WEBVTT - Talking Rain's Klock: Sparkling Ice's Exponential Growth(Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg eleventh Rio to Washington,

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<v Speaker 1>d C. Bloomber to Boston, Bloomberg twelve hundreds to San Francisco,

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<v Speaker 1>around the globe the Bloomberg Radio Plus app and Bloomberg

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<v Speaker 1>dot Com. This is taking Stock. Coming up on taking Stock,

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<v Speaker 1>We're gonna take a look at the beverage industry. We've

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<v Speaker 1>got the president and the chief executive of Talking Rain

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<v Speaker 1>beverage company. They're based in Seattle. We're gonna talk about

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<v Speaker 1>what it takes to put a new beverage into the marketplace.

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<v Speaker 1>I love sodas without sugar, pamsh I'm very excited about this.

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<v Speaker 1>I'm also were excited to get the newsroom because ore

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<v Speaker 1>when Charlie Pett's there with the Bloomberg Business Flash and

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<v Speaker 1>I thank you very much. Kathleen Hayes, thank you, Pim Fox.

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<v Speaker 1>We are brought to you by Bentley University. What to

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<v Speaker 1>tying up the finances at Converse and managing asset. Allocations

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<v Speaker 1>the other countries that are within the EU, as well

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<v Speaker 1>as maybe some side deals that could get cut. Here,

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<v Speaker 1>what's gonna happen to the to the markets, and what's

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<v Speaker 1>gonna happen to the capital market system in general? And

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<v Speaker 1>gold up ten ten the ounce to twelve eighty six,

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<v Speaker 1>mobile payment service, Apple Pay will now work on websites,

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<v Speaker 1>two thousand eighty three, a drop of six tenths of

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<v Speaker 1>one percent. Three thirty two on Wall Street. Now, let's

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<v Speaker 1>take a look at other news from around the world

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<v Speaker 1>on Bloomberg Radio. Thank you, Charlie from the Bloomberg News Room.

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<v Speaker 1>I'm Oliver Rennick. This news update is brought to you

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<v Speaker 1>by the Jeep Grand Cherokee, the most awarded suv ever.

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<v Speaker 1>your local Jeep dealer. Today, President Obama offered condolences today

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<v Speaker 1>to the family of the Orlando nightclub victims. Our hearts

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<v Speaker 1>go out to the families of those who have been killed.

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<v Speaker 1>Our prayers go to those who have been wounded. Uh.

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<v Speaker 1>This is a devastating attack on all Americans. Mr Obama

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<v Speaker 1>says there's no clear evidence the Orlando shooter was directed

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<v Speaker 1>to conduct his attack or was part of a larger plot.

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<v Speaker 1>He says it appears the shooter was inspired by extremist

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<v Speaker 1>information disseminated over the internet. White House spokesperson Josh Ernest

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<v Speaker 1>Today says President Obama wants Congress to take action on

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<v Speaker 1>gun laws. I think the President is quite intensely frustrated

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<v Speaker 1>that we haven't seen the kind of congressional action that

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<v Speaker 1>we know would have an impact on the ability of

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<v Speaker 1>individuals to carry out these kinds of mass shootings. The

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<v Speaker 1>father of the gunman is speaking out after his son

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<v Speaker 1>killed forty nine people. Saddiq Matin says he doesn't understand

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<v Speaker 1>what caused his son to go on a bloody rampage.

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<v Speaker 1>He can, I'll tell you why why he didn't do

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<v Speaker 1>such act. This is the gayst the principle of me

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<v Speaker 1>and the whole family. City flags are flying at half

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<v Speaker 1>staff today and city Hall will be lit up in

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<v Speaker 1>the gay pride colors of the Rainbow and tribute to

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<v Speaker 1>the Orlando shooting victims. A memorial is set for this

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<v Speaker 1>evening at the Stone Wall In more than five anti

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<v Speaker 1>terrorism officers have been deployed around the city. Global News

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<v Speaker 1>twenty four hours a day, powered by our journalists in

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<v Speaker 1>more than a hundred fifty news bureaus around the world.

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<v Speaker 1>From the Bloomberg News Room, I'm Oliver Rennick, Charlie, and

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<v Speaker 1>we thank you and again recapping stock slore SMP five

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<v Speaker 1>dred index down twelve a drop of six tenths of one.

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<v Speaker 1>I'm Charlie Palatin. That's a Bloomberg business flash. You're listening

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<v Speaker 1>to taking Stock with Kathleen Hay and Pim Fox on

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<v Speaker 1>Bloomberg Radio. The beverage shelf is very, very crowded, from

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<v Speaker 1>some very sweet ones like Coca Cola and Pepsi to

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<v Speaker 1>a whole host of new, sparkling waters of all kinds.

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<v Speaker 1>So how do you build your business in an environment

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<v Speaker 1>like this? Well, Kevin Clark has done it pretty successfully

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<v Speaker 1>so far. He's president and CEO of Talking Rain Beverage Company,

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<v Speaker 1>and he's based out in the Seattle area. Kevin, welcome

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<v Speaker 1>to the show. Thank you very much. So Talking Rain

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<v Speaker 1>I've had your sodas. What do you say? I mean,

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<v Speaker 1>I think a lot of people to say, listen, man,

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<v Speaker 1>you know you get a club so that doesn't have sugar,

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<v Speaker 1>you put some fruit flavor in there, They're all the same.

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<v Speaker 1>What do you say makes talking rain different? Well, I

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<v Speaker 1>think one of the things that we work very hard

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<v Speaker 1>on is that everything from the color to the smell

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<v Speaker 1>to the flavor that's consistent with whatever the name of

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<v Speaker 1>the beverage is. And that is something that is very

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<v Speaker 1>difficult to do, and that's why it probably takes us

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<v Speaker 1>about two years just to develop a flavor, and something

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<v Speaker 1>we spend on awful lot of time on. Ultimately, consumers

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<v Speaker 1>want taste, and that's one thing we think we we

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<v Speaker 1>master very well. Kevin, just taking a look at some

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<v Speaker 1>research here, the non alcoholic beverage industry is a proxyly

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<v Speaker 1>a hundred and eighty billion dollars in the United States.

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<v Speaker 1>About thirty five billion of that is up for grabs

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<v Speaker 1>for small brands such as yourself. Explain how you go

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<v Speaker 1>head to head against larger brands such as Coca Cola,

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<v Speaker 1>such as those items from PepsiCo. How do you get

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<v Speaker 1>on the shelf and what does that do for your strategy. Well,

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<v Speaker 1>one of the things we were fortunate we saw some

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<v Speaker 1>white space. The sparkling water category was really being ignored.

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<v Speaker 1>Well we jumped into it. Uh. The two big brands

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<v Speaker 1>in this country did not have products in that space.

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<v Speaker 1>And so one of things that helps certainly jump try

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<v Speaker 1>don't try and go head to head too early, and

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<v Speaker 1>so we were able to get in there and grow

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<v Speaker 1>very rapidly, uh to get shelf space UH in an

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<v Speaker 1>area that was really pretty much ignored. Now that we're larger,

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<v Speaker 1>in the meantime, we've built a business where we have distributors,

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<v Speaker 1>we have business intelligence teams, marketing teams. UM. We've now

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<v Speaker 1>built the foundation of a company that's there to supported

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<v Speaker 1>everything from category management to you know, some true good

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<v Speaker 1>financing type of opportunities. So now we're able to operate

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<v Speaker 1>as a beverage company. And now that we're in that

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<v Speaker 1>mode and retailers are used to us, uh, it certainly

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<v Speaker 1>gives us the opportunity. Now staying to to toe, how

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<v Speaker 1>did you get into this business? Well, the company actually

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<v Speaker 1>was founded back in uh are excuse me, in seven

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<v Speaker 1>and our current owners, uh Don Klein and Larry Headner

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<v Speaker 1>came in originally as uh kind of angel investors. And

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<v Speaker 1>so there was a sparkling water business actually it's called

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<v Speaker 1>Talking Rain today and UM was just a very entrepreneurial

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<v Speaker 1>company and it was they saw things like Clearly Canadian

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<v Speaker 1>and some other sparkling brands that maybe we're earlier on

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<v Speaker 1>and I want to do similar things. But we really

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<v Speaker 1>didn't make a push nationally until two thousand ten, Kevin,

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<v Speaker 1>And why din't you could tell us the story how

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<v Speaker 1>you got into a market like Ireland and what the

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<v Speaker 1>reaction was, because I know you've told me the story previously,

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<v Speaker 1>the reaction from many of the retailers and the consumers

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<v Speaker 1>about getting into that market. Yeah, we actually went over

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<v Speaker 1>there and asked the retailers if they'd be interested in

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<v Speaker 1>the brand and were stunned at the reception that we

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<v Speaker 1>got from the retailers. And then in April we started

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<v Speaker 1>servicing the market and we're just blown away with how

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<v Speaker 1>fast and what the takeup was. And what we discovered

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<v Speaker 1>over in Ireland, for instance, is it's a very heavily

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<v Speaker 1>soda dominated market. You certainly don't see the huge breadth

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<v Speaker 1>of variety, uh, that you have in the US. I said,

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<v Speaker 1>we've seen that they've been a little bit more aggressive

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<v Speaker 1>over there on sugar taxes and and tackling some of

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<v Speaker 1>those things. So the consumers over there didn't have much choice,

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<v Speaker 1>and but it looks like they were ready, uh for

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<v Speaker 1>a new brand to come over there to start giving

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<v Speaker 1>them opportunity to get away from sugar. Well, I'm on

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<v Speaker 1>your bandwagon. You have been for many years, Kevin clock.

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<v Speaker 1>So this is a popular product in my household. How

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<v Speaker 1>do you grow? What's next? Well, we've still you know,

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<v Speaker 1>we've gotten very large and the grocery and mass in

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<v Speaker 1>the United States, but there's plenty of opportunities still inconvenience.

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<v Speaker 1>Most of the time, you should be about thirty of

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<v Speaker 1>your business should be in convenience, and we're eight percent

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<v Speaker 1>right now food services for instance, schools. We're one of

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<v Speaker 1>the products that actually can be sold at schools, which

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<v Speaker 1>is a great foundation for us. And we'll be in

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<v Speaker 1>schools and forty six of the fifty states by this fall.

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<v Speaker 1>So we've got plenty of play of room for our

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<v Speaker 1>base brand to grow and plus international now though, as

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<v Speaker 1>we have gotten a beverage company UH put together, we're

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<v Speaker 1>now starting to expand into adding UH potentially other brands

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<v Speaker 1>will come into the fold and certainly will continue to

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<v Speaker 1>grow line extensions of Sparkling Ice, so lots of room

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<v Speaker 1>to grow still. Kevin described the essential quality of the packaging,

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<v Speaker 1>particularly when it comes to the beverage industry. Well, and

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<v Speaker 1>you know, people forget, I think that consumers carry around

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<v Speaker 1>the bottles in their hands, and so the product beverages

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<v Speaker 1>tend to be more of a badge to somebody. So

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<v Speaker 1>it's it's what they want to be seen, and so

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<v Speaker 1>that's that's important. So it's gonna be something people are

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<v Speaker 1>willing to be seen with in our particular case, by

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<v Speaker 1>having the ability to see the liquid and the vibrancy

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<v Speaker 1>in terms of how it comes out, it looks refreshing.

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<v Speaker 1>So if you can, you know, you can make the

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<v Speaker 1>package really display who you are so the consumer doesn't

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<v Speaker 1>have to think about it. And in a particular case,

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<v Speaker 1>you know, we are zero calories, and so the consumer

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<v Speaker 1>likes holding something that's then it kind of reminds them

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<v Speaker 1>of being zero cowers. Beg your pardon, Kevin, go ahead,

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<v Speaker 1>alright to say the packaging is extremely important and conveying

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<v Speaker 1>the message of your brand. All right, thanks for conveying

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<v Speaker 1>your message. Kevin Clark is the president and the chief

0:10:41.280 --> 0:10:44.640
<v Speaker 1>executive of Talking Rain Beverage, a company. The product is

0:10:44.679 --> 0:10:48.080
<v Speaker 1>Sparkling Ice. They're based in Seattle. You can of course

0:10:48.120 --> 0:10:53.640
<v Speaker 1>follow them on Twitter at Sparkling Ice and Talking Rain.

0:10:54.080 --> 0:11:02.480
<v Speaker 1>You're listening to Taking Stock on Bloomberg Radio. The Apple

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<v Speaker 1>World Developers Conference has unveiled software that will allow its

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<v Speaker 1>voice activated personal assistance Sirie, to even order pizza. We're

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<v Speaker 1>going to talk about that coming up on Boomberg Radio.