Beverage Business INSIGHTS
September 23, 2011
Augmenting Push into High End, Big Red Snags Kemper Soda
Big Red Ltd, which made unsuccessful run at Jones Soda a year
ago, has bagged a high-end entry in the soda biz after all: Thomas
Kemper Soda, which had been seeking a partner or buyer. In sale
orchestrated by Kemper investor First Beverage Group, Austin-based
marketer of Big Red and Big Blue sodas, All Sport isotonics and
other mass-oriented lines will take ownership of Portland,
Ore-based boutique soda, which was spun off from Pyramid Brewing
about 5 years ago. Expectation is that Big Red ceo Gary Smith will
keep on Kemper ceo Bill Germano in primarily sales role, while
putting brand in hands of Scott Miller, Twelve bev vet who'd
recently joined Big Red to run direct-sales biz. Expected to help
sort thru brand's various marketing quandaries will be Pepsi and
Genesis Today vet Thomas Oh, who'd come aboard as Big Red's vp biz
development. Short-term moves? Gary expressed reservations about
Kemper's previously cited plans to drop its squat bottle in favor
of conventional longneck, move partly driven by exit from Pyramid
copacking agreement; after all, Gary packs NuGrape in same bottle.
It's also not clear whether expensive switch from HFCS to cane
sugar has done much to garner additional traction for brand;
perhaps that will be rethought. And Gary and team also have to sort
out which of 2 rival stevia-sweetened, zero-calorie natural entries
to keep: Kemper's Naturally Diet or Big Red's Sans entry, both
recently released. With First Beverage having flipped most of
Activate stake to Tata, its remaining bev investment apparently is
recently taken stake in Purity Organic juices tho with broad mgmt
team now assembled it's likely to step up hunt for investments. It
had hung out shingle for partners or acquirers of Kemper several
mos ago. More next week.