Progressive Grocer

DEC 2016

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46 | Progressive Grocer | Ahead of What's Next | December 2016 Matcha tea, which is partly shade-grown and then ground into a powder, is becom- ing a popular additive across a number of different beverage segments. "Matcha is on consumers' radar because of its antioxidant and clean-energy profile, but we wouldn't have predicted that it would [go] mainstream as quickly as it has," admits Adam Hertel, Ito En's SVP of sales for grocery and alternate channels. Carried in such retailers as Weg- mans, Fresh yme and Gelson's, the brand is gaining wider distribution. Nonfermented sparkling teas is another specialized segment that's erasing the bar- riers between the tea and sparkling water categories. "ere was space in the category between sparkling water and tea," explains New York-based Sound Sparkling Tea co- founder Tommy Kelly. Willing to Pay More for Less For a growing number of consumers, what's not in their beverages is just as important as what's includ- ed. "ese products bring in a younger consumer who recognizes the value of nutrition density and clean labels," says Anne Williams, VP of market- ing for Bellevue, Wash.-based Evolution Fresh, a juice company owned by Starbucks. "Consumers are looking at labels and don't want to see preservatives and too many ingredients in their beverage." New entrants into the cold-pressed juice category are helping to educate consumers on the value of higher- quality, more nutrient-dense products. Consumers are paying for higher- priced single-serve juices that contain on-trend antioxidant-rich ingredients such as spirulina and turmeric. New York-based Fairway Market stocks cold-pressed juices made by BluePrint Organics, a division of e Hain Ce- lestial Group, in Lake Success, N.Y., for $6.99 each, and juices from Saratoga Springs, N.Y.-based Saratoga Juice Bar for $7.99 each. Most brands keep their prices in the $3.99-to- $4.99 range. Evolution Fresh recently developed a new four-SKU Superfoods line of organic juices that will roll out in March 2017. "Retailers are chasing that Millennial consumer with higher disposable income," says Cristian Robiou, CEO of Caribé Juice, in Alexandria, Va. "Whole Foods has proven that the traction already exists for people to pay $1 extra for a beverage with perceived health benefits." Robiou adds that while consumers will pay more, they're not indifferent to price. Caribé adjusted its packaging to bring down the price of a single-serve juice from $4.99 to $2.99. "When you are aiming for adoption at mass, price still signals to consumers," he explains. "e magic number is $3." SPINS' Lazarski predicts that the future of cold- pressed juice could begin to look more like gazpa- cho than orange juice. Fairway is carrying juices from Salinas, Calif.-based organicgirl, which carry the tagline "more greens less fruit." "Cold-pressed, which has been associated with sweeter juices, is now moving into more vegetable-based juices that are starting to look more like soup than juice, with ingredients like balsamic vinegar, sweet potato, adaptogens [a natural substance considered to help the body adapt to stress], ginseng root, turmeric and other herbs, and fungi," she says. ere's also action in the lemonade segment. Daily Greens, based in Austin, recently launched new flavors — Watermelon-Hibiscus Ade, Lime- Basil Ade, Jicama-Blue Majik Ade and Orange- Turmeric Ade — in its Green Ade line of hydrating lemonade. e beverages boast nutrient-dense algae-based superfoods such as chlorella and Blue Majik spirulina in their formulations. Brooklyn-based Honeydrop Beverages is mar- keting cold-pressed lemonade made with honey in flavors like cayenne, lavender, basil, turmeric and matcha. e company also makes an apple kale'ade and a lemonade with charcoal. Suja, a San Diego-based maker of organic, cold- pressed and non-GMO beverages, also introduced a juice with charcoal last year. Charcoal is porous and adsorbent, meaning that a wide range of mol- ecules and chemicals stick to it so it can be used as a "detoxifier." e ingredient has been showing up in beauty products, including masks and pore strips, for several years, and now it's made the jump to juice. e industry is still taking a wait-and-see ap- proach to this particular innovation, however. "e juice-with-activated-charcoal segment has legs," says Lazarski, "but it's so new we're not tracking it yet." PG "Whole Foods has proven that the traction already exists for people to pay $1 extra for a beverage with perceived health benefits." —Cristian Robiou, Caribé Juice Beverage Supplement

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