Thirst Quenchers

The non-alcoholic beverage category is booming. From sports drinks, to innovative soda flavors, to flavored milks and green teas, there is something for everyone and then some. The bevy of new product launches has created a new challenge for marketers: trying not to get lost at retail and establishing brand credibility.To meet the growing demand for more "healthy" beverages, manufacturers in recent years have flooded the market, creating a challenge -- or opportunity, depending on the point-of-view -- for effectively merchandising these drinks to a more savvy buying public.Adding to the in-store marketing dilemma have been several market factors such as a blurring of the lines between categories, allowing some beverages to be merchandised in two or more sections within the same store. While this sounds promising for sales, it can also make it even more difficult to communicate a brand's purpose.Perhaps the most important issue that many beverage marketers see as the key to success in a crowded market is establishing the credibility of their products. In this new and changing beverage marketplace, point-of-purchase materials have become the main influencer in purchase decisions."It's so hard to get anybody's attention with all the information on the Internet and 300 channels on the TV," says Tom Pirko, president of Santa Barbara, Calif.-based BevMark, a beverage consulting company. "The consumer is confused. There has been so much put into the market of so many different types of beverages. New, new, new has become the cry. It's left marketers thinking about what kind of new rules might have to be embraced to get things to stick."One of the methods that Pirko suggests is a move away from casting wide nets with marketing campaigns toward building more focused store-level efforts. "There's a lot more to be done and achieved at the point-of-purchase," he says.That's a fact not lost on the marketers. "With all the messages people get through the media, they're constantly being marketed to," says Jim Crooks, director of marketing for Cambridge, Mass.-based Nantucket Nectars, which recently released Nectar Fizz, the brand's first line of carbonated drinks. "We find that at least half of our drinkers still say they make their decision on what they're going to purchase at the store level. Therefore, it really is incumbent on us to try to appeal to that customer at the store level with P-O-P."The rapid rate of new product introductions only further complicates matters. In a category as expansive and hard to navigate as beverages, P-O-P is the first line of offense for marketers rolling out new drinks. In the soda sector alone recent launches include Sprite Remix, Diet Vanilla Coke, Mountain Dew LiveWire, dnL and more. These 2003 additions only add to the rollouts entered in the last two years such as Pepsi Blue, Red Fusion, Code Red, Pepsi Twist, Diet Coke with Lemon and others."P-O-P is always critical," says Bob Todaro, senior director of cold drink and merchandising for Snapple Beverage Group, White Plains, N.Y., which has introduced a new meal-replacement beverage option called Snapple a Day. "But especially now if you have a different type of proposition and a different package, it's critical to relay those attributes to the consumer quickly and the P-O-P does that. Just simply putting product on a shelf and waiting for discovery has a certain degree of success but not the same as if it's reinforced by making it front and center for the consumer who might be heading down that aisle."Is this drink really different?No doubt about it, America is a nation of label-readers, a trend that has been fueled by more focused media attention on issues like obesity and lifestyle changes that can help stem the occurrence of disease or even limit the spread of cancers. As a result, consumers are making their beverage purchases with a more discerning eye on ingredients.According to Nantucket Nectars' Crooks, "Consumers want to feel as if they're getting more than just refreshment out of their beverage, they want things like functional ingredients."But how is one to tell if a product is hype or health? Many marketers are spelling it out right on their P-O-P.The Healthy Beverage Co. is launching the first line of green tea sodas, marketed under the name Steap Green Tea Soda and available in six flavors: root beer, orange, key lime, lemon dew, raspberry and cola. But another point of distinction for the Newtown, Penn.-based company is that it is the first soda brand to carry the new USDA organic certification, under new labeling laws passed last fall. "People are now thinking, what is in my sodas, what is in my iced teas, what is in my beverages that's causing all this obesity and these negative side-effects?" says company co-founder Eric Schnell. "This labeling gives consumers a greater comfort level so they know they're buying an organic product that has been USDA-inspected, which does carry a lot of weight that people believe is credible."For a new company where effective use of funds is critical, Schnell notes that he has poured most of his marketing dollars into P-O-P that really drives home the point of his beverages' credibility. The P-O-P includes a range of materials such as shelf danglers, cooler static clings, postcards that can be left at cash registers for consumers to take, sell sheets that can be used as mini-posters in store windows, and table tents since the company is making a foray into on-premise markets, such as Asian restaurants where teas, especially the green variety, are popular."P-O-P's role is tremendously important, especially since we're a brand new company hitting the market nationally," explains Schnell. "You need to be able to draw attention to your products in-store, especially with pieces like the shelf danglers. They pop off about 3 inches from the shelf. They say 'USDA certified,' 'organic,' 'green tea' -- all the key buzzwords that we want people to quickly understand about our product. That's very important to us."Without this focused P-O-P, Schnell feels his products would get lost in the crowd. "If we're going to put out beverages that claim to be healthy, we better make sure that all our ingredients are healthy and actually good for your body," he says. "For us, getting USDA certification on our organic ingredients was pivotal to the launch of our products. Credibility is everything to us, otherwise we're just another company that calls itself a healthy beverage company."The Monarch Beverage Co., Atlanta, uses P-O-P for education and product differentiation, according to Kevin McClanahan, chief operating officer. "Consumers are becoming more aware of ingredients and P-O-P materials really help drive that point home," he says.The company's Rush! Energy carbonated drink is also available in a light version, which has no calories, no carbohydrates and no sugar. "That's a big point to make with consumers," McClanahan says. "You can't rely on them picking up the can to read the ingredients. You have to give them the information as they reach into the cooler."Monarch P-O-P includes static clings, coupon dispensers, tear-off pads and shelf tags for smaller footprint areas like convenience stores, as well as case stackers and endcap displays for larger retail environments. McClanahan says the P-O-P reinforces the brand attributes of "no sugar, no calories, no carbs, just pure Rush."Monarch also markets the All Sport Body Quencher sports beverage. Its new twist is a stay-cold insulated package called the Chillin' bottle. "It's a great benefit for the consumer, but we have to communicate that at the point-of-purchase," McClanahan says. To do that, the company is using floor clings, shelf danglers, static clings, 3-D static clings and barrel coolers.Packaging Packs a PunchSuch innovative packaging for many beverages seems as important as the supporting P-O-P. While the category has grown tremendously, stores are staying the same size, opening the door to more fierce competition for shelf space.In addition, since many retailers don't want a lot of marketer-supplied P-O-P cluttering their aisles, many suppliers are left to rely on their packaging to tell a story or promote a brand image.The new Snapple a Day line is intended for use as a meal replacement, but the packaging equally conveys great taste and fruit flavors, according to Kathleen Piper director of marketing at Snapple. "Many people are concerned about drinking meal replacements since they have that dieting stigma," she says. "They can really scream 'dieting' and then you have to answer all these questions about why you're on a diet or how many pounds have you lost?"Piper notes that the packaging for Snapple a Day features bright, bold graphics to avoid any such stigma and while the words "meal replacement" are prominently displayed, the intent is that "the product can be used for weight control but it's also a healthy beverage and the packaging itself isn't saying you're on a diet if you're drinking it." Todaro adds, "We really let the package be the hero of the graphic treatment."Piper notes that it was also important to launch the new line in a variety of flavors, since "People get tired of the standard meal replacement choices of chocolate, strawberry and vanilla." Snapple a Day is available in Strawberry Banana, Peach and Tropical Blend."Our packaging is very different in that it's plastic, lightweight and re-sealable," Piper says. "A lot of the meal replacement beverages are in metal cans, which is another big point of difference for Snapple a Day. It's all about being on the go."The P-O-P in support of the line includes a corrugated, three-tier shipper that was used for the initial rollout. Also produced was a permanent plastic rack designed for the health and beauty aid sections of supermarkets or drugstores. For convenience stores, a suction cup merchandiser was produced.According to Michael Scheu, brand manager at Odwalla Inc., Half Moon Bay, Calif., "P-O-P plays a big role as does our packaging. We rely on our very unique packaging and art to convey a lot to the consumer nonverbally. But we also have to concisely convey product benefits and that's where the P-O-P comes in. How do we marry that art and the things that are unique to this brand with key messaging? Then, if we can get them to pick up the bottle and read the label, that's a big win for us because they're going to learn even more."Odwalla's newest beverage is Blueberry B Monster, which Scheu describes as a beverage that fits in with the company's goal to be merchandised in multiple areas of each store. "We're in the produce aisle, we're in dedicated natural foods aisles, and we're getting increased shelving where stores are taking advantage of opportunities to upsell their customers," he says. "This includes areas where you can get a sandwich or meal-to-go at the deli counter. So we're looking at three or four places in a store where our product is relevant to the consumer."Familiar Brands, New SpinLeading Brands of America, Stamford, Conn., is responding to the consumer demand for a broader range of flavors, but the company has also added a twist of nostalgia to its beverage line. One of its newest products is Pez, a 100% juice drink in a resealable pouch with a permanently attached straw. It is topped off with an original Pez candy dispenser-style head.Leading Brands licensed the Pez name in order to produce the drink, which is available in grape, sour cherry, sour apple and strawberry."It's a cross between a novelty and juice item," says Bob Miller, president. "We wanted to please the moms by making it good for you and please the kids by making it fun."The Pez drink is primarily being sold in convenience stores as a single-serve item, and Leading Brands' P-O-P of choice is a 12-unit suction cup rack for cooler doors."It doesn't fit well on a glide rack," Miller says. "Also, retailers don't have to actually pull anything else out of their stores to put it in. It's an added space type of deal." Miller notes that the company has also produced a case stacker, but that's been minimally used since the suction racks are "so highly visible and you see the whole product right in front of you."In the sports drink category, Leading Brands has also recently introduced TREK, an "optimum performance beverage or cross between an energy drink and an isotonic" as Miller describes it. "It's a three-stage hydration system for before, during and after activity," he says.TREK is also primarily in c-stores and some grocery outlets, supported by display racks, glide racks, ice barrels, clings and door decals. P-O-P explains the product's benefits during the different stages of activity and their effect on performance.To meet the "overwhelming trend toward health and wellness," V8 Beverages has launched V8 Splash Smoothies, the brand's first smoothie product, according to Jeff Jacobs, director of new business development for V8 Beverages in Camden, N.J.According to Jacobs, conveying a significant amount of information through the product's label and packaging is important, but just as important is the notion of 360 degree branding. "Using the package is unbelievably important," he says. "The bottle can be your greatest billboard. But then, how do you surround the consumer, whether through displays within the same aisle or in another part of the store?"For the launch of Splash Smoothies, available in Peach Mango, Strawberry Banana and Citrus Blend, V8 produced pallet shippers with header cards, as well as static clings, decals and brochures. Also key were tie-ins with promotional partners like the USA Swimming Partnership, featuring standees of gold medal swimmers to connote the healthy lifestyle concept.For many brands, the issue is still the matter of how to get display materials effectively implemented at retail. At Nantucket Nectars, Crooks outlines the company's " Four-score" P-O-P program, which includes signage outside the store, such as a pole sign; signage on the way to the cooler, such as push-pull signs, mounted wall signs or hanging mobiles; cooler door decals; and finally, on-shelf glide racks.As far as getting all four elements executed, "That would be in an ideal world," Crooks says. "If you walked into your local c-store, we're usually happy if you can find one or two points-of-sale, but we certainly stress and push for the four-score placement because you have to be constantly interacting with consumers. They may not make up their minds until they reach in the cooler door."The brand's glide trays have always been a key element of Nantucket Nectars' in-store marketing, and they were also used to promote the new line of Nectar Fizz beverages. "We don't go overboard for a new product with P-O-P, and a lot of it has to do with the fact that we want people to think brand first," Crooks says. "That said, we still developed specific pieces for Nectar Fizz. We did cooler statics that were see-through and really conveyed the bubbly carbonation of the product because that was new and different. You don't think of Nantucket Nectars as being a brand that would have a carbonated beverage."The company also retrofitted the purple glide trays that were already on the market to brand them as Nectar Fizz.Many beverage buyers are familiar with the Hawaiian Punch character Punchy. For the recent launch of this Dr Pepper/Seven Up Inc. brand's new flavors -- Bodacious Berry, 'Mazin Melon Mix and Green Berry Rush -- Punchy got a makeover to make him more "teen relevant," according to Matt Smith, brand manager for Hawaiian Punch at the Plano, Texas-based company. "He has a lot of affinity and people associate him with the brand," Smith says. "We've tried to build the P-O-P around him." He adds that the goal of the P-O-P is to convey the brand's emphasis on taste and personality, and is designed to "show the rush of product all around him. The color is a very important part of Hawaiian Punch. We're all about bold color, bold taste and bold personality."P-O-P materials for the new Hawaiian Punch flavors include pole signs, shelf talkers, banners, floor clings, pole huggers, static clings, static clings with tear-pad coupons, double-sided posters and a 60-case stacker.Also using P-O-P to convey a dynamic, energetic feel for its products is Pepsi-Cola North America, Purchase, N.Y., with its newest flavor extension of the Mountain Dew brand: LiveWire. This drink hit stores on Memorial Day, and is scheduled to be available through the summer.One key to the P-O-P will be to inform consumers that LiveWire is only available for a limited time, according to spokesman Bart Casabona. The materials in support of the product include static clings and endcaps.Kraft Beverages, Tarrytown, N.Y., has two new products. Capri Sun Sport is a sports drink with electrolytes packaged in a foil pouch for active kids. It is available in Thunder Punch and Berry Ice flavors. Capri Sun Island Refreshers, designed for teens and young adults, are beverages packaged in 16.5-ounce aluminum bottle-cans that chill faster than glass, fit easily in a car cup holder and have resealable twist caps. It is avail-able in four flavors: Tropical Fruit, Strawberry Kiwi, Orange Dragonfruit and Lemon Tea. According to Andrea Waldman, senior director of consumer promotions, the company created floor clings for Capri Sun Sport to be used at retail in both the aseptic juice drink aisle and the isotonic section. "Because Capri Sun Sport is an on-trend product from a brand consumers trust, this was a great way for moms who buy Capri Sun to learn about a new product with an additional benefit," Waldman notes. "For Capri Sun Island Refreshers, we conducted sampling on college campuses very close to c-stores."

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