1 00:00:03,200 --> 00:00:07,560 Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington, 2 00:00:07,640 --> 00:00:12,640 Speaker 1: d C. Bloomber to Boston, Bloomberg twelve hundreds to San Francisco, 3 00:00:12,760 --> 00:00:17,200 Speaker 1: Bloomberg nine to the Country's Julia General one nine and 4 00:00:17,320 --> 00:00:20,640 Speaker 1: around the globe the Bloomberg Radio Plus app and Bloomberg 5 00:00:20,640 --> 00:00:26,160 Speaker 1: dot Com. This is taking Stock. Coming up on taking Stock, 6 00:00:26,160 --> 00:00:28,720 Speaker 1: We're gonna take a look at the beverage industry. We've 7 00:00:28,760 --> 00:00:31,360 Speaker 1: got the president and the chief executive of Talking Rain 8 00:00:31,520 --> 00:00:34,840 Speaker 1: beverage company. They're based in Seattle. We're gonna talk about 9 00:00:34,880 --> 00:00:38,120 Speaker 1: what it takes to put a new beverage into the marketplace. 10 00:00:38,840 --> 00:00:42,680 Speaker 1: I love sodas without sugar, pamsh I'm very excited about this. 11 00:00:42,760 --> 00:00:44,960 Speaker 1: I'm also were excited to get the newsroom because ore 12 00:00:45,000 --> 00:00:47,199 Speaker 1: when Charlie Pett's there with the Bloomberg Business Flash and 13 00:00:47,280 --> 00:00:50,040 Speaker 1: I thank you very much. Kathleen Hayes, thank you, Pim Fox. 14 00:00:50,080 --> 00:00:52,440 Speaker 1: We are brought to you by Bentley University. What to 15 00:00:52,520 --> 00:00:56,640 Speaker 1: tying up the finances at Converse and managing asset. Allocations 16 00:00:56,640 --> 00:00:59,680 Speaker 1: of JP Morgan have in common a business degree from 17 00:00:59,720 --> 00:01:05,600 Speaker 1: ben Lee University. Because business is everywhere. Prepare here, Draft 18 00:01:05,720 --> 00:01:09,959 Speaker 1: Kings and fan Duel, the two biggest daily fantasy sports companies, 19 00:01:10,000 --> 00:01:12,880 Speaker 1: are in talks about a merger. This according to people 20 00:01:13,080 --> 00:01:18,040 Speaker 1: familiar with the situation. Investors in Draftking and fan Duel, 21 00:01:18,040 --> 00:01:20,240 Speaker 1: which are privately held, have been pushing for a tie 22 00:01:20,280 --> 00:01:22,880 Speaker 1: up for some time. According to the people, who asked 23 00:01:22,920 --> 00:01:27,280 Speaker 1: not to be identified because the discussions are private, gold 24 00:01:27,360 --> 00:01:30,360 Speaker 1: climbing to the highest in four weeks is uncertainty amounts 25 00:01:30,400 --> 00:01:33,480 Speaker 1: over whether the UK will exit the European Union, and 26 00:01:33,560 --> 00:01:37,199 Speaker 1: traders price in zero odds the Federal Reserve will raise 27 00:01:37,319 --> 00:01:41,920 Speaker 1: rates this week. Todd Colvin is with Ambrosino Brothers in Chicago, 28 00:01:42,120 --> 00:01:43,880 Speaker 1: and look at what's happening in Europe. It's now a 29 00:01:43,920 --> 00:01:47,080 Speaker 1: Brexit trade and the after fallout not only the vote, 30 00:01:47,080 --> 00:01:48,920 Speaker 1: but what's gonna happen if they stay in, And what's 31 00:01:48,920 --> 00:01:51,760 Speaker 1: gonna happen if they decide to leave. The ramifications of 32 00:01:51,800 --> 00:01:54,240 Speaker 1: the other countries that are within the EU, as well 33 00:01:54,280 --> 00:01:56,520 Speaker 1: as maybe some side deals that could get cut. Here, 34 00:01:56,560 --> 00:01:58,480 Speaker 1: what's gonna happen to the to the markets, and what's 35 00:01:58,480 --> 00:02:00,880 Speaker 1: gonna happen to the capital market system in general? And 36 00:02:01,040 --> 00:02:03,520 Speaker 1: gold up ten ten the ounce to twelve eighty six, 37 00:02:03,560 --> 00:02:06,919 Speaker 1: a gain there of eight tenths of one percent. Apple's 38 00:02:07,040 --> 00:02:11,040 Speaker 1: mobile payment service, Apple Pay will now work on websites, 39 00:02:11,560 --> 00:02:14,400 Speaker 1: a long awaited feature that will pit the company directly 40 00:02:14,440 --> 00:02:18,680 Speaker 1: against companies such as PayPal Holdings. PayPal down two tenths 41 00:02:18,680 --> 00:02:21,920 Speaker 1: of one percent. Apple is down one point two percent. 42 00:02:22,560 --> 00:02:24,880 Speaker 1: The ten year up seven thirty seconds, Zeal there one 43 00:02:24,880 --> 00:02:28,280 Speaker 1: point six one percent, Crude oil down thirty one cents, 44 00:02:28,360 --> 00:02:30,959 Speaker 1: forty eight seventy six of arrel down six tenths of 45 00:02:31,040 --> 00:02:34,480 Speaker 1: one percent, SMP five hundred in next down twelve to 46 00:02:34,560 --> 00:02:37,120 Speaker 1: two thousand eighty three, a drop of six tenths of 47 00:02:37,200 --> 00:02:40,720 Speaker 1: one percent. Three thirty two on Wall Street. Now, let's 48 00:02:40,720 --> 00:02:42,680 Speaker 1: take a look at other news from around the world 49 00:02:42,680 --> 00:02:46,880 Speaker 1: on Bloomberg Radio. Thank you, Charlie from the Bloomberg News Room. 50 00:02:46,880 --> 00:02:49,280 Speaker 1: I'm Oliver Rennick. This news update is brought to you 51 00:02:49,320 --> 00:02:52,320 Speaker 1: by the Jeep Grand Cherokee, the most awarded suv ever. 52 00:02:52,600 --> 00:02:54,800 Speaker 1: The Grand Cherokee continues to raise the bar with its 53 00:02:54,880 --> 00:02:58,960 Speaker 1: luxurious interior in legendary four by four capability driving at 54 00:02:58,960 --> 00:03:02,400 Speaker 1: your local Jeep dealer. Today, President Obama offered condolences today 55 00:03:02,400 --> 00:03:05,320 Speaker 1: to the family of the Orlando nightclub victims. Our hearts 56 00:03:05,560 --> 00:03:09,280 Speaker 1: go out to the families of those who have been killed. 57 00:03:09,960 --> 00:03:13,160 Speaker 1: Our prayers go to those who have been wounded. Uh. 58 00:03:13,200 --> 00:03:18,359 Speaker 1: This is a devastating attack on all Americans. Mr Obama 59 00:03:18,440 --> 00:03:21,200 Speaker 1: says there's no clear evidence the Orlando shooter was directed 60 00:03:21,200 --> 00:03:23,880 Speaker 1: to conduct his attack or was part of a larger plot. 61 00:03:24,200 --> 00:03:26,640 Speaker 1: He says it appears the shooter was inspired by extremist 62 00:03:26,639 --> 00:03:30,560 Speaker 1: information disseminated over the internet. White House spokesperson Josh Ernest 63 00:03:30,600 --> 00:03:33,880 Speaker 1: Today says President Obama wants Congress to take action on 64 00:03:34,000 --> 00:03:37,480 Speaker 1: gun laws. I think the President is quite intensely frustrated 65 00:03:37,840 --> 00:03:41,000 Speaker 1: that we haven't seen the kind of congressional action that 66 00:03:41,040 --> 00:03:43,800 Speaker 1: we know would have an impact on the ability of 67 00:03:43,800 --> 00:03:46,560 Speaker 1: individuals to carry out these kinds of mass shootings. The 68 00:03:46,600 --> 00:03:49,040 Speaker 1: father of the gunman is speaking out after his son 69 00:03:49,200 --> 00:03:52,960 Speaker 1: killed forty nine people. Saddiq Matin says he doesn't understand 70 00:03:52,960 --> 00:03:55,400 Speaker 1: what caused his son to go on a bloody rampage. 71 00:03:56,080 --> 00:03:59,560 Speaker 1: He can, I'll tell you why why he didn't do 72 00:04:00,040 --> 00:04:03,840 Speaker 1: such act. This is the gayst the principle of me 73 00:04:04,520 --> 00:04:07,520 Speaker 1: and the whole family. City flags are flying at half 74 00:04:07,560 --> 00:04:09,840 Speaker 1: staff today and city Hall will be lit up in 75 00:04:09,840 --> 00:04:11,960 Speaker 1: the gay pride colors of the Rainbow and tribute to 76 00:04:11,960 --> 00:04:14,880 Speaker 1: the Orlando shooting victims. A memorial is set for this 77 00:04:14,920 --> 00:04:17,839 Speaker 1: evening at the Stone Wall In more than five anti 78 00:04:17,920 --> 00:04:21,360 Speaker 1: terrorism officers have been deployed around the city. Global News 79 00:04:21,400 --> 00:04:24,280 Speaker 1: twenty four hours a day, powered by our journalists in 80 00:04:24,320 --> 00:04:26,559 Speaker 1: more than a hundred fifty news bureaus around the world. 81 00:04:26,920 --> 00:04:30,880 Speaker 1: From the Bloomberg News Room, I'm Oliver Rennick, Charlie, and 82 00:04:31,040 --> 00:04:34,279 Speaker 1: we thank you and again recapping stock slore SMP five 83 00:04:34,520 --> 00:04:37,240 Speaker 1: dred index down twelve a drop of six tenths of one. 84 00:04:38,040 --> 00:04:43,360 Speaker 1: I'm Charlie Palatin. That's a Bloomberg business flash. You're listening 85 00:04:43,360 --> 00:04:46,359 Speaker 1: to taking Stock with Kathleen Hay and Pim Fox on 86 00:04:46,400 --> 00:04:52,520 Speaker 1: Bloomberg Radio. The beverage shelf is very, very crowded, from 87 00:04:52,760 --> 00:04:56,480 Speaker 1: some very sweet ones like Coca Cola and Pepsi to 88 00:04:57,040 --> 00:05:00,520 Speaker 1: a whole host of new, sparkling waters of all kinds. 89 00:05:00,520 --> 00:05:04,279 Speaker 1: So how do you build your business in an environment 90 00:05:04,360 --> 00:05:07,279 Speaker 1: like this? Well, Kevin Clark has done it pretty successfully 91 00:05:07,320 --> 00:05:12,120 Speaker 1: so far. He's president and CEO of Talking Rain Beverage Company, 92 00:05:12,200 --> 00:05:15,919 Speaker 1: and he's based out in the Seattle area. Kevin, welcome 93 00:05:15,920 --> 00:05:18,680 Speaker 1: to the show. Thank you very much. So Talking Rain 94 00:05:19,320 --> 00:05:21,560 Speaker 1: I've had your sodas. What do you say? I mean, 95 00:05:21,839 --> 00:05:23,320 Speaker 1: I think a lot of people to say, listen, man, 96 00:05:23,360 --> 00:05:25,400 Speaker 1: you know you get a club so that doesn't have sugar, 97 00:05:25,440 --> 00:05:27,520 Speaker 1: you put some fruit flavor in there, They're all the same. 98 00:05:27,560 --> 00:05:30,359 Speaker 1: What do you say makes talking rain different? Well, I 99 00:05:30,360 --> 00:05:32,800 Speaker 1: think one of the things that we work very hard 100 00:05:32,839 --> 00:05:36,480 Speaker 1: on is that everything from the color to the smell 101 00:05:36,600 --> 00:05:39,280 Speaker 1: to the flavor that's consistent with whatever the name of 102 00:05:39,320 --> 00:05:41,440 Speaker 1: the beverage is. And that is something that is very 103 00:05:41,480 --> 00:05:44,240 Speaker 1: difficult to do, and that's why it probably takes us 104 00:05:44,240 --> 00:05:47,080 Speaker 1: about two years just to develop a flavor, and something 105 00:05:47,120 --> 00:05:49,680 Speaker 1: we spend on awful lot of time on. Ultimately, consumers 106 00:05:49,680 --> 00:05:51,960 Speaker 1: want taste, and that's one thing we think we we 107 00:05:52,080 --> 00:05:55,000 Speaker 1: master very well. Kevin, just taking a look at some 108 00:05:55,080 --> 00:06:00,360 Speaker 1: research here, the non alcoholic beverage industry is a proxyly 109 00:06:00,400 --> 00:06:04,120 Speaker 1: a hundred and eighty billion dollars in the United States. 110 00:06:04,560 --> 00:06:07,919 Speaker 1: About thirty five billion of that is up for grabs 111 00:06:08,120 --> 00:06:12,640 Speaker 1: for small brands such as yourself. Explain how you go 112 00:06:12,800 --> 00:06:16,400 Speaker 1: head to head against larger brands such as Coca Cola, 113 00:06:16,520 --> 00:06:19,360 Speaker 1: such as those items from PepsiCo. How do you get 114 00:06:19,400 --> 00:06:23,760 Speaker 1: on the shelf and what does that do for your strategy. Well, 115 00:06:23,800 --> 00:06:25,440 Speaker 1: one of the things we were fortunate we saw some 116 00:06:25,520 --> 00:06:29,280 Speaker 1: white space. The sparkling water category was really being ignored. 117 00:06:29,800 --> 00:06:32,720 Speaker 1: Well we jumped into it. Uh. The two big brands 118 00:06:32,720 --> 00:06:35,000 Speaker 1: in this country did not have products in that space. 119 00:06:35,520 --> 00:06:37,720 Speaker 1: And so one of things that helps certainly jump try 120 00:06:37,800 --> 00:06:40,000 Speaker 1: don't try and go head to head too early, and 121 00:06:40,080 --> 00:06:42,480 Speaker 1: so we were able to get in there and grow 122 00:06:42,600 --> 00:06:46,320 Speaker 1: very rapidly, uh to get shelf space UH in an 123 00:06:46,320 --> 00:06:49,799 Speaker 1: area that was really pretty much ignored. Now that we're larger, 124 00:06:50,000 --> 00:06:53,560 Speaker 1: in the meantime, we've built a business where we have distributors, 125 00:06:53,640 --> 00:06:57,720 Speaker 1: we have business intelligence teams, marketing teams. UM. We've now 126 00:06:57,760 --> 00:07:00,599 Speaker 1: built the foundation of a company that's there to supported 127 00:07:01,279 --> 00:07:06,040 Speaker 1: everything from category management to you know, some true good 128 00:07:06,080 --> 00:07:09,720 Speaker 1: financing type of opportunities. So now we're able to operate 129 00:07:09,720 --> 00:07:11,280 Speaker 1: as a beverage company. And now that we're in that 130 00:07:11,400 --> 00:07:16,200 Speaker 1: mode and retailers are used to us, uh, it certainly 131 00:07:16,200 --> 00:07:18,960 Speaker 1: gives us the opportunity. Now staying to to toe, how 132 00:07:19,000 --> 00:07:21,920 Speaker 1: did you get into this business? Well, the company actually 133 00:07:21,960 --> 00:07:26,280 Speaker 1: was founded back in uh are excuse me, in seven 134 00:07:26,640 --> 00:07:29,720 Speaker 1: and our current owners, uh Don Klein and Larry Headner 135 00:07:29,840 --> 00:07:34,240 Speaker 1: came in originally as uh kind of angel investors. And 136 00:07:34,320 --> 00:07:36,880 Speaker 1: so there was a sparkling water business actually it's called 137 00:07:36,880 --> 00:07:40,480 Speaker 1: Talking Rain today and UM was just a very entrepreneurial 138 00:07:40,520 --> 00:07:43,880 Speaker 1: company and it was they saw things like Clearly Canadian 139 00:07:43,920 --> 00:07:47,760 Speaker 1: and some other sparkling brands that maybe we're earlier on 140 00:07:47,960 --> 00:07:50,320 Speaker 1: and I want to do similar things. But we really 141 00:07:50,320 --> 00:07:53,760 Speaker 1: didn't make a push nationally until two thousand ten, Kevin, 142 00:07:53,800 --> 00:07:55,320 Speaker 1: And why din't you could tell us the story how 143 00:07:55,360 --> 00:07:58,560 Speaker 1: you got into a market like Ireland and what the 144 00:07:58,600 --> 00:08:02,000 Speaker 1: reaction was, because I know you've told me the story previously, 145 00:08:02,040 --> 00:08:05,800 Speaker 1: the reaction from many of the retailers and the consumers 146 00:08:05,840 --> 00:08:09,120 Speaker 1: about getting into that market. Yeah, we actually went over 147 00:08:09,120 --> 00:08:11,240 Speaker 1: there and asked the retailers if they'd be interested in 148 00:08:11,240 --> 00:08:12,960 Speaker 1: the brand and were stunned at the reception that we 149 00:08:13,080 --> 00:08:16,360 Speaker 1: got from the retailers. And then in April we started 150 00:08:16,440 --> 00:08:19,000 Speaker 1: servicing the market and we're just blown away with how 151 00:08:19,720 --> 00:08:22,320 Speaker 1: fast and what the takeup was. And what we discovered 152 00:08:22,320 --> 00:08:25,840 Speaker 1: over in Ireland, for instance, is it's a very heavily 153 00:08:25,880 --> 00:08:29,239 Speaker 1: soda dominated market. You certainly don't see the huge breadth 154 00:08:29,240 --> 00:08:32,560 Speaker 1: of variety, uh, that you have in the US. I said, 155 00:08:32,720 --> 00:08:35,320 Speaker 1: we've seen that they've been a little bit more aggressive 156 00:08:35,320 --> 00:08:38,720 Speaker 1: over there on sugar taxes and and tackling some of 157 00:08:38,760 --> 00:08:41,840 Speaker 1: those things. So the consumers over there didn't have much choice, 158 00:08:41,840 --> 00:08:44,480 Speaker 1: and but it looks like they were ready, uh for 159 00:08:44,520 --> 00:08:47,280 Speaker 1: a new brand to come over there to start giving 160 00:08:47,320 --> 00:08:50,200 Speaker 1: them opportunity to get away from sugar. Well, I'm on 161 00:08:50,320 --> 00:08:52,800 Speaker 1: your bandwagon. You have been for many years, Kevin clock. 162 00:08:52,880 --> 00:08:56,600 Speaker 1: So this is a popular product in my household. How 163 00:08:56,600 --> 00:08:59,560 Speaker 1: do you grow? What's next? Well, we've still you know, 164 00:08:59,600 --> 00:09:03,920 Speaker 1: we've gotten very large and the grocery and mass in 165 00:09:03,960 --> 00:09:07,719 Speaker 1: the United States, but there's plenty of opportunities still inconvenience. 166 00:09:08,120 --> 00:09:09,920 Speaker 1: Most of the time, you should be about thirty of 167 00:09:09,920 --> 00:09:12,000 Speaker 1: your business should be in convenience, and we're eight percent 168 00:09:12,120 --> 00:09:15,920 Speaker 1: right now food services for instance, schools. We're one of 169 00:09:15,960 --> 00:09:17,839 Speaker 1: the products that actually can be sold at schools, which 170 00:09:17,840 --> 00:09:19,600 Speaker 1: is a great foundation for us. And we'll be in 171 00:09:20,000 --> 00:09:22,640 Speaker 1: schools and forty six of the fifty states by this fall. 172 00:09:22,800 --> 00:09:25,600 Speaker 1: So we've got plenty of play of room for our 173 00:09:25,600 --> 00:09:28,679 Speaker 1: base brand to grow and plus international now though, as 174 00:09:28,800 --> 00:09:32,040 Speaker 1: we have gotten a beverage company UH put together, we're 175 00:09:32,080 --> 00:09:37,319 Speaker 1: now starting to expand into adding UH potentially other brands 176 00:09:37,320 --> 00:09:40,040 Speaker 1: will come into the fold and certainly will continue to 177 00:09:40,080 --> 00:09:43,240 Speaker 1: grow line extensions of Sparkling Ice, so lots of room 178 00:09:43,280 --> 00:09:47,960 Speaker 1: to grow still. Kevin described the essential quality of the packaging, 179 00:09:48,040 --> 00:09:52,200 Speaker 1: particularly when it comes to the beverage industry. Well, and 180 00:09:52,600 --> 00:09:56,199 Speaker 1: you know, people forget, I think that consumers carry around 181 00:09:56,679 --> 00:10:00,480 Speaker 1: the bottles in their hands, and so the product beverages 182 00:10:00,520 --> 00:10:03,280 Speaker 1: tend to be more of a badge to somebody. So 183 00:10:03,480 --> 00:10:05,360 Speaker 1: it's it's what they want to be seen, and so 184 00:10:05,400 --> 00:10:07,840 Speaker 1: that's that's important. So it's gonna be something people are 185 00:10:07,880 --> 00:10:10,040 Speaker 1: willing to be seen with in our particular case, by 186 00:10:10,080 --> 00:10:12,400 Speaker 1: having the ability to see the liquid and the vibrancy 187 00:10:12,480 --> 00:10:15,760 Speaker 1: in terms of how it comes out, it looks refreshing. 188 00:10:16,200 --> 00:10:17,760 Speaker 1: So if you can, you know, you can make the 189 00:10:17,800 --> 00:10:21,040 Speaker 1: package really display who you are so the consumer doesn't 190 00:10:21,040 --> 00:10:23,040 Speaker 1: have to think about it. And in a particular case, 191 00:10:23,440 --> 00:10:26,040 Speaker 1: you know, we are zero calories, and so the consumer 192 00:10:26,120 --> 00:10:28,280 Speaker 1: likes holding something that's then it kind of reminds them 193 00:10:28,360 --> 00:10:33,160 Speaker 1: of being zero cowers. Beg your pardon, Kevin, go ahead, 194 00:10:33,600 --> 00:10:36,280 Speaker 1: alright to say the packaging is extremely important and conveying 195 00:10:36,280 --> 00:10:38,680 Speaker 1: the message of your brand. All right, thanks for conveying 196 00:10:38,760 --> 00:10:41,240 Speaker 1: your message. Kevin Clark is the president and the chief 197 00:10:41,280 --> 00:10:44,640 Speaker 1: executive of Talking Rain Beverage, a company. The product is 198 00:10:44,679 --> 00:10:48,080 Speaker 1: Sparkling Ice. They're based in Seattle. You can of course 199 00:10:48,120 --> 00:10:53,640 Speaker 1: follow them on Twitter at Sparkling Ice and Talking Rain. 200 00:10:54,080 --> 00:11:02,480 Speaker 1: You're listening to Taking Stock on Bloomberg Radio. The Apple 201 00:11:02,600 --> 00:11:07,319 Speaker 1: World Developers Conference has unveiled software that will allow its 202 00:11:07,400 --> 00:11:10,960 Speaker 1: voice activated personal assistance Sirie, to even order pizza. We're 203 00:11:11,000 --> 00:11:13,400 Speaker 1: going to talk about that coming up on Boomberg Radio.