Bob Tullio’s Product Perspective: A Closer Look At Products, Equipment And Services That Will Impact An Operator’s Business

The Product: Jarritos Craft Soda – Mandarin and Tamarind, Sidral Mundet, Mineragua Sparkling Water and Sangria Señorial

Here is a staggering growth statistic to consider: While the compound annual growth rate (CAGR) for the carbonated soft drink category has remained flat over the past several years, Jarritos Craft Soda, a line of carbonated beverages targeted primarily at the Hispanic market, grew by over 10%, delivering five consecutive years of double-digit growth.

Hispanics are already the largest minority group in America, so Jarritos’s double digit growth is right in line with population trends.

Convenience services are an untapped market

With powerful numbers behind them, Jarritos Craft Soda is now targeting the vending, micro market and office pantry business segments. Their new 550-milliliter bottle is built for vending and market shelves.

“We have been busy building our brand in retail for many years, but we see a huge opportunity in the convenience services industry,” said John Hall, Divisional Fountain/Vending Manager at Novamex, the company behind Jarritos Craft Soda.

Novamex is offering a free vending machine kit that can transform a generic machine into a Jarritos branded unit. Jarritos Mandarin is the number one seller, followed by their sparkling water product, Mineragua, which is actually the top seller in health-conscious Southern California.

With the success of Jarritos Craft Soda in 66,000 retail locations, Hall sees Jarritos products flying off the shelves in micro markets, where customers are always looking for something new.

A successful craft soda since 1950

What drives the product in Hispanic markets? Jarritos was introduced in 1950 in Mexico and became the number one seller in the country within 10 years.

Hall points to three reasons why Jarritos Craft Soda is successful:

1. Hispanics grew up with it in their refrigerators. The colorful glass bottles are a familiar sight.
2. The drinks taste great. They are sweetened with cane sugar, not corn syrup. Customers love the smoother taste.
3. All Jarritos flavors are natural, which appeals to all audiences.

“Our products are truly craft sodas and people are starting to figure that out,” he said.

Bob’s perspective: Jarritos Craft Sodas make sense for operators

I’m a little biased about Jarritos, because in Southern California, the product is quite visible and obviously successful. As a micro market, pantry service and vending operator who was always in search of products that would energize sales, I would have jumped at the chance to introduce Jarritos Mandarin and the rest of the Jarritos product line to my customers.

Consider the following:

• The trend  ⁠— Beyond the growth of Jarritos products compared to the carbonated soft drink category, sales of all Mexican foods are up 31%. How can you ignore a trend of that magnitude?
• The growth  ⁠— Based on the recent US Census, the Hispanic portion of the US population is projected to exceed 30% by 2060, from about 18% today.
• The 7-Eleven deal ⁠— Novamex and 7-Eleven just signed a fountain deal that will put Jarritos Mandarin into 8,000 stores. Those Big Gulps will mean plenty of exposure and product growth. This fountain placement follows a very successful Jarritos Mandarin Slurpee that was introduced last summer.
• The impact of cane sugar  ⁠— Anyone who has sold those little bottles of Mexican Coke knows that there are customers who are extremely loyal to the smooth taste of beverages made with cane sugar. Jarritos selections enjoy that same following.
• Surprising growth statistic ⁠— Hall said that 25% of the growth of Jarritos products is being driven by non-Hispanic customers. For Novamex, a very positive development.
• Strong distribution ⁠— Jarritos Craft Sodas now enjoys widespread national distribution through Vistar and Vendors Supply, making the product easy to source.

7-Eleven cited the social media buzz associated with the Jarritos Mandarin Slurpee as one reason why they added Jarritos as a fountain drink. You can expect that same buzz when you introduce Jarritos to your locations.

For operators looking for a product with growth opportunity, Jarritos Craft Sodas make sense.

For more information, contact:
Novamex Customer Service
(888) 668-2639
[email protected]