CEO David Winters, and his Wintergreen Advisors, which owns 2.5 mil KO shares, have been making rumblings against co board and mgmt since last spring, when less than half of Coca-Cola shareholders approved its executive comp plan in Apr. Coca-Cola announced revamped plan in Oct to award mgmt a lot fewer shares (200 mil vs planned 360 mil) but that still hasn't satisfied Wintergreen. KO's 2014 proxy statement "did not adequately identify or explain the concept of secret bonus shares," and disclosure "fell far short of both the spirit of the letter and of the federal securities laws governing proxy disclosure," charged Wintergreen in letter to KO. It goes on to demand KO "immediately claw back any secret bonus shares that have been granted and to pledge that none will be issued in future." Wintergreen also calls for resignation of any board members, mgmt, consultants or advisors who put equity plan together. Speaking to Wall St Journal, KO rep derided Wintergreen claims as "without merit in an attempt to grab headlines in the absence of meaningful or factual contribution." 

Peripatetic path of Vita Coco's recently departed marketing chief Jeff Rubenstein has garnered some fascinated attention lately, as he's flitted from short stay as cmo at Runa - barely long enough for hot cup of co's Ecuadoran guayusa - to new job as cmo of watermelon-based HPP play WTR MLN WTR. But since Ruby's departure, as he's known to colleagues, Vita Coco has quietly been laying groundwork for next marketing phase by promoting former Red Bull North America exec and 6-year Vita Coco vet Jane Prior from US marketing vp to global role as evp for brand strategy and development and recruiting longtime Coke exec Prinz Penakatt as svp marketing for Americas. With further new hires to be announced in coming weeks, they're part of effort to step up marketing efforts in core US/Canada market - with even TV in potential mix for this year - while laying groundwork for more concerted global push of brand that already does 2 mil cases in London and last year recruited powerful Red Bull owner in China as investor and distribution partner.

Penakatt was rising star at Coca-Cola, starting with roles in his native Germany and moving thru 4-5 years of global spots running coffee and tea, energy drinks and most recently "alliances & ventures" including such partners as Formula 1 racing, NBA and soccer ruling body FIFA. Several BBI contacts have drawn comparisons to Rohan Oza, former Powerade exec at Coke who similarly abandoned glowing KO prospects to take flier on emerging brand, in Oza's case Vitaminwater. Vita Coco cofounder Mike Kirban told BBI that connection was made by board member Chris Burggraeve, former Anheuser-Busch InBev cmo who'd been colleague of Prinz's during earlier run at Coke Europe, and has been helping Kirban build out marketing org. Penakatt's priority, Kirban said, will be to create unified brand strategy, in contrast to more opportunistic efforts of past that have included phone kiosks and billboards in core markets like NY and LA. He noted that, with Rubenstein still in mix, Penakatt had originally been recruited to orchestrate burgeoning Asia biz from Singapore base, which may prove destination for Penakatt further down road as biz matures.

As for Ruby, his post at Runa had been styled "interim" one as personal and cultural fit was ascertained (BBI, Jan 21); apparently before judgment was rendered there, he'd been steered to WTR MLN WTR by former Vitaminwater marketer Oza, who's investor in both Vita Coco and WTR MLN WTR. (Kirban, Ruby and other Vita Coco execs are investors in Runa.) No word back to BBI from WTR MLN founder Jody Levy as to what broader plan is at brand that's made a local splash thru vibrant color palette, standup stores and other branding activities.  

Modest amount of "pixie dust" is one thing. But could it be that major retailers like Walmart and GNC failed to include even a milligram of core ingredient in many of their store-branded supplements? That's controversy unfurled by NY State atty genl, whose analysis of 6 categories of supplements purchased at GNC, Target, Walgreens and Walmart stores around state concluded that vast majority of them fail to include any gingko biloba, echinacea, St John's wort or other listed ingredients, instead employing worthless fillers. AG Eric Schneiderman issued cease-and-desist letters that had retailers pulling products off shelves after concluding that "overall, just 21% of the test results from store brand herbal supplements verified DNA from the plants listed on the products' labels - with 79% coming up empty for DNA related to the labeled content or verifying contamination with other plant material." Poorest-performing retailer was claimed to be Walmart, only 4% of whose tested items showed DNA from the plants listed on-label. "The DNA test results seem to confirm long-standing questions about the herbal supplement industry. Mislabeling, contamination, and false advertising are illegal," proclaimed Schneiderman. "If this data is accurate, it is an unbelievably devastating indictment of the industry," Harvard Medical School asst prof and supplement expert Peter Cohen told NY Times. For their part, retailers promised to cooperate and consult with their suppliers, tho GNC, for one, expressed considerable misgivings about testing procedure used, as did several independent experts.

Findings drew front-page headlines that seemed likely to deepen consumers' skepticism about supplements' efficacy and may also prompt moves at federal level to address chasm between gov't's more stringent regulation of drugs and food/bevs and laissez-faire approach to $61 bil supplement biz, as partitioned in DSHEA legislation of 1994. But findings also generated considerable skepticism from outside experts who questioned why AG used DNA barcoding method rather than established national standards in investigation, positing that it's possible that normal processing of ingredients in extract-based items erased DNA cues that AG was seeking. "It's ridiculous that anyone in the regulatory world would not at least start with a national standard" like the USP monograph for such tests, Roy Uptown, founder of American Pharmacopoeia told Nutraingredients-USA newsletter. Not surprisingly, supplement industry's chief lobbying arm, Council for Responsible Nutrition, reacted viscerally to AG's move. "These actions today by the New York State Attorney General's office smack of a self-serving publicity stunt under the guise of protecting public health," said CRN chief Steve Mister, who similarly questioned whether use of DNA barcoding technology is appropriate for finished products where DNA can be removed or damaged during processing. This from GNC: "The DNA barcoding technology employed on behalf of the Attorney General's office in testing GNC Herbal Plus products has not been approved by the United States Pharmacopeia and may not be appropriate for the testing of these herbal products. The Attorney General's office has refused to provide the test data to GNC."  

With Sparkling Ice now a half-bil-$ brand, Talking Rain is moving aggressively to step up its marketing. Seattle-based co has concluded year-long search for cmo with recruitment of former Red Bull and Muscle Milk marketer John Peirano, and just went live this morning with word that it's co-sponsor of ROC Nation concert in NY next week featuring Kanye West as part of festivities surrounding NBA's All Star Game in city. Ice's key endorser is perennial NBA All Star Kevin Durant, who'll be co-emceeing concert in city's Flatiron District with West, who'll also perform. Sponsor roster for what's being called first annual ROC City Classic also includes American Family Insurance and smartphone maker HTC; they'll be orchestrating give-away of 10K free tix to closed show. Ahead of announcement, Sparkling Ice has stepped up presence in NY via such paid ad vehicles as cab toppers and "spectacular" billboard in Times Square featuring image of Durant.

Tie-in reprises link from last year, when Ice teamed with ROC Nation for Made in America concert, but doesn't necessarily spell broader tie between zero-cal brand and impresario Jay Z. "We have a great working relationship and are always looking for opportunities to brand together" to raise visibility of burgeoning brand, said Talking Rain ceo Kevin Klock. "We have our first cmo and now our first big event" of 2015.

New cmo, Peirano, spent 6 years at CytoSport, which was recently acquired by Hormel Foods, and spent prior 7 years at Red Bull North America; earlier in career, he was in athletic shoe biz with posts at Reebok and Nike. Among his priorities will be to settle on productive marketing mix after Ice experimented in 2013 with purchased media like outdoor and TV ads, then turned focus last year to field marketing. This year, Klock said, will be first to feature fully integrated campaign along all platforms. Along way brand has recruited Durant, whom it aims to leverage more actively in 2015. ROC Nation show next Thurs is example of how it aims to do that, even during NBA season.

Peirano's addition fortifies marketing team that includes former Miller Brewing and DPS exec Russ Schleiden as marketing vp and Nina Morrison, Klock's right-hand person, as marketing dir. Not much earlier, Talking Rain elevated finance vp Michael Lowes to coo role and brought in cfo from technology realm, Marcus Smith, as it builds out exec team on way to stated goal of $1 bil in sales in next coupla years.  

Keurig Green Mountain hit another choppy patch in Q1, reporting last night that sales of its much-touted 2.0 coffee maker had come in well below expectations, and shares opened today at 5-month low. While blowout was nothing on order of another former Wall Street darling, SodaStream Int'l, whose shares are languishing at less than half last May's peak price, it came as reminder that co is operating in uncharted territory, with no real knowledge of how big market for home coffee and soda makers will prove to be. "Quite simply, our 2.0 launch got off to a slower start than we planned," said ceo Brian Kelley, even tho co shipped 4.3 mil machines in qtr. Current Q2 is likely to be soft this year, too, as retailers work off excess inventory of unsold machines from holidays, he indicated. That said, former Coke exec described 2.0 miss as transitory issue tied in part to consumer confusion over incompatible non-Keurig pods. And he remained bullish on much-anticipated Keurig Cold soda-making unit that's due in May and is key focus of interest in GMCR by minority investor Coca-Cola.

Overall net sales came in flat at $1.39 bil, and net income was in line with Street's expectations, at $134.6 mil. While pod sales rose 9% to $1.01 bil, brewers/accessories sagged 18% to $307.6 mil. Co is maintaining outlook of net sales in mid- to high-single-digits, as 2.0 launch picks up steam and Keurig Cold hits later in year.

Tho co has been sparing in offering details of Keurig Cold unit and technology behind it, Kelley did shed some light on call last night. Users will be able to push button and see drink dispensed at 32 degrees in less than 30 seconds, ready for consumption within a minute. Some units will have flexibility to accommodate up to 8 "back-to-backs" with no change in water. In "party mode" with ice in reservoir, unit can operate continuously. As for targeting, co will go after current Keurig hot-machine users, who've displayed great interest in Keurig Cold, and also after heavy cold drink households. It remains to be seen how many users will want 2 different machines, tho some have indicated they don't want sodas coming from same machine as their hot coffee. "We will adjust and make sure we address the consumer need," Kelley assured investors.  

Energy drink volume increased 8.7% in convenience stores over 4 wks thru Jan 17, per Nielsen data reported by Wells Fargo Securities' Bonnie Herzog. That's a tad ahead of 8.4% gain pace previous 12 wks and just below category's gain of 8.8% in c-stores for 52 wks. Monster Beverage volume was up 11.5% on avg 1% price drop in latest 4 wks. Avg price for MNST was down 0.5% last 4 wks, which supports Bonnie's recent Beverage Buzz survey in which c-store retailers reported increase in promo activity helping move volume. Red Bull volume was up 5.1% (generally in line with 12-wk gain) while its avg price was up 2.4%, double its 12-wk avg. Monster held 44.2 share of volume in c-stores vs 25.1 for Red Bull last 4 wks but Red Bull accounted for 38.1 share of dollars, just ahead of Monster's 37.9, reflecting Red Bull's continued higher price realization. Rockstar volume slowed decline to -4.9% last 4 wks (vs -5.6% last 12 wks) with small (+0.3%) avg price increase in c-stores. Coca-Cola energy drinks (NOS, Full Throttle) tapered off a bit from recent torrid gain pace to still-impressive +28.7% in c-stores, despite solid 3.4% price increase last 4 wks. PepsiCo (Amp) grew 5.7% (down from 8% gain prior 12 wks) on avg price that rose just below 1%.

Solid Pricing for CSDs but Weaker Volume Trends CSD volume was down 3.8% in c-stores last 4 wks thru Jan 17 (vs 3% drop prior 12 wks) as prices rose to avg gain of +5.2%. That's up from a 4.8% avg price gain for 12 wks and 3.9% gain for 52 wks in c-stores. Each of the big 3 suppliers continued to lose volume in c-stores but maintained healthy pricing. Coca-Cola CSD volume was down 3.3% (vs -2.7% prior 12 wks) while avg price was up 6% last 4 wks. PepsiCo CSDs were off 4% (vs -3% for 12 and 52 wks) with avg price gain of 4.5%. Dr Pepper Snapple slipped 2.2% last 4 wks with avg price increase of 4.7%. Private label brands, which account for just over 1.3 share of CSDs in c-stores were down 19.3% last 4 wks.  

PepsiCo used yesterday's Super Bowl as peg for what may have been most its extensive melding of bev and snacks platforms ever, but on ad front found itself trumped in informal rankings by Coca-Cola spot that deftly hitched its Open Happiness campaign to issue of social media civility.

Among bevcos, Anheuser-Busch won USA Today AdMeter poll for 3d straight year for sentimental ad featuring Clydesdale horses rescuing small dog, amid car-heavy ad roster. Among 61 ads, PepsiCo scored in top 10 with Doritos ad (#5) but "Halftime Touches Down" pre-halftime spot charted in middle of pack at #30. That effects-laden effort via production team from Gravity movie incorporated 23 Pepsi logos. It culminated months-long self-styled "Hyped for Halftime" media effort that PEP said included 40+ pieces of digital content. Meanwhile, rival Coca-Cola enjoyed #8 rating with "Make It Happy" ad from Wieden & Kennedy agency exhorting viewers not to harass people via social media, already viewed more than 2 mil times on Youtube. Tho Pepsi's bev ad buy on actual game was restrained, it ran 90-second ad via NY agency BBDO behind its Mountain Dew Kickstart energy drink in runup to game, featuring guys crazy-dancing to drink in synch with similarly moving animated furniture and accessories. Dubbed "Come Alive," reprising old "Pepsi Generation" ad theme, spot shows crazy-dancing guys under the influence of Kickstart to flag new Pineapple Orange Mango and Strawberry Kiwi flavors.

But ads were only part of story. Crop circle in shape of Pepsi logo in Glendale, Ariz, half mile from Bowl stadium, was among bevy of local activation efforts that drew anticipatory chatter. As official sponsor of Halftime Show featuring Katy Perry, PEP arranged for fans to hold "light orbs" in shape of Pepsi logo. Perry performance seemed to draw mixed reviews from critics, and it wasn't clear yet whether halftime show topped last year's version, also sponsored by Pepsi and featuring Bruno Mars. That came in as most-viewed TV event.

With activist investor Nelson Peltz and other critics calling for splitup of PepsiCo's bevs and food divs, co has been pulling out all stops to demonstrate how the 2 businesses reinforce one another, and Super Bowl activation was no exception. Frito-Lay marketing chief Ram Krishnan told Marketing Daily that co had mounted 62K multibrand, Super Bowl-themed displays at retail in US, up 70% from last year's game. Effort to create customized "Better Together" displays for individual retailers had been months in development, weaving in consumer hooks like sweepstakes offering tickets to next year's Bowl and TVs and other items needed to create "man cave" in which to watch game. Looking mainly at print ads run to date during Jan vs same pre-game period a year earlier, monitor Market Track found that PEP's "bundle" ads have doubled this year, Marketing Daily noted. In runup, PEP wove together Aiming at millennial-age consumers, PEP mounted student cooking competition using items from both sides of co,

Body Armor, Vita Coco Picked Endorsers Well Strong games by New England Patriots' Rob Gronkowski and Seattle Seahawks' Marshawn Lynch offered vindication to Body Armor and Vita Coco brands, respectively, which leveraged athletes in recent marketing. Gronk came in as investor/endorser for brand in earliest days, back in 2012, and has pitched Body Armor via such means as altered church bus dubbed Sinners Bus, which transports his friends and family to games - gleefully riding ensuing publicity when, inevitably, Body Armor-branded vehicle is denied access to venues where other bevs have exclusive sponsorship role, as happened at AFC Championship site Gillette Stadium in Foxboro, Mass, 2 weeks ago.

Running back Lynch joined Vita Coco back in 2013, and participated with Dodgers' Yasiel Puig, Bulls' Joakim Noah and other athlete endorsers in brand's Drafted by Nature campaign this past fall. Most recently, Vita Coco leveraged Lynch for pre-Bowl Game social media effort offering "hydration packages" to parched fans who phoned Vita Coco's so-called Thirst Responders Hotline. Lynch has been featured as hotline's "employee of month," picking up phone himself when some consumers call. "Marshawn Lynch responding, what's your emergency?" he asks caller in one of several videos posted on Vita Coco social media. Among giveaways offered by coconut water brand in pregame activities was helmet autographed by Lynch.  

"It appears non-alcoholic beverage trends remain strong with +5.9% sales growth in Q4," based on survey of retailers representing 15,000+ c-stores, said Bonnie Herzog of Wells Fargo Securities. In Q4 it was "all about low gas prices" as "100% of our contacts" indicated in survey that lower prices at pump "had a favorable impact on sales relative to last year." Survey also found promo activity down from Q3, with avg prices up close to 2% and "broadly in line with historical averages," wrote Bonnie. Energy drinks, iced teas and bottled water were cited by retailers as sales growth leaders in Q4. Based on survey results, energy drinks were up 8.7%, "a sequential decline" from 9.3% gain in Q3. Bottled water "remains a strong category," up 7%, while iced teas and sports drinks were up over 5% each. Total CSDs edged up 1.2%.

Heavy Promos from KO; Gatorade Deals Boost PEP; DPS Lags Coca-Cola volumes were up around 2% in Q4 with avg price growth of 0.7%, based on survey response. Retailers "suggested KO supported 'heavy promos' on 2-liter and 20-oz CSDs which led prices on these key backs below PEP's, offset by better net price realization on non-core pack sizes and products," noted Bonnie. Also, survey found KO's "strategic push towards smaller packs is generally not being well received by retailers." PepsiCo volumes rose estimated 3.9% in Q4 based on responses, with avg retail price gain of 1.2%. "Gatorade sales were particularly strong in the quarter, likely driven by increased multi-purchase promotional activity," she believes. PEP's Starbucks products along with Mountain Dew and Aquafina were cited as strong performer for PEP in qtr. Meanwhile, Dr Pepper Snapple performance in c-stores "remains below peers," with volume up estimated 1.1% with avg price gain of 0.9% in Q4. On brighter note for DPS, surveys indicate that Snapple and allied brand Vita Coco "appear to be offsetting some of the CSD weakness."

MNST Volume Solid; Minimum Pricing Gains Monster Bev volume should be up estimated 9% in Q4, based on survey results, "with minimal net retail pricing growth," said Bonnie. MNST "introductions were the stars of Q4," one retailer told WFS, and expects new intros from Red Bull to be key drivers in Q1. "In general," performance of new MNST products "has been solid," while "small minority" of retailers reported Ultra Sunrise and caffeine-free Monster Unleaded "have not met expectations" so far. Approx 20% of retailers surveyed are already receiving MNST exclusively from KO distribs with "nearly 80%" of retailers affected by upcoming MNST transition to KO distribs. Retailers anticipate transition in Mar/Apr. They expect "some level of disruption or potential challenges" during transition but majority are taking things in stride, indicating those are normal disruptions for deal like this.  

Tho lotsa eyes are focused on burgeoning battle among Aquahydrate, Essentia and other alkaline-water players, another brand has been girding for big push this spring based on contrasting premise: Core Natural "Perfect pH" water, brand being promoted by Fuze and Body Armor creator Lance Collins that purports to offer healthier balance. Many of same DSD houses that have been starting to aggressively work their more heavily alkaline waters seem inclined to pick up this one, too.

Core is reverse osmosis water enhanced with electrolytes and minerals "that's slightly alkaline, just like you," per Web site at CoreNatural.com. Brand's 7.4 pH level is claimed to be more in sweet spot of what's good for you than bottled water brands further on alkalinity spectrum. "Be true to your Core" is brand mantra. It's offered so far in 20- and 30-oz PET bottles that taper at middle and sport stylish blue overcap. No details from Lance and colleagues in response to inquiries placed over past week or so, tho he's been actively pitching brand since last fall and promises BBI further info imminently. Some distributors in market view Core as tempting hedge against potential liabilities of alkaline brands, which some medical experts view as unhealthful when consumed in large quantities and which some rival water brands grumble may not be at stated alkalinity levels in first place, either because of process used or degradation at retail.

In recent months, Collins has recruited former colleagues from prior brands like Fuze - tho generally staying away from those he'd enlisted for his new-generation sports drink Body Armor, now being operated day to day by his partner Mike Repole, co-creator of Vitaminwater brand. Brand also seems to have landed or be close to landing such DSD distributors as Polar in New England, Haralambos in LA and New Age in Denver. Members of brain trust assembled by Collins behind Core Natural include former Crunk marketing exec Jon Crecy, serving as his #2, and former Glaceau and Zico sales exec Andrew Griffiths, who's running natl accts.  

Owl's Brew, tea-based mixers that support uncommonly broad array of cocktails, has added first white-tea-based entry, Sweet Water, in white pack that's intended to strike a chord in warmer months. It's formulated with pomegranate, lemon peel and watermelon, and will be included in summer gift pack. By now NY-based Owl's Brew line has begun to augment DSD distribution ranks, enlisting likes of Savannah Distributing in Savannah and Atlanta and Southern Wine & Spirits in Nev. Brand has also entered UK via an exclusive at retailer Marks & Spencer . . . Hint Water has undertaken challenging process of lightweighting its hotfill bottles, cutting over at year-end 2014 to essence-water bottles that use nearly 20% less plastic. Cofounder Theo Goldin said new packs from existing vendor Amcor have launched in East Coast out of copacker Union in NJ and not yet trickled out West. At show co also debuted Pineapple flavor, replacing earlier Tropical Punch . . . Bruce Cost Ginger Ale showed new Blood Orange Meyer Lemon flavor, dubbed a limited-availability "BC Limited" item and portraying slice of orange on neck label. Flavor launches as 40-day exclusive a NY Whole Foods and, because of ingredient costs, goes out at higher price point than core line. It's also starting to do more to play up location of its processing facility in up-and-coming NY nabe, proclaiming "Bushwick, Brooklyn" on new labels . . . Portland, Ore-based Kombucha Wonder Drink, which balanced its longstanding shelf-stable line with raw line in recent years, has expanded availability of raw line so it's now available from Seattle south to NorCal, and east to Rockies and Tex. Founder Stephen Lee, who created Tazo and Stash tea brands earlier in career, continues to produce raw line with Portland tea specialist Tao of Tea. He's relocated KWD within Portland to new site with showroom, Wonder Bar and lab - ironically, in same building in whose basement he launched Stash in 1972.