NuAquos protein-infused water has landed NJ c-store chain Quick Chek, with array of social media initiatives and neck hangers mustered in support. Brand marketed by Fla-based New Whey Nutrition already counts Shop Rite grocery chain among key retail customers in Northeast. All told, year-and-a-half-old brand is available in 16 states currently. To capitalize on consumers' new year's resolutions, co also has launched "Pushups and Protein" initiative offering free treadmill to one winner per month.

 Ojo Fortified Eye Care Nectar, bev line formulated to combat advanced macular degeneration, has added Ojo Quickly Dissolving Eye Care Crystals to range of formats. It's stick pack that contains full daily dose of so-called AREDS2 vitamins, reference to clinical study denoting nutrient mix that's proved beneficial in combating eye disease. (AREDS is acronym for Age Related Eye Disease Study.) Ojo Crystals can be dissolved in water, other bevs or even yogurt. Launch of new line occurs just as Center for Science in Public Interest has filed suit in Calif vs CVS claiming that drug chain's nominally AREDS2-compliant CVS Advanced Eye Health supplement lacks vitamins C and E, zinc and copper that National Institutes of Health say are required for AREDS2 efficacy. With 30 mil Americans suffering from eye disease, AREDS1 and 2 vitamins comprise $300 mil biz, mainly in pill form, per Ojo data.

 Small sparkling water brand based in Fla is latest to hang out shingle as DSD option in crucial Miami market, area that's been bereft of strong options since former Red Bull shop Sand Dollar exited a few years ago. Onli Beverages said it's taking on additional food and bev brands in south and west Fla market that its flavored sparkling water has penetrated, enlisting former AriZona Iced Tea exec Andy Stallone as sales dir for unit called Onli Choice. Stallone family deserves credit for establishing AriZona in Fla, now one of brand's strongest markets. Among earliest clients, Onli is claiming to have enlisted Essentia Water, HiBall Energy and Hard Rock Energy, which is marketed by ally of Fla's Seminole tribe, which owns casino trademark. "For many years now, I have seen a consistent lack of independent DSD options in Florida," said Andy. "We see Onli Choice as an opportunity, not only for Onli Beverages, but for other emerging brands as well." As reported last year, Onli was launched by South African-born entrepreneur named Nadav Haimberg who'd been seeking bev investments and decided to do brand on his own (BBI, Apr 17).

 Tazo Tea, which seems to have been eclipsed at Starbucks by acquired Teavana line, has moved a bit further down priority list: it's been ousted from coffee roaster's stores in favor of Teavana. SBUX rep told Reuters that Tazo will remain in mix in big-box retailers like Target and Walmart, as well as Whole Foods and other natural retailers. Tho Tazo brand, acquired for $8.1 mil in 1999, brings in more than $1 bil in sales, including via RTD line produced by Pepsi, Starbucks appears to now view Teavana as its superpremium brand, prompting some in bevs to wonder when RTD version may be coming. Teavana was mall-based chain at time SBUX purchased it for $620 mil in 2012 but has increasingly tilted toward urban locations with dialed up in-store experience, even as Tazo has been afforded less attention. At recent annual investor conference, SBUX noted that tea as percentage of US retail sales had grown from less than 8% in 09 to 10% in recent quarters, Reuters noted.

 Energy drink cos aren't doing enough to ensure their products are not marketed to youth and the Food & Drug Administration needs to "immediately develop and release guidance" to industry about reporting "adverse events" and should "define what constitutes an energy drink, a sports drink or other 'functional' beverages." Those are just a few conclusions from report titled "Buzz Kill" from offices of Sens Edward J Markey (D-Mass), John D Rockefeller (D-WV) and Richard Blumenthal (D-Conn) who've been looking into energy drink segment for past coupla years.

Senators wrote 16 energy drink cos seeking comment regarding their marketing practices and heard back from 12 so far. "Buzz Kill" report noted that AriZona Beverages USA, Celsius Inc, Xyience and Coca-Cola "committed that they would not market to youth under age 18" but was critical of mkt leaders (with over 90 share combined) Red Bull, Monster, Rockstar and Dr Pepper Snapple that "declined to make this commitment." Also claimed these 4 energy drink makers "demonstrated significant gaps in making commitments to protect adolescents from targeted marketing campaigns." Report gave props to Xyience for being only co that "committed to all" of recs including: "(1) Labeling products not intended for youth under age 18; (2) restricting advertising buys to media where no more than 35% of the audience is under age 18; (3) restricting social media access to youth under age 18; and (4) avoiding featuring youth under age 18 in energy drink marketing campaigns." Report doesn't specify which co but notes only 1 of 12 cos said they would not market or provide samples in K-12 schools and added that "2 companies did not commit to including contractual language that hold distributors and other contractual players accountable for this policy."

Among report recs that energy drink suppliers "cease" all marketing efforts to children under 18 and sales of any kind at K-12 schools, it urges FDA take several immediate steps, too. Group calls on FDA to "develop and release suggestions for daily caffeine consumption limits for children and adolescents, as well as rules requiring labeling of caffeine content for all products with added caffeine." Also wants FDA to prepare "voluntary guidelines" for reporting "adverse events" from energy drink consumption. The FDA should also clarify "what constitutes an energy drink, a sports drink or other 'functional' beverages" to avoid consumer confusion.

The American Beverage Assn countered that report is wrongly taking aim at energy drink suppliers. "This report ignores crucial data about energy drinks and caffeine consumption in the US," wrote spokesman Christopher Gindlesperger to Time mag in response to report claims. "Based on the most recent government data reported in the journal Pediatrics, children under age 12 have virtually no caffeine consumption from energy drinks," reminded Christopher. That was key finding that emerged from data presented at workshops convened by FDA a year ago, recall.

 Mark Hall, innovator behind Monster Energy brand, appears to be returning to substantial role at Corona, Calif-based co as it moves to shed its non-energy assets and become pure play in energy segment. Tho there's no formal word yet on move, Hall apparently will initially focus on rebranding of NOS and Full Throttle brands that Coca-Cola is sending over to Monster as part of sweeping investment and brand swap anticipated to close in Mar. But co staffers are viewing it as reassuring return of brand's creator at time there's concern that affiliation with Coke might sap renegade spirit of co. "We need his kinetic energy that he lets loose on the people," said one. "We're very concerned about our culture staying the same."

Word on move was noted coupla days ago by Stifel Nicolaus analyst Mark Astrachan, who apparently picked it up in small talk during MNST investor briefing in New York (BBI, Jan 21). "We would view Mr Hall's return favorably as he was a key contributor to the company developing, launching and making successful the Monster brand since its 2002 introduction. Additionally, along with ceo Rodney Sacks and president Hilton Schlosberg, Mr Hall was intimately involved with the majority of company innovation, playing a major role in gaining share from Red Bull and expanding product and category usage occasions," Mark wrote. No immediate response to call to Mark a coupla days ago about return.

Former AriZona Iced Tea exec Hall had devised Monster brand for Sacks and Schlosberg at what was then called Hansen Natural Corp after earlier energy foray under Hansen name sputtered; all 3 have become quite wealthy as renamed Monster Beverage Corp has surged to $19 bil market cap on back of popular energy line. Apparent stresses of job as prexy of Monster Beverage div had led Hall to depart day-to-day role about a year ago, taking board seat and signing non-compete agreement while spending much of his time developing coffee estate he'd acquired in Hawaii. He's continued to weigh in on innovations, but expectation is that he'll appear at Corona hq more frequently now, tho he isn't expected to be much involved in distribution transition to Coke system. Brand is divided between Bud and Coke houses now but will be nearly all-Coke once deal closes.

Even with Hall playing lesser role, MNST has continued to prosper under Sacks and Schlosberg over past year, scoring brisk sales gains and stock appreciation, building on well-received sublines like Ultra and negotiating ground-breaking deal by which Coca-Cola is taking minority stake in co and swapping its energy brands for Monster's non-energy brands, move that should allow each partner to better play to its strength. Still, there seems little question that Hall's return will augment co's agility in maintaining innovative flair that's done much to set Monster apart from archrival Red Bull. Some in co are hoping Hall's unusual combo of street savvy and creativity will exert broad influence during tricky KO transition, however his role is defined in new contract. "We need some structure and discipline as well as his creativity," noted one.

 Starbucks and Coca-Cola both disclosed last week that key execs will be stepping away from their duties this winter. SBUX coo Troy Alstead, 2d in command and viewed as heir apparent to chmn/ceo Howard Schultz, is taking "sabbatical" from co. SBUX didn't offer much clarity on situation other than to stress neither Troy's health nor is his performance a factor in timing. "The next year is for my wife and children, to give them dedicated time and attention," said Troy in email for SBUX employees, per Bloomberg. SBUX noted it offers sabbaticals for up to a year to employees for education, travel and family. Alstead will begin unpaid leave Mar 1. Separately, Coca-Cola said its chief marketing exec Wendy Clark is stepping away from co "to support an outside project of personal importance to her," reported WSJ. Wendy's departure thru Mar 31 apparently will be used to add some fizz to potential presidential candidate Hilary Clinton, whom Clark will be advising.

 As visitors to Fancy Food Show headed into Moscone Center, they were greeted with billboard campaign blanketing downtown SF heralding new look and positioning for Volvic water: French import now is playing up its volcanic origin as way of flagging its nutritional cred. New look, which broke in Europe 2 mos ago and in Japan this month, hits US on Feb 1, with clear-label bottles with image of green volcano and endangered Red Kite bird at center and large-type listing of naturally occurring nutrients on back panel, including electrolytes, sulfates, chlorides that emerge from 6 layers of volcanic filtration.

Outdoor campaign superimposes dotted-line diagram of flow of water over photo of volcano, and was launched in SF as among brand's fastest-growing US markets. It's not been determined yet whether effort will add other US metros. New pack aims to move brand a bit further upscale and signal purity and mineral content of water that's "created by volcanoes." New look was flagged at booth of Brands Within Reach, NY-area firm which acts as brand's marketing and sales agent in US and which experimented with "volcanicity" as potential marketing tag to herald provenance. Volvic is working on US push with BWR team that includes founder/ceo Olivier Sonnois and newly enlisted pr chief Alexandra Creteur.

At show, BWR also launched German sparkling water called Selters that's claimed to be #1 on-premise brand in Germany. It's intended to fill spot of departed Apollinaris brand, which has retreated just to core German market, and offer rival to Geroldsteiner. Mildly carbonated line is well suited to culinary environments, and is offered in both 1-liter plastic and 800-ml glass bottles, in contrast to glass-only Apollinaris. The PET bottles are offered singly and in 6-packs with plastic handle, priced 15-20% above Pellegrino. By now brand has been accepted into some Fresh Market stores.

Also at booth, glass-bottle Heart of Tea, NY brand that's newly aboard at BWR, was making first foray west of Mississippi, in test run for Expo West presence in a few weeks. It's already entered Ralph's grocery chain in LA and has been enlisting array of broadline, DSD, foodservice and vending partners for western push. UK-based Belvoir has added organic ginger beer to flavor range anchored by elderflower. Belvoir has performed well enough in Kroger's Taste of Tomorrow experimental set that it's being rolled out to stores' soda or lemonade aisles, Sonnois indicated. And Qure water brand has entered Ralph's chain.

Monster Beverage Corp brass outlined 2-brand strategy they're planning for most global markets upon anticipated conclusion of Coca-Cola transaction at end of Q1, saying they'll resist move to concentrate model in interest of maintaining tight control over brand. In US, MNST will maintain stronger of Coke's 2 brands, NOS, and possibly Full Throttle. And tho purportedly healthier energy brands have never ignited (Monster has mustered several under brands like Hansen's), ceo Rodney Sacks expressed enthusiasm for more lightly formulated European brand called Nalu, which he hopes to expand throughout Europe and perhaps beyond. By now antitrust hurdles have been cleared, so there's no reason to anticipate hitch in closing. "We have a challenging but really exciting year ahead of us," Sacks told investors in NY yesterday afternoon. "Our work's cut out for us this year"

At investor meeting, very little was offered about transition of Monster brand in US, where Anheuser-Busch houses are being displaced in roughly half of market. Sacks pointed to incentives keyed to buyout to assure they don't drop ball, and said co has assured them that they won't be left on hook for investments in coolers and other equipment between now and brand exit, but acknowledged that "inevitably there is a little bit of a pullback." No new light shed on migration of Monster's non-energy brands like Peace Tea, Hubert's Lemonade and Blue Sky sodas to Coke, which will become steward of those brands. BBI hears few if any MNST employees on those brands are making transition to Coca-Cola.

This of course is transaction in which KO will take 16.7% stake in MNST for $2.15 bil, most of which MNST apparently will return to its shareholders. As part of deal, Monster brand transitions to Coke bottling network in nearly all of US, rides Coke bottling system to global expansion, and swaps its non-energy brands for Coke's global energy portfolio. Coke has been riding NOS and Full Throttle in US, and brands such as Burn, Relentless, Gladiator, Mother, Samurai and Nalu in various global markets. Deal will more than double size of MNST's biz in a # of international markets, Sacks indicated. With that brand swap, MNST is losing about $150 mil of net sales but gaining $230 mil in concentrate-based sales that are substantially more profitable than those non-energy brands it's giving up.

Wells Fargo's Bonnie Herzog offered this take on meeting: "In general, we came away highly encouraged by the significant benefits to be realized through the KO partnership. However, we believe the market is already fully valuing the potential near-term benefits, and we think there could be minor disruptions in H1 2015 as MNST transitions nearly half of its distribution from the Anheuser-Busch system to the Coca-Cola system in the US as well as some international markets could experience minor hiccups as its 2-brand strategy is fully formulated and executed."

Eyeing 2 Energy Brands per Market; Lighter/Healthier Nalu Adds 3d Option Longer-term objective, Sacks said, is to have one of Coke brands being acquired plus Monster in each global market. "Lifeblood of our company is Monster - we want to get Monster everywhere" as overwhelming priority, ceo declared. But 2d objective is "to have a second brand in almost all of those countries." In most markets outside North America that's Burn, tho there are countries where Coke itself maintains two energy brands. In market like China that's undeveloped in energy category by both cos, Monster will be the horse. "We won't try to launch 2 brands in China," Sacks maintained. In North America, top Coke brand is NOS (acquired as part of Fuze Beverage transaction years back), but "we feel the Full Throttle brand does serve a function, maybe pricing … it is a profitable brand." A Coke-owned brand like Mother performs well in Australia, where Monster has struggled for lack of a strong distribution partner, but that brand exists only in Australia and "is not viable long-term." So co will try to get Monster brand to leapfrog Mother, tho if that doesn't pan out "that's fine." In general, MNST will "try to centralize the brands we get" to focus on those with long-term legs, Sacks indicated.

Exception to 2-brand rule is Coke-owned Nalu brand, which debuted in Belgium as slightly lighter, healthier energy drink and is just being launched in Netherlands now. Monster will look to expand that further in Europe, including into countries where there may already be 2 conventional energy plays, since Nalu is positioned outside that realm.

Reaching out to indie Coke bottlers overseas Tho sometimes constrained by antitrust considerations, MNST has begun to reach out to overseas Coke bottlers to plan transition. Tho in past bottlers haven't always embraced Monster brand, "in many cases the bottlers don't know that much about Monster . . . Those we have talked to been very enthusiastic," Rodney said. He said MNST brass has taken pains to assure them they're not out to simply replace bottler's existing brand - in Turkey, for instance, bottlers really believe in Burn brand, and often their existing brand brings higher margin because they produce it as concentrate brand. But deal eliminates cause of divergence of loyalties: "We've got support all the way down from Muhtar Kent."

Inclined to eschew concentrate model for Monster as diluting control Tho concentrate model offers nominal improvement in bottler profitability, MNST isn't inclined to pursue that model once deal closes, on grounds that co wants to maintain brand consistency. "For us, the finished product model been far better - we can be far more involved for marketing and stewardship of the brand," in contrast to KO brands like Burn that may be positioned differently in flavors, package design and marketing in different countries, Sacks noted. MNST may experiment with concentrate in some markets, or its hand may be forced in countries where import duties are a determining factor. On other hand, MNST generally won't tamper with brands it's acquiring from KO. In financial reporting, MNST will likely report concentrate-based sales as separate segment so respective performance can be monitored, noted prexy Hilton Schlosberg.  

 Argo Tea, Chicago-based retail tea chain that has been hitting the gas on RTD offering over past coupla years, has pulled in undisclosed investment from PE shop Breakwater Investment Management. Deal was brokered for Argo by First Beverage Group, at time Argo has grown to 40 locations in US and overseas and claims to have its RTD line in 16K locations.