Once involved in coalitions of food and bev marketers that furiously beat back efforts at state and federal levels to mandate labeling of foods/bevs containing GMOs, Campbell Soup reversed course this morning, calling for national standard and saying it will go it on its own if one isn’t set in “reasonable” amount of time.  Tho it insisted it believes GMOs are safe, “Campbell believes it is necessary for the federal government to provide a national standard for labeling requirements to better inform consumers about this issue,” NJ-based co said in statement.  “The company will advocate for federal legislation that would require all foods and beverages regulated by the Food and Drug Administration and the US Dept of Agriculture to be clearly and simply labeled for GMOs.  Campbell is also supportive of a national standard for non-GMO claims made on food packaging.”  Co noted that fed standard is preferable to patchwork of laws at state level.  If agreement on national standard isn’t reached, CPB will work to “label all of its US products for the presence of ingredients that were derived from GMOs, not just those required by pending legislation in Vermont,” aiming for guidance from FDA and approval by USDA.  Meanwhile, co is withdrawing from anti-GMO-labeling coalitions. 

Particularly in Florida, bars purveying drinks brewed from Southeast Asian leaf called kratom have been proliferating, offering among other things an alternative to opiate addiction.  Except that it’s appearing likelier that kratom itself may be an opiate, as NY Times reported on Sun.  Now, feds have begun new year with burst of activity in controlling ingredient, with US marshalls moving this week to seize nearly 90K bottles of supplements labeled as containing kratom under brand name RelaKzpro, from co called Natural Products LLC in S Beloit, Ill, per announcement from FDA.  Seized shipment is estimated to be worth more than $400K.

“We have identified kratom as a botanical substance that could pose a risk to public health and have the potential for abuse,” said FDA’s Melinda Plaisier, associate commissioner for regulatory affairs.  “The FDA will continue to exercise our full authority under law to take action on these new dietary ingredients, especially if they ignore the notification requirements, as part of our commitment to protecting the health of the American people.”  The substance has been popping up not just at kratom bars but also as a powder in head shops and gas station c-stores, as well as online.  The Times reported that bars have opened in Colo, NY, NC and other states “where customers nurse brewed varieties varying in strength, from plastic bottles that resemble those used for fruit juice.”  Some of the packs, the Times noted, “are coyly labeled ‘not for human consumption’” to avoid gov’t scrutiny.  Non-alcoholic bar in Carrboro, NC, called Krave serves it under less loaded name ketum while bar chain called Kavasutra “does not list kratom on its menu but sells it regularly in bottles and small plastic bags of powder,” Times reported.

Kratom (technically mitragyna speciosa) grows naturally in Thailand, Malaysia, Indonesia and Papua New Guinea.  As concerns have grown regarding its toxicity – with symptoms ranging from vomiting, nervousness, weight loss and constipation to its addictive nature – the FDA moved in early 2014 to issue an import alert allowing US officials to detain kratom-containing items.  Marshalls seized 25K lbs of its from LA warehouse that year.  The agency has the authority to keep the seized kratom supplements for up to 30 days while it decides whether to take further enforcement actions.  Meanwhile, states like Ind, Tenn, Vt and Wyo have banned substance and others are ready to do so once more info is available.  Army has forbidden its use by soldiers, Times noted.  Tho a key supplier, Thailand itself banned kratom several decades ago as abuse mounted there.

New dietary guidelines, issued by gov’t on Wed, dial up the pressure on sodas, do more to emphasize bottled water as preferred bev option and urge consumption of “nutrient-dense” foods and bevs of type that are being proffered by growing # of emerging bevcos.  Still, outcome could have been worse for soda lobby, which successfully resisted efforts to single out sugar-sweetened bevs as a no-no.  As expected, gov’t also backed off earlier plan of urging switch from meat to plant-based foods on environmental grounds after meat lobby’s allies in Congress headed off move.  And what about caffeine, source of so much controversy in past?  It draws barely a mention, with report noting that almost all age/sex groups consume amounts well below recommended upper limits.  In other words, no problema.  Tho it’s clear from consumption data presented in report that guidelines are ignored by many Americans, they directly influence school lunch menus and gov’t assistance programs.

The guidelines, assembled by USDA and Health & Human Services agency from nutrition, health and medicine experts and comments from the public (including trade orgs) and federal agencies, are updated every 5 years, tho this time there was lag as controversial issues were addressed.  Latest set moves beyond general warnings on sugar to actual quantitative limit on calories obtained from added sugars, saying they shouldn’t exceed 10% of daily allowance – about a single 16-oz regular soda.  That’s a first.  The guidelines upgrade the attention given to water as a preferred bev, too.  “Beverages that are calorie-free—especially water—or that contribute beneficial nutrients, such as fat-free and low-fat milk and 100% juice, should be the primary beverages consumed,” recs state.  They also give thumbs up to moderate alcohol consumption – 1 drink per day for women, 2 for men.  Other sections of report addresses salt, cholesterol and other topics. 

In urging much greater consumption of items like fruits and veggies, guidelines provide grist for marketers offering nutrient-dense bevs like cold-pressed fruit/veggie blends, which get a shoutout in report – tho guidelines are clear that these nutrients are best obtained by eating the actual fruit or veg.  “Achieving a healthy eating pattern means shifting typical food choices to more nutrient-dense options—that is, foods with important nutrients that aren’t packed with extra calories or sodium.  Nutrient-dense foods and beverages are naturally lean or low in solid fats and have little or no added solid fats, sugars, refined starches, or sodium,” the recs state.  But committee backed off proposal to eat less red meat in favor of more general rec urging less protein in general, particularly among young guys who over-consume protein.  And as noted, provision inserted into spending bill by Congress prohibited committee from using environmental issues as factor, precluding plan to urge migration from meat to plant-based foods on those principles.  “That was the most controversial thing, and now it’s on the cutting-room floor,” CSPI’s Michael Jacobson told NY Times.

Sugar: CSDs Not Directly Targeted, but View is Unmistakable   Sugar rec “lends support to the FDA’s still-pending proposal that added sugar content be broken out as part of new food and beverage labeling requirements,” MediaPost analysis noted.  Still, gov’t officials “chose not to include the advisory committee's recommendation that people be advised to limit their consumption of sugar-sweetened beverages.”  So that message comes thru less directly, tho it’s still unmistakable.

By gov’t’s measure, sugars currently account for more than 13% of calories consumed – about 270 calories on avg – but tweens and teens, both male and female, are up around 17%, and 20-somethings of both sexes in 15-16% range.  Even toddlers, at one end of age spectrum, and seniors at other are well above that 10% guideline.  (These info breakdowns are charted by NHANES database reported in What We Eat in America.)  Major sources of sugar calories are listed as bevs (at 47%, excluding milk and 100% juice), snacks/sweets (31%) and grains (8%), data which would seem to refute soda lobby’s argument that its products are unfairly singled out.

Actually, even that 10% is stretching it: guidelines also urge that no more than 10% of calories derive from saturated fat, and footnote notes that “for most calorie levels, there are not enough calories available after meeting food group needs to consume 10% of calories from added sugars and 10% of calories from saturated fats and still stay within calorie limits.”

Caffeine: Hardly Any Demos Seen to Consume Excessive Amount    Strikingly, after big to-do a couple of years ago that hauled energy drink execs before congressional committees, caffeine drew barely a mention in report.  The DOA/HHS writers of recs noted that overall caffeine consumption remains quite low among almost all age/sex groups.  “Average intakes of caffeine among adults, by age/sex group, range from 110 mg (females ages 19-30 years) up to 260 mg (males ages 51-70 years) per day,” guidelines state.  “These amounts are substantially less than 400 mg per day, which is the upper amount associated with moderate coffee consumption that can be incorporated into healthy eating patterns.”  So guidelines writers don’t see any issue that needs addressing.

Watchdogs See as Step Forward, with Some Disappointments   Recs drew general approval from watchdog groups like Center for Science in Public Interest despite compromises they entailed.  Soda lobbyist American Beverage Assn issued statement vouching that “We fully support the goal to help Americans achieve and maintain a healthy weight” and pointing to strides bevcos have made in offering options to help.  Int’l Bottled Water Assn heralded recs that calorie-free bevs, especially water, should be primary bevs consumed.  IBWA was among those that successfully lobbied for water to be included on MyPlate icon summarizing components of healthy diet. 

Graphics in guidelines that measure actual vs recommended range for host of key items for males and females at different age groups in most cases show sharp divergence indicating that Americans have a long way to go to attain diets that will sharply reduce incidence of diabetes, heart disease and other maladies associated with poor diets.  For categories like dark green vegetables or red/orange vegetables, for example, both males and females are shown to consume at least half a cup less than rec, and often considerably wider gap.  Americans do better for category of nuts, seeds & soy products and for oils & solid fats (most older age groups of both sexes actually exceed guidelines).  Still, general shortfall left watchdogs like CSPI continuing to urge greater action – such as soda taxes – to induce more Americans to comply with guidelines.  The guidelines can be found here:

http://health.gov/dietaryguidelines/2015/guidelines/

Spindrift Beverage apparently has brought in another $7.2 mil in equity financing, with private offering being used at least in part to repurchase shares held by officer of maker of fruit-based sparkling bevs.  Financing was revealed in Form D filing, but Spindrift founder Bill Creelman would only say it’s to support company’s growth.  Bill earlier founded upscale mixer brand Stirrings, which he sold to Diageo . . . Cott Corp said it closed on $45 mil acquisition of Aquaterra, Canada’s oldest and largest direct-to-consumer home/office water delivery biz.  It will be operated by co’s DS Services unit, which was acquired a year ago and has since been making moderate-sized “bolt-on” acquisitions, per ceo Jerry Fowden.

In recent quarters, Starbucks has been silent on pioneering Evolution Fresh HPP juice line that it acquired in 2011, announcing no retail or store expansions (in fact it’s shuttered a store) while focusing instead on innovation platforms like Teavana teas.  At recent BevNet Live conference, Evolution Fresh prexy Jeff Hansberry assured BBI that SBUX is intent on building brand deliberately but would have news soon.  As first development, then, co yesterday announced it’s rolling out Evolution Fresh to 1,300+ Starbucks stores across Canada in 4 varieties, Orange, Sweet Berry, Sweet Greens and Super Greens, priced aggressively at $4.95-5.95 per 450-ml bottle.  Move marks brand’s first foray into Canada, though it boasts 15K points of distribution in US, including Starbucks stores and natural and conventional grocers. “Customers will be amazed when they learn that each 450 mL bottle contains from 1 to 2 pounds of fruit or fruit and vegetables,” said Starbucks Canada prexy Rossann Williams, heralding launch.

Like its faster-growing rival Bai, KonaRed has always heralded the wonders of the antioxidant-rich coffee fruit that surrounds the berry that’s roasted to make coffee.  But struggling marketer based in Koloa, Hawaii, now is itself entering coffee realm with pair of RTD cold-brewed items: Original Signature Blend and Hawaiian Vanilla.  They’re packed in 12-oz glass bottles and incorporate both premium coffee beans and Hawaiian coffee fruit.  

Good proxy for types of bevs the new year is likely to bring is diverse array that competed a few weeks ago in BevNet Live Showdown in Santa Monica.  We heralded a couple of nut milks in contest, eventual Showdown winner Malk and another called Three Trees (BBI, Dec 10), but entrant ranks included such nascent segments as fungi-based bevs, cold-brewed matcha tea and functional entry offering alternative to sunscreen in combating sun’s dangerous UV rays.  Here’s roundup on most entries, with a pair we found intriguing broken out in greater detail. 

Teas: Tea Riot, 8th Wonder Superfood Tea, Midori Matcha   RTD tea played out?  Former Pinkberry cmo and brand strategist Laura Jakobsen offered aggressively branded Tea Riot, targeting millennials with “boldness, function, flavors you wouldn’t expect” via hybrid offerings melding teas with waters, juices or lattes that take segment in fresh and functional direction before moving into snacks and other categories.  Initial sku’s are Tea + Water energy (for hydration), Tea + Juice (daily nutrients) and dairy-free Tea + Latte.  Line employs unique fresh-brewing process followed by HPP.  Taking different take on functional teas is 8th Wonder Superfood Teas in varieties that harness Chinese-inspired ginseng green tea for morning lift or Indian Ashwanganda apple chai “to finish the day strong,” per cofounders Daniel Moore and Reed Rush.  It was due to launch this month in natural/specialty stores in Denver and NY at $2.99 price.  One BevNet judge, Ken Sadowsky, worried that it’s too generic-looking to merit the term “eighth wonder.”  And at time matcha green tea is having moment, LA-based entrepreneur Dmitry Steinbuchel offered cold-brewed RTD version, Midori Matcha, that employs ceremonial-grade matcha from Nishio, Japan, and is certified as USDA-organic.  It’s packed in 16-oz PET bottles and offered initially in Unsweetened and Honey versions, with claimed 4-month shelf life post-HPP.

Functional Drinks: MinoTor, UVO   Taking sports drinks in a more functional direction was amino acid-rich MinoTor, promising “performance you can feel” to avid athletes.  Operating as G3 Labs in Buckeye, Ariz, team of IT vets led by Brian Grabowski devised micro-ionized, clear supplement containing 4.2 g of amino acids but only 50 calories.  (Brand name combines Mino from “amino” with “Tor” from mTor, abbreviation for “Mammalian Target of Rapamyacin, a protein synthesis pathway.)  Also on functional side, UVO attempts to offer drinkable alternative to oft-neglected sunscreen under rubric “drink your sun protection.” 

Plant-Based Bevs: Sri Lanka Gold, Genius Juice, IGZU Bamboo Leaf Tea   Among plant-based bevs, Sri Lanka Gold attempts to move up value chain in coconut water by harnessing coveted variety of that name.  (Brand was profiled in BBI on Sep 21.)  Cofounder Sheri Pitigala said current 2 flavors may be buttressed with additional ones using native fruits from Sri Lanka.  Meanwhile, Genius Juice Organic Coconut Smoothies employ the meat of coconut as well as water and offer 4 g of fiber, 6 g of protein and 1,000 mg of potassium.  While coconut waters have been marketed more as natural sports drink, Genius Juice is pitched as meal replacement, starting with Original flavor (pure coconut) and this month adding Coffee Coconut using Fair Trade beans.  So far, said cofounder Alex Baer, brand has generated $300K in sales in 200 stores in 5 states.  Another plant-based contestant was IGZU Bottled Bamboo Leaf Tea, claimed by founders Zak Anderson and Courtney McCoy to be “first-ever bottled bamboo leaf tea infused with aloe.”  Sustainable and versatile bamboo plant, they noted, is consumed across Asia and South America and is due for greater recognition in US. 

Mixers: 1821 Bitters, Ferm Fatale    More entries continue to pour into cocktail mixer segment.  BevNet Showdown included 1821 Bitters, array of shelf-stable shrubs, ginger beers and tonics launched by Missy and Kristin Koefod a year and a half ago and named for 18th and 21st amendments, which ushered Prohibition in and out.  Pair dreamed up idea while cooped up during ice storm and drew initial funding via Kickstarter.  By now, they’ve developed 50+ sku’s, including oddities like Barrel Aged Leather & Cigar, and are sold in 27 states and 6 overseas countries, in retailers that include Target and Marks & Spencer.  Co opened retail store in its Atlanta base in Sep, too, to offer consumers a taste-before-you-buy experience.  Also in mixer mix was claimed “world’s first fermented cocktail mix line,” Ferm Fatale, from LA-based entrepreneur named Julie Cielo looking to help consumers “live clean while living it up.”  It offers items like Shrub-Bucha, melding colonial-style vinegar shrub with fermented tea, and Coco Kefir Tonic, from coconut water fermented with kefir grains. 

ChugaChaga Harnesses Birch Tree Fungus for Antioxidant Boost    Birch water may be on way to becoming familiar feature among the “tree waters” in bev coolers, but former chef and entrepreneur from upstate NY named Luke Evans is harnessing plant that grows on outside of birch tree: antioxidant-rich fungus called chaga that’s consumed in Russia but virtually unknown in US.  This month he’s debuting so-called “tree tea” in tri-state area around NY with organic ChugaChaga brand.  It’s offered in full-wrap 12-oz glass bottle in Classic (sweetened with honey, maple syrup, cane and brown sugar), Peach (with vanilla) and Zero-Sugar flavors, latter using xylitol synthesized from birch trees.  Brand is positioned as nature’s best-kept secret and features diamond emblem on label signifying “diamond of the forest” designation some have given ingredient.  (It’s also known as “king of medicinal mushrooms.”)  “Restore, repair, revitalize,” promises marketing copy.

Evans said he was inspired by brother’s childhood bout with cancer to find ways to “let your food be your medicine.”  It was on hike in Catskill Mtns while working as chef in Woodstock area that he discovered chaga.  Not only does it contain far more antioxidant content than blueberries, pomegranates and acai, but it offers complex of 215 other nutrients with immune-supporting and other properties.  Ingredient is hard to work with, its density requiring 3-hour brewing/extraction process.  For production purposes co relies on network of 700 foragers in Alaska and Canada.  It joins ranks of other fungal bevs like Mudra mushroom iced teas.

Judge’s views?  “I give them a lot of credit, this is true next generation,” said Rebecca Messina of Coca-Cola’s VEB incubation unit.  Still, “it’s a big ask to ask consumers to think of fungus that grows on trees.”  Noted another judge, consultant Greg Fleishman: “I love the space, I love fungus.  But the package is very far away from being commercially ready,” with need to better explicate what chaga is and does. 

Bru Broth Harnesses Burgeoning Interest in Bone Broth Trend   Can entrepreneurs succeed with a beverage in cold box that’s designated as RTD but must be poured into a cup and heated?  That’s premise behind Bru Broth, which looks to harness recent mania for bone broth as source of nutrients like protein, glucosamine and collagen.  Founders Soo-Ah Landa and Mary Butler position their entry as “when bone broth falls in love with cold-pressed juice,” using what they say is proprietary cooking method.  Or, as their other slogans put it:  “Move over coffee and tea, it’s time to bone up” and “Rebuild from inside.”  Bru Broth is initially offered in 6 sku’s: Dtox, Immuno, Cavo, Braino, Bionic and Glow, melding bone broth with ingredients like fresh-pressed carrot, turmeric and ginger.  Partners launched in Bay Area targeting crossfit gyms and other places where paleo-friendly athletes lurk, and offer a delivery service too.  This month they were due to move into copacker to support rollout in northern Calif.  A 16-oz bottle goes for $7-9 at retail.

One judge, Health-Ade Kombucha cofounder Daina Trout, worried that it will be tough to sell as a RTD entry something that has to be poured into a cup and heated.  Also, “on your packaging, your cow kind of looks like a dog, just a little bit,” she added to ripple of laughter.  Opined Fleishman:  “At first it sounded crazy, but it tastes amazing.”

Fast-growing WTR MLN WTR, which has been on hiring spree lately, has just landed new sales chief: John Lynch.  Taking title of chief revenue officer, Lynch started on Mon at brightly branded HPP play based in NY.  John is intimate with refrigerated-bev biz after 5-year run at Coca-Cola’s Odwalla unit, followed by gm role at its Zico Coconut Water brand, where he launched refrigerated subline.  Earlier in career he worked at Gallo, Boston Beer and on Coke’s Publix sales team.  He’s joining team being assembled by Rob Palladino, Pepsi vet who came aboard as ceo last year.  Just last month, Rob brought aboard a pair of Earthbound Farm vets, Will Daniels, running operations, and Sonia Denham, managing sales at national conventional retailers (BBI, Dec 3).

Celebs from varied but equally strenuous realms have ventured into coffee biz in recent weeks: punk rockers Green Day (or two-thirds thereof) and exercise guru Jillian Michaels.

Jillian first, cuz she’s in RTD realm.  She’s leader of investor group that’s taken control of Las Vegas-based Lucky Jack Organic Coffee, launched in 2013 by Richard Karno, who’d earlier founded Southern Calif’s organic roaster Groundwork Coffee.  Karno intro’d cold-brewed organic espresso concentrate, then was among first to infuse nitrogen into bottled coffees for foamy head and even smoother mouthfeel.  Packed in 16-oz stubby glass bottles, Lucky Jack RTD is offered in lightly carbonated Old School, stronger Double Black, cane-sugar-sweetened Sweet Thing and Double Black extension called Mary Jane that adds hemp milk and cane sugar.  Also in mix is the concentrate, called Slow Brew.  They’re produced in plant opened by Karno in suburban Vegas in 2013.  So far line is available chainwide in Sprouts Farmers Markets, in SW div of Whole Foods and in indie natural and specialty stores around LA.  Michaels, who’s previously invested in Krave Jerky and Thrive Market, Michaels has installed her right-hand exec Giancarlo Chersich as acting ceo of Lucky Jack. Info at LuckyJackCoffee.com.

As for Green Day intro, frontman Billy Joe Armstrong and his bandmate Mike Dirnt have launched Oakland Coffee Works from their East Bay bastion, with sustainability claim of offering fully compostable bags and pods made from starches and sugars; even the bag’s valve is compostable.  Packs were devised in partnership with UrthPact and UltraFlex.  Also listed as partners in venture are beans supplier San Francisco Bay Coffee, with whom Green Day worked on packaging, and Oakland roasters the Di Ruocco family doing biz as Mr Espresso.  Oakland Coffee’s first entry, Organic High-Altitude Andean Whole Bean Blend, goes for $13 per 12-oz bag.  Pods are due later this month.  No word on why 3d member of band, Tre Cool, doesn’t seem to be involved.

Recall that coffee biz has long proved a draw for celebs – from Bob Marley family members via publicly traded entity to country music satirist Kinky Friedman, who memorably countered Merle Haggard’s “I’m Just an Okie from Muskogee” with his own “Asshole from El Paso” and ran for Texas governor once.  Coffee line seems to have faded tho Kinkster is still pushing his branded cigars and tequila.

CSD volume slowed to 2.4% decline in 4 wks thru Dec 26 in Nielsen all-channel data (including gas & c-stores) reported by Morgan Stanley’s Dara Mohsenian.  For 52 wks ended just past Christmas holiday, CSD volume declined 3.2% while avg prices were up solid 3.5%.  Regular CSDs slipped 1.6% while diet brands dropped 7.3% for full year.  Coca-Cola CSDs were off 3.2% last 52 wks but had solid 4% price growth for year.  PepsiCo volume was off steeper pace: -4.7% on avg 3.6% price gain for 52 wks.  Dr Pepper Snapple CSDs were off just 0.9% with avg price increase of 2.4% for 52 wks.  So all 3 stuck to strategy of emphasizing price realization over volume.  Private-label brands lost the most volume, off 5.2% last 52 wks and down 7.3% in multi-outlet last 4 wks.  But PL players also enjoyed some price lift, with avg prices up 2.2% for year. 

Energy Drinks Still On a Roll    Energy drink volume increased 7.8% last 4 wks thru Dec 26 in all-channel data and finished year up 8.4%.  Avg prices were up 2.1%.  Monster Energy volume increased 8.8% (tho up just 4.2% last 12 wks) on slim 0.7% price increase for 52 wks.  Red Bull, which had much more aggressive 4.7% avg price hike last 52 wks, still gained 6.2% for full year.  Rockstar, which continually gained at double-digit pace all year, finished up 16.3% on slight (+0.2%) price increase last 52 wks.  PepsiCo energy brands (Amp) finished 2015 with strong momentum, up 12.2% last 4 wks and 11.9% last 12 wks thru Dec 26.  For full yr, PEP energy volume grew 3.9% on avg price increase of 6.7%, largest among major energy drink cos.  Deep price cuts (-17.8%) helped boost private-label volume to 28% gain last 52 wks.

Gatorade Leads Volume and Pricing Gains   Sports drinks volume rose 4.7% on avg price gain of 2.2% in all-channel data last 52 wks.  Category was on upswing in late 2015 with gains of 5.6% last 4 wks and 6.5% last 12 wks.  Gatorade volume was up 5.2% last 52 wks, almost double its main rival Powerade which gained 2.7%.  Avg price on Gatorade brands increased 2.3% while Powerade prices were up more modest 0.6% for 52 wks.  Gatorade accounted for 78 share of dollars in these stores vs 19% for Powerade, per Nielsen. 

Bottled Waters Up Near 8%, Mixed Pricing Picture   Bottled water volume increased 7.7% last 52 wks with avg price increase of just 0.4%.  Pricing trends were weaker for category late in year, down 0.8% last 4 wks thru Dec 26.  Nestle waters finished strong, up 5.7% last 4 wks and 2.9% for full year on slight (+0.2%) price increase.  Coca-Cola bottled waters picked up 6% on 1.3% price increase last 52 wks while PepsiCo waters gained 12% on avg price drop of 4%.  Private-label volume very consistent: up around 11% for 4-, 12- and 52-wk periods in all-channel scans.