Vita Coco is entering fashion collaboration game, teaming with L*Space by Monica Wise to offer limited-edition palm tree print bikini that plays on coconut water's tropical vibe. Reversible bikini is available starting tomorrow on L*Space's site for $163 . . . Big Red's Hydrive Energy Water is tying in with Paul Feig comedy Spy with sweepstakes that will send winner to Washington to get inside scoop on spy's life from retired spook. So-called Ultimate Spy Mission also will offer tour of DC spy landmarks and visit to Int'l Spy Museum. As part of collaboration, Hydrive will post "The Untrained Spy" digital video series on its site starting May 18.  

Dean Foods is moving to harmonize its scores of local and regional dairy brands under national DairyPure rubric, hoping repositioning helps turn around longstanding sales declines. Move won't totally abandon venerable dairy names like Alta Dena, Berkeley Farms, Dean's and Garelick Farms, which will retain lesser on-pack role in brand hierarchy, but will seek to establish what would be first national brand for fresh white milk, buttressed by "Five-Point Purity Promise" that makes such assurances to consumers as that items eschew artificial growth hormones, are tested for antibiotics and are only produced from cows fed a healthy diet. Radical move - Dallas-based co said it's "revolutionizing" milk category - is akin to Nestle Waters unifying regional brands like Poland Spring and Alhambra under single national brand. It's response, Dean indicated, to new research commissioned from Wakefield Research that indicates that 71% of American parents are concerned about quality of milk they serve their kids. New DairyPure brand launches with whole, 2% reduced fat, 1% low fat and skim/fat free milks in gallons, half gallons and quarts, followed soon by half-and-half and creams.  

Count DS Services of America, newly acquired by Cott, as latest to venture into perilous territory of launching Sparkling Ice challenger. Atlanta-based co is offering twin entries in straight-walled, half-liter bottles similar to Ice's: Ice knockoff Sparkletts Ice and essence sibling Sparkletts Sparkling Water. Sparkletts Ice (co doesn't capitalize "i" in Ice) launches in Pink Grapefruit, Black Raspberry and Orange Mango, while Sparkletts Sparkling Water launches in unflavored option called Simply Sparkling as well as Lemon Lime and Raspberry. Both lines roll out to retail and co's extensive home and office delivery network this month. So far, as Talking Rain prexy Kevin Klock has noted (story above), no rivals have made meaningful dent in Sparkling Ice, even well-heeled ones with retail clout like Coke and Pepsi.  

Talking Rain prexy Kevin Klock, riding one of fastest-growing bev brands in memory, offered some color at recent Beverage Forum on Sparkling Ice line that's deftly straddled gap between diet CSDs and bottled waters. And more provocatively, he suggested innovation engine is heating up at Preston, Wash-based Talking Rain as co looks to bolster national DSD network it finished assembling about a year ago.

In keynote at latest Forum event in Chicago, prexy Klock sketched out assumptions and challenges of running brand which only entered test market in present form in 2010 but had surged to $539 mil in retail sales by 2014 - bigger than Vitaminwater and Vitaminwater Zero combined, Klock noted. Some key metrics: At 13.5%, household penetration is still low, minimizing any concerns about cannibalization as line continues to expand. Most established channel is food/mass, at 90% ACV, with drug in mid-60s. C-stores, still at just 35% ACV, are key growth target, as is foodservice. Given brand's high velocities, Ice is unabashedly pro-DSD in distribution model, via network whose buildout was completed a year ago.

Most intriguing remark came when Kevin was asked what's his biggest fear. He responded that co has put "beautiful network" together and feels need to bring more value to it. So question becomes, "What space do we innovate?" Co's other portfolio brand, the still-regional Talking Rain Sparkling Water, might seem to be natural fit for role, but that seems unlikely because it plays in such a challenged category (analysis, below).

Overseas markets are another key opportunity. Ice is beginning to break out in Canada via joint venture with Sun Rype, and is also in Mexico, Australia, Caribbean. Int'l biz should end up being 20-30% of total, Klock figures.

Some in bev biz view Ice's success as amusing paradox, since it's clearly drawing some consumers from diet sodas which, technically, aren't all that different from Ice. So is Ice a CSD or enhanced water? "Brand positioning hasn't changed," asserted Klock. "It's a flavored sparkling water" born out of recognition that consumers were looking for more sweetness from their waters, but not syrupy taste of traditional sodas. Its carbonation levels and sweetness levels are not as high. That makes Ice "dramatically different," he said. In Talking Rain portfolio for coupla decades in various guises as regional entry in Pac NW, Ice started out as HFCS drink. Co decided to focus on refreshment as area bev industry had walked away from, Kevin said. "Make zero calories taste good." Any disconnect between brand's use of preservatives and its healthy halo? "We just focus on refreshment," Klock responded.

From what co can tell, it sources its volume mainly from diet CSDs, then from regular CSDs after that. Core demo seems to be age 25-44, but brand seems to reach pretty broad audience beyond that. By now line boasts 11 regular flavors, 6 lemonades and 3 teas, and each of line's flavors has proved incremental to sales, Kevin asserted. Tho some in lemonade segment bridle at use of term for Ice entries with scant fruit juice, syndicated data for food/drug/mass channel by now shows subline to be #1 in lemonade segment by more than double, Klock noted. As for newer iced tea subline, that's 3d most widely distributed tea in US, from ACV standpoint.

Marketing has been work in process. Last year, with array of rivals entering market, co refocused its marketing on streets, after experimenting with TV ad and other paid media the prior year. Co regards this year as its first with "360-degree marketing," as it tries to get handle on social media as volume driver. New cmo, ex-Red Bull and Muscle Milk exec John Peirano, came aboard coupla months ago. As for rivals, Klock professed not to be hugely surprised that they've pretty much sputtered, given recent history that shows other brands to have dominated their segments: Vitaminwater, Muscle Milk, 5-Hour Energy. In all those segments, there's been "solid #1" and no strong #2.

Packaging is regarded as key part of mix. Core pack, half-liter (16.9-oz), came out of recognition that consumer prefers smaller bottle to standard 20-oz employed in cold box for many sodas, teas and sports drinks. Clear bottle was deemed essential to allow shopper to see product, and idea of clear bev was rejected as too confusing for sweetened bev. Co recently has moved to diversify packaging array with addition of 8-oz slim can offered in 8-packs at $5.99. New format met longstanding requests for multipack offering and smaller serving sizes, which rivals (presumably including likes of Perrier and Pellegrino) were using to good effect in foodservice. So new format should bring in more users, across broader array of dayparts, Klock figures.

Kevin allowed to interviewer that ride's been fun so far, tho not lacking in challenges. "I have less hair and more prescriptions, that's for sure," he noted.

Analysis: Can Talking Rain Sparkling Water Go Big? Maybe Not, Given Competition As Talking Rain looks to become even more substantial supplier to its DSD houses, it's apparently given consideration to rolling out other brand in its portfolio, Talking Rain Sparkling Water. Like Sparkling Ice not long ago, that's still regional Pacific Northwest staple, but it offers neat complement to sucralose-sweetened Ice brand with formulation comprised of sparkling spring water and natural essences. Could that prove addition to that "beautiful network" of DSD distributors that Talking Rain prexy Klock is looking to support?

In some ways it's tempting prospect: good complement to Ice, and a counter to National Beverage's fast-growing LaCroix brand, in unsweetened sparkling segment sporting health aura and brisk growth. While Talking Rain execs aren't ready to discuss idea, answer seems to be no. Among thorny issues launch would confront is gross margin: canned LaCroix brand goes out direct to retail at low price, and Ice's wholesalers surely would prefer new brands that offer greater, not lower, margin than Sparkling Ice. Private-label brands also play well in segment, via easily price-promoted 1-liter and 2-liter bottles. That said, more-premium sparkling essence brands like Perrier, Pellegrino and Hint Fizz are growing briskly now, as an upgrade over plain water for consumers who're determined to avoid calories or artificial sweeteners. But for now, at least, no rollout seems in cards.  

SodaStream suffered severe hit to sales in its first qtr as Israel-based maker of home bev systems continued radical transition from identity as soda co to health-and-wellness-oriented water brand. Sales slid 23% to $118.2 mil, with most of declines concentrated in US, where co has exited hundreds of stores, pulled back on marketing and let inventory erode as it preps for relaunch in Q3 with new machines, new flavors and new identity. Americas revenues sagged 34% to $22.8 mil, but even strongest market, Europe, was down 13% to $54.6 mil in sales. Strong dollar exacted a toll, too. Thanks to cutbacks, operating income rose 56.2% to $3.7 mil, exclusive of restructuring costs. As of noon today, shares were off 7%, in soft market overall.

SodaStream ceo Daniel Birnbaum continued to beat recent theme of "landslide" shift in US consumption away from traditional soda in favor of healthier, all-natural water bevs. So despite its name, co no longer views itself as soda provider. Instead, co has decided to blow up its biz, dropping all existing soda makers in favor of new entries dubbed the Power, which hits retail later this month, and The Mix and The Ultimate that will come to market in early 2016. They'll be used to offer 5 lines of branded water flavors in upscale Yves Behar-designed bottles that employ all-natural ingredients, no artificial sweeteners and, for one of the lines, functional reinforcement. It's revamping array of branded partners, too, dropping some mass brands without good-for-you connotations like those marketed by Kraft and setting up alliances with likes of Cordon Bleu (for gourmet flavors and cookbook) and Bethenny Frankel (for Skinnygirl flavors). But it's continuing its test with Pepsi, tho Birnbaum had no news to report on that. In meantime, co is letting its inventories draw down to ease transition to new flavors in Q3. "We're low on syrups now but that's deliberate," ceo said. In US, flavor units plunged 60% to 1 mil in Q1, while gas units declined 20% to 1.1 mil units and soda makers dropped 39% to 48K units.

Recognizing that it tried to go too broad too fast, SodaStream is trimming back retail footprint to focus on higher-end specialty grocers and lifestyle operators like Whole Foods, Williams-Sonoma and Bed, Bath & Beyond, slashing store count by 3,900 units over past year to 13K currently, including exit from 1,700 Walmart stores, as well as stores operated by Kmart, Sears and Macy's. Nor will co insist any more that retail partners carry full range of items, from systems to consumables. "Our philosophy, particularly for the US, is quality over quantity," Birnbaum explained. Asked whether his exit from retailers like Walmart could make room for new competitor (read that Keurig Cold system), ceo said he doesn't regard that as possibility given price point involved, tho he's hoping rival entry provides lift for entire category.

On mgmt side, co has recruited former Kraft, Nabisco and Polar Electro exec Tony Bass to mastermind relaunch as vp sales, reporting to new Americas gm whose selection should be concluded soon, Birnbaum indicated. (Bass, who starts May 18, will fill that role too for now.)

Role for DSD Distributors for Gas Canisters? Getting CO2 refills to consumers and back has been continuing problem, particularly as co grapples with shifting state regs regarding hazmat items. Unlike case with flavor inventories, low inventories on gas refills in Q1 weren't intentional, Birnbaum indicated. How to solve problem, viewed as crucial to customer retention? Ceo indicated he's willing to think outside the box, beyond such obvious potential gas exchange sites as drug stores, c-stores and gas stations. On conference call, Birnbaum ruminated about employing "minidistributors" in urban areas, as well as Fresh Direct-type e-tailers, Uber, Domino's Pizza, "you name it. There are all kinds of new-age ways to reach consumers."  

Strategy update last issue on Aquahydrate alkaline-water brand mistakenly suggested that former DPS exec Rich Schuttenhelm arrived as successor to departed sales chief Greg McCauley. In fact, Rich was already in place as svp national accounts, position he continues to hold. Aquahydrate ceo Hal Kravitz has picked up top sales role for now, along with top marketing role he picked up upon departure of marketing chief Nate Puksta, as story reported.  

Tho brand has been growing briskly in northwest quadrant of US, soccer-themed energy and hydration play Golazo has been in rebuilding mode on coupla fronts. It's rebuilt its recipe, moving to certified organic status, and it's brought on new crew of athlete endorsers after its highest-profile soccer ambassador was snatched up last year by elite English team and shanghaied overseas. Golazo, of course, is named for exuberant Latino word for super soccer goal, and was launched by Cranium creator Richard Tait, former Microsoft exec whose investors in both projects have included Starbucks ceo Howard Schultz. Brand's canned healthier-energy line is formulated from green coffee beans and yerba mate, while its bottled hydration line employs coconut water and dose of electrolytes.

The athletes first. With youthful Seattle Sounders and US National Team star DeAndre Yedlin now ensconced in London at Tottenham Hotspur and no longer able to actively support brand in-market as he did last year, Seattle-based Golazo has brought back its other endorser from last year, Portland Timbers captain Will Johnson, and added Sounders' local product and scoring ace Lamar Nagle. And with co estimating that 30-40% of its users are female, it's brought aboard its first female ambassadors: Jesh Fishlock, Wales national team captain who plays for Seattle Reign, and Kaylyn Kyle, Canadian international who plays for Portland Thorns. Formal announcements are due over next coupla weeks, but all athletes play to local loyalties in soccer hotbeds of Seattle, Portland and Vancouver while sometimes offering profile on international stage, too. They'll participate in "Work Out with a Pro" sweepstakes, reprising successful effort undertaken by Yedlin and Johnson last year but this year breaking out separate contests in Wash and Ore. Yedlin, locally raised player whom Golazo picked up while still in near-anonymity, proved to be breakout US player during last summer's World Cup, prompting interest from major European clubs like Spurs. But brand also has been broadening activities beyond soccer, working running, cycling and Ultimate Frisbee events, and recruiting likes of Portland ultramarathoner to endorser base.

Non-GMO Was Way Station en Route to Organic Certification On product front, Golazo is completing arduous transition from non-GMO status to certified USDA Organic, with revamped items due to hit shelves this month. Move puts brand in synch with estimated 80% of households that purchase some organic items, while avoiding increasing risk of making all-natural claim as class-action suits on issue proliferate. Move was a challenge, given brand's use of non-mainstream ingredients like stevia and yerba mate, but it was eased by prior move to non-GMO status. "We did a lot of the heavy lifting with our Non-GMO Project verification a couple years ago, especially in qualifying key suppliers that we already knew had clean, non-GMO ingredients," Tait said. "Progressing from non-GMO to organic was much easier than initially securing non-GMO verification and has proven to be a great path for us. Many of our non-GMO sources were the first place we looked when we started to explore organic certification." Line's 8 full-calorie entries - 4 on energy side, 4 on hydration side - all met 95% threshold to carry USDA certification logo. Two remaining sku's - sugar-free energy entries - will employ lesser declaration that some of their ingredients are organic.

All these moves come as Golazo, which groups its hydration and energy plays under rubric Golazo Natural Sports Fuel, refrains from expanding geographic footprint while it continues to fill out its presence within Pacific NW and parts of Calif. "We are being as deliberate and thoughtful as we can with every step we take," vows Tait. After faring well with 4 hydration sku's, grocer Fred Meyer is adding 4 energy sku's, and Golazo is expanding along with Haggen chain, whose purchase of divested Safeway and Albertsons stores has expanded its store base from 17 to 67, said coo Mike Brown. Natural food stores remain highest-velocity channel. Tho they cam to market a year later, the 4 hydration sku's comprise 35% of sales, vs 65% for the co's 6 energy sku's.  

Not long after fomenting alliance with Red Bull China that should open door to major push in Asia, Vita Coco has recruited 15-year Coca-Cola vet Mike Shepherd as prexy of Asia Pacific region. New Zealand native will be based in Hong Kong, overseeing distributors in Singapore, S Korea, New Zealand and Phillippines and working with recent investor and distribution partner Red Bull China in that market, whose corporate name is Reignwood Group. Reignwood purchased 25% stake in co for $165 mil last year. "The potential for packaged coconut water in Asia Pacific is huge, and it's ironic to me that an American brand should be the one to lead the charge for the category here," given segment's deep roots in Asia, noted Shepherd. He'd served as gm for KO in Hong Kong, Taiwan and Mongolia, and also had marketing and innovation roles in S Korea and "Asia Tigers" Hong Kong, Singapore and Taiwan. Shepherd appointment comes just as Jeff Popkin departed as prexy in home market (BBI, Apr 24).  

Is that colonial refresher, switchel, ready to reach a broader audience than Brooklyn hipsters and New England culinary antiquarians? CideRoad is ready to find out. After production delay that pushed planned launch last Jun back to fall, Mendham, NJ-based organic brand launched by entrepreneur Kevin Duffy and his wife Hilary finally is building up head of steam, signing DSD operator in NY and cracking several major chains on both coasts.

Positioned as "America's Original Thirst Quencher," CideRoad is formulated from organic Vermont maple syrup, organic apple cider vinegar and organic ginger juice, in Original Maple & Ginger, Cherry and Blueberry flavors (BBI, May 19). It's offered in proprietary straight-wall 14-oz glass bottle with embossed banding in form of tire tracks above and below label, which offers black-and-white, antique-y feel. So far the Duffys have been financing venture themselves and via friends and family, with single outside investor about to be joined by couple more in coming round.

CideRoad brand name is supposed to offer an aspirational lift by evoking off-the-beaten-path adventure of sort that led Duffys to discover style on New England foray. So far, branding seems to work, Kevin believes, tho labels and POS are being tweaked to slightly separate "Cide" and "Road" to insure that consumers don't mistake it for entry in booming cider market. To reach affluent foodie demo, brand ties into such events as Land Rover Muddy Chef Challenge, held in Lime Rock Park in Conn, with its "glamping" (glamorous camping) crowd.

With production at copacker Wayne County in NJ finally under way, co has been working with Cascadia Managing Brands to build distribution and win retail accounts. It just switched on Whole Foods' Northeast div, and has been riding Fresh Market presence south along Atlantic seaboard and west as far as Ky. On West Coast, Ralph's chain in SoCal and Fred Meyer in Pac NW both come aboard next week, as likely first switchel available in those markets. Those chains should help win distributors out west. Brand currently moves mainly thru broadliners such as UNFI (which just opened 5 East Coast warehouses to CideRoad), DPI and, imminently, Kehe in Bay Area. It just added DSD house Abraham Food in NY to deepen penetration in core market. It's only local rival seems to be homespun Brooklyn player Up Mountain, packed in jars and hitting small natural-food base.

Tho switchel has been trending as an ingredient in creative cocktails, CideRoad isn't working that circuit aggressively yet - tho there's ample precedent for item as mixer. In his historical research, Duffy found editorial from 18th century Philadelphia paper lambasting John Adams and Thomas Jefferson for spiking switchel bowl placed next to snuff bowl at Continental Congress. Rather, CideRoad is aiming this spring and summer at such venues as golf courses, as novel 19th hole alternative to Arnold Palmers and iced tea.

How to Drive Your Design Agency to Attain Excellence Prepping proprietary bottle that sports embossed tire tracks, design agency wanted to know what, exactly, Range Rover tracks look like. No need to go online or call a dealership: Kevin splashed paint on a tire on his older-model Rover, started up engine and rolled tire over a sheet of paper, which he faxed to agency.  

Coca-Cola Enterprises said net sales in first qtr dropped 13% to $1.6 bil, more moderate -4% when impact of currency is excluded, despite benefit of 4 extra selling days. Operating income declined 14% to $158 mil. Volume grew 8.5% in UK but slipped 3.5% in rest of Europe. Noncarbs rose mid-single-digits but Coke trademark was flat. Net pricing per case declined 2% but pain was eased by reduction in cost of sales of 2%. CCE ceo John Brock said co is moving toward more unified marketing among Coke trademarks, seguing from "Open happiness" theme to "Choose happiness" to herald choice of Coke, Coke Light, Coke Zero and stevia-sweetened Coke Life, now intro'd into all its territories. Finley low-cal sparkling citrus line has now expanded to Sweden from Belgium and France, and Smartwater is expanding across UK. And CCE is taking over distribution of Monster Energy in Norway, last piece of territory where it didn't have that responsibility. "A very much in-line quarter by CCE with modest volume growth in the quarter and ongoing softness at retail pressuring pricing," assessed RBC's Nik Modi . . . Kraft grew its bev div by 4.2% to $702 mil in net revenues in co's first qtr, but its operating income dipped 6.1% to $123 mil on higher coffee commodity costs. Revenues boost came from combo of favorable volume/mix and higher net pricing, co said, echoing favorable reports from Coke, Pepsi and DPS last week. Part of the volume boost came from launch of McCafé coffee, which co brass hopes will fill void left by departed Starbucks, and increased shipments of Capri Sun ahead of planned price increase. That was partly offset by lower shipments of powdered bevs in category that's been weak overall. The net pricing increases mainly came on coffee side, riding price increases taken in prior qtrs in roast and ground coffee.