Equity shop TSG Consumer Partners, which has been known to be exploring potential sale of its substantial stake in Stumptown Coffee Roasters, may be close to deal to sell some or all of its holding to Peet's Coffee, now owned by European co Benckiser. At least, that's word on street this week, tho we haven't heard back yet on query to Stumptown brass placed a short while ago. Wall St Jnl had reported in early May that TSG was exploring sale of Stumptown stake estimated to be in 90% range. Recall that its initial investment had aroused furor among coffee cognoscenti in its Portland, Ore, base, tho new ceo Joth Ricci has since assuaged fears that co founded by Duane Sorenson was abandoning its principles, even as he's moved aggressively to expand network of cafes, build foodservice biz and take visible role in establishing cold-brewed coffee segment in formats from kegs to nitro cans. Peet's, an iconic roaster in Bay Area with slavish beans-by-mail devotees, was acquired in 2012 by Benckiser, with Chicago merchant banker BDT Capital Partners holding minority stake.

PepsiCo continued its run of strong quarterly earnings performances, scoring 7.4% revenue growth and 14% pop in currency-adjusted earnings per share in 3d qtr. Solid underlying performance was obscured by some special factors, with net revenue declining 5% to $16.33 bil on account of currency headwinds and operating profit plunging 50% to $1.42 bil because of big impairment charge taken on Venezuela biz. In core N Amer Bevs biz, net revenues rose 4% to $5.36 bil on 3% volume lift, and operating profit surged 14% to $860 mil.

"Solid Start to 3Q Earnings," headlined RBC's Nik Modi, figuring report presages similar strength from yet-to-report cos like Coca-Cola, DPS and Cott. Nik was pleasantly surprised to see North Amer volume rise 3% vs flat performance he'd anticipated, even as price/mix came thru at anticipated +2%. And here's take from Wells Fargo's Bonnie Herzog: "PEP's revenue management strategies and executional focus drove strong underlying core results in Q3 despite an overall challenging macro-environment." In reversal of past trend, North American bevs, up 3% in volume, outgrew snack sibling Frito-Lay, up a mere 0.5%. In trading today, PEP shares were up a couple of points above yesterday's $95.81 close.

As has been co's practice in recent qtrs, earnings release and prepared mgmt remarks shed virtually no light on performance of individual brands, segments or retail channels, nor specific countries overseas. Pressed by analysts on q&a part of conference call this morning, mgmt cited France, Germany and Turkey as strong performers on bev side, while Russia was challenge. As for relative performance of CSDs and noncarbs in core N Amer market, cfo Hugh Johnston said 3% volume gain melded 1.9% drop in CSDs and nearly 10% rise in noncarbs. "Clearly the big story here is noncarbs," Nooyi said, "what's driving growth in the whole industry." Tho CSDs may have lost share, their margins are doing "exceedingly well" and segment is performing well in small-format stores like c-stores. "Focusing on CSDs is a thing of the past and I strongly suggest everyone look at total LRBs," she exhorted listeners, referring to broad "liquid refreshment beverage" category.

Naturally Sweetened, Zero-Cal CSDs Are Years Away A few years ago, ceo Nooyi was prone to imply that breakthrough in naturally sweetened, zero-calorie CSDs might be around corner, but more recently she's worked to dampen expectations on timing. On today's call, she appeared to extend time frame considerably out to horizon. "I don't see a zero-calorie naturally sweetened CSD on the horizon in the next few years," she said during q&a, tho she promised co has strong pipeline of naturally sweetened, lower-calorie bevs. Some of those should appear in coming year. Asked how well restaged Diet Pepsi is doing after dropping aspartame as sweetener, Indra said it's far too soon to tell.

No Budging on Bottler Strategy On conference call, Nooyi offered implicit rebuttal to activists who've called for breakup of bev and food sides of co, noting that Pepsi continued to be biggest contributor among all food cos to retailers' sales gains, $1.1 bil worth for year-to-date. And at time that Coca-Cola has reversed course on production strategy by inaugurating move of production to outside bottlers, Nooyi was steadfast in saying PEP will retain control of both production and distribution. "With life cycles shorter and the trade more complex, having control of the manufacturing and distribution system becomes critical," she argued. She said PEP has rationalized plants, raised capacity utilization and begun to consolidate large-format and small-format routes, cutting 15% of routes by having both classes of retail serviced by same trucks. She also continued to resist fad for zero-based budgeting, saying Pepsi is using more flexible version it calls Smart Spending that retains greater flexibility to fund initiatives that can grow top line. Asked about implications of move by Pepsi ally Anheuser-Busch InBev to acquire SABMiller, Indra said, "We don't speculate on these matters."  

It's hard to recall when, if ever, this has happened before: biggest US bev show and biggest US beer conference/show are both happening in same town, same time. That's next week in Las Vegas, when National Assn of Convenience Stores' annual expo will be running at city's convention center even as Natl Beer Wholesalers Assn conference and accompanying trade show hold court at Caesar's Palace. Whew!

Tho not strictly a bev show, NACS has become de facto platform for mainstream bev brands, most notably energy drinks, with scores of NA bevcos exhibiting to reach buyers for crucial impulse channel. Show floor will be open next Mon, Tues and Wed. Info at NACSonline.com. Among show-related events, fast-growing Celsius calorie-burning bev brand will be presenting sponsor of NACS' Tues evening party, which will be headlined by Florida rapper and Celsius endorser Flo Rida at Hard Rock Las Vegas.

NBWA's 78th Annual Convention & Trade Show will run Sun thru Wed, with trade show floor open on Mon and Tues afternoons. Tho dominated by alc bevs, show will include such NA brands as Cock N Bull, Coco Libre, Reed's, Fentimans, Ralph & Charlie's, VBlast and Double Cola. Several are pitching their ginger beers to beer and spirits wholesalers looking to ride Moscow Mule cocktail craze. Info at NBWA.org/events.

It's hard to recall when, if ever, this has happened before: biggest US bev show and biggest US beer conference/show are both happening in same town, same time. That's next week in Las Vegas, when National Assn of Convenience Stores' annual expo will be running at city's convention center even as Natl Beer Wholesalers Assn conference and accompanying trade show hold court at Caesar's Palace. Whew!

Tho not strictly a bev show, NACS has become de facto platform for mainstream bev brands, most notably energy drinks, with scores of NA bevcos exhibiting to reach buyers for crucial impulse channel. Show floor will be open next Mon, Tues and Wed. Info at NACSonline.com. Among show-related events, fast-growing Celsius calorie-burning bev brand will be presenting sponsor of NACS' Tues evening party, which will be headlined by Florida rapper and Celsius endorser Flo Rida at Hard Rock Las Vegas.

NBWA's 78th Annual Convention & Trade Show will run Sun thru Wed, with trade show floor open on Mon and Tues afternoons. Tho dominated by alc bevs, show will include such NA brands as Cock N Bull, Coco Libre, Reed's, Fentimans, Ralph & Charlie's, VBlast and Double Cola. Several are pitching their ginger beers to beer and spirits wholesalers looking to ride Moscow Mule cocktail craze. Info at NBWA.org/events.

Most marketers who run afoul of state or federal liquor authorities treat them with respect, if not outright reverence. Not Austin's Cuvee Coffee, after Texas Alcoholic Beverage Commission seized canning equipment the roaster was using to offer not just its nitro-infused cold-brew coffee but also local craft beers via so-called "crowlers" - new format that enables bars to package their draft beer in recyclable cans rather than reusable glass or metal growlers. Instead, founder/owner Mike Mckim posted video on Facebook using repurposed footage from Steve Martin's The Jerk to depict snarling, rifle-wielding TABC officer blasting gas-store display of Cuvee Coffee Beer crowlers, along with store's plate-glass window. "Dead center! Say your prayers, half-breed! . . . Die, milk-face!" hollers officer, sporting crudely superimposed TABC badge, as he lets go. "He hates these cans!" Martin's smiling service station attendant suddenly realizes. "Stay away from the cans!" On Facebook page Cuvee is quick to assure viewers, "No #nitrocoffee was hurt during the filming of this event." According to local report on Fox 7, TABC claims Cuvee was given repeated warnings not to use the canning equipment for beer without a permit, but Mckim insists he was given only single warning. Video can be viewed here.

NY Times ran another article aimed at soft drink industry this weekend. Latest theme: while soft drink industry has been very successful defeating soda tax initiatives (except in "superliberal" Berkeley) these hard-fought public battles have taken toll and the "bigger picture is that soda companies are losing the war" as consumption declines accelerate. Lengthy feature focuses on changes in consumption patterns in Philadelphia, where industry prevailed in defeating tax push, and nationally. Article credits Mayor Nutter and health advocates, noting that "in the course of the fight, they have reminded people that soda is not a very healthy product," prompting accelerated consumption decline. Overall, soda "is now experiencing a serious and sustained decline," down 25% in last 20 yrs. "The drop in soda consumption represents the single largest change in the American diet in the last decade and is responsible for a substantial reduction in the number of daily calories consumed by the average American child," wrote Times. In Philadelphia, "the change is happening faster," with daily consumption down 24% among teens from 2007 to 2013. "Those reductions are not accidents. The soda tax didn't pass. But the debate about it, along with a series of related city policies, helped discourage people from drinking soda," noted paper. Article points out that "bottlers are feeling the changes," too. "We're losing, I would say, 1.5 to 2% of our business every year," lamented Harold Honickman, chmn of mega-Pepsi houses operating in Mid-Atlantic markets like Philadelphia.

E-hydrate is stepping on gas to support suite of naturally formulated, female-targeted protein and hydration drink mixes that went chainwide at Target this year, with twin national TV campaigns airing on networks like E! Entertainment, Cooking Channel and Cartoon Network.

Brand was launched by group of partners that includes Media Eagles consultancy founder Dan Adler and has been methodically building out its org, recruiting digital marketing vet Peter Evans as cmo and more recently longtime Xingtea exec Jim Kayser to run sales (BBI, Aug 12). It also lately enlisted actress Sofia Vergara as equity partner and endorser, viewed as good way to reach core demo of active females age 18-49. Key product lines include Protein On-the-Go, which contains 25 g of whey protein in flexible pouch that expands into bottle shape with addition of water, at price of $3.99 pr single, $11.49 per 3-pack. Also in mix are pair of adult- and kid-targeted drink mixes dubbed E-hydrate Hydration+Energy and E-hydrate Kids Hydration + Immunity, priced at $9.99 per 10-unit box.

Tho brands did well to go straight to chainwide availability at Target after soft launch a few months earlier, they're shelved in cluttered, lower-velocity supplements area among Kind Bars and EAS products, making it imperative to do more to drive consumer awareness, Evans told BBI. Hence, the multi-million-dollar TV ad blitz.

Protein entry is aiming for broader appeal than brands like Muscle Milk, and is positioned not as meal replacement but as natural supplement, with ads trying to balance approachable playfulness with authenticity, Evans said. Thus, ad for Protein On-the-Go dubbed "What Sport Do We Play?" shows suburban mom mustering game-day sports platitudes to describe her family's hectic routines: "Some days we play sick. Some days we play hurt. But we keep going." They get a boost from Protein On-the-Go, "the only on-the-go protein that's low in sugar and ready when you are."

For hydration line, co focuses on Kids E-Hydrate Hydration + Immunity brand with ad dubbed "Oops!" that depicts mischievous 6-year-old girl willfully dumping her Fruit Punch and Strawberry Lemonade drinks on the floor - no problem because "KIDS E-hydrate doesn't have any colors, so Mom doesn't get mad if I have an 'accident,'" she smirks.

The 2 ads have been airing on likes of ABC Family, Bravo, Cooking Channel, Discovery Family, E!, Food Network, HGTV and Cartoon Network, channels that heavily but by no means exclusively reach females, Evans noted. Also in mix are digital spots on YouTube and social media ads. Ads were created in-house by exec creative dir Vaughn Juares and filmed at Silver Dream Factory by Fortaleza Filmworks. Co did media buy itself, too.

Red Bull distribution network has lost one of its giants with passing last Wed of Jerry Ponsiglione, 74, who was among US businessmen to take an early flier on not-very-well-known European phenomenon in this country. Brooklyn-born exec grew his co, The Beverage Works, based in NJ, into its largest wholesaler in world, managing brand in one of its strongest markets, NY/NJ. He's survived by his wife of 50 years, Diane, and sons Mark and James, per notice on ObitsForLife.com. Jerry, who was graduate of Gettysburg College and lived in Brick, NJ, passed away at NY Presbyterian Hospital in NYC; no cause was given. Son Mark had long operated Beverage Works at Jerry's side, and managed to maintain brand's growth even in face of reinvigorated Monster Energy attack in NY with transition to Big Geyser as distributor.

Red Bull North America, usually silent on all matters regarding its distributors, issued effusive statement upon Ponsiglione's passing. "In April of 2000, Jerry partnered with a largely unknown energy drink brand from Austria to establish a Red Bull distributorship that would service the greater NYC and NJ markets," statement reads. "Starting with a small team, many of whom are still there today, Jerry led The Beverage Works to become what it is today: the largest single Red Bull distributor in the world. Jerry's tireless efforts and passion to support the people and goals of his organization and the growth of the Red Bull brand will not be forgotten. His legacy will live on through the leadership of his son TBW President Mark Ponsiglione and TBW executive vice president, Chris Ustick. Our thoughts are with both his immediate family and his Beverage Works family."

Entrepreneurs behind recently profiled all-natural water enhancer called Stur (BBI, Sep 11), on view at recent Natural Products Expo East, have readied new brand that's intended to go even more directly into mainstream via debut at upcoming NACS c-store show: cold-brewed coffee shot called Forto Strong Coffee that offers rich-flavored, upscale alternative to 5-Hour Energy. New entry set for Nov debut features organic, Fair Trade coffee that's been cold-brewed for 20 hrs, and is packaged in 2-oz shot configured just like a miniature version of plastic-capped to-go coffee cup. It breaks in Espresso and French Vanilla (using vegan vanilla flavor), both sweetened with cane sugar and clocking in at 16 calories per shot. They both contain 175 mg of caffeine - "natural energy," as front panel touts - but no milk ("true Italian style"). By way of comparison, 2-oz shot of 5-Hour energy offers 200 mg of caffeine and 16-oz serving of Starbucks' Pike Place Roast is listed at 330 mg. SRP is $2.99. As with Stur, founder Neel Premkumar, a former Nestle and Wyeth exec, plays on his identity as father of young twins who wanted better bev alternative for entire family (Stur) and source of healthy energy for parents (Forto). Web site is already activated at FortoStrongCoffee.com.  

It looks as tho Coca-Cola is about to do a major pivot in its efforts to find a response to recent years' explosive arrival of Sparkling Ice: it will ditch its floundering Fruitwater in order to launch an alternative under the Minute Maid brand. Minute Maid Sparkling, due for launch next Mar, will try to take higher road than Sparkling Ice, doubling the juice content to 6% vs Ice's 3% and using cane sugar as sweetener for "full-flavored" taste. That means that in contrast to Ice's sucralose-based 0 calories Minute Maid Sparkling will clock in at 40 calories per half-liter bottle. New line will break in Mixed Berry, Orange, Lemonade and Fruit Punch flavors. It possibly will be on view and ready for sampling at upcoming NACS c-store show opening on Mon. No word on pricing yet.

Fruitwater has been an object of both admiration and skepticism since its launch 2 years ago as a sibling of Vitaminwater and Smartwater (BBI, Feb 8 2013). Tho it debuted in an elegant, curvy proprietary bottle backed by ads featuring Christina Applegate, cold-filled entry also took risky step of breaking with Vitaminwater's all-natural premise in quest of zero calories and good taste. When that initiative faltered, brand was restaged without any hoopla to go into tall bottle with similar profile to Ice. But that didn't work out any better, and line has been getting steadily discontinued by major retailers. Clearly KO is hoping now that Minute Maid's juice identity will offer credibility and aura of healthfulness to new entry.