Celsius Holdings sees convenience channel as prime growth opportunity for energy drink brand

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March 2, 2024

Celsius Holdings, a US-based energy drink brand, stated that it sees the most opportunity for growth in the convenience channel, highlighting “cold availability” as crucial for success.

PepsiCo-backed Celsius is planning to invest in branded, chilled cabinets in US retailers in 2024, building upon its acquisition of 10,000 units worth $10.5 million in 2023.

The comments came as the company posted record earnings for its full year 2023, with revenue up 102% to $1.32 billion and up 95% in the fourth quarter to $347 million, driven by sales in North America.

Speaking to investors following the company’s full-year results on 29 February, John Fieldly, chairman and CEO, said, “The biggest opportunity for us is in convenience.

“We’ve built this brand, going through the variety of channels, and the biggest opportunity is in convenience where you have got 56/57% of all sales.

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“So that’s where we anticipate the biggest resets to take place, in the coming resets.

“Right now, in the convenience channel, we are just at a 10(%) share. So, we’re really excited about the opportunities you have there. Versus if you look at the food category, we’re roughly around a 16(%) share within the energy category.”

Fieldly emphasized that the accessibility of chilled Celsius energy drinks was “crucial” to the brand’s expansion, highlighting that eye-level placements in stores were “essential.”

Celsius’s cooler assets experienced a significant surge, more than doubling from $9.9 million in 2022 to $21.9 million in 2023.

“It’s a big initiative we’ve had over the years trying to get more cold placement,” Fieldly said. “Cold availability is key to success in order to compete in the energy category, especially with the impulse purchases.

“That is the biggest opportunity for us. When we look at the convenience channel, that impulse purchase is key to the success of where we want to go and who we want to be in the category.

“We are investing in more coolers, we’re working on placing more coolers. We want to be right at checkout. Eye-level is critical.

“We’re again talking to a variety of retailers as well to gain additional checkout coolers. I think that’s a big opportunity.

“Most recently down in south Florida… and we’re looking to gain additional checkout coolers on the next reset.”

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Additionally, the company highlighted the promising prospects of e-commerce. In 2023, the brand emerged as the top-selling energy drink on Amazon, capturing a 19.7% share of the category, surpassing Monster Beverage (19.6%) and Red Bull (12.3%).

“We continue to drive further revenues through that [Amazon] channel. It is an omni-channel world and that’s something we really focus on here at Celsius,” Fieldly said.

The company also acknowledged plans for international expansion in 2024, but refrained from disclosing specific countries beyond its recent deals.

Last month, Celsius revealed its plans to penetrate the UK and Ireland markets through a distribution deal with Suntory Beverage & Food. Fieldly stated that the company anticipates sales to “begin gradually” in the region during the second quarter.

Furthermore, it made its debut in Canada through PepsiCo in mid-January, expressing optimism that the country “should be a great market.” This initiative represented the group’s initial “significant” international launch since PepsiCo acquired an 8.5% stake in Celsius in 2022.

Apeal World expands RTD lineup with Organic Lemon and Mint Sparkling ACV

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March 2, 2024

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RTD sparkling apple cider vinegar brand Apeal World has unveiled its third flavor variant: Organic Lemon and Mint.

The freshly launched RTD apple cider vinegar, infused with lemon and mint flavors, combines sparkling water, organic apple cider vinegar, organic extracts, and responsibly sourced spices. Each can offers a dose of potassium, calcium, and magnesium.

Linked to digestive wellness and immune support, apple cider vinegar is produced through fermenting apple sugars, resulting in acetic acid, the vinegar’s active component known for its potential to regulate blood sugar levels. Apeal World highlights that acetic acid also boasts antimicrobial qualities.

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Apeal World’s newest release marks its third flavor variation, succeeding its ginger-infused apple cider vinegar can and its ready-to-drink blend featuring clove, cinnamon, and vanilla.

Salka Backman, founder at Apeal World ACV, commented, “This delicious new flavour of apple cider vinegar combines lemon and mint and is yet another convenient, affordable and effective way to harness the benefits of ACV while on the go – anytime, anywhere”.

The new Apeal World Organic Apple Cider Vinegar with Lemon & Mint will be available from 20th March for an RRP of £1.99.

HCCB strengthens presence in Madhya Pradesh with INR 350 Crore investment

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March 2, 2024

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In a strategic maneuver emphasizing its dedication to Madhya Pradesh’s economic development, Hindustan Coca-Cola Beverages (HCCB), a leading FMCG company in India, has announced a INR 350 crore investment in the state. This announcement was made during a meeting between Madhya Pradesh’s Chief Minister, Dr. Mohan Yadav, and a senior delegation from HCCB, further solidifying the company’s total investment in the state to over INR 660 crore.

The capital infusion will drive the establishment of two state-of-the-art manufacturing lines at HCCB’s Rajgarh facility, specifically geared towards producing Affordable Small Sparkling Packs (ASSP) and Juice Tetra Packs. In addition to expanding manufacturing capacities, this initiative is set to significantly bolster the state’s economy. With a strong network of 149 distributors and 127,080 retailers, HCCB holds a crucial position in Madhya Pradesh’s retail landscape, distributing around 10 million cases across 29 districts.

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In reciprocation, the Madhya Pradesh Government has committed comprehensive support to expedite HCCB’s procurement of necessary permissions, approvals, and clearances, aligning with the state’s policies and regulations.

Himanshu Priyadarshi, Chief Public Affairs, Communications, and Sustainability Officer at HCCB, stated, “This investment is a significant step in our journey with Madhya Pradesh – a state that is poised for growth and development. We see this as an opportunity to deepen our commitment and align our growth with the state’s vision. This is more than an expansion of our business operations; it is about reinforcing our roots in a state that is key to our market strategy and a hub for innovation. We envisage this project as a catalyst not only for regional economic growth but also as a conduit for nurturing local talent, thereby contributing to the socio-economic progress of Madhya Pradesh.”

Having invested over INR 311 crore in Madhya Pradesh since 2000, including recent expansions in 2022 and 2023, HCCB has consistently demonstrated its commitment to enhancing production capabilities and supporting the local economy. This latest financial commitment not only cements its industrial presence in the state but also aligns with HCCB’s dedication to delivering innovative and high-quality products to consumers in Madhya Pradesh.

HCCB’s involvement in Madhya Pradesh extends beyond financial investments, encompassing Corporate Social Responsibility (CSR) endeavors. These endeavors prioritize water conservation, skill enhancement, and sustainable farming. Notably, they have benefited 1200 young individuals through sales and marketing training, empowered 1500 women with digital and financial literacy, and assisted over 100 farmers in embracing sustainable agricultural methods. Moreover, HCCB has facilitated the installation of water ATMs and Smartboards, enriching community resources.

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Himmaleh Spirits revolutionizes Indian craft retail with the launch of Bandarful

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March 2, 2024

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Himmaleh Spirits, known for its innovative spirits, unveils Bandarful, an artisanal cold-brew coffee liqueur that transcends the ordinary in the Indian alcoholic beverage landscape. Building on the success of its pioneering product, Kumaon and I, India’s first Provincial Dry Gin, the distillery is trailblazing in breaking norms within the Indian alcoholic beverage industry.

Brewed for over 22 hours and meticulously blended in-house, Bandarful takes enthusiasts on a captivating journey across Kumaon’s grain fields, Chikmagalur’s coffee estates, and lush fruit trees. Crafted with hyperlocal rice, Himalayan spring water, and medium-dark single estate Arabica coffee beans from the foothills of the Western Ghats, each bottle becomes a homage to India’s diverse terroir.

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The story begins with the leader of the pack in Kumaon, where the spirited local Langur swings through the treetops, accompanied by its cousins, embarking on journeys to distant lands to carefully select the most robust coffee cherries. This charming primate, an inseparable part of Kumaoni culture, proudly takes credit for the inception of Bandarful, thereby establishing it as India’s premier branch-to-bottle spirit.

Ansh Khanna, Co-Founder of Himmaleh Spirits noted, “Bandarful captures the untamed essence of the country. In a world where coffee culture is becoming a serious affair, Bandarful stands out as an exquisite blend of high-quality coffee and spirit, appealing to both coffee aficionados and alco-bev connoisseurs. We’re breaking free from the ordinary, inviting you to swing into a world where life’s too short for boring drinks.”

Samarth Prasad, Co-Founder Himmaleh Spirits said, “Bandarful is our ode to endless joy and celebrations! Crafted with the choicest coffee beans, a dash of Himalayan flair, and a recipe tucked away amidst treetops, this artisanal coffee liqueur reflects Himmaleh’s commitment to introducing high-quality products using only the finest local ingredients sourced sustainably.”

Presented in a unique flint-clear glass bottle featuring a bar-top neck finish, Bandarful stands out boldly on any shelf, much like encountering a monkey amidst the dense jungle foliage. Whether savored neat over ice, mixed into cocktails, paired with desserts, or enjoyed as a post-dinner digestif, Bandarful guarantees a caffeine-infused adventure brimming with vibrant and evocative flavors.

Within the realm of Indian craft distillation, Himmaleh Spirits establishes a fresh benchmark with Bandarful, seamlessly merging tradition with innovation to deliver an unparalleled beverage journey tailored for discerning consumers.

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Heiko Schipper named president of Unilever’s Nutrition Business Group

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March 2, 2024

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Unilever has named Heiko Schipper as the President of its Nutrition Business Group.

Heiko, who presently serves as President of Bayer Consumer Health, brings extensive expertise and a proven record of success in the worldwide foods and nutrition sector. Commencing his career at Nestlé, he accumulated over two decades of experience in sales and marketing roles across Asia, eventually assuming the role of chief executive officer of Nestlé’s global Nutrition business division in 2014.

Having joined Bayer in 2018, he has been instrumental in spearheading notable enhancements in performance, resulting in Bayer’s Consumer Health division achieving industry-leading growth.

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Unilever chief executive officer Hein Schumacher said, “Heiko is a global business leader with deep expertise and experience of the foods and nutrition industry and a long track record of delivering sustained high performance. He is a very impactful, values-driven leader. I look forward to working with him as we continue our focus on accelerating the growth of Unilever’s Nutrition business, including our leading Knorr and Hellmann’s global Power Brands.”

Heiko will join Unilever and its Leadership Executive on 1 May 2024.

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JAB Holding Company to divest 100 Million KDP shares in potential $2.5 Billion deal

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March 2, 2024

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Keurig Dr Pepper (KDP) has stated that a subsidiary of JAB Holding Company plans to sell an aggregate of 86,956,522 KDP shares through a secondary offering.

JAB also granted an option to the underwriter, Morgan Stanley, to purchase up to an additional 13,043,478 shares within the next 30 days.

According to Bloomberg, JAB is selling the block of shares for $29.10 to $29.25 each, potentially generating up to $2.5 billion for the company. This pricing reflects a discount of 2.2% to 2.7% compared to KDP’s closing price on February 29, 2024, which was $29.91 per share.

CEO of JAB Joachim Creus said, “The proceeds from our sale of KDP shares allow us to maintain our leverage target in line with our financial policies, as we continue to build out our investment portfolio. KDP will continue to be one of our most important investments and we expect to continue to be a long-term anchor shareholder in KDP, at or above the 20% ownership level.”

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Following the completion of the transaction, assuming full exercise of the underwriter’s option to purchase additional shares, JAB will own around 21% of KDP’s outstanding common stock, bringing KDP’s public float to approximately 79%.

KDP has stated that several of its directors and officers have expressed interest in acquiring the shares. As per the transaction terms, the remaining shares held by JAB will be bound by a 180-day lock-up agreement with Morgan Stanley.

A lock-up period restricts the quantity of shares that can be sold within a specified timeframe, which in this instance is 180 days. These periods commonly pertain to insiders, encompassing a company’s founders, owners, managers, and employees, but may also involve early investors like venture capitalists.

According to a knowledgeable source, JAB intends to utilize the funds to support its recent ventures in pet insurance. Additionally, the source noted that the sale of KDP shares is a singular event, with JAB currently having no imminent intentions to divest further shares in KDP or any other publicly held assets.

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Beiersdorf forecasts slower sales growth for 2024 amid pricing moderation and market challenges

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March 2, 2024

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Beiersdorf, the company behind Nivea, projects a deceleration in organic sales growth for 2024. This comes after a notable 10.8% surge in the previous year, with the company implementing measures to moderate price hikes.

Known for its cautious projections, Beiersdorf achieved total sales of 9.5 billion euros ($10.3 billion) for the full year, compared to 8.8 billion euros in 2022, in line with Beiersdorf’s guidance for low-double-digit organic growth.

The German company cautioned that sales growth would slow to a mid-single-digit percentage this year.

It anticipates more restrained growth for its consumer business segment in 2024, aiming for “more reasonable” price increases compared to 2023. However, it remains cautious due to high commodity prices, inflation rates, and strained consumer budgets.

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The sector is facing subdued demand as consumers, contending with inflation and rising borrowing costs, have become more discerning in their purchases.

At 10:15 AM GMT on Thursday, shares declined by 3% to 133.4 euros.

“Consumer segment sustained sector-leading growth in (the fourth quarter), but market expectations were high…hence we may see some modest profit taking today,” Stifel analyst Rogerio Fujimori said in a note to investors.

Fujimori noted that Beiersdorf’s core division reported quarterly organic sales growth of 9%, falling short of analysts’ estimates of 11%. This was primarily attributed to a decline in sales at its luxury brand La Prairie.

Luxury companies like L’Oreal have raised concerns about the impact of increased scrutiny by the Chinese government on the “Daigou” business model. This model involves resellers purchasing goods at lower prices from other markets and selling them at a discount in mainland China.

Sales at Beiersdorf brands La Prairie and Chantecaille fell by 15.4% and 18.4% respectively in 2023 due to such limitations affecting China and South Korea.

“Even though the Daigou business was a relevant part of our business, we are happy to see that unauthorized distribution contributing to price erosions is now regulated,” CEO Vincent Warnery said in a call.

Beiersdorf said it aimed to return to growth with La Prairie and Chantecaille in 2024.

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FDA allows yogurt manufacturers to highlight type 2 diabetes risk reduction claims

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March 2, 2024

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The US Food and Drug Administration (FDA) has authorized yogurt manufacturers to highlight that their products may reduce the risk of type 2 diabetes.

According to a statement on March 1st, the FDA stated that it would not oppose specific claims as long as they are accurately worded to avoid misleading consumers and meet other necessary criteria for claim usage.

The food safety regulator described a qualified health claim as one that is backed by scientific evidence but doesn’t meet the stricter “significant scientific agreement” standard necessary for an authorized health claim.

Danone, a dairy giant, had filed a petition for a qualified health claim with the FDA, urging the agency to assess the connection between consuming yogurt and lowering the risk of type 2 diabetes. The FDA has since concluded that there is “credible evidence” supporting this association.

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According to the US regulator, a minimum of three servings of yogurt per week is required for this claim to be considered credible.

The decision arrives as an increasing number of US citizens are turning to GLP-1 weight-loss medications in their fight against the disease.

In November, a survey conducted by US investment bank Stifel emphasized the growing use of GLP-1 weight-loss drugs.

Stifel determined that there is a potential risk to the packaged food sector due to the heightened utilization of drugs, notably Ozempic and Wegovy, produced by Danish pharmaceutical company Novo Nordisk.

According to recent research by Trilliant Health, approximately nine million Americans were using a GLP-1 anti-obesity drug by the end of 2022, and Stifel’s survey indicates that this figure could now be significantly higher.

The bank’s research revealed that 15% of respondents over a three-survey average used a GLP-1 drug, with an additional 21% reporting they would be interested in using one if they were universally FDA-approved for weight loss, had proven results, and became widely available.

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Sports nutrition brand Warrior diversifies portfolio with Protein Water launch

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March 2, 2024

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Sports nutrition brand Warrior has added a new protein water product to its portfolio of high-protein snacks and supplements.

The high-protein, low-calorie beverage comes in two flavors: tropical and berry. Each bottle is enriched with essential vitamins and electrolytes for enhanced hydration. Additionally, it contains ten grams of collagen peptides, providing nourishment for skin, hair, and nails.

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Warrior’s protein water is free from sugar and has under 50 calories per 500ml bottle. Both flavors are suitable for vegetarians and vegans, and they are also free from genetically modified ingredients.

Kieran Fisher, founder of Warrior and parent company KBF Enterprises, commented, “Last year was a phenomenal year for product innovation and we are thrilled to be starting 2024 by introducing Warrior Protein Water to the market”.

He added, “This provides an easy and convenient solution for people to boost their protein intake whilst on-the-go and we are confident this new addition will excite new and existing customers”.

The protein water is available online and at selected SPAR stores across the UK.

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Coca-Cola HBC Northern Ireland to acquire BDS Vending Solutions

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March 2, 2024

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Coca-Cola HBC Northern Ireland has agreed to acquire 100% ownership of BDS Vending Solutions for an undisclosed sum.

Established in 1993, BDS Vending manages around 2,000 vending machines, offering food and beverage vending services across Ireland. After the deal’s finalization, founders David Mullan and Brian Berry will assist in the transition of BDS Vending’s ownership.

As per the company’s statement, acquiring BDS Vending is in line with Coca-Cola HBC’s strategy to enhance its route-to-market capabilities, particularly in last-mile delivery. Additionally, it presents opportunities across a wide array of cold and hot beverages as well as snacks.

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Coca-Cola HBC stated that BDS Vending provides “a valuable foundation, equipped with proven technology and services,” which Coca-Cola HBC intends to leverage for developing further capabilities across its markets.

The completion of the transaction is contingent upon approval by the Competition and Consumer Protection Commission in Ireland, with expectations for it to be finalized in the upcoming months.

Terms of the deal were not disclosed.

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