As anticipated, Long Island

Iced Tea has filed registration statement with SEC for offering of common shares, as it looks to build momentum

for its bottled iced tea brand and upgrade listing to Nasdaq Capital Markets. Co based in Hicksville, NY, said it

hasn’t yet determined # of shares to be offered and their price range. It currently trades on OTCQB market under

LTEA symbol. As reported, co also is developing range of alcoholic bevs and is on lookout for acquisitions of

promising brands.

With its 30th anniversary approaching next month as NY’s biggest

NA-only indie DSD house, Big Geyser continues to aggressively fortify its brand portfolio, now picking up Argo

Tea and several items from dairy and dairy-alternative giant WhiteWave Foods. Argo brand offered by Chicago-

based teahouse chain of that name adds superpremium tier to tea portfolio dominated by Honest Tea (tho co also

has added Purity Organic’s supertea line recently), moving brand into house with greater call frequency at Whole

Foods than prior natural/specialty partner and offering better route into c-store channel. Meanwhile, WhiteWave

gets house into 2 burgeoning categories, plant-based milk alternatives and shelf-stable cold-brewed coffee, said

Big Geyser coo Jerry Reda. If they succeed, those WhiteWave brands won’t be going elsewhere anytime soon:

Jerry said partners have signed longterm exclusive deal.

Those newly added brands were on view at annual Spring & Summer Kickoff event held at Marriott hotel in

Uniondale, LI, in recent days, with retail customers and sales staffers getting sneak preview of new brands and

line extensions on Fri at supplier expo held in hotel ballroom, followed by selling-skills workshops for staffers

thru weekend. BBI was granted access for coupla hours on Fri to expo floor that enjoyed steady stream of

retailers and other key accounts greeted by Geyser ceo Lewis Hershkowitz, whose father Hal Irving founded co,

and his brain trust. Guests ambled among booths operated by suppliers and frequently restocked buffet tables, as

cocktail makers proffered concoctions made with brands like Sparkling Ice and rock band occasionally played at

Monster Energy booth.

“We have never been more excited about our future, due to our diverse portfolio of high-growth, category-leading

and emerging brands in all of the key beverage categories that are experiencing significant growth in our industry,

such as water, sparkling water, enhanced water, seltzer, cold-brew and traditional coffees, teas, plant-based milks

and energy,” said Reda. Reflecting on his 17 years with co, Jerry added that he can’t recall a time that house

carried so many in-demand brands – several of them NY-centric – across so many categories.

Key element of context is departure of Glaceau brands Vitaminwater and Smartwater 2 years back, in Mar 2014,

which blew big hole in portfolio, causing volume hit to some indie route owners of one-third or more (BBI, Jan 2

2014). Counterbalanced against that, house has been riding several of NA segment’s biggest growth stories –

including Monster Energy and Sparkling Ice – while latching onto several newer brands that are showing

breakout potential, including Core and Essentia waters and Body Armor sports drinks. Tho Coca-Cola moved its

Glaceau brands to its captive Coca-Cola Refreshments distribution arm, it has kept its VEB incubation portfolio –

Honest Tea, Zico Coconut Water and Illy coffees – parked at Geyser. Reda believes recovery of lost Glaceau

volume is in sight over next year or so, with help from Monster and Ice’s continued strong gains, explosive

growth of some younger brands and steady addition of others, including with new strategic partner WhiteWave.

In quick interview at expo – he had to escape to hotel lobby to dodge endless throng of well-wishers – Jerry

termed Core’s recently intro’d Core Organic line extension as a “home run – Vitaminwater 2.0” thanks to unique

combo of enhanced water, low-glycemic formulation, organic and non-GMO certifications and calorie count of

less than 5 per full bottle. As noted in BBI, brand’s aggressive entry into city appears to have precipitated some

angst at Bai, potential breakout brand parked at rival wholesaler (BBI, Mar 4). Tho some have pointed to

packaging similarities between Bai and Core Organic, Reda was quick to assert that Core Organic reprises Fuze

Slenderize line created by Lance Collins, who also created Core. A decade ago, Big Geyser was biggest

Slenderize market in US, and Reda views Core Organic as “Slenderize 5.0.” So it hasn’t been hard to get route

owners behind brand and, judging at least by its first 3 months on Geyser trucks, when it hit 90-day projection in

first 5 weeks, Core Organic is looking like “most successful launch in our history,” Reda said.

On bottled-water side, Reda is as bullish on Core’s water entry and on alkaline play Essentia. Both were just

approved regionally at CVS drug chain, and are well suited to go after Bai, Vitaminwater and Smartwater

consumers. As noted in past in BBI, Vitaminwater- and Smartwater-branded coolers are often spotted around NY

stocked with Core, Essentia and other Geyser items.

Then there’s Monster Energy, which a few years ago was pried away from local Bud and Coke distribution

operations after failing to make much of a dent in Red Bull’s local dominance. “Every day we find new

opportunities,” Reda enthused. “They’ve been a great partner. We’ve legitimized Monster in New York, and

they’ve been incredibly supportive from top to bottom.” He acknowledged that there’s still work to be done, after

rival Red Bull “had the key to the city for 15 years.” Entries like Monster Ultra’s white-can flavor – which he

views as a cross between Sprite and Fresca – has allowed sales force to do well selling energy brand on taste, at

time Red Bull’s flavor extensions remain modest part of overall mix.

Sparkling Ice continues to grow every month, throughout the seasons, with Geyser focusing on multi-bottle

strategy up and down the street. As for Body Armor, Reda has been steadfastly bullish about sports drink since

its launch, saying its growth curve has continually eclipsed that of Vitaminwater at similar stage of development.

Selling it as an all-natural upgrade to Gatorade and Powerade is straightforward, and frequent promos at 4 for $5

lower barrier to consumer trial. Newest flavor, black-bottle Blackout Berry, has quickly become #2 flavor.

Effort is helped immeasurably by familiarity with NY landscape of cofounder Mike Repole, who worked closely

with Big Geyser to build Vitaminwater in city a decade ago. “It’s finally in a good place,” he said of brand.

Among other key brands, Honest Tea continues to grow, in only market, Reda noted, where it outsells Pepsi’s

fast-growing Lipton PureLeaf premium teas. After years of patience with Hint and Hint Fizz essence waters,

Geyser is seeing 30-40% growth each month. Zico’s move of bottled line to not-from- concentrate formulation

should help, Reda believes. And protein brand Muscle Milk – which is ensconced in Pepsi bottling network

elsewhere in US but has remained loyal to Geyser as brand’s first DSD house – has been on innovation jag that

Geyser execs didn’t expect after acquisition by meat products conglomerate. “I was petrified when Hormel took

it over,” Reda readily confessed. But brand has brought “incredible innovation,” dropping sugar in core line and

bringing out Greek yogurt smoothie line, organic entry and Pro 40 line that have all done well.

Other brands include NY staple Apple & Eve juice drinks, Boylan’s and Grown Up Soda natural soda brands,

Purity Organic juices and teas (tho Geyser doesn’t carry co’s coconut waters, viewed as conflict with Zico) and

Lorina, viewed as good landing point for consumes gravitating away from conventional CSDs. Snack brands like

Beanfields and Deep River comprise 5% of biz.

That leaves Hal’s Seltzer, first brand that Geyser itself has launched, named for founder Hal Irving. Hal’s started

off slowly a couple of years ago, Reda and Hershkowitz allowed, but label upgrade and dedicated brand mgr have

got it humming now, winning 7-Eleven and CVS regional authorizations and disrupting seltzer category with its

99-cent price point. Because sales are outstripping its production capabilities, brand is sticking to Geyser’s NY-

area footprint so far rather than taking brand to other wholesalers in region, focusing its single-serve bottle on

both chain and mom-and- pop accounts, preferably those inclined to carry just a single seltzer brand. Low price of

all-natural brand allows retailers to go out aggressively at 99 cents vs higher-priced established brands or to

simply pocket a substantial margin. Whatever works for them works for Big Geyser, Lewis said.

Still, it’s unpredictable time in bevs that makes for tricky navigation for distributors. While Geyser seems to have

landed the lion’s share of promising new shelf-stable brands, aside from Bai, housed crosstown at Dr Pepper

Snapple operation, it doesn’t play in refrigerated segment that’s been stoked by cold-pressed juices, kombuchas

and cold-brewed coffees, small segments that are enjoying explosive growth and high retail price points. In

recent months Big Geyser analyzed entry into cold segment but concluded that margins were insufficient to

balance expense and complexity. So for now at least, it’s left that segment to indie operators like Dora’s

Naturals, Rainforest and Gourmet Guru.

Then there’s Coke relationship. Over past decade the two parties have forged durable relationship, with Big

Geyser among first non-bottler partners to garner role incubating new KO brands as Coke sought to think outside

the box on innovation. But their cultures could not be more disparate and there have been predictable clashes

over the years. Biggest schism led to departure of Glaceau brands, and for a while a year ago it seemed VEB

brands might follow. But relations with Coke seem to be back on smooth track, and Geyser has helped NY

remain one of country’s last reliably premium markets for Honest Team, even as wholesalers has suddenly made

Monster Energy brand ubiquitous, growing at fastest rate in nation, Jerry said. Still, there’s concern that not just

the VEB brands but even Monster could move on down road, not over performance issues but rather as Coke tries

to sweeten pot for potential franchisees of struggling CCR operation in NY, which is beset by union woes and

loses tens of millions of dollars each year. (Tho Big Geyser is believed to have been approached in past as

potential franchisee, Geyser execs have been adamant that such a move would distort focus on high-growth,

premium brands and force them to abandon non-union strategy that’s been key to success.) With Coca-Cola

lately saying it wants to have national refranchising concluded by end of next year, that prospect suddenly doesn’t

seem so distant. No doubt that’s adding sense of urgency to land and build next generation of breakout brands.

Right now, Geyser’s odds of doing so seem pretty good.

Federal court has granted final approval for settlement – 7 years in the making – that will preclude Coca-Cola

from continuing with many of health claims that were crucial to building of brand over years. Deal approved by

Magistrate Judge Robert Levy of US District Court for Eastern District of NY bars KO from making health

claims or using statement like “vitamins + water = what’s in your hand,” “vitamins + water = all you need” and

“this combination of zinc and fortifying vitamins can . . . keep you healthy as a horse,” noted Center for Science

in the Public Interest, which teamed with law firms Reese LLC and Scott & Scott to bring suit 7 years ago. Coke

also will prominently add phrase “with sweeteners” on 2 spots on label where the brand name appears.

WhiteWave

Foods has thrown its hat into cold-brewed coffee realm, launching shelf-stable Stok line packed in glass bottles

and seeking DSD representation. Tho line had been rumored to be on way (BBI, Feb 11), WWAV kept cards

close to vest, not mentioning Stok in extensive new-products presentation at analyst presentation in Feb (BBI, Feb

18). But it soft-launched brand in recent weeks in 48-oz multiserve bottle at Shop Rite stores around NY, backed

by ad in local editions of USA Today, and Hannaford Bros website has suggested brand is on way there too.

Tho brand showed face to world in multiserve entry, workhorse will be 13.7-oz glass bottle priced about $3.39

and positioned as “not too sweet,” in initial flavor range of Black (80 calories per bottle, via cane sugar) and

Vanilla and Mocha (with reduced-fat milk and cane sugar, at 130 calories). Brand opts for label dominated by

large sanserif typeface denoting brand name, Stok Cold-Brew Iced Coffee, and origin as “low & slow 10-hour

brew.” Cap is adorned with color-coded ribbons denoting flavor. It’s due to start shipping on May 9,

piggybacking DSD system that WhiteWave has been cultivating starting with launch of shelf-stable versions of

its almondmilk and cashewmilks. Those 12-oz PET packs are out in Vanilla and Chocolate flavors and were

tested at Polar in New England and Lenore in San Diego before rolling out more broadly, including to Big Geyser

in NY (story below). To get footing in novel realm of DSD, WhiteWave last year brought aboard 10-year

MillerCoors vet Eamonn McSweeney, as distribution mgr for DSD. Eamonn told BBI that Stok has been

accepted at DSD houses like Big Geyser in NY, New Age in Denver and Lenore on West Coast, with other

assignments due soon. Having run with almondmilk and cashewmilk lines, Polar would seem to be logical home

for Stok too, but no word on that yet.

Talking Rain, which has parlayed a sweetened but zero-calorie refresher line into the Sparkling Ice juggernaut,

finally is releasing an unsweetened essence water under the Ice brand name. Sparkling Ice Essence of Water

subline offers a response to surging LaCroix sparkling water, tho package configuration and DSD orientation will

preclude Talking Rain from matching rock bottom pricing of direct-shipped LaCroix, often seen at $4 per 12-

pack of cans, or even lower. Instead, it’s being line-priced with core Sparkling Ice line with view, ceo Kevin

Klock said today, to offering retailers greater margin than canned entries while still bringing consumers greater

value than in higher-end imports and the like. (Made from just water and natural flavors, it’s also first Ice item

that can go into natural channel.) Kevin said new subline is going nationally into Target, and also into selected

regional markets: western states, the Northeast and parts of Southwest.

Subline is being offered in unflavored Essence of Water and 3 flavored versions: Essence of Lemon Lime,

Essence of Peach and Essence of Tangerine. To set it apart from rest of line, barrel of bottle is kept largely clear,

but carries same fruit-within- ice-cube image of other Ice items. Item popped up at some online retailers last week

and was also on display at internal expo held by NY distributor Big Geyser on Fri (story below). Kevin discussed

it briefly today on phone from Hawaii, where he was attending retail-related event.

Launch resolves internal branding debate over how to offer response to surging sparkling essence water realm,

particularly inroads being made by canned LaCroix line from National Beverage that owns lower-priced tier.

Since Talking Rain has made commitment to steer new items to its DSD network to help insure that those

wholesalers stay robust, going direct was not viewed as an option. And while co has offered similar items

regionally in Pacific Northwest base for 20 years under Talking Rain brand, “from a brand standpoint it didn’t

make sense to put a campaign behind Talking Rain” since new entry would be targeting existing Ice customers

whom research indicates are occasionally seeking to sate “unsweetened moments.” So launching subline under

Ice brand, in Ice’s 16.9-oz bottle, will test whether that brand can indeed extend into other areas connoting

refreshment, Klock figures.

Separately, Preston, Wash-based co has shunted its Half & Half offering from lemonade subline to tea subline, in

view that style really should be classed as a tea. As reported, co prefers to get tea subline seeded in grocers’ tea

shelf sets, tho it’s happy enough if subline just garners more facings in core Ice set.

Coffee culture is coming to your car soon:

Baltimore-area startup called Mojoe Brewing Co has devised portable coffee brewer that hooks up to your 12-volt

car adapter so you can brew a fresh cup of joe while you drive. Mobile Personal Mobile Brewer, in slightly

oversize but stylish travel mug, is rare item that can heat up water to required 200 degrees F rather than relying on

external source, say, from office cooler, a feat accomplished by patent-pending process the co calls VacDrip that

uses steam to push water thru grounds. Effort yields 8.5-oz cup of coffee or tea. Launched by youthful

mechanical engineer named Joseph Hyman, it was 3 years in development, getting off ground via Kickstarter

effort in Jan that handily beat $20K goal to tune of $86K. To gear up production, ceo Hyman and his

cofounder/coo Alexandre Wing have recruited friends and family as investors while generating cash flow from

presales of units at $89 a pop. (They said SRP when generally available will be $119, which seems to be price

drop from $149 listed on website.) Fledgling co was exhibitor at last night’s Digital Focus gizmo showcase

hosted by Pepcom at NY’s Metropolitan Pavilion. Joseph said co is working on rechargeable battery that will

enable users to brew coffee far from electricity sources. Info at MoJoeBrewing.com.

Whole Foods yesterday filled in a few more details of sweeping strategic

shift that’s underway, as it prepares for shift to category mgmt structure. In memo signed by Don Clark, global

vp for non-perishables purchasing, co said it will usher in category approach via pilot in frozen foods dept in 2

regions, Northern Calif and Rocky Mountain (Colo). It was Clark who presided over meeting at Expo West at

which retailer sought to outline new strategy to vendors who’ve been concerned about exec departures, staff

cutbacks and lessening of stores’ autonomy (BBI, Apr 7).

Top role, executive coordinator, still is in process of being filled, but senior coordinator roles have been assigned

to sr coordinator David Lafferty, who handles dry, dairy and bulk groceries, and sr category mgr Matt Jimenez,

handling the frozen foods where category mgmt pilot is focused. Matt has been sr procurement coordinator under

current system. On Lafferty’s team are Jason Stein, David Woods and one more spot still to be filled; Jimenez’

team includes Eric Cusimano (formerly buyer and product developer on Exclusive Brands team) and Lee

Robinson (perishables buyer in Mid-Atlantic region).

“During this pilot phase our Grocery team will continue to maintain the current category review program,” Clark

advised. “However, we anticipate this program to evolve into a traditional category management platform once

we’ve finalized the program specifics.”

With buyer and category mgr assignments still in flux, retailer also has inaugurated more anonymous submission

process for new items that requires mfrs to submit info to alias Web site at

This email address is being protected from spambots. You need JavaScript enabled to view it.. Status updates will be auto-generated with product

decisions made by purchasing team on weekly basis, per separate memo from Jimenez. Matt advises vendors to

no longer approach him or Stein or Lafferty, who run the current category review process, with new items.

Looks like rumor at Expo West last month has panned out:

natural/organic sales agent Ignite Sales Mgmt has agreed to sell to Acosta. Ignite, which positions itself as

outsourced sales force for food and bevcos in natural space, joins $2 bil sales, marketing and merchandising co

for undisclosed terms. Deal doesn’t include Ignite’s Incubate and Insights divs, which co said will become

separate businesses not affiliated with Acosta. (On incubation front, Ignite has been visible and involved partner

of AccelFood in NY.) “By joining forces with Acosta, we will be able to provide our clients with new and more

sophisticated resources to drive profitable growth and sales,” said Ignite founder/prexy Kent Pilakowski in

statement. Move will offer his team “best-in- class training and career advancement opportunities,” while

enhancing services offered to clients. The 2 cos had worked together for some time. Ignite was represented by

Whipstitch Capital in transaction. Word about deal had bubbled up as far back as Natural Products Expo West

several weeks ago (BBI, Mar 14).

After lotsa speculation that ran even to China, Starbucks has

disclosed location of its 2d shoppertainment-oriented Roastery: New York’s trendy meat-packing district, image-

building mecca where Pepsi just announced plan to open cocktail lounge. New site, due to open in 2018, will be

5K sq ft larger than expansive 15K-ft Seattle location of original Starbucks Reserve Roastery & Tasting Room,

retail extravaganza where co’s high-end Reserve-branded coffee is roasted for sale at retail amid throngs of

consumers imbibing coffee, wine and craft beer. It’s not been unusual to see lines of coffee lovers and tourists

waiting to get in. NY site will be “even bigger and bolder, celebrating coffee and craft in a unique and

differentiated way,” chmn/ceo Howard Schultz said in statement. “We want this experience to tell our customers

that we’re coming to Broadway.” Ex-New Yorker is speaking metaphorically: location is 9-story office building

designed by Uruguayan starchitect Rafael Vinoly that’s going up at 61 Ninth Ave, steps away from High Line

attraction but on opposite side of Manhattan from Great White Way.

They’re calling it TrueToniqs 2.0: seven-year- old bev supplement that’s been revamped to

improve herbal ingredients, broaden functional range, improve value proposition and win organic certification.

At recent Natural Products Expo West, familiar bev consultants Danny Rubenstein and Janet DiGiovanna of Dash

Advisors said they’re devoting most of their time to lightly carbonated brand, with Danny taking over as prexy

about a year ago after ushering through rebranding and reformulation with help of agency LRXD. Brand’s

founder continues to fund project while keeping distance from day-to- day. Duo retained ayurvedic doc to devise

recipe with more efficacious herbal blend, using ingredients in more concentrated form via CO2 extraction

method. They took out sugar from core Brain Toniq entry and added 3 more sku’s: Fit Toniq, Zen Toniq and

Immuno Toniq. Packaged has been changed from 8.4-oz slim can to 12-oz slim can, at same $2.99 SRP. Brain,

Zen and Immuno are sweetened with blend of cane sugar, erythritol and stevia, at 35-45 calories per can, while

Fit eschews cane sugar and comes in at 5 calories. They’re not making any claims, instead emblazoning on cans,

“How you feel is all that matters.” They claim to be in about 1K retail doors, starting in specialty and now

broadening to conventional grocers, with plan to double # this year. Info at TrueToniqs.com.