CSD volume increased 2.1% last 4 wks thru Apr 12 in IRI all-channel data reported by Morgan Stanley's Dara Mohsenian. That's up from 1.4% decline for CSDs over last 12 wks as timing of Easter holiday this yr likely boosted gains. There was more discounting in latest 4 wks with avg price up 2.1%, down from +3.4% previous 12 wks. Regular CSDs were up 4.1% while diet brands were off 2.4% last 4 wks, about half diet decline for 12 wks. Easter shift lifted Coca-Cola CSD volume from 2% decline for 12 wks to 3.6% volume gain last 4 wks. Avg KO prices were up 2.8% vs +4.8% previous 12 wks. PepsiCo CSD volume came in flat for 4 wks vs 1.7% drop for 12 wks. Avg prices were up 1.7%, down from 2.6% for 12 wks. Dr Pepper Snapple CSD volume was up 5% for 4 wks, up from +1.2% for 12 wks. Avg price was up just 0.5% latest month. Easter shift didn't help private label CSDs much as they declined 4.3% last 4 wks compared to 4.9% drop for 12 wks.

Monster, Red Bull Outperform Energy drinks volume was up 9% with avg 2.5% price increase, in IRI all-channel last 4 wks. That's up from 8% and 2.1% increases previous 12 wks. Red Bull volume was up 13.6% last 4 wks (up from +10.2% for 12 wks) with avg 4.5% price increase. Monster outperformed category as well with 11.2% volume gain but that was slower than its gain pace (+11.5%) over previous 12 wks. MNST avg prices were down 0.5% for 4 wks and 0.7% last 12 wks. Rockstar volume (+6.2%) and pricing (+3%) trends improved in last 4 wks. KO energy brands (NOS, Full Throttle) decelerated a bit to +13.5% gain last 4 wks with avg 2.5% price increase. PepsiCo (AMP) trends were worse in most recent data, down 12.3% for 4 wks vs -9.3% previous 12 wks. Avg prices were up to +3.6%.

Gatorade Gains; Solid Pricing Sports drinks segment volume rose 3% (vs +2.8% previous 12 wks) with avg prices up a healthy 5.9% in all-channel data last 4 wks. PEP's Gatorade drove growth with a 6.7% volume gain on avg 4.1% price bump last 4 wks. KO's Powerade volume declined 6.5% on solid 6.6% avg price increase for 4 wks. Pricing remains high on private-label sports drinks, up avg 9.1% but volume still way off, down 23.3% last 4 wks.

Lower Prices Lift PEP, NWNA Bottled water volume had solid 9.4% gain in all-channel data last 4 wks with avg price increase of 0.9%. That's in line with category prices over previous 12 wks. Nestle Waters volume improved to +7.7% last 4 wks as avg price declined slightly to -0.3%. PepsiCo volume trends improved to +11.9% with avg price drop of 3.4% for 4 wks. Coca-Cola volume gain slowed to +8.2% ( vs +9.6% for 12 wks) as its avg price increased to +2.1% last 4 wks. Private-label waters improved to 11% gain last 4 wks on small (+0.6%) price increase.  

Burgeoning HPP juice sector has suffered small casualty, as Seattle-based Vital Juice closed up shop and is seeking a buyer. Brand launched by Microsoft millionaire Ed Balassanian was proceeding with strategy of opening so-called micro-juiceries in key metros in order to minimize shipping time and garner coveted local designation at retailers like Whole Foods. But a few weeks ago it backed off plan as too cumbersome, and now it's thrown in towel altogether. Speaking to BevNet, which broke news, Balassanian cited effect on small player of proliferating brands, falling prices, copackers entering space and scarcity of quality produce. He claimed to be in talks with potential acquirers including "very large national beverage brand that does not have a cold-pressed juice story right now" . . . Looking to reposition food offerings that have long lacked the panache of its home appliances and other categories, Target has hired PetSmart exec Anne Dament as svp merchandiser, just weeks after retailer vowed to overhaul food assortment and operations. Dament, who's familiar with grocery format from earlier stints at Supervalu and Safeway, initially will focus efforts on 6 key categories: better-for-you snacks, coffee and tea, premium sauces and oils, specialty candy, wine and craft beer, and yogurt and granola. Mandate also includes expansion of natural, organic, locally grown and gluten-free choices. New items are due next year . . . Having decided soda is no longer where it wants to stake identity, SodaStream is continuing to broaden offering, now devising cloud-connected cocktail unit called SodaStream Mix, tech site Engadget reported. Israeli-based co has teamed with design partner Yves Behar to create unit that can adjust carbonation level for density levels of liquids used in various cocktails, whose recipes can be accessed via touch screen.  

Pair of self-styled "labs" in Chicago and NY are in hunt for mad-scientist bev creators. Details:

Liquid Asset Brands Sets $50 Mil to Fund Early-Stage Bevs Chicago-based entrepreneur Marc Bushala, fresh off flipping his Angel's Share bourbon co to Bacardi, has launched $50 mil bev development fund, Liquid Asset Brands (LAB) Innovation Fund I, that aims to make equity investments in $3-10 mil range in early-stage bevcos. First deals may be announced soon. Bushala, who invests via entity called MAB Capital Management, has enlisted coterie of industry vets including former Beam ceo Tom Flocco and Mark Montgomery, who helped country music star Kenny Chesney get Blue Chair Bay rum off ground. Tho execs' experience seems tilted toward spirits side, rep assured BBI that "fund will not be exclusive to alcoholic beverages" but will also eye NA bevs, digital apps and other technology plays, and "infrastructure," which suggests distribution plays. LAB also plans to create its own brands and will open craft distillery in downtown Chicago this year. Co says it's in discussions with several strategic partners "through the entire beverage value chain, from production and bottling to sale and distribution." Contact info at not-quite-ready Web site, LiquidAssetBrands.com.

Consumer Tech Vets at NoHo Labs in Hunt for Food/Bev Concepts to Back Now-launching incubator called NoHo Labs is aiming to build "next generation of category-defining consumer businesses." Led by Jed Cairo out of NY's NoHo (north of Houston St) nabe, incubator says it's funded by consumer and consumer-tech entrepreneurs and investors with plan to team with entrepreneurs on launching 1 or 2 businesses per year. Deck that it's circulating lists food/bev, fragmented local service industries, health & wellness, and personal care as targeted segments. Cairo declined to say how much $$ is in initial warchest nor ID key participants, some of whom haven't yet given notice to current employers. Soft-spoken Cairo, 29, is Wharton grad who worked at KKR, then BeaconLight Capital, which allowed him to incubate concepts on side. He served as founder/chmn of Minibar Delivery, home delivery service that brings beer, wine or spirits to consumer's door within an hour, and Bright Batch LLC, maker of healthier snacks targeting air travelers and other nutrition-deprived consumers. NoHo's deck promises "ruthless" capital mgmt policy that provides adequate resources for successful initiatives but pulls plug on losers if they don't prove "unit economics, value proposition and ability to win" within 12 months and $2-3 mil of capital. Web site launches in next week or so at NoHo.io.  

The GRAS process, long a regulatory safe harbor for those formulating foods and bevs, has come under attack from a group of 4 orgs who claim mfrs are gaming system in a way that undermines consumer safety. GRAS, of course, refers to ingredients that Food & Drug Administration views as "generally recognized as safe" and therefore not requiring pre-review before they can be employed in items labeled as foods.

Regulatory comment demanding change was submitted this week by Center for Science in the Public Interest, Consumers Union, Environmental Working Group and Natural Resources Defense Council, at time FDA is moving to publish final rule on GRAS substances by deadline of Aug 2016 as part of consent decree reached with Center for Food Safety, which sued agency last year. Filing contends that GRAS regs violate 1958 law that requires agency to determine whether ingredients are safe before they can be used in food. Tho that law allowed exception for ingredients like vinegar that had long been used in conventional foods, the group contends that FDA has employed illegal program of GRAS determinations by the industry itself, often shielded from public view, for novel food additives and other ingredients that are far from familiar kitchen items. "FDA has let companies completely abuse that limited exemption and hide the use of new food chemicals from regulators and the public," argued CSPI regulatory affairs attorney Laura MacCleery. Latest attack comes as FDA has also come under fire from several state attorney generals for what they contend is lax enforcement of supplements.

One GRAS loophole that's cited is cases where, after FDA expresses misgivings about an ingredient, the mfr may withdraw notification that it's GRAS - only for ingredient to continue to pop up on store shelves anyway. That was case, NRDC argued, with neurotransmitter GABA (gamma-aminobutyric acid) after Japanese mfr withdrew GRAS certification. "While the company told NRDC that it would not market the product for use in food, it continued to use the ingredient in dietary supplements," filing states. "NRDC also identified 5 food products marketed by other companies with GABA as a named ingredient, including bottled tea and nutrition bars." In other cases, trade groups like Flavor & Extract Mfrs Assn have declared as GRAS ingredients about which scientists have raised questions - as with o-phenylphenol, regarded as carcinogen by state of Calif. "It's quite extraordinary for a federal agency to basically subcontract its regulatory work to a trade group designed to protect the business interests of its member companies," gasped CSPI's MacCleery.

Among targets in filing is caffeine, whose use in energy drinks has been a bête noir for CSPI in recent years, tho hearings and workshops convened by gov't have failed to garner momentum for regulatory push. "FDA cannot effectively regulate industry's new and increased uses of caffeine under the current system because it lacks information, such as exposure data, required to make ongoing assessments of safety," regulatory comment argues, revisiting issue.  

Barely a rounding error when ceo Joth Ricci arrived at Stumptown Coffee Roasters back in 2012, cold-brewed coffee is starting to look like sizable bet at Portland, Ore-based roastery and café operator. What started as single retail sku with distinctive stubby-bottle refrigerated entry continues to broaden rapidly, with nitro-infused cans about to hit stores in coming week. It will join packaged array that now includes several milk-including entries packed in pint- and quart-size dairy-style cartons as well as draft array - in regular and nitro formats - that's been expanding rapidly across country, both for on-premise consumption at cafes and corporate cafeterias and for growler fills at Stumptown's cafes. Tho co won't discuss sales $$, Stumptown's overall cold-brewed biz may be approaching $10 mil this year, an educated guess would suggest - even without considering impact of Starbucks' recent move into in-house-produced cold-brew at 2,800 stores (BBI, Mar 16). Tho awareness of cold-brew remains modest and retail ACV low, Ricci says main barrier inhibiting growth at this stage is production capacity, not consumer demand, which is robust and growing.

Latest entry, nitro cold brew, is being offered in 11-oz widget cans sourced from Ball Europe and priced at $4.99, a $1 premium to the $3.99 commanded by core black entry in 10.5-oz stubbies and the dairy-infused entries in 16-oz milk-style cartons. As on beer side, use of nitro dispensing makes for theatrical pour, good head retention and lush mouthfeel. Ricci and vp Matt Lounsburgy, a 12-year Stumptown vet, previewed new line for BBI yesterday from unlabeled cans poured alongside nitro cold-brew that was on draft at Stumptown's elegant café in NY's Greenwich Village. (The cans provided experience close to that of draft version.) The nitro cans will break in all Stumptown's cafes, as well as Whole Foods and New Seasons stores in Southern Calif, and move toward national availability by fall if all goes well.

By now, Stumptown has incorporated cold-brew draft lines, including varying mix of original, single-origin and nitro, at all 10 cafes it operates in Portland, Seattle, NY and LA, most freestanding but a few tucked into lobbies of Ace Hotels. In warm-weather market like LA, draft comprises one-third or more of all cold-brew biz, and nitro about half of that. By now, tho, indie coffee shops are becoming big customer base for Stumptown draft systems. "No new coffee bar opens without a draft system," declared Matt, citing efficient, clean approach and in-store theater, especially for nitro pours. Thus, Brooklyn's Hungry Ghost has taken Stumptown cold-brew draft systems at all 4 locations. Also coming aboard are corporate accounts - not just cutting-edge tech players like Google, which has installed draft system at each of 11 microkitchens at its Chelsea offices in NY, but more mainstream accounts like Verizon. In Pac NW, Nike and Microsoft are among key corporate accounts.

On packaged side, glass stubbies by now have become nationally available at Whole Foods; they and the cartons just got graphics refresh that sacrifices a bit of panache for clearer legibility on shelf. By now, the stubbies are in Safeway, Albertsons, Fred Meyer and QFC stores in Pacific NW, boasting 80% ACV. Within Safeway's 225 regional stores, it's merchandised with kombuchas, fresh juices and other superpremium items, an ideal location, Ricci indicated. Location in cooler next to Starbucks Frappuccino also is effective, he said; perishables section is less ideal location.

Lightly sweetened milk-based items have expanded to include regular and chocolate versions. In addition, seasonal Winter Cheer item that was offered only in Whole Foods' Pac NW region last holiday season will be back as national item at retailer this year.

Cold-brew is finding its way into other realms, too, tho not always conspicuously under Stumptown's brand. Its cold-brew concentrate now goes into custards made at fast-expanding Shake Shack restaurant chain, across country. Stumptown cold-brew has been employed in numerous beer collaborations too, starting several years ago with Six Point in Brooklyn, located not far from co's East Coast roastery in Red Hook, and extending to likes of Sierra Nevada, Elysian Brewing and Capt Lawrence.

At time that rivals are proliferating, Ricci is betting Stumptown will benefit from having cold-brewed as integral part of broader strategy at diversified coffee player - tho he acknowledges that in some underdeveloped Stumptown markets, as in Midwest, there are consumers who profess surprise at learning that co also operates cafes and markets whole-bean coffee. "We're a coffee brand with cold-brew, not a standalone," he emphasizes. "We pull cold-brew into our total go-to-market approach." Lounsbury noted that cold-brew has sometimes helped break ice with retailers who've resisted taking on whole bean coffee, which nonetheless has grown to #5 brand in US despite having ACV hovering close to zero. "We think our coffee program will follow (cold-brew) into mainstream grocery," added Ricci.

Joth readily acknowledges there are lots of imponderables as cold-brew segment develops. How big an impact will Starbucks launch have on awareness? (He expects a great deal.) Will more beer houses be coaxed into adopting refrigerated fleets, both to service their growing rosters of fresh-hopped craft beers and intriguing new refrigerated segments on NA side? (Ricci, who once ran massive Columbia Distributing in Pac NW and is intimately familiar with distribution on both beer and NA side, has been lobbying for them to do so.) He also wonders whether cold-brew players might not find it worthwhile to collaborate on standards for what comprises cold-brew, at a time segment is splintered among refrigerated and shelf-stable players, at varying pH levels depending on process employed.  

Another group of entrepreneurs is tackling forbidding healthier-kids bev segment, with alkaline-water and fruit-juice items sold under Pleasant Kids moniker. That segment, of course, has proved insurmountable challenge to scores of brands over years, given mothers' penchant to opt for low-price Capri Sun and similar brands, despite telling pollsters and focus group moderators that they want something more nutritious.

Inspiration for Pleasant Kids derives from apple farm in Georgia's Blue Ridge Mountains operated by one of partners, Calvin Lewis, prexy/dir of new co, which has bottled potassium-rich apple juice as well as a naturally alkaline spring water that's occasionally found its way to White House. He teamed with finance vet Robert Rico, chmn/ceo, who found himself a single dad with responsibility for his kids' nutrition and realized that spring's perfect pH of 8.0 wasn't offered commercially. So they've launched in 8-oz bottles packed in 24-unit cases priced at $9.95, initially near Rico's Fla base, and have sent tankers of the water to copackers in Central Fla, Midwest and LA to support national launch if launch pans out in initial markets of Miami, NY and LA. To fund launch, Rico is at tail end of $3 mil raise and has acquired publicly traded shell, PLKD, which he will rename Pleasant Kids as fully reporting corporate vehicle for future expansion.

On marketing front, line is backed by endorsement by Dr Karent Sierra, aesthetic dentist in Coral Gables who's won national visibility on Real Housewives of Miami TV show, and by LA celebrity health trainer Christina, who's using brand in her Yoga for Kids program. So far brand has cracked regional accounts such as Ritz-Carlton hotels, entering Ritz Kids program at 85 resorts as hotelier tries to burnish family-friendly credentials, as well as Miami Children's Museum, 7-Eleven stores and Presidente and Price Choice grocers. Assisting on sales push is bev vet Christopher Reynolds. Brand has set slogan "Where healthy begins" and trademarked mascot characters like dog named Sonny and tiger named Bobalu as marketing platform. Info at PleasantKids.com.  

Pushing further into key fitness channel, Celsius Holdings this week has launched its negative-calorie Celsius brand in all 160 corporate-owned locations of Gold's Gym chain. Brand is heralding launch to Gold's Gym members by participating in fitness operator's quarterly 3-day Fit Fest events this month. "We are now in all corporate locations and expect to get most of the franchised group," CELH ceo Gerry David told BBI, adding another 280 potential locations . . . Reed's Inc has filled void in Northern Calif with signing of family-run MillerCoors house Wonderland Distributing in Mt Shasta area for its Reed's and Virgil's soda lines.  

Nestle Waters North America continues aggressive US push, adding 7 production lines this year at investment as high as $200 mil, per Wall Street Jnl report. That amounts to as much as co has added in past 5 years combined, story notes. Key part of growth plan is in surging sparkling segment, which grew 14% last year vs 8% for still waters, ceo Tim Brown told paper. Co is adding Green Apple flavor in Perrier line and Cherry Lemon for Poland Spring. That said, challenges abound as co aims to boost margins that, at 9.7%, are lowest in Nestle SA empire, where overall margin is 15.3% . . . Elsewhere in Swiss-based Nestle, co has said it will cut added sugar in its Nesquik items as part of broader move to reduce sugar and salt across its product lines. Revamped powders will contain 10.6 g of sugar per 2 tbspn, down 15% for Chocolate flavor and 27% for Strawberry flavor, and drop artificial colors and flavors. On RTD side, popular bottled line will contain similar 10.6 g of added sugar, as well as 22 g of lactose from milk content. Move drew muted praise from health advocates like Center for Science in Public Interest. "It's a nice step in the right direction, but it's not a huge victory for nutrition, exec dir Michael Jacobson told Reuters, urging parents to offer water, skim milk or low-fat milk to their kids.  

Coca-Cola is bringing back its very successful "Share a Coke" campaign once again this summer, with "more names, more packages and more ways to share," announced co. Campaign, that had consumers searching out bottles with their name on the iconic Coke package, will be much bigger in second go-round by including "1,000 of America's most popular names," vs 250 last summer. Coca-Cola is making Share a Coke even more user-friendly by saving folks time who don't want to scour the aisles searching for names by letting them order personalized names on either singles or 6-packs of 8-oz glass bottles online at ShareaCoke.com. Names will appear on brand Coke as well as Diet Coke and Coke Zero, and this yr, aluminum bottles and "emoticon-sporting" mini-cans will also be included. "Last year we saw how excited people were when they found a Coke with their name or their friend's name. People shared countless images of their discoveries online, sometimes before they even left the store," noted Jennifer Healan, group dir of integrated mkting for Coca-Cola N America. One brand expert told USA Today that Coke definitely got this promo right. "This fits perfectly with young people's desire both to be unique and be part of the crowd," said brand consultant Tracey Riese. "Personalizing Coke - making an iconic brand all about us - is sort of the ultimate selfie." Last year, with boost from Share a Coke, KO "saw its largest-ever year-over-year growth in the 20-ounce package - more than 19%," noted paper. That impulse purchase is uncommonly lucrative in CSDs, too, of course.  

With its production capability up to the task now, King Juice has begun 2015 with momentum behind its Calypso Lemonade line in chains, rolling out thru all Kroger banners, entering several Albertsons divs and undertaking 1st promo periods behind its single bottles at Walmart.

Biggest retail coup has been Kroger, which has committed to carrying 6 lemonade flavors throughout all its divs, including 2 facings of each on warm shelves and several flavors in grab-and-go cold boxes, too, said Jeff Outlaw, longtime consultant to brand who stepped up to prexy job a year ago. That amounts to 20K+ facings for brand chain-wide. Rollout commenced in mid-Mar after successful year-and-a-half test of 2 sku's in some stores in South. It's servicing all but 3 of Kroger's 19 divs via DSD distribution, Jeff said. Co has brought on Cincinnati-based administrative broker to insure no slipups in servicing Cincy-based grocery giant. Rollout doesn't include popular Limeade subline nor 4-year-old Teamonade subline, a lower priority this year, partly because many DSD houses operating within DPS system are unable to pick it up because of conflict with Snapple tea brand. "We'll focus on less-controversial initiatives," Outlaw allowed.

Among other retail wins, Calypso has opened 3 divs within Albertsons chains, including Dallas unit, totaling 300+ stores, Jeff said. Also loaded with potential is move by Walmart to step up activity behind brand, available nationally in chain since 2012.

As reported, delays in bringing on 3d production line constrained Calypso's growth in 2014, with sales coming in at 3.85 mil 12-unit cases, shy of 4-5 mil target co had hoped to reach a year earlier. That crucial 3d production line was finally optimized by Q1 2013 and has been humming since then, Outlaw indicated. Recall that Calypso owner King Juice's stock in trade is as copacker operating out of Milwaukee. Calypso isn't entirely home free on production side, tho: it's suffered production delay on 12-packs of 15.2-oz cans at outside copacker, pushing launch back from spring to mid-summer. Cans offer way to crack other occasions than core glass bottles can, as well as appealing multipack option for retailers; if format is embraced, it's possible King will install its own can line to bring that production in-house, too.

Pockets of growth include New England, where Polar has doubled biz every month despite bad weather there, helping bring on such key chains as Shaw's and Stop & Shop. After brand moved thru series of wholesalers in NYC, latest one aboard, Preferred, has surpassed expectations, Jeff said. Fairway gourmet chain has come aboard in that territory. Outlaw also expects to benefit from switch from Miller house Bonanza in Las Vegas to Bud house Nevada Beverage. Other key distributors include Haralambos, Calypso's biggest, in LA basin, and Lenore in San Diego, fastest-growing off modest base.

To better support robust DSD system, co has added field sales staff in Northern Calif, buttressing team already in place in SoCal, as well as Pac NW and Ga/Carolinas, bringing total close to 20. That's allowed co reduce geographic territory worked by existing staffers from 6-7 states to more manageable 2-3 states. Co has also begun to push harder on marketing front after relying on word of mouth for brand's decade-plus life. Under vp marketing & strategic development Andy Sands, DrinkCalypso.com Web site has been professionalized, adding such features as recipes section that encourages consumers to access and swap combos with spirits and other foods/bevs.