Disappearing from Store Shelves: Canada Dry Tonic Water

Canada Dry LogoBevWire recently learned that Canada Dry’s Tonic Water is being delisted or discontinued.  A store clerk at the local supermarket said that they can no longer order in this product because it wasn’t being made anymore.  This is really interesting news because Orangina was taken off cold channel shelves earlier this month, and now another product from this company is being taken away.

BevWire understands that some companies are cutting down the number of SKUs they bring to the market, but why cut something when it actually sells?  Is this brought about because private label tonic water is the number 1 seller in the market, while Schweppes is number 2?  Quite possibly.  Tonic water is a generic mixer with other beverages so the margins may not be as high.  And since Canada Dry is not in the top 2, there is no point to remain in the market.  Furthermore, customers may believe there is little or no differentiation between Canada Dry’s Tonic Water and a private label tonic water, and thus weaken the product’s sales.  If Canada Dry is indeed exiting tonic water, they will likely focus their efforts on what works best for them – Ginger Ale, Club Soda, and their recently launched Green Tea Ginger Ale.

Advertisements

Pepsi releases Aquafina Plus 10 in Canada

AquafinaPlus10BevWire has found all the news articles and press releases about Pepsi launching Aquafina Plus 10 in Canada and the portions of the release are pasted below:

PepsiCo Canada has launched Aquafina Plus Vitamins 10 Cal – the nation’s first low-calorie vitamin-enhanced water to feature stevia extract all-natural sweetener, called PureVia.

Stacy Reichert, president of PepsiCo Canada, said: “We are extremely proud to be the first and only nationally available beverage in the country to feature PureVia as a zero calorie, natural sweetener. Consumers have long anticipated a zero calorie natural sweetener and are seeking healthier beverage choices.”

“Our hydration portfolio, including Aquafina Plus+(R) vitamin-enhanced water, has seen explosive growth in Canada, and the Aquafina Plus Vitamins 10 Cal brand is going to further that leadership position. Being the first to offer a great-tasting, low-calorie option with a natural sweetener is a big deal, and we are excited about sharing it with health-conscious Canadians,” added Ms Reichert.

It’s interesting how Ms. Reichert claims that Aquafina Plus has the leadership position in Canada.  BevWire would think that Glaceau’s vitaminwater has the leadership position for this beverage category (enhanced water).  Is Ms. Reichert talking about litres sold (volume) or dollars?  Aquafina Plus has a lower price point compared to vitaminwater and has ran more aggressive promotions than vitaminwater as well.  If we’re talking about volume, then Aquafina Plus would most definitely have more market share.  However, if we’re alluding to dollars and absolute profit, then BevWire believes vitaminwater has the leadership position.

Finding out some Nielsen market share numbers was not easy but  BevWire managed to get some statistics.  As of late August 2009, Aquafina Plus’ year-to-date market share  (dollars) was closer to 3.5%, while vitaminwater hovered around 5%.  In year-to-date market share (volume), Aquafina Plus has sold over 300,000 bottles litres more than their main competitor.

With the release of Aquafina Plus 10 in Canada and vitaminwater10 still only available in the United States, Aquafina Plus does stand to gain some market share with its healthier beverage.  Still, if vitaminwater10 was ultimately released into Canada, BevWire believes that the leadership position will belong to vitaminwater.

New Leaf Tea: something wrong with their packaging?

NewLeafTea

New Leaf tea was introduced into the Canadian market in the past few years.  BevWire recently took notice, and realized that something was off with their packaging.

The beverage company produces a  Blue Tea, Green Tea, and White Tea.  Trouble is, the Blue Tea is in a yellow bottle, Green Tea is in a red bottle, and White Tea is in a green bottle.

Whoever was in charge of the packaging didn’t do their research.  A regular consumer interested in red tea would likely choose the red bottle.  A customer interested in green tea would choose the green bottle, and so on.  Who would have thought that if you choose the red bottle, you would be getting  green tea?

If there are any sales figures that BevWire can obtain, New Leaf teas most likely will exist as a blip on the radar (if they even show up at all).  However, if the packaging was refreshed to show the tea in their correct glass bottles,  sales may very well increase (and still show up as a blip on the radar).

Jolt Cola: soon to be discontinued?

JoltCola

Jolt Cola’s parent company Wet Planet Beverages has filed for bankruptcy protection.  The filing protects Wet Planet Beverages from Rexam, the makers of the Jolt Cola resealable can.  Wet Planet Beverages has a business contract to purchase 90 million resealable cans between January 2007 and December 2009.  So far, they have only purchased 27 million resealable cans.  The resealable cans are supposedly 3 times the cost of a regular can and Wet Planet cites the economic recession as the main reason it cannot fulfill the business contract.

Rexam is owed $2.1 million and is Wet Planet Beverage’s largest creditor.

Is this going to be the end of Jolt Cola, or will a beverage company step in and purchase the brand?  In a saturated energy drink market, it may not attract a lot of suitors.  However, they may be enough interest out there to re-launch the beverage if the bankruptcy filing succeeds.  So Jolt Cola addicts, go out and buy Jolt Cola while you still can!