Energy drinks,

anchored by Monster Energy, and Smartwater continued to be key drivers of Coca-Cola Enterprises’ sales in

Europe last year. Last week’s earnings report disclosed 0.5% decline in total volume for full-year, compounded

of 1.5% decline in CSDs (including 2% decline for Coca-Cola trademark brands), tho CSD decline would have

been far steeper were it not for 10% growth from energy drinks (which CCE classes as flavored CSDs). Monster

brands surged 17%+ and well-received zero-calorie Ultra subline is adding flavors this year, CCE brass disclosed.

Among other bright spots, noncarbs rose 4%. Within that segment, juices rose 2% thanks to double-digit growth

in Capri Sun, which added new flavors and packages and expanded into Sweden. Bottled water was up 12%,

driven by continued expansion of Smartwater in UK and growth in Chaudfontaine brand. Among positives on

CSD side were continued growth of Coca-Cola Zero (+5%).

CCE ceo John Brock credited more cohesive effort behind energy category now that their ownership has been

unified under Monster Beverage, in which KO holds key stake. “Monster, obviously, is the driver, but having

those other brands, like we have with Relentless, Burn and Nalu, really gives us a multi-brand strategy, which I

think we are now collectively managing in a far better way than we have in the past,” John told investors on

Thurs, per transcript of earnings call by ThomsonReuters StreetEvents. “I think you're going to see some pretty

significant growth in the energy category, continuing growth across the whole of Europe, as we work again with

the energy team to drive growth there.” Hubert Patricot, who runs European biz, added that CCE is accelerating

placement of coolers, both multibrand Coke coolers containing 1 or 2 Monster sku’s and dedicated Monster Bev

coolers that may contain Monster, Burn and Nalu energy brands.

Fiery

Fusions has expanded its Habarita margarita mixer line from 1 to 3 sku’s and landed beer house Oak Beverages to

distribute items in NYC, Long Island and northern suburbs. Line launched out of Easton, Penn, by entrepreneur

Peter Ciotto in Original spicy lemon-lime flavor was recently buttressed with Peach and Watermelon flavors, all

of them packed in 750-ml bottles. Oak handles beer brands like Sierra Nevada, Sam Adams, Guinness and

Brooklyn beer brands in various parts of its territory, as well as limited NA assortment that includes Manhattan

Special Soda. Also on distribution front, Habarita has relaunched NJ territory with Quality Spirits of S Amboy,

which will handle entire state. Habarita is advised on sales and distribution issues by NJ-based Cascadia

Managing Brands . . . Reed’s said 168-unit Stater Bros Market grocery chain has authorized its Reed’s and

Virgil’s natural sodas throughout its Southern Calif territory.

Campbell

Soup has tapped Mead Johnson vet Greg Shewchuk as svp/chief marketing & commercial officer for its Americas

Simple Meals & Beverages div, new grouping into which co has clustered its mature, shelf-stable items including

V8 juices. Move effective Mar 7, as reported by Advertising Age, fills spot left by departure of Darren Serrao,

who went to ConAgra last Aug as chief growth officer. Shewchuk, 50, had earlier served as vp for innovation for

N Amer snacks at Kraft Foods following runs at Cadbury, Diageo and Unilever. He described himself to AdAge

as “a foodie and a marketer,” and said he made jump in part because he found co’s new positioning as “Real food

that matters for life’s moments” compelling.

Playing the seasonal card a 2d time, Lifeway Foods next month is offering a

limited-edition spring seasonal kefir, Hibiscus Rhubarb Pie Kefir, that also represents its first label design

collaboration, with fashion icon Cynthia Rowley. Package of milk smoothie item is cloaked in bold floral

patterns associated with Rowley’s designs. Item reprises last summer’s first seasonal, Watermelon Kefir . . .

Seeing opportunity in fact that 90% of all refrigerated creamers are sold in flavored versions, Organic Valley is

buttressing unflavored organic Half & Half item with French Vanilla and Hazelnut extensions. The flavors

contains 7 g of sugar, 30% less per teaspoon than natural half-&- half entries under Natural Bliss and Simply Pure

brands. As with Original sku, they’re packed in 16-oz PET bottle with flip cap, offering upgrade to conventional

coffee creamers. Due on shelves next month, items command $3.49 SRP . . . LA-based Caliwater Cactus Water

has added Cactus + Peach and Cactus + Berry to its flavor range, employing fresh Calif peaches for former and

native Calif wild berries for latter. As with core sku, both employ locally grown, wild-harvested prickly pear

cactus fruit puree.

Launch of RTD matcha green tea line from MatchaBar may be modest in scope so far but it seems to tap

into uncommon cultural impact its youthful founding brothers have had in NY and beyond since opening their

first matcha tea café a year and a half ago. Max Fortgang, a former concert promoter, and Graham Fortgang,

foodie working at booming Pain Quotidien organic eatery chain, opened store in Williamsburg section of

Brooklyn in Sep 2014 in derelict space they built out themselves, sourcing powdered ceremonial-grade green tea

ingredient directly from 5th-generation family farm in Nishio, Japan. Store offers reinvented matcha recipes like

best-selling Vanilla Almond Matcha Latte and likes of Fuji Apple Ginger Matcha and Iced Watermelon Matcha,

while also hosting brothers’ own take on Japanese matcha ceremonies. Store quickly created ton of buzz and

inspired other operators to open matcha bars in city. But bros managed to garner more than local buzz by

opening pop-up stores in LA and Tokyo, and at music fests, hackathons, 20+ college campuses and TED talks.

Opening a 3-day popup presence in Tokyo might have seemed like selling sand to Saudis, but Youtube video

shows consumers lined up down block to try out unconventional blends, which include watermelon, cucumber

and mint. So in that sense it was kinda like American craft brewers bringing lemongrass, pepper and other novel

beer ingredients to tradition-obsessed Europeans. Also in branding arsenal are distinctive flag device on cups,

which have been shared 150K times on social media, as well as NY-centric slogan “Good things come to those

who hustle” (which may have inspired Vitaminwater’s local “Hydrate the hustle” out-of- home campaign).

Now Fortgangs are hoping to further extend brand with RTD line, positioned as providing source of calm,

focused energy thanks to extended release of caffeine and presence of L-theanine. As reported (BBI, Jan 15), line

was devised with help from NJ incubator MetaBrand, and is packed in 10-oz glass bottle in trio of flavors:

Original, Fuji Apple Ginger and Peach. Shelf-stable line, boasting 12-mo life, comes in under 100 calories, but

contains 2 g of ceremonial-grade matcha, for 80-100 mg of caffeine. That’s considerable boost over other RTD

matchas that have hit market recently, including boxed line from loose tea purveyor Tea Pigs and new glass-bottle

line from organic fruit juice marketer Purity Organic. “We’re double the caffeine of any other product in the

market,” Graham contends, adding that he was pushed toward heavier payload by feedback at pop-up events.

Each bottle carries flag device familiar from in-store cups. Brand gets $3.39 at Whole Foods, $3.99 at most other

places. Brand is available only in NY so far, via DSD house Dora’s Naturals, but will add New England next,

then LA and SF. Brothers are trying to raise $2 mil in capital to support rollout. They recently made trek over

Williamsburg Bridge to open Manhattan store, in artsy Chelsea nabe, and store in LA may be in works down the

road. Info at MatchabarNYC.com.

Just 14 months in market, Tio Gazpacho bottled organic soup line is in for some significant

changes as founder Austin Allan looks to find right matrix on packaging, positioning and pricing sides. Youthful

entrepreneur believes that, after 9 months of effort, he’s close to concluding $1.25 mil capital raise that will

include unnamed CPG player to help fund flavor addition to core line, addition of lower-price subline and

geographic expansion. Looking back at past year, Austin said, “2015 was all about understanding the product and

how it’s merchandised and why people are buying it.” Fortified with knowledge, he’s ready now to move

aggressively forward. Encouragingly, in some suburban-NY Whole Foods locations – say, more middle-brow

Westchester town of Portchester – Tio Gazpacho turned as many as 20 units per week of each flavor.

Recall that Tio Gazpacho was inspired by 4 years that former training and banking exec had spent in Spain.

While there he saw many pre-packaged gazpacho soup entries, including PepsiCo-owned market leader Alvalle,

and didn’t see why better-quality version wouldn’t thrive in US. He launched USDA-certified organic brand

from Fla base, then relocated to NY once brand entered that market. He’s currently got sales/marketing rep in

place in each market.

So far, Tio has been available in 3 savory flavors in 12-oz plastic bottles that recently added colored background

to packages, coded for each flavor: Gazpacho Clasico (vine-ripened tomato, green pepper, cucumber, in red

pack), Gazpacho de Sol (yellow tomato, yellow pepper, carrot, in orange pack) and Gazpacho Verde (kale,

spinach, avocado, mint, in green pack). Now Allan is ready to tilt toward sweet side of taste profile with new

Gazpacho Rosado sku that he’s still putting finishing touches on, using watermelon and other ingredients for

more refreshing impact, in pink-hued pack. They go for $7.99 at Whole Foods, a dollar more elsewhere.

Coming down the line, hopefully in time for intro at Natural Products Expo East this fall and on-shelf appearance

in early 2017, is as-yet- unnamed subline that will lessen reliance on organic tomatoes and other pricy ingredients

and slightly downsize pack in quest of $4.99 shelf price, Austin told BBI during visit to co’s WeWork space in

NY’s Flatiron District. New line will stick with savory tilt, in part to lessen reliance on sugar, and seek to tap into

burgeoning movement of some consumers away from juicing in favor of “souping” (BBI, Feb 8). Move would

put Tio Gazpacho in synch with fresh-juice providers like BluePrint and Daily Greens that have used smaller

sizes to attain more approachable price point without unduly diluting product proposition.

Brand currently is available in 8 Whole Foods stores in NY area, designated as local item thanks to copacking at

Fresh Bev in Conn, but expansion is imminent. As of last month brand also was available throughout Fairway

chain and via city’s dominant online delivery service, FreshDirect. Other retailers it’s cracked include King’s and

Balducci’s. Brand gets to market via DSD house Gourmet Guru in NY and network of small distributors in Fla.

It’s in broadliner KeHe and Allan hopes to relaunch UNFI in spring after earlier alliance proved a bit too

ambitious. Allan has been advised on capital raise by Scottsdale, Ariz-based consultant Jim Tonkin.

CSD volume declines

steepened and energy and sports drinks growth slowed last 4 wks thru Feb 6 in Nielsen all-channel data reported

by Morgan Stanley’s Dara Mohsenian. Latest period ends on Sat of Super Bowl weekend, so doesn’t include full

impact of game day purchases. CSD volume sank 4.5% last 4 wks (vs 3% decline for 12 wks) while avg prices

slowed gains slightly to +2.2%. Coca-Cola and Dr Pepper Snapple volume declines accelerated significantly as

avg prices edged higher. KO volume was off 3.5% (vs -1.3% for 12 wks) on avg 1.6% price increase last 4 wks.

DPS nearly doubled its 12-wk decline rate and was off 5.7% last 4 wks with a solid 3.8% price hike. PepsiCo

volume trends worsened, too, off 5.1% for 4 wks even as avg price hikes declined to +1.3% vs +2.4% over 12-wk

stretch.

Energy drink gains slowed to +5.1% last 4 wks vs 7.5% growth for 12 wks. Prices edged up a mere 0.9%. Red

Bull volume was up 2.6% (half its gain pace for 12 wks) even as avg price increases were down to +0.5%. That

compared to +2.6% price hike for 12 wks. Monster Energy was up 4.4% (down from +5.8% for 12 wks) with avg

price increase of 2.7% last 4 wks. Timing even slowed for Rockstar, which has been on a roll for some time.

Rockstar still up 13% (down from 18% for 12 wks) on avg 0.5% price drop. PepsiCo (Amp) gain pace cut in half

to 5.7% with avg price increase of 1.7%.

Sports drinks volume growth slowed to just 0.8% last 4 wks despite avg price drop of nearly 2% last 4 wks thru

Feb 6. Sports drinks were up 4% on flat pricing prior 12 wks. PEP (Gatorade) gained 0.8% on avg 2.7% price

drop last 4 wks (vs 4.5% volume gain for 12 wks). KO (Powerade) volume slipped 0.3% even with price drop of

2.6% in all-channel stores last 4 wks. Private-label sports drinks were off a tad (-0.1%) after taking hefty 8.3%

price increase.

Update on Austin-based Drink Daily

Greens LLC noted Form D filing last month listing $3 mil in new equity brought in. Actually, Form D filed

yesterday indicates that latest raise totaled $5.5 mil; the Jan filing apparently was reference to prior round last

year via WhiteWave Foods, which is believed to have participated in new round along with unidentified private

office based in Dallas area.

Grown Up Soda, the lightly sweetened gourmet CSD, is

clambering more directly onto the craft-food bandwagon with a new marketing slant that will position it as

“Crisp. Clean. Craft.”  The new tagline will be couched in new POS, online ads and social media via wood-panel

background imagery that plays up the brand’s artisanal bent. The move comes as NY brand known as GuS

continues to broaden its availability in foodservice accounts, garnering access via OTG Management into 25

locations at NY-area airports JFK, La Guardia and Newark while adding Plaza Hotel’s Palm Court to its roster of

high-end restaurants. (It’s used in items like the Eloise Root Beer Float, at $13, or by the bottle at $8.) Brand

also has major presence in Mario Batali’s Eataly operations in NY and Chicago, as well as at likes of Per Se,

French Laundry and Daniel Boulud.

House of Representatives today passed menu-labeling law dubbed

the Common Sense Nutrition Disclosure Act of 2015 that, depending on point of view, offers needed flexibility to

restaurant operators or watered down regs to point of near-uselessness. At Natl C-Store Assn, prexy/ceo Henry

Armour lauded bill as “another giant step forward in ensuring consumer choice and making it possible for

convenience stores and others to comply,” but Center for Science in Public Interest derided it as “neither common

sense nor would it disclose additional nutrition information,” in words of nutrition policy dir Margo Wootan. HR

2017 intro’d by Reps Cathy McMorris-Rodgers (R-Wash) and Loretta Sanchez (D-Calif) passed by 266-144 vote

and now goes to Senate. Among flexibility-promoting terms, bill allows restaurants to decide what’s a standard

serving size, move likely to sow confusion, said critics, which included scores of health and nutrition orgs, many

of whom had hammered out regs with restaurant industry groups.