Tuesday, May 15, 2012

Grab Your Umbrellas Because Sparkling Ice is Pouring On the Sales

I think it's safe to say Talking Rain has a powerful thunder storm in their portfolio. And it has been unleashed on the rest of the country.  Beverage meteorologists across the nation are predicting strong winds (dollar sales) and heavy rain (volume) to continue, at least for the rest of this year.
 
Of course, Talking Rain is based in Washington state, where else.
Talking Rain's (TR) Sparkling Ice has been around for about 20 years. As the name implies, Sparkling Ice is an enhanced sparkling water that is naturally flavored. It comes in a tall, slim 17 oz PET and has eight flavors, each of which touts zero cals and zero carbs. But, how come most people haven't heard of Sparkling Ice until recently? TR decided to change it's strategy to target consumers who are leaving the CSD category. It's strategy included launching the brand on a national scale and aligning with distributors in all critical regions. The result? 2103% increase in volume vs YAG (excl Wal Mart).


How did they achieve such a large increase? By gaining authorizations and POG in large chain stores and securing a distributor network (a lot of beer houses) that can service those stores regularly. The average retail for Ice's 17 oz bottle is around $1.19, but expect to continue to see 10/$10 throughout the Summer and probably the rest of the year. This price point is essential to the brand's recent surge, by targeting consumers who are looking for value, especially when considering a new product.

Distributors I've talked to throughout the Southeast said they are going through about a truckload a week. They've told me they have Publix stores selling upwards of 80-100 cases per week at 10/$10, on the high end. The low end is about 40 cases week. Wal Mart sells for $1 and these same distributors say the volume is even higher in those stores. Look for pallets on the cart rail, action alley and/or 4 foot sections top to bottom. Not bad for a relatively new brand in Florida.
Sparkling Ice's line-up, including two newcomers, Lemonade and Coconut Pineapple

If there is a downside (and there almost always is), the only one I heard of is the shape of the PET. It just annoys sales reps and merchandisers. They say the bottle is like a bowling pin. When stocking shelves, if one bottle falls over, it knocks over nine more! And it's not a real downside, but I'm trying to be critical here!

There have been some recent occasions of beer distributors dropping some NA business, mainly due to the growth of the craft beer category (they need the space in their warehouse), but if a beer distributor currently carries TR in their market, they won't be letting go of this golden nugget.

This blog is the opinion of the author. None of the companies mentioned here have any affiliation with this blog, nor do they endorse its contents...but they should. Gregg W Shore is a 23 year beverage veteran who writes his blog @DrinkPro, A View of the Beverage Industry, from the Inside Out. Connect on LinkedIn and follow on Twitter @DrinkPro.

1 comment:

  1. BevNet.com quotes @DrinkPro in recent article.
    http://www.bevnet.com/news/2012/talking-rains-sparkling-ice-an-overnight-success-after-25-years

    ReplyDelete