Little bottle, big splash

Calling it the firm’s biggest beverage introduction in a decade, Kraft Foods executives talked about their new MiO concentrated flavoring in the same breath as their power brands at February’s Consumer Analyst Group of New York (CAGNY) conference, weeks before the tiny bottles began appearing on store shelves.

Concentrated flavor in a go-anywhere bottle is the proposition of MiO, Kraft’s new liquid beverage enhancer. Source: Kraft Foods Inc.

The 1.62-oz. bottle, shaped like a water drop and outfitted with a spill-proof cap, is small enough to win a TSA agent’s approval. The no-calorie contents are squeezed into water to create a flavored drink. With a suggested serving size of 2ml, each bottle sold at the suggested retail price of $3.99 contains enough liquid for 24 servings, or less than 17 cents per 8-oz. serving.

Of course, people can squeeze as much of the flavoring into a glass as they like, and that customization is central to MiO’s positioning. But the six flavor options compete with the stylish, palm-sized bottle for attention at the point of sale.

While Kraft’s CAGNY presentation focused on the company’s established stars, CEO Irene Rosenfeld might have been thinking of MiO’s future contributions when she said, “We’ve doubled our presence in fast-growing, high-margin, instant-consumption channels.”

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