Continuing to refine PlantBottle that first hit market in 09, Coca-Cola has unveiled version of PET bottle that's made entirely from plant materials. New iteration reps dramatic upgrade from current version, which uses no more than 30% plant-based materials. It was shown this week at World Expo - Milan event. KO claims that it's distributed more than 35 bil of the bottles in nearly 40 countries since launch 6 years ago. 

Mix1 Life has added A-B house Farrell Distributing of Vt to network carrying revived No Fear energy drink, once a Pepsi brand. Brand is among several that see opportunity in Bud network now that Monster has segued nearly entirely to distribution by Coke bottlers in US . . . Chimp Food, which riffs off interest in paleo diet with "raw whole food that you drink," has cracked Whole Foods chain, entering natural foods retailer's 15 stores in South Fla, near where Chimp Food is based.  

PepsiCo, already riding glass-bottle, craft-like Caleb's Kola and Mountain Dew Dewshine into retail and on-premise channels, is planning fountain entry called Stubborn Soda that eschews HFCS for Fair Trade-certified cane sugar and employs natural flavors. New line is breaking in unidentified select markets "as early as this summer," Pepsi rep said, in sometimes-exotic range of flavors: Black Cherry with Tarragon, Classic Root Beer, Lemon Berry Acai, Agave Vanilla Cream, Orange Hibiscus and Pineapple Cream. Key feature of launch is new dispenser that mimics excitement conjured up by craft beer with tap-like "pouring ritual" meant to engage customers, who'll be frequently consulted as co tweaks concepts. Caleb's will have spot there too . . . Owl's Brew, tea-based line of mixers that can be used with uncommonly diverse array of alcoholic items, has added summer-oriented White & Vine entry melding white tea with watermelon, pomegranate and lemon peel. Like existing entries, Coco-Lada, Pink & Black and The Classic, it's offered in 8-oz and 32-oz packs and is meant to be mixed in "2 parts brew, 1 part booze" ratio. It's launched on online retailers like Craft & Caro, Goldbely, Food52 and Brit & Co and is heading into specialty retailers, supermarkets and wine shops now.  

Monster Energy inked seven-figure deal to sponsor race horse American Pharoah as it tries to become first Triple Crown winner in 37 years this coming Sat at The Belmont Stakes, reported NY Post. It's "the biggest deal in the history of horse racing," claimed Ben Sturner of Leverage, sports-marketing agency that brought the energy drink co together with Zayat Stables. "If he wins the race, we'll be part of one of the most amazing feats of our time," said Mitch Covington, Monster sports/mkting exec. Deal is seen as win for horse racing, which has struggled with viewership in recent years, but Monster's "youthful demographic promises to broaden the audience for the event almost as much as the event brings attention to the sponsor," noted report. As per agreement, Monster's logo will be featured on American Pharoah's blanket, appear on its jockey's collar and emblazon its barn at Belmont . . . FIFA sponsors Visa, Coca-Cola, Budweiser and McDonald's welcomed embattled prexy Sepp Blatter's decision to step down just after winning re-election in face of widening corruption scandal that appears to have extended to members of his inner circle. "However, both Visa and Coca-Cola repeated warnings that they expected a swift overhaul at FIFA," soccer's global governing body, BBC reported. In statement, KO said move is "positive first step" but demanded that FIFA "act with urgency" to "win back the trust of all who love the sport of football," quaint phrase used by a few billion people to describe sport of soccer. Tho major leagues outside US have concluded their seasons, sport will remain in spotlight this summer as major teams embark on global tours playing friendly matches, and major tournaments like Women's World Cup and Gold Cup get under way.  

Ramifications on NA side are still spooling out after last Friday's closing of beer-distribution deal in NY that saw powerhouse Coors and Corona house Manhattan Beer acquire rights to Heineken, Guinness and Brooklyn brands handled by Phoenix Beehive, with now-homeless Polar Seltzers cobbling together temporary expedient as it evaluates longer-range options and Rockstar Energy departing for parts still-unknown.

Given magnitude of beer brands entering Manhattan Beer, "we basically didn't take the NAs" handled by PB, said Manhattan Beer coo Bill Bessette, noting that Rockstar Energy in any case would have been conflict with Red Bull brand for which MBC has on-premise rights in NY area. But MBC will maintain its current array of NAs, including Reed's soda and kombucha lines, Saranac and Ithaca soda lines put out by craft-beer suppliers, Nestle Waters brands like Pellegrino, Voss Water and niche brands like Martha Stewart Uliv Java. (Another NA brand, Boylan and sibling Mash line, recently migrated to NA house Big Geyser.) "With all we're taking on, the focus has been on the big beer brands," Bill explained.

Among prime NA brands within PB, the biggest, Polar Seltzers, has fashioned interim solution that should keep product flowing to core retail channel, the grocery chains. Transition to MBC "could have worked but the interest wasn't there," given different service and margin expectations at MBC, said John Wetzonis, svp at Polar Beverages. John noted that co was reassured to see seltzer line's strong growth continue in NY despite service issues at PB during extended transition, suggesting enough brand strength to weather prolonged search for optimal solution. So for now, at least, co has retained J Kings warehouse operation as sourcing location and is eyeing direct ship opportunities to some retailers while continuing to evaluate other options. "There's no benefit of us rushing," noted John, recalling that a few years earlier Polar had weathered abrupt shutdown of its NY DSD partner Beyer Farms, assembling new DSD system within the week. Local sources said Polar Bev execs had reached out to indie houses in NY but talks foundered over Polar's insistence that they only handle up-and-down-street accounts, for brand that overwhelmingly does its biz within chains.

Another key brand on NA side at PB was Rockstar Energy, which not long ago had left Dr Pepper Snapple Group operation (the old Mr Natural) for PB but now has found itself orphaned, given MBC's role as on-premise distributor of rival Red Bull brand. Since Rockstar is aligned with Pepsi bottling network throughout most of US, logical new home would be Pepsi operation in NY owned by Honickman Group (a part owner of Manhattan Beer), but no word yet on whether that's Rockstar's destination.

Recall that PB had acquired the Hudson Valley operation north of NYC of Dr Pepper Snapple Group; that unit is not included in MBC deal and will continue to operate. PB Web site notifies customers that operation, called LoDo, "will continue to distribute Snapple, Canada Dry, Fiji and other soft drinks in the counties of Orange, Ulster, Dutchess, Rockland, Putnam, Sullivan and Delaware." Other brands carried by PB in its core NY territory ran gamut from Nu Aquos protein drinks to Kombucha Brooklyn. Word on street was that PB service levels, sometimes spotty in best of times, had deteriorated markedly during extended transition as deal traversed hurdles toward completion.

The MBC/PB deal, initially styled as a merger, had been in works a long time, with word leaking out last Sep and formal announcement happening in Dec. Transaction went thru 3 mos of intensive US Justice Dept review and encountered numerous twists and turns, approaching collapse on at least one occasion. But finally it's done, creating much bigger, more powerful beer distribution entity in metro NYC area. Manhattan Beer will now be 45+-mil-case beer distrib with unified MillerCoors, Constellation (Corona) and Heineken USA portfolios throughout metro area as well as many other suppliers. PB owner Windmill had been partly owned by Heineken (15%) and MillerCoors (5%), but mostly by Brayman family. While Heineken and MC exited their ownership stakes, Brayman family retains shares in a new Manhattan Beer and apparently in LoDo operation in Hudson Valley. Of that 45 mil cases, only about 1 mil are NAs, coo Bessette estimated.  

San Diego-based entrepreneur bringing HPP process to chocolate bested 15 other contestants yesterday in BevNet Live Showdown. Branded as Rau Chocolate Cacao Superfood Drink, entry is claimed by its youthful founder/ceo, Daren Myers, to be first cold-pressed HPP organic raw cacao on market. Line packed in 16-oz plastic bottles has launched in Calif in flavors Original, Mint, Cold Brew Mocha, Coconut and Mayan Spice, targeting such alt-demos as yoga adherents, vegans, Cross Fit participants and outdoor enthusiasts. It employs single-origin Ecuadoran cacao and is claimed to be dairy- and soy-free, vegan-friendly and gluten-free. It comes in at 120 calories per bottle thanks to use of monk fruit as sweetener. Daren claimed to have sold 100K bottles in just 90 Calif locations during brand's initial availability, prompting statewide expansion now via natural-food distributors Dove in Northern Calif and UNFI in SoCal. He told BBI he's recruited former Mamma Chia sales exec Steve Cochran to accelerate growth. Judges at event held in NY on Tues and Wed noted that taste profile reps challenge to palates honed on Nesquik, but Presence Marketing's Bill Weiland said that's countered by growing traction seen for raw-chocolate bars. "I think this product is executed beautifully," he said. BevNet judges' award brings $10K in cash and other prizes; brand also won audience award. Brand info at DrinkRau.com. More on other Showdown entries in upcoming BBI issues.  

In recent months it's been elephant in room: given frothy valuations seen in recent food/bev transactions, have we entered bubble phase? "I have no idea," Sherbrooke Capital managing partner John Giannuzzi said at outset of BevNet Live presentation on subject - before proceeding to offer abundance of evidence that made it impossible to rule out a bubble. Along way, he drew out ramifications not just for buyers and institutional investors but particularly for emerging cos' founders, ceo's and mgmt teams, constituency for whom, "when things go bad, they can go really bad." Among key lessons: just because you can get it these days, don't push too hard for top valuation, given tradeoffs.

Giannuzzi is well-known figure in bevs, given involvement of his 17-year-old PE shop in Izze, Oregon Chai and Adina, latter with SoBe founder John Bello still aboard. Sherbrooke enjoyed successful exits from first 2 cos (to Pepsi, Kerry Group respectively) but latter was "train wreck" that soured Sherbrooke on bevs for long stretch. It recently edged back in via investment in Cross Fit recovery icon Kill Cliff. He was speaking yesterday on concluding day of BevNet Live conference that opened on Tues.

John didn't question that market's gotten much frothier in recent years, and offered litmus tests that some use to gauge whether we're actually in bubble territory: Excess speculation, when folks put reason aside and buy into a story. Valuations divorced from fundamentals, hitting 5-7X revenues, 12-15X EBITDA. Investment decisions guided by FOMO - "fear of missing out." Complicated window where even smart people can get into trouble.

Giannuzzi declined to vote yea or nay on whether we're in bubble, but offered "data points" like frothy process as Sherbrooke shopped Angie's Boom Chicka Pop in late 2014. Initially Sherbrooke thought it was targeting all strategics in CPG realm and "got quite a ways with several." Given "interesting" market, it decided to reach out to a few big financial players, too. Of 4 it approached, 2 responded within 24 hours "and all of a sudden, we had a horse race." The financial buyers ended up outbidding the strategic buyers, who presumably would have clearer read on brand's prospects. So, "you tell me, are we in a bubble?" Giannuzzi asked.

Other data points: burgeoning interest in Silicon Valley in food/bev plays. Meat snack co (read that as Krave Jerky) bought by strategic at almost 10X sales. General environment that's seeing funding flocking to concepts like airpnp (bathroom search app).

So who are winners and losers amid frenzy? Of course, bankers, lawyers and consultants do well. So do mgmt and investment teams that have built great businesses - say, to $60-100 mil range - and are seeking exit or last $5-15 mil tranche to generate spurt of momentum ahead of hoped-for liquidity event in year to 18 months. Among obvious losers are strategic and financial buyers who didn't exercise a lot of discipline, using lofty growth assumptions to justify unrealistic purchase price.

Also on losing side are cos that raised $$ at high valuations and failed to perform - "if you create expectations that your business is worth $50M and you're doing $5M in sales, and somebody writes you a check … All I can say is, you better deliver. Be careful how hard you push on valuation." Also losers are shareholders, general partners and limited partners who find their investment is worth less after the close. And "founders and management teams that get replaced."

This all has clear implications for budding bevcos trying to navigate scene. They need to understand that raising capital is not just a transaction, but means entering long-term marriage, with future ups and downs. So pick partner carefully. "Focus on value, not valuation," what the investor can bring to you. Does it have track record? Consistent point of view? Can it help you in other ways beyond just writing check? Don't expend undue energy worrying about control - "if you don't own 100% of your business, you've lost control already." And pressing hard for higher valuation via auction process or term sheet tussles means you'll be pressured that much harder to deliver on performance. "Winning happens at a liquidity event, when you sell the business, not when the round closes - that's the beginning, not the win," Giannuzzi emphasized.

John made case that ideal partner in market like this is not too much unlike Sherbrooke itself: Seasoned team of investors with proven track record. The large # of first-time funds plying food/bev realm now are "very eager and very aggressive, but be careful." Partner should be informed, engaged, networked and able to offer not just money but operational expertise - "help you do things you and your team can't do yourselves." And there needs to be an alignment of interests before the check gets written: agreement on end game, growth strategy and targets, role of product innovation and brand. Don't neglect to discuss the role of current mgmt, whether investors view you as still in picture down road. "That's a fair conversation to have," Giannuzzi said.  

Even as it's abandoned plan to operate network of micro-juiceries around country, HPP player Vital Juice has run afoul of FDA at its headquarters plant in Seattle, on Elliott Ave West. Newly posted warning letter from FDA dated May 4 claims that Nov inspection "revealed serious violations of the juice Hazard Analysis and Critical Control Point (HACCP) regulation" and that Vital's juices "have been prepared, packed or held under insanitary conditions whereby they may have been rendered injurious to health." Tho co did offer response in Dec, that didn't fully address issues, agency noted, requesting further response.  

Boston-based entrepreneurs behind Mocked Up line of boxed mocktails are undertaking course correction, ditching whimsical Varga-style pinup girls on packaging in favor of more upscale, refined graphics that offer naturalistic renderings of key ingredients and completed non-alc cocktails against black background. It doesn't hurt, either, that abandoning the girls eases way into more conservative markets like Dubai, where importers have expressed interest in carrying line, said cofounder Randy Shefshick, a former Rockstar Energy sales exec who a few years threw his hat in ring as entrepreneur with launch of Something Natural sparkling line. Mocked Up was co's 2d product, with more envisioned in future. All-natural Mocked Up is available so far in Cucumber Mint Cosmo, Polynesian Pina Colada and Agave Margarita versions.

MockedUp was devised by Randy and his wife as she navigated changing consumption patterns that come with having one's first child and realized there were few sophisticated options available for those who can't or don't want to drink alcohol. Co has gradually been building following for brand, working new-mom events and mommy blogs, and enlisting Golden Brands in Utah, where heavy Mormon population offers potential for NA cocktail brand. (Golden also has picked up Something Natural, and gotten brands into Kroger's Smith's banner.) Mocked Up is carried nationally now by Kehe broadline distributor.

Revamp comes as Something Natural, packaged in distinctive curved cobalt-blue glass bottle, continues to build momentum, at time many consumers seem to be seeking more natural versions of the bubbles they like to consume. It's sold in Whole Foods' Southern Calif stores and Bristol Farms, has entered test via Kehe in about 50 Target stores, primarily in Southern Calif, and has also entered about 30 of Walmart's new Neighborhood Market format stores in Pacific Northwest. With co garnering some traction, it's also begun to explore outside capital-raising options, after self-financing effort to date, Shefshick indicated.  

Seeing planets better aligned this go-round, Brooklyn-based Cumberland Packing is trying again to extend its distinctively branded Sugar in the Raw tabletop sweetener into RTD sector, with trio of mid-calorie sodas packed in 12-oz glass bottles. The In The Raw sodas, using familiar block lettering of the brown sugar packets, debut in Tea with Natural Lemon Flavor, Lemonade and Cola flavors, all a blend of In The Raw's Fair-Trade-certified turbinado sugar and stevia, clocking in at 70 calories per bottle. The sodas, which contain no artificial sweeteners or preservatives, are going out in 4-packs at $5.99-6.99, in line with other boutique sodas.

Line initially is targeting natural channel via broadliners like Kehe, which quickly depleted first order, and hopefully others like UNFI, said Jeff Buntin, Chicago-based sales dir for alternate channels. "We'll keep it craft and see where it goes," he said. At time mass-market CSDs are in decline, new entry targets consumers who may be looking for new place to go, factor that wasn't in play the first time Cumberland tried a cola line years back. Tho it uses co's Stevia In The Raw as ingredient, that's being downplayed; Jeff said most consumers won't pick up stevia presence in soda's flavor. Line will be on display at upcoming Summer Fancy Food Show opening at NY's Javits Center on Jun 28. Cumberland traces heritage of In The Raw line to 1970, when Brooklyn restaurant requested a less-processed sugar for its customers. "We took off for the tropics and came back with a delicious turbinado sugar made from natural sugar cane," recounts Web site at InTheRaw.com. Co run by Eisenstadt family has continued to expand range of tabletop sweeteners since then with In The Raw entries using ingredients like stevia, monk fruit and agave.