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.
Pepsi Talks Over, Chobani Moves into Bevs on Its Own, Aiming for Jul Debut for Fruity Yogurt Drinks
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.

