1 air water just got more exciting. 2 concept / positioning
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AirWater Just Got More Exciting
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Concept / Positioning
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Flavored Vodka Water - A New Category
Citrus: FlavoredWater: Pure Water Carbonated: SparklingNatural Flavor: All Natural
4% alc/vol: Moderate Alcohol
95 cal: Low Calorie
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Intersection of 2 Major Trends
Water ($11bn US market)
Overall bottled water market large and growing
Premium segment well established
Vodka ($8bn US market)
Vodka leads all spirits in share (34%) and growth (6% CAGR)(1)
Large premium segment
Flavored Vodka (20% of Vodka) growth leader (13% CAGR) (1)
(1) U.S. market data. CAGR for 2000-2010
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Positioning: “Live Smart, Drink Smart”
Simple: Water, alcohol, flavors (citrus, berry, club)
Low calorie, low carbs, 4% alcohol
Only natural ingredients
Clean taste, clean odor, clean package
Refreshing alternative to beer, wine and cocktails
Perfectly suited for mixology trend
Cans easy to use, broaden venues / locations
Bottles launching in 2013
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Target Consumers
Broad target market: post-college, meaningful disposable income
Interested in healthy, active lifestyle
Brand conscious
High female proportion
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Huge Market Opportunity
Refreshing alternative to currently available products
Consumers switching from:― Beer to more trendy drinks― Mixed spirits― Wine (esp. non-meal)― Non-alcoholic drinks, incl. water
Wine$30Bn
Spirits$22Bn
Bottled Water$11Bn
Market Sizes
LightBeer
$23BnOther$35Bn
Beer$58Bn
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Distribution
Broad distribution through all channels: Off-premise:
― Big box retailers
― General supermarkets
― Organic supermarkets
― Convenience stores
― Independents On-premise:
― Bars / lounges
― Clubs / dance venues
― Stadiums
― Airlines
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Pricing
Premium pricing relative to beer consistent with upscale, high quality product
Large female demographic less price sensitive
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Execution
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Sales Experienced sales force launched multiple
products nationally across all channels
3-tier distribution system for alcoholic beverages requires unique skill-set― Both wholesalers and retailers important― Personal relationships critical
Strong, long-standing, relationships with:― Distributors
― Retailers– National / regional / local grocery – Big box– Organic grocery– Convenience / independents – Specialty retailers / airlines
Off-premise
In-store displays Sampling POS Ongoing support from
local sales team
Off-premise
In-store displays Sampling POS Ongoing support from
local sales team
On-premise
Drink specials POS “Air Raid” promotions
On-premise
Drink specials POS “Air Raid” promotions
Print media
Vice Regional publications
Print media
Vice Regional publications
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Traditional Grassroots Marketing Predominantly Grassroots, Viral Marketing to Build Long-Lasting Loyalty
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Special Events
Air Jet Pack Sports events (e.g. Baseball, America’s Cup) Summer festivals Special appearances National PR
Launch Parties
Electronic Dance Music (EDM) events of approx. 2,000 people
EDM events in Los Angeles, Portland, Las Vegas, Seattle and San Francisco
Mobile VideoTruck
Supports on- and off-premise launch events
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Social Media
Facebook 11k+ likes on facebook,
~180 new likes per day Highly engaged community Positive product feedback Supports new package /
channel launches
Twitter 400+ followers on twitter Updates on current events
Instagram 600+ consumer
uploads
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Recent Press / Media Coverage
“No longer will you have to guzzle down beverages that leave a lingering taste in your mouth as Air tastes just like water.”
“A new alcoholic drink, Air, Alcohol Inspired Refresher, is being touted as vodka-like.It's nearly completely tasteless,odorless and colorless.”
“Air sounds much more interesting and enjoyable than a Mike’s”
“Are you a vodka/soda guy (or gal) too impatient to mix a simple adult beverage?... What you need to know is that a new beverage is about to come on the market, and it will make your life a helluva lot easier in certain respects.”
“Few new products have had the good luck to be launched on such an historic occasion as a Big League perfect game. That may be the indicator of a charmed existence for Air.”
Air…“That's the brand name for the cutting edge of the alcoholic beverage market: carbonated water infused with alcohol and refreshing bubbles…”
“Every now and again, something comes across our desks that just seems... suspicious. Because of the tremendous material upside to all our lives if these claims pan out, we …investigate…..We… cracked open the can. So far, so bubbly. No alcohol smell. The taste: like Calistoga or Perrier, with a kick.”
“Best of all, it’s only 95 calories.”
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Traction To Date Product launch: 2H May 2012 Initial market: Southern California. Current shelf presence:
― Whole Foods― Albertsons― Ralphs― 7-Elevens― Walmart― Various leading independents and key on-premise
Highly positive feedback from store managers and chain buyers Roll-out in other markets underway:
― Northern California, Nevada, Arizona, Washington, Oregon, Idaho Inbound requests for national launch: 7-Eleven, Walmart, SuperValue 7,000+ cases sold to date
― Fastest product launch in company history Rapid sales growth with virtually no advertising spend
― July-Aug: 100% m-o-m same store growth at Whole Foods and Albertsons
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