E-

Hydrate, line of female-targeted protein and hydration drink mixes that rolled out at Target last fall (BBI, Oct 5),

continues to broaden its footprint, now adding GNC as 2d national partner. Meanwhile, after taking 2 core lines

last year, Target is adding 3 new items. Kids On the Go protein pouches, in Cinnamon Roll and Milk Chocolate,

meld electrolytes and 10 g of protein but contain just 70 calories. Newly launching E-hydrate Active Milk

Protein On the Go, in Chocolate flavor, seeks to offer both joint health and hydration benefits via formulation that

includes 12 g of protein, electrolytes, glucosamine and omega-3’s, at 90 calories.  Also picking up E-Hydrate

items are Ingles, Hannaford, Shaw’s and Hy-Vee grocery chains, said sales chief James Kayser. To support its

grocery expansion brand has entered broadliners UNFI, KeHE, Lomar and United Grocers.

PepsiCo has begun rolling out canned 1893 cola and ginger cola brand that attempts to offer craft vibe behind

stalwart CSD flavors, with supporting video aims to ride wave of fascination with cocktail history without

disguising Big Soda provenance of brand. Unlike some of its efforts behind Caleb’s Kola, which downplayed

Pepsi identity, this one brings it front and center, employing year of Pepsi-Cola’s creation as brand name and

attempting to turn co’s lengthy heritage to advantage in supporting items that feature cola nut extract, real sugar

and “dark brown malt flavor.” “Inspired by over a century of cola knowledge from the makers of Pepsi-Cola,”

title in ad notes alongside imagery of century-old Pepsi soda fountain. Video backed by swing jazz soundtrack

depicts young mixologist, with requisite vest and tattoos, at bar deftly concocting array of 1893-based cocktails

using lemon zest, sprigs of mint and other accoutrements (though you never actually see a bottle of booze being

poured). “Premium ingredients and a timeless story,” promises ad. “This is our past made present.” Ad was

posted by TheStreet.com here:

http://www.thestreet.com/story/13508349/1/pepsi-launches- new-soda- in-hot-

category.html?puc=yahoo&cm_ven=YAHOO

For early- and mid-stage

beer or bevcos experiencing accelerating growth that’s outrunning limitations of their existing bank financing,

options have been limited and often less than ideal: convertible warrants or recourse to receivables or purchase

order financing, in which effective interest rates can climb well beyond 20%. Now Dallas-based consultant GBS

Growth Partners has teamed with Bramid Ltd to offer another option: cash flow financing that allows bevcos to

“more prudently manage their cash flow, own all the relationships within the supply chain, and maintain the

equity in their business,” in words of GBS partner Jack Brennan. Under arrangement struck with GBS, Fla-based

Bramid will analyze co’s mgmt team, reputation and financials and, if cash flow is deemed sufficient and stable

enough, offer letter of credit that client can draw down, at interest rate that’s a few points higher than what banks

would offer. Setup works ideally for businesses generating $25-50 mil in sales and marginally profitable, but can

work for those doing just $10 mil with clear path to profitability, too, Jack indicated. “It’s an overlay to your

banks, to keep you out of asset-based financing,” Brennan said. LOCs in these situations average perhaps $3 mil.

Crucially, client continues to own all its assets and relationships with entire supply chain.

Recent Natural Products Expo West effectively was coming out party for BluePrint’s new

strategic role within parent Hain Celestial as “lifestyle brand division,” with cold-pressed pioneer edging into

range of new categories that might help Hain move beyond heavy reliance on center aisles in grocers. Among

new items on view were kombuchas, tonics and teas – the latter, first shelf-stable items offered by brand that’s

been steadily edging away from its initial association with cleanses. Brand was created in 2007 by Zoe Sakoutis

and Erica Huss, but founders moved on not long after Hain acquisition in late 2012.

New-product outburst was result of deep dive BluePrint took into 300K consumers in its database, said Alex

Galindez, former Red Bull and Vitaminwater exec who’s masterminding initiative as gm. Thus, BluePrint

Kombucha emerged from demands for digestion aid, while superfood-enriched teas are for those yearning for

combo of refreshment and functionality. Brand incubator MetaBrand was key partner in devising entries,

meaning Hain/BluePrint is one of unidentified strategic partners the Edison, NJ-based shop had previously

indicated it was close to becoming aligned with (BBI, Jan 15). Tho BluePrint now is migrating into range of

categories, in both refrigerated and shelf-stable formats (the teas), blue cap is to serve as unifying brand identifier.

“BluePrint for Life” is among slogans marking brand’s expanded role.

The kombucha launch benefited from unique situation at Hain: years back, it purchased kombucha plant of indie

entrepreneur in Colo, but it’s never been able to get its Celestial Seasonings-branded kombuchas to ignite. So

BluePrint team was able to plug new item right into captive production site. Tho Galindez didn’t want to go

there, it’s believed move spells conclusion of Celestial Seasonings’ own kombucha efforts via RTD bevs and

shots as BluePrint uses its new lifestyle-oriented strategy to tackle trendy segment. New entry is packed in 14-oz

straightwall glass bottles, at SRP in $3.49-3.99 range. First customer for new line will be Sprouts chain, starting

May 1.

As shelf-stable item, the glass-bottle tea marks new format for brand, as well as new set of retail buyers to

cultivate. Pricing is still TBD. Meanwhile, lots going on in core line. It added pair of BluePrint Tonics,

positioned as “raw vinegar drink,” that offer portable way to settle digestion in morning. They break in Turmeric,

for hardcore users, and Ginger Maple. They’re packed in 10-oz square-footprint bottles of rest of core line. Core

line, tilting sharply away from original positioning as cleanse, also added pair of lower-sugar items, Dandelion

and Watercress, again in response to consumers’ desires. And as anticipated (BBI, Feb 4), co debuted new

pricing, knocking its core 16-oz bottle down to $7.99 at Whole Foods stores and debuting 10-oz bottle that can go

into conventional grocers at $3.99, comparable to rivals like Suja and modest upgrade over Naked and Odwalla.

As earlier reported, the 6-flavor 10-oz range debuts in more crowd-pleasing recipes and names like Nut & Bolt,

Motion Potion and Go ManGo.

Upon “more

thorough investigation” into co’s expenses, Coca-Cola disclosed it had spent $132.8 mi on research and “health

partnerships” between 2010 and 2015, reported NY Times. That’s $14.2 mil higher than what KO had

voluntarily reported back in Sep following media scrutiny of its relationship with org called Global Energy

Balance Network that pushed for more exercise as solution to obesity crisis.

Count Maverick Brands among Expo West exhibitors that’s been unable to resist consumers’ bent for bubbles.

Marketer of Coco Libre organic-certified coconut water, looking for way to differentiate itself and win more

consumption occasions, debuted line of canned Coco Libre Sparkling drinks, concentrate-based entry with no

added sugar in Original, Grapefruit and Cucumber + Lemongrass flavors. Entries clock in at 20 calories per 12-

oz slim can. They’re debuting nationally at Whole Foods as 2-month exclusive before rolling out to other

retailers. As part of alliance, Whole Foods gets exclusive flavor, Lemon Ginger (which Maverick execs tactfully

left off sell sheet so as not to frustrate other retailers).

Maverick, like leader Vita Coco long committed to aseptic boxes as core format, also decided it was futile to

resist allure of cans for uncut coconut water, particularly outside Whole Foods, given clamor heard by sales chief

John Slee. So co has added 15-oz entry priced at $2.19, vs $2.79-2.99 for brand’s half-liter box, thanks to savings

on processing and package. Maverick ceo Candace Crawford said frankly that continued success of rival C2O

with cans – it’s now #3 coconut water player with “nothing but a can” – made it obvious move for #4 player Coco

Libre, which can go in as biggest organic player. Tho conventional grocers were key target of new format, it’s

been accepted off bat by Whole Foods, Candace said. Both Target chain and natural player Sprouts also are

taking can, she indicated.

Intent of both launches, explained former Zico exec Crawford, is to broaden household penetration from still-

modest level. At 2% when she joined Zico in 2009, HH penetration had grown to 7% at time of sale to Coca-

Cola in 2013 and 11.5% last year. Moving coconut water category to 20% penetration level would make it

billion-dollar category, she said.

Meanwhile, Culver City, Calif-based co continues to tinker with its protein line, relaunching it in Vanilla, Coffee,

Chocolate and Almond flavors using recipe that’s half juice and half grass-fed protein. Co also has rethought its

branding, devising cleaner, more modern look that better harmonizes proliferating sublines and package formats.

In brand hierarchy, core line available in plain and pineapple flavors now is being called Essential, buttressed by

protein as Vital and sparkling as Refresh. New products in development now have better-organized brand matrix

to plug into, Candace indicated.

CocoMazing Plies Sparkling Segment via Glass Bottles Coco Libre isn’t only player in sparkling coconut

water space. At Expo, brand called CocoMazing was offered in 12-oz longneck glass bottles, using recipe that

contains 25% juice and cane sugar and stevia in sweetener blend. They come in at 45 calories per bottle. It’s

offered in Limon, Blood Orange and Cherry Pomegranate flavors.

Greater US presence stemming from Apple & Eve acquisition helped shield juice marketer Lassonde Industries

from fluctuations in Canadian dollar, and co is planning to step up activities here this year to further mute impact.

For full year, sales at Quebec-based co rose 23% to $1.5 bil, +10% excluding A&E contribution, and just 2.3% if

foreign exchange impact is excluded. Operating profit rose 26% to $111.3 mil.

“Our 2015 results reveal the flexibility of our business model at a time when a low Canadian dollar is affecting

raw materials costs,” said chmn/ceo Pierre-Paul Lassonde. “Given our greater presence in the United States,

we've been able to limit unfavorable foreign exchange impacts while also benefiting from the sound performance

of our US operations. As the volatility of the Canadian dollar does not seem to be leveling off in 2016, we plan

on adjusting our business strategies to ease the effects of these fluctuations.” In Canada, the low Canadian dollar

has worked to raise food prices, dampening demand. “The competitive environment in Canada remains

challenging, and the company does not see any signs of competitive activity diminishing in 2016,” the co said.

By contrast, it’s observing “slight recovery” in sales growth in US fruit drink market. “The company is seeking

to limit the impact of this increased competition through adjustments to its sales and marketing strategies,

national brand product innovation, and continued private-label customer development,” it said. It expressed hope

it could eke out growth at similar rate to adjusted 2.3% figure in 2016. Co produces drinks under brands like

Everfresh, Fairlee and Rougemont.

Fast-growing Celsius Holdings hit a speed bump in Q4 as it navigated disruption from

change of ownership of its once-humming Swedish distributor, suffering 7.2% net revenue decline to $4.3 mil.

Fla-based marketer of clinically backed “negative calorie” bevs logged net loss of $1.3 mil, reversing $127K

profit the year earlier. The 27% plunge in Sweden, where pair of youthful distribution entrepreneurs had built

brand into #1 fitness drink and #2 energy drink before selling out to Finnish co last year, offset 17% growth in

domestic sales, with all key channels up for period: retail +11%, health & fitness +6%, Internet +71%. Celsius

brass said they expected Sweden to be back on track next qtr, with new owner of distributor launching brand in its

home market, Finland, in May.

For full year sales grew 18% to $17.2 mil, buoyed by 13% int’l growth and 22% domestic growth. Net loss

widened to $2.6 mil from $2.2 mil because of Q4 issues.

On investor call last night, ceo Gerry David said that, Swedish glitch aside, 2015 had proved “breakout year” for

co as it brought in major investment from Hong Kong billionaire Li Ka-shing and his Horizon Ventures as well as

hiphop entrepreneur Russell Simmons and his former wife, designer Kimora Lee Simmons. After years spent

getting financial house in order, CELH finds itself girded for growth, building staff of marketing and regional

sales mgrs, prepping push into Asia this year and broadening retail reach to grocers and c-stores. That’s addition

of potential 8K c-stores via acceptance into 7-Eleven and Sunoco chains last month, juiced by buy-one, get-one

promo 3 weeks ago.

Recently established venture arm at c-store

giant 7-Eleven has taken small stake in marketer of Core Water and Core Organic brands, which have been on

brisk growth path. Brand creator Lance Collins confirmed development, which had been subject of rumors at

recent Natural Products Expo West, saying it’s only small stake, which he declined to specify. Some at show said

they believed Plano, Tex-based 7-Eleven, which has embarked on healthy-products upgrade, had invested roughly

$2 mil for stake well below 10%. Lance emphasized that move doesn’t involve any preferential treatment for c-

store operator over other retailers brand is courting. As noted, unflavored, unsweetened Core water has been

making steady inroads in its year of availability and newly launched Core Organic seems to have had explosive

debut, embraced by indie distributors as potent alternative to Vitaminwater, which moves via Coke system, and

Bai, which moves via DPS system.

In contrast to many indie players pushing sweetened, dairy-based cold-brewed coffees,

Starbucks has opted for unsweetened version in its summer launch of Starbucks Cold Brew Coffee, using same

blend of Latin American and African beans employed in in-store versions that rolled out last year, with smooth

taste and some chocolate overtones. New line, which will launch in select Starbucks stores nationally and grocers

in coastal Wash and Ore and in Denver, is being packed in 9.5-oz tapered glass bottle with deep-brown wrap and

subtle image of Starbucks siren icon at top. SRP will be $3.29. As anticipated, it’s been developed and will be

distributed via longstanding North American Coffee Partnership with PepsiCo, as was presumed during surprise

announcement by channel development chief Michael Conway at roaster’s annual meeting yesterday (BBI, Mar

23). Possible advent of bottled Starbucks version has been eyed with mix of anticipation and dread by indie

players, who’ll welcome awareness burst similar to that occasioned by in-store rollout last year, but find

themselves slugging it out with cohesive partnership that’s proved difficult to displace in RTC coffee realm over

past coupla decades.