“Non-alcoholic beverage trends remain very strong with +5.9%” sales growth in Q2, said Bonnie Herzog of Wells Fargo Securities, based on its survey of c-store execs representing over 15K stores.  Gains driven by “ongoing strength in energy (led by Red Bull) and bottled water/enhanced waters/sports drinks, iced teas,” and “craft beers” led alcoholic sales to 4% gain.  Monster Energy sales were bit softer, up 8% in Q2, as “it appears distribution issues weighed on results,” wrote Bonnie.  Out-of-stocks were reported by 2.8% of retailers, which she noted was similar to Memorial Day survey, “suggesting distribution issues may have stabilized more recently.”  Over half of retailers anticipate passing along full MNST 6% price increase on Aug 31 to customers, while 35% of retailers noted they would buy additional volume ahead of price hike.  For full yr, retailers expect energy drink segment sales to be up 10% with Red Bull (+9%) outperforming Monster (+8%) in 2015. 

KO Outperformed Among Top 3   Based on “successful promos and price/pack architecture,” Coca-Cola bev sales were up an estimated 4.3% in Q2, wrote Bonnie.  Retailers credit “Share a Coke” promo for leading to growth in CSDs, while noting “bottled waters and teas” did well, too.  PepsiCo bev sales were up estimated 2.3% in c-stores, “broadly consistent” with what PEP reported, noted Bonnie.  “Gatorade, Starbucks products and Mountain Dew DEWShine and Kickstart helped offset general weakness in CSDs,” she found.  Dr Pepper Snapple sales up an estimated 1.4%, per retailers’ reports, in line with its Q1 results, she noted.

Perhaps in effort to forestall $5 mil judgment in sex tape scandal, rapper Curtis “50 Cent” Jackson filed for Chapter 11 bankruptcy yesterday.  His assets were listed as between $10 mil and $50 mil.  Jackson, recall, was among biggest winners in Coca-Cola’s purchase of Glaceau, netting $50 mil or more thanks to equity he garnered by helping formulate and market Formula 50 flave . . . Ingredient supplier Teawolf of Pine Brook, NJ, has set alliance with Egypt’s Elnasr Industrial Trading Co to expand array of liquid botanical extracts, with key focus on hibiscus sourced from Jamaica.  In exchange, Elnasr will push Teawolf’s liquid botanical extracts, vanilla and tea offerings to its global customer base . . . Mix1 Natural Nutrition Protein Shakes will enter 125 Fresh & Easy Grocery stores in Calif, Ariz and Nev starting next month.

IGA store in Killeen, Tex, recently offered one of hottest prices we’ve ever heard about on bottled water: three 12-packs of Nestle’s Ozarka Water for $5 ($1.67 each); when you apply $1-off coupon from Redplum insert, they end up being 67 cents a pack, or barely a nickel a bottle.  Thanks to reader who sent this in.

Sales of K-cup coffee pods surged 20% last 4 wks thru Jul 4, per Nielsen all-outlet data reported by Goldman Sachs’ Judy Hong.  That’s up from 17% gain over last 12 wks.  Pod volume increased 17.5%, up from 15.6% gain prior month, while prices slipped a bit to +2.2% avg.  “We estimate that GMCR total owned & licensed share of the category was 91.4%, up from 88.1% in the prior period,” noted Judy, referring to Keurig Green Mountain.  But Keurig pod volume was down 8.2% last 4 wks and off 7% last 12 wks.  Meanwhile, Starbucks K-cup volume jumped 28% last 4 wks (in line with 12-wk gain pace), while cups branded with JM Smucker and Kraft coffee brands rose 23.8% and 78.9%, respectively.

In what seems like leaf from playbook perfected by Red Bull Media House, PepsiCo’s Mountain Dew is getting ready to take skateboard fans to remote parts of world via new documentary that employs staggering photography and epic scope.  We Are Blood, a collaboration between Mountain Dew Green Label Films and Brain Farm, premieres Aug 13 in LA in conjunction with start of Dew Tour’s LA stop, Pepsi said.  Film directed by Ty Evans features Dew endorser Paul Rodriguez and other top skateboarders as they take their tricks to Spain, Brazil, China and Dubai, as well as road trip across US.  Following LA debut, film will screen across US . . . High Brew Coffee, canned cold-brewed coffee line from Austin co, has kicked off social campaign dubbed #ForThoseWhoDo that invites participants to upload their pic to brand’s Facebook page and Web site and explain what makes them a “do-er.”  One winner each month will get HighBrew swag, year’s supply of product and chance to work with a professional do-er who can help them achieve goal.  For first winner, swimming pro Marshall Seedorff, that meant time with Bill Stapleton, Lance Armstrong’s coach . . . Monster Energy has enlisted Hawaiian surf pro Makua Rothman to endorse its Java Monster coffee/energy hybrids, starting with summer sweepstakes awarding consumers Java Monster gear.  Rothman, 31, who’s also a singer/songwriter, appears on POP and other collateral.

Lotta eyes are on Whole Foods’ plan for new millennial-targeted chain called 365, but rival Earth Fare chain is also testing new format.  Last week, 37-unit retailer based in Asheville, NC, opened first store employing its so-called urban concept, 24K-square-foot unit in Emory Point nabe of Atlanta.  New store’s layout “places greater emphasis on fresh prepared food items, including sandwiches and wraps, juices, smoothies and coffees, plus made-in-house sushi, salads and other prepared entrees and sides,” said Shelby Report.  It also features 50-seat, indoor/outdoor cafe with free WiFi.  As at existing units, all items carried there adhere to standards that exclude trans fats, artificial dyes, preservatives and sweeteners.  Retailer operating in Southeast, Mid-Atlantic and Midwest had only entered Atlanta market in Jan, but Emory Point unit marks its fourth store in metro now.  Additional stores are coming to Gainesville, Fla, and Summerville, SC, this year.

Big challenge these days for refrigerated kombucha, coffee and juice brands is indie DSD network in which better houses have yet to commit to refrigerated capacity.  That puts premium on thinking outside box.  One potential option is ranks of distributors who’re springing up to service burgeoning array of coffee options.  Case in point: Joyride Coffee Distributors, 5-year-old operation that’s starting to have impact in NY and SF.  It’s proving receptive to keg product from other categories, not just cold-brewed coffee, and even will experiment with bottled items, tho it’s not a focus so far.  Execs at Health-Ade Kombucha so far give Joyride high marks.  Other non-coffee brands in house include Up Mountain Switchel, from Brooklyn.  On coffee side, they’ve lately begun doing co-branded offerings with Counterculture and Four Barrel. 

Operated by 3 bros named Belanich, Joyride started out as Stumptown Coffee truck on NY streets before spotting opportunity to operate office coffee service (OCS) focused on coffee from beans.  They then added Stumptown’s cold-brewed coffee, subject of a big push from Portland, Ore, roaster (BBI, Apr 16).  Core coffee brands include likes of Stumptown, Blue Bottle, Joe, Counter Culture, Intelligentsia and Four Barrel.  As cold-brewed coffee developed traction, they added that to offerings via growlers and nitrogenated kegerators, starting with their own brew, which is steeped 12 hours at room temperature, and more recently adding Stumptown’s.  They also carry cold-brew items from Grady’s in Brooklyn.  Also entering mix were craft teas from Boston supplier and, now, Health-Ade. 

In chat with BBI, one of bros, David Belanich, said Joyride tried lotsa kombuchas in past but until encountering Health-Ade felt taste and image rarely were up to standard they try to maintain.  Health-Ade’s flavor approach, using natural juice, also was appealing.  Though they do some bottles, focus is on kegs, format which is proliferating in OCS channel.  “Craft on draft” is their credo.  Tho initial OCS customers tended to be leading-edge tech cos like Twitter and Uber, more mainstream corporate accounts have since come aboard, including JP Morgan, and are substantial part of biz.  Joyride also services limited # of retail accounts, including Forager store in NY’s Chelsea nabe and The Market on Market at edge of SF’s SoMa nabe.  Info at JoyrideCoffeeDistributors.com. 

Health-Ade Kombucha is continuing its rapid expansion, notching new chains and Whole Foods regions even as it explores alternative formats like growlers and recruits alternative distribution partners.  LA-based brand has been making concerted East Coast push, and soon will bring on Whole Foods’ Mid-Atlantic region (for 5 sku’s), as well as Southwest region centered around retailer’s Austin hq (for 4 sku’s).  Green light came after buyers saw how well brand was performing in brand’s core market, at Santa Monica Whole Foods, with such unconventional flavors as beet, noted cofounder Vanessa Dew, in conversation at recent Fancy Food Show in NY.  Also due aboard shortly is Fresh Market chain.  Brand also is making initial push into Boston via Bayside Distributing, which has been carrying other refrigerated brands like Forager.  In NY brand relies in part on DSD house Rainforest.  Next key target for DSD: Pacific NW.

Health-Ade, recall, started out working LA-area food markets before winning funding from PE shop First Beverage Group and embarking on aggressive national expansion.  It’s close to occupying expanded new production space as it bumps up against capacity limits, Vanessa reported.  Among alternative channels that have proved fruitful is growler market, initially in 5 Whole Foods stores in Southern Calif.  It’s also launched non-returnable, branded growlers for Vintage Grocers in Malibu to see how that fares as route to consumers.  And in NY and SF, it’s cracking key accounts via coffee specialist Joyride that started out as coffee truck in NYC but has grown into significant distributor (story below). 

After undertaking dramatic restage over past year, WaNu antioxidant infusion line has begun to rebuild its retail footprint, landing 450+ Vitamin Shoppe stores nationwide, at $1.99 on shelf, as well as co’s Super Supplements locations in Pac NW.  By end of July, founder/prexy Todd O’Gara believes brand will be available in 3,200 retail outlets.  Also in mix are CVS drug chain, GNC nutrition chain and Bristol Farms and Gelson’s high-end grocers.  Brand is Whole Foods-compliant and is discussing placement there.  There’s also been Costco test.

As doctor who’s worked on nutrition issues in third world countries, O’Gara created line as “functional enhanced bev” that offers more than Vitaminwater or coconut waters.  It’s produced aseptically at Aseptic Solutions in grippable 16-oz bottles that contain 6 g of fiber and 12 vitamins/nutrients.  Using monk fruit/stevia blend as sweetener, O’Gara was able to bring it in at just 5-10 calories per serving.  It’s out in Dark Cherry, Watermelon Raspberry, Peach Passion, and Kiwi Cucumber flavors, devised with help from NY’s Virginia Dare.  

Brand had launched as FluroWater, developing 300+ retail accounts mainly in Northern Calif/Nevada (it resonated less in other launch market, NY) and making it to semifinals in BevNet Showdown in late 2013.  From feedback garnered from trade and BevNet judges, brand did a pivot in Mar to less medicinal-sounding new brand, WaNu (“water” + “nutrition”) and repositioning as more lifestyle-oriented brand targeting athletic, on-the-go consumers.  During transition, co brought aboard Greg Rayburn, vet of Hostess Brands, Magna Entertainment and Sunterra Corp, as chmn, then added ceo title by end of year.  New look debuted at Expo West in Mar.

With brand showing greater momentum in new guise, O’Gara expects to close B round of roughly $2 mil imminently, to support expansion to retail base that’s expected to top 3K stores this month and payroll of 12.  Brand hasn’t enlisted any DSD distributors yet but O’Gara said he’s considering it.  With sales potential greatest in Calif, he and cmo Jackie Gonzalez just relocated from NY to LA hq, tho they leave full-time staff presence in NY.  Tho co is mainly staffed with non-bev folks, one exception is Larry Butler, formerly of EX Drinks, who’s running sales in key Southern Calif market.

Brand works with GNF (Gold N Fish) Marketing, Armonk, NY, whose client roster has included Ole Smoky Tennessee Moonshine, Ommegang Brewing and Virgin Mobile.  Brand seems to appeal to males and females in equal proportion, Gonzalez said, including cycling and paddleboarding enthusiasts. 

Following judge’s approval of deal in late Apr, Don Vultaggio in recent weeks has quietly concluded $1 bil buyout of his estranged former partner in AriZona Iced Tea, John Ferolito, on terms that apparently didn’t require addition of outside investors or major loan.  Tho Long Island-based co hasn’t made any announcement since deal’s approval, several sources close to co have confirmed in recent weeks that transaction was concluded in manner that allows Vultaggio to retain full flexibility as to how to operate.  It’s not clear why co is laying low on this, but news is likely to be greeted with relief by wholesalers and retailers who were reluctant to see agile co get subsumed by strategic partner, whose potential ranks over years have included likes of Coca-Cola, Tata and Nestle, that might stifle innovation or move brands to captive distribution system.  BBI approaches in recent weeks to attorney Lou Solomon of Cadwalader and to Vultaggio’s son Wes, who’s key exec there, drew no response until email last night from Lou saying he’s not authorized to discuss situation; he referred query to other AriZona execs, who hadn’t responded by press time this afternoon.  Many outside co view settlement as favorable to Don, since Ferolito’s sought-after valuation of $4 bil was slashed by judge to $2 bil, modest multiple for well-established co that claims to do about $1 bil in annual sales.  It employs roughly 1,000.

Deal covered Ferolito’s legal fees and allows him to participate in upside should Vultaggio decide to sell the co in future.  After making initial downpayment last Nov of $125 mil, Don would have been on the hook to deliver another $875 mil or so, tho timetable and other terms haven’t been disclosed.  Some within co had worried that, despite his high net worth, Vultaggio has enough investments tied up in illiquid assets like commercial real estate that he might be forced to raise substantial amount of outside capital, on terms that might compromise his independence.  Tho we haven’t heard definitively whether he had to incur any significant outside debt or bring in any outside investors, that doesn’t seem to be the case, judging by general elation within co at outcome.