Carbonated soft drink volume slowed to -3% last 4 wks thru Oct 10 in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. That's compared to flat performance thru Oct 3 and 2% decline for previous 12 wks. Solid pricing is still prevailing in CSDs, up 4.8% thru Oct 3 and up 4.7% for last 12 wks. Coca-Cola CSD trends virtually unchanged with 3.3% volume dip on 3.4% price gain. PepsiCo volume trend worsened to -6.4% last 4 wks as avg prices edged up to +3.4%. Dr Pepper Snapple volume was up 0.1% with avg 2.1% price increase.

MNST Growth Sags as Price Hikes Kick In; Sports Slide Energy drink volume gain slowed to 6% in all-channel data for 4 wks thru Oct 17 as avg prices increased to +3.2% vs +2% for 12 wks. Monster Energy slowed from 7.4% gain pace previous 12 wks to +2.1% last 4 wks as avg prices revved up. MNST avg price up 3.2% last 4 wks vs +0.8% for 12 wks. Red Bull volume (+5%) and avg price (+4.9%) over last 4 wks virtually unchanged from 12-wk trend. Rockstar still rolling: +25% on avg 3.6% price increase. PEP brands (Amp) up 6.7% despite hefty 5.9% price jump. In sports drinks category, volume slowed to 4.9% gain last 4 wks vs 7.5% gain for 12 wks while pricing held steady at +1.4%. Both Gatorade and Powerade lost momentum. Gatorade rose 3.2% for 4 wks (vs +5.2% for 12 wks) on avg price increase of 2.5%. Even with 3.3% price drop, Powerade volume slowed to +8.7% last 4 wks from 13.8% gain for 12 wks.

Bottled water category continued to perform well in all channel stores with 9.7% volume gain (vs 10.8% for 12 wks) last 4 wks. Avg water prices were off avg 0.8% in last month. PEP waters had been outperforming category last 12 wks but slowed to 7.7% gain last 4 wks as it swung from 1.2% price drop to 0.6% increase. KO water volume up 6% with a small price increase (+0.5%) while Nestle up 5% with avg 1.1% price drop last 4 wks.

Carbonated soft drink volume slowed to -3% last 4 wks thru Oct 10 in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. That's compared to flat performance thru Oct 3 and 2% decline for previous 12 wks. Solid pricing is still prevailing in CSDs, up 4.8% thru Oct 3 and up 4.7% for last 12 wks. Coca-Cola CSD trends virtually unchanged with 3.3% volume dip on 3.4% price gain. PepsiCo volume trend worsened to -6.4% last 4 wks as avg prices edged up to +3.4%. Dr Pepper Snapple volume was up 0.1% with avg 2.1% price increase.

MNST Growth Sags as Price Hikes Kick In; Sports Slide Energy drink volume gain slowed to 6% in all-channel data for 4 wks thru Oct 17 as avg prices increased to +3.2% vs +2% for 12 wks. Monster Energy slowed from 7.4% gain pace previous 12 wks to +2.1% last 4 wks as avg prices revved up. MNST avg price up 3.2% last 4 wks vs +0.8% for 12 wks. Red Bull volume (+5%) and avg price (+4.9%) over last 4 wks virtually unchanged from 12-wk trend. Rockstar still rolling: +25% on avg 3.6% price increase. PEP brands (Amp) up 6.7% despite hefty 5.9% price jump. In sports drinks category, volume slowed to 4.9% gain last 4 wks vs 7.5% gain for 12 wks while pricing held steady at +1.4%. Both Gatorade and Powerade lost momentum. Gatorade rose 3.2% for 4 wks (vs +5.2% for 12 wks) on avg price increase of 2.5%. Even with 3.3% price drop, Powerade volume slowed to +8.7% last 4 wks from 13.8% gain for 12 wks.

Bottled water category continued to perform well in all channel stores with 9.7% volume gain (vs 10.8% for 12 wks) last 4 wks. Avg water prices were off avg 0.8% in last month. PEP waters had been outperforming category last 12 wks but slowed to 7.7% gain last 4 wks as it swung from 1.2% price drop to 0.6% increase. KO water volume up 6% with a small price increase (+0.5%) while Nestle up 5% with avg 1.1% price drop last 4 wks.

Juiceology, fiber-intense juice line, has landed Kroger as national grocery account. Cincinnati-based chain is picking up Juiceology's 4 best-selling flavors for all stores under all its banners: Green Elements, Blueberry Acai, Pomegranate Blue Cranberry and Peach Mango. They're breaking now in chain at SRP of $2.99. Addition brings its retail store tally to about 5K, co claims, including Walmart, Safeway, Sprouts and Albertsons. Juiceology is positioned as offering 8 g of natural fiber per bottle, some 32% of RDA, but having less than 200 calories. Co says it's at work on revamped pack, Non-GMO certification and new flavor called Red Elements that melds red fruits with ginger and turmeric.

High-end bottled water players, with wind at their backs at retail, have been scurrying to add packs that add to their shelf space and fill consumption occasion gaps. Essentia, Fiji and Aquahydrate were among NACS exhibitors with key new sizes on display.

Alkaline play Essentia in Jan will add 700-ml bottle with flip-top sportscap, replacing smaller, flat-capped 20-oz as core single-serve item. It will carry SRP of $1.89-2.09. It should be natural c-store size for brand that's already hit Holiday Station units and indie c-stores in NY and LA and was making its first appearance at NACS. But its barrel fits within cages at Soul Cycle and Flywheel, another fertile channel for brand. The 20-oz, with SRP of $1.49-1.79, will be retained mainly for foodservice uses. Meanwhile, 1-liter, with SRP of $1.99-2.19, continues to serve role as single-serve pack for those into ambitious workout regimens. Also in mix are 12-oz and 1.5-liter packs.

Seattle-based Essentia has also reskinned entire line, with Essentia brand name now positioned vertically on 2 sides of barrel to deal with rotation within glide racks. But logo has been angled at 120 degrees, not 180 degrees, so that appearance of logo on other side of bottle doesn't make water look dark, explained vp brand strategy and development Neil Kimberley.

LA-based Fiji, exhibiting at Dr Pepper Snapple Group booth, had its new 700-ml bottle that hit initial retailers last month, including Target and some regional grocers, with broader rollout slated for 2016. It's first new package size in a decade. Straight-wall bottle carries sleeker profile to fit cupholders in cars and at exercise chains, a response in part to requests from active consumers, said Jeff Clark, vp of retail key accounts and channel development. It carries price of $1.99, slotting between $1.49-1.59 of half-liter bottle and $2.29-2.49 of 1-liter bottle.

For its part, alkaline play AquaHydrate, based in LA, added a 1.5-liter single-serve bottle priced at $2.49-2.89 as well as a handled 1-gal jug priced at $4.99-5.99. Latter is intended to counter inroads made by bulk alkaline water play Alkaline88, booth staffers acknowledged. Both are due in Jan.

Dr Pepper Snapple Group continued to beat broader CSD trends in 3d quarter reported this morning despite declines on some key soda brands, even as its noncarbs grew 4%. That left net sales for period up 3% to $1.63 bil; operating profit rose 6.6% to $337 mil. Adjusting for foreign exchange effects, net sales would have been up 5% on 3% vol increase and favorable price, product and package mix, partially offset by food-service funding issue. DPS cfo Marty Ellen said co needed to make $6-7 mil adjustment to revenues that's tied to volume #s, marketing programs and equipment reimbursement that probably should have been spread out over all 3 qtrs.

Prexy/ceo Larry Young termed performance "another quarter of solid topline and bottom-line results, with both our CSD and non-carbonated beverage portfolios performing well." Headlined analyst Nik Modi of RBC Capital Markets: "Good price/mix and volume trends continue." Shares were up in trading today on heels of solid performance.

For the quarter, bottler case sales rose 2% with CSDs up 2% and noncarbs up 4%. Among CSDs, flagship Dr Pepper brand was flat, but diet version posted smaller decline than other major diet CSDs thanks in part to co's decision to launch targeted campaign behind it rather than relying on umbrella campaign covering all Dr Pepper entries. So-called Core 4 CSD brands were flat overall, as high-single-digit gain in Canada Dry was offset by mid-single-digit declines in 7 Up and Sunkist and low-single-digit decline in A&W. Crush was also flat in qtr. Mexican-sourced Penafiel sparkling water surged 14% thanks to broadening availability and heavier promos. Schweppes grew 11% while Squirt rose 5%. With ginger ale a hot category lately, cfo Ellen noted, DPS wields 2 of strongest brands in Canada Dry and Schweppes. But co hasn't reaped commensurate return on investment in 7 Up and continues to try to figure out what buttons to push.

Among noncarbs, what DPS broadly classes as bottled water grew 16% thanks mainly to the antioxidant infusion Bai-5 (soon renamed Bai) and Fiji Water. Clamato soared 15% primarily thanks to distribution gains. Snapple grew 5%, but Mott's was flat and Hawaiian Punch slipped 1%.

Upcoming marketing initiatives had familiar flavor. Dr Pepper will return to 2d year of partnership with ESPN on college football playoffs, with special packaging and merchandising and new spots featuring Larry Culpepper, "unofficial mastermind" of college football (who was seen sashaying around DPS booth at NACS last week). "We'll dominate college football," Young promised. Related tuition giveaway will add to $7 mil given away since inception of program in 08, with Jimmy Kimmel recruited to produce webisodes chronicling contestants' efforts to win. Similarly, 7 Up is back as sponsor of Latin Grammy Awards.

Conference call this morning brought unusual - unprecedented in our recollection - degree of interest from Wall St analysts in co's so-called allied brands, with barrage of questions on how important they are within mix, what co's ambitions are and how profitable they are compared to co's wholly owned brands. (CLSA's Caroline Levy was drinking a Bai as she asked about that brand, she noted.) In their responses, Young and Ellen readily acknowledged that they're meant as offset to challenges that big cos have in creating new brands - confirming the adage that "M&A is the new R&D" - and stressed the care with which they make these distribution and investment decisions. "Probably the next level of breakthrough innovation may not come from inside the company but from passionate entrepreneurs," Ellen explained. In prospective partners, DPS analyzes not just the product range but co's strategy, mgmt and financial ability to market brand and win national retail authorizations, he said. "And it is making a difference" to fortunes of DPS, which is making "effort to go to where the consumer is going, not resist."

Since DPS usually doesn't take equity stake in these partners, question came up as to what protection it has against those brands subsequently fleeing to Coke or Pepsi. Ellen's response is that KO and PEP usually insist on path to ownership in contrast to DPS, making latter a more welcoming option to entrepreneurs who want to hang in there and go for financial home run down road. Only other option to the 3 soft drink systems, he added, is beer network that's very disjointed for national coverage at major retailers. Tho discussion only named Bai and Fiji specifically, other entries within allied-brands mix include likes of Vita Coco, Neuro, Body Armor, Hydrive and All Sport.

For many New Yorkers it's been a shock to see sleekly branded Organic Avenue stores abruptly shuttered following move to liquidate 10-location chain. Along with Liquiteria and a couple of other influential players, 15-year-old chain did much to popularize routine of picking up fresh-squeezed juices as part of daily regimen for many affluent locals, at one point generating roughly $20 mil in annual revenues, per Crain's NY Biz. But as juicing options proliferated it increasingly struggled, and only 2 or 3 of the stores were profitable, per local reports. A series of new managers brought from cos like Pret a Manger were unable to reverse the skid. So owners have filed for Chapter 7 liquidation . . . This must be a first in NFL: team with an official kombucha. Humm Kombucha will now be served on draft at CenturyLink Field in Pomegranate Lemonade and Coconut Lime flavors, and sampled liberally throughout venue, the new partners announced. Further, all 9 flavors produced by Humm (rebranded from Kombucha Mama a year ago) are available in stadium's newly installed Grab and Go Market, which offers healthier fare like house-made salads, veggie fare and gluten-free items. Initiative also fits with team's broader effort to represent Northwest brands. "Fans will be happy to see another option for a healthy, low-sugar beverage," exulted cofounder Jamie Danek. "And we get to work with one of the most successful, forward-thinking and community-oriented teams in the league. It's a huge win for us" . . . Fresh off having its chefs gin up gourmet-like creations using Fritos and other familiar snack brands at recent NACS c-store show (BBI, Oct 13), PepsiCo is taking another step to raise its visibility as credible culinary player, sending innovation kitchen called NSPIRE on the road to football games and music fests to serve up to consumers complimentary heapings of Sabra Spicy Hummus Turkey Chili, Mountain Dew Zesty Chicken Wings, Doritos Loaded, Sabra Skinny Greek Layered Dip and Top N Go with Tostitos. Mobile kitchens also are outfitted with Pepsi Spire touchscreen fountain dispenser purveying trademark bevs like Pepsi and SoBe Lifewater along with assortment of flavor shots like vanilla and strawberry. The "mobile sensorial showcase" was assembled by industrial designer Karim Rashid as another step by Pepsi marketers to carve out identity on design side, too.

NY Times is continuing with its crusade vs obesity-causing sugary drinks, using initial findings from Mexican soda tax to argue that US lawmakers should "consider comparably stiff taxes," per editorial on Mon. Earlier report by paper on analysis by Univ of NC and Mexican public health authorities had drawn conclusion that 10% price hike resulting from tax had yielded 6% decrease in soda sales in 2014 that accelerated to 12% by Dec, tho paper acknowledges it's possible consumers substituted other sugar-laden products. Still, "many countries could almost certainly improve public health by matching or improving upon Mexico's beverage tax," editorial states.

Note that Times is stoking debate at time that Mexico may dial back tax on some lower-sugar items, move that Coca-Cola coo James Quincey applauded on co's conference call this morning, saying, "Obviously we're in favor of reductions in discriminatory taxes." He argued that, by KO's calculations, the tax so far has knocked out only about 6 calories in Mexican diet. "We know there's an obesity crisis, but it's not the silver bullet everyone is looking for," he said of Mexican experiment. As for potential tweak to Mexico tax, "Clearly taxing diets and lights doesn't seem to be the right way forward," James said.

 With rumbling increasing in recent months that some kombucha players aren't accurately stating their alc content and sugar, it's no surprise that class action bar has spotted chance of possible riches. Pair of consumers have filed suits in Calif Superior Court in Santa Clara alleging, in one pair of cases, that GT's and Health-Ade have labeled alcoholic kombuchas as non-alc, and that same cos greatly understated their sugar content, in other pair of suits. Plaintiffs are asking for damages, including punitive damages, and that mfrs be forced to desist from alleged fraudulent activity. Suits were brought by Pratt & Associates; Cuneo, Gilbert & Laduca LLP, and Neal & Harwell.

Using similar language in both her suits, consumer named Janet Hood claimed kombucha sales by GT's and Health-Ade "are predicated on a fundamental misrepresentation: the products are labeled as soft drinks when in fact they contain significant amounts of alcohol," per Health-Ade suit. "Defendant's mislabeling is not only deceptive and unlawful, but endangers the health and well-being of California's citizenry. Defendant's conduct must be stopped, and it must be stopped now." Hood claims that GT's purportedly non-alc Enlightened Kombuchas contained well over 0.5% allowed for NA items, and in some cases more alcohol than certain Classic Kombuchas that are labeled as alc bevs. That amounted to between 0.92% and 1.78% ABV for various items that were tested after being purchased at retail. As for Health-Ade, testing "revealed each contains between 40-130% more alcohol than is permitted in a non-alcoholic beverage."

Another pair of cases filed in same court by plaintiff named Sarah Samett focus on sugar content, alleging that Health-Ade kombuchas proved to contain 11-13 g of sugars per serving, 4-6X more than stated on label and that GT's Millennium kombuchas contained 11-16 g of sugar, or 2-8X the sugar listed on label. "For example, one popular flavor, Enlightened Synergy Trilogy, purports to have only 2 grams of sugars per serving, and 4 grams in each bottle. In reality, it contains approximately 11.9 grams of sugars per serving, and 23.8 grams per bottle. Other flavors are similarly mislabeled."

Recall that several kombucha players, believed to include Health-Ade and GT's, recently received letters from alc regulator TTB about their compliance, tho details of letters haven't been disclosed (BBI, Sep 18). (Agency says to do so would violate its obligation to protect taxpayer info.) For their part, several kombucha players have argued that testing apparatus employed by rivals and regulators is not reliable and are promoting their own analysis suite.

Body Armor, fresh off major investment from its distribution partner Dr Pepper Snapple Group, has expanded DPS footprint within which it moves its brand. After eschewing so-called flyover states in early days in order to focus on coastal markets, co now has moved brand into DPS bottling operations in heartland markets ranging from Chicago south to Houston, including Indianapolis, St Louis, Colo and Nev. Cofounder Mike Repole confirmed expansion via email from Houston, where he'd just taken in Rockets preseason game vs New Orleans on Mon. "Really big for brand," he said of move into largest city in Tex, where Rockets star James Harden is Body Armor endorser. He said DPS has proved solid and committed distribution ally so far.

Monster Beverage shares rose 5%+ yesterday, largest gain in nearly 8 months, on report from Evercore ISI's Robert Ottenstein that MNST drinks are being tested in McDonald's eateries in Detroit area. McDonald's has since confirmed that Monster Energy drinks are indeed being sold in 20 locations. This test could be "1st step in a billion-dollar opportunity," wrote Robert, as his analysis suggests "significant potential upside" for MNST in quick-serve restaurants, where energy drinks are just 2% of bev sales pool vs 47% of CSD/energy sales in core channel of c-stores. How big? "On the order of $1B-1.5B of incremental revenue and $1.30-$2.00 of incremental EPS in the US alone," calculates Robert. He estimates if energy drinks were able to get 20-30% of QSR CSD+Energy drink retail sales pool by 2024, that could translate to $7 bil of incremental annual sales for category. Note, tho, that distribution partner Coke would have reason not to step too hard on pedal, since those sales cannibalize its own CSDs, particularly in longterm partner McD's, an exclusive Coke partner.

Test that began in July/August included 2 SKUs, 16-oz cans of original Monster "green" along with Zero Ultra, per report. Pricing is "in line" with c-stores, at $2.50 or 2 for $4. Most sales for MNST so far have been as "part of a value meal" with customers paying $1.50 upcharge, Ottenstein noted. "Results characterized as 'good,'" so far, wrote Robert, with strongest demand appearing to be "evenings and late night."