BMI Archives Entry

BMI Archives Entry

It’s not often owner confronting shifting landscape is willing to

abandon a successful brand in favor of a blank slate. But that’s what InZone Brands owner Jim Scott did 2 years

ago when, working with former Coca-Cola and FRS exec Carl Sweat, he dropped his popular Bellywashers and

Tummy Ticklers kids bev brands in favor of newly devised Good2Grow moniker and revamped recipes to dial

down sugar and shed artificial ingredients. Co also responded to skepticism about juice among some parents by

adding lighter, stevia-sweetened Juicy Waters extension. True, brand’s continued reliance on sculptured bottle

toppers employing characters drawn from Disney and other entertainment franchises made transition invisible to

kids. But it still was big gamble with moms and retailers. With transition under way, Sweat left InZone, for

reasons that weren’t publicly spelled out but may have involved contrasting operating styles, and new team

assembled under Scott has been fine-tuning brand. Here’s update.

New team is led by longtime lieutenant of InZone founder Scott named Gunnar Olson, who ran Scott’s $50 mil

Bubba Brands bev container biz until sale to Newell-Rubbermaid made him available on Good2Grow side. Key

lieutenant is marketing vp Brent Guinn, former Abbott and Conagra exec who was recruited by commercial

officer Sweat in mid-2014. Brett offered BBI a rundown on key activities for 2016.

With arduous rebranding accomplished, focus has turned to improving flavor and nutrition profile. Three months

ago formula of key sku’s was tweaked to further reduce sugar content, from 7 g of sugar (30 calories) to 5 g (20

calories), with tests suggesting consumers detect no tradeoff in taste. Now Guinn’s team is looking at revamping

every other sku over next 9 months. Vegetable content is being dialed up in fruit/veggie blends. Some sweetener

changes may be in store, tho it’s too soon to say. Further initiatives may flow out of consumer research project

that Brent said is by far biggest for any biz Scott’s operated. It’s “deep dive to make sure we’re finding the true

north of the brand,” he said.

For brand driven heavily by impulse, prime task is to build frequency of consumption. IRI syndicated data offers

one encouraging sign to retailers: it suggests Good2Grow is almost entirely incremental to category, meaning

moms still purchase Apple & Eve and Capri Sun. InZone team also has been teasing out similar story for newer

Juicy Waters, finding it turns at 80% of velocity of core line and proves 70% incremental to sales. (In his days on

food side, that figure more commonly was 25-30%, Guinn recalled.) Those insights should buttress key priority

for 2016: to expand points of distribution of core line by about 25%. Flavor leaders Fruit Punch and Apple

already boast 75% ACV but other 4 flavors need further push. And co wants to continue progress in fastest-

growing channel: drugstores, which these days serve as sort of c-store for women, Guinn observed.

On marketing side, 2d year of Good2Grow digital campaign is tilting from last year’s focus on formulation

improvements to better incorporating kids’ reactions and experience. “We were so focused on what’s in the

bottle that we got away from the magic a bit,” Guinn allowed. The 100%-juice entries are positioned to

gatekeeper moms as “Nutrition – packaged to please,” while Juicy Waters are positioned as “Hydration –

packaged to please.” Of course, use of character toppers lends itself to promos: on boys side co will tie into

Captain America: Civil War due this spring and several Avengers characters, while girls get Disney content from

across Princess portfolio. These days, promos are being more carefully tailored to specific chains and more

emphasis placed on newsworthiness, with some characters coming out of retirement and others getting new

“paintouts.”

Another issue is role, if any, of DSD, after earlier experience fared poorly. “We’re putting a lot of deep thought

into routes to market,” Guinn said. Currently brand relies overwhelmingly on warehouse delivery, with a few

small DSD houses grandfathered into mix, but there’s little question right DSD partners could further improve

velocities and Plan-o- Gram enforcement. That was Sweat’s initial intent in recruiting DSD shops after cutover to

Good2Grow was marred by sloppy in-store execution. “In the next 3 months we may know more,” Guinn says.

Tho co doesn’t release sales figures, one measure of success is brand’s ability to penetrate retail venues that

weren’t receptive to Bellywashers. One is Target chain, which took flier on coupla Good2Grow sku’s in cafes.

Encouraged by solid performance, it’s now presenting full set, sometimes with double facings and even

occasionally side wings outside café area. And café mgrs advocated for brand in Target juice aisle, yielding 300-

store test of multipacks that has now been expanded chainwide. Brand also has moved into more upscale

precincts like Wegmans, where it’s running small test in open-air coolers near foodservice area. And what Guinn

calls co’s biggest “never” grocery customer, Publix, dipped toe in water last fall with test of lower-priced

multipacks containing just a single character-topped bottle.

Publix test was result of Sweat-era idea of razor-and- blades-type move to offer 6-bottle refill packs minus the

character toppers as a way to offer more competitive value proposition than single-serve bottles costing $2-3+.

“Struggled mightily to get going,” Guinn acknowledges, as limited budget proved inadequate to explaining

concept even as packs weren’t always shelved adjacent to the core, character-topped bottles. In any case, concept

lost “magic in the shopping experience,” since moms didn’t get to enjoy watching their kids choose characters.

So Publix pack offers middle ground. So far, it seems to have boosted velocity, Guinn said.

Major natural food distributor United Natural Foods Inc said it’s entered definitive

agreement to acquire specialty and ethnic house Haddon House Food Products, boosting its presence at

conventional grocers and upping the ante in what seems to be shaping up as 2-horse race with KeHe for

hegemony in broadline distribution. UNFI said it anticipates the cash transaction for $217.5 mil will close by

start of Q4. It brings into UNFI fold a 56-year- old operation founded by Anderson family, whose current leaders

David Anderson Sr and David Anderson Jr will stay on in key roles. “Haddon House has a unique product and

service offering that we expect to play an important role in our ongoing strategy to build out UNFI’s gourmet and

ethnic product categories across the country,” UNFI prexy/ceo Steven Spinner said in statement. Haddon House

team “has demonstrated exemplary customer service and growth over the last decade while also building a

distinctive private-label brands business. We are excited to have them join the UNFI family as we venture into

new channels and markets together.”

Consultant Bob Sipper, principal of Cascadia Managing Brands in Ramsey, NJ, termed move a positive for UNFI,

saying it should open up such conventional grocery chains as Harris Teeter and is consistent with moves made

both by UNFI and its rival KeHe to broaden their range in recent years. KeHe acquired Tree of Life in 2010 and

Nature’s Best in summer of 2014. Tho UNFI said deal should be immediately accretive, shares sank 15% in

trading so far today after co simultaneously reported weak preliminary results for 2d qtr. “We have made

significant progress in developing our fresh platform, e-commerce, brands and infrastructure,” Spinner said in

that regard. “UNFI’s 2d quarter preliminary results and our view of fiscal 2016 reflect our commitment to

investing in growth throughout our organization while we continue to evaluate our cost structure and customer

experience.”

After adding its first flavored entries last year, caffeinated water leader Avitae USA is

taking another step toward rewarding its consumers’ palates: adding a carbonated version. Sparkling Avitae, to

be unveiled at Natural Products Expo West next week for retail availability this spring, aims to tap into

burgeoning interest in lightly sweetened or unsweetened sparkling waters, offering 90 mg of caffeine in an

unflavored version as well as Black Cherry, Raspberry Lime, Berry Kiwi and Mandarin Passion Fruit. Half-liter

PET bottle is adorned with vibrant wave contour toward top of label, surrounded by bubbles. “Instant go with

added fizz,” adds side panel. As with rest of line, none of items is sweetened. New entry is priced at same $1.49

SRP as existing entries. Cleveland-based co now has extended line to 12 items, including unflavored still version

at 45 mg, 90 mg and 125 mg of caffeine, and flavored still versions containing 90 mg of caffeine in Pomegranate

Açai, Tangerine, Blackberry and Strawberry Guava flavors. The caffeine is sourced from green coffee beans.

Prexy/ceo Norm Snyder said co, working with unidentified new flavor provider, has dialed up intensity of

existing flavors, in response to retailers who’d embraced flavored versions upon their launch a year ago. Tho co

has been deliberate about expansion, flavor entries drew broad interest among several national or regional chains,

including Albertsons, Safeway, Whole Foods, Jewel-Osco, Raley’s and Roundy’s. It recently expanded into

ShopRite co-op operated by Wakefern, putting it into 80 stores in tristate area around NY.

Monster Eyeing Clear PET Can to Enter Fray? As noted in recent weeks, there’s been chatter Monster

Beverage may seek to reprise E2O moniker from years past potentially for use in caffeinated sparkling water,

among 3 or 4 broader innovation initiative it has said it’s readying for launch starting in 2d half of year. Tho co

has kept info tight, one rumor is that sparkling energy line may be offered in half-liter clear PET can of type

offered by Invento Americas that’s been focus of considerable intrigue since US intro 2 years back but not yet

hitched to major product launch.

Austin-based High

Brew, perhaps most aggressively expanding cold-brew player out the gate, is upping its game for this spring,

luring Red Bull and Vita Coco vet Brian Arkus as evp for sales and distribution as part of anticipated wave of

new hires while augmenting canned line with trio of more indulgent tho non-dairy lattes. Moves are intended to

keep High Brew ahead of competition, in segment that, boasting little general awareness a year or 2 ago, has

gotten surge of attention from Starbucks’ major push behind its in-store cold-brew offerings and wave of new

entrants, several boasting shelf-stable formulations like High Brew’s.

LA-based Arkus, most recently vp sales/gm for western region at coconut water leader Vita Coco, comes aboard

as founder David Smith is aiming to strengthen support of broad network of DSD distributors and numerous

major retail partners, including Target, Safeway and Kroger. Brian will focus on managing DSD network and

burgeoning array of street teams, giving current evp sales Ron Bryant more time to focus on key role managing

major retail accounts, David told BBI. Arkus, who’d worked for PepsiCo units like Frito-Lay, Naked Juice and

Quaker-Tropicana- Gatorade before running Red Bull’s self-distribution operation around LA, joins High Brew

amid anticipated wave of new hires on both sales and marketing sides in coming months. Recall that last fall co

brought aboard Red Bull, Glaceau and Kind Bar vet Mari Johnson as vp marketing (BBI, Sep 9). Chicago-based

Johnson inherited field marketing teams in Chicago, Tex and Southern Calif that were to be augmented this year.

Smith said it’s still a bit premature to discuss what other new hires are on way, or how street teams will evolve.

Smith, of course, was cofounder of Sweet Leaf Tea, which ultimately sold out to Nestle, and has reconstituted

much of his Sweet Leaf team at High Brew, following similar DSD playbook for brand that’s aiming for mass

appeal.

On product front, High Brew will seek to balance relatively austere core line with non-dairy latte subline

employing almond or coconut milks, offering more luxuriant mouthfeel but coming in at modest sugar content.

Initial launch, in flavors like Mexican Vanilla and dairy-free Black & Bold, helped establish clear point of

difference, David explained, but extension is intended to bring in more consumers looking to retain some of

indulgent experience they may have picked up drinking Starbucks Frappuccinos and similar items. Line will

employ 8-oz slim can of core line, but with different graphic treatment to make lines easily distinguishable at

retail. As with core line, it will be shelf-stable and flagged as using non-GMO ingredients. David said co would

disclose flavor range and suggested retail pricing at Natural Products Expo West, which opens next Fri at

Anaheim Convention Center in Southern Calif.

Steve Pear, former Coke exec who

came in as ceo of Cheribundi a coupla years ago, seems determined to move cherry-based brand from struggling

backwater to broadly popular recovery and pain management brand. His latest move: upgrading to agency-of-

record status BrandStar, which has created stir in ad world with efforts like ListnTV, which produces lineup of

morning shows that airs daily on Lifetime Channel.  It’s based in Deerfield Beach, Fla. Cheribundi, whose core

investor is Emil Capital, lately has been plying campaign dubbed “Who Knew?” that attempts to alert consumers

to benefits of tart cherry juice, and also has recruited 130+ college and pro sports teams as users.

As Seattle-based co approaches anniversary of its restage from Dry Soda to Dry Sparkling, it’s

boosting penetration of conventional retailers, adding key members to sales team and recently abandoned its

popular tasting room in city’s Pioneer Square nabe for sleeker hq. After making move to distance culinary-

inspired bevs from tainted “soda” moniker, much as other brands like SodaStream have done, co has enjoyed

increase in acceptance, said founder Sharelle Klaus, speaking last night at Health & Nutrition Showcase at NY’s

Marriott Marquis Hotel. It’s gotten 5 flavors into Target chain, along with exclusive flavor, Fuji Apple. After

anniversary limited-edition flavor worked out well last year, co will do its first seasonal flavors for summer, with

holiday themed flavor coming along at tail end of year. Dry Sparkling has made name in part by offering such

unconventional soda flavors as Rhubarb, Lavender and Juniper Berry, along with more complex takes on familiar

flavors like Vanilla Bean and Ginger.

Meanwhile, Klaus has recruited trio of former Muscle Milk (CytoSport) execs to top sales roles. Melody Conner,

former Pepsi exec who went on to decade-long run at Muscle Milk, joined last month as evp sales, and brought

along Tom Daly managing eastern half of US, and Ed Lilly, managing western region as well as small-format

stores, new, higher-profit channel that brand is pursuing via entry into likes of Holiday, Speedway, SuperAmerica

and Sunoco convenience-&- gas chains. Tho co was sorry to see well-trafficked tasting room go by boards, new

hq on 12th floor of nearby Smith Tower – oldest skyscraper in city – is tricked out with event space and other

perqs.

Looking to buttress line with items of broad appeal and approachable price as it moves into more

conventional retail channels, Brooklyn-based honey-bev marketer Deluxe Honeydrop is prepping line of cold-

pressed honey lemonades for unveiling at upcoming Natural Products Expo West. New line will offer fresh take

on what founder David Luks (the D Luks in “Deluxe”) terms “simple lemonades at a really good price point” – as

low as $2.99 per 10-oz bottle at retailers served via warehouse delivery. At natural and specialty retailers like

Whole Foods, subline will fill lemonade slot among array of coconut, watermelon and other cold-pressed drinks,

with flavors like Pomegranate, Lavender, Passionfruit and Basil, as well as more straight-down- middle Lemon

Lime (limeade). Pomegranate sku will include floating pom seeds, chia-style. Bevs are being produced by

copacking partner FreshBev in Conn.

With launch Luks is joining ranks of cold-pressed bev producers who’re aggressively riding price curve down to

democratize segment. Like others, he’s aiming to get his costs down – not just with recipes calling for less-

expensive ingredients or less of them, but by buying directly from growers now rather than thru brokers as in

earlier days. Recall, Honeydrop began as shelf-stable line that struggled for profitability amid constant promos of

bigger good-for- you brands like Honest Tea. Prompted by regional Whole Foods execs, former Pepsi exec Luks

segued to cold-pressed side, using locally procured raw honey and, at high end, Manuka honey, tripling price

point from shelf-stable line but finding more defensible niche that taps into many consumers’ desire for fresh,

locally sourced products.

Now Luks is attempting to go broader. A few weeks ago he brought aboard former BluePrint sales exec Becky

Byszewski to run sales from her LA base, bringing array of relationships with Whole Foods regions and other key

accounts. Founder also concluded modest capital raise in Dec, drawing upon existing investors. Among

mainstream retailers who’ve been coming aboard are CVS, with 450 stores coming aboard by this summer in

NY/Conn and another 400 or so out west, as well as 150 Rite Aid stores. On core natural/specialty side, Sprouts

Farmers Market just picked up full line, including both the pricy Manuka honey entries and the flavors employing

locally sourced honey. Co moves via DSD in NY, with partner Dora’s Naturals, and now is eyeing similar push

in Southern and Northern Calif and potentially Boston.

Monster Beverage nearly recovered

share decline this afternoon after market had chance to digest sales and earnings misses last night that were

chalked up mainly to transitional issues. In Q4, MNST reported net sales increase of 6.6% to $645.4 mil, with

topline depressed by advance buying ahead of Aug price increase (-$11 mil), “distributor transitions and

uncertainties” in some int’l markets as brand negotiated transition to Coke bottling network as existing

distributors expecting termination in Spain and S Africa as well as German bottlers destocked (-$11.8 mil) and

currency fluctuations (-$19.7 mil). Without those negatives, net sales would have surged $13.6%, MNST brass

noted. Operating income rose 18.4% to $228.4 mil. For full year, net sales rose 10.5% to $2.72 bil and operating

income rose 19.6% to $893.7 mil. Net sales # was 8% below analysts’ consensus view and earnings per share of

67 cents 18% below expectations.

“We clearly are having a choppy time of getting everything implemented and in line,” acknowledged chmn/ceo

Rodney Sacks, but he hopes key transitions will have been negotiated and begun implementation phase by end of

Q2. Co is in an “advanced stage of discussion with principal Coke bottlers around the world.” He argued that

continued strength of demand for brand is reflected in more consistent Nielsen scanner data.

Tho shares lurched in after-hours trading and started today low, analysts took results in stride, particularly since

co noted that current qtr had begun with Jan gross sales up 12% on currency-neutral basis. “No change to our

thesis,” wrote RBC’s Nik Modi. “Our ‘outperform’ thesis is based on the long-run top/bottom line opportunity as

Monster evolves as the next global megabrand in consumer staples.” Headlined Wells Fargo’s Bonnie Herzog:

“Disappointing Quarter Masks Underlying Strength of Business & Ultimate Growth Trajectory.” “We encourage

investors to focus on the underlying improvements in end-demand trends and look past the near-term noise

affecting some international markets,” wrote Bonnie, who’s also got an “outperform” rating on stock.

Recall that MNST team is engaged in several complex undertakings: transitioning distribution to Coke bottling

system in most of world, getting its hands around motley array of energy brands acquired from Coke, and trying

for first time to crack China market. On conference call last night, chmn/ceo Rodney Sacks and vice chmn Hilton

Schlosberg offered updates on these initiatives, and also shed further light on surprise deal announced Tues to

acquire their main flavor ingredients producer, American Fruits & Flavors (BBI, Feb 24). No new info, tho, on

what Monster brass contends will be groundbreaking new platforms that will start to emerge later this year.

Further Progress Overseas with Coke System Co has substantially completed transition in most of 28 countries

serviced by Coke Hellenic Bottling, including Russia, which Morgan Stanley estimates to represent 2% of global

energy biz. It’s transitioned in both Spain and Portugal to Coke Iberian, in Turkey and 10 other countries via

Coke Icecek, and Australia and New Zealand via Coke Amatil. KO-owned Bottling Investment Group is aboard

for majority of its markets, too. MNST brass claimed good progress in figuring out puzzle in S America, and has

obtained preliminary approval for Monster formula in China, with launch anticipated for late 2d qtr. China reps

11% of global energy sales, per Morgan Stanley estimates. For Q4, Monster Bev reported 8.6% gain in net sales

outside US to $145.3 mil.

Monster Rehab: Work Proceeds Fixing Coke-Inherited Energy Brands Energy brands like Full Throttle,

NOS, Relentless and Burn that were inherited from Coke – which operate off CSD-like concentrate model rather

than finished-goods model like Monster – were soft in period, which Monster execs chalked up to ongoing

challenges from Coke-owned days they’re moving quickly to address via moves to reposition and repackage

brands, add flavors and devise more effective marketing strategies. In meantime, softness appears to have sapped

morale of some Coke bottlers. “In essence we remain satisfied with the acquisition of those strategic brands and

their profitability relative to the purchase consideration that we paid,” insisted Schlosberg. Added Sacks: “Long-

term we believe we will stabilize and continue to grow these brands, albeit in different ways” than under Coke.

AFF Acquisition: Long-Pursued, Will Boost Int’l Push Coming out of blue, AFF acquisition startled Monster

watchers, prompting speculation that it might be greasing wheels for broader Coke investment or represent new

biz avenue for co. On last night’s call, Monster execs had more prosaic explanation: they’d been pursuing deal

for a decade and it finally came together. They disclosed that AFF’s 2015 revenues were $168 mil (BBI had

estimated somewhere under $200 mil), confirming that $690 mil price is steep multiple by conventional measure.

But they argued deal should do much to enhance MNST’s gross margins (since 87% of AFF’s have been to

Monster itself, deal won’t grace top line but will knock out considerable COGS) and expressed hope that outside

customers representing other 13% of biz will stay aboard. Deal gives MNST full control of IP associated with

numerous key Monster Energy entries – including core green can, Lo Carb, Absolutely Zero and most flavors

within fast-growing Java Monster and zero-calorie Ultra sublines – and represents culmination, Rodney said, of a

decade’s wooing of founder who, as he approached age 80 last year, finally proved receptive to overtures. As

Monster grows dramatically overseas, AFF – which has footprint only in Southern Calif – will “be able to grow

with us,” tapping into MNST’s legal and regulatory expertise in navigating approvals processes in foreign

markets. But Monster Bev will continue to patronize other flavor suppliers, with view to obtaining cutting-edge

technology. Nor does this deal presage other acquisitions, or broader effort to build new biz around flavor

technology. “We took the opportunity when we could,” said Sacks. “It was something we wanted to do a long

time. It’s not our intention to expand” further into flavor biz via other acquisitions.

Zola

Fruits of the World is adding to its canned coconut water portfolio with Chocolate entry that offers touch of

indulgence at modest calorie hit. New entry, priced at $2.49 per 17.5-oz can, is made in Thailand from natural

chocolate powder and contains just 11 g of sugar, or 50 calories, per 8-oz serving. It will be on view at upcoming

Natural Products Expo West in Anaheim in coupla weeks. Founder/ceo Chris Cuvelier said entry was devised to

be extremely drinkable, almost like a light chocolate milk. It taps into flavor that was pioneered by Zico and

remains top seller for Coca-Cola- owned brand. Zola entry will be backed with campaign that invites, “Coco, Met

Cocoa.” Also at Expo, Zola will tap into burgeoning interest in chia with Acai Juice with Mango & Chia entry . .

. WhiteWave Foods officially intro’d new nutmilk-based Nutchello afternoon-indulgence line under its Silk

brand, teaming with cookbook author Katie Lee to create cocktail recipes for after-work occasions under names

like Nutty Caramel Banana Daiquiri, Spiked Caramel Almond Chai Tea Latte and Frozen Dark Chocolate Mocha

Margarita. The new line (BBI, Feb 11), which is available in Caramel Almond Cashew, Dark Chocolate Walnut

and Toasted Coconut Cashew flavors, will be kicked off on Sat at Food Network & Cooking Channel South

Beach Wine & Food Fest. Positioned as a “craveable new break time beverage,” it’s being priced at $4.49 per

48-oz PET bottle . . . Big beer cos continue to ransack the soft drink case for flavor ideas for their alc sodas, with

Anheuser-Busch now announcing launch next month of Best Damn Cherry Cola, joining brand launched in Dec

with Best Damn Root Beer. “We named our Cherry Cola mission, ‘Put a Cherry on Tap,’” punned Rashmi Patel,

vp for share of throat. Everyone’s following in wake of hugely successful Not Your Father’s Root Beer

franchise.

Campbell Soup is suffering the

vagaries of innovation roulette, readying a raft of fresh bev items this spring to boost growth even as it dumps a

few on shelf-stable side that didn’t pan out. On co’s Q2 earnings call this morning, prexy/ceo Denise Morrison

pointed to unprecedented # of new products coming down pike from Campbell’s Fresh div, where soup maker has

lodged its growth hopes: its 14 new items will include 6 new flavors for cold-pressed 1915 juice line launched

last year. But in Americas Simple Meals & Beverages div, where co has lumped slower-growing, shelf-stable

foods/bevs, she said co had deep-sixed V8-branded protein shakes and nutrition bars intro’d just a year ago, after

they proved insufficiently differentiated within “crowded and competitive space.”

The new 1915 entries include trio of protein items in Coffee, Chocolate and Vanilla flavors, as well as Coconut

Water Strawberry, Apple Grapefruit Peach Raspberry and Orange Carrot Pineapple. Core Bolthouse Farms line

is adding its own trio of single-serve Protein Plus items – in Strawberry, Coconut and Banana Honey Almond

Butter – as well as Berries & Green Veggies and Mango Pineapple Colada, plus multiserve pack of Raspberry

Blood Orange. Remaining 2 new items are Bolthouse salad dressings.

Context of call was earnings report in which so-called Campbell’s Fresh div failed to grow, if key acquisition is

excluded, a matter of concern for co that has hitched its growth hopes to store perimeter sections like produce. C-

Fresh grew its net sales 10% to $282 mil, but all of it was due to acquisition of Garden Fresh Gourmet. Operating

earnings surged 62% to $21 mil, thanks in part to higher margins of higher-end juices. Americas Simple

Meals/Bevs, which includes canned soups and V8 juices, dropped 3% to $1.24 bil in net sales, while

Biscuits/Snacks (Goldfish, Pepperidge Farm) dropped similar 3% to $682 mil. Co’s plan has been for C-Fresh’s

brisker growth to offset those sluggish performers but things didn’t pan out that way in past qtr.

“We’re not satisfied with that topline growth and I know we can do better,” vowed ceo Morrison of C-Fresh

performance. Besides burst of innovation, co also is adding capacity to support expansion to 50% retail ACV this

year, which would put its fresh bevs in line with category. And while Bolthouse Farms’ heritage carrot

ingredients biz continues to encounter challenges, including further declines in Japan, that remains key part of

mix in part because it provides access to produce sections that can also be leveraged by unit’s Bolthouse Farms

and 1915 bevs, salad dressing and hummus. Morrison noted that co also is turning its capabilities in shelf-stable

products to some of those brands to further broaden their reach.

On shelf-stable bev side within Americas Simple Meals/Bevs, CPB brass said they were pleased with

performance of V8 Veggie Blends and V8 + Energy but V8 V-Fusion line continued to struggle. Also

disappointing was move by soups into K-Cups, CPB execs said.