The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
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- Water for Work and Home targets home market
Lugging heavy bottles of water back from the supermarket could be a thing of the past claims Water (for Work and Home), as the UK water cooler company prepares to launch its range of models for the home. The line includes floor-standing and countertop units that can hold 10, 12 or 19 litres of natural Kent water, including the machine pictured, which the firm believes is set to become the latest must-have kitchen gadget. “We are all used to grabbing a cup of chilled water from the office cooler, so why not at home?” explained Managing Director Ben McGannan. “Coolers free up space in the fridge normally taken up by bulky plastic bottles. "Water is essential for our health and wellbeing. Research has shown that drinking the recommended eight cups of water a day can significantly reduce the risk of developing certain cancers (particularly colon), and it helps to maintain healthy kidneys too. Hydration also has a big impact on mental performance and learning, so it’s particularly important for children.” Following product trials carried out by staff at home, which brought back primarily positive feedback, a specific age group seemed especially taken with the units. “Children particularly seem to adopt the water cooler habit, even encouraging their friends to use the cooler when they visit,” said McGannan. “We think it’s because they see it as a fun thing to do, and of course it’s easier for small hands to operate a cooler than a tap over the sink. The firm recently debuted the range at a Kent shopping centre, where passers-by were shown the coolers in action and encouraged to take advantage of a free seven-day trial, as well as an on-the-spot health check. A series of flexible packages have been devised specifically for the home user, which start at £6.99 a week.
- Brita and Abbeychart join forces to supply filters
Brita Water Filter Systems has signed a distribution agreement with vending and catering parts and consumables supplier, Abbeychart. The partnership will see the two companies focus on supplying Brita water filter products to the catering sector using Brita‘s technical filter expertise and Abbeychart‘s in-house sales support and customer service capabilities. “We are committed to improving the accessibility of Brita water filter products to all, and are delighted to be working with Abbeychart to do this,” said Brita Sales Director Anthony Spruce. “With many synergies between our two organisations, we look forward to a fruitful and enjoyable partnership.” Abbeychart Managing Director, Steve Slark, added: “We recognise the quality and reputation offered by the Brita brand and products, and are pleased to be including them as a key part of our range. With Abbeychart’s field sales strength and years of component distribution experience in the beverage market, the addition of Brita‘s water filter products is a logical and exciting development.” Brita has been involved in the research and development of water filtration for over 40 years. Its commercial range of products include water filters for use with water coolers, as well as larger systems for high volume catering sites.
- Glenn Close helps launch milk campaign
Golden Globe nominee, actress Glenn Close – star of the hit series Damages – now has a starring role in the USA’s National Milk Mustache got milk? campaign. No stranger to success, Close is a five-time Academy Award nominee, three-time Tony Award winner and Screen Actors Guild Award, and Emmy Award winner. As the superstar actor, producer and mother that she is, Close needs her energy. She knows that drinking three glasses of low fat or fat free milk every day, combined with staying active and maintaining a healthy diet, will help her stay fit, lean and looking her best. The new ad helps kick off a new initiative called The Campaign for Healthy Weight. The new campaign encourages women to forgo fad diets and focus on simple, lifelong changes to promote health and weight management. The ad copy reads: "Look Close. To perform my best, I need to give my body the attention it deserves. That's why I eat right, exercise and drink milk. Studies suggest the nutrients in 3 glasses of low fat or fat free milk a day can help you maintain a healthy weight. And the protein helps build muscle for a lean body. You'll see."
- Marco unveils environmentally friendly boiler
Marco Beverage Systems has developed a water boiler range that it claims uses 15% less energy than standard water boilers. Available from spring 2008, the Ecoboiler line incorporates an eco mode reduced water tank option for use in quieter periods that heats a lower volume of water with the aim of saving on energy, as well as running costs. Further features include energy efficient insulation, a compact footprint compared to other boilers of the same capacity, an attractive design and the possibility of personalising the machine’s livery to meet clients’ individual design requirements. All units also include Aqualsolate, a safety feature that positively separates water from the electrics, and EzDscale to simplify the descaling process. Available in 5 and 10 litre push button models and 5, 10, 20 and 30 litre tap models, the range is backward compatible with all Marco parts with easy access being provided via the front panel. The line complies with new WEEE regulations and has disassembly instructions for end of life and recyclable parts. It will be on display on stand S1610 at Hotelympia 2008 in London in February.
- Will Jones Soda have same fizz with new leader?
It's hard to imagine the Jones Soda Co of Seattle, America’s most idiosyncratic beverage manufacturer, without Peter van Stolk. He launched the offbeat soft drinks line on an unsuspecting West Coast market in 1996, and for all Jones’ artsy labels and surprising flavours, van Stolk personally gave the brand much of its distinctive identity. Nevertheless, this January he steps down as Chairman and CEO of Jones, although he will remain as a Director. Control of the business is being shared on an interim basis by two other Board members, Scott Bedbury as Chairman and Steve Jones as Chief Executive, while a new CEO is sought. According to van Stolk, he told the Board earlier in 2007 that he planned to quit at the end of the year, but this news was never made public. He goes at a crucial point in Jones’ fortunes. He boosted the brand from local to national celebrity, winning publicity with outrageous new flavours such as Turkey & Gravy for Thanksgiving, as well as more significant innovations such as switching the entire line to cane sugar sweetening rather than high fructose corn syrup. Jones shares soared when van Stolk announced the company was climbing to the next level – packaging its drinks in cans rather than the brand’s signature glass bottles, and staging a full scale national rollout of the core flavours in retailers across the country. However, the rollout did not go as smoothly or rapidly as planned. As well as delays in distribution, Jones was hit by heavy costs including slotting fees. The company’s stock plunged in 2007 when Jones broke the bad news, reporting stark quarterly results. Investors’ disappointment wasn't softened when Jones’ local newspaper, the Seattle Post-Intelligencer, reported in August that van Stolk and other insiders, including Bedbury and Jones, sold company shares worth $6.5 million before the price fell. Although the Securities and Exchange Commission (SEC) apparently looked into the sales, and decided no action should be taken against Jones or its officers, the company still faces lawsuits brought by disgruntled shareholders. In November, Jones reported further losses, despite evidence that the national rollout is gathering momentum. Sales in the third quarter more than doubled to 1.56 million 288oz (8.5 litre) cases, while net revenue after the deduction of $1.3 million in promotional allowances and slotting fees rose 15.1% to $11.7 million. However, Jones’ gross margin declined to 28.6% from 35.3% in the third quarter of 2006, and the company finished with a net loss of $1.5 million or $0.06 per share, compared with a profit of $195,000 in 2006. “During the third quarter, we decided to incur higher than planned promotional allowances and slotting fees associated with our significant expansion into the CSD market,” van Stolk explained. “While the results are below plan for the quarter, and we are disappointed with our recent performance, we believe that in the long term, these investments and initiatives support our strategy to achieve increased shelf space at retail, and heightened awareness of our brand and products.” It was just one month later, at the beginning of December, that van Stolk’s abdication as CEO and Chairman was announced. “I’ve worked hard this past year to lay the foundation for future growth, with an increased product line and national distribution at the retail level,” said van Stolk. “Recruiting a strong and seasoned CEO is the next step in that process and utilising the experience of Scott and Steve in that effort will help ensure a successful outcome. “During the upcoming weeks, I'll be focused on the transition, and look forward to working with the Board to continue to grow the company to bring it to its full potential. It has been a true honour being so intimately involved with such a special company like Jones Soda.” Steve Jones, currently responsible for the day to day operation of Jones Soda, spent 17 years in senior management roles with The Coca-Cola Company, latterly as Chief Marketing Officer. He left Coke after a management reshuffle under Douglas Daft in 2003 and set up a consultancy. He joined the Board of Jones Soda in 2003. Scott Bedbury is also an experienced marketer who now runs a consultancy. He formerly worked for Nike, where he launched the influential “Just do it” campaign, and then joined Starbucks as Senior Vice President of Marketing and Brand Development. Both men plainly have the necessary business savvy to guide Jones through the present difficult phase. However, it seems unlikely that either will provide the same charismatic brand of leadership as van Stolk. Mike Ramey
- Fruit wearing the health halo
There’s been a surge in consumer interest in the intrinsic health benefits of whole fruit and fruit juices vs extracts, and we’re going to increasingly see novel fruit and beverage combinations in dairy, probiotic and soy categories. Through nutrigenomics, gene-specific foods are being identified for the part they play in gut health and cardiovascular disease. Cultivars are now being bred for consumer-driven attributes, including specific health claims, but with this opportunity comes a growing responsibility for substantiation. Many consumers view superfruits as any fruit that offers a health benefit beyond basic nutrition. While it is true that superfruits need inherent health novelty and convenience attributes, this isn’t enough without clever promotion and control of supply. There’s a certain paradox in that consumers appear more accepting of novelty in fruit than in other foods, and yet fruit-based beverage purchases are heavily influenced by traditional sensory attributes. It’s clear that regardless of novelty or function, consumers expect fruit and fruit-based products to deliver a pleasurable eating experience. HortResearch is currently examining a range of fruits, including Zespri Gold Kiwifruit, boysenberry, white fleshed peaches, red fleshed apple, blueberry, blackcurrant, kiwiberry, feijoa and tamarillo. Consumers know fruit is healthy, so we’re tapping into the marketing potential of that intrinsic health message by discovering, validating and promoting specific health benefits from fruit. To do this effectively, we believe it’s necessary to study many different aspects of human and food interaction – bioactivity, potential interactions and synergies in the food matrix, bioavailability and genotype (nutrigenomics). Health and well-being targets The next generation of health benefits include mental state and performance, physical performance and fitness, gut health and immunity. When looking at mental states, we’re considering mood, arousal, activation, vigilance, attention and sleep, motivation and effort, perception and memory and intelligence. For physical performance, we’re examining links between fruit compounds and endurance, energy supply, recovery and tissue growth. In gut health, we are examining activities of gut microbiota, intestinal wellbeing, bowel transit time and natural gut defence. Linked to this is our wider study of how fruit compounds can influence our immune functions. Promotion and product prototypes Today, snack foods compete head-on with fresh fruit. Time is increasingly precious to consumers, so it’s essential to serve fruit in a convenient format. We are going to see multi-delivery possibilities for fruit, including beverages, energy bars, yogurt, ice cream and other dairy, as well as soy products. Whatever the final format, promotion is critical – no matter how super your superfruit may be, if you don’t tell people why it’s great and make it instantly recognisable, authentic and available, then it won’t sell well. Breaking new ground requires a systematic approach. Cranberries and, more recently, pomegranates have both been highly successful in this regard, using science to reinforce their status with consumers as fruits with a specific health benefit. However, there can only be investment in promotion and research if this can be justified by the value of the product, and not simply dissipated across the whole industry. So the products that succeed will be those that are marketed by companies that have control of supply. For businesses interested in marketing a superfruit product, it’s important to visualise how superfruit can be incorporated into their offer, as this reduces risk. The size and growth potential of the target sector has to be assessed with demographics and psychographics of the target audience taken into account. Scientific testing and substantiation has to meet the need for claims in an increasingly regulatory environment. The best way to consider these issues is through the development of a prototype concept product. One such concept drink is Einstein drinksmart – a blueberry juice with microencapsulated fish oil as a source of omega-3, focusing on brain health with long- and short-term benefits. A quick-serve beverage that contains 1.5 servings of fruit per 30cl bottle, this product offers a first-to-market advantage in a high volume and value growth market. So the bar has been raised – it’s not enough to simply have fruit in your product. It needs to be a specific fruit offering a specific substantiated benefit. A superfruit.”
- Janine Allis, Boost Juice
Boost Juice founder and CEO Janine Allis developed the concept of offering quick, affordable, healthy and natural snacks in her Melbourne garage to keep her three young sons energised. Today, all the company’s freshly squeezed and blended fruit juices and smoothies contain no preservatives, artificial flavours or colours and are at least 98% fat free. The business prides itself on the promotion of a healthy and active lifestyle mixed with an uncompromising addiction to fun. Two months after opening the UK’s first Boost Juice Bars on his own doorstep in Manchester and also Oxford, UK international owner and dyed in the wool Mancunian Richard O’Sullivan (above centre) formerly co-owner of the Millie’s Cookies chain, is adopting a ‘one store at a time’ sustainable strategy, to expand the soaraway success Australian Boost Juice brand in the UK. O’Sullivan and his lifelong business partner Mario Budwig plan to have between seven and ten Boost Juice Bars in the UK by the start of 2008, including in Manchester’s Piccadilly train station and at the Chill Factor indoor ski slope in Manchester. Boost Juice are also in negotiation to secure retail partners in London, confident that they will increase their partners footfall through the addition of their delicious business. Success and innovation Boost’s success so far is not only due to the innovative menu of high quality, healthy, fantastic juices, smoothies and crushes, but also a strong, fun brand and excellent customer service. Key to its success is the astute expansion strategy developed after over 20 years of experience expanding Millie’s Cookies across the UK. This strategy aims to test the brand in different indoor environments where customers are likely to want the product: shopping centres, railway stations, high streets and entertainment centres. By focusing on ‘one store at a time’, they can ensure that each bar is a success in its own right, and that lessons are learned and that expansion is sustainable. Richard O’Sullivan says: “We understand the business of running 300 square foot boxes. We owned the cookie category. People didn’t go to buy a cookie – they went for a Millie’s. I expect people will soon say, ‘I’m going for a Boost’.” O’Sullivan is passionate about Boost Juice Bars. Introduced to them by his daughter who was on a gap year in Australia, he has fallen for the ‘love life’ brand, and has even spent the Christmas holidays with its Australian founder Janine Allis and her family. “Boost ticks all the boxes for me," he says. "It’s a fantastic product, brilliantly marketed; a product for this time – it's healthy, it’s funky, it’s great music, it’s great staff, it’s full of young people. It’s all the things I want in my life!" It's this passion that offers Boost Juice its greatest competitive advantage, as O’Sullivan explains: “Many of our competitors are venture capital backed. Their horizon is get in, buy the market and get out. We have no interest in building to sell. We’ve done that. We want our business to be alive. That's a significant competitive advantage." Global phenomenon “Boost has experienced phenomenal growth in the last seven years and the brand is now the largest juice and smoothie chain in the Southern Hemisphere. There are more than 200 stores worldwide. Boost is operational in Australia (approximately 160 stores), UK, South Africa, Portugal, Chile, Indonesia, Singapore, Hong Kong, Macao, Estonia and Kuwait, and Boost will be moving into Thailand and Dubai soon. “Growing awareness about healthy eating and in particular, the health benefits of eating or drinking more fruit and vegetables are factors that have contributed to Boost’s success. However, there are dozens of juice and smoothie bars out there, which Boost continue to outperform due to their unbeatable and proven formula: ‘to die for’ healthy products, fantastic service delivered with an in-store vibe and the best class marketing and innovation. “Boost offers a healthy alternative to fast food – it’s a healthy meal in a cup, containing no artificial anything. Secondly, Boost’s ‘love life’ culture runs through every aspect of the business, with the company priding itself on the promotion of a healthy and active lifestyle with an uncompromising addiction to fun. “The most popular product is Mango Magic Smoothie, containing mango, banana, mango nectar, TD4 (to die for) vanilla yogurt and ice. The most popular juice is our ‘5 a day Juice’ containing the juice of two oranges, two apples, two carrots, celery sticks and one beetroot, plus a vita booster (multi-vitamins and minerals). “Boost has always worked with nutritionists to formulate their recipes, to ensure that the health benefits from delicious juices and smoothies are maximised. “As Shane Bilsborough – one of Australia’s leading nutritionists, and a Boost fan – said: ‘A smoothie with real fruit, yogurt and juice or milk acts as a great natural pick-me-up, or a freshly squeezed fruit or veggie juice can be a fantastic source of vitamins, minerals and antioxidants that still tastes great’. All Boost’s juices and smoothies are at least 98% fat free and contain nothing artificial whatsoever. “Boost also offers Boosters products to supplement a juice or smoothie. One example is the ‘Energiser’, which contains guarana, ginseng, and vitamin E. Boost sells shooters for that intense hit of goodness: including Açaí NRG shooter, and Wheatgrass shooters. “The TD4 low-fat yogurt in Boost’s smoothies has been specially formulated by Boost, and contains inulin, an oligofructose that is known as a prebiotic, as well as live cultures steptococcus thermophilus and lactobacillus delbrueckii. “And the big issue for juice bars? There are over 30 independents or multiples in the UK chasing the same retail sites, which invariably drives rents upwards. Many of the earlier entrants to the market are suffering from declining like-for-like sales due to the proliferation, and many have either ceased trading or have just become cafe’s that sell juice. “Boost aims to become the ‘world’s best-loved brand’ and Boost UK hopes to emulate the Boost Juice Bar phenomenon as Australia experienced it. Consumers won’t go for a juice or smoothie, they will go ‘for a Boost’. The plan is for Boost to be a household name with a Boost Juice Bar in every city in the country. This will of course mean there will be thousands of healthier people in the UK getting more of their five a day!”
- M&S reveals Q3 trading statement
Marks and Spencer Group Plc recently released an interim management statement for Q3 business 2007/08. The statement reveals that group sales increased 2.8%, with UK sales up 2%. Other figures included in the statement are: General Merchandise -0.7%; Food +5.1%; UK like for like sales -2.2%; General Merchandise -3.2%; Food -1.5%; and International Sales up 15.1%. Sir Stuart Rose, Chief Executive, said: “Market conditions became more challenging through November and December. We continued to drive footfall, and volume growth in General Merchandise was strong at 5%. Price deflation was 6%, reflecting our continued focus on offering customers better values. We held market share in General Merchandise at 10.6%(2) and in Food at 4.3%(3). “We didn’t discount in the run up to Christmas. Stock levels were well controlled over the period. We had a strong start to the Christmas Sale and sale stocks have now cleared. “Direct was strong, with sales from our website up 78%, reflecting further growth in customer numbers, transactions and conversion. International also performed well, with sales up 15.1% over the period. “We expect trading conditions to remain tough throughout 2008. We are well positioned with a strong product offer and better than ever values across our business. We now have 70% of our stores in the modernised format and a strong pipeline of new space for 2008 and beyond. Direct and International continue to make good progress. "Since 6 November, we have repurchased 1.18% of our shares in issue at a cost of £124.8m." Marks and Spencer Group Plc will report its 2007/08 Preliminary results and Q4 trading for the 13 weeks to 29 March 2008 on 20 May 2008.
- Press release on your publicity
The press releases, newsletters, brochures, websites, merchandising, advertising and trade shows that make up the marketing mix offer effective ways for water cooler companies to publicise their image and brand as well as products and services. cooler innovation Deputy Editor Medina Bailey talks to a business to business public relations (PR) expert, branded uniform specialist and cooler firms to assess the impact that good publicity can have on business. When soft drinks giant Pepsi changed the colour of its can from red to electric blue in 1996, it needed a campaign that would create impact. Adorning a Concorde jet with its new blue logo, tinting the usually red Daily Mirror newspaper front page in a blue hue and asking Mir cosmonauts to pose with a giant inflatable Pepsi can as part of its renowned Blue campaign certainly seemed to do the trick. Not only did the marketing stunts receive international press coverage, but they also made Pepsi rivals Coca-Cola and Virgin sit up and take notice. Campaigns of this kind might be financially inaccessible for smaller businesses, but they do demonstrate how effective marketing can be when different mediums are used to deliver a message to a specific target audience and reach out to a new one. A properly organised publicity strategy that is continuous, flexible and makes use of as many marketing methods as possible, will bring about various advantages, says PR expert and founder of UK based agency, AGM Publicity, Alan Godfrey. "It should reach people likely to buy your products or services and increase enquiries, as well as help sales people to be recognised by company or brand name and build and maintain the long term image of the firm," he said. "Your investment over time will give ongoing, cost effective rewards." Despite these apparent benefits, Godfreyís experiences in the two decades, that AGM has been dealing with small to medium manufacturers and suppliers, have shown that although water cooler companies will have put a business plan in place from day one, their marketing plans are often neglected or even non-existent. Bottom of the pile Cooler firms design, manufacture and supply superb products, but often only rely on advertising and exhibitions plus, of course, their sales people to fulfil their sales lead generation needs, he explained. Many do not understand PR or have the time to deal with it - therefore it stays bottom of the pile. Firms also work under the assumption that if a product or service is good enough, it will sell itself by recommendation. "Oh really?" questions Godfrey, who has also trained as a photojournalist and worked as an Advertisement Manager and Publisher. Is that why Rolls Royce and other huge names spend millions on advertising? They generally market the brand rather than the product. "That said, in our business, industry people do want information on actual products. But many still believe that readers of trade magazines only want technical information and fail to think about the long term promotion of the companyís image too. It is very important to give confidence to buy, and mention expertise, service, quality and supply. Do it yourself An understanding of how marketing works is essential to positive publicity, but Godfrey insists that it is not necessary for all firms to approach a PR agency to perform their duties. His recently published book, "How to Handle Your Company Publicity - The Guide", outlines how companies can achieve results by working on their own marketing inhouse using methods such as PR, advertising, direct mail and newsletters. In compiling the practical, no nonsense handbook, which involved speaking to Editors, he found that even PR firms and large companies can sometimes get it wrong. "I have proved many times that firms can do the job themselves, but they need to be organised and have someone to carry out the day to day tasks of publicity," he said. This could be a Secretary or Personal Assistant with reasonable writing and organisational abilities or someone specifically employed for the role, with the main criteria being that they will remain with the company for a long period of time and really get to know its products, markets and ideals. Working closely alongside the Sales and Marketing Manager, the right person should surround themselves with good suppliers, such as photographers, graphic designers, printers and technical writers and ensure that they have an office for arranging meetings. Daily tasks could include setting up and maintaining a media mailing list, talking to advertising and editorial personnel, arranging exhibitions, producing graphics, brochures and advertising material, writing and issuing press releases, updating web pages and arranging photography sessions. Phew! It all sounds too much - but if it is organised, just a short time every day can see you through. Publicity is a serious function, and playing with it can be a disaster - just ask Gerald Ratner! It must be seen as a continuous day to day job showing people within the company and outsiders the positive attitude that is being taken. Press releases One of the most important daily duties is providing relevant publications with press releases and material for features. According to Godfrey, the main mistake that companies make is either sending out too many releases or none at all. "Some get their priorities wrong, for instance, they make a huge fuss about their new website and forget about their new product that will be making its dÈbut at an exhibition that has cost thousands and many years to develop. Releases should also only be sent when companies actually have something to say. Do not worry too much that you are not a trained journalist. Just write about what you know in some sort of order of importance and donít mention your company in every other line. Think about the reader - do they want to know how many offices you have or what the Managing Director thinks? The next most cost effective marketing tool is the mailing, which should be well presented, sent to a named person with a specific job title, offer something that the recipient will need and give them an incentive to respond immediately. Further methods are exhibiting at events and advertising. As exhibitions can prove costly, Godfrey recommends that they are planned carefully and 'worked' to ensure that they are capitalised on. Invitations should be sent out to potential and existing customers, as well as the media, particularly if a new product is being launched at the show. Attendees should be persuaded to visit tands with the offer of a small gift as an incentive and advertising should be placed in magazines covering the exhibition a month before the show. "Advertising is an excellent tool in marketing," said Godfrey, "but of course it can be expensive. You should change the message regularly but keep to your corporate image. Make sure that you choose the right publication for you and not necessarily the cheapest. A small advert, such as a quarter or half page spread over two or three editions is usually better than just one big page, especially for small firms." Branding it Another area that is also sometimes overlooked within the cooler industry is branding, as Godfrey explains: "Branding is very important. People buy brands not manufacturers. Brands are usually trusted over a long period of time. I believe that all products should have the brand name clearly on them, even if they are out of sight, such as a filter or pump." "Whether people drink water from a bottle or use a machine to dispense it - I think we all feel more comfortable with a known good brand." A company that knows a thing or two about branding is uniform manufacturer Simon Jersey. Responsible for designing workwear clothing for delivery personnel that is practical, fit for purpose and carries positive messages about the company being represented, the firm has experience across a broad spectrum of industries, from office and medical to food preparation. "Branding is about creating the right visual impression," commented Manager of Bespoke Design for the company, David Sprakes. "Whether rightly or wrongly, your organisation is judged on first impressions, many of which involve your staff. Our customers come to us for this reason." Various solutions are offered according to the environment that workers operate in, as well as the company type. Clothing, such as the polo shirt or tunic, can be given a bespoke touch by applying sewn-in logos, labels, embroidery, heat applied transfers or even reflective 3D material. With a blue chip client base that includes Emirates Airlines, P&O Cruises and Avis, the firm works closely alongside its clients in order to gain ideas and feedback from the wearers themselves. "We come into contact with the full range, from those who just know they need something, to those who have sketches of what they are looking for. It doesn't matter to us what stage they are at, we can join in at any point. As long as they are receptive to the idea that first impressions can be crucial, then we are working with the right type of client," he continued. "We talk to those at the top level who know about budget constraints and company image, and we talk to those out there on a daily basis to see what it is they are asking for." Cooler couture According to Sprakes, the same rules apply in the water cooler world when personnel are making water cooler and bottle deliveries and carrying out installation and sanitisation visits. "Impressions here are enormously vital. This is an industry where hygiene is critical, and if you are a supplier then your customers need absolute faith in your ability to be hygienic. Companies will question: ëIf they canít be bothered with their appearance, do they cut corners anywhere else, and is this a risk we should be taking?" Further aspects, such as employees visiting homes and weather conditions also come into play. "People donít like answering their doors to strangers, so a fully branded uniform can help prove legitimacy. A lot of companies need their clothing to work for them. We produce fleeces, waterproofs and high visibility garments for those out there battling the conditions. We also have a composite alternative to steel toe capped shoes, which makes it easier to pass through security systems with metal detectors. Unifom truly is a head-to-toe investment." As he works closely with Simon Jersey's design department, Sprakes also revealed what fashion trends will influence workwear over the coming months. His predictions for 2008 include chocolate and oatmeal colours, comfortable but smart trousers and polo shirts. Publicity in practice A cooler manufacturer and distributor share their views about marketing within the industry and give an insight into their strategies. Do you think that cooler companies are good at PR and marketing generally? Ebac Marketing Director Scott Meikle Ebac (*SM*): "Compared to other industries, I would say that the cooler industry has a significant opportunity to use marketing and PR to drive business forward. On an individual basis, businesses can win more market share through appropriate marketing and on a broader level grow the market and get more coolers out there. That said, many of the smaller distributors are quite entrepreneurial and do very well." Angel Springs Managing Director John Dundon (*JD*): "Bottled cooler companies have traditionally not had to deal with PR, while marketing has sent out mixed messages. The media challenges created by the environmental issue and the 'POU only' industry have not been dealt with effectively. Some of the negative and misleading marketing produced by 'POU only' companies do not help the image of the cooler industry as a whole; it is often negative and totally inaccurate. Eventually, the cooler industry will mature and market a cohesive, consistent message and image that will withstand media and consumer scrutiny." Why do you think some cooler companies fail to invest in their marketing? *SM*: "In terms of the larger operators, I think they do invest and they do reasonably well. The smaller distributors donít do as much, but remember they are running a business day to day and are very busy. At Ebac, we are working on marketing tools that can help our customers, with a minimum amount of effort on their part, to grow their business. We hope this will help them from a time and cost perspective and encourage them to be more proactive in this area." *JD*: "The market has shown phenomenal growth over the past 15 years as consumers have become more aware of health issues and the government has chipped in with legislation on providing drinking water at the workplace etc. In such a bullish market, cooler companies only needed to be rudimentary and basic in their marketing as a ëone message catches allí approach was used." "However, times change and we now need to be much more sophisticated in our marketing unless we want to be left behind. Looking to other industries can be useful; their niche targeting is something we can learn from. For many cooler firms, making the change to rifle marketing as opposed to shotgun, requires a change of mindset and culture, which is challenging, but vital nonetheless." "Also, coolers are not seen by the consumer as a brand - bottled coolers are seen as a service, while POU coolers are seen as a machine rental business, with neither having a strong brand identity. We need to build on the service ethic as an industry." How important are marketing and branding to your company? What rewards do they bring? *SM*: "Marketing is at the heart of what Ebac does - listening to customers, understanding their needs, learning about markets and channelling all of this into products that our customers will value. We believe that high quality brands are created through their performance - rather than a clever marketing slogan. We invest a great deal in both online and offline promotion, ensuring that our message gets out there and people understand what Ebac is all about." *JD*: "In our opinion, branding has a limited return, however, convincing the potential customer of a full service option cooler facility (POU and bottled) with excellent backup has real value and will give good returns. If anything, the name and image of the company need to be synonymous with great service. Angelís marketing is consistent in image and message; it is about high quality service and a comprehensive range." How would you briefly sum up your marketing strategy? Do you think it is proving successful? *SM*: "For coolers our strategy is to match our products with the right markets and the right players within the market. We have a series of patented features on our products, such as the WaterTrail or the vacuum sealed hot tank that deliver excellent benefits and return on investment for our customers. Using these, along with our 37% market share in Western Europe, we are rightly seen as the leader in the market." *JD*: "Angel's marketing strategy has been phenomenally successful - not only has the company grown significantly ahead of the market, but we have been able to improve our margins at the same time. Profitability has increased by 140% in three years - that is proof of a successful marketing strategy!" How would you want your company "brand" to be perceived? *SM*: "We want the Ebac brand to be perceived as a leader in the market that delivers quality products at reasonable prices. We help businesses become successful through our innovation, but our sound commercial offering also makes buying Ebac coolers commerciallysound." *JD*: "We see the company as the brand and vice versa. The brand offering is that of a total cooler service provider - offering POU and bottled, flexibility and outstanding service." Which of the following do you dedicate resources to: website, press releases, mailouts, newsletters, advertising, exhibiting at trade shows? *SM*: "We use all elements of the marketing mix to ensure that our message gets across. The web, even in this relatively small market, is becoming increasingly important. We advertise, we use PR, we use trade shows. We have a full gamut of activity." *JD*: "Our website is critical to Angel. Press releases, mailouts, newsletters and advertising have limited impact in our experience, however, trade shows are a good source of business and give us the opportunity to meet and talk to potential customers about the products and service offering." Which do you find the most effective? *SM*: "We receive a return from all of our activities - to varying degrees. Pound for pound, it is very hard to beat the website." *JD*: "The website." How would you describe your latest series of adverts in terms of what they say about your company? *SM*: "Aesthetics play an important part in everything we do; we are naturally drawn to attractive things and the photography we are now using reflects the quality of the products and attention to detail we put into it. We also try to keep things lively, use interesting headlines to grab the attention of the reader and have a sense of humour, so that comes across too. But primarily our adverts are about detailing the incredible range of features and benefits our coolers offer - that is our strength and what our customers benefit from. We don't try to make the ads too clever." *JD*: "They reiterate that Angel is a total service provider, not bottled, not POU, just coolers, as well as the need for hydration in the workplace and our flexible solutions." Are you looking to make improvements to your marketing in the future? *SM*: "We are always looking to make improvements. Look out for a new website early in 2008, which we hope will be the best in the industry." *JD*: "Yes, we need to be much more proactive in educating and consulting with existing and potential customers regarding carbon footprints, the environment and the way we affect it as a total solutions provider, and the benefits derived from staying hydrated in the workplace and the improvement that it can have on staff wellbeing." Are there any general marketing campaigns that you admire and would aspire to? * SM*: "There are many fantastic advertising campaigns, many of which I enjoy, but that's as someone who works in the industry. For Ebac however, it's not about showcasing our creative talent in advertising, it's about being a good company that our customers want to continue to work with, delivering high quality products and great service." *JD*: "Innocent Smoothies - their message is simple, consistent and based on objectivity, which gives long term credibility. It has raised their market position from bit part player to the number one smoothie brand inside eight years, growing from three employees to 240 and taking 72% of the market share." * Godfrey's top five marketing tips* Make a publicity plan for the year. Using a spreadsheet, record the dates of new launches, look at publications, feature lists and, if appropriate, send your release or story two months ahead. You can also send information about new contracts, personnel recruitment, case studies, exhibitions, new websites and brochures. Now plan your advertising around the publicity plan. Ensure that your website is bang up to date and user friendly. Don't advertise or send out press releases if you cannot provide enquirers with literature immediately. Enquiries should be followed up fast with a phone call. Try to do it yourself - you could save thousands financially. Bonus tip - Get to know the Editor and Advertisement Manager of the trade publications relevant to your industry. You could invite them to important new launches or hold a press function at a specially thought out venue. By the way: they don't have time to spend four hours at lunch anymore unlike the typical journalists of the past who mainly worked in Fleet Street in London. Advertisement personnel are usually well informed on industry matters too and are worth the odd pint or two! * The greatest gaffe?* Entrepreneur Gerald Ratner created a publicity storm in 1991 when he was quoted as saying that his high street jewellery chain Ratners sold crap and its earrings that were cheaper than a prawn sandwich from Marks & Spencer probably wouldn't last as long. After the media pounced on the notorious comments, which were made in a speech to the Institute of Directors, Ratnersí value dropped by £500 million and the Chief Executive was forced to part company with the firm a year later. He has since resumed his jewellery trade ambitions by launching an online store and is believed to be looking to acquire a high street chain, possibly signifying that even the worst public gaffes will eventually be forgiven, even if it could take well over a decade. How to find a PR firm If you decide to hand over your publicity to a PR firm, be aware that finding a good one that understands your products and markets is not easy and some can be insulting with their prices, warns Godfrey. An effective firm should be actively looking for publicity opportunities in the media and have a good relationship with the Editors of the main trade publications. "The first question you should ask them when they are pitching for your business is: 'Who is the Editor of...?' If they cannot answer that, you could be onto a loser. Also ask if you will be dealing with a main principal at the agency and not a school leaver. "If they ask for fees up front or a long term contract, tell them to take a long trip on Eurostar - one way!" Fees for the average company requiring one or two press releases per month, for example, should not really amount to more than £500 or £800 retainer per month. This should include most items and a management time fee should not be charged on top of this. However, you should expect a small charge to cover travel costs and if you want them to be present at exhibitions or special launches that will take up a lot of their time, be prepared to negotiate an extra fee. Useful UK sources '<1>' by Alan Godfrey. Normally priced at £30, this PR guide is available to cooler innovation readers for £28, including postage and package. [ Opportunities for Editorial]<1> A handy two page reference guide that summarises Godfrey's book into an easy to follow chart. Complimentary copies are available from AGM. [ The Chartered Institute of Public Relations]<2> If you can afford to employ a specific PR person, this institute might be able to point you in the right direction. <3> <4> These organisations offer helpful advice about how to produce well presented mailings. <1>: http://www.agmpublicity.co.uk <2>: http://www.ipr.org.uk <3>: http://www.dma.org.uk <4>: http://www.royalmail.co.uk
- Dragons’ Den invention holds water
A product that has been designed to increase water consumption in schools has made a successful appearance on BBC Two's Dragons’ Den. The bottlecoolerpenholder by Concentrate Design keeps water bottles cool and stores pupils’ stationery. The product held its own on the programme in which budding inventors pitch their wares in front of a panel of entrepreneurial judges in the hope that one of the “dragons” will invest in their idea. In the case of inventor Mark Champkins, telecommunications tycoon Peter Jones, who appeared in The Daily Telegraph’s list of top ten entrepreneurs aged under 40 last year, was so impressed with his bottle that he agreed to hand over his own cash and act as a mentor. The desktop pencil holder that encourages children to guzzle water is made from thermal material neoprene, is roomy enough to house a 50cl water bottle, as well as pens and pencils, and comes in five colours with a name tag on the handle to appeal to youngsters. Royal College of Art graduate Champkins set up his firm with the aim of designing products that would inspire pupils to learn. He has worked alongside schools to determine why children were failing to concentrate and felt uncomfortable in their classroom environments. His findings were bolstered by the World Health Organisation statistic that 2% dehydration can lead to a 20% drop in concentration and negatively impact on children’s ability to learn. Having already signed a contract with department store John Lewis to stock his range, which also includes a school bag that transforms into a seat cushion, the inventor wanted to appear on the BBC show to gain some advice about how to develop the business. Since filming, Jones has shared some entries from his book of contacts to ensure that the right people are being approached, and also promised to offer more guidance as the company grows. As for Champkins, he will be concentrating on coming up with new, innovative designs to add to his practical, child-friendly product line.
- Irish distributor for Vivreau
Vivreau has appointed BevServ as sole distributor of its range of mains-fed drinking water systems in Ireland. “We are particularly pleased that Vivreau has chosen to work with us in Ireland,” said BevServ Managing Director, Brian Rogers. “The Vivreau brand is very well-established in the UK, and the company has considerable expertise being one of the first companies to develop the mains-fed market nearly 20 years ago. “Vivreau’s Table Water Bottling System is used in approximately 55% of the top 100 companies in the UK. With such a strong brand heritage, we’re confident we can generate huge interest from Facilities Managers and specifiers looking for design-led, cost-effective systems that offer green benefits. With the newly launched VR3000 and V2O systems, plus other new products in the pipeline, we are very much looking forward to developing the Irish market over the coming months.” Vivreau Managing Director Stephen Charles added: “The economic boom in Ireland has created a significant increase in property development. Our products are often specified during a new build or property refurbishment, so this is helping to fuel an increased demand for Vivreau systems. “Although we have successfully supplied the Irish market from our UK base for many years, appointing our own distributor in Dublin will have significant advantages for customers, including fast access to a local specialist who can provide expert guidance on all aspects of choosing and using Vivreau systems. It’s a very positive move for us and we have complete confidence in Brian, who is keen to bring the Vivreau brand to a much wider audience.” Established in the late 1980s, Vivreau offers a range of purified drinking water systems, including under counter, tabletop and floor standing options that dispense still, sparkling, flavoured, hot and chilled water. Its Table Water Bottling Systems provide purified chilled, still and sparkling water in reusable glass bottles, which can be branded with client logos.
- The publicity machine
**The press releases, newsletters, brochures, websites, merchandising, advertising and trade shows that make up the marketing mix offer effective ways for water cooler companies to publicise their image and brand, as well as products and services. cooler innovation Deputy Editor Medina Bailey talks to a business to business PR expert, branded uniform specialist and various cooler firms to assess the impact that good publicity can have on business.** When soft drinks giant Pepsi changed the colour of its can from red to electric blue in 1996, it needed a campaign that would create impact. Adorning a Concorde jet with its new blue logo, tinting the usually red Daily Mirror newspaper front page in a blue hue, and asking Mir cosmonauts to pose with a giant inflatable Pepsi can as part of its renowned Blue campaign certainly seemed to do the trick. Not only did the marketing stunts receive international press coverage, they also made Pepsi rivals Coca-Cola and Virgin sit up and take notice. Campaigns of this kind may be financially inaccessible for smaller businesses, yet they demonstrate how effective marketing can be when different mediums are used to deliver a message to a specific target audience and reach out to a new one. A properly organised publicity strategy that is continuous, flexible and makes use of as many marketing methods as possible, will bring about various advantages, says PR expert and founder of UK based agency, AGM Publicity, Alan Godfrey. “It should reach people likely to buy your products or services and increase enquiries, as well as help sales people to be recognised by company or brand name, and build and maintain the long-term image of the firm,” he says. “Your investment over time will give ongoing, cost-effective rewards.” Despite these apparent benefits, Godfrey’s experiences in the two decades that AGM has been dealing with small to medium manufacturers and suppliers, have shown that although water cooler companies will have put a business plan in place from day one, their marketing plans are often neglected or even nonexistent. * Bottom of the pile* “Cooler firms design, manufacture and supply superb products, but often only rely on advertising and exhibitions – plus, of course, their sales people to fulfil their sales lead generation needs,” he explains. “Many do not understand PR or have the time to deal with it, so it stays bottom of the pile.” Firms also work under the assumption that if a product or service is good enough, it will sell itself by recommendation. “Oh really?” questions Godfrey, who has also trained as a photojournalist and worked as an Advertisement Manager and Publisher. “Is that why Rolls-Royce and other huge names spend millions on advertising? They generally market the brand rather than the product. “That said, in our business, industry people do want information on actual products. But many still believe that readers of trade magazines only want technical information and fail to think about the long-term promotion of the company’s image too. It’s very important to give confidence to buy, and mention expertise, service, quality and supply.” Do it yourself An understanding of how marketing works is essential to positive publicity, but Godfrey insists that it’s not necessary for all firms to approach a PR agency to perform their duties. His recently published book, How to Handle Your Company Publicity – The Guide, outlines how companies can achieve results by working on their own marketing in-house using methods such as PR, advertising, direct mail and newsletters. In compiling the practical, no-nonsense handbook, which involved speaking to editors, he found that even PR firms and large companies can sometimes get it wrong. “I’ve proved many times that firms can do the job themselves, but they need to be organised and have someone to carry out the day to day tasks of publicity,” he says. This could be a Secretary or Personal Assistant with reasonable writing and organisational abilities, or someone specifically employed for the role, with the main criteria being that they will remain with the company for a long period of time and really get to know its products, markets and ideals.” Working closely alongside the Sales and Marketing Manager, the right person should surround themselves with good suppliers, such as photographers, graphic designers, printers and technical writers, and ensure that they have an office for arranging meetings. Daily tasks could include setting up and maintaining a media mailing list, talking to advertising and editorial personnel, arranging exhibitions, producing graphics, brochures and advertising material, writing and issuing press releases, updating web pages and arranging photography sessions. “Phew! It all sounds too much – but if it’s organised, just a short period every day can see you through. Publicity is a serious function, and playing with it can be a disaster – just ask Gerald Ratner! It must be seen as a continuous day to day job, showing people within the company and outsiders the positive attitude that is being taken.” Press releases One of the most important daily duties is providing relevant publications with press releases and material for features. According to Godfrey, the main mistake that companies make is either sending out too many releases or none at all. “Some get their priorities wrong, for instance, they make a huge fuss about their new website and forget about their new product that will be making its debut at an exhibition that has cost thousands and many years to develop. “Releases should only be sent when companies actually have something to say. Don’t worry too much that you’re not a trained journalist. Just write about what you know in some sort of order of importance and don’t mention your company in every other line. Think about the reader – do they want to know how many offices you have or what the MD thinks?” The next most cost-effective marketing tool is the mailing, which should be well presented, sent to a named person with a specific job title, offer something that the recipient will need and give them an incentive to respond immediately. Further methods are exhibiting at events and advertising. As exhibitions can prove costly, Godfrey recommends that they’re planned carefully and ‘worked’ to ensure that they are capitalised on. Invitations should be sent out to potential and existing customers as well as the media, particularly if a new product is being launched at the show. Attendees should be persuaded to visit stands with the offer of a small gift as an incentive, and advertising should be placed in magazines covering the exhibition a month before the show. “Advertising is an excellent tool in marketing,” says Godfrey, “but of course it can be expensive. You should change the message regularly but keep to your corporate image. Make sure you choose the right publication for you and not necessarily the cheapest. A small advert, such as a quarter or half page spread over two or three editions is usually better than one big page, especially for small firms.” Branding it Another area that’s often overlooked within the cooler industry is branding, as Godfrey explains: “Branding is very important. People buy brands not manufacturers. Brands are usually trusted over a long period of time. I believe that all products should have the brand name clearly on them, even if they’re out of sight, such as a filter or pump.” “Whether people drink water from a bottle or use a machine to dispense it – I think we all feel more comfortable with a known, good brand.” A company that knows a thing or two about branding is uniform manufacturer Simon Jersey. Responsible for designing work wear clothing for delivery personnel that’s practical, fit for purpose and carries positive messages about the company being represented, the firm has experience across a broad spectrum of industries, from office and medical to food preparation. “Branding is about creating the right visual impression,” says Manager of Bespoke Design for the company, David Sprakes. “Whether rightly or wrongly, your organisation is judged on first impressions, many of which involve your staff. Our customers come to us for this reason.” Various solutions are offered according to the environment that workers operate in, as well as the company type. Clothing, such as the polo shirt or tunic, can be given a bespoke touch by applying sewn-in logos, labels, embroidery, heat-applied transfers or even reflective 3D material. With a blue chip client base that includes Emirates Airlines, P&O Cruises and Avis, the firm works closely alongside its clients in order to gain ideas and feedback from the wearers themselves. “We come into contact with the full range, from those who just know they need something, to those who have sketches of what they are looking for. It doesn’t matter to us what stage they are at, we can join in at any point. As long as they’re receptive to the idea that first impressions can be crucial, then we’re working with the right type of client,” he continues. “We talk to those at the top level who know about budget constraints and company image, and we talk to those out there on a daily basis to see what it is they’re asking for.” Cooler couture According to Sprakes, the same rules apply in the water cooler world when personnel are making water cooler and bottle deliveries, and carrying out installation and sanitisation visits. “Impressions here are enormously vital. This is an industry where hygiene is critical, and if you’re a supplier, then your customers need absolute faith in your ability to be hygienic. Companies will question: ‘If they can’t be bothered with their appearance, do they cut corners anywhere else, and is this a risk we should be taking?’” Further aspects, such as employees visiting homes and weather conditions also come into play: “People don’t like answering their doors to strangers, so a fully branded uniform can help prove legitimacy. A lot of companies need their clothing to work for them. We produce fleeces, waterproofs and high visibility garments for those out there battling the conditions. We also have a composite alternative to steel-toe-capped shoes, which makes it easier to pass through security systems with metal detectors. Uniform truly is a head-to-toe investment.” As he works closely with Simon Jersey’s design department, Sprakes also revealed what fashion trends will influence work wear over the coming months. His predictions for 2008 include chocolate and oatmeal colours, comfortable but smart trousers and polo shirts. Medina Bailey
