Progressive Grocer Product

Fall 2014

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12 Progressive Grocer Products Showcase / Fall 2014 beverages Progressive Grocer: Why did you launch new Vintage Sparkling Water? Kirk Morrison: We launched it just last year and have already seen some promising developments in distribution and promotion. We had been seeing opportunities beyond our Vintage Seltzer portfolio, and decided that a new line of Vintage Sparkling Water would fulfill those needs for our consumers and retailers. We toned down the carbonation slightly, added new, innovative flavors and are very happy with the product we ended up with. PG: How do the "New" and "Vintage" words reflect how the product builds on consumers' longtime fondness for seltzer water, but with a new twist? KM: The Vintage brand has always valued the fond memories and ongoing traditions that our customers associate with seltzer water. Adding new flair to an old classic is what we were trying to accomplish, and I think we have been very successful in achieving that. This launch is an opportunity for seltzer fans to experience a new wave of growth in the category, but also for young people to make memories and start traditions of their own. The new line of Sparkling Water is a perfect blend of new age inspiration and classic Vintage quality. PG: How are you supporting the product line? KM: Promotional and in-store support will continue to be a large part of getting this brand of the ground in 2015. We plan to continue our retailer-based promotions, while also overlaying consumer-focused eforts in various media channels. Cott, one of the world's largest producers of beverages on behalf of retailers, brand owners and distributors, ofers beverages in a variety of packaging formats and sizes. For more information, email Kirk Morrison at [email protected] Talking with…Kirk Morrison ASSOCIATE VALUE BRAND MANAGER Advertorial to make at-home entertaining more upscale or exotic. In coffee and tea, in particular, the introduction of K-cup technology which allows consumers to customize their coffee day to day without having to hit a coffeehouse, changed that segment of the beverage industry indelibly. Flavors and coffeehouse-style drinks can be made at home, satisfying consumers' needs for a treat or a splurge, but making it a smart splurge vs. spending hard-earned cash at a coffeehouse. This technology also allows more creative entertaining, as guests easily can have customized after-dinner or brunch coffee drinks. However, consumers are still on the go and seeking beverages that fit certain needs – satiation, energy and even relaxation. Bottled water spurred a movement of drinking on the go, and now everything from carbonated soft drinks to ready-to-drink coffees, teas and energy beverages have portable packaging, fitting snuggly in cup holders nationwide and worldwide. While there will always be a comfortable place for traditional beverage products – sodas, juices, etc. – innovation certainly has ignited the beverage industry over the years and continues to do so. Lifestyle trends, for example, have Beverages +1.6% (IRI) KEy TRENds 4 Home-based dining and entertaining 4 Portability and on-the-go satiation, energy recharge, relaxation 4 Innovation 4 Indulgence—flavors and coffeehouse in the home as a smart splurge vs. going to coffeehouse CATEGORY GROWTH SALES Refrigerated Tea/Coffee +10.2% $1.1B Shelf-stable Canned Juices +10.0% $1.2B Tea- Loose/Bagged +7.1% $1.3B Ready-to-drink Coffee/Tea +5.9% $4.4B Spirits/Liquor +5.9% $5.3B Source: IRI, Chicago

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