Coupla intriguing innovations

employing Ganeden’s BC30 vegan probiotic have independently come up on our radar: a probiotically enhanced

cold-brewed coffee and a guayusa energy extension of probiotically enhanced cold-pressed juice line. Cleveland-

based Ganeden, in biz since 1997, has been aggressively pushing patented GanedenBC30 vegan probiotics, now

in 100+ food/bev items and claimed to be more stable than traditional probiotic organisms such as Lactobacillus

and Bifidobacterium. Details:

Guayusa-Based Cold-Pressed Energy Offers Chance for National Exposure for Garden of Flavor Tho

guayusa player Runa has garnered fair amount of attention in recent years, rainforest herb had never really come

up on radar of Garden of Flavor founder Lisa Marie Reed until her college-age son Mason brought back some

dried leaves from study-abroad trip to Ecuador. Reed found herself mixing it into her cold-pressed juices and

enjoying burst of “good energy.” So now she’s woven ingredient into new subline called Cold-Pressed Energy

that boasts 100 mg of natural, plant-based energy “to help people get off their addiction to Red Bull and Monster

and all those products that are made in a laboratory.” New line is being offered in 4 flavors initially, priced below

core line at $5.99-6.99 vs $7.99-8.49 due to higher water content: Aronia Berries, Turmeric & Ginger (drawing

on popular sku in core line), Wheatgrass (with kale and spinach) and more refreshing Pear & Lemon Juice. As

with all Garden of Flavor items, line reached out to Cleveland-based Ganeden for what label calls “living

probiotics.” All production, including HPP processing, are handled in-house. With shelf life of 60 days vs 30

days for core line, CPE offers chance for Garden of Flavor to hit Calif and other far-flung markets for first time.

Reed said brand has performed well in initial weeks testing in Mid-Atlantic and DC areas, and some retailers say

they plan to merchandise it with their cold-brewed coffees. Intro comes as Garden of Flavor has been selling at

retailers like Mariano’s in Chicago, Mom’s Organic Market in DC area and Whole Foods. Working with

Bricktown Group’s Eric Skae, Reed recently launched CircleUp crowdfunding initiative and is in hunt for

stronger financial partner to accelerate expansion.

Jus by Julie Adds Probiotic Cold Brew Coffee Brooklyn-based Jus by Julie cold-pressed juice brand is looking

to differentiate newly launching Probiotic Cold Brew Coffee by including 1 bil cfu’s of Ganeden’s vegan BC30

ingredient. New line, out in Original and Vanilla flavors, is packed in same 16-oz plastic bottles as core line.

Tho co makes all its juice at own Brooklyn plant, the coffee is brewed off-site using directly sourced Brazil and

Honduras beans. Tho currently listed at $7.99, co is hoping to get price down toward $5.99, said Alan Maleh, son

of founder Julie Maleh, a certified health coach. Several probiotics-reinforced juices will be coming next, Alan

said, as well as snack program later in year.

Jus by Julie has been expanding quickly since 2011 founding – enough to have prompted move to 4th location a

few months ago – with mix of in-house- produced cold-pressed juices and booster shots, copacked soups, wraps

and other items, so far sold online, in Whole Foods and in growing network of NY-area Jus Bar storefronts – 3d

Brooklyn location, in trendy Greenpoint nabe, should open shortly and another unit is in Cedarhurst, Long Island.

DSD house Dora’s Naturals has been running with shot line, and Alan Maleh is hopeful it will pick up additional

items, including cold-brews. Co’s plant, in Midwood section of Brooklyn, miles from trendy North Bklyn,

sources fresh produce from markets in NY and Philadelphia and does all processing in-house, eschewing

preservation methods like flash pasteurization or HPP. Operations are managed by Alan Massri, making return to

bev biz years decades after serving as right-hand man of Brooklyn Bottling’s Eric Miller.

Continuing

program to lend healthier gloss to Capri Sun brand, Kraft Heinz is offering organic version of ubiquitous kids’

refresher. New subline adopts same “Push Play” ad platform that agency McGarry Bowen Chicago created for

Roaring Waters subline last year, tapping into parents increasing preference for unstructured play for their kids,

MediaPost reported. “Let 'em out, let 'em loose, let 'em run, let 'em push, let 'em fall, let 'em go,” urges ad. “New

Capri Sun Organic, made with no artificial colors, flavors or preservatives. A more organic way to push play.”

Trio of 15-second TV spots broke on Nickelodeon and Cartoon Network this past weekend, with regional digital

campaign to follow in Feb and full-fledged campaign in Apr with 30-second spot and print run in lifestyle books

People and US Weekly and various parenting mags. Dennis Wu, dir of refreshment bevs, told MediaPost that

while rollout was set for Apr, several retailers demanded brand immediately after early tests proved promising,

prompting accelerated shipping date to those chains this month. New line commands price premium, with SRP of

$4.29 per 10-pack of 6-oz pouches vs $2.99 for 100% Juice and Super V sublines and $2.50 for original line.

Recall that last year co ditched HFCS as sweetener in core line as it responds to shifting preferences among

parents.

SF-based Project Juice,

juice bar operation which last year boosted its geographic footprint to entire state of Calif with acquisition of

SoCal-based Ritual Wellness, has brought in seasoned consumer products vet Susan Shields as ceo. Susan has

had runs at Quaker Oats, Del Monte, Beautifull, Safeway and most recently Jamba Juice, before embarking on

consulting gig under Pluot Consulting name. Speaking to SF Biz Times, Shields offered expansive view of where

Project Juice brand can extend, saying “I see this company and brand as much bigger than juices, which they've

proven with the 2 stores that offer smoothies, bowls, hot wellness beverages,” Shields said. “I see it going well

beyond juice and providing plant-based nutritional products and being a leader in plant based nutrition, which is a

true trend.” Co launched just in 2013 with tiny outlet in Crocker Galleria in downtown SF and, after Ritual

merger, now operates 9 locations. Along way Project Juice brought in First Beverage Partners as key investor,

joining portfolio that includes SF-based Purity Organic and LA-based Health-Ade.

Looks like soda tax isn’t just a hobbyhorse for liberal US mayors: this week, World Health Organization offered

same policy rec in report titled Ending Child Obesity. “Big Soda Now Has a Planet-Sized Problem on Its

Hands,” headlined Quartz. Saying “no single intervention” can halt rise, WHO’s Commission on Ending

Childhood Obesity has developed “comprehensive, integrated package of recommendations” that ranges from

promotion of greater physical activity to diet. Under rubric to “promote the intake of healthy foods and reduce

the intake of unhealthy foods and sugar-sweetened beverages by children and adolescents,” WHO committee

proposes implementation of “effective tax” on sugar-sweetened bevs. Report cites efforts under way in countries

like Mexico, France, Hungary and Denmark and argues that “Overall, the rationale for taxation measures to

influence purchasing behaviors is strong and supported by the available evidence.” But it offers no specific

guidelines for what would be “effective” taxation level and allows that it’s early days in such efforts, which bear

further watching. Report also notes that other classes of unhealthy foods that are high in fat or sugar may be

regarded as candidates for taxation. Among other recs in this section are marketing restrictions on unhealthy

foods, standardized global nutrient labeling system and “interpretive front-of- pack labeling.” The 68-page report

can be found here:

http://apps.who.int/iris/bitstream/10665/204176/1/9789241510066_eng.pdf?ua=1

Seattle-based brand Golazo, launched by creator of Cranium

game and backed in part by Starbucks’ Howard Schultz, has thrown in towel after 5-year run that saw it evolve

from soccer-themed entry to more broadly targeted natural energy and hydration lines. Tho brand had undertaken

deliberate build, not yet moving much beyond northwest quadrant of US, its gravitation toward conventional

retailers that are bailiwick of major energy drinks and sports drinks had made profitability increasingly difficult to

attain and additional capital harder to raise, founder Richard Tait told BevNet . . . Bev vet Dan Cavanaugh, who

masterminded sales during growth phase of Honest Tea and in years immediately after its acquisition by Coca-

Cola, has landed consulting role as distributor operations mgr for NY for Starbucks’ Evolution Fresh juice brand,

per LinkedIn status update . . . SF-based Drazil, tea-based kids line, has won a test in 375 Target stores scattered

around US, in chain’s health & wellness sets.

Portland, Ore’s Pok Pok Som, Thai-style drinking vinegar spun off from Pok Pok restaurant chain, is slowly

expanding more consumer-friendly RTD subline, which buttressed core concentrate line last fall. New clear glass

12-oz longneck bottles, sold singly and in 4-packs, are anticipated to hit Northern and Southern Calif next month,

after debut in Oct/Nov period in Pacific NW, via broadline distributors UNFI and KeHe. Mildly carbonated

entries are out in Thai Basil, Ginger, Turmeric (using Hawaiian red turmeric sourced from same supplier tapped

by restaurants) and Grapefruit, latter employing seeds and skins of fruit. Co has used concentrate amount that

gets calorie count under 100, with cane sugar the sweetener. SRP is $1.99 per bottle, $7.99 per 4-pack. Single-

serve line joins 9 concentrates packed in 16-oz glass bottles (including flavors like Chinese Celery, Honey and

Tamarind) and 30 flavors that target foodservice via 32-oz bottles. Those so-called Full Strength items are meant

to be blended 1 part som with 4 parts soda or water. Also at Fancy Food booth, co was displaying new Pok Pok

Thaan Thai-style charcoal logs, boasting low smoke, low ash and high heat.

Celsius Holdings’ “negative-calorie” energy drink is about to enter the belly of the

beast: the energy door of 7-Eleven’s national network. Fla-based co said Celsius brand has had 4 flavors

authorized for energy Plan-o- gram for c-store operator’s 1000s of stores: its new Sparkling Grape Rush flavor, a

7-Eleven exclusive for a year, and Sparkling Orange, Raspberry Acai Green Tea and Peach Mango Green Tea.

That becomes biggest splash into energy-drink category’s c-store stronghold by Celsius, which has performed

well in indie 7-Elevens and such rival chains as Racetrak and QuikTrip, said ceo Gerry David, confirming move,

which will put Celsius cheek-by- jowl with Red Bull, Monster, Rockstar and NOS. “We’ll be their only real

nutritional energy play,” he noted of retailer. Gerry said brand will make appearance at next week’s 7-Eleven

Experience internal trade show in Las Vegas, with Celsius investor/endorser Russell Simmons doing meet-and-

greets with attending franchisees and using his social media reach to drive consumers into 7-Eleven stores once

brand ships, starting Feb 22.

Beyond recent Super

Bowl buzz (BBI, Jan 15), looks like Bai is throwing long ball in its marketing, with execs at NJ-based marketer of

antioxidant infusions informing trade partners they’ve stashed $40 mil in marketing till for 2016. Big push will

commence next month with airing of 67 prime time TV ads on 9 of top 15 shows, including Biggest Loser,

Modern Family, Big Bang Theory and The Bachelor, followed by spots on Grammy and Oscar award telecasts,

per advisory sent out by Bai marketers. As for Super Bowl, which co had said would be targeted regional buy, it

seems the ad will run in NY, Chicago and LA, reaching about a fifth of total viewership. As reported, ad via NY

agency Barton Graf will be 30-second variation on 15-second campaign that’s humorously played on how combo

of rich flavor, low calories “doesn’t make sense,” albeit with more crowd-pleasing fireworks. Breakdown shows

Bai Brands targeting $16 mil for Feb/Mar, $7.6 mil for Q2 and heavying up with $14.8 mil for Q3 summer selling

season before going dark on TV in fall. Also in mix are 700 outdoor ads for those 3 key markets, with sassy

slogans like “Flavor so juicy you could sell it to a tabloid,” along with national digital push via Hulu and

YouTube and national social media. Push is being orchestrated by cmo Michael Simon, former Panera Bread

marketing chief and early mentor to Bai founder Ben Weiss. Bai enjoys national distribution footprint via Dr

Pepper Snapple Group, which is also small investor, making this good time for national ad push.

It’s among more intriguing dairy-alternative plays,

quietly proceeding thru development stage: Ripple Foods, which is trying to convert notoriously flavor-

challenged yellow peas into high-protein but highly drinkable liquid, with broader view to doing small bit to wean

consumers off resource-sapping meat-based protein. (The name Ripple Foods is intended to flag way impact may

ripple out on these broader issues.) Both co’s founders and core investors are oriented not so much to CPG space

but to sustainability realm, viewing initiatives like Ripple as small step in addressing issues like cattle’s huge use

of water and production of methane. Lately, founders Neil Renninger and Adam Lowry have been offering first

peek (and taste) to outsiders as they race to have first products ready by Apr, initially in partnership with

unidentified retailer, possibly Whole Foods. BBI editor stopped by co’s Emeryville, Calif, lab and offices last

week for quick discussion of where they’re goin’.

In essence, co’s core technology aims to winnow ultraclean protein from variety of plant sources for harnessing

not just in bevs but in yogurts and other segments, tho first priority is getting bev to market. That’s anticipated to

happen in Apr, with undisclosed natural/specialty retailer lined up as exclusive partner in initial phase. (Whole

Foods would seem to be good guess, but partners are offering no clues.) Line will be in limited but national

distribution in 2016, said Lowry, and priced similarly to other dairy alternatives despite higher protein content.

Ripple hopes to get 12-oz single-serve entry containing 12 g of protein out to retail at just $1.99.

Tho without overt bev experience, principals offer blend of scientific acumen, consumer positioning skills and

experience in scaling new concepts that we may be seeing more of in food/bev space. Renninger is MIT and UC

Berkeley-trained engineer who’s been involved in sustainability-oriented ventures, cofounding renewable

chemical co Amyris Biotechnologies, now publicly traded, and more recently serving as entrepreneur-in-

residence at Khosla Ventures, vehicle of Sun Microsystems cofounder Vinod Khosla. Lowry is climate scientist

who earlier cofounded the environmentally friendly Method Products brand of home-cleaning items, in process

serving as founding B corporation member. (Among Lowry’s other current ventures is co that’s building largest

vertical farm in Newark, NJ). As at Method, which was sold to P&G in 2012 and by now is grocery mainstay,

Adam says plan is “not to pull consumers to a better space (on principle) but to just do a better product that

happens to be sustainable.” In other words, Ripple aims to offer appealing and affordable high-protein bevs as

way to lessen folks’ reliance on meat rather than making overt appeals about sustainability and climate change.

Co has pulled in $13.6 mil in Series A round, with investor roster that seems to include Prelude Ventures, Khosla

vehicle that’s focused on innovations – from batteries to farming productivity – that will have positive effect on

climate. (His Khosla Ventures has been involved in food space via investment in Hampton Creek and Unreal

Candy and was investor in Renninger’s Amyris, as well as in well-known cos in other realms like IndieGoGo and

Instacart.) Also in mix are Eagle Cliff, which is focused on clean energy, healthy food and responsible finance

and whose investments include Hampton Creek and Farm Hill meal-delivery service, as well as Nicholas

Pritzker’s Tao Capital, also a Hampton Creek investor. Also in are Blueberry Ventures, which seeks small

investments, and Honest Tea cofounder Seth Goldman and Stonyfield Farm founder Gary Hirshberg (BBI, Dec

16). Goldman, recall, having eased out of day-to- day role at Honest Tea, also is investor at LA-area food startup

called Beyond Meat, with similar mandate and where he has more hands-on role. That co makes burgers, grilled

strips and other meat replacement items.

Ripple partners have spent over a year refining process that extracts protein from difficult-to- work with yellow

peas so as to lose the challenging flavor overtones – one reason, Neil noted, that most players on market today

with pea-based protein offer only flavored varieties. In contrast to some non-dairy alternatives that have made

waves lately, they’re hoping to offer products that manage to offer elevated protein levels with little sugar, all

while tasting delicious. They will have to rely on some degree of gums and stabilizers in formulation.

Unsweetened sample BBI editor tried went down very easily, with none of harsh overtones associated with

ingredient and degree of body and creaminess that seemed very close to cow’s milk. Ripple team is refining

plastic packaging that echoes dairy bottle shape but carries graphics layer of pattern and whimsy to flag its point

of difference and make it approachable on-shelf. “Dairy-free as it should be,” is among positioning lines they’re

exploring.

Next on agenda: building pilot plant near Emeryville hq that will allow co to scale up its activities, including

experimenting with wider variety of protein sources. (It’s activity well within Lowry’s skill set, as he supervised

establishment of Method’s N Amer plant in Pullman District of Chicago a few years back.) It all makes for

ambitious new direction that we may be seeing more of as efforts to head off punishing climate change move into

more everyday realms. Tho co’s Web site at RippleFoods.com is still sparse, glimpse of package prototype and

Emeryville lab can be found in recent profile in SF Chronicle here:

http://www.sfchronicle.com/business/article/Got-milk- Emeryville-firm- attempts-to- disrupt-6730793.php#photo-

9132637

Never

mind your Twitter feed. What do Twitter employees themselves feed upon? If their new SF hq is any sign, on

bev side it’s array of natural, mainly plant-based items including kombuchas, almondmilks and protein bevs,

along with indulgences like ginger beers.

To cater to techie elite moving into gigantic former furniture mart on SF’s Market Street, building operators have

been installing expansive network of eateries on ground floor under rubric The Market on Market, including

handful of sit-down restaurants, Four Barrel Coffee café, taco, sandwich and pizza stands and convenience

grocery, array that some view as SF’s answer to Mario Batali’s fast-expanding Eataly empire. “Totally bonkers

food complex,” headlined Eater last Jan as plans emerged. Satellites are coming soon to Polk and Main Streets,

too. So what’s bev selection there like? Not like much else in town, aside maybe from Bi-Rite Market, BBI

found on coupla visits during Fancy Food Show visit. Forget about finding major brands like Coke and Pepsi

CSDs and Gatorade sports drinks, conventional energy brands or even fast-growing upstarts like Vita Coco

coconut water, Body Armor and Bai. Bias appears to be to local and Calif brands, many of them plant-based,

quite a few very early-stage. For example, barely off-the- ground Rau Chocolate, an HPP item, got 2 facings for

each of its 5 flavors in main cooler, while tiny bottles of Inna Shrub enjoyed several facings on warm shelf.

Tho BBI was unable to connect with store mgrs, merchandisers encountered during visits indicated that

kombucha continues to be hot category there, with Portland, Ore’s Brew Dr in particular flying off shelves during

promos, one said. (A couple of restaurants in complex serve draft kombucha, too.) Also popular is expansive

selection of coffees occupying 2 full shelves, including both major cold-brew brands and small local players like

Pop & Bottle. (However, velocity of packaged entries may have eased a bit since arrival of Four Barrel café, with

its fresh-made cold-brew, and location nearby of affiliated Blue Bottle outpost, one merchandiser hypothesized.)

On one visit, most clearly depleted brands were Orgain plant-based protein drinks, on 20% deal at time, and

Califia Farms’ multiserve bottles of almondmilk. Woman working aisles said broad array of ginger beers also

blows out, with employees buying them in bunches (for Moscow Mule orgies back upstairs?).

Energy options are confined to full shelf of Guayaki Yerba Mate, with no sign of Red Bull, Monster or Rockstar

or even the established natural-energy brands. Only sports drink is Seattle’s Golazo, with ample facings.

Coconut water shelf melded established brands like Amy & Brian, Zico, Coco Libre, Taste Nirvana and Harmless

Harvest with smaller HPP entry Invo. (Curiously, there was no Vita Coco, maybe cuz aseptic boxes are viewed

as too clunky. Rival Zico was only out in PET bottle format.) Cold-pressed juices comprised full shelf of mid-

price Columbia Gorge as well as ample selection of local superpremium play Forager, with no sign of Suja,

Evolution Fresh, BluePrint or other national brands.

One merchandiser recalled that cafe tried in early days to completely exclude mass sodas like Coke and Pepsi but

encountered backlash, prompting compromise in which it now devotes coupla facings at bottom of main cooler to

10-oz glass bottles of Coke and Diet Coke. (We didn’t even notice them on first visit.) Mexican versions with

real sugar also are on hand. Taco bar has old-fashioned floor-standing metal Coca-Cola box filled with glass-

bottle Fanta.