway. The 2.5-liter engine also can be specified with a compressed natural gas/liquid propane gas (CNG/LPG) preparation package. Both engines come mated to an efficient six-speed automatic transmission.

2014 FORD TRANSIT VANOriginally announced last year, the all-new 2014 Ford Transit will be available in late 2013. The Transit will be available in three body lengths, two wheelbase lengths, and three roof heights as well as built-in van, wagon, chassis cab and cutaway configurations. The Transit is said to achieve an average of 25 percent better fuel economy and haul at least 300 pounds more than Ford’s current E-Series van.

Engine options for the Transit include a standard 3.7-liter V6, the 3.5-liter EcoBoost V6, and an all-new 3.2-liter Power Stroke I5 diesel. Ford will offer the 3.7-liter V6 engine with a CNG/LPG prep kit. The 3.7-liter V6 engine also is designed for E85 flex fuel capability.

The high-roof Transit model features 81.5 inches of interior cargo height, while the medium-roof model can accommodate up to 72 inches of cargo height, and the low-roof model has almost 56 inches of cargo height. The rear cargo doors can open up to 270 degrees for easy loading and unloading.

Cargo volume ranges from approximately 250 to almost 500 cubic feet as a “jumbo” configuration — nearly 80 percent more space than the largest current E-Series van — and more than twice the volume of today’s standard E-Series. This means that one “jumbo” Transit can haul the volume of two current models in a fuel-efficient manner.

In addition to the van config-urations, Transit chassis cab and cutaway models will be available in three wheelbase lengths — 138-, 156- or 178-inch — with GVWRs from 9,000 pounds to 10,360 pounds.

FREIGHTLINERDesigned with regional haul and less-than-truckload applications in mind, the Freightliner Cascadia and Cascadia Evolution 113 day-cab now are available with a completely proprietary “Detroit” powertrain.

By Tom Kelley

continued on page 58

2015 Ford Super Duty pickup (Image courtesy of Ford Motor Co.)>>

Freightliner Cascadia tractor (Image courtesy of Daimler Trucks North America LLC)

>>

2014 GMC Sierra 3500HD chassis cab (Image courtesy of General Motors Co.)

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Distribution

Detroit’s automated manual transmission, the DT12, will be available with Cascadia Evolution 113 day cabs in combination with the Detroit DD13 engine.

Available with multiple cab configurations supporting a wide range of bodies and chassis-mounted equipment, Freightliner’s M2 106 and M2 112 offer flexibility, efficiency and maneuverability. They perform well in tight spots, with wheel cuts up to 55 degrees, set-back front axles, and swept-back bumpers. A 2,500-square-inch windshield, aerodynamic sloped hood, and low-profile dashboard provide excellent driver visibility. Designed for driver comfort and productivity, the M2 106 and M2 112 feature a cab with a low step-in height, a large door opening with strategically

placed interior and exterior grab handles, as well as flexible seating options with a number of storage compartments.

ISUZUThe 2014 Isuzu NPR, NQR and NRR models are low-cab forward (cabover) trucks, available with a three-person standard cab. NPR and NQR models also are available with a seven-passenger crew cab.

The 2014 NPR Gas model offers a GVWR of 12,000 pounds, with a wheelbase length between 109 and 176 inches. It is powered by a 6.0-liter Vortex V8 engine, producing 297 horsepower and 372 pound-feet

of torque, mated to a 6L90 Hydra-Matic six-speed automatic transmission with double overdrive. The NPR-HD Gas model ups the GVWR to 14,500 pounds. The Vortec engine is available with a CNG/LPG alternative fuel capable option.

The 2014 NPR-HD Diesel model offers a GVWR of 14,500 pounds, with wheelbase lengths ranging from 109 to 176 inches. It is powered by a 5.2-liter Isuzu diesel engine, producing 215 horsepower and 452 pound-feet of torque, mated to an Aisin A465 six-speed automatic transmission with double overdrive featuring a lockup torque convertor and power takeoff (PTO) opening.

The 2014 NQR model offers a GVWR of 17,950 pounds, with a wheelbase length between 109 and 200 inches. It is powered by a 5.2-liter Isuzu diesel engine, producing 215 horsepower and 452 pound-feet of torque, mated to an Aisin A465 six-speed automatic transmission with double overdrive featuring a lockup torque convertor and PTO opening. Stepping up to the NRR model increases the GVWR to 19,500 pounds and the maximum wheelbase length to 212 inches.

KENWORTH CABOVERSKenworth’s K270 and K370 medium-duty cabovers now offer the option of a second 45-gallon fuel tank, providing greater range and longer operating time between refueling. The second 45-gallon rectangular fuel tank utilizes approximately 28 inches of frame space, with clearance between the battery box and the fuel tank at nearly 5.5 inches, and the distance from the back of the cab to the back of the fuel tank is just

As beverage distributors continue to expand their offerings with niche products like craft beers and gourmet sodas, the need for custom fleet graphics grows as well. Although the beverage mega-brands have entire departments dedicated to designing vehicle graphics, distributors are usually on their own when it comes to promoting niche brands.

A few years ago, when Ford debuted the previous generation Transit Connect cargo van in North America, gaining visibility for the unique compact van configuration and for the businesses using the vans was an important consideration. At that time, Ford launched its Commercial Graphics Tool to help serve both needs.

Although operators of the original Transit Connect were among the first to take advantage of customizing their vehicles using this graphics service, Ford now offers the service throughout its fleet of commercial vehicles so that owners of the F-Series Super Duty, E-Series, the new Transit Connect, and the upcoming Transit van can market their businesses.

Improvements to the Ford Commercial Graphics tool have made the process of creating, ordering and purchasing vehicle

wraps simpler than ever. The tool’s cleaner interface, ability to better customize images visually, and streamlined ordering process provides businesses with more control than ever to develop their brand images.

“The site accommodates a variety of designs and budgets — from businesses that operate a single vehicle to larger fleets,” said Kevin Koswick, Ford’s North American fleet director, in a statement. “Graphics are a tremendous way to make a first impression, and the retooling of this site helps customers make a better design more easily.”

For even more choices and inspiration, customers now have the ability to tap into more than 5 million images from the library of Getty Images, a world leader in stock photos. Customers also can upload their own pictures. Additionally, a new service through 3M allows customers to work with on-staff designers to develop themes for their vehicles, helping businesses enhance their brands.

“It’s a true advantage to have design experts take customers through the design process of their vehicle wrap,” Koswick said in a statement. “The business still has control over the design of its graphics, but our team can help them refine their brand image.”

All production is done in-house, and installation is handled by the customer’s certified Ford dealer or a specially trained installation company obtained through the dealer. Designs are covered with a clear over-laminate to add durability to the product and lessen the effects of ultraviolet light on the material. Graphics are designed to last between three and five years.

The site also allows customers to share their designs through social media sites including Facebook, giving businesses the opportunity to become even more interactive with their communities and receive early feedback on designs. To learn more, visit fordcommercialgraphics.com. BI

FORD HELPS BUSINESSES DESIGN WITH CUSTOM GRAPHICS TOOL

continued from page 57

Ford custom graphics (Image courtesy of Ford Motor Corp.)>>

Isuzu NPR cabover (Image courtesy of Isuzu Motors Ltd.)>>

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more than 100 inches on the passenger-side frame rail. The second 45-gallon tank for the K270 and K370 is available on trucks with specs of 19.5-inch tires and wheelbase lengths from 166 to 238 inches, or with 22.5-inch tires and wheelbase lengths between 170 and 242 inches.

A key advantage the cabovers have compared with conventional cab medium-duty trucks is a 55-degree wheel cut, which enables a tighter turning radius and greater maneuverability in crowded urban environments.

The bumper-to-back-of-cab (BBC) distance of only 63.4 inches on the Kenworth cabovers — compared with a 106-inch BBC on medium-duty conventionals — also provides plenty of room for a large van body. This enables the K270 and K370 to haul more payload with a shorter overall length. This is especially important as overall length is beginning to be regulated in some major urban areas, according to the company. In addition, the Kenworth cabovers offer a large windshield for enhanced visibility and room to carry a three-person crew with a driver air-suspended seat and a two-person bench seat.

Both the K270 and K370 are powered by a 6.7-liter Paccar PX-7 engine with a standard 220 horse-

power rating and 520 pound-feet of torque. Optional ratings range up to 250 horsepower and 660 pound-feet of torque. Both models are available with Allison five-speed

transmissions.

NAVISTAR (INTERNATIONAL)PROSTAR TRACTOR Earlier this year, Navistar began

shipping its first International ProStar trucks powered by the company’s proprietary SCR-based MaxxForce 13 engine. The company had previously

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continued on page 60

Kenworth K270 and K370 cabovers (Image courtesy of Paccar Co.)

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Navistar (International) ProStar tractor (Image courtesy of Navistar Inc.)

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Distribution

tried to meet emission regulations with exhaust gas recirculation-based emission control systems but shifted to the SCR technology beginning in late 2012.

Navistar introduced its first SCR-based commercial trucks for U.S. and Canadian markets in December 2012 with the launch of ProStar powered by the Cummins ISX 15-liter engine. The remaining lineup of International heavy-duty truck models are being switched to SCR-based engine technology in a phased launch based on volume and customer demand.

2014 RAM PROMASTER VANThe 2014 ProMaster is Ram Commercial’s latest addition to its commercial vehicle lineup. The ProMaster is based on the Fiat Ducato, which has been in production for more than 30 years. The Fiat Ducato now is in its third generation with more than 4.5 million units sold worldwide.

Although conceived and developed in Italy, the ProMaster spent considerable time on this side of the Atlantic undergoing extensive, extreme-duty testing to prepare for the North American market.

Engineering the new ProMaster for North America required a number of changes for new capabilities, powertrains, environments, duty cycles and customers.

The 2014 ProMaster offers 14 possible configurations featuring three GVWRs, three wheelbase lengths, and low and high roof heights built on cargo van, window van, chassis

cab and chassis cab cutaway configurations. The body-integral construction and multiple configurations allow the ProMaster to be up-fitted for a wide range of tasks, according to the company.

The ProMaster’s front-wheel-drive system and unibody frame architecture make it possible to carry up to 5,145 pounds with a

maximum towing capacity of up to 5,100 pounds. The ProMaster’s gross combined weight rating (GCWR) reaches up to 12,500 pounds.

The ProMaster features a standard sliding cargo door on the passenger side with an optional sliding cargo door on the driver’s side. The sliding door openings are based on roof height — 49 by 60 inches for the low-roof model and 49 by 70 inches for high-roof models. In the rear, an available two-position rear clamshell door swings open as wide as 260 degrees, folding almost flat to the side of the van. All three door openings enable forklift pallet loading and unloading.

The ProMaster’s powertrain lineup includes a standard V6 gas engine and an optional I4 EcoDiesel engine. The engines are paired, respectively, with a six-speed 62TE automatic transmission and an electronically controlled six-speed M40 automated manual transmission. A trailer/tow mode comes standard with both transmissions.

The standard 3.6-liter Pentastar V6 engine is rated at 280 horsepower with 260 pound-feet of torque. The 3.0-liter inline four-cylinder EcoDiesel engine generates 174 horsepower and 295 pound-feet of torque.

The 62TE automatic transmission has been upgraded to accommodate the ProMaster’s payload capacity. A 3.86 final-drive ratio enables climbing grades easily with a full load. A lower overall top gear ratio delivers a more economical highway operation.

The M40 gearbox delivers the efficiency of a manual transmission with the functionality of an automatic transmission. At its core, it is a manual transmission, but gear shifts and clutch functions are accomplished with an electro-hydraulic actuation system. However, the driver can opt for manual shift-lever inputs when desired.

2014 TOYOTA TUNDRA PICKUPThe redesigned 2014 Toyota Tundra half-ton full-size pickup truck is offered in three cab styles — two-door Regular Cab, four-door Double Cab, and four-door CrewMax, all available in 4x2 and 4x4 models. Tundra Regular Cab and Double Cab models are offered with 78.7-inch standard-bed or 97.6-inch long-bed configurations, while the CrewMax comes with a 66.7-inch bed. All beds are 22.2 inches deep.

A 4.0-liter Dual Overhead Cam (DOHC) V6 engine producing 270 horsepower and 278 pound-feet of torque is standard on Tundra Regular and Double Cab models, paired with a five-speed automatic transmission. The U.S. Environmental Protection Agency (EPA)-estimated fuel economy is 16 mpg in the city and 20 mpg on the highway.

An available 4.6-liter DOHC i-Force V8 engine offers 310 horsepower and 327 pound-feet of torque, with an EPA-estimated fuel economy of 15 mpg in the city and 19 mpg on the highway for 4x2 models, and 14 mpg in the city and 18 mpg on the highway for 4x4 models, according to the company.

continued from page 59

2014 Ram ProMaster van (Image courtesy of Chrysler Group LLC)>>

2014 Toyota Tundra pickup (Image courtesy of Toyota Motor Corp.)>>

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The top engine choice for the Tundra is the 5.7-liter DOHC i-Force V8, which generates 381 horsepower and 401 pound-feet of torque. The 5.7-liter engine is offered in both gasoline and “Flex Fuel” variants. Fuel efficiency on 4x2 models is 13 mpg in the city and 18 mpg on the highway, while the 4x4 achieves 13 mpg in the city and 17 mpg on the highway, according to the company.

Both V8 engines come standard with a six-speed electronically controlled automatic transmission. All Tundra engines feature an aluminum cylinder block and DOHC heads, along with Dual Variable Valve Timing with intelligence (VVT-i) for a broad torque curve and optimized efficiency.

VOLVO NATURALGAS POWERED DAY-CAB TRACTORS Volvo currently offers VNM and VNL day-cab tractors powered by spark-ignited natural gas engines. VNL day-cabs equipped with Volvo’s proprietary D13-LNG compression ignition natural gas engine will be available in 2014.

Earlier this year, Volvo announced that it would commercialize DiMethyl Ether (DME)-powered vehicles in 2015 as part of its comprehensive “Blue Power” alternative fuels strategy for North America.

DME mirrors the exceptional performance qualities and energy efficiency of diesel and burns clean without producing any soot, so no diesel particulate filter is necessary.

It is non-toxic and non-carcinogenic and can be made from natural gas or a variety of sustainable feedstocks, such as biogas from food and animal waste, landfills and grass clippings, according to the company.

When produced from biomass or biogas, DME can provide up to a95 percent carbon dioxide reduction compared with diesel. DME has been used around the world for decades as a cooking fuel and as an aerosol propellant in cosmetics and other household products, it adds.

The D13-LNG and D13-DME engines will be based on the Volvo D13 diesel engine, and the Volvo I-Shift automated manual transmission will be standard on both models.

WESTERN STARThe Western Star 4700 tractor is available in set-forward and set-back day-cab tractor configurations, incorporating a high-visibility hood as well as a wide variety of fifth-wheel and wheelbase selections. The 4700 also features a 110-inch BBC, providing excellent maneuverability in tight spaces.

A broad range of available powertrain options range from the Cummins ISL engine to the Detroit DD13, with power ratings from 260 to 470 horsepower. Combined with several transmission offerings including the Allison automatic, Eaton manual and Eaton UltraShift Plus, the 4700 tractor can be specified perfectly for more efficient distribution operations. When specified with weight-saving components, the lightweight 4700 tractor also delivers improved fuel savings. BI

Volvo CNG-powered VNL day-cab tractor (Image courtesy of Volvo Trucks North America)

>>

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Operations

Software controls optimizing warehouses

AMERICAN RETAILER BUILD-A-BEAR WORKSHOP INC. HAS MADE MILLIONS BY allowing children to create their new best friend in-store. However, the fun, frivolity of kids “stuffing” their fuzzy companions sometimes can result in toys that are busting at the seams. Luckily, this type of problem can easily be fixed with a needle and thread. But in a beverage warehouse, a facility that’s busting at the seams with SKUs needs more than amateur sewing knowledge to solve its problems.

“SKU proliferation has affected the beverage industry in much the same way that it’s affected the retail sector,” says Gene Billings, director of software products for Cincinnati-based Intelligrated. “This product expansion requires better management of warehouse, slotting [and] product movement from receiving to picking through shipping. With the increases in SKUs, better visibility into trends such as seasonality and how that will affect the efficiency of fulfillment and overall storage needs becomes greatly important. Along with the requirement of tightening up warehouses’ storage, SKU expansion also brings with it the need to further optimize order fulfillment processes since more touches are required.”

As warehouses look to optimize their operations, many are turning to software applications for solutions such as warehouse management software (WMS) or warehouse control software (WCS).

“Wholesalers are utilizing WMS/WCS applications in the beverage industry to help them move product more quickly and efficiently, reduce their inventory levels, and increase their order fulfillment accuracy,” says Dave Williams, director of software development for Westfalia Technologies Inc., York, Pa.

Lennard Koppelmann, director of the IT and automated systems division for Charlotte, N.C.-based Schaefer Systems International Inc. (SSI), notes that WMS systems can provide increased transparency across warehouse operations.

“From receiving to shipping, all products can be tracked by vendor/manufacturer, lot number, best-

before date, etc.,” he says. “Inventory segregation enables the wholesaler to maintain different ‘owners’ for the product, which can then be taken into consideration for order fulfillment as well.”

By having this type of organization, companies can implement practices like first in, first out as well as create safeguards to ensure that customer orders will be filled properly and timely, says John Barry, vice president of sales and marketing for the Americas for ITW Warehouse Automation (ITWWA), Arden, N.C.

“The real benefit is you just become more efficient and you’re really able to

direct commands in a more organized and efficient [manner],” he says.

APPLICATION LEVELSOnce a distributor has determined that it wants to implement software controls for its storage and picking operations, it then is tasked with deciding what level of software is suitable for its business.

For example, a cloud-based WMS can be ideal for distributors that have experienced fast growth or seasonal spikes, says Chuck Fuerst, director of product strategy for HighJump Software, Minneapolis.

“When a vendor hosts the application offsite, installation of the system is much faster, and it frees up a company’s IT team to focus on customer-facing applications rather than infrastructure software,” he says. “In addition, a company can access more power or dial it down based on its sales spikes and valleys. In short, cloud-based WMS/WCS are an extremely elastic and efficient approach for a beverage company.”

Outlook plans for size and automation also can be an important factor when determining what type of software systems to employ.

“As a distributor, you need to determine how to forecast the size your operations are going to be,” says Markus Schmidt, senior vice president of U.S. operations for Swisslog, Newport News, Va. “After you have done that, you might want to consider one level of mechanization or automation that you want to deploy [for] that size.”

Bill Leber, business development manager for warehouse and distribution solutions for Swisslog, notes that no matter what size of operation a company is running, it needs to have some rudimentary WMS for working in the beverage industry. However, if the warehouse contains more advanced automation capabilities, a WCS will interface between orders and inventory and communicate that to the machinery, such as automated storage and retrieval systems, sorting systems, conveyors and more.

Echoing similar thoughts, Intelligrated’s Billings says that the WCS will orchestrate the automation equipment to get the most out of a hardware investment. “A robust WCS should be able to recognize opportunities in the order-fulfillment process to insert pick tasks in real-time in order to remove unnecessary gaps in the picking process,” he says.

WMS, WCSsystems offer

eff icient solutions

Distributors are utilizing warehouse management software and warehouse control software to increase track and trace, accuracy and effi ciency, experts note. (Image courtesy of Intelligrated)

>>

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Westfalia’s Williams emphasizes that when working with automation, it is important that WMS and WCS systems are working synergistically.

“A warehouse where automation is present requires the use of a WCS that is designed with automation in mind,” he says. “It is also important that the WMS and the WCS are tightly coupled in an automated facility. If they are not, then product auditability/traceability can be compromised.”

Westfalia’s Savanna.Net is a flexible, modular WMS and a fully integrated WCS that is based on Microsoft C#.Net technology, Williams says.

He adds that it is important for companies to do their “homework” when selecting a WMS or WCS and that bigger isn’t always better. “You need to work with a company that you can trust and that understands the nuances of your business,” he says.

SSI’s Koppelmann adds that whether large or small, scaling a software system to fit your operations is a key component.

“For any warehouse operation, it is important that the WMS solution scales to size both from a functional as well as cost standpoint,” he says. “Traditional WMS solutions may not always be cost efficient for smaller operations because many of the features that come with standard WMS packages may not be needed. Especially for smaller operations, a lightweight WMS solution that supports all basic warehouse processes is required. This will enable the warehouse to utilize the WMS solution a lot quicker and with a steeper ramp-up curve.”

AUTOMATED FUTUREDue to a number of factors impacting the beverage industry, suppliers foresee automation playing a bigger role in warehouse operations and see software systems as a solution to handling that transition.

“As real estate costs skyrocket, the need to store more products in a smaller footprint will continue to drive companies to look for alternatives like deep storage,” Westfalia’s Williams says. “The ability to manage inventory levels more closely and the need to provide unparalleled solutions for product traceability will require the beverage industry to further look to automation and WMS/WCS applications to manage their distribution.”

Swisslog’s Leber echoes similar sentiments: “If you look at longer-

term trends, [WCS] is going to be a good fit, we believe, for higher levels of automation, because of a couple of things, in that energy costs and SKU proliferation are kind of driving the

efficiencies toward putting more and more distribution systems close to customers in urban areas, and that’s where you run into cost concerns. People want to retrofit [and] better densify.”

By making warehouses denser, higher forms of automation will become necessary and require the software to support the more mechanized operations, he adds. BI

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Supplier’s Marketplace

Business-class trucksHighlighting its Freightliner Trucks Business Class M2, Daimler Trucks North America LLC’sFreightliner trucks offer the M2 106 and M2 112, which both feature best-in-class visibility with a2,500-square-inch windshield and have numerous manual, automated and automatic transmission choices, the company says. With a wheel cut of up to 55 degrees, the trucks can navigate narrow city streets or tight loading zones, it adds. The M2 106 and M2 112 also have been designed for easier maintenance and service, keeping downtime to a minimum. Adding to the value of ownership,Freightliner’s customer support offers a network of more than 300 dealers across North America and a24-hour assistance hotline that will keep customers operating at peak efficiency every day, it says. These features help drivers deliver more products to more customers, the company says. ■ Daimler Trucks North America LLC, 4435 N. Channel Ave., Portland, Ore. 97217; 503/745-8000; freightlinertrucks.com.

Safety-rated control panel Ross Systems and Controls, a division of Charles Ross & Son Co., offers a Single Axis Control System in a National Electrical Manufacturers Association 4X stainless steel enclosure for soft start and variable speed control of a Ross Ribbon Blender. Its 4-inch color touchscreen is mounted on the panel door for control and viewing of agitator speed, load, cycle time and agitator direction. A variable frequency drive, an emergency stop button, a fused rotary disconnect switch, branch circuit protection, interlocking safety circuitry and fan shrouds also are included. This Underwriters Laboratories-rated panel is built to conform to National Fire Protection Association 79 standards. ■ Charles Ross & Son Co., 710 Old Willets Path, Hauppauge, N.Y. 11788; 800/243-7677; mixers.com.

Software upgradesNoregon Systems released version 3 of its JPro Commercial Fleet Diagnostics 2013 software. This latest version includes coverage for Paccar MX engines, Allison fifth-generation transmissions, and Environmental Protection Agency (EPA) 07/EPA 2010 Cummins engines as well as coverage and support for all 2013 General Motors (GM) vehicles. In addition, JPro 2013 v3 offers bi-directional tests for 2010-2012 GM Express and Savana full-size vans with 6-liter gas engines, tire pressure sensor tracking for PressurePro tire monitoring systems, coverage and support for Takata SafeTrak lane departure warning systems, and an auto-update feature to prompt installation of important updates. Current JPro license holders with active support agreements can access the update online on JPro’s website. Other interested parties can request a free 14-day trial through Noregon Systems. ■ Noregon Systems Inc., 7009 Albert Pick Road, Greensboro, N.C. 27409; 336/615-8555; noregon.com.

Plant conceptsGEA Filtration now offers beer dealcoholization plant concepts for smaller capacities. Its latest designs are based on the cross-flow membrane filtration process and are available in different versions for capacities up to 5 hectoliters an hour and 10 hectoliters an hour. If required, the plants also can be revamped for a capacity increase, the company says. These plants operate at filtration temperatures of less than 9 degrees Celsius, which helps maintain the aroma and characteristic properties of the beer, it says. The plant designs also are compact and optimized for batch processes, and their partial automation ensures process reliability and low service expenditure, it adds. ■ GEA Process Engineering; Gladsaxevej 305, P.O. Box 45, 2860 Soborg, Denmark; 011/45-3954-5454; geap.com.

Cleaning toolsUnion Jack released a full line of professional cleaning brushes and tools from Hill Brush Inc. These cleaning tools are designed to improve and raise the visibility of internal hygiene control, support Hazard Analysis and Critical Control Point (HACCP) compliance, and make it easier to maintain hygiene regulations, the company says. Made from U.S. Food and Drug Administration-compliant materials, the brushes and tools are available in eight colors — blue, green, red, white, yellow, orange, purple and black — to help reduce cross-contamination through color coordination, it says. The anti-microbial brushes and tools also use silver-ion technology at a precise concentration to help prevent bacterial contamination including Methicillin-

NEWSSpirax Sarco, Blythewood, S.C., launched its latest video, “Heat Exchange Stall,” on its YouTube channel. The video was created to give steam system designers and operators a visual insight into the most effective way to operate Steam Heat Exchange, the company says. By using a “closed-loop” system, customers can increase the performance and longevity of their heat transfer equipment, thereby saving energy and reducing maintenance costs, it says.

Hamilton Caster and Manufacturing Co., Hamilton, Ohio, launched cartsandtrailers.com, a website that is dedicated to the company’s entire line of stock and custom-engineered carts and trailers. It also contains a photo gallery, case studies, and an interactive quote-request page.

PMMI, Reston, Va., announced that Pack Expo 2014 will take place Nov. 2-5, 2014, in Chicago.

Miami-based Ryder System Inc. opened natural gas fueling stations at two of its maintenance and fueling facilities in Orange, Calif., and Fontana, Calif., to service the general public as well as Ryder lease and rental customers. The two facilities are part of a larger project that will displace more than 1.5 million gallons of diesel annually with 100 percent domestically produced low-carbon natural gas.

Conco Systems Inc., Verona, Pa., released “A Guide to Total Performance for Condensers.” This guide is intended to help power plants achieve a balance of productivity, reliability and profitability through the integration of cleaning, non-destructive testing, and leak detection technology. It also includes a diagram of the Rankine Cycle and Conco solutions for performance improvements. For more information, visit concosystems.com.

Cincinnati-based Intelligrated’s customer service and support team now offers single-source support for Knighted Vision warehouse management, WCSPlus warehouse control, and GoalPost labor management software customers with expanded technical support contracts.

Midwest Engineering Systems Inc., Pewaukee, Wis., earned the Certified Robotic Integrator designation from the Robotic Industries Association, Ann Arbor, Mich.

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resistant Staphylococcus aureus (MRSA) and E-Coli. In addition, resin-set brushes are designed to prevent loss of bristles and help keep dirt, moisture and bacteria out of the tuft holes. ■ Union Jack, 657 S. Hurstbourne Parkway, No. 264, Louisville, Ky. 40222; 800/672-8119; unionjacktools.com.

Managingcosts and cyclesRutherford & Associates released eoStar route management software. The application is designed to help companies in the beverage and food industries control costs and gain greater management visibility of the sales cycle, the company says. For direct-store-distribution personnel, eoStar offers access to product and inventory information and allows salespeople to process orders quickly and accurately, the company says. In addition, the combination of store-level information with eoStar’s advanced electronic data interchange (EDI) shortens order cycles, reduces the frequency of out-of-stocks, and manages the shelf-life of products in stores, it says. The platform also includes integrated applications to further assist with sales and marketing. Its forecasting chart prediction tool uses widgets to let purchasing employees include factors like inventory, ads, promotions, events and other variables to form a predictive model. A real-time sales analysis tool provides insights by client, region, time frame and other variables to help with decision-making. For product handling, eoStar’s palletization tool helps distribution personnel stack stable pallets while taking into account factors like product weight, and its voice-pick application gives oral directions to distribution personnel so that they can keep their eyes focused on the products instead of their order lists. In addition, eoStar offers an eoTouch version of the application for iPhones and iPads. ■ Rutherford and Associates, 1009 Productions Court, Holland, Mich. 49423; 800/270-7558; eostar.com.

Ozone upgradeOzone International offers ozone systems, including self-contained ozone generators, monitors and telemetry, for the bottled water industry. By updating their ozone systems, water bottlers can improve product quality and safety, it says. The ozone service package includes all required maintenance for the entire term plus remote monitoring, data logging and upgrades. In-line monitors

and closed-loop control provide safety and efficacy, and work areas are equipped with ambient monitors to ensure precise ozone concentrations. Ozone International also offers a nationwide network of service technicians that are available to monitor the equipment onsite or remotely for optimum efficiency. ■ Ozone International LLC, 12685 Miller Road NE, Bainbridge Island, Wash. 98110; 888/780-5552; o3international.com.

Rugged technologyIntermec, a division of Honeywell Scanning and Mobility, released the CN51 rugged mobile computing solution. The new device offers users the choice of Android or Windows operating systems for versatile use in direct-store-delivery, transportation, logistics, and field service operations. Its large, multi-touch, outdoor-readable screen provides ample room for application viewing with less scrolling for greater productivity as well as more space for capturing signatures. It also is equipped with smart battery technology, delivering a battery life that lasts through a full 12-hour shift and beyond without interruption to replace or recharge. The CN51 also is available with Intermec’s EA30 or EA31 high-performance imagers for optimal reading of 1- and 2-D barcodes in various conditions, including low-light scanning environments. Its 5-megapixel camera along with Mobile Document Imaging and Remote Deposit Capture applications enable the user to convert full-size paper documents or check payments into electronic files while on the road, transmitting directly from the point of capture to the back-office workflow. For added flexibility, the CN51 also is equipped with a voice-capable Flexible Network radio, allowing the same device to operate on either a code division multiple access (CDMA) or universal mobile telecommunications system (UMTS) wireless network in North America. With the ability to switch networks on-the-fly, enterprises with large, geographically dispersed workforces can rely on the CN51 to meet changing coverage needs and ensure anytime, anywhere access to business-critical information. ■ Honeywell Scanning and Mobility, 125 Technology Parkway, Norcross, Ga. 30092; 770/447-4224; honeywellaidc.com.

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Supplier’s Marketplace

Recyclableto-go cupBerry Plastics Corp. introduced Versalite, afully recyclable to-gocup for hot and cold beverages. Made ofNo. 5 plastic polypropylene, the cup applies thermal management to keep the beverage hot or cold for an extended period of time while also offering environmental advantages, the company says. Versalite cups are available in 12-, 16- and 20-ounce sizes. The company also offers a lid, which is not made of Versalite material, that is compatible with all three of the cup sizes. ■ Berry Plastics Corp., P.O. Box 959, Evansville, Ind. 47706; 812/424-2904; berryplastics.com.

Designed for productivityMitsubishi Caterpillar Forklift America introduced a new series of 4,500-6,500-pound-capacity electric four-wheel cushion tire lift trucks. Designed to work in a variety of applications, the EC22N2 – EC30LN2 Series includes 36-48 voltage options and features operator ergonomics and enhanced performance levels, the company says. For example, the lift trucks are equipped with three-phase alternating-current (AC) technology to provide enhanced acceleration and lift speeds for increased productivity, the company says. These forklifts also are equipped with separate drive, hydraulic and steer motors that are tailored to deliver the exact performance level required while minimizing overall energy consumption, it says. For operator comfort, hydraulic levels are positioned next to the seat to allow the operator’s arm to rest in a natural, relaxed position while operating the lift truck. It also features increased operator compartment space, a larger floor board, reduced steering wheel size, and a three-way adjustable, full-suspension seat. Optional enhancements such as LED work lights, four-stage quad masts, side-shifters and foot directional control also can be added to meet specific application requirements. ■ Mitsubishi Caterpillar Forklift America Inc.,2121 W. Sam Houston Parkway North, Houston, Texas 77043; 713/365-1000; mcfa.com.

High-performanceshrink labelsBemis Performance Packaging launched its Titan beverage shrink films and labels. These films and labels are designed to enhance beverage packaging quality, efficiency and brand appeal by using Bemis’ advanced polyethylene shrink technology. The films create vibrant, sustainable shrink multi-packs that replace corrugate, paperboard or plastic rings, while the colorful, form-fitting labels can help products stand out on the shelf, the company says. Multi-packs made with Bemis Titan shrink films reduce material weight by as much as 50 percent and decrease packaging costs by up to 30 percent compared with paperboard, it says. The Titan portfolio also includes line extensions, such as shrink-film multi-packs with optional handles in various configurations; tight-fitting, high-shrink roll-fed labels; Bemis WavePack corrugate-free multi-packs; and Bemis PerfPack tear-away multi-packs, which are designed to help brands further differentiate and promote their beverage products. ■ Bemis Co. Inc., 3550 Moser St., Oshkosh, Wis. 54901; 920/527-2300; bemisperformancepackaging.com.

Measuring high temperaturesPaul N. Gardner Co. released the Fluke 572-2 High Temperature Infrared Thermometer for use in high-temperature industrial environments for accurate high-temperature and high distance-to-spot measurements. Specifically, the thermometer measures temperatures between -22 and 1,652 degrees Fahrenheit with a 60:1 distance-to-spot ratio via dual-laser sighting, the company says. The Fluke 572-2 has an easy-to-use user interface with six different language modes and soft-key menus for easy operation, it says. Users can navigate and adjust emissivity, start data logging, or turn on and off alarms with just a few button pushes, it says. The thermometer also comes with a tripod mount, 12- or 24-hour clock, a USB 2.0 computer interface cable, FlukeView forms documenting software, and a two-year warranty.■ Paul N. Gardner Co. Inc., 316 N.E. First St., Pompano Beach, Fla. 33060; 954/946-9454; gardco.com.

Sustainable cansNovelis released its evercan aluminum beverage can body sheet for the beverage market. The can material has been certified for high recycled content by SCS Global Services, a company that handles third-party environmental, sustainability and food quality certification, auditing, testing and standards development. Novelis initially is offering the aluminum can body sheet with 90 percent recycled

NEWSThe Printing Industries of America, Pittsburgh, will host the 2013 Label Printing Industries of America (LPIA) Conference from Dec. 7 to 9 at the Arizona Biltmore Hotel in Phoenix. The conference is developed specifically for the label converting, packaging, top-sheet, and product decoration industries and will help attendees gain a competitive edge to increase market share, the company says. The event also is co-located with the 2013 Color Management Conference.

Jonesboro, Ark.-based Colson Caster Corp. announced its new “Made in the USA” marketing campaign. As part of the initiative, Colson will display its commitment to U.S. manufacturing through a special website landing page with direct access to specification information for Colson’s USA-made products. Literature and email marketing also will support the initiative to start conversations with current and prospective customers about the advantages of products made in the United States. Beer wholesaler Standard Sales Co. L.P., Odessa, Texas, selected Reston, Va.-based Softeon’s Route Accounting System (RAS), Warehouse Management System (WMS), Transportation Planning Module (TPM), and budgeting tools to help centralize its back-office operations.

Nuvera Fuel Cells, Billerica, Mass., in a new partnership with the U.S. Department of Energy’s Pacific Northwest National Laboratory, Richland, Wash., and Thermo King, a Minneapolis-based manufacturer of transport temperature control systems for a variety of mobile applications, is using advanced fuel cell technology to power transport refrigeration units on tractor-trailers. Bemis Performance Packaging, Oshkosh, Wis., launched the website bemisperformancepackaging.com to provide consumer goods companies with user-friendly resources to address packaging challenges and create brand advantages with the latest in packaging innovations, the company says. The site also features content about the company’s flexible packaging products and capabilities.

Color-Logic, West Chester, Ohio, named Scodix, Saddle Brook, N.J., its technology partner. The company also extended its relationship with Mimaki, Suwanee, Ga., by certifying Mimaki JV400LX Series wide-format latex printers for use with the process metallic color system.

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content. When combined with the evercan can end, which is made of a different alloy, the complete Novelis evercan will enable beverage companies to market their products in standard 12-ounce aluminum cans as “made from a minimum of 70 percent recycled content.”■ Novelis Inc., 3560 Lenox Road, Suite 2000, Atlanta, Ga. 30326; 404/760-4000; novelis.com.

Mass-f low spiralsRyson International Inc. diversified its portfolio of mass-flow vertical conveyors with the release of its 10-inch High Capacity Mass Flow Spiral conveyor. The new spiral conveyor saves space in a warehouse because of its small footprint and can transport bottles, cans, jars and other round containers up to 20 feet high, the company says. In addition, its 1-inch drive chain gives it a 3,600-pound weight capacity.■ Ryson International Inc., 300 Newsome Drive, Yorktown, Va. 23692; 757/898-1530; ryson.com.

Sugar cane capsTetra Pak Inc. launched the LightCap 30, a high-density polyethylene (HDPE) cap made from sugar cane. To form the cap, sugar cane is crushed and its juice is fermented and distilled to produce ethanol. Through a process of dehydration, ethanol is converted into ethylene, which is then polymerized to produce the polyethylene used to manufacture the cap. The bio-based cap can be used to upgrade the environmental profile of a package and reduce a product’s environ-mental footprint and waste, the company says.■ Tetra Pak USA, 101 Corporate Woods Parkway, Vernon Hills, Ill. 60061; 847/955-6000; tetrapak.com/us.

Compact vision productsCognex Corp. released two new products — the Advantage 100 vision system and the AE2 Advantage engine — designed for integration into original equipment manufacturer (OEM) devices and equipment. The Advantage 100 vision system is a compact (23 mm by 44 mm by 54 mm) enclosed vision system with customizable optics, lighting and Ethernet communications suitable for integration into large, automated clinical diagnostic systems, it says. The AE2 Advantage vision engine provides a smaller (14.5 mm

by 29.1 mm by 20.5 mm) form factor designed for tight integration inside the enclosure of OEM devices, it says. Both systems offer Cognex vision, alignment and code- reading technologies in a product that can be held on the tip of a finger, it adds.■ Cognex Corp., 1 Vision Drive, Natick, Mass. 01760; 855/426-4639; cognex.com.

Synthetic lubricantsUltrachem Inc. developed a new line of high-performance synthetic lubricants — the Chemlube Plus Series, which is designed for use in a wide variety of rotary screw and rotary vane compressors. As universal lubricants, the Chemlube Plus Series is fully compatible with most OEM rotary screw compressor oils and can be used to top off and replace existing fluids, the company says. The lubricants are made with a very thermally and oxidatively stable polyol ester blend, which was designed to take advantage of the lubricating properties inherent in polyol esters but also be economical by combining them with less expensive synthetics, it says. In addition, these fully synthetic lubricants are formulated to form less varnish under high-temperature applications and to be more resistant to acidic intake air than the polyalkylene glycol (PAG) coolants, it notes. Under normal operating conditions, users of the Chemlube Plus Series can expect to obtain up to 11,000 hours of lubricant service life in rotary screw compressors, it adds. The line is available in International Standards Organization grades 32, 46 and 68.■ Ultrachem Inc., 900 Centerpoint Blvd., New Castle,Del. 19720; 302/325-9880; ultracheminc.com.

Measuring tasteC.W. Brabender Instruments Inc., along with Kanagawa, Japan-based Intelligent Sensor Technology Inc. (Insent), offers the Taste Sensing System TS-5000Z for collecting taste data. The system employs the same mechanism as the human tongue through the use of artificial lipid membrane sensors, which imitate the taste reception of food goods and pharmaceuticals and interprets them as numerical data, the company says. The quantification of taste data is handled by original algorithms and can be displayed in various ways through a rich array of graphing tools, it says. In addition to the evaluation of initial taste, the instrument also measures the richness, sharpness, bitterness and astringency characteristics of aftertastes, it adds.■ C.W. Brabender Instruments Inc., 50 E. Wesley St., South Hackensack, N.J. 07606; 201/343-8425; cwbrabender.com.

NEWSTricorBraun, St. Louis, licensed Naperville, Ill.-based The Institute of Packaging Professionals (IoPP)’s online Fundamentals of Packaging Technology course. Through the licensing, IoPP is providing TricorBraun with a secure, co-branded online portal that contains the company’s customized course catalog. Preapproved employees at TricorBraun can complete packaging training, which includes 42 pre-recorded, self-directed learning sessions, from their computers.

NTEA, the Farmington Hills, Mich.-based association for the work truck industry, announced that six companies qualified for the Member Verification Program (MVP): Knapheide Truck Equipment-Midsouth, Birmingham, Ala.; Monroe Truck Equipment Inc., Depere, Wis.; Monroe Truck Equipment Inc., Louisville, Ky.; Tenco Inc., St-Valerien-De-Milton, Quebec; Truck Equipment Inc., Des Moines, Iowa; and Watson & Chalin Manufacturing, McKinney, Texas. In addition, Imlay City, Mich.-based Champion Bus Inc.; Salina, Kansas-based ElDorado National; Eden Prairie, Minn.-based Goodall Manufacturing; Elkhart, Ind.-based McCoy Miller and Marque Inc.; and Denver-based OJ Watson Co. Inc. renewed their MVP statuses, it notes.

Former Senior Vice President of Plano, Texas-based Dr Pepper Snapple Group Kendall Yorn joined Baswood Corp., a Santa Barbara, Calif.-based provider of wastewater treatment systems, as senior vice president of business development.

Cleveland-based Brennan Industries welcomed Kelly Forrest as the company’s new marketing coordinator. She is responsible for developing marketing collateral, managing website content, creating newsletters, operating Brennan’s social media presence, and coordinating trade show activity.

Motion Control Association (MCA), Ann Arbor, Mich., announced speakers for the MCA Business Conference, which will take place Jan. 22-24 at the Hilton Orlando Bonnet Creek in Orlando, Fla. Dennis Snow, president of Snow & Associates, Orlando, will present, “Creating a World-Class Service Organization”; Robert Atkinson, president of Information Technology & Innovation Foundation, Washington, D.C., will give his speech, “Innovation Economics: The Global Race for Advantage”; and Principal Alan Beaulieu of Boscawen, N.H.-based Institute for Trend Research will discuss his 2014 global economic forecast.

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| Beverage Industry | NOVEMBER 2013 | bevindustry.com

To place your classifi ed ad in Beverage Industry call

Catherine Wynn at847-405-4010

Fax: 248-502-9109E-mail: [email protected]

68

EQUIPMENT FOR SALECAREER OPPORTUNITY

THE SKILLS YOU NEED THE PEOPLE YOU WANT

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tt PlPl ttPP

All Safe, Inc. Contact Mike @ 612-554-2329 or [email protected]

We Buy & Sell 3 & 5 gallon Syrup Tanks & all sizes

of CO2 Cylinders

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SYRUP TANKS✔ We Buy & Sell✔ 5 Gallon Stainless Steel Soda Tanks✔ From Pallets to Trucks✔ Competitive Pricing

For more information contact:Keggle Brewing Inc. / Terry-412-443-8295

[email protected]

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NEW/USED WALK-IN-COOLER-FREEZER BOXESREFRIGERATION SYSTEMS – EQUIPMENT

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E-mail: [email protected]

MANUFACTURERS REPS. OPENINGS

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Artesian/Spring WaterCOMPANY FOR SALE

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To place your classifi ed ad in Beverage Industry call Catherine Wynn at847-405-4010Fax: 248-502-9109E-mail: [email protected]

69 bevindustry.com | NOVEMBER 2013 | Beverage Industry |

Call for your catalog today!

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SHORE GROUP14500 Martin Drive Suite 4000 • Eden Prairie, MN 55344

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TAKING A PAGEFROM HISTORY

Every brand has a story to tell. Irish whiskey brand Tullamore D.E.W.’s story begins in the

town of Tullamore, Ireland. Before the whiskey label’s 1829 founding, the town of Tullamore was destroyed by a fire in 1785. From the ashes of this devastation, the town rebuilt itself and then added a phoenix — a mythical bird that erupts in flames at its death and then is reborn from its own ashes — to its coat of arms to commemorate its resilience and optimism.

In line with this bit of Irish history and folklore, the brand named its newest limited-edition whiskey blend

Phoenix. The 55 percent alcohol by volume (ABV) whiskey is a blend of grain, malt and pot-still whiskeys and is finished for two years in a sherry cask.

The new whiskey’s name also ties into an important event in Tullamore D.E.W.’s

modern-day history. William Grant & Sons, the parent company of Tullamore D.E.W., currently is building a new distillery in Tullamore that is scheduled to open in autumn 2014. This reincarnation will bring whiskey production back to the town 60 years after the original distillery closed in 1954.

But this isn’t the only significant timing element in this story. The brand also chose to coordinate its national launch with the 142nd anniversary of the Great Chicago Fire in October. As part of this launch, the brand invited local media and beverage industry trade representatives on a trolley tour of Great Chicago Fire sites in downtown Chicago, including the fire’s believed origination site, which now is the Chicago Fire Academy. Along the way, Brand Ambassador Tim Herlihy drew parallels between the Great Chicago Fire story, Tullamore’s story, and elements of the brand’s latest whiskey. Drawing on history, Phoenix commemorates these historic events and marks the beginning of a new era of Irish whiskey.

BY JENNIFER HADERSPECKAssociate Editor

70 | Beverage Industry | NOVEMBER 2013 | bevindustry.com

Tailgate tourTo spread the word about the relaunch of Chicken Cock Whiskey, the brand set out on a three-month Ultimate Tailgate Tour ending Nov. 30. Chicken Cock restored a vintage 1970s Airstream trailer and turned it into a rolling speakeasy complete with a backroom bar and password entry. In total, the trailer will visit 19 popular tailgate stops throughout the country, including college and professional football games and concerts, as well as bars and beverage retailers. The brand also hired musicians to serve as brand ambassadors for its flavored whiskeys and is documenting its tour on social media.

Fueled bychocolate milkAs part of this year’s “Refuel: got chocolate milk?” campaign, former NFL wide receiver Hines Ward, along with three everyday athletes, competed in this year’s Ironman World Championship on Oct. 12 in Hawaii. Chocolate milk

played an integral role in his recovery

between workouts and in helping him prepare for the

competition, according to The Milk Processor Education

Program (MilkPEP). In addition, chocolate milk served

as the official refuel beverage of the Ironman competition.

MilkPEP’s Refuel campaign was designed to showcase the

power of chocolate milk as a recovery beverage.

Savea corkThis holiday season, Gallo Family Vineyards is making it easy for Americans to help fi ght senior hunger while continuing their holiday traditions of enjoying family, friends and wine. The wine label is partnering with the Meals On Wheels Association of America (MOWAA) for their Every Cork Counts campaign with the goal of raising up to $100,000 to benefit the organization’s efforts to deliver meals to seniors in need. Consumers are encouraged to mail the used corks from bottles of Gallo Family Vineyard wine back to the company. In turn, Gallo Family Vineyards will make a $5 donation to MOWAA for every cork received by the end of the year.

Nothing like the great outdoorsThe Double Cola Co.’s Double Cola brand launched “The Great Outdoors

Sweepstakes,” a promotion encouraging consumers in Chattanooga,

Tenn., and the surrounding areas to celebrate outdoor activities. The sweepstakes was hosted in partnership with L2 Boards, an outdoor retailer also based in Chattanooga. Fans could visit participating Bi Lo

stores as well as L2 Boards to enter. “The Great Outdoor Sweepstakes”

grand prize included a paddle board valued at $899, an L2 Boards stand-

up paddleboard excursion for four, as well as Double Cola products and

merchandise. One first prize winner received a $100 Bi Lo gift card and

$75 worth of Double Cola products and branded merchandise.

Honoring the ancestorsNestlé’s Abuelita and Nescafé Café de Olla brands encour-aged consumers to celebrate Dia de los Muertos “a su manera,” meaning “in their own way,” through their various Day of the Dead promotions. At the 14th annual Dia de los Muertos event at the Hollywood Forever Cemetery on Nov. 2 in Los Angeles, the brands attempted to establish the Guinness World Record for the largest Day of the Dead altar in the United States. The altar design portrayed “catrinas,” or skeleton women, enjoying cups of Abuelita and Nescafé Café de Olla in the afterlife. On the same day, the brands encouraged consumers to participate in their costume contest and sample the hot chocolate and coffee served with “pan de muertos” or “bread of the dead.” In addition, Abuelita posted celebratory tips on its Facebook page to help consumers enhance their celebrations.

raditions of enjoying family friends

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Reaching an average qualifi ed circulation of 35,421 copies.Source: June 2013 BPA Brand Report

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BEVERAGE INDUSTRY (ISSN: Print 0148-6187 & 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) 362-3700, Fax: (248) 362-0317.

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Admix, Inc ..............................................................28

www.admix.com

Blue California ........................................................16

www.bluecal-ingredients.com

Brooklyn Bottling Company ..................................19

www.nsbottle.com

Chr. Hansen, Inc ....................................................49

www.chr-hansen.com

Clearseas Research................................................. 11

www.clearseasresearch.com

CMC-Kuhnke ............................................................ 4

www.seamscanxts.com

Cyvex Nutrition, Inc .............................................. 13

www.cyvex.com

D.D. Williamson & Co., Inc ....................................30

www.ddwcolor.com

Dairy Farmers of America ....................................20

www.dfamilk.com

DAK A mericas ........................................................31

www.dakamericas.com

Food Ingredient Solutions, LLC ...........................50

www.foodcolor.com

Freightliner T rucks ................................................BC

www.freightlinertrucks.com

GNT USA ................................................................48

www.gnt-group.com

Hammer Packaging ...............................................40

www.hammerpackaging.com

Heineken U SA .......................................................... 3

www.heinekenusa.com

Hilmar I ngredients ................................................55

www.hilmaringredients.com

Ingredion, Inc ............................................ 37, 46-47

sp.ingredion.ushttp://webinars.bevindustry.com

iTi Tropicals .................................................... 29, 32

www.ititropicals.com

KHS AG ..................................................................39

www.khs.com

Kluber Lubrication N.A.........................................65

www.klubersolutions.com/beverage2

MODEX 2014 .........................................................63

www.modexshow.com

NEPA Carton & Carrier Co ...................................43

www.nepacartons.com

NVE Pharmaceuticals ...........................................10

www.nveusa.com

OrangeTap ..............................................................25

www.bnporangetap.com

Overnight Labels, Inc ...........................................45

www.overnightlabels.com

Pak Tech .................................................................44

www.paktech-opi.com

PDC Europe .............................................................41

www.pdceuropeusa.com

Polymer Packaging, Inc ........................................30

www.polymerpkg.com

Rocket Products .....................................................14

www.rocketproducts.com

Robertet Flavors, Inc ......................................22-24

www.robertet.com

Ryson International ............................................... 17

www.ryson.com

San Joaquin Valley Concentrates ........................51

www.sjvconc.com

Satellite Logistics Group ......................................59

www.slg.com

Sensient Food Colors N.A ...................................... 2

www.sensientfoodcolors.com

Sensory Effects ......................................................15

www.sensoryeffects.com

U.S. Environmental

Protection Agency - Smart Way ......................... 33

www.epa.gov/smartway/forshippers/

Verst Group Logistics ............................................21

www.verstgroup.com/packaging

Virginia Dare, Inc ..................................................... 7

www.virginiadare.com

Wat-aah ..................................................................35

www.drinkwataah.com

Beverage Industry | NOVEMBER 2013 | bevindustry.com | 71

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Powered by the 12-liter, 400-horsepower Cummins Westport ISX12 G engine, Freightliner Trucks led the way by

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Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks dealer nearest you, call 1-800-FTL-HELP. 11/12. FTL/MC-A-1225. www.freightlinertrucks.com. Specifications are subject to change without notice. Freightliner Trucks is registered to ISO 9001:2008 and ISO 14001:2004. Copyright © 2013. Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.

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