Jamba Brands has upped the ante on its move into HPP cold-pressed juices, with addition of 5 flavors that are organic and non-GMO: Organic Tropical Greens, Organic Orange Reviver, Organic Cayenne Lemonade, Organic Mango Limeade and Organic True Greens.  Four of items debut in Calif and select NY stores in mid-Aug, with Organic True Greens to follow in Sep.  Other regions will be added later in fall.  Intro continues progression at retailer that started with fresh-squeezed juice line that tested in Calif in mid-2013, expanded to 500 stores in Jun 2014 and rolled out to additional 200 stores since then, followed by cold-pressed line that began testing in late 2014 and has been expanding in availability since then . . . Recovery drink brand Kill Cliff, founded by Navy Seal and now a staple in crossfit gyms and other venues where workouts lean toward intensity, has entered cold-brewed coffee segment with canned line in 3 non-dairy flavors.  Brewed 24 hours, Kill Cliff Cold Brew Coffee debuts in Epic Mojo unsweetened black coffee, Sweet Mojo slightly sweetened black coffee and Mojo Rising, which blends in some coconut cream.  Entries are produced from Fair Trade-certified, organic Arabica coffee beans.

Brynwood Partners, which is embarked on accumulating and renovating underperforming bev brands from big cos, has played its first hand on Juicy Juice, debuting restage intended to put one-time 100%-juice staple more in synch with millennial moms.  Its Harvest Hill Beverage unit unveiled updated packaging that adopts simpler labels that tone down garish colors of former Nestle brand in favor of more natural-seeming fruit imagery.  Effort will be backed later this week with new campaign that positions brand as “goodness made juicy.”  “She’s looking for authenticity,” Harvest Hill cmo Ilene Bergenfeld explained to Advertising Age, referring to young moms she hopes to entice.  Tho Juicy Juice for years rode all-juice formulation as differentiator vs added-sugar brands, it’s finally ready to make concession to those who are trying to reduce sugar intake, regardless of source: Juicy Juice Splashers drink pouches knock the sugar content down.  (Under Nestle, co had previously offered Fruitfuls boxed line that with similar objective.)  Core line is adding 4 new-agey flavors, too: Strawberry Watermelon, Passion Dragonfruit, Peach Apple and Cranberry Apple.

Shares of bev disrupters Keurig Green Mountain and SodaStream seem to be in a race to the bottom, at least for now, as GMCR joined SODA Wed in disclosing disappointing quarterly results that had some investors and analysts questioning some of fundamental premises of co.  The weakness prompted co to inaugurate 5% staff cutback and undertake reorg that combines US and Canadian businesses into single North American org, for which co is currently seeking leader, who’ll report directly to prexy/ceo Brian Kelley.  (That means both Keurig and SodaStream now are seeking N Amer chiefs who can help them hit “restart” button.)  John Whoriskey, 13-year Keurig vet who’s been prexy of US sales and marketing, is retiring.  Cutback amounts to 330 jobs, about 200 of them in Vermont, AP estimated.

The twin earnings reports bookended trading hours on Wed, with SodaStream disappointing its investors before market opened (BBI, Aug 5) and Keurig doing so after the close.  Keurig said net sales in Q3 sagged 5% to $970 mil (-4% excluding currency issues), on 18% plunge in brewer volumes as retailers worked down unsold inventories and co continues to restock Mini unit that had been recalled last year.  Promos to clear inventory meant price realization dropped 6%.  And while pod volume rose 5%, $$ revenue declined 1% in competitive atmosphere, with some of GMCR’s branded partners among the culprits.  At-home pods grew by 12% in volume, outperforming category, but away-from-home segment was hit by unlicensed rivals and plunged in mid-20s.  Results sent shares skidding nearly 30% Thurs, wiping out roughly $500 mil of equity held by Coca-Cola in GMCR, $1 bil all told as stock has eroded in recent weeks.  Both GMCR and SODA are trading at less than half their peaks hit last fall amid investor anticipation that they were ready to shake up bev biz.

“Notwithstanding the current dynamics impacting our business, our Hot system remains strong, with an enviable category leading position, a growing installed base, solid cash flow generation,” said ceo Kelley, one-time rising start at KO. “We’re also excited about the prospects for the innovative Kold platform we are developing and will soon be launching.  Near-term challenges aside, we are operating from a position of strength and are confident in our long-term business prospects.”

On evening’s conference call, GMCR disclosed little new info on Kold system, whose ability to disrupt soda biz had prompted investment from KO.  Kelley said co is on track as planned to undertake “disciplined, measured launch” in fall, with shipments of appliances and pods now expected to commence in late Sep or early Oct.  For initial digital launch, co has recruited as outside partner brands Coca-Cola, Diet Coke, Coke Zero, Sprite, Fanta, Dr Pepper and Canada Dry, complementing its own carbonated and noncarb brands.  He offered only vague projection of hundreds of thousands of unit sales in first 12 months.  New platform will soak up about $100 mil in investment in 2016.  One analyst asked whether it might not make sense to delay Kold launch while grappling with other issues, but Kelley termed launch key leg of strategy.

Kelley confirmed reports that co is working on WiFi-enabled interactive brewers, “because we believe the next step in the evolution of having the ability to read individual pods involves much of this . . . We’re excited about what it can do to give consumers even more benefit by pod, by SKU and really reward our partners with information and capability that will really be the envy of other systems out there,” he said.

Jones Soda continued to edge back into growth mode, scoring a 9.9% revenue increase to $4.3 mil in its 2d qtr while narrowing net loss to $116K from $429K a year earlier.  That made for 4th consecutive qtr of growth in case sales, at Seattle-based co that had begun to strain its investors’ patience when growth failed to resume after painful cutbacks initiated a coupla years ago by ceo Jennifer Cue upon her return to co, her 3d stint there.  The 13% growth in case sales “is the strongest growth we have achieved since initiating our turnaround plan,” she said.  “It’s been a great summer season so far, and we remain focused on sales growth and building upon the momentum we are gaining.”  Gross margin grew to 24.7% of revenue from 22.5% a year earlier.  For ytd, revenue is up 5.7% to $7.2 mil and loss has narrowed to $394K from $968K.

After drastically cutting back on # of product lines, retailers and regions served during austerity phase, JSDA is undertaking careful expansions now.  Its cane-sugar-sweetened line continues to grow in US and Canada, entering such key retailers as Kroger, which has also picked up brand’s Stripped natural line and its 12-oz cans.  Tho she had no retail wins to announce yet, Cue is also optimistic about push into fountain segment that commenced at last fall’s Natl Restaurant Assn show, citing growing interest from indie operators and “up-and-coming chains that are excited to offer something more unique than standard soda offerings.”  And it’s continuing to have fun with limited-time offerings, adding Peanut Butter & Jelly flavor for back-to-school period, then moving to Halloween-oriented Lemondrop Dead and Blood Orange flavors.  In one tweak, those will be offered not in trick-or-treatable 8-oz cans, as in past years, but in brand’s core 12-oz longneck bottle, a concession to DSD distributors who wanted chance to activate concept.

WhiteWave Foods reported a 10% rise in net sales to $924 mil in 2d qtr, driven by strong growth across Americas Foods & Beverages unit, European operations and boost from So Delicious Dairy acquired at end of 2014.  Earnings per share grew 8% to $0.24 in qtr.  Excluding acquisitions, WWAV sales grew 9% to $911 mil in qtr.  Adjusted operating income surged 20% to $85 mil while net income increased 10% to $44 mil.

WWAV sales soared 26% at Plant-Based Foods & Beverages unit, aided by inclusion of So Delicious results as well as “strong organic volume growth.”  Refrigerated nut-based bevs rose 12%, while yogurts jumped 30%.  Sales were up 6% at its Coffee Creamers and Beverages unit, with gains driven by “increased volumes in flavored and plant-based creamers and organic half & half,” said co.  At Premium Dairy unit (Horizon Organic milk), sales increased 15%, “primarily driven by prior price increases.”  Organic milk category volume gain of 8% in 2d qtr “was largely driven by increased pricing,” and co anticipates growth for remainder of yr will “be primarily driven by price.” 

Yogurt/Kefir Maker Wallaby among Latest Acquisitions   “We continue to execute on our strategic plans to increase shareholder value with today’s announcement that we signed an agreement to acquire Wallaby Yogurt Company,” announced chmn/ceo Gregg Engles this morning.  WWAV is paying $125 mil in cash for Calif-based co that manufactures and distributes organic yogurts as well as kefir bevs.  Wallaby has net sales of $45 mil for 12 mos thru Jun 2015, per WWAV release.  Meanwhile, WWAV also closed on purchase of Vega, maker of plant-based nutritional items for $550 mil in cash.

Suja, embarked on perhaps most aggressive HPP landgrab, may be close to winning minority investment from Coca-Cola.  Tho rumor has been on grapevine for several months now, Reuters reported today that deal is close that would value co at about $300 mil and give KO option to acquire rest of co in 3 years.  (BBI had heard co was seeking higher valuation than that.)  Deal, if it happens, would represent countermove to small investment that rival PepsiCo is believed to have made in recent years in KeVita, probiotic bev and kombucha play that similarly plays in superpremium refrigerated space, tho neither party has confirmed deal.  Reuters didn’t ID its source and didn’t draw comments from either KO or Suja.  Operating out of twin production plants in North San Diego, 3-year-old Suja has drawn investments and endorsements from likes of Leonardo DiCaprio and Sofia Vergara, and numbers among its private-equity investors Alliance Consumer Growth Partners, Evolution Media Partners and Boulder Brands Investment Group.

Struggling under new top mgmt with flock of troubles in its natural-food holdings, Boulder Brands essentially put itself on block yesterday, saying it had retained William Blair & Co to “explore a range of strategic and financial alternatives to enhance shareholder value” after receiving overtures from several unnamed “qualified parties.” 

In wake of abrupt departure of ceo Steve Hughes in early Jun, Colo-based co has restructured mgmt and initiated 15% headcount reduction, as it looks to get cost structure down to level that can support sales velocities that have lagged expectations in categories like gluten-free bread, pizza and pretzels that BDBD has aggressively moved beyond natural channel to mainstream grocers.  Among brands in portfolio are Balance, Udi’s, Glutino and Evol.  BDBD may jettison as non-strategic such units as Level Life Foods (for which it took $2.7 mil impairment charge) and pull back from $3 mil export biz as distraction it can’t afford right now.  In 2d qtr reported today, co racked up $6.9 mil operating loss on sales decline of 10.4% to $117.7 mil.  Still, “we are confident we will return to being a growth company,” interim ceo Jim Leighton assured investors on quarterly call this morning.  (Meanwhile, board has suspended search for permanent ceo as it pursues contacts with potential partners.)

One element that remains on track, at least for now, is Boulder Brands Investment Group, which has positioned itself as “friendly capital” provider and made investments in bev brands like Temple Turmeric and Suja Juice.  “BBIG is still an exciting opportunity at Boulder Brands and we are still making modest investments/minority stakes,” Carole Buyers, svp for investor relations and biz development, wrote in emailed response to inquiry from BBI.  She’s one of troika of decision-makers at BBIG (“be big”), along with Boulder Brands evp Duane Primozich and Bill Weiland of Presence Marketing, who’s partner in fund (BBI, Dec 16).  BBIG is trolling for intriguing natural food/bev brands with $1-10 mil in annual sales.

Monster Beverage shares edged upward today despite last night’s report of slightly softer results during transitional 2d qtr when core energy brand segued to Coca-Cola distribution in half of US and some overseas markets.  Near end of qtr, in Jun, MNST also had completed brand swap with KO that brought in broad mix of energy brands and unloaded diverse array of teas, sodas, lemonades and other non-energy brands, creating further uncertainty during period.  Still, analysts took heart that strong start in Jul to current qtr suggests that transitional issues will dissipate soon enough.

For qtr, net sales rose 1% to $693.7 mil and operating profit grew 5.1% to $228.4 mil excluding special items.  Top line and gross profit both missed consensus by about 8%, operating profit by 12%, Morgan Stanley’s Dara Mohsenian noted.  For 6 months, net sales rose 7.9% to $1.32 bil and operating profit rose 10.8% to $405.9 mil, excluding special items.

On conference call last night, ceo Rodney Sacks painted picture of lumpy distribution transition in US, at time non-Coke overseas bottlers are spooked and pulling back on efforts to push brand.  He said negotiations with Coke bottlers have commenced in many overseas markets, tho brand’s finished-goods model is departure and creates variety of legal and contractual obstacles to concluding deals.  Brand already transitioned to Coke in Germany, and after Sacks’ description of sluggish effort by AmBev in Brazil, where share dropped from 5.3 to 3.9, it seemed inevitable that transition will occur in that market too.  But not every market will transition to Coke, and in markets like Japan, where outside distributor has been assured that brand is not in play, performance has continued to be strong, up 42% in sales.  As for stateside shift, Rodney reminded listeners that co had weathered similar shift 6 years ago, when it first moved to Coke bottling system in half of US, then as now pulling brand from Bud houses.  After temporary glitch, “they got up to speed relatively quickly,” Sacks said. 

Tho 14.1% rise in July sales (+19.2% excluding foreign exchange hit) was a bit below Street’s consensus view, results are “clearly much improved from Q2 as these temporary issues dissipate,” wrote Morgan Stanley’s Mohsenian, in typical take.  “Net, Q2 was a messy quarter with near-term pressures, but scanner data is solid in the US and Europe, highlighting that retail sales remain strong and July improved,” was his conclusion.  Tho he’s trimming back earnings per share forecasts for this and next year, “expect to remain above consensus long-term.”

On call, Sacks offered other reasons for reassurance about co’s prospects, from innovation pipeline to pricing resilience in segment.  On new-product side, he touted forthcoming Juice Monster dubbed Pipeline Punch and banana-flavor Muscle Monster, and said Ultra Black will become permanent sku in well-performing zero-cal line.  Rojo Tea + Energy entry is being reintroduced with less-arcane Raspberry Tea + Energy moniker.

And while Red Bull has outperformed Monster in $$ sales in recent months, Sacks argued that that’s attributable to price increase rival took at beginning of year, which Monster intends to follow now that complexities of Coke transition are largely behind it.  “It augurs well for our planned increase in September,” he assured listeners.

On call, there were signs that unusual structure of alliance is allowing MNST to retain its independence of decision-making.  For one, Sacks avowed that co will continue to control production of Monster Energy, retaining finished-goods model despite Coke bottlers’ preference for concentrate model of sort used in CSDs and the energy drinks that have come over from KO.  And vice chmn Hilton Schlosberg emphasized that, in determining whether or not to transition to Coke bottlers in specific overseas markets, “decisions will be made that are best for Monster, for our company.”

As for the energy marques picked up from Coke, Sacks indicated that, with Monster now available to them, some bottlers already have moved to discontinue Coke items like Gladiator (in Mexico) and Samurai (in Philippines).  But MNST believes in NOS brand in US despite recent slowdown, and “we believe there is a role for Full Throttle in the portfolio as well.”

John Sicher, editor of Beverage Digest, after long, influential run, has found a buyer: UK consultancy Zenith Int’l, the 2 cos announced today.  As part of transition, veteran journalist Duane Stanford, who’s covered bevs both at Atlanta Jnl-Constitution and Bloomberg News, will assume Sicher’s post as editor, while Zenith CEO Richard Hall will take on publisher’s role.  Tho cos said Duane will be based in US, there’s no immediate word on whether he’ll relocate from Atlanta to BD’s current base of operations, Bedford Hills, NY, or perhaps other area.  Besides publishing newsletter, BD holds well-attended conferences in NY every spring and fall, area in which Zenith is well versed.  Sicher had purchased newsletter from its founding editor, Jesse Meyers.

Tho it’s doing less in way of film and music fest tie-ins and other marketing pizzazz in recent years in favor of greater in-store and online execution, unsweetened Hint Essence Water has been on accelerating growth path this year, with sales growth jumping from +48% earlier this year to 80% range once summer arrived, said Theo Goldin, who manages SF-based co with his wife, Hint founder Kara Goldin.  Tho co doesn’t release sales figures, industry execs believe current growth jag, if it continues thru balance of year, could take it from estimated $12-14 mil sales range last year to $20 mil or beyond in 2015.  BBI chatted with Theo on Mon as he drove to retailer sales calls in New England.

In NY, where distributor Big Geyser has patiently partnered in building brand over past decade, Hint has been getting extensive lobby displays at Ahold’s Stop & Shop grocery chain and Goldin said brand seems to turn as well in stores in regular neighborhoods as in more affluent areas, suggesting pricing and positioning of unsweetened, all-natural essence water finally is at brink of developing sizable, broad consumer base.  Overall grocery ACV of decade-old brand has grown to 45% by now, but that disguises fact that in many stores it only has token presence, 1 or 2 flavors.  That’s been continuing frustration, Theo allowed, considering that “once we have visibility (in store), this brand flies.”  Among hurdles to acceptance brand has had to encounter over course of its growth have been Americans’ preference for sweetened bevs and price point well above a dollar in unsweetened water segment where bottled waters and seltzers are aggressively priced and promoted. 

In NJ, meanwhile, where its beer houses have grumbled about margins brand offers, Hint has split with past house and embarked on experiment, running its own fleet from in-state copacker to retailers, supplemented by broadliner UNFI.  So far, sales are up significantly, Goldin said, and some new accounts opened by his team in NJ even have crossed Hudson River to NY territory.  Not least, “our contract with ourself is very flexible,” he joked.  He disclosed no plans to expand experiment, tho.

Move reflects broader rethinking of distribution strategy, with Goldin maintaining that co sees little difference in performance at chains serviced via DSD and those not serviced that way.  That doesn’t mean DSD distributors don’t perform; rather it reflects differences in labor practices within the chains.  Thus, he noted, Ahold’s Giant/Carlisle chain historically has devoted considerable manpower to merchandising bev brands, in contrast to Stop & Shop, for which DSD is better solution.  “So we tailor our approach,” he said.  Among key DSD houses that have performed well for brand are Big Geyser in NY, B&E Juice in Conn and Great State in Boston/NH.

Verlinvest-backed brand has learned over years to be ginger about retailers it enters, insisting that retailers order its core flavors and give brand 2 or 3 feet of shelf space.  Otherwise, “if we can’t be seen, then don’t go in” is motto, Goldin said.  That said, it’s undertaken modest test at Walmart chain, tho it’s too early to characterize results, he said.

As reported, online biz has been increasing focus for brand, not just via 3d-party retailers like Amazon and FreshDirect but via its own Web site, where founder Kara has been bombarding users with lifestyle-oriented emails and social media stressing need for hydration and encouraging them to hit “buy” button right away.  “Happy National Watermelon Day!” she exclaimed in email this week, offering bundled case of still and carbonated Hint in that flavor for $32 including shipping, vs $42 regular price.  Theo estimated online sales have hit high-20s percentage-wise in dollars, in process accelerating not hurting growth on bricks-and-mortar side, he believes.  Given complaint that stores under-merchandise brand, DrinkHint.com well serves those whose natural consumption pattern “is not consistent with what’s available in stores,” he said tactfully.  As AOL vets, the Goldins have been unfazed by new world of online sales, even tho that’s meant grappling with challenges like Amazon pricing algorithms that could leave different flavors at wildly varying prices.  That’s not issue at co’s own platform, DrinkHint.com, of course. 

Like other bev marketers, Hint has also found online channel effective way to get initial read on new flavors.  That was case with Pineapple flavor: it was released online-only, sold out in coupla days, and by time back orders similarly blew out retailers had taken interest in flavor, which has now edged out to stores too.

Brand’s unsweetened carbonated entry, Hint Fizz, is also growing, now comprising 15-20% of overall biz.  But Goldin readily acknowledged it struggles to surmount consumer perception that flavored sparkling water should be cheap, given array of aggressively priced seltzers in market.  By contrast, consumers can’t as readily find alternative versions, even at lower quality, of core still version of Hint.