Health-Ade Kombucha, which has temporarily slowed its expansion because it's bumping up against capacity constraints, has finally landed expansion site in Torrance, Calif, building of nearly 60K square feet for which co just signed lease. Cofounder Vanessa Dew said operations chief Ramon Canek (former production chief at GT's) is drawing up plan for dramatic uptick in output without abandoning co's use of 2.5-gal glass fermenters, after tests with range of larger sizes and different materials didn't yield quality brand demands. Tho brand is well on way to national availability now, in 6 Whole Foods regions currently, its kombucha continues to be hand-produced, with each narrow cap hand-screwed onto bottle. Co will seek to use racking systems and other methods to mechanize other aspects of production to improve efficiencies and get costs down even as it retains small-batch fermentation process. Vanessa said co hopes to have new site up and running in 6-8 mos.

At Expo East it debuted trio of Super Teas, melding "natural botanical superfoods" with raw, organic kombucha. New subline is packed in co's trademark amber glass stubby bottles and linepriced with other Health-Ade entries at $4.99, but label garners differentiation on-shelf with paintbrush-smudge motif even as it retains familiar anchor motif of other sku's. Line debuts in Power Greens (with wheatgrass, spirulina and camu-camu), Sweet Thorn (hawthorn berry, mangosteen, pink rose) and Maca-Berry (maca root, aronia berry and black currant). Also new in mix was co's first holiday sku, likely portending other seasonal plays down road. Holiday Cheers "festive probiotic tea" adds hint of ginger and spice

Given production constraints, for now co is continuing to focus on 5 key regions - Southern Calif, Northern Calif, Pac NW, Colo and NY - tho it's augmented that a bit with activity in Southwest and Mid-Atlantic. Co recently brought aboard Ned Desmond as East Coast sales dir, working with DSD house Rainforest to develop NY market. Ned is former colleague at Nantucket Nectars of Tom First, partner at Health-Ade investor First Beverage Group who founded Nectars brand. Once new production site in Torrance is up and running, co will beef up sales and marketing teams.

Carbonated soft drink volume sagged 4.9% last 4 wks thru Sep 5, per Nielsen all-channel data reported by Wells Fargo Securities' Bonnie Herzog. That's steeper than 4.3% decline for category previous 12 wks and -3.9% for 52 wks. Pricing still solid, tho, up 4.1% last 4 wks. Note this data goes thru Sat of Labor Day weekend only. Diet CSDs continued to struggle as volume sank 8.8% last 4 wks, a bit worse than 12 wk decline of 8.4%.

DPS, Private Label Outperform Haven't had opportunity to say that often about DPS in CSD category, but Dr Pepper Snapple volume decline of 2.4% was much better than competitors KO and PEP and, combined with 3.3% price increase, DPS sales edged up 0.8% in last 4 wks. Coca-Cola CSD volume slipped 4.9% (in line with 12-wk decline) while avg prices were up 4% last 4 wks. "Brand Coke (43% of KO CSD sales) had negative $ sales growth this period (-1.8%) for 2d month in a row," noted Bonnie. PepsiCo CSD volume decline steepened to -6.6% last 4 wks in all-channel as avg price edged higher to +4.5%. Meanwhile, private-label brands continued to roll up double-digit sales gain with solid volume (+4.5%) and pricing (+7.2%) over those last 4 wks.

Energy Drinks on a Roll Energy drink volume surged 10.3% in all-channel data last 4 wks, up from 9.4% gain previous 12 wks. Energy prices ticked up 0.8%, in line with 12-wk avg. Monster Energy (+12.6%) and Rockstar (+27.6%) continued to rack up double-digit gains in latest period. MNST avg prices tho were off 1.3% (vs -0.8% for 12 wks) and Rockstar avg price up just 1.5% compared to higher prices for Red Bull and PEP brands like Amp. Red Bull avg prices were up 4.9% last 4 wks with 4.3% volume gain while PEP avg price up 7.7% with 3.7% volume increase. Coca-Cola brands like NOS and Full Throttle (now owned by MNST) were off 11% with steep 9% price cut last 4 wks.

Lower Prices Lift Powerade Sales Sports drinks slowed to +4.4% volume gain last 4 wks from +6.3% for 12 wks, while avg prices were unchanged at +1.7% in all-channel data. PEP (Gatorade) slowed to 1% volume gain (vs +5% for 12 wks) as avg prices went up to +3.6% last 4 wks compared to +2.6% for 12 wks and flat pricing for 52 wks. KO (Powerade) avg prices dropped even further to -4.1% which helped lift it to 15% volume gain last 4 wks.

PEP, Private-Label Leading Water Volume Gains Bottled water volume improved to 9.1% gain last 4 wks with a slight price decline of 0.1%. Among top water suppliers, Nestle had smallest gain at +2.1% but was only one with price increase (+1.2%) last 4 wks. An avg 2.3% price drop lifted PEP water to 13.6% gain while KO water down avg 1.3% with 8% volume gain. Private-label prices down 1.5% (vs -0.8% for 12 wks) with 13% volume increase.

Ariz-based bev industry vet Jim Tonkin is relaunching his Healthy Brand Builders consultancy by enlisting array of nearly 20 outside experts under HBB Alliance, with view of creating "the industry's most powerful consortium to help identify product concepts and engineer them into household names and valuable brands" under slogan, "Incubating and Accelerating Brands." New direction, flagged on revamped HealthyBrandBuilders.com Web site, aims to offer more a la carte structure in which clients only pay for specific services they need rather than carrying broader overhead of co. Among allies are McLean Design's Ian McLean; regulatory expert Justin Prochnow, pr specialist Josh Kohnstamm, sales/marketing specialist and Boulder Chips founder Mark Maggio and operations/supply chain vet Rob Alshuler, formerly of Niagara water . . . PepsiCo and SodaSstream are undertaking modest expansion of their Pepsi-Cola and Sierra Mist HomeMade caps to include online sales via SodaStreamUSA.com in most parts of US and at about 50 Bed, Bath & Beyond stores. Recall that test of items using stevia/sugar sweetener blend had begun in Tampa and Orlando, Fla, last Oct. On offer in pre-dosed caps sold in straight and mixed 4-packs are regular Pepsi and Pepsi Wild Cherry flavors as well as Sierra Mist.

New Whey, which has been aggressively backing new-wave RTD protein line called Nu Aquos, is tilting its efforts toward western region where brand has shown greater lift while inaugurating what seems to be significant cutback in eastern region. Word rippled on street yesterday that co had abruptly cut most or all of Eastern staff, maybe 8 or 10 people, leaving some DSD wholesalers reconsidering commitment to brand, tho prexy Chuck Walkley told BBI that rumor was overblown and co was only planning to "reposition some of our people. There's no change in our strategy with our retailers or distributors."

Out west, Nu Aquos just landed Albertsons as an account, and will enter HEB plan-o-gram next month. Test in Kroger's Fry's banner went well enough that brand now is moving to Kroger's adjacent Smith's banner, and brand also is plying Meijer's in Mich and Fresh Market chain. (He's using hybrid strategy, he said, with Kroger and HEB among direct customers.) Importantly, retailers increasingly are accepting Nu Aquos' argument that shelving protein brands like Nu Aquos in sports-drink set proves incremental to category's sales. "We're expanding," he said. "Things are going pretty well, especially out west, but it's been a slower build in the east" and that's necessitated rethinking of personnel and overhead costs, he allowed. Co funded in part by Topspin Partners has built base on endemic items like New Whey Liquid Protein and BetaNox, both apparently doing well, but has pushed hard to offer Nu Aquos as hybrid sports drink/protein brand under Walkley, a vet of PepsiCo and Tampico, as consumers increasingly focus on protein consumption.

This is consolidation some observers had figured was bound to happen in less-populous state like Vt: state's 2 Bud houses are getting together, as G Housen sells its entire Vt portfolio of beers, wines and NAs to fellow Bud house Farrell Distributing. Deal due to close on Oct 30 will leave Keene, NH-based G Housen focused entirely on NH and western Mass, while Farrell brings in raft of newly acquired brands to hq facility in S Burlington, Vt, that's undertaking 25K-sq-ft expansion due for completion next spring. On NA side, move poses question about where such key G Housen brands as Red Bull, Vita Coco, Bai-5 and Body Armor may land. Farrell marketing dir Ryan Chaffin told BBI yesterday that, as deal had just come together, suppliers are only now receiving notification, making it too early to identify final lineup of brands that will transition from G Housen to Farrell. "It is our goal to bring on that entire world-class portfolio," he said. On alc-bev side, Farrell picks up rights to Bud family as well as national craft brands like Sierra Nevada, Founders, Stone and Allagash and lotsa wines and local crafts.

Among key G Housen brands that Farrell will be hoping to retain is Red Bull, which is similarly undergoing transition in part of Northern Calif after announcement of distributor consolidation there (BBI, Sep 3), and which in past has sometimes used change of ownership to pull out in favor of self-distribution. It's usually made such changes in densely populated major metros, tho last year it surprised observers with move to self-distribution in Albany, NY, area. Also a highly attractive brand is coconut water Vita Coco, which is mainly aligned with Polar Beverage in New England. As Polar subs Vt territory to Baker, that shop would seem to be other possibility for brand. Also in mix are fast-growing Bai-5 antioxidant drinks and Body Armor sports drinks, as well as Purity Organic juices, Aquahydrate, Voss and Fiji waters, and such soda lines as Maine Root, Grown Up Soda, Regatta, Reed's, Moxie and Stewart's.

"This is a good deal between two longtime family businesses that will help both companies improve our scale and achieve efficiencies that offset rising cost pressures in the logistics business," said Farrell Distributing prexy/ceo David Farrell. "It also significantly enhances our ability to drive the business plans for our brands, and reinforces the link each company has to its home state and local communities." Both of them Bud houses, G Housen and Farrell had split Vt territory on that side while going statewide with some of their craft beers and NAs, strategy that's looked upon with disapproval by core supplier Anheuser-Busch because it puts one Bud house in direct rivalry with another Bud house, even if not on Bud and allied brands themselves. G Housen and Farrell also are both longstanding members of Northeast Independent Distributors Assn, meaning the deal will eliminate some overlap on that map in Vt too.

Farrell said most G Housen employees will be offered chance to come over to new owner, under plan which gm Todd Bouton said calls for Housen's operations to be integrated in stages with Farrell's as the expansion is completed next spring. Farrell's Web site lists broad array of NAs including Snapple, Fiji Water, Calypso Lemonade, Steaz teas, Saranac and Jones sodas and such Nestle Waters brands as Acqua Panna and Pellegrino. It also carries 25 Vt craft brands and 900+ wines.  

Since teaming with grower Sun Pacific 5 years ago, Greg Steltenpohl has turned their Califia Farms venture into innovation engine that's shaken up refrigerated dairy-alternative, coffee and citrus segments. But innovation takes money, and partners for first time have brought in outside partner to help defray cost of those scores of ground-breaking new items: Stripes Group, which ponied up $50 mil for minority stake in LA-based venture.

Tho Stripes doesn't bring much direct experience in consumer packaged goods investments to partnership, it has strong track record in adjacent area of digital marketing and other brand-building activities. Based in NY's Meatpacking district, Stripes' other investments have included Blue Apron (home delivery of pre-measured ingredients for home prep of gourmet meals), GrubHub (online food-ordering service, via Stripes' investment in Seamless, which merged with GrubHub), Stella & Chewy's (freeze-dried and frozen raw food for pets) and Refinery29 (online style destination). Stripes will place pair of partners on Califia board, Dan Marriott and Karen Kenworthy. Califia said the new capital will be used to invest production and distribution capabilities, R&D, new hires, and sales and marketing.

"We spent a long time getting to know Greg, and saw his product development expertise play out with each of Califia Farms' exceptional new product introductions," said Stripes managing partner Marriott. "A true product visionary, Greg is assembling an amazing team and has cultivated a culture of rapid innovation focused on delivering premium, healthful products. We look forward to bringing our experiences working with disruptors and inventors to help Greg and his team as he builds upon Califia Farms' industry-leading plant-based food and beverage platform."

Steltenpohl had been known to be in hunt for outside capital as Sun Pacific blanched at mounting investments needed to establish at retail such fledgling plant-based categories as almondmilk, cold-brewed coffee and agua fresca. But it's one of fastest-growing bevcos in natural space, with its core almondmilks nearly tripling in sales over past year, and its stylishly bulbous multiserve packs having become familiar new silhouette in grocery coolers. For his part, Greg said he relished working with investor that "is perfectly aligned with our culture of rapid innovation and sustainability."

Fall calendar of major bev shows opens next week with Natural Products Expo East, hitting Baltimore Convention Center from Thurs thru Sat. Show is expected to draw 22K visitors and will include range of shelf-stable and refrigerated bev brands, from Honest Tea to Daily Greens, along with foods and personal care items. All told, 1,800 exhibitors will line the aisles, 30% of them first-timers, said sponsor New Hope Natural Media. Registration and other details at ExpoEast.com. BBI hopes to bring full coverage.

Looks like Coca-Cola's Powerade sports brand continues to go down and dirty on price. BBI friend in Fla reports spotting 32-oz Powerade packs at local Walmart for just 68 cents per bottle - well below such other deep discounts he'd spotted as Pepsi's Gatorade at Publix at 88 cents for same size. Still, that's not record: TheKrazyKouponLady.com site in late Jun reported on Walmart "rollback" deal offering pack at 58 cents, vs Walgreens price of $1.50 and regular Walmart price of $1.84.

Recent years' additions to NYC museum scene have included institutions devoted to sex and to math (located just a block away from each other, as it happens). Looming on horizon now: Museum of Food & Drink (Mofad), heading in its initial guise to foodie haven Williamsburg, in Brooklyn. Proponents believe they're first to devote showcase to "food and drink writ large," as exec dir Peter Kim told NY Times, rather than to single food or ingredient, as in various venues operated by food cos along lines of World of Coca-Cola. It's starting relatively modestly, with 5K-sq-ft temporary space opening Oct 28 that can accommodate single exhibition, multisensory show called "Flavor: Making It and Faking It." (Mofad had earlier tested waters with pop-up show called "Boom! The Puffing Gun and the Rise of Cereal" at 2013 street fest.) Supporters are in hunt for permanent space in 30K-sq-ft range that can accommodate at least 3 exhibitions plus restaurant, Times reported. No word yet on what bev programming may be in works.

Taking software-like tack of continuous improvement in market, all-natural drink mix called Stur Liquid Water Enhancer has rocketed to prominence on Amazon, migrated to QVC and HSN home shopping networks and now is advancing its presence in broader retail market. Brand packed in pocket-size canister with distinctive angled top now ranks as #1 drink mix on Amazon, founder Neel Premkumar notes, receiving almost universally 4 and 5-star ratings from customers thanks to formulation that overcomes flavor burden of stevia to offer naturally formulated zero-calorie alternative. Flavors range from down-the-middle Fruit Punch and Orange Mango to Black Tea + Lemon and Coconut Water Pineapple, all with simple ingredient list of half dozen items. Brand will be on view at upcoming Natural Products Expo East in Baltimore late next week. Its Web site is SturDrinks.com.

By now brand has gone thru at least 15 iterations, claims Premkumar, former Wyeth and Nestle marketing exec who operates with small team out of WeWork shared space in lower Manhattan. His idea is to continuously fine-tune item just like software developers do with their in-market betas, buttressed by wealth of data that comes from having over 100K consumers purchasing brand on Amazon.

Now intensified retail push is under way. By now Stur has entered Kroger, Publix and HEB, a couple of Whole Foods divs and about 20% of Target stores, Neel said. It's quickly become #5 brand in cluttered set, he said. Tho Stur boasts all-natural formulation, it's about line-priced with conventional drink mixes, at $3.99 per 1.28-oz dispenser, thanks to greater scale brand has recently attained. (To support growth, it recently installed own production line at Midwestern copacker.) So shopper is not asked to pay premium to avoid artificial sweeteners and other ingredients.

Big kahuna in segment is MiO, of course, at $150 mil or so in sales. That might seem like insuperable lead, but Premkumar noted that co spent estimated $120 mil over first 2.5 years to attain that presence, and tilts heavily toward males, decision he figures was driven by parent Kraft's desire to protect franchise of Crystal Light and other female-skewing mixes. Further, MiO may lose momentum after splitup of Kraft, which saw MiO stay in mother ship while Tang went to Mondelez spinoff.

Tho Neel is reticent to disclose too much about his investors, he notes that former Nestle coo was first, former Kraft ceo led last round and $7 bil overseas strategic is also in picture. With positive cash flow, co has no pressing need to raise additional capital now. Among its targeted investments, it's eyeing functional variations, perhaps in areas like energy and weight mgmt, after having already tested an immunity item online. Co also is eyeing entries in completely different categories that it's not ready to identify yet.

Premkumar, who said he was driven to idea after seeking out zero-calorie healthy alternative for his wife and newborn twins, acknowledges there's no lack of obstacles to Stur's continued growth. Since Whole Foods and other natural retailers never carried brands like Kool-Aid, there is no existing drink mix category to build upon in that channel. Even at broader retailers, it's a category that's not so exciting to buyers, many of whom juggle other classes of merch. And in some key metros including its home base, NY, brand's presence remains sparse.