Comments on: Coke Jumps Into the Tea Business

By: Ted Mininni

Ted Mininni — Tue, 19 Feb 2008 11:05:36 +0000

Good catch, Jocelyn. You're right. For the sake of complete accuracy, Unilever owns the Lipton brand and they have a joint venture with Pepsico to bottle ready to drink Lipton teas. http://www.pepsi.com/pepsi_brands/all_brands/index.php Thanks for setting the record straight, Jocelyn. I appreciate it.

By: Ted Mininni

Ted Mininni — Tue, 19 Feb 2008 10:59:46 +0000

Hi Sean,
New energy drinks continue to flood the market. I suspect that the product has more cachet because it’s from Snoop Dogg–so it appeals to the entertainment crowd. Kind of expensive for the rest of us, isn’t it? Thanks for letting us know about it so we can check it out, Sean. Great find.

By: jocelyn

jocelyn — Mon, 18 Feb 2008 07:03:15 +0000

Pepsico does not own Lipton – Unilever does!

By: Sean Patrick

Sean Patrick — Sun, 17 Feb 2008 19:56:11 +0000

Energy Drink one can of Atomic dogg on Ebay!
one can right now $51.30
unbelievable!
http://cgi.ebay.com/ATOMIC-DOGG-EXPLOSIV...

By: Sean Patrick

Sean Patrick — Sat, 16 Feb 2008 21:38:24 +0000

Here is a perfect example of a new company thats about to explode just got their product on the shelf and they have Major Star power check it out! Press Release Source: Hall of Fame Beverages
Hall of Fame Beverages’ HydroPower and Atomic Dogg Grammy Weekend
Thursday February 14, 2:20 pm ET
HOLLYWOOD, Calif.–(BUSINESS WIRE)–Hall of Fame Beverages (Pink Sheets: OGNA – News) reached out to the tastemakers during the Grammy’s. Consumers and tastemakers were made aware that there is a new beverage company with great-tasting products. Street teams had Hall of Fame products at various pre-Grammy and post-Grammy events. Hall of Fame Beverages’ participation at the Magic DJ Retreat in Hollywood was a huge success, as DJs from across the country were able to sample three flavors of HydroPower Vitamin infused flavored water and Atomic Dogg energy drink.
ADVERTISEMENT
Hall of Fame Beverages also participated as a sponsor at the I.G.A. album release party for the one and only Snoop Dogg. Hall of Fame had plenty of signage and sampling at the event. Many of the DJs and the press thought that Snoop had a new energy drink of his own. The products were well received with an overall consensus that the products taste great.
It was truly an exciting weekend for Hall of Fame. Not only was Hall of Fame able to have a great branding weekend with some top radio jocks, program directors and key DJs from across the country, Hall of Fame also pick up a key retailer for distribution of the products, as Simply Wholesome retail stores and restaurants came on board. Thanks Simply Wholesome!
Check out Hall of Fame Beverages at http://www.halloffamebeverages.com.

By: Ted Mininni

Ted Mininni — Thu, 14 Feb 2008 13:47:56 +0000

Very articulately made points, Sam. Thanks for sharing more of Hartman Group’s research with me and with Daily Fix readers. I appreciate the input very much.

By: Sam Fromartz

Sam Fromartz — Thu, 14 Feb 2008 13:43:39 +0000

Organics and sustainable can be measured by label or source: ie, organic, fair trade, bought at farmers’ market. And yes, wealthier people tend to be better educated but not all better educated people are wealthy. That’s why organic food does very well in college towns – among the highest penetration and higher than suburbs. Visit Eugene, OR.
Hartman found in the late 1990s that the median income of someone buying organic food was within $2,000 of the national median. They still find this today.
How can this be since organic food is more expensive?
Because most people today buy organic food very discretely – paying up for product categories that they value and trading down for others. Which is why milk, baby food, produce are leading categories but penetration falls way down in grocery. That may change though as organic prices come down and availability increases.
Middle-income people are smart about what they want, and how they shop. And I will be very interested to see how the current economic slowdown and culture of chic frugality will change this.

By: Ted Mininni

Ted Mininni — Thu, 14 Feb 2008 12:30:43 +0000

Just one other point I’d like to add: consumers are better educated today than ever. And what most of us are also alluding to is that consumers are better informed, as well. The Internet makes information widely available and research proves that consumers are availing themselves of this information to become better informed about product and brand choices. Consumers have also proven they are willing to pony up more money for those products/brands they place a high value on, as Sam pointed out.

By: Ted Mininni

Ted Mininni — Thu, 14 Feb 2008 11:27:52 +0000

“And as with all things that first become popular with the educated and more affluent, there’s a trickle down affect as the rest of America tries to get a piece of it as well. Hence the more mass market “organics” which are also more reasonably priced.”
Exactly, Toad. That’s why the supermarket chains are getting into the act now. There is real money to be made since consumer demand is growing for healthier, cleaner food. As I mentioned to Paul earlier, every major chain has organic private label brands now. Due to their huge purchasing power, these products are well-priced for mass consumption.
Thanks for your input.

By: Toad

Toad — Wed, 13 Feb 2008 21:59:59 +0000

And just how does the Hartman group define “organic and sustainable products,” Sam?
Because I’d bet that the more expensive, better packaged ones (e.g. Kashi) wind up in upper income homes far more frequently than lower income ones while the more obscure “hippie” products do transcend class barriers.
As for Whole Foods and their real estate strategy, can you explain the difference between income level and education level with a straight face? Or better yet show me any communities with a preponderance of people with graduate degrees but low incomes? Or vice versa– a community that’s upper income, but filled with high school graduates?
I’ve never said Whole Food style organics are ONLY purchased by upper end consumers. But they’re the ones who can best afford it and it’s become a cultural touchstone and as valid a class marker as anything. Whether that’s money or education is irrelevant– these tend to be the same people. I mean hedge fund managers and big firm lawyers tend not to be community college graduates. And these products are standard issue in any upper middle class blue state burb. Which again, does not mean that no one else buys them. But it’s an interesting cultural development.
And as with all things that first become popular with the educated and more affluent, there’s a trickle down affect as the rest of America tries to get a piece of it as well. Hence the more mass market “organics” which are also more reasonably priced.