The Competitive Landscape
Infusion or "Dosing" Caps Sold "On the Bottle" - Powdered Stick Packs - Liquid Concentrate Squirt Bottles - Other Infusion Caps That Are Sold "Off the Bottle"
Direct & Indirect Competition
We believe that the Flava Cap will represent a major improvement over current delivery systems for the custom beverage market. MiO, launched in 2011 as the first nationally marketed "liquid water enhancer", has rocketed out of the gate. Sales have doubled in 2012 to more than $200 million. Mio has already reached 12.28% share in the fruit-drink mix category, trailing only private label and Kool-Aid (also a Kraft brand). Although the category is relatively new, liquid flavor enhancers appear to be gaining significant traction among consumers and suppliers, including The Coca-Cola Co., which last year unveiled its Dasani Drops line, and Ecosentials LLC’s Vitamin
Squeeze Water Enhancers recently gained shelf space in Safeway stores nationwide.
The Infusion or “dosing” bottle cap segment is a new and emerging trend in the beverage industry. Infusion caps that are sold “on-the-bottle” have made an impact in the Value Added Water Market. In 2012, three of the top 10 selling Value Added Water products were infusion cap products. Ranking #8 is the current infusion cap leader, Activate Drinks. Following is #9 Vblast and #10 Karma Wellness Water. The interactive cap technology is marketed as a way to keep nutrients fresh and separate from the water in the bottle until consumption. If these fore mentioned companies attempted to sell their cap delivery system “off the bottle” or separately from the bottle of water, they would encounter the real risk that the consumer would purchase a bottle of water that their cap will not fit.
The most direct competition for Flava Cap is the “off-the-bottle” or stand alone infusion bottle caps. This group is comprised of about three other infusion caps. These direct competitors are 4C’s Cap-It, Tap-The-Cap and PowerCap.
The Flava Cap Advantage
The top key Flava Cap competitive advantage differentiators vs. all competition are:
•The Flava Cap is sold “off-the-bottle” - Retails $0.49
•The Flava Cap controls drink mix concentrate dosage
•The Flava Cap does not spill and stain (sanitary)
•The Flava Cap is easy to use – only Flava Cap releases the drink mix automatically without thumb or finger pressure
•The Flava Cap utilizes existing consumer behavior – it twists on like any normal bottle cap. This is due to our unique multi-thread and mechanism design
•The Flava Cap has a sports spout which allows the consumer to drink through cap and reseal without having to remove the cap – truly “on-the-go”
•The Flava Cap maintains potency of ingredients until time of consumption.
•The Flava Cap has low manufacturing costs