LA-based Reed's Inc, which purchased Sonoma Sparklers brand and production equipment back in 09, has landed item at Rite Aid stores that makes it available exclusively in 3 flavors at all 4,500+ units. The 16-oz bottles will be available in Sparkling Organic Raspberry, Sparkling Organic Lemonade and Sparkling Organic Peach. Note that Sonoma Sparklers purchase yielded capability for key part of co's push into private-label segment, offering stopper-topped items that challenge European imports, particularly at holiday season . . . Mix1 protein bevs have been picked up by Sprouts Farmers Markets chain for its stores in Ala, Ariz, Colo, Ga, Kan, Missouri, NM, Nev, Okla, Tex and Utah . . . Cleveland-based Avitae USA said its caffeinated bottled water line has been accepted by Jewel-Osco's 185 stores in Chicago and surrounding region. Retailer has accepted all 3 caffeine levels offered by Avitae, which is also debuting first flavored versions.  

Craft brewer American Brewing Co, based in Edmonds, Wash, has acquired Bucha kombucha brand for $260K in cash, $140K note and $500K in American Brewing restricted shares. Acquiring co is retaining tech dir Frank Commanday to maintain proprietary flavor production method, but Bucha ceo Ron Lloyd apparently is moving on. "With this first step, we solidify our diversification into the full beverage industry," said Neil Fallon, ceo of 5-year-old American Brewing.  

Kool-Aid is positioning itself as lower-calorie alternative to conventional CSDs with launch of summer-oriented Kool-Aid Easy Mix extension, liquid bev mix that breaks in Tropical Punch, Cherry and Grape flavors priced at $2.99 per 18.2-oz bottle. That translates to 6 quarts of liquid, at about half sugar level of CSDs, Kraft unit contends. Launch is backed by TV campaign featuring Kool-Aid Man mascot shouting "Oh yeah!" catchphrase. Launch was response to consumers' request for "easy-to-make product that would offer less sugar than leading regular sodas and still be available at a great value," said sr brand mgr Dennis Wu . . . SF-based Project Juice has launched chia-based seasonal blend, Strawberry Chia, in formula that also includes lime and raw agave. "We chose strawberries since this is the beginning of their growing season in California, and we have been wanting to develop a juice with chia seeds for some time," said cofounder and new product chief Lori Kenyon Farley. Line is breaking next week both online and in expanded array of retail stores following merger with Irvine, Calif-based rival Ritual Wellness.  

Soda consumption decreased significantly among teens in New York City in 2013, according to latest Youth Risk Behavior Study from Center for Disease Control and Prevention. Just 15.7% of NYC teens said they drank a soda in previous week in 2013, down from 20.9% in 2011, 22% in 09 and 23.5% in 07, per CDC. Nearly one-third of NYC teens said they abstained entirely from sodas in prior week. That's up from 26% in 2011. Those results led NY Post to wonder whether former NY Mayor Mike Bloomberg's failed attempts to push thru soda taxes and size limits to reduce consumption may have still "won in the court of public opinion." Proposed soda ban "clearly changed behavior. It discouraged people from drinking soda," argued ex-Deputy Mayor Howard Wolfson.  

Daily Greens, pushing hard to become ubiquitous cold-pressed brand in wake of $3 mil investment from WhiteWave Foods, is ready to install first HPP production unit at reconfiguring base in E Austin, Tex, even as it's recruited sales/marketing chief from natural foods realm and upgraded distribution in NY to Dora's Naturals.

It makes for frantic spurt of activity, following Fancy Food and Expo West shows in which co displayed broad array of sublines - including hempmilks and new kids line called Half Pint - in segment that itself has moved into breakneck sprint as players like Evolution Fresh, BluePrint and Suja engage in landgrab for retail space. BBI arrived for visit with founder/ceo Shauna Martin yesterday during weeklong period when production equipment had been yanked out and plant is undertaking complete makeover and expansion, upgrading interior surfaces in order to obtain SQF certification and prepping for arrival of co's first high-pressure processing (HPP) unit. (This morning Shauna was headed to NY to kick off new NY distributor, Dora's, after initial run in area with smaller Gourmet Guru - BBI, Apr 3.) Of key HPP equipment suppliers Hiperbaric and Avure, Daily Greens has opted for Avure, on grounds that all Daily Greens' 3d-party tollers in Tex already employ Avure units, making for base of expertise and spare-part swapping. Small Avure 100 unit can process 10 mil lbs annually, per Avure's Web site; at Daily Greens, space has been laid out to accept 2d unit soon, too.

On staffing front, Daily Greens continues to build senior staff, this week adding natural foods vet Steve Gollob, a former Chocolove exec, as vp of sales and marketing. Martin's key biz partner, Phillip Page, brings background in logistics and serves as prexy/cfo to Martin's ceo. Co also has established first field marketing force, installing staffers in NY, Chicago, LA and SF. Founder Martin's also found time to write book, Daily Greens 4 Day Cleanse, that's being published Jun 1, with forward by neuroscientist and Big Bang Theory co-star Mayim Bialik, who's been tweeting word of book and brand to her followers.

Co is based in massive East Austin complex once occupied by US Foodservice, within area that's beginning to burgeon on foodie and cultural side. Daily Greens originally chose site because its core produce supplier, Brothers Produce, is based there. Current expansion will double Daily Greens' portion of space from 5K square feet to 10K, on way to occupying 15K in near future, Shauna said. To maximize refrigerated portion of building footprint, Daily Greens has converted loading dock area to offices; unrefrigerated front of building already sports co's juice bar, a brand-building and sales vehicle that also serves as point from which to close out code-expiring items from retailers (on day of visit, it was offering buy-one, get-one on Vitality sku). Co will step up activities at store as complex's landlord proceeds with plans to make it more of a destination, adding rock-climbing gym and restaurant to such current tenants as cider maker Austin Eastciders and Ground Floor Theatre. Perimeter of complex is being wrapped with outdoor deck that, once it reaches Daily Greens' space, will offer expansion area for juice bar. Tucked into complex is disused wooden train station that's used by Daily Greens and Austin Eastciders for parties for staff and for trade partners. Tho boasting quality refrigeration equipment, US Foodservice complex had been so little updated that its 1960s-era wood-paneled offices made it appealing set for portion of recent movie on JFK assassination, Parkland.

WhiteWave Partnership Grew Out of Highland Park Connections; Sourcing Starting from Earthbound Farms Growing Daily Greens now takes all of Brother's organic produce, helping its partner to expand as well, in process becoming a top Whole Foods supplier. Now, with WhiteWave $3 mil investment (BBI, Jan 13), Daily Greens also has begun sourcing some produce from WhiteWave's Earthbound Farms unit, partnership that should help Earthbound weather ups and downs of supply-and-demand cycle. Discussing connection to WhiteWave Foods, recently spun off from Dean Foods, Martin noted that investment didn't result from any formal capital-raising process. Rather, prexy Page, who commutes from Dallas, brought in Dallas-area angel investors, one of whom knew WhiteWave people; many of group reside in city's Highland Park area and mingle socially.

As Retail Footprint Expands, Half Pint May Prove Entry Point for New Consumers By now brand has expanded to range of general grocers including Fred Meyer, QFC, King Sooper, Harris Teeter and Dierberg's, with Ralphs on horizon at next reset. Tho Wegmans, Sprouts and Publix remain key targets for this year, "we're now in all the right stores," Shauna noted. Next task is to build consumer loyalty levels in newer regions to level enjoyed in core Tex market, she said. Tho nominally set as kid-oriented subline (with 10 cents per bottle going to Whole Foods' Whole Kids Foundation), Half Pint has been given more neutral name so as to also serve as entry point for some adults, given $3.99 price and fruit-forward, smoothie-style formulation. It takes place as "lowest price point in premium juice set," she said. Half Pint is year-long exclusive offering at Whole Foods, which has rolled it out to all regions. But co also is experimenting with other sizes with appealing price points, as with 12-oz bottle at $5.99 that's been picked up by Kroger and is available to other retailers. Among other recent innovations, chia-based line has performed well in core Tex market and has been picked up by 2 Whole Foods regions. Aside from Dora's, which handles all channels in NY metro, brand has been capably represented by broadliner UNFI, which now is stepping up activities on foodservice front, Shauna said. Multiserve versions of some entries may be next on horizon, Martin indicated.

Interesting profile by CNN Money last night of healthy-energy brand called Mati launched by Duke Univ student that beat out 11 tech rivals to win Google Demo Day contest. Along way, 1 of Demo Day judges, AOL cofounder Steve Case, ponied up $100K personal investment in co. Mati was launched by Tatiana Birgisson, now 25, when she was in senior year at Duke Univ, brewing up batch of black tea leaves and fruit, and peddling 5-gal kegs for $55 to Raleigh-area offices. Once she graduated, she segued to space at local accelerator American Underground, expanding by now to 30 Whole Foods stores in Southeast. Brand did $100K in sales last year on profitable basis, Birgisson claims. After getting nod from 3-judge panel before audience of 100+ potential investors, Birgisson called her accomplishment a victory for those who see room for innovation outside tech realm. She's "relieved that they recognized that tech isn't the only place where innovation is happening," Tatiana said. "They all agreed that the food industry is ripe for disruption and Mati is a great example of it."

Brand incubator LA Libations is restaging its canned Arriba Horchata Energy to move it beyond energy-only occasions, while also helping to develop intriguing glass-bottle probiotic soda called Obi devised by pair of youthful entrepreneurs from Calif's Bay Area.

Arriba and Obi were among brands exhibited by LAL, cofounded by trio of former Coke execs, at recent Natural Products Expo West. As noted in earlier coverage of show, team is also working with Core Natural Water, latest project of Fuze and Body Armor creator Lance Collins (BBI, Mar 13), with Chia/Vie Infusions (BBI, Mar 9) and with Minta mint-based bevs (BBI, Mar 4). Working show was recent LAL staff addition, former CCE and Popchips exec Todd Klug, running food side of biz, Heritage Streetfood, including Mi Elote line of chips and salsa. Here's rundown of LAL's activities on Arriba and Obi:

Arriba Expands into Non-Energy Occasions; Plans Fountain Entry Arriba Energy Horchata, which launched a year ago in 7-Eleven c-store chain as fusion of agua fresca flavor popular among Latinos with energy component, is being expanded beyond energy mandate to become "fully developed line" able to sate broader array of consumption occasions, said LA Libations cofounder Dino Sarti. So original Energy Horchata entry no longer is core sku: that will now be Arriba Original, dropping energy component. Also in mix will be 2 other new flavors: Coffee, which does include energy blend (coming in at 80 mg of caffeine) and Chocolate, targeting younger consumer cohort without energy blend (it contains hint of cinnamon, in keeping with horchata identity of line). Brand's 11-oz slim cans will be getting facelift to offer more personality within noisy c-store environment: LAL will appropriate Mexican skull icon (wearing Mohawk haircut and shades) that's employed in its Mi Elote chips and salsas for front panel of can, while surrounding product at retail with colorful Dia de los Muertos-inspired POS. And co is entering fountain side of biz too, with 3 non-energy flavors: core Original flavor, plus agua fresca staples Tamarindo and Jamaica (hibiscus). Tho it launched as 7-Eleven exclusive, by now Arriba has broadened retail availability to include such other c-store chains as Pantry and am/pm, as well as grocers like Kroger, Dino said.

Obi Priobiotic Soda Offers More Robust Benefit but Fewer Calories than Many Kombuchas Branded as Pr(obi)otic Soda, Obi comes as another twist in burgeoning probiotic segment that's seeing various kombucha and non-kombucha entries hitting market, sometimes in novel hybrid forms. Brand was created over past 6 years by Ben Goodwin, who'd did spell at Kombucha Botanica along way, and David Lester; partners were seeking to offer more approachable alternative to kombucha. (Recall that more established KeVita brand took similar path - before entering kombucha realm, too, more recently.) Refrigerated line with 6-month shelf life offers 20 different strains of probiotic via proprietary water/kefir culture, and comes in at 10-20 calories per 12-oz longneck bottle, thanks to stevia sweetener. Idea is to offer twice probiotic strength of kombucha, but with fewer calories, Ben explained at LAL booth. Initial flavor range includes Tart Cherry Vanilla Bean, Organic Root Beer, Valencia Orange Grapefruit and Meyer Lemon & Lime. Label on 12-oz longneck clear-glass bottle employs pointillist renderings of fruit to play up probiotic content. Brand is priced at $2.99, promoted at $2.49. First production run was last Oct. Tho co is exploring DSD, it's working so far via broadliners like UNFI and DPI, which is supporting Kroger's West Coast stores.  

Dealing with thorny hurdle to widespread adoption of kombucha, year-old Kombucha Brewers Int'l trade assn has sought to regularize the way in which participants insure compliance with alc regs thru adoption of handling and testing protocols that yield accurate and repeatable test results. The protocols resulted from collaboration between KBI member Live Kombucha Soda of Austin, Tex, and Cornerstone Labs, which is certified by regulator TTB. They aim to assure precise alcohol-level readings in segment where, unlike most beers and other TTB-regulated items, difference of a percentage point can spell difference between NA kombucha that's safely below 0.5% legal limit and one that's non-compliant, said KBI prexy Hannah Crum. More-lax testing procedures often result in false positives, eroding confidence in segment that 5 years ago suffered broad recall when many brands marketed as NA were found to contain excessive alc levels. "For most testing a margin of error of +/- 1% would be considered reasonable but in the case of kombucha we have to get it exactly right and that's what these sample handling protocols ensure," said Cornerstone prexy Sam LaBonia. Hannah noted that, while kombucha producers generally have used same gas chromatography testing methods of brewers and other TTB-compliant segments, how samples are handled have often spelled difference in accurate and inaccurate readings.  

NY State atty general Eric Schneiderman appears to be building momentum behind his efforts to toughen federal scrutiny of the supplement biz - despite continuing doubt that the allegedly adulterated supplements he's used as poster children for sector's laxity truly were out of compliance.

In latest move, Schneiderman has recruited AGs from 13 other states to co-sign letter to Congress demanding "comprehensive inquiry" into supplements biz and positing idea of enhancing FDA's authority over segment, as first reported by NY Daily News. Move came as furor seemed to be erupting within supplements industry over move earlier in week by 1 of 4 targeted retailers in NY, GNC, to settle complaint with promise to intensify testing procedures. This was despite GNC's continued insistence that items pulled from GNC shelves and tested by Schneiderman's office were fully compliant with current regs and contained proper amount of all listed ingredients. GNC's decision has mystified Schneiderman's critics, including some experts who've long been critics of supplement biz, who say DNA barcode analysis used by AG, and now added to GNC protocol, is unreliable, and who also note that AG continues to resist calls to release actual test results of products pulled from GNC, Target, Walmart and Walgreens stores on grounds that it's continuing investigation. Why would GNC have settled, then? Nutraingredients.com newsletter quotes several supplement execs who suggest that, as publicly traded co that's heavily reliant on supplement sales, GNC took route of expediency, despite risk that its move will embolden industry's critics. No word so far on status of other 3 retailers targeted by Schneiderman. He teamed with Indiana AG Eric Zoeller and dozen other state AGs to write letter addressed to senators and congressmen involved in commerce and regulatory affairs.

"This is just harassment at this point," Dan Fabricant, former FDA official who now leads supplement lobbying group Natural Products Alliance, told Nutraingredients. "Two months ago this guy was saying there was this huge public health problem. Now he has done a 180 and has allowed those same products back onto the shelf (via GNC settlement) that he was saying were so dangerous. How much credibility does this guy still have?"

Enough, apparently, to sway such opinion leaders as NY Times editorial writers, who're backing Schneiderman's calls for action. Editorial on Wed accepts AG's contention that many of tested supplements didn't contain any of herbs listed on labels but did contain potentially dangerous contaminants or allergens. "Now that the perils of lax oversight have become inescapably clear, Congress ought to grant the FDA enhanced powers to regulate the industry and remove products that are fraudulently marketed or potentially dangerous," the Times urged. That said, it's unclear whether initiative will garner much traction in a Congress that's deadlocked on all manner of other issues and has had tenacious defenders of supplement biz from states like Utah, where cos are based.  

Dave Peacock, who during his reign at Anheuser-Busch ushered in Monster Energy and other non-alc brands, is intensifying his focus on NAs these days. After dipping his toe in water as Jamba Juice franchisee with 5 locations in St Louis, Dave has taken much deeper plunge, adding 100 stores in Calif via his Vitaligent LLC. The deal for $36 mil in cash furthers Jamba Inc's efforts to shed stores in favor of what it calls an "asset-light" model. The refranchising deal puts into Vitaligent's hands stores in SF, Sacramento and San Diego. Jamba continues to seek outside owners for another 14 Calif locations. Vitaligent includes among its principals Dean VandeKamp, former partner at Ernest & Young. A rising star at A-B before the co's purchase by the Brazilians behind AmBev, Peacock ushered in a move to diversify distributors' portfolios via such allied NA brands as Monster, Icelandic Glacial and Borba Skin Balance Water while establishing Ninth Street Beverage as internal incubator, tho co later reversed course and decided to pursue closer-in opportunities in arenas like craft beer and cider. A-B still is equity holder in Icelandic Glacial, which moves thru its distribution system, and Monster moves thru about half of A-B system tho it's about to transition to Coke.