BMI Archives Entry

BMI Archives Entry

As always, floor of

Natural Products Expo West was buzzin’ with rumors of deals, exec shifts, celeb alignments, new categories that

strategics are studying. On celeb front, folks were marveling at latest boldface name to be lured as minority

investor to Runa on strength of guayusa ingredient’s power and work the co does to improve lives of growers in

Ecuador: Leonardo di Caprio, who takes minority stake and will do pr to build brand, booth staffers confirmed.

Runa’s been most identified to date with Channing Tatum, who helped set up Runa Foundation . . . One potential

we heard from a few folks: Acosta has approached Ignite Sales Management about acquisition. Co led by Kent

Pilakowski has been building up head of steam in recent years with sales, incubation and insights offering. No

confirmation on this one yet. Kent couldn’t be reached for immediate comment, with email bounceback saying

he’s taken vacation day today . . . Well-known bev figure Ken Sadowsky has accepted board seat on Koa

Organics, Dallas-based marketer of koa olakino juice-derived functional line. Ken also sits on bards of Vita Coco

and Hint. . . Mark and Maura Rampolla, husband-and- wife team who founded Zico Coconut Water, could be seen

roaming floor handing out flier for forthcoming book from Mark called High-Hanging Fruit: Build Something

Great by Going Where No One Else Will. Book published by Portfolio details how former Int’l Paper exec

helped forge coconut water as general-market category, along with personal sacrifices that entailed. (BBI editor

got glimpse of early manuscript and it’s highly absorbing read.) It’s due Jul 19, with half proceeds to go to social

impact ventures. Since exiting Zico, Mark’s been making small investments in plant-based startups under rubric

Power Plant. Rampolla Ventures is now being relaunched to include Power Plant, book and foundation under

rubric “Reach higher,” Maura told BBI.

In show

awash in cold-brewed coffee offerings, count Chicago-based Intelligentsia as latest to throw hat in ring with RTD

offering. Tho co wasn’t ready to show any packaging, it was sampling cold-brew from Ethiopian-sourced beans

out of urn with plan to use glass bottle for May launch, per grocery dir Anita Binder. It will be offered nationally

to grocers and sold within brand’s network of cafes in Chicago, LA and NY. Intelligentsia now is controlled by

Peet’s, whose Stumptown acquisition has been on frontlines of proselytizing for cold-brew via multiple RTD

formats. The 2 sibling cos are proceeding entirely separately with their programs, Anita said.

Vita Coco is about to throw a wrench into

superpremium coconut water segment, launching refrigerated organic version in May that offers many similar

cues to leader Harmless Harvest but eschews HPP processing approach that has aroused gov’t concerns and left

Harmless Harvest scrambling to maintain availability. New entry, dubbed Organic Coconut Water from the Coco

Community, will employ specific variety of coconuts sourced from co-op in Ratchaburi Province of Thailand,

packed in straight-walled plastic bottles, in rare departure from aseptic boxes to which brand has remained

committed. “A grower-owned initiative,” upper label declares. Entry will go out at $2.99 per 8-oz bottle and

$4.99 per 16.9-oz bottle. Vita Coco execs noted that, while HPP may be key part of appeal of Harmless Harvest

to some consumers, the thermal approach they’re using carries no adverse impact to electrolyte content that’s key

attribute of coconut water. So no point in risking safety to use HPP, they reason.

Launch complicates Vita Coco’s go-to- retail strategy, since Dr Pepper Snapple Group DSD network generally

doesn’t have capability of moving refrigerated items. So line will be shipped direct to partners like Walmart and

Target, and move via broadliner UNFI to others, said vp natl accts Tim Dwyer. He said co likely will talk to

DSD players who have refrigerated capacity.

Coco Community augurs broader push to participate in all segments of category, following deep data dive led by

marketing chief Charles Van Es. Syndicated data shows coconut water category to command $1.2 bil in retail

sales. Refrigerated superpremium tier, tho just one-fifth of overall category, is growing at 60% clip, compared to

20% rate for middle tier occupied by Vita Coco. So company wants to get its share of that, tho Kirban

emphasized that success of Harmless Harvest and its peers doesn’t seem to be coming at expense of Vita Coco,

which has been growing close to 40% in natural/specialty, but more likely Zico, ONE, Harvest Bay and organic

entries. Still, at least in major metros, “it’s a place we feel we have a right to play,” Kirban vowed. At some

point down road, co will play in value tier too, he promised. Presumably that would act as shield vs aggressive

price players that Mike has previously described as of concern in category that Vita Coco played key role in

pulling out of commodity status as ethnic play.

On core brand, Vita Coco this year will push harder against multipacks. Fridge pack containing four 1-liter boxes

will contain pouch of coconut oil, offering sampling opportunity for ancillary line that Vita Coco has made a

priority over past coupla years. Given its Brazilian roots, Vita Coco also intends to get a lift out of upcoming

Summer Olympics, prepping new Passionfruit flavor whose packs are slyly adorned with small images of

silhouetted soccer and volleyball players and slogan, “Rio ready hydration.” That should get at least a piece of

action that Coca-Cola is expected to exploit for its Zico brand thru its Olympics sponsorship.

Cleveland-based Ganeden,

which has been aggressively marketing its durable Ganeden BC30 probiotic strain, said some 20 exhibitors at

Natural Products Expo West are offering 60+ items containing patented ingredient. Customers include cos

involved in range of bevs, snacks, powders, kids’ items and even pet-oriented item. A couple had already been

noted in BBI – guayusa-based energy line from Garden of Flavor and cold-brewed coffee from Jus by Julie – but

others on bev side include Forager Project cashew smoothies, Harvest Soul and Urban Remedy juices,

Nutrisystem Turboshakes and Project Juice Tummy Tonic Shot. Co claims BC30 survives 10X better than yogurt

strains and already has made it into recipes of brands that did over $1 bil of retail biz last year.

Mocktails alcohol-free cocktails, a catchy presence on

store shelves thanks to use of 18-oz multiserve bottle in shape of cocktail shaker, is entering single-serve realm

with 6.8-oz bottles that eliminate need “to pour for four.” Boston-based co has been expanding slowly, to point

now where it’s out in Whole Foods stores in New England and Mid-Atlantic regions, local Roche Bros grocery

stores and growing # of indie stores. It claims to have one-third the calories of regular drink mixers and is

available so far in Karma Sucra Cosmopolitan, Vida Loca Margarita, Sevilla Red Sangria and Scottish Lemonade

Whiskey Sour. It’s also adopted new graphic look to dial up sophistication cues.

Fat’s back,

and probiotic player Lifeway Foods is responding. Riding wave of favorable research behind full-fat foods,

Morton Grove, Ill-based co is intro’ing quartet of whole milk flavors to kefir lineup. Newly launching Peaches &

Cream, Coconut & Cream, Strawberries & Cream and Lemon Meringue flavors, debuting at Expo West today,

join existing Plain and Wildberries & Cream varieties available to devotees of whole milk, who’ve lately been

getting clinical support for role that fat can play in healthy lifestyle by creating sense of satiety and thereby

reducing food cravings. From Lifeway’s point of view, line also offers more delectable creamy mouthfeel.

“Whole milk was largely dismissed as a healthy eating option for many years, but now the pendulum seems to be

swinging back in the full-fat direction,” said ceo Julie Smolyansky. New sku’s, packed in 32-oz bottles, contain

same 12 live and active probiotic cultures as low-fat kefir items, plus 10 g of protein, 8 g of fat, and 160-190

calories per serving, LWAY said. All are USDA-certified organic, gluten-free and 99% lactose-free.

Humm Kombucha, Bend, Ore-based brand

formerly known as Kombucha Mama, already has taken cutting-edge role in penetrating c-store channel, building

keg biz, working taproom experience and assembling DSD distribution network in core markets in northwest

quadrant of US. With rebranding dubbed success, co is now ratcheting up activities, with plans to establish 31K-

sq-ft production facility in Bend while setting joint venture with early investor to create Humm Europe to produce

and distribute its raw, unfiltered kombucha on Continent, another first for category.

Speaking at crowded Expo West booth, cofounder Jamie Danek said paperwork was signed just coupla days ago

on new facility, which she hopes to have up and running by fall, retaining existing 5K-ft facility as pilot plant and

for thriving taproom. (She’s believed to have been first kombucha player to open permanent taproom, but there

are dozens around country now, following craft beer model.) Move to set up Bend plant followed more than a

year of negotiations with coupla copackers in LA area to set up fermentation facility within their operation that

ultimately proved fruitless. Silver lining is outcome creates more jobs in Bend, where co is deeply entrenched.

The European push is via joint venture with one of original investors in Kombucha Mama after trial shipment of 6

containers sold thru briskly. (She didn’t ID investor, but Gary Fish, founder of Deschutes Brewing in Bend and

himself an early Humm investor, will serve on board of Humm Europe.) So venture is building its own facility in

Sweden with another being eyed down road in Czech Republic. Product labeled in Swedish is about to ship.

Tho Humm only has built deep availability in 4 states around Northwest it’s available in major chains in 18 states

all told, with national availability anticipated for next year. It just signed with broadline distributor UNFI. And

co’s tenacious assault on c-stores is being rewarded: latest aboard is 7-Eleven, which is putting Humm in 600 of

its West Coast stores. Jamie said approach was made by retailer, after Humm prevailed in internal blind taste test.

Keg biz continues to boom as Humm rides expansion of Von’s Pavilions banner, which pours Humm in its juice

bars in Southern Calif. Refrigerated brand has been servicing LA-area stores via DSD house Haralambos and has

signed on small Kombucha on Tap operation to service San Diego as Pavilions units open there.

Humm also brought new flavor to show: Mango Passionfruit. It joins lineup that includes best-selling Coconut

Lime and likes of Blueberry Mint, Strawberry Lemonade, Apple Sass and Chai.

It came close to deal with Pepsi, and now it’s going into bevs on its own. That’s how most media played move

by Greek-yogurt power Chobani LLC to launch its own bev line, as well as line of savory dips. Forthcoming

Drink Chobani line, due in Jul, will mix fruits with Greek yogurt, while Chobani Meze dips blend in veggies,

herbs and spices – “all true to Chobani’s food philosophy of using only natural, non-GMO ingredients with no

artificial preservatives,” Norwich, NY-based co said. Bev line, packed in 10-oz PET bottles, will debut in flavors

like Mixed Berry, Strawberry Banana, Apple Cucumber Spinach and Mango. As was reported earlier, co had

sought strategic partner to take minority stake, but advanced discussions with Pepsi apparently foundered over

PEP’s desire for full control, which Chobani founder/ceo Hamdi Ulukaya resisted. Facing cash crunch, co in

2014 pulled in $750 mil from PE shop TPG but, as Bloomberg News noted, it’s in position now to self-fund new

brands.

If you needed any further evidence –

beyond rollout last summer in Starbucks stores – that cold-brewed coffee is entering mainstream awareness, enter

6,000-unit fast feeder Chick-fil- A. Atlanta-based co says it’s “taking cold-brewed iced coffee to the next level”

starting Mon by combining its signature Vanilla Icedream dairy treat with Thrive Farmers cold-brewed iced

coffee in concoction called Frosted Coffee that’s teed up for spring selling season. Chick-fil- A has been partner

with farmer-direct Thrive roaster since 2014. “The hand-spun treat starts at just 240 calories, offering fewer than

half the calories of a milkshake,” co enthused. Entry follows last summer’s Frosted Lemonade, which Chik-fil- A

says got warm – make that cold - reception. If some in cold-brew space might quibble with authenticity of new

item, price point at least will be consumer-friendly: Frosted Coffee will be available in small (14-oz) serving at

$2.69 as well as large size, 20-oz. Limited-time offering will be in stores thru May 31. Launch poses question:

can 7-Eleven cold-brewed coffee Slurpee be far from reality?

Red Bull North America appears to be undertaking another round of terminations

in Calif, this time focused on on-premise biz that it dominates. Biggest loser in latest round of musical chairs

appears to be spirits house Young’s Market, tho also being dropped are indie beer houses DBI in SF, San Jose and

Sacramento, and old Mesa shop, now owned by Pacific Northwest giant Columbia, in North Bay area of Marin

and Sonoma Counties. Tho not confirmed, one theory is that on-premise biz for entire state is shifting to

Southern Wine & Spirits. Similar shift may be underway in Hawaii too. By now, RBNA has made nearly clean

sweep on off-premise side, self-distributing in all markets except those serviced by Pacific Beverage (Santa

Barbara), Elixir (Watsonville) and perhaps couple of Pepsi bottlers in lightly populated areas. Santa Monica,

Calif-based RBNA has policy of never commenting on such moves, which it views as internal matter.