STRATEGY: Voss Secures $9 Mil in New Financing, Attains Breakeven, Hopes for Growth in 2010    Like other marketers of hi-end water, Voss over past 2 yrs confronted perfect storm of recession, bottled water backlash and waning traffic in lucrative restaurant and nightclub channel.  But mix of painful cost cuts – including announced departure of retail chief Joe Cardi (BBI, Nov 6) – and loyalty of key accounts has allowed Voss to stabilize market decline around 25-30% below peak, move into black on operating basis since summer and pull in needed tranche of new capital, its key execs told BBI on Mon.  “The cost cuts started in summer and we’ve been profitable since then” – for first time in nearly decade-long existence of Norwegian import, said ceo Knut Brundtland.  New capital comes via successful placement of convertible loan of 50 mil Norwegian kroner, or close to $9 mil, from mix of new and existing investors.  Discussion at Voss USA hq in NY included Knut, who also runs Voss Foundation, Philippe Roederer, newly elevated to prexy of Americas, and Cardi.

With US still accounting for nearly 95% of on-premise biz of largely on-premise brand, priorities have been to stop bleeding here – crucial milestone in securing new funding – while accelerating retail rollout, aided by new plastic packs that closely mimic look and feel of iconic glass bottles.  New bottles in 330-, 500- and 850-ml sizes offer economies such as full-wrap label vs on-glass printing, while new 850-ml size is far easier to grip than old 1-liter pack.  Distributors have greeted new packs with fair degree of enthusiasm.  Existing glass packs and new PET bottles are available to on-premise, where Knut said brand has begun growing again in past 2 mos.  Meanwhile, co claims, retail biz is up 10% as new packs broaden presence in market.  With co focusing primarily on NY, Fla, Chicago and best market, Southern Calif, new packs have been picked up by likes of Ralph’s, Albertson’s, Food Emporium, Jewel and Publix.  Line has been doing well in c-stores, Cardi said, and drug channel is next major target.  Current voids in DSD channel that co is looking to fill to support retailers like HEB include Northern Calif and Tex. 

As reported, with eye on rationalizing costs, co has consolidated jobs of on-premise chief Philippe Roederer and off-premise chief Joe Cardi under Roederer, as prexy of Americas.  Joe departs org after this week.  Co has promoted 4-yr vet and former Nestle exec Mark Zettle to vp retail sales.  Patrick Larkin, 3-yr vet who’d served as Northeast div mgr, has been promoted to vp East, with responsibility for entire eastern seaboard, on both on-premise and retail fronts.  Tho co denied reports in spring that brand’s youthful founder Ole Sandberg was on way out (BBI, May 4), he in fact did leave co several mos ago, tho he remains a shareholder.  

Tho brand is available on-premise in 47 countries, Norway just 2 weeks ago became only 2d market outside North America to get off-premise push – matter that drew headlines back home, given brand’s identity as rare Norway-produced consumer good that’s of interest to overseas consumers.  Canada has also begun retail push, and brand is looking to build general presence in markets like Middle East, China, Australia and Central America, with plastic pack just heading into int’l markets.

Brand has worked hard on its green and corporate responsibility cred.  Voss Foundation works to provide access to water in sub-Saharan Africa and to help educate girls liberated from time-consuming task of carrying water.  It commissioned Magnum agency photog Stuart Franklin to document its work in Mali’s Dogon region; resulting images have proved good fund-raising tool and will be focus of 4 events in core markets.  On green front, it’s worked to reduce impact thru full cycle from raw materials to disposal rather than stopping at manufacturing stage, as several rivals have.