Count Brooklyn-based Bruce Cost Ginger Ale among brands that's tilting more of its innovation efforts toward mixer side to better surf Moscow Mule cocktail tide. Co has created more intensified Bruce Cost Ginger Beer in compact 8.4-oz can that bartenders prefer to minimize waste, retaining ingredient bill of core line but putting ginger thru 2d pressing to increase both dryness and spiciness over core sku that already packs uncommonly intense flavor. It follows in footsteps of rivals like Reed's Inc, with its own Stronger ginger beer that's been heavily promoted with Pernod Ricard's Absolut and other brands and is entering spirits distribution houses, and ginger beer line created by vodka purveyor Stoli. As with Reed's crew, Cost intends to heavily promote item, which is heading into Beverages & More chain and other retailers and drawing interest from beer and booze houses.

Speaking today from NY hospital where, at 70, he just became a dad again (wife Kavi Reddy, a corporate attorney, also works in biz), restaurateur and Asian food expert Cost said he's coming off productive summer for brand. It entered new retailers like NY-area Trader Joe's (via 12-oz can that reduces conflicts with 12-oz glass longnecks wielded by core retailer Whole Foods) and has been riding growth of foodservice accounts like Coffee Bean & Tea Leaf and Shophouse, fledgling Asian-themed Chipotle banner that may add as many as 50 stores in coming year. Experiment in 30 high-end Safeway stores has been expanded to 200, even as Safeway's split from broadliner UNFI ultimately benefited BCGA by fostering intro by grocer to KeHe, which is also servicing New Seasons chain in Ore and other western accounts. That biz is now being run by former Harmless Harvest sales exec Becca Bernard, recently promoted from Northeast regl mgr to natl accounts. BCGA is expanded copacking network with addition of Sonoma Cider in Healdsburg, Calif. And it's building overseas presence in markets like Japan, Denmark and Middle East, with plans to exhibit at upcoming Anuga bev show in Cologne next month. With ginger processing plant in hot Bushwick nabe, brand's Brooklyn identity has by no means been hindrance: it's currently among brands participating in extravagant Brooklyn show at Le Marche dept store in Paris, alongside Mast Bros chocolate and Lynn & Lawrence woolen beanies.

 "C-store beverage sales growth accelerated, up 6% over Labor Day," wrote Wells Fargo Securities' Bonnie Herzog, based on survey of buyers representing "tens of thousands" c-stores in US. That's stronger than 4% gain for bevs over Labor Day 2014. Beverage sales momentum grew with each holiday this summer season based on survey: +4.9% over Memorial Day, +5.7% July 4th and now up +6.2% Labor Day. Gains last week were driven by lower gas prices, "lower promos vs. last year, which is impressive given the strong sales results," and "strong performance" from energy category, particularly Red Bull, wrote Bonnie. While there were fewer promos in general, "cola and energy drinks" were seen as most heavily promoted categories, and hot pricing by Coke and Pepsi in mass and grocery channels was having negative effect on c-store biz, one buyer noted. Coca-Cola and PepsiCo "have generally outperformed thus far in Q3" with sales gains of around 5% vs 3% gain for DPS. In energy category, "Red Bull remains the leader based on its innovation and has generally outperformed with +8% sales growth vs +7% for MNST," noted Bonnie.

MNST Transition Issues Improving; Consumers OK with Price Increase While c-store retailers reported some continuing disruption issues as Monster switches to KO system, particularly on core green-can sku, "it appears issues are being addressed and broadly improving," said Bonnie. She noted that "several retailers believe that KO's partnership with MNST will benefit KO more than MNST at least in near term." Retailers noted KO benefits by "gaining distribution of Monster to improve domestic volume" and is "directly benefiting from Monster price increases," while also "leveraging Monster distribution in negotiations with retailers" to gain space in other categories in cold vault where it doesn't have strong brands to compete. Meanwhile, as Monster price increases go into effect for majority of retailers, Bonnie reported, retailers "are not fully passing along" that 6% bump, as retailer prices are up a lesser 4.3%. MNST price hike has "generally been well-received by consumers with limited loss of volume or share," she noted. Coupla buyers, in their comments, pointed to consumers moving to larger energy drinks packs - say, from 8.4-oz Red Bull to 12-oz.

Here's one particularly nuanced comment from buyer quoted by Herzog: "It will hurt Monster and help Coke. Being on AB trucks, it was a top priority for them. On Coke trucks, it's just another package in their lineup. Higher priority, but not as high as it was to AB team. We struggle with getting product to stores and the level of service. AB had 2X week deliveries at most of our stores, but Coke is only 1X week. Really pushing hard for Coke to increase delivery frequency for top stores because of increase loads, but not has been very receptive. Also concerned moving forward on how Coke will 'leverage' Monster to increase space in other categories in the cold vault that they do not have strong brands, like protein, coffee, etc."

Mixed Vibe on Mtn Dew Kickstart Recall Pepsi has been touting Mountain Dew Kickstart, its energy-like CSD, as prime example of co's revved up innovation engine. What's take on brand in channel that's stronghold of energy? Comments to Bonnie from unidentified c-store buyers were all over the place, from "doing extremely well" to "potentially delisting brand or reducing sku's." Variance of comments was true whether buyers said they shelve brand with CSDs or with energy drinks. Quite a few alluded to heavy promo activity: brand's "done well as long as it is price-promoted" from buyer who stocks it with CSDs, and "price point frequently hits $1, which is a significant trade down from Monster and Red Bull" from buyer who puts it with energy sku's. In essence, even in chains where it's done well buyers view it as not performing quite well enough to make a dent in reversing CSD erosion, while it also pales in price and velocity next to strongest energy drinks. Mixed bag also on Kickstart's stablemate in Pepsi system in much of country, Rockstar. Several said it's struggling and sometimes vying more on price, but one's "been impressed by RockStar's 'comeback' through new innovation."

With consumers seeming to gravitate more frequently to unsweetened products, is there room in market for unsweetened, fizzy organic tea packed in glass bottles? That's premise being explored by NY-based brand called Sound Sparkling Tea that promises "freshly brewed tea, crisp sparkling water, none of the compromise." It's out in Yerba Mate (Citrus & Hibiscus), White Tea (Peach & Ginger) and Chamomile (Vanilla & Elderflower) flavors at $2.49 per 12-oz bottle. Recall that idea of sparkling RTD tea has long history, including Steaz, Cricket sparkling green tea cola and Motto sparkling matcha green tea, tho none has ignited to date.

Idea was brainchild of Tommy Kelly, who liked to tinker with sparkling tea and soda while working as mechanical engineer at nuclear reactor operated by Entergy at Indian Point, upriver from NYC. Colleagues went in more for a mid-day soda, for caffeine lift it offered. So Kelly wondered, Why not combine the 2? Result was item that launched under brand name SodTerra - combining "soda" and Latin word for "earth" - in Jul 14, as unsweetened, wholly organic bev. By then Kelly had enlisted fellow engineer at plant, Salim Najjar, to get co off ground. (The 2 kept their day jobs until this past Jan.) Brand was spotted by Whole Foods' local "forager," Elly Truesdell, and it turned reasonably well even without any consistent marketing support.

But duo realized the brand could do a little more work for them, so they worked with Boulder, Colo-based agency Interact to rebrand line as Sound Tea in Apr and recently tweaked package and positioning further. New branding is intended to flag bev's unique and innovative qualities as well as its high-quality formulation from simple and pure ingredients. In other words, "sound" works as adjective, much as "honest" does for another tea brand, but its connotations as a noun help soften up image, Kelly believes. To emphasize that meaning, they added image of sound waves to label. In latest tweak, they've dropped metallicized label - snazzy look undermined by poor on-shelf legibility - and dialed back sound wave pattern to just half of label, in process offering greater emphasis to bubble imagery on label to flag light carbonation. They've also dropped functional descriptors "Calm," "Alive" and "Refresh," and reduced SRP from $2.99 to $2.49 after test at Whole Foods yielded encouraging surge in velocity, Tommy said. Line is bottled at Ginseng Up plant in Mass, using ginseng brand's twist-cap bottle that allows for resealability.

With concept proving out, duo is ready to expand beyond NY metro, where it's currently distributed by McMahon Farms, to New England, where discussions with prospective distributors are under way. Brand info is available at SoundTea.com, tho new look hasn't been posted quite yet.

Organic Certification Dilemma for Unsweetened Item As co committed to offering only unsweetened bevs, Sound faces unusual dilemma: absence of sugar makes attaining USDA organic certification more difficult, even tho it uses uncommon amount of loose tea - 4 g on avg, about double what's contained in standard teabag. Thus, while its Yerba Mate sku attains full 95% threshold of organic ingredients required for certification, its White Tea attains just 93.5%, forcing line down to lesser 70% tier. Adding alcohol might also help attain compliance, but brand's founders are unwilling so far to pursue that course either. "It's a moral thing - we don't want to add alcohol just to appease the masses" with USDA Organic button on bottle, said cofounder Tommy Kelly. Another solution the 2 partners might be willing to consider: using organic lemon juice concentrate.  

Yogurt maker Blue Hill, which makes "savory" yogurts using ingredients like tomato, parsnip and butternut squash, is offering drinkable versions in 8-oz cups, FoodNavigator.com reported. Idea driven by users' move to make their own smoothies from the yogurt, will hit market in Jan at price below $5, exec told newsletter. Core line is in Whole Foods, Fresh Market and Wegmans . . . Another supermeal has joined fray of techie-beloved Frankendrinks like Soylent: Abronite Drinkable Supermeals. Finnish-produced item using 18 organic ingredients from oats to brown-rice protein and has relied partly on crowdfunding to generate growth capital . . . Boston-based Mocktail Beverages Inc said it's gotten its Mocktail Non-Alcoholic Cocktails line into Whole Foods' North Atlantic div including Mass, Conn, NH, Maine and RI, via UNFI.

John Bello, who's long enjoyed shaking things up in bev biz at brands like SoBe, Izze and Adina, is taking his entrepreneurial itch to alc-bev sector for first time, joining team of investors that bought minority stake in easy-drinking bag-in-box sangria called Beso del Sol ("kiss of the sun"). Line was developed by former Disney bev dir Stuart McGuire and has enjoyed extensive success sold within co's theme parks as what John deems a "really light, tasty, refreshing and low-calorie" offering. "Kool-Aid wine," he couldn't resist joking. But it's all-natural, too. Current team includes as ceo the former Skinnygirl and Skyy Vodka broker Bradd Levitan. Speaking Tues, Bello said he'll play active, but by no means full-time, role as chmn. He wouldn't comment on financial specifics, but group is believed to have contributed about $4 mil for 25% stake . . . Joe Heron, who earlier sold Airforce NutriSoda to PepsiAmericas and then anticipated boom in hard ciders with Crispin, which he sold to MillerCoors, is at it again. He's sticking with apples, but this time moving to spirits side with aged apple brandy due this fall from his Louisville, Ky-based Copper & Kings American Brandy Co. "It's a unique New World-style American apple brandy," claims former pharma exec.

John Bello, who's long enjoyed shaking things up in bev biz at brands like SoBe, Izze and Adina, is taking his entrepreneurial itch to alc-bev sector for first time, joining team of investors that bought minority stake in easy-drinking bag-in-box sangria called Beso del Sol ("kiss of the sun"). Line was developed by former Disney bev dir Stuart McGuire and has enjoyed extensive success sold within co's theme parks as what John deems a "really light, tasty, refreshing and low-calorie" offering. "Kool-Aid wine," he couldn't resist joking. But it's all-natural, too. Current team includes as ceo the former Skinnygirl and Skyy Vodka broker Bradd Levitan. Speaking Tues, Bello said he'll play active, but by no means full-time, role as chmn. He wouldn't comment on financial specifics, but group is believed to have contributed about $4 mil for 25% stake . . . Joe Heron, who earlier sold Airforce NutriSoda to PepsiAmericas and then anticipated boom in hard ciders with Crispin, which he sold to MillerCoors, is at it again. He's sticking with apples, but this time moving to spirits side with aged apple brandy due this fall from his Louisville, Ky-based Copper & Kings American Brandy Co. "It's a unique New World-style American apple brandy," claims former pharma exec.

FRS, which went thru amounts of capital that most bev entrepreneurs can only dream of, is being operated on an emphatically different footing now that investor Tom Lines has reclaimed control of the quercetin-based brand and its related IP. At least, that seems clear from a letter that co sent out last week to its array of "VIP" online consumers, who were advised that starting Oct 5 they'll get no more than a 10% discount on auto-ship orders, no discounts at all on one-time orders and free shipping only on orders of $100 or more. "Simply put, the cost of making, selling, and shipping FRS products so far outweighs our revenues that we are experiencing losses on the majority of our autoship orders. Accordingly, we find ourselves in a situation where we must make significant changes in order to continue selling the product," letter explains. By some accounts, numerous athletes, fitness trainers and other endorsers were routinely getting discounts of 50% or more on assumption the investment helped seed interest in brand. Lines, who's keeping his cards close to vest for now, confirmed the letter and noted that it hasn't been uncommon, in other turnarounds in which he's been involved, to reverse red ink in as little as 6 to 8 months, his intention at FRS. Tho he won't comment quite yet on his new product plans, including to what extent FRS brand name will be retained, letter does offer hint at several directions he's planning to take, promising "new and improved concentrates with twice the quercetin of our current concentrates," a "naturally sweetened, lower-calorie RTD product line" and "several other new, efficient FRS-delivery options." Lines, who shuttles between home in Switzerland and office/lab in Boston area, was among investors who sank more than $150 mil, by some estimates, into FRS under prior mgmt teams. He owns brand's quercetin supplier, Quercegen LLC, and remains convinced of ingredient's untapped potential.

Vita Coco continued to revamp its leadership team, signing Pepsi/Tropicana vet Armando Amselem to newly created post of global cfo to support co's increasing international ambitions, and elevating relatively new hire Prinz Penakatt to vp marketing & sales in burgeoning South Asia and Pacific region. He now reports to Coke vet running region, Michael Shepherd, who came aboard in Apr. Recall that, since coming aboard in Jan, Coke vet Prinz had played instrumental role in developing brand's current "Stupidly simple" campaign, which aims to build awareness of coconut water category while stressing its untinkered-with qualities. On his team is another new hire, Patrick Wang, formerly of Swedish smoothie brand MySmoothie and luxe menswear firm Cerruti 1881. Patrick is serving as North Asia marketing dir for China, Japan and South Korea. These moves come as Vita Coco has been rapidly expanding its presence in China, base for key investor and Red Bull distributor who's aiding foray into what could prove major market for brand. Also new in exec mix is a former European-based Red Bull and Monster Energy exec, Markus Krebs, who's taking on role of regional director for Europe/Middle East/Africa (EMEA). He'll be based in Spain, where Vita Coco launched early this year. As noted, other recent hires have included Heineken marketing vet Charles van Es running domestic marketing, reporting directly to cofounder/ceo Mike Kirban.  

Having attained wide retail footprint now, High Brew is ready to rev up marketing engine for 2016 to insure the canned cold-brewed coffee line turns at the shelf. After attaining national availability in 3 key mainstream chains - Target, Kroger and Safeway - Austin-based co has brought aboard Red Bull, Glaceau and Kind Bar vet Mari Johnson as vp marketing. Mari, a former Kind Bar colleague of High Brew sales/marketing chief Ron Bryant, who made intro, officially starts Oct 1, tho with co deep in planning mode for 2016 she's tiptoed into role already. She'll remain based in Chicago, where brand musters 1 of its 3 field marketing teams (others are in Tex and Southern Calif). "We are planning now for the most effective ways to increase VPOs with our retail partners," cofounder David Smith wrote in co memo announcing hire. "Mari's leadership and expertise coupled with a significantly increased 2016 marketing budget is going to fuel tremendous growth for all of us!"

In conversation earlier today, Mari said her recruitment stands as nod to "how important consumer trial will be," with co set to expand field marketing teams to not-yet-finalized # of new regions in 2016. After stint at Red Bull in Chicago area, she was among earliest field-marketing hires at Glaceau and went on to launch Kind Bar's field marketing operation 5 years ago. Self-professed coffee connoisseur (whose go-to place in Chicago is Wormhole, in her Wicker Park nabe) said she was attracted to High Brew look and positioning that's "so clean, so concise, really user-friendly - it speaks to a variety of consumers." Ditto to brand's efforts to be regarded as key tool to fuel consumers' days as they achieve across broad realm of activities - from sports to being at-home moms - under rubric, "For those who do," focus of campaign this summer that invited consumers to submit photo and description of how High Brew helps them achieve goals. "Think of this as a Kickstarter campaign for a kickass brand - you!" campaign urged. Johnson also will focus on bringing across cold-brewed coffee's liquid attributes, flagged by brand as "better, not bitter."