There really seems to be new world emerging in fast-casual eating

realm. Last week we detailed out-there bev program being installed at Chipotle Mexican Grill location in

downtown Denver (BBI, Apr 1). Now it’s California Pizza Kitchen’s turn to try to turn heads of sophisticated

diners, with food/bev program being implemented at 8K-sq- ft location within MGM’s new outdoors

dining/entertainment venue The Park on Las Vegas’ Strip. As at Chipotle, much of statement-making effort on

bev side at CPK is behind alcoholic offerings, including reimagined takes on classic cocktails and seasonal entries

like Blood Orange Tequila Mule, with Cazadores Reposado Tequila, ginger beer, blood orange puree, fresh lime

and OJ, and something called Seasonal Harvest Sangria. But it’s also offering range of fresh-pressed juices and

low-cal, mocktails handcrafted from fresh fruit and veggie purees, herbs and chia seeds, topped with sparkling

water.

Unit will appropriate cues of cutting-edge urban restaurants including open hearth kitchen allowing guests to see

their food being prepared from scratch and garage-style glass doors that open up to balmy Nev evenings. Fare on

food side includes chain’s first burgers (direction Chipotle also is moving in), globally influenced items like

Charred Shishito Peppers, a Harvest Kale Salad, and Power Bowls with fresh veggies, superfoods and “protein-

packed ancient grains.” Program will be replicated in store in nearby shopping center called Downtown

Summerlin but not elsewhere yet.

Carbonated soft drink volume was

basically flat for 4 wks thru Apr 26, per Nielsen all-channel figures reported by Morgan Stanley’s Dara

Mohsenian. CSD volume improved from -2% for 12 wks to just -0.1% for 4 wks. Latest period includes Sat

before Easter holiday and “this likely boosted category growth across the board except in the immediate-

consumption energy drink category,” wrote Dara. CSD prices rose an avg 1% for 4 wks vs +1.7% for 12 wks,

with each of top 3 suppliers posting deceleration in pricing. Volume for full-calorie CSDs was up 1.5% while

diet brands were off 4.1%, continuing longstanding pattern.

Coca-Cola CSD volume swung from 1% decline for 12 wks to 2% gain last 4 wks. KO avg prices were off 0.9%

(vs 0.9% increase for 12 wks). PepsiCo volume improved to -0.9% for 4 wks, up from 2.7% drop for 12 wks.

PEP avg prices were up 0.9% in latest period. Dr Pepper Snapple slowed its volume decline to -1.6% last 4 wks

with solid 2.5% price increase. Easter shift didn’t bring much lift to private label CSDs however as high prices

(+3.5% avg) contributed to 4.6% volume drop. That’s in line with private label declines for 12 wks.

Slower Energy Gains; Red Bull Down Slightly Energy drink volume was up 4.8% on flat pricing last 4 wks

thru Mar 26. That’s slower than category gains for 12 wks (+5.8%) and 52 wks (+7.7%). Monster Energy gained

5.4% with avg price increase of 2.3% last 4 wks. That’s generally in line with MNST volume gains for 12 wks

tho pricing is down a bit. Red Bull volume was down 1.5% last 4 wks on modest (0.9%) price increase. That’s

down from 1.5% gain for Red Bull for 12 wks. Rockstar volume was up 8.5% (vs 11.9% gain for 12 wks) on avg

price increase of just 0.3% last 4 wks. PepsiCo (Amp) posted solid 10% gain with 0.8% price bump last 4 wks.

(But recall Pepsi distributes Rockstar in most of US, too.)

Powerade Gains Accelerate on Lower Prices Sports drinks volume trends improved to +5.1% with avg price

increase of 0.3% last 4 wks. That’s up from 3.5% gain for 12 wks. PEP’s Gatorade volume gain of 2.9% on avg

0.7% price increase last 4 wks was in line with its 12 wk trends in all channel stores. KO’s Powerade volume

improved to +9.3%, (up from +4.3% for 12 wks) last 4 wks as avg prices went lower to -3.2%. Private label

gains accelerated to +17.5% on solid 6.1% avg price increase last 4 wks.

Water Volume Gains Continue Bottled water volume increased 8.6% last wks on avg 1.5% price drop in all-

channel. That almost matches category gains for 12 wks. Nestle volume declined 0.4% as avg price gains

accelerated to +1.1% last 4 wks. Coca-Cola bottled waters improved to +8.7% last 4 wks with boost from avg

2.5% price drop. KO water prices still up 0.7% for 52 wks. PepsiCo water gains slowed but continued to

outperform, rising 11.8% last 4 wks with avg price drop of 4.3%. PEP water prices down 4.5% for 12 wks, 3.7%

for 52 wks. An avg 5% price decrease helped lift private label brands to 15.9% gain last 4 wks.

After selling their

Ariz Bud house Golden Eagle to Hensley, prexy/co-owner Kimberly Clements and her former vp sales &

marketing Dan Lust have launched consulting biz called PINTS LLC. New venture, whose name stands for

Partners Invested in Transformational Solutions, offers “objective business planning and strategic growth

solutions for the beverage industry, primarily tailored to the craft beer segment with an emphasis on branding and

marketing strategies, growth planning and development and succession planning.” Among notable activities at

Golden Eagle, beer house was among first in Bud system to move beyond its franchise territory with its non-A- B

brands, effectively becoming rival of Hensley in manner that often has incurred wrath of A-B, which wants its

wholesalers to stay within their franchise footprint. Its statewide NA operation, dubbed Spike, built reputation as

solid option in state. Info at PintsLLC.com.

It’s creation myth that has familiar ring on a coupla counts. Kid

creates bottled lemonade – Make a Stand, anyone? Austin entrepreneur employs grandma’s recipe for new

venture – Sweet Leaf Tea? After receiving $60K investment on ABC’s Shark Tank show, 6th grader Mikaila

Ulmer has secured authorization for her BeeSweet lemonade in 55 stores across 4 southwestern states at Whole

Foods, NBC News reported. The 11-year- old claims to have used 1940s recipe from her grandmother that

employs flaxseed, Texas wildflower honey and mint. She’s about to rebrand the line Me & The Bees. As noted

recently, Make a Stand is in doldrums these days, having tilted effort from cause-marketed lemonade to charity

crowd-funding app that hasn’t garnered a great deal of traction (BBI, Mar 15). Brand is out in Mint, Ginger, Tea

(half & half) and prickly pear flavors, sweetened with cane sugar. Label of 12-oz bottle sports photo of Mikaila

as well as image of bee to flag bee-saving brand mandate. Info at BeeSweetLemonade.com.

Trying again to win ground in premium space, AriZona Beverages has formally launched newest

all-natural, non-HFCS tea entry, Good Brew, 6-flavor line made with real sugar for what’s touted as “fresh home-

brewed taste.” Long Island, NY-based co had first teased entry at NACS c-store expo in fall 2014 (BBI, Oct 16

2014). New brand is getting limited launch in Walmart stores on East Coast, Shoprite groceries in NY metro area

and Publix in Fla, in 20-oz single serve bottles priced at $1.79 and 59-oz multiserve jugs at $2.59. It dials down

sweetness level slightly from core big-can recipe, to 60 calories per serving, and eschews artificial flavors, colors

or preservatives. It’s claimed to be brewed from leaves sourced in Indonesia, Argentina and Kenya that contain

unusually high antioxidant content. “Deliciously complex and rich in flavor, one sip of Good Brew and you will

taste the difference. It’s the best tea we have ever created.” Initial flavor range is Unsweet Tea, Sweet Tea,

Lemon Tea, Green Tea, Arnold Palmer Half & Half and Peach Tea. Recall that AriZona has struggled in recent

years to build out beyond core value-tea franchise with entries targeting higher-value niches despite ambitious

entries that have gone so far as to employ wine- or beer-style barrel-aging. “I think the ingredients speak for

themselves,” said co-owner Wes Vultaggio, son of cofounder Don Vultaggio.

Dr

Pepper Snapple Group, which until recently was outspokenly resistant to high-multiple investments in outside

emerging brands, has upped its stake in Body Armor in deal that suggests new-generation sports drink has

enterprise value of nearly $300 mil. DPS said it wrote check for $6 mil last month to up its stake in Body Armor

from 11.7% to 15.5%, following initial investment of $20 mil disclosed last Aug. With addition, DPS moves into

2d place among equity stakeholders, trailing only cofounder Mike Repole, ex-Glaceau exec who took over day-

to-day mgmt reins of brand from cofounder Lance Collins (ex-Fuze) a coupla years ago. Other significant

shareholders include Lakers star Kobe Bryant (who’s associated with 8th and newest flavor, Blackout Berry,

much in way rapper 50 Cent was tied to big-selling Vitaminwater flavor during that brand’s indie growth spurt).

Brand launched by Collins, with Repole in behind-scenes role, has steadily been building presence within DPS

distribution system since 2013 to point where so-called white system brings it to retail in 34 states now, with indie

DPS shops handling brand in many other areas. Brand has given DPS a credible play in sports drink segment at

what it views as nominal cost, particularly after expensive fiasco of its own launch nearly a decade back of short-

lived Accelerade line. Plano, Tex-based co was careful to note that investment won’t have material impact on its

financial statements. Brand has been enlisting range of familiar athletes as investor/endorsers, including likes of

Mike Trout, Andrew Luck and Buster Posey.

Inko’s White Tea has set marketing direction that plays up revamped lower-sugar organic

formulation while adopting disarming style to keep bottled line approachable and fun. New video viewable here

https://www.youtube.com/watch?v=C36k3qMMBjM offers fanciful origin story for brand featuring talking,

Dude-like shrunken head figure named Inko dangling from necklace of guy named Murray whose ancestors

captured him after shipwreck which he survived by clinging to chest of nutritious white tea. Got that? Under

team assembled by new owner Kevin Kotecki, a former Coors and Pabst exec, brand has upped white tea content,

dropped sugar level and won organic certification, but it’s been keeping price affordable and video’s tagline touts

line as “just a little better.”

Marketing chief Andy Horrow told BBI that to build awareness he tapped agency JWT Atlanta, whose creative

dir Tom Wilson earlier had worked with Horrow on Gatorade brand, and extended lotta creative leeway to entice

agency to bring in memorable creative on tight budget.  “They were happy to help us because it was fun for them

too,” he said.  “We gave them a lot of creative license in an effort to stand out and inspire them.”  As for creative

premise, “healthy doesn't have to mean bland, personality-less.  We’re trying to create a fun way for people to get

to know the brand — whereas most ‘healthy’ teas personify their brands with tea leaves and tea farmers.”  Over

past week or so video has been edging out on social media and PR to Inko’s mailing list, but co will hit gas next

week with YouTube buy.

Launched in 02, Inko’s pioneered use of ingredient in RTD space but operated too leanly to devote significant

resources to marketing brand, even as deeper-pocketed big tea players began to incorporate white tea into their

portfolios. As for brand’s name, shipwrecks and shrunken heads aside, it was named after dog of founder Andy

Schamisso, who’s moved on since selling brand. The dog apparently wasn’t included in sale.

Plenty of tea action across diverse range of styles and formats at Expo West. Here’s trio of brands that caught our

eye.

Thea’s English Standard Tea Offers Unsweetened Take on Tradition Thea Scotti, native of Brighton, England,

who’s worked in restaurant biz and now is based in Hudson Valley town of Millbrook, NY, was out to create an

“unsweetened tea that tastes like tea.” For her Thea’s English Standard Tea, she and Brooklyn-based partner

Ariel Higgins Sims went straight to proprietary 16-oz jar-like glass bottle that Thea feels is substantial and

signifies craft and tradition, in flavors like Green Honey, Black Rose, Red Mango and Wonderberry, a decaf

entry. Red Mango, for instance, melds black tea, hibiscus, rosehip, rooibos, mango and orange blossom.

(“Serving suggestion: barefoot & carefree.”) Scotti said she’s willing to take her time building out the brand

regionally, starting with foodservice channel in metro NY where it’s commanding $4.50 per bottle. But

Facebook page also indicates brand is showing up at outlets like LA’s Rakken Tacos.

Moonshine Sweet Tea Wins Chainwide Role at Sprout’s Recall that Austin-based Moonshine Sweet Tea was

launched by Joele Porter using family recipe dating back to 1946 and has as core investor a vet of gold biz,

Milton Verret. It started as concentrate back in 09, then coupla years ago added cane-sugar- sweetened RTD line

(BBI, Apr 4 2014). It employs 16-oz straightwall glass bottle with white label sporting traditional-looking

graphic and promise that it’s “lip-smackin’ good.” It goes out at $1.99 promo’d at 2 for $3. After brand

established base in Tex institutions like HEB, Whole Foods, Stubb’s Barbecue and Austin’s Wheatsville Co-op,

Verret recruited Miller Brewing and Rockstar vet Kevin Conrad as evp sales with mandate to build it out

nationally. By now Kevin’s got brand in 4K stores in 28 states, including healthy dollop of 7-Eleven and Circle

K c-stores. Sprout’s is taking brand nationally next month, Kevin reported at Expo, and Whole Foods’ Florida

div is picking it up too. It’s running with 6 flavors now, including Original, Sweet Peach, Mint Honey and even

an Unsweet sweet tea, and has 6 more ready to go as needed, Milton promised. Unlike many new players, shelf-

stable brand has commitment to DSD, using options like beer house Brown in its home state and indie Pepsi

bottlers in Pacific NW.

Tho Tea-Based, Blue Buddha To Be Marketed More as Functional Brand Chicago-area group led by Kevin

Kotecki that’s aiming to build bevco around Inko’s White Tea acquisition was ready to unveil makeover of 2d

acquired brand, Blue Buddha ayurvedic tea line. Tho line is tea-based, co intends to market it less as a tea than as

a benefit-driven brand along lines of non-tea entries like KeVita, Suja and Mamma Chia – “almost like a tonic,”

said marketing chief Andy Horrow. “We took the best of Kris’ ideas and romanced them further,” he added,

referring to brand creator Kris Whalen, who moved on after sale. As earlier reported, new owners streamlined

ingredient list to include meaningful amount of ashwaganda, maitake mushroom and Indian gooseberry to support

claims, and rendered recipe uniform among 4 flavors so that consumers were no longer forced to choose between

favorite benefit or favorite flavor, Vitaminwater-style. Brand is packed in straightwall 14-oz glass bottles priced

at $2.99, with flavor lineup of Raspberry Hibiscus, Lemon Elderflower, Blueberry Rose and Cherry Lavender.

The 3 key ingredients allow brand to tout its benefits toward “acuity, immunity, vitality,” as “not just another

tea,” per tagline. Meanwhile, co is starting to offer first glimpse of whimsical marketing direction it will take to

build awareness of Inko’s White Tea (story below).

Chipotle Mexican Grill has brought on

respected sommelier Richard Betts to revamp its bev program at store in its Denver home base, with potentially

chainwide implications. Tho many of Betts’ activities at Sixth & Broadway location are focused around alc bev

programs, his moves include addition of cane-sugar- and-stevia- sweetened Coke Life as fountain drink thereby

eschewing use of HFCS, as well as fountain version of Coke’s all-natural Blue Sky sodas (brand it acquired from

Monster Bev). In both cases, that’s first time brands are available on guns, Chipotle says. On packaged side,

Pepsi’s Izze sparkling juice and Starbucks’ Evolution Fresh juices have made cut. Move is seen as way to

improve consistency after fast-casual chain launched “Food with Integrity” initiative and moved to non-GMO

menu that continued to include GMO-containing fountain drinks. Of course, it’s also in rebuilding mode after

pathogen issue a few months back, program that includes giveaway of millions of coupons for free burritos. (BBI

editor used one and is still alive to write about bev program.) Bev program, detailed by local media outlet

Westword, includes bevs made in house that include a watermelon agua fresca drink, a hibiscus tea with rooibos

tea and lemongrass, and an iced tea branded as In Pursuit of Tea using leaves sourced directly from growers in

India.

On alc side, currently just 2% of sales at chain, Betts has added Oskar Blues Beerito Mexican-style lager on draft

as well as Mexico’s Modelo Especial in cans. On wine side is organic sangria from Calif. And Betts is melding

his own mezcal brand, Sombra, with Astral Tequila, agave syrup and fresh lemon and lime juices for margarita.

Among parameters Betts is using, per Westword interview, are reducing use of glass containers, using organic

ingredients, finding alternatives to HFCS, positively affecting suppliers’ agricultural practices and wasting less. 

The report indicated that Chipotle has stated no set timeline for test or its potential expansion in Denver and

beyond.

Norwegian import Voss Water appears to

have ousted rival Fiji Water this month from lineup of home and office delivery giant DS Services. Tho it just

came up on our radar, move appears to have first been flagged on Mar 14 in Facebook posting by Voss. DS had

established alliance with Fiji in late 2010, before DS’ acquisition by Cott, signing 3-year distribution deal to carry

South Pacific brand as imported bottled water offering on its expansive HOD fleet as well as to provide

fulfillment of purchases made from FijiWater.com site. Deal presumably was extended another 3 years but Fiji

brand no longer is listed as available on DS Web site even as Voss has yet to make appearance there either. No

immediate response on this from Voss execs.