Winds of change seem to be gusting lately among major food mfrs. Latest examples: Kraft Foods Group is ditching high-fructose corn syrup from its ubiquitous Capri Sun kids bev line, even as Nestle USA has said it's eliminating artificial flavors and colors from its chocolate candy items. Both seem to be reacting to mounting evidence that such ingredients are alienating American consumers: Nielsen 2014 Global Health & Wellness Survey cited by Nestle USA indicates that 60%+ of Americans say that having no artificial colors or flavors is important to their food purchase decisions. No initial word from either co on whether changes will affect pricing at shelf. Move comes as Big Three soda makers continue to take tentative steps into replacing HFCS with cane sugar or stevia in some of their products, while hoping for more decisive breakthrough down road.

Capri Sun move - paralleled by move to replace sucralose with stevia as sweetener in sibling Roarin Waters lower-calorie line - follows incremental moves over past year to remind parents that line has never employed artificial preservatives, colors or flavors, and has added clear bottom to pouch so it's easier to detect instances of mold growth. Latest move reps return to original formula devised in Germany in 1969, in response to input from parents, Greg Guidotti, Kraft's sr dir for RTD bevs, told MediaPost. "We want to be in line with the product's [all-natural] original promise," he said. Reformulation has also slashed 10 calories per 6-oz serving, knocking calorie count down to 50. Message will be reinforced on revamped outer packaging, and also via TV campaign due in Apr from agency McGarry Bowen Chicago.

Nestle USA, meanwhile, said this morning it plans to remove artificial flavors and colors from its chocolate candy items by year-end, change that will affect 250+ items across 10 brands including Butterfinger, Crunch and Baby Ruth. "We know that candy consumers are interested in broader food trends around fewer artificial ingredients," said Doreen Ida, prexy of Nestle USA Confections & Snacks. "As we thought about what this means for our candy brands, our first step has been to remove artificial flavors and colors without affecting taste or increasing the price. We're excited to be the first major US candy manufacturer to make this commitment." Changes will require such moves as replacing vanillin with natural vanilla flavor in Crunch, or replacing Red 40 and Yellow 5 in Butterfinger with annatto, sourced from seeds found in fruit of achiote tree.

Kroger's 110-store Fry's Markets chain in Ariz just got a big protein boost. For protein-based Nu Aquos sports drink line, entry there represents first move into Kroger banner, in anticipation for further such entries down road, said founder Chuck Walkley, who operates via New Whey Nutrition in Fla. Launch will be backed by in-store and social media campaign, as well as sampling another activities. Brand's footprint by now includes Hayden/Young's market in Idaho, 100 stores in Albertson's Intermountain div, and Associated Food Stores around NY. Fry's win is closer to home for revived Mix1 brand, now based in Scottsdale, Ariz. "Our goal has always been to begin shipping the new and improved Mix1 product into grocery stores first quarter of 2015," said Cameron Robb, prexy/ceo of Mix1 Life.  

WhiteWave Foods reported 34% revenue gain to $911 mil in 4th qtr, and matched analysts' estimates for 27 cents earnings per share for qtr. Excluding acquisitions of Earthbound Farm and So Delicious brands during qtr, White Wave revs grew 11% to $753 mil. For full yr 2014, WWAV revs increased 35% to $3.4 bil. Net income was up 13% to $44 mil on adjusted basis in 4th qtr and was up 31% to $169 mil for 2014. Q4 results "were a very strong close to a record year," said chmn/ceo Gregg Engles." We generated robust organic growth driven by outstanding performances across all our legacy businesses," he added.

At WWAV's Americas Plant-Based Foods and Beverages unit, which includes Silk family of brands and So Delicious, sales surged 21% in Q4 and 15% for full year. At Coffee Creamers & Beverages, which include International Delight and Dunkin Donuts creamers, sales rose 11% in qtr and 8% for full yr. Co promised "robust innovation pipeline planned for 2015," including expansion of flavors for Int'l Delight Macchiato brand. Strength of Horizon Organic milk brand helped lift WWAV's Premium Dairy unit sales 12% in Q4 and 11% for full yr 2014. "Sales were primarily driven by price increases" implemented over past yr along with "low-single-digit volume growth." "Demand for organic milk" remains at "all-time high" and co anticipates growth will once again be driven by pricing in 2015.  

One might think that name, package graphics and other cues wouldn't leave much doubt in consumers' minds about provenance of Icelandic Glacial Water. Turns out, research showed, shoppers don't believe it's really from Iceland, just as they don't believe Fiji Water is from Fiji. So Icelandic Water Holdings is doing a reset this year, dialing back more lifestyle-oriented "Source of an Epic Life" campaign it tested last year in favor of fundamental emphasis on its country of origin. Idea, said N Amer ceo Reza Mirza, is "to speak to the skepticism that it really is from Iceland and establish the source, that we come from a real place," the Olfus Springs in Iceland.

Tho revamped positioning has been trickling out to market since last fall, it got its most emphatic push over past week or so, with debut of outdoor campaign in South Fla that heralds brand's new theme: "Discover Iceland's Greatest Natural Resource," backed by spectacular photography of country's scenic beauty. First effort under Mirza, it will migrate to 2 other key markets, LA and NY, this coming spring and summer, including extensive subway buy, said cofounder Kristjan Olafsson. Brand's Web site is similarly steeped in breathtaking outdoor footage from Iceland.

Brand also is finally ready to make multipacks a key part of mix, adding 6-packs of 1-liter bottles and half-liter bottles toward end of Q1, befitting brand that claims to be 4th-largest imported bottled water per point of distribution. Icelandic Glacial reaches stores primarily via distributor network of Anheuser-Busch, which holds minority stake in co.

Effort returns brand to paid media, via agency of record brought into mix by Mirza's team, McFadden/Gavender of Tucson, Ariz. Also in agency mix are social media specialist Manifest Digital, with whom Mirza worked while at Activate Drinks, and pr shop Bowman Communications.

As for "Epic Life," devised by former agency Team One, that remains in background, on bottle's back label, but essentially, "we were running before we could walk," Mirza concluded. Added Olafsson: "For a company our size, it was too big a statement." Another lesser theme is fact that brand is naturally alkaline (coming in just under pH of 9), attested to on packaging and Web site but not emphasized in consumer messaging. And co continues to remind consumers that its production operations in Iceland have long been carbon-neutral.  

West Coast port congestion stemming from labor showdown has begun to bite bev biz, at time consultant Kurt Salmon is estimating that snarl could cost retailers as much as $7 bil across all categories of merchandise this year. Issue has rippled out to affect key ingredients, packages and finished goods, and could even tilt competitive balance a bit between brands playing in same segments via different sourcing strategies: Coconut water leader Vita Coco, for instance, has greater exposure to problem than Zico, even as bottled water player Fiji brings all product in via Pacific Ocean while Scandinavian challengers like Voss or Icelandic Glacial rely on Atlantic ports.

Situation is fluid, with contract talks continuing between dockworkers and port terminal operators, but even resolution soon will have exacted steep cost on commerce. "Recent earnings reports make clear that port issues are already causing headwinds for retailers, and they're bracing for gales," Frank Layo, retail supply chain strategist for Kurt Salmon, told Chain Store Age mag. "Our clients who are able have already begun to shift shipments to East Coast ports, or upgrade them to hit delivery dates. They're laying out capital to buy and hold extra inventory to carry them through dry periods." That was confirmed by Vita Coco cofounder Mike Kirban, who's highly dependent on liquid sourced in Asia that travels across Pacific. Situation is "costing us a lot of money moving product from the East Coast and we have a ton of product stuck," he readily acknowledged. "Fact that everything we do is imported finished goods, we get hit hard. We hope to avoid summer out-of-stocks but it's a possibility and the cost to avoid them is significant." By contrast, much of Zico production is believed to occur in or near US. Similar situation is unfolding in bottled water, where essentially all of Fiji's production travels Pacific shipping lanes, in contrast to rivals like Evian and Icelandic Glacial that travel across Atlantic.

Packaging broker Michael Zuckerman of Zuckerman Honickman said issue was affecting his clients in variety of ways. "We can get stuff out of port but are delayed at Customs," he said. Some items out of China have seen shipping time stretch from normal 30 days to 6 to 8 weeks. Glass bottles have been snagged and, while plastic bottles usually are blown in US, plastic lids and caps have also been snagged.

Consultants like Layo are predicting issue, however it plays out, will have major influence on how biz is done down the line. "We're going to see more near-shoring," he told Chain Store Age. "We may even see more US manufacturing. This congestion is a tipping point for the retail industry, and the issues are not going to go away even after labor negotiations."  

In echo of 4th-quarter tallies from Coca-Cola and PepsiCo, Dr Pepper Snapple Group seemed to weather tuff economic climate and foreign currency fluctuations fairly well, as net sales edged up 3% to $1.51 bil and operating income slipped 3% to $256 mil. For full year, net sales rose 2% to $6.12 bil and operating income rose 13% to $1.18 bil.

Relative to rivals, CSDs turned in strong performance, scoring 2% gain in bottler case sales. Peñafiel volume increased 17% and Core 4 brands rose 3% thanks to high-single-digit increase in Canada Dry and low-single-digit increases in Sunkist soda and A&W, partly offset by low-single-digit decline in 7 Up. Schweppes rose 10%, and Crush declined mid-single-digits. Dr Pepper volume was flat.

Noncarbs rose a lesser 1%. Snapple grew 4%, thanks to tilt to Snapple Premium, up mid-single-digits, as co eased off on value products. Clamato volume rose 9%. Juices continued soft, with Hawaiian Punch off 4% and Mott's off 2% (tho issue was lower sauce volumes, not bevs). Cfo Marty Ellen also tipped hat to contribution of outside brands that have performed well within DPS system: Fiji Water, Vita Coco Coconut Water and Bai coffee-fruit bevs.

Among marketing initiatives outlined by ceo Larry Young, DPS will expand test of its naturally sweetened CSDs to 3 more regional markets, even as seeks to play on Snapple's heritage by dialing up campaign dubbed "Born in NY, Made for Everyone" that features both everyday types and celebs. With diet CSDs showing particular softness, co also will dedicate national campaign to Diet Dr Pepper, concluding it's not enough to include it in broader Dr Pepper brand campaigns.

Packaging Diversity to Grow On packaging front, it will indulge more in glass-bottle CSDs and add pouch format to offerings of Hawaiian Punch, playing more directly in key format for Capri Sun. Other less-conventional packs like 12-oz slim cans will get broader role. Asked by one analyst why co didn't score as well in price/mix gains as its 2 larger rivals, Young attributed shortfall in part to DPS' lesser participation in smaller portion-control packs that have enabled KO and PEP to get more pricing per oz out of their consumers. (Where its brands move thru Coke or Pepsi bottlers, it does enjoy some of those packages.) Later in call, tho, he didn't convey any particular urgency on matter, assuring listeners that "we feel pretty good that we have what consumers want out there" packaging-wise.

Ten Platform Doing What Expected, Despite Declines As usual, Young made case that co's mid-calorie Ten CSD platform is drawing back consumers who exited CSDs for juices and sports drinks. "All the results we're looking at tell us we're still on the right track," he avowed. But there were signs of continued skepticism from audience. One analyst, saying he found Young's persona as "eternal optimist" appealing, pointed to Dr Pepper Ten that's been declining in mid-teens in volume. Young assured him that bottlers "are seeing the importance of Ten" and buying into programming for 2015. "It's not growing through the roof but doing what it was expected to do," he maintained.

Array of Efforts Target Latinos DPS continues to work to cultivate country's growing cohort of Hispanic consumers thru such efforts as sponsorship of Latin Grammies, electronic dance music tie-ins, new package graphics on 7 Up targeting Latino millennial consumers and addition of futbol-themed Summer of Soccer promo featuring athletes like US goalkeeper Tim Howard. This year also will see formal rollout of Penafiel sparkling-water brand in form imported from Mexico. Young told account of visit to Latino store where owner derided Penafiel with US packaging as "fakes and consumers knew it."  

At time they exited cap-dispensed Activate brand, a one-time high-flier that's pretty much sputtered out by now, LA-based founder Anders Eisner and marketing chief Jesse Merrill indicated they were planning new venture together. Turns out, like some others in bevs, they've made migration to food side, with organic cottage cheese brand called Good Culture. "We were tired of searching for great-tasting cottage cheese that wasn't loaded with thickeners, stabilizers, hormones and high-fructose corn syrup sweetened flavors, so we decided to make our own," explains Jesse, former marketing exec at Honest Tea. Eisner is son of former Disney chief Michael Eisner, key investor in Activate. Brand will be on display at Natural Products Expo West in early Mar.  

Japanese tea giant Ito En highlighted its Culinary Matcha at recent Fancy Food Show, seeking to build awareness for traditional ingredient by pushing cooking, baking, smoothie and even barbecue-rub applications in foodie world. New format for ingredient takes spot under Matcha Love brand that now encompasses canned RTD bevs, pyramidal tea bags, ceremonial powder and single-serve pods. Matcha is finely milled powder made from shade-grown green tea leaves and finds traditional role in tea ceremonies but chefs appreciate it for lending umami taste profile to their creations. Line available this month in 100 g (3.5-oz) canisters has been picked up by Whole Foods and Sprouts Farmers Market and Ito En sals force is pitching it to lifestyle retailers like William-Sonoma and Dean & Deluca. On RTD side it's also made Matcha Love available in PET bottles, launching exclusively with Whole Foods in most regions.  

After nearly a decade, Rexam's so-called "cap can," identified so far exclusively with resealable 24-oz energy brands from Monster and Rockstar, finally is making move into another category. Copacker Varni Bros of Modesto, Calif, which handles Rockstar cap can, has applied technology to Cock & Bull Ginger Beer, marking what owner Tony Varni believes is first move by can outside energy. Move reflects push by copacker to cross-fertilize intriguing packages across different bev categories, abetted by location at edge of NorCal wine country that gives it unusually broad palette to play with in package prices and formats as it ranges across segments from carbonated soft drinks to bubbly wines.

New pack for Ohio-based Cock & Bull joins brand's mix that includes 4-packs of 12-oz Rexam Sleek cans and 24-unit loose cases of 8.4-oz cans, suited Red Bull-style to cocktail-mixing uses. "It would be neat to expand that package into other products" that have the margin to support pricier pack, as premium ginger beer is able to do, Tony told BBI. He's hoping this application will help loosen identity of cap can as energy-specific, given that its use to date has been by Monster and Rockstar. Given headspace in dome of can, Varni says package should even be able to find wine applications, as it allows vintners to attain 750-ml fill mandated as one of handful of allowable sizes for wine by fed regulator TTB.

Varni Bros/Seven Up Bottling is uncommonly diverse operation - it distributes alc and NA brands, grows almonds and other crops, markets its own Noah's Water and Nella Bella brands, and is copacker - that's been undertaking nearly continuous plant improvements over past dozen years, at site it's occupied 45 years. Co boasts 2 can and 2 bottle lines, and most recently added fifth line handling production of innovative Stack Wine package, 4 interlocking 187-ml plastic wine glasses that are sold as equivalent of 750-ml bottle, in compliance with wine regs. (Consumers unzip outer package, unsnap individual glasses and remove protective overcap.) Varni Bros remains one of few copackers in region still doing glass bottles, as well as such unusual packs as 375-ml (13-oz) Ball can brought in from Europe for its compliance as wine-suitable pack. (Commonly available 12-oz isn't compliant.)

Tho NA biz has been focused on coldfill, new Sacmi filler, operational nearly a year now, has finally given co hotfill capability too, and co will install heat exchanger and other ancillary equipment once hotfill customers emerge. That's useful hedge against any potential softening in coldfill side, tho so far that biz remains strong, Varni said. The 70-valve Sacmi filler was biggest investment co ever made, sporting 4 cappers for uncommon degree of flexibility. It runs everything from 12-oz glass longnecks to 187-ml Karma Bubbly Wine glass bottle to Rexam Fusion aluminum bottle and cap can. Varni runs Fusion can for Pop Water but says vintners have expressed interest in adopting it for their products, marking another potential cross-segment move. Lately he's been pitching stylish Karma Wine bottle to NA cos seeking unusual configuration.

Stack Wine production line, co-funded with wine producer, depalletizes the single-serve cups, labels each container via KHS pressure-sensitive labeler, air-rinses and fills via AutoProd filler, seals with aluminum peel-off lid, then stacks and locks the 4 cups together. Overcap is placed on top of each cup for protection, cup stack is shrink-wrapped, packed and case is sealed. To accommodate spirits applications he sees, Varni is procuring rectifier's license, but he doesn't envision any uses quite yet on NA side.

Among newer packaging innovations that may be ready for prime time in US, Varni's fascinated by Xolution's XO flat resealable closure, German innovation that debuted in 2011 and has seen some success in energy drink biz overseas. Tony's take: for some brands, cool factor may be worth the extra 10 cents per can end that this closure costs. (Info on that on Xolution.com. 

After nearly a decade, Rexam's so-called "cap can," identified so far exclusively with resealable 24-oz energy brands from Monster and Rockstar, finally is making move into another category. Copacker Varni Bros of Modesto, Calif, which handles Rockstar cap can, has applied technology to Cock & Bull Ginger Beer, marking what owner Tony Varni believes is first move by can outside energy. Move reflects push by copacker to cross-fertilize intriguing packages across different bev categories, abetted by location at edge of NorCal wine country that gives it unusually broad palette to play with in package prices and formats as it ranges across segments from carbonated soft drinks to bubbly wines.

New pack for Ohio-based Cock & Bull joins brand's mix that includes 4-packs of 12-oz Rexam Sleek cans and 24-unit loose cases of 8.4-oz cans, suited Red Bull-style to cocktail-mixing uses. "It would be neat to expand that package into other products" that have the margin to support pricier pack, as premium ginger beer is able to do, Tony told BBI. He's hoping this application will help loosen identity of cap can as energy-specific, given that its use to date has been by Monster and Rockstar. Given headspace in dome of can, Varni says package should even be able to find wine applications, as it allows vintners to attain 750-ml fill mandated as one of handful of allowable sizes for wine by fed regulator TTB.

Varni Bros/Seven Up Bottling is uncommonly diverse operation - it distributes alc and NA brands, grows almonds and other crops, markets its own Noah's Water and Nella Bella brands, and is copacker - that's been undertaking nearly continuous plant improvements over past dozen years, at site it's occupied 45 years. Co boasts 2 can and 2 bottle lines, and most recently added fifth line handling production of innovative Stack Wine package, 4 interlocking 187-ml plastic wine glasses that are sold as equivalent of 750-ml bottle, in compliance with wine regs. (Consumers unzip outer package, unsnap individual glasses and remove protective overcap.) Varni Bros remains one of few copackers in region still doing glass bottles, as well as such unusual packs as 375-ml (13-oz) Ball can brought in from Europe for its compliance as wine-suitable pack. (Commonly available 12-oz isn't compliant.)

Tho NA biz has been focused on coldfill, new Sacmi filler, operational nearly a year now, has finally given co hotfill capability too, and co will install heat exchanger and other ancillary equipment once hotfill customers emerge. That's useful hedge against any potential softening in coldfill side, tho so far that biz remains strong, Varni said. The 70-valve Sacmi filler was biggest investment co ever made, sporting 4 cappers for uncommon degree of flexibility. It runs everything from 12-oz glass longnecks to 187-ml Karma Bubbly Wine glass bottle to Rexam Fusion aluminum bottle and cap can. Varni runs Fusion can for Pop Water but says vintners have expressed interest in adopting it for their products, marking another potential cross-segment move. Lately he's been pitching stylish Karma Wine bottle to NA cos seeking unusual configuration.

Stack Wine production line, co-funded with wine producer, depalletizes the single-serve cups, labels each container via KHS pressure-sensitive labeler, air-rinses and fills via AutoProd filler, seals with aluminum peel-off lid, then stacks and locks the 4 cups together. Overcap is placed on top of each cup for protection, cup stack is shrink-wrapped, packed and case is sealed. To accommodate spirits applications he sees, Varni is procuring rectifier's license, but he doesn't envision any uses quite yet on NA side.

Among newer packaging innovations that may be ready for prime time in US, Varni's fascinated by Xolution's XO flat resealable closure, German innovation that debuted in 2011 and has seen some success in energy drink biz overseas. Tony's take: for some brands, cool factor may be worth the extra 10 cents per can end that this closure costs. (Info on that on Xolution.com.