- AB InBev’s Anheuser-Busch will use its distribution community (AB One) to distribute ShineWater, a ready-to-drink hydration beverage with 100% of the every day advisable vitamin D, the corporate stated in a press release. ShineWater declined to reveal any extra monetary particulars in regards to the deal, together with whether or not Anheuser-Busch invested within the firm.
- The deal will increase ShineWater’s availability all through its geographic community on the West Coast, within the Northeast and in Oklahoma, opening the door for the product to be bought at shops the place Anheuser-Busch merchandise are carried.
- The vitamin D water is the most recent meals and beverage model to latch onto the purposeful development as consumers search for greater than sustenance or refreshment from the merchandise they buy and devour.
As firms similar to AB InBev, Molson Coors and others have struggled with declining beer gross sales, they’ve gravitated towards different drinks to supply them with a platform for future progress — a lot of them exterior the alcohol class they’re intimately conversant in.
Molson Coors, for instance, has invested in Huzzah, a full-flavored seltzer with added probiotics; Golden Wing, a grain-based milk different fortified with protein and vitamins; and Zoa, positioned as an above-premium power drink with pure components, nutritional vitamins, electrolytes and amino acids.
Anheuser-Busch has beforehand leveraged its current gross sales and distribution community for different third-party merchandise. They embrace wine and RTD cocktail model Beatbox and dietary complement Amino Vitality + Electrolytes. As firms like AB InBev search for progress, it is smart for them to leverage their strong distribution networks to extend gross sales and dabble into choices that might in any other case be out of their traditional space.
Anheuser-Busch’s community of distributors it owns is described by the corporate as “a crucial asset” that permits the nation’s largest brewer to pilot new shopper choices, after which increase probably the most promising ones to its bigger wholesaler system.
“Assembly [the consumer’s] altering wants is why we’re targeted on increasing and innovating inside our past beer portfolio,” stated Scott King, vp of market for Anheuser-Busch’s AB One.
The deal to distribute ShineWater is unlikely to supply a significant increase to gross sales at AB InBev, but it surely exhibits the corporate is making inroads in its push to be extra than simply an alcohol firm. For ShineWater, the partnership provides them fast entry to new markets by tapping into the beer big’s strong distribution community. In early 2020, ShineWater modified its branding and distribution technique, resulting in a 10-fold improve in gross sales throughout the nation, the corporate stated.
Along with beer makers, different firms have taken discover of rising shopper demand for merchandise with a purposeful profit.
Vita Coco’s mum or dad firm All Market this summer season introduced it’s increasing into a brand new section of purposeful drinks with the launch of protein-infused waters known as Pwr Elevate. PepsiCo launched a purposeful water known as Driftwell final 12 months geared toward combating stress and inducing leisure.
Meals and beverage big Nestlé has moved shortly to get within the purposeful drinks sport by way of a collection of strikes. Its newest occurred in March when it acquired Essentia Water, a maker of ionized alkaline water, for an undisclosed quantity. Ocean Spray additionally has launched a line of purposeful water known as B1U that highlights the names of every purposeful mix — I want a lift, I want rhythm, I want immunity and I want energy — prominently on the label.
The truth that firms are angling to enter this enviornment is unsurprising given the shift in shopper dynamics and the surge in gross sales that has adopted. Statista estimated retail gross sales of enhanced bottled water alone are forecast to achieve $5.3 billion in 2022 from $4.11 billion 4 years earlier.