Diversified natural-food player Hain Celestial is planning usual avalanche of new items at

upcoming Natural Products Expo West, including among its 100+ new products such BluePrint entries as

BluePrint Kombucha and Ready-To- Drink Tea, both new categories for juice brand. As reported, with center-

store categories declining in consumer appeal, Lake Success, NY-based Hain is putting greater emphasis on

BluePrint as key to tapping perimeter sections of grocers, including with launch of 10-oz size that offers lower

price point and calorie count positioned in mass channels as modest upgrade to Naked and Odwalla (BBI, Feb 4).

Also in mix will be couple of other new categories for cold-pressed brand: BluePrint Vinegar Tonic and Dry Tea.

As reported, core 16-oz BluePrint line adds Watercress Warrior and Dandelion Drive veggie and fruit drinks.

Elsewhere within Hain portfolio, plant-based Dream brand will add refrigerated Ultimate Almond Beverages,

responding to one perceived shortcoming of almondmilks – relatively low protein count – with items that contain

4X the almond content. On shelf-stable side, Dream will add Ultimate Almond Beverages, Boosted Beverages

and Rice Dream extension called Rice Dream with Coconut.

And Hain’s Celestial Seasonings tea unit will show Sleepytime Mint, Sangria Zinger and Spiced Vanilla Herbal

Teas, Ginger Green and Matcha Green Teas, and 3 Fair Trade organic green teas, per teaser from co: Pure Green,

Jasmine Green and Lemongrass Green Teas.  On latte side, Dirty Chai Tea Espresso K-Cup pods have been

created for Keurig systems. We hope to report specific details from show.

Carbonated soft drink volume decline

slowed to 0.4% last 4 wks thru Feb 27 in Nielsen all-channel data reported by Morgan Stanley’s Dara Mohsenian.

That’s improvement on 2.3% decline for 12 wks as latest period includes Sat of Super Bowl weekend this year,

likely giving boost to bev categories. CSD pricing was weaker, tho, as it slowed to +0.9% avg for 4 wks vs

+1.9% for 12 wks. Diet CSDs continued to struggle with volume down 5% for 4 wks, 7% for 12 wks. Regular

CSD performed much better, +1.4% for 4 wks, -0.5% for 12 wks.

Coca-Cola CSD volume was off just 0.1% (vs 1.5% for 12 wks) with avg price increase of 0.8% last 4 wks.

PepsiCo volume decline slowed to -1.1% last 4 wks (vs 3.7% drop for 12 wks) with even smaller avg price

increase of 0.2%. Dr Pepper Snapple CSD volume off 0.7% (vs -2.5% for 12 wks) with avg price gain of 2.1%

last 4 wks. With boost from avg 0.8% price drop, private-label CSDs volume decline slowed to 0.8% last 4 wks

compared to drops of 3.3% for 12 wks, 4.9% for 52 wks.

Energy Gains Decelerate Energy drink volume gain slowed to 5.6% last 4 wks in all-channel data even as avg

prices eased to +1% last 4 wks. Energy drink volume was up 6.9% for 12 wks, 9% for 52 wks. Monster Energy

volume increased 4% (vs +5.5% for 12 wks) with solid 4.3% price increase last 4 wks. Red Bull gain pace was

almost cut in half to +2.3% last 4 wks with just slight (+0.1%) price bump. Rockstar volume still scoring double-

digit gains, 12.7%, on avg 1% price decrease last 4 wks. PepsiCo (Amp) picked up 8.6% last 4 wks as avg price

increase declined to just 0.1%, down from 1.8% avg for 12 wks. Steep price drop of 9.2% helped lift private-

label brands to 33.2% gain last 4 wks.

Price Cuts Help Gatorade Drives Sports Volume Gains Sports drink volume trends improved to 8.2% last 4

wks on avg 1.2% price decrease last 4 wks. That’s up from 4.8% gain for 12 wks on -0.4% price drop. Over last

4 wks, PEP’s Gatorade volume nearly doubled to +10.4% as its avg price drop had in fact doubled to -3.3% avg.

KO’s Powerade slowed to 0.6% gain last 4 wks on small (+0.3%) price increase. Meanwhile, private-label

brands continued to outperform, with 12.2% volume gain despite hefty 7.7% avg price increase last 4 wks.

Waters Up Double-Digits, PEP Outperforming on Lower Pricing Bottled water volume trends improved to

+10.9% last 4 wks on avg price decrease of 1.2%. Nestle Waters volume improved substantially to 7.4% gain (up

from +2.7% for 12 wks) as it swung from small price increase to -1.7% avg price drop last 4 wks. Coca-Cola’s

water volume was up 7.2% last 4 wks and was only top supplier with price increase (+1.1%) during that period.

PepsiCo’s water continued to gain double-digits, up 17.3% on steep 5.2% price drop last 4 wks. Also down 5.2%

for 12 wks. Similar trends for private-label waters, up 13.9% on avg 4.5% price drop last 4 wks.

Monster Energy may

have taken price hike last Aug but it seems to be offering year-long deal at 7-Eleven c-store chain that continues

common 2 for $4 promo of 2015. Monster core line and Monster Rehab extension both are being promo’d at 2

for $4, with fine print on POP showing pull date of Dec 31 2016 at several stores checked in NY. BBI contacts in

other parts of country say they see same deal in local 7-Eleven stores. POP for other promos in those stores

extend for considerably shorter windows, none beyond early Mar . . . Body Armor next-gen sports drink brand

seems to be using winter doldrums in Northeast to drive additional trial in key region. Case stacks on floor at

Ideal Food Basket in Brooklyn were seen at 79 cents per bottle this week, more aggressive offering than usual 4

for $5 or 5 for $5 promos. SRP is $1.99.

LifeAid,

which is moving progressively beyond its CrossFit roots, has recruited pair of seasoned Vita Coco sales execs.

Dan Leja, a former Red Bull and Pepsi exec who served as dir of distribution at coconut water brand, has come

aboard as vp of sales & distribution. Jordan Shulman, who worked on beer side at Fosters Group and Scottish &

Newcastle before moving to dir of natl accts role at Vita Coco, has joined Santa Cruz, Calif, co as vp sales & natl

accts. Pair’s experience should prove “invaluable as we execute our strategy for expansion into natural and

traditional retail,” said prexy/cofounder Dr Aaron Hinde.  “Going forward, they will be responsible for building

out our sales organization and retail presence.” Leja and Shulman come aboard as co continues to broaden its

functional applications, recently adding mental acuity builder FocusAid (which Aaron said broke $50K in sales

during first 2 days of online availability), immunity-boosting TravelAid and its first non-bev offering, pouched

athletic snack called FitAid Fuel. As reported, moves come as key rival, Atlanta-based Kill Cliff, has been

moving thru reorganization that’s moved out some of founding team in favor of bev experts who can similarly

build out brand beyond core CrossFit and other endemic channels. LifeAid will be showing expanded array of

items at upcoming Natural Products Expo West in Anaheim, Calif, starting Fri.

SodaStream Int’l has disclosed successor to departing US chief John Sheppard, going with head of

Canadian operation but only on interim basis. In Form 6 regulatory filing yesterday, SODA said Doug Pritchard,

country mgr for SodaStream Canada, will step in to succeed Coke and Cott vet Sheppard, whose exit was

attributed to personal reasons (BBI, Mar 3). John will stay on thru Apr 30 to insure orderly transition, co said.

As interim prexy of SodaStream North America, Pritchard will oversee all operations for restaging brand

in US and Canada, and report directly to ceo Daniel Birnbaum. Doug is a 10-year Kraft Canada vet who

joined SODA team only last Sep, around time Sheppard came aboard. His last Kraft posting was vp of

bevs in Canada, overseeing $500 mil coffee and cold-bev biz, including involvement with Tassimo brand

launch and extension of McCafe brand from McDonald’s into grocery channel. He earlier worked for

General Mills, including sr marketing role on Yoplait yogurts in US.

Both sides seem to

have placed cone of silence on topic, but there are signs that fast-growing Bai Antioxidant Infusions and newly

rolling out Core Organic brand may be on collision course: Core Organic is popping up in Bai displays and

seems otherwise to be looking to cut into its momentum, while Bai execs reportedly have been urging some of

brand’s Dr Pepper-aligned distributors not to pick up item.

No question, the 2 brands are fundamentally dissimilar – after all, Bai is natural antioxidant play while Core

Organic is USDA-certified organic electrolyte play. More broadly, tho, both seem to be claiming former

Vitaminwater mantle of good-tasting, good-for- you, approachably priced elixir, and both use natural sweeteners

to get down to just 5 calories per serving. They share some packaging cues, too, each sold in 18-oz plastic bottles

with colorful labels priced in $2-2.49 range. So some in street say rumble is brewing pitting potential breakout

bev star Bai – which has drawn investment and nationwide distribution from Dr Pepper Snapple and recently

aired Super Bowl ad – vs longtime bev tinkerer Lance Collins, who earlier sold Fuze to Coca-Cola and seems to

have made considerable headway with Core unflavored bottled water, launched 18 months back. The new

sweetened, flavored Core Organic line, intro’d without fanfare (BBI, Nov 30), has been expanding from West

Coast launch base into major DSD houses like Big Geyser in NY, Honickman Group in Mid-Atlantic and Polar

Beverages in New England. Recent press release outlining push said 6-flavor Core Organic line this May will be

heading into Kroger, Safeway/Albertson’s, Save Mart/Lucky Supermarkets, HEB, Sprouts Farmers Market,

Acme, Tops Friendly Markets, Bristol Farms and some Whole Foods stores, as well as 7-Eleven stores on East

and West Coasts. “Organic is one of the hottest trends, but it’s not enough on its own,” Collins said in statement.

“No one has been able to crack the code and deliver on all 3 attributes of organic, low-calorie and great taste. So

we set out to quench consumers’ thirst and deliver a revolutionary new product.” Core Organic is positioned as

“perfectly organic, fruit-infused beverages.”

In NY, distrib Big Geyser seems to be wielding Core Organic vs both Vitaminwater, which a year ago left Geyser

for Coke-owned CCR, and Bai, which moves thru DPS-owned distributor formerly known as Mr Natural. Core

Organic does seem to blend effortlessly into Bai displays, as seen in photo below, shot this week in 7-Eleven

store in Brooklyn, and more of that is likely in other markets where brands are in separate distributors. That

won’t happen in houses that carry both brands, like Polar and Honickman, but Bai execs are said to be chafing at

possible dilution of focus and potential for promo wars, during what they’re hoping will prove breakout year for

their brand. One source said he’s heard Bai exceeded 1 mil cases in Feb, auguring major gains this spring and

summer of brand that seems to be embraced by broad range of consumers.

Tho various execs at Core, Bai, Big Geyser, Polar and others who were approached didn’t return calls on subject

in recent weeks, one Core ally dismissed any claims of similarity by noting, “Core Organics is a step above

Vitaminwater and Bai: it’s the next evolution of enhanced water (but in a class of its own) and the only one that is

organic, gluten-free, non-GMO, vegan, etc, in a BPA-free bottle.” Of course, as it has expanded its own

portfolio, Bai itself has made incursions onto others’ turf, from Smartwater with its Antiwater entry to teas and

coconut waters with sublines employing those ingredients, in process creating friction at distributor level with

marketers in those categories. Still, battle between one of top emerging brands and rival created by entrepreneur

with proven track record could add considerable spice to bev wars this spring and summer.

Both sides seem to

have placed cone of silence on topic, but there are signs that fast-growing Bai Antioxidant Infusions and newly

rolling out Core Organic brand may be on collision course: Core Organic is popping up in Bai displays and

seems otherwise to be looking to cut into its momentum, while Bai execs reportedly have been urging some of

brand’s Dr Pepper-aligned distributors not to pick up item.

No question, the 2 brands are fundamentally dissimilar – after all, Bai is natural antioxidant play while Core

Organic is USDA-certified organic electrolyte play. More broadly, tho, both seem to be claiming former

Vitaminwater mantle of good-tasting, good-for- you, approachably priced elixir, and both use natural sweeteners

to get down to just 5 calories per serving. They share some packaging cues, too, each sold in 18-oz plastic bottles

with colorful labels priced in $2-2.49 range. So some in street say rumble is brewing pitting potential breakout

bev star Bai – which has drawn investment and nationwide distribution from Dr Pepper Snapple and recently

aired Super Bowl ad – vs longtime bev tinkerer Lance Collins, who earlier sold Fuze to Coca-Cola and seems to

have made considerable headway with Core unflavored bottled water, launched 18 months back. The new

sweetened, flavored Core Organic line, intro’d without fanfare (BBI, Nov 30), has been expanding from West

Coast launch base into major DSD houses like Big Geyser in NY, Honickman Group in Mid-Atlantic and Polar

Beverages in New England. Recent press release outlining push said 6-flavor Core Organic line this May will be

heading into Kroger, Safeway/Albertson’s, Save Mart/Lucky Supermarkets, HEB, Sprouts Farmers Market,

Acme, Tops Friendly Markets, Bristol Farms and some Whole Foods stores, as well as 7-Eleven stores on East

and West Coasts. “Organic is one of the hottest trends, but it’s not enough on its own,” Collins said in statement.

“No one has been able to crack the code and deliver on all 3 attributes of organic, low-calorie and great taste. So

we set out to quench consumers’ thirst and deliver a revolutionary new product.” Core Organic is positioned as

“perfectly organic, fruit-infused beverages.”

In NY, distrib Big Geyser seems to be wielding Core Organic vs both Vitaminwater, which a year ago left Geyser

for Coke-owned CCR, and Bai, which moves thru DPS-owned distributor formerly known as Mr Natural. Core

Organic does seem to blend effortlessly into Bai displays, as seen in photo below, shot this week in 7-Eleven

store in Brooklyn, and more of that is likely in other markets where brands are in separate distributors. That

won’t happen in houses that carry both brands, like Polar and Honickman, but Bai execs are said to be chafing at

possible dilution of focus and potential for promo wars, during what they’re hoping will prove breakout year for

their brand. One source said he’s heard Bai exceeded 1 mil cases in Feb, auguring major gains this spring and

summer of brand that seems to be embraced by broad range of consumers.

Tho various execs at Core, Bai, Big Geyser, Polar and others who were approached didn’t return calls on subject

in recent weeks, one Core ally dismissed any claims of similarity by noting, “Core Organics is a step above

Vitaminwater and Bai: it’s the next evolution of enhanced water (but in a class of its own) and the only one that is

organic, gluten-free, non-GMO, vegan, etc, in a BPA-free bottle.” Of course, as it has expanded its own

portfolio, Bai itself has made incursions onto others’ turf, from Smartwater with its Antiwater entry to teas and

coconut waters with sublines employing those ingredients, in process creating friction at distributor level with

marketers in those categories. Still, battle between one of top emerging brands and rival created by entrepreneur

with proven track record could add considerable spice to bev wars this spring and summer.

Has Jones Soda finally turned the corner and become a growth company

again? That was case that ceo Jennifer Cue made as Seattle-based marketer notched 10.9% revenue increase in

Q4 – “double-digits,” as she frequently put it – to $2.7 mil, leaving full-year revenue about flat at $13.6 mil, all

despite significant headwind from Canadian currency swing. And unlike prior growth efforts, co did it without

burning vast amounts of capital, reporting operating loss of $437K vs $639K year earlier.

Tho results still left JSDA at a fraction of sales volume of its peer Reed’s Inc, which will report more than $40

mil in full-year revenues, they left long-suffering private investors on last night’s conference call almost giddy

with relief. “I hope you’re smiling, as you should be … there’s a pretty big smile on my face today,” gushed one.

Another investor: “Great conference call, fantastic, best I’ve heard in a long time.” Long-battered JSDA shares

edged up in trading today.

Case volume grew 12% in Q4, thanks mainly to core Jones CSDs. The 11% revenue growth would have widened

to 15% were it not for weaker Canadian dollar, given Jones’ significant presence north of border. Gross profit

widened to 19% from 16% as costs moderated, in part via shift of more production to Canadian copackers. Full-

year volume advanced 3%, and tiny 0.3% in revenue growth would have come in closer to 4% with stable

Canadian dollar. Cue termed results “a very important milestone: the first year-over- year volume growth since I

rejoined in mid-2012.” The name of the game in 2016, she said, will be profitable growth comprised of continued

gains in core biz buttressed by contribution from range of new initiatives. Co concluded year with $1.7 mil of

working capital on balance sheet, $772K in cash/equivalents with loan facility sufficient to carry co thru 2016.

Speaking from less-expensive new hq (one of whose downsides is heavy train traffic that Cue sometimes strained

to be heard above), Cue made case that co now is punching above its weight, with doughty crew that aims to keep

core brand growing while building several new bases of biz, including cane-sugar- sweetened flanker, cobranded

line that just launched at 7-Eleven, Italian-inspired sparkling line called Lemoncocco and cane-sugar fountain

offering. Tilt toward commission-based compensation has brought out best in some employees – say, one

identified as Cathy Smith who worked weekends on her own to design better Web site that would boost online

sales, to which her compensation is tied.

Pressed repeatedly by investors, Cue demurred on offering any estimates on how much revenue any of those

would contribute in new year, saying there are simply too many variables to make predictions wise. Here’s

update on those.

Fountain Offering Wins First Installations Cane-sugar fountain offering, which co has been pitching heavily at

Natl Restaurant Assn show each spring in Chicago, has drawn approaches from “truly innovative companies” if

not the major chains, who’re usually locked into long-term Coke and Pepsi deals. But it’s out in market by now

with early-stage quick-serve operators like Graze Salad Bars in SF and Overwaitea Food Group grocery chain in

Canada, which is installing the systems in newly renovated delis. Motivated fountain distributors make markets

like Seattle, Chicago and NJ promising markets, Cue indicated.

7-Eleven Cobranded SKUs Embraced by Franchisees New cobranded, 5-flavor 7 Select Crafted by Jones

stemmed from 20-year relationship with 7-Eleven Canada (store on Kingsway St in Vancouver was brand’s first

customer) and brings soda offering in proprietary PET bottle with unmistakable Jones branding, cane sugar, 30%

lower sugar content and modicum of caffeine. Sampling at recent 7-Eleven Experience internal trade show in

Vegas suggests indie franchisees will embrace offering. Deal doesn’t extend to Canada, where Jones glass bottles

have been ensconced in chain’s 500 stores, but it does hold out prospect of eventually getting glass bottles into 7-

Eleven’s US stores.

Lemoncocco Accelerating Expansion Canned Lemoncocco item tested quietly in Seattle and SF last summer,

got a few modest tweaks, then formally launched thru specialty Italian distributors into pizzerias, boutique

grocery chains and other targeted accounts, much as Jones Soda itself targeted endemic tattoo parlors, surf shops

and skate shops in its earliest days. It’s now available in LA, and is adding Toronto, Montreal, Chicago and NY.

Strong response at recent Fancy Food Show in SF has encouraged co to add unidentified additional markets to

plan, with view to being “closer to national” next year, Cue said.

It’s based on item Cue said she discovered on street stands in Rome while living in Italy years ago (and familiar

to her Italian-born husband, who was mustered into service sampling brand at Fancy Food Show), using similar

blend of coconut cream and Sicilian lemons but lower sugar content than Italian model (coming in at 90 calories

per 12-oz serving). Interestingly, Jennifer said separate team that is managing Lemoncocco is comprised entirely

of employees who are Italian or have Italian roots.

Australian co that’s made splash among baristas with macadamia-nut- based creamer under

Milkadamia brand name is moving into broader nutmilk biz with pair of Tetra Pak offerings that will debut at

upcoming Natural Products Expo West Show late next week in Anaheim, Calif. Jindilli Beverages (jindilli is

indigenous name for macadamia), based in Oak Brook, Ill, derives product from nuts harvested at family farm of

that name near east coast of Australia, but has its sites set squarely on US. It started a year ago with Milkadamia

Milk entry packed in 32-oz brick pack using formula that froths well for baristas, winning best product nod at

Portland (Ore) Coffee Fest, thanks to its ability to support elaborate latte foam art. But Jindilli team sees broader

opportunity in lighter, more milk-like item that works well with smoothies and cereals, just as almondmilks and

other nutmilks do. So it’s devised entry with somewhat shorter ingredient list and package graphics that offer

greater consumer appeal than rudimentary barista offering via line drawing of macadamia nuts hanging from

branches. Shelf-stable entry is launching shortly in Original and Unsweetened versions at SRP of $4.99. “Moo is

moot,” package copy informs. Blair Jackson, a mgr at Jindilli, said so far likes of Sprouts, Fresh Thyme and

Albertsons have expressed interest in picking up launch. Info on co is at Milkadamia.com; site will be updated

with details on new line in coming days, ahead of Expo, Blair promised.

Longtime green-tea

player Steaz appears to be the most established co to jump on cactus water bandwagon, with canned, organic-

certified entry launching in trio of flavors. Prickly-pear- based item is being offered in 12-oz cans in Original

Cactus Water with Green Tea, Cactus Water with Cucumber and Green Tea, and Cactus Water with Starfruit and

Green Tea. Line is launching this month at Whole Foods at SRP of $2.79. Linda Barron, ceo of Philadelphia-

area co, claims it’s first certified-organic cactus water item to reach market, and only one that combines

ingredient with organic green tea. It’s lightly sweetened with stevia. Can copy touts bennies as rich antioxidant

content and inflammation reduction. Cactus water, of course, is among several plant-based waters, such as maple

water, that are attempting to ride in coconut water’s draft by offering RTD offerings with appetite appeal.