Dean Foods reported 14% slide in sales to $2.03 bil in Q3 but net income swung from $16 mil loss a year ago to $20 mil gain this year. EPS of $0.30 beat expectations by about a nickel. Operating income swung from $1 mil deficit to $50 mil profit in qtr. Dean reported its total volume "across all products" came in at 658 mil gallons, -2%. Dean's share of fluid milk volume slipped to 35.3% from 35.9% in year earlier. "I'm very pleased with our 3d quarter results that demonstrate we are driving the right initiatives and agenda," said ceo Gregg Tanner. Dean views its national Dairy Pure fresh whole milk and its TruMoo flavored brand "as a competitive advantage that complements our customer set and leverages the national scale of our network," he added. During conf call, co disclosed it's planning on expanding lactose-free offerings as it competes with KO's Fairlife brand.

Coca-Cola can't seem to catch a break these days, not even at gabfests in which it's not a formal participant itself. This week it's found itself marked as Exhibit A of immoral investments at one conference, just 2 days after prominent beer/bev analyst tagged it "Disney World for ABI" at another.

At conference in NYC yesterday honoring Warren Buffett and his 50-yr run at Berkshire Hathaway, mood soured when another high-profile investment guru, William Ackman, took nasty shot at KO, one of BH's longest-held positions, reported Wall Street Journal. "I have a problem with Berkshire's ownership of Coke," Ackman said in response to question from floor. "Coca-Cola has probably done more to create obesity and diabetes on a global basis than any other company in the world," he claimed in scathing rebuke. "These comments are irresponsible and do not recognize the current breadth of our business," a KO rep responded to WSJ. This "moral debate" as Journal called it, started earlier in week when BH's vice chmn Charlie Munger took shot at Valeant Pharmaceuticals Int'l, one of "most prominent investments" at Ackman's Pershing Square fund. Valeant "was too aggressive in ignoring moral considerations in the way it did business," Munger contended. Valeant has been highly criticized for buying rights to drugs, then taking prices to consumers way up. Valeant shares fell 5.7% on Wed to $78.90, less than half what Ackman's fund paid on avg for its 20 mil+ shares, noted WSJ.

Meanwhile, at annual NY conference hosted Mon by BBI parent Beer Marketer's Insights, Coca-Cola entered picture, briefly, when conversation on analyst panel turned to gigantic deal in which Anheuser-Busch InBev is buying SABMiller. "If I'm Coke I'm worried, because I'm next," offered HSBC's Carlos Laboy, who's among those who've promulgated theory that, since it's proved not to adept at growing top line, Brazilian investors at controlling partner 3G need to keep moving to larger acquisitions to keep their financial/cost cutting prowess paying off. Carlos added: Coke is "really slow, really inefficient, not a chaser of pennies. Coke hasn't excelled in innovation, hasn't excelled at marketing. To me it's like Disney World for ABI." Of course, it's not foregone conclusion that ABI won't find ways to boost organic growth, and another panelist, Evercore ISI's Robert Ottenstein, sees ABI "tweaking" its culture "in terms of driving more top line growth" going forward, via "step up in marketing," and "moving ideas around," learning from one market and applying it to others. That, per the theory, would lessen ABI's need to bag a bigger prey.

One featured speaker at BMI event was ABI's own João Castro Neves, who runs Anheuser-Busch. It didn't go unnoticed by audience that he had blue-labeled bottle of Pepsi placed prominently on lectern. (Of course, ABI is Pepsi distributor in some parts of world.) How come? "So much talk about Coke I thought I'd drink a Pepsi," João quipped. "I still don't drink Coke. Maybe one day."

With new aseptic capability in Allentown, Penn, finally on-stream and revamped juice plant in San Bernardino, Calif, also back in production, ingredients and juice player SunOpta is aiming for double-digit growth on healthy-bevs side, boosting consumer products biz that's set to leapfrog Toronto co's core ingredients biz as workhorse.

SunOpta brass took occasion of 3d qtr earnings call yesterday to offer update on operational activities, as it integrates acquisition of Sunrise Growers and completes major capital upgrades. Besides small investment in industrial minerals biz that it would like to divest, SunOpta is comprised of Global Ingredients biz, its biggest at about $600 mil in revs (2/3 of that organic items), and Consumer Products biz that soon should leapfrog that. Consumer Products is divvied into Healthy Bevs, Healthy Fruit (including frozen fruit that millennials throw into the blender every morning) and Healthy Snacks, each generating over $100 mil in annual revs. Sunrise addition offered boost to snacks side.

For Q3, SunOpta revenues came in flat at $306 mil, but were up 3.5% excluding foreign exchange, commodity pricing and other special items. (That's for SunOpta Foods; parent co also consolidates revenues for declining minerals biz serving steelmakers and other challenged industrial sectors.) Co trading as SOY eked out $400K in earnings, reversing $600K year-earlier loss. Consumer Products segment enjoyed 10% uptick to $126.7 mil, with co anticipating acceleration of growth thanks to Sunrise acquisition, major expansion of healthy bevs production capacity and momentum on healthy snacks side.

"Our Consumer Products segment returned to top-line growth, and we expect further growth as our Allentown facility's commercial production officially commenced last week," said ceo Rik Jacobs. "While the investments and incremental fixed costs have reduced our earnings in the short term, our team has built significant runway for future revenue growth that should translate to greater profitability as we increase our plant capacity utilization."

Formerly focused just on resealable pouches, Allentown plant has completed $25 mil expansion that added hi-speed aseptic line, with room to add more lines as biz grows. San Bernardino also just completed its upgrade, with bottling activity repatriated there this week, said cfo Rob McKeracher. San Bernardino operation was boosted a year ago with acquisition of Citrusource, $30 mil player in private-label not-from-concentrate OJ, including organic varieties. Next step there will be to boost citrus extraction side, on ingredients side of SunOpta's biz. Co also operates aseptic processing and packaging plants in Alexandria, Minn, and Modesto, Calif, which added a new aseptic filler line in Q1 and another in Q2.

Generally, SOY brass is hoping to reverse 2 years of unprofitability on chilled juice side, even as more lucrative aseptic packing side picks up steam in Allentown. Co has $250 mil biz in non-dairy aseptic bevs, with $120 mil in added capacity, meaning, Jacobs said, that it's got to add $30-40 mil in new biz if it's to meet target of double-digit growth. If that happens, segment will be much more profitable. For short term, co is targeting $6 mil in gross profit growth. (Tho it's termed "non-dairy" in financial reporting, product mix includes broth, coconuts, almonds, even oats, as well as nutritional bevs and single-serve dairy items, SOY execs noted.) SOY also is trying to reduce its reliance on less-profitable tolling biz in favor of higher-margin private-label products. Bumps in road have included continued decline of almondmilk, where drought situation in Calif has hurt crop and pushed prices up, as well as last summer's West Coast port slowdown, which hindered exports and caused co to forfeit performance fees. Also exacting short-term hit has been influx of new biz, which required 7 or 8 qualification runs in Q3, each exacting $30K opportunity cost as lines were tied up with trial runs, Jacobs noted.  

Celsius Holdings experienced some turbulence on int'l side in Q3 that put a dent in its pattern of double-digit quarterly sales growth, but its gross margins fortified and it still managed record quarter for its calorie-burning brand. To further ignite volume, CELH is ready to amp up spending on marketing within expanded array of "drill-deep" markets, ceo Gerry David told investors on conference call Tues afternoon.

For qtr, revenues grew 7% to record $3.65 mil. Net loss widened slightly to $895K from $828K a year earlier, after Q4 2014 and Q1 2015 that were profitable, and Q2 that, if not profitable, was cash-flow-positive. For year to date, revenue is up 29% to $12.96 mil and net loss has narrowed to $1.28 mil from $2.29 mil a year earlier.

Growth continued to be robust in key domestic channels: health & fitness, up 49%; retail +25%, Internet +71%. All told, domestic sales rose 35% to $2.52 mil. At new account Gold's Gym, the 4 Celsius sku's quickly made it into top 10 bev movers there, enticing chain to add a fifth flavor. And 24 Hour Fitness will pick up casepacks of Celsius in Jan as an in-club special. GNC nutrition chain is increasing # of doors by 1,500 to 4,500 locations. After some glitches figuring out Amazon biz in past - David has complained about inability to control pricing, among other issues - Celsius has found footing and is ready to initiate aggressive marketing program.

But international sales skidded 27% to $1.14 mil. After purchasing brand's high-performing Swedish distributor, new owner Funk Foods promptly undertook hq relocation from Gothenburg to Stockholm that sent many key execs fleeing and caused what David described as "window of disruption." But that should merely defer some int'l orders, he argued, and Funk holds potential for strong push into promising Norway and Finland markets. Meanwhile, ambitious expansion in Brazil has faltered as economy there has weakened, prompting Celsius to work to secure local mfg to eliminate 100% import tax and thereby lower prices. Co also is working aggressively to launch in China and rest of Asia via partnership with its investor, Horizon Ventures. It's starting by modifying recipe to comply with local regs and planning distribution strategy.

Major priority in coming year will be to build awareness and drive retail velocity. In contrast to "thin and wide" approach of prior mgmt, CELH now makes intensified pushes in targeted markets, and has been encouraged by step-up in effort in LA, which boosted presence in key retailers like Ralphs and Sprout's. So it's building out full teams in its existing drill-deep markets in S Fla, Southern Calif, Texas, New England and Midwest, comprising mgr, territory mgr, merchandisers, brand ambassadors and admin person. It's expanding S Fla market to include entire state, plus Atlanta and Carolinas, Gerry told BBI after call. And sometime next year, Celsius hopes to open up Mid-Atlantic and Pac NW as drill-deep markets.

Co, which was early to make big commitment to new media like Pandora streaming service, continues to explore new means of reaching consumers. David described program in LA in which 1,000 consumers are engaged via their co's HR dept and provided brand info and sample can as a way of harnessing 3d-party credibility. It's also developing 4-part Youtube series targeting viewers age 27-40 as well as 4 video ads centered around successful individuals.

One investor on conference call pushed back a bit on marketing investment, wondering whether it's really necessary, given co's profitability goals. David responded that bevs are "very low margin product and volume plays a key role in profitability down the road." Even if it's hard to predict precisely when payoff will come, he added, "I really, truly believe we have to make this investment."

Univ of Colo Medical School has decided to return $1 mil gift from Coca-Cola now that it's been revealed that Global Energy Balance Network that was being set up with contribution was part of broader effort by KO to tilt obesity dialogue from calories consumed to energy expended via exercise. Statement from univ said "the funding source has distracted attention from its worthwhile goal." For its part, Coke said it would steer the money instead to Boys & Girls Clubs of America.

Among legion of energy brands at recent NACS c-store expo was one dubbed Hype that's building biz mainly in gas stores in Southeast. Based in Knoxville, Tenn, brand's main seller, MFP ("more power" - we're not sure what the F stands for) contains 80 mg of caffeine per 8-oz can; co most recently added Mojito and Afterdark (cinnamon) flavors to lineup. Brand traces its origins back to 1994, well before launch of Red Bull in US, but it was relaunched in US a coupla years ago by fashion photog John Jansheski at big bash featuring Kim Kardashian West (one of his photo subjects). It's focusing mainly on Southeast, reaching retailers via combo of broadliners and beer houses, and cites tests such as one in Mapco stores in Tenn where Nielsen scanner data shows it's turned 6.6 units per store per day, behind only Monster 16-oz and Red Bull 12-oz. Brand will go national within Pilot chain in Jan, one exec there said.

 It's not often that mainstream media touches upon kombucha outside of food and lifestyle features, but Wall Street Jnl has weighed in on continuing controversy over whether some players are being cavalier about regs that limit their non-alc kombuchas to 0.5% alc by volume. "Battle Brews Over Kombucha Teas," headlined paper, which described category as "one of America's fastest-growing bottled drinks even though it tastes a lot like vinegar and can sport tendrils of live cultures that resemble jellyfish." Piece recounts letters sent out by regulator Alcohol and Tobacco Tax and Trade Bureau to kombucha marketers, tho it doesn't ID any of them (BBI has reported that GT's, Health-Ade and Live Kombucha Soda are among them) as well as a couple among the several class action suits that have been filed over issue. Article quotes GT's marketer Millennium as well as trade group Kombucha Brewers Int'l as challenging whether established test procedures are accurate and whether alcohol is part of appeal of segment. "Nobody's saying, 'let me get a 6-pack of kombucha and get wasted tonight,' " said KBI prexy Hannah Crum. Piece also quotes KeVita founder/ceo Bill Moses, who's been gadfly on issue, as citing "close friend and recovering alcoholic (who) fell out of sobriety after drinking another company's kombucha . . . If this category is going to grow from toddler to grown up, it has got to provide transparency" in labeling, Bill stated. As for matter of testing processes, TTB insists its testing methods are reliable but says it would accept alternative methods if industry can show "consistently reliable, accurate and reproducible" results, which KBI has been working to accomplish with process it's proposed. Article cites Euromonitor data showing that US carbonated teas, mainly kombucha, brought in $529 mil in sales in 2014, up from $128 mil in 09.

At time that controversies over alleged health risks of energy drinks appear to have considerably died down, Jnl of American Medical Assn is carrying report of small double-blind study that suggested consumption of Rockstar Energy causes spike in blood pressure and release of flight-or-fight hormone, norepinephrine, that may lead to heart problems. Randomized, double-blind, placebo-controlled study led by Mayo Clinic's Anna Svatikova was conducted in late 2013 with 25 healthy volunteers age 18 and up. Each consumed 16-oz can of Rockstar and placebo drink within 5 minutes, in random order on 2 separate days. Placebo was identical to Rockstar except that it lacked caffeine and other stimulants like taurine, guarana, ginseng and milk thistle. In response to study, industry lobbyist American Bev Assn reiterated there's nothing unique about the caffeine in energy drinks, per account of study in STAT. STAT also quoted Svatikova as saying Rockstar was chosen only as representative of other popular drinks. She acknowledges larger test group and broader array of brands will need to be future step.

At time visibility of UFC star "Rowdy" Ronda Rousey is higher than ever, Monster Energy has inked undefeated bantamweight to endorsement deal, picking up relationship once held by rival energy brand Xyience Xenergy in days when it was owned by partners behind UFC. Rousey will sport Monster insignia on her uniform and at ringside, at time her ring presence and movie activities have been reaping bounty of mainstream media coverage and endorsements, including role in Carl's Jr TV ad this past summer. Monster Energy's vp of sports marketing, Gary Covington, cited Rousey's "unsurpassed drive, commitment, star power and worldwide crossover fan base" as reason for deal, whose terms weren't disclosed. Monster had signed as UFC sponsor back in Mar, after Xyience's sale last year to Big Red Ltd, which decided to move brand away from ties to sport that didn't seem like ideal fit with all-natural brand's heavy female base and grocery presence. Ronda's back in ring Sat in Australia vs Holly Holm.

Carbonated soft drink volume saggd 3.4% last 4 wks thru Oct 31 in Nielsen all-channel data reported by Wells Fargo Securities' Bonnie Herzog. That's steeper than 2.8% decline for 12 wks as avg prices increased to +3.3% in last 4 wks. Volume for full-calorie CSDs (-.1.5%) continued to outperform low-calorie brands (-8.2%). Coca-Cola CSD volume slipped 2.7% on avg 3% price increase for 4 wks thru Halloween. That was in line with KO trends previous 12 wks in these stores. PepsiCo CSD volume trend worsened to -6% last 4 wks as avg prices rose to +4.1% (from +3.3% for 12 wks). Dr Pepper Snapple CSD sales "continued to outperform its peers," noted Bonnie. DPS volume slipped just 0.1% despite 2.2% price gain last 4 wks.

Solid but Slower Gain Pace for Energy; MNST Volume Takes Hit from Higher Prices Energy drink volume slowed to 6.6% gain (vs +7.8% prior 12 wks) while avg prices climbed up to +2.8% in all channels over last 4 wks. Monster Energy volume was "very soft," as Bonnie noted, up mere 2.2% vs 5.8% gain previous 12 wks. As MNST price increases kick in, avg price shot up from +1.4% for 12 wks to +3.4% latest 4 wks. Red Bull volume (+5%) and pricing (+4.9%) were virtually unchanged over 4- and 12-wk periods. Rockstar volume gains accelerated over last 4 wks to +28.9% as its avg price increase dipped to modest +0.7%. PepsiCo energy brands (Amp) volume improved to +9.2% (up from 6.2% gain previous 12 wks) as its avg price increase was almost halved to +3.6% last 4 wks.

Sports Drinks Up Mid-Singles Sports drink volume trends remained steady, up 5.6% last 4 wks vs 5.7% gain pace prior 12 wks. Avg price gain of +0.9% was slightly lower than +1.1% avg for 12 wks. Lower avg prices (+0.7% for 4 wks vs +2.5% for 12 wks) helped PEP's Gatorade volume to 6% gain last 4 wk, up from 3.4% gain previous 12 wks. KO's Powerade volume slowed substantially, down from near 12% gain previous 12 wks to up 3.7% last 4 wks as avg pricing improved to -1%.

Private-Label, PEP Outperform in Water Category Bottled water volume rose 7.7% in all-channel data for last 4 wks. That's down 2% from 12-wk gain pace but avg prices improved from slight decline to +0.3% avg last 4 wks. Private-label brands soared near 10% boosted by avg 1.6% price drop last 4 wks. PepsiCo water gains slowed to +8.5% on 0.6% price drop. Nestle volume slowed to +2% last 4 wks with avg price increase of 0.5%. Coca-Cola water volume slowed to 6% gain last 4 wks (down from +7.7% for 12 wks) as it swung from avg -0.4% decline to +0.6%.