Body Armor, new-generation sports drink that's signed its share of professional athletes since its launch nearly 4 years ago, has now recruited its first team, the LA Angels, in brand's launch market. As official sports drink of Angels, brand will be dispensed in both home and visitors' dugouts, displacing incumbent Gatorade, thanks to intro made by Body Armor investor and endorser Mike Trout, the Angels' centerfielder. "We got it into the clubhouse last year and all the guys loved it," Trout told Wall St Jnl. "I brought it to the Angels' attention and said, 'Let's try to get this thing in the dugout,' and they came through with it." Noted former Glaceau exec Mike Repole, who's running Body Armor: "Athletes think a lot differently today than they did 10 years ago. I don't think that athletes want to be told what to do and forced what to do drink." Mike told Jnl that co anticipates doing $65 mil in retail sales, up 160% from 2014 sales level, which implies co tallied sales to distribs last year in $10-15 mil range.  

While it juggles complex array of refrigerated and shelf-stable bev brands, NY and NJ house Dora's Naturals has quietly become one of nation's biggest distributors of bevs produced via high-pressure processing (HPP) - and it's leaping into production end now, too. That's even as affiliate of venerable dairy operator Elmhurst Dairy accumulates array of other cutting-edge brands, often in novel categories like watermelon water and maple water, and builds ties to Anheuser-Busch and Coca-Cola as ally in serving tricky channels outside their core reach.

Recall that 4 years ago Dora's undertook ambitious push to become distributor of broadly popular shelf-stable brands like Marley's Mellow Mood, Xingtea and Calypso Lemonade, only to realize that hitting inner-city bodegas -as brands like those need to do - isn't really in its corporate DNA. So it regrouped, restoring focus to natural and gourmet items, both refrigerated and shelf-stable. Since then, Dora's seems to have built up considerable head of steam within 12-county region it services in NY, NJ and Conn out of warehouse in South Hackensack, NJ. Also in corporate mix are Mountainside Farms, producer of organic, kosher and specialty dairy items up in Catskill Mountains, and Steuben Foods, major aseptic copacker operating out of R&D facility in NY and 400K-sq-ft production site in upstate Elma. Dora's strategy has been guided by vp biz development Chris Psuik, working closely with owner Cyrus Schwartz. BBI sat down this week with Chris to catch up on co's varied new initiatives.

Expanding HPP Portfolio Now Joined by Production Arm Among HPP brands that Dora's carries are expanding Harmless Harvest line of coconut waters, teas and coffees; BluePrint juices and cleanses; WTR MLN WTR watermelon water; and Rawpothecary juices and seed milks. Dora's just picked up Daily Greens, fast-rising HPP brand out of Austin, Tex, which recently added as a key equity investor WhiteWave, a supplier to Dora's on dairy and dairy alternative side. Tho Psuik preferred not to discuss issue, Dora's is believed to have garnered equity in several of smaller brands it carries, including Rawpothecary. Among its refrigerated brands that are don't employ HPP are kombucha kingpin GT's, Mamma Chia chia bevs and snacks, and Sambazon acai drinks. Also in mix are Guayaki yerba mate drinks, Runa guayusa drinks, Argo Tea RTD line and Balance essence waters. Key new addition is pair of shelf-stable, milk-based protein lines recently launched by Organic Valley co-op, a supplier to Dora's on dairy side. On dairy side, co owns Zen soy pudding and Evolve kefir brands, which it distributes throughout Northeast with view to going national as momentum builds.

By now a firm believer in explosive impact of HPP, Dora's is moving to add production capability. It recently installed modest-size Hiperbaric machine as interim unit in the S Hackensack warehouse, with massive Hiperbaric 525 unit due for installation by year-end. Those workhorse units are capable of processing 3,000+ kg per hour, per mfr's Web site. New capability is making Dora's closest HPP provider to NYC, market, where growing # of retailers, most visibly Whole Foods, are placing premium on carrying items that can be claimed to have been produced locally. Dora's is signing up initial clients for small system, building foundation for when it adds the 525 unit. Psuik believes he has compelling message to potential clients: 70 years of production experience at Steuben Foods and dairy operations, stable ownership with Schwartz family and access to Dora's well-honed refrigerated distribution arm in nation's biggest metro. HPP units like Hiperbaric's subject foods and bevs to extremely high pressures to kill bacteria, avoiding need for heat that deadens flavor and undermines nutritional efficacy.

HPP Brand Highlights: Harmless Harvest Coffee Strikes Chord; BluePrint Back on Track On HPP side, Psuik says co remains extremely bullish, and ranks itself among top HPP distributors in East, if not in nation as a whole. Tho mainly associated with coconut water, Harmless Harvest continues to enter new categories, moving from iced tea to cacao to latest, Fair Trade coffee. Coffee line recently broke in Whole Foods in 16-oz bottles, with 8-oz on way, Psuik said. Seasonal Cinnamon Clove entry proved a sleeper and now has become year-round item.

Dora's also remains bullish on BluePrint, which weathered some turbulence after purchase by Hain Celestial that saw its cofounders depart but has since stabilized, restoring innovation focus. It just added 2 more greens sku's, and Hain has made it clear it remains very committed to defending brand vs burgeoning rivals, Psuik noted.

Among other HPP entries, WTR MLN WTR, with seasoned ceo now in place, is establishing identity as new hydration option. Dora's is also exploring other plant waters, with its own entry in maple water niche, Sap on Tap, one of only 2 refrigerated entries, along with rival Happy Tree. Co has worked to understand limitations of HPP for product whose processing is complicated by presence of spores in liquid, working out production and stability kinks with view to relaunching brand soon.

Enters Alcohol Realm with Craft Beer, GT's Subline In recent months Dora's has picked up alc license in NY and NJ, opening doors to its first craft beers - so far, just two, Galaxy from Binghamton, NY, and Voodoo from Meadville, Penn. They're small brands, but enough to get Dora's in game, Psuik argues. Alc license has been valuable on another front too: it allows Dora's to distribute the alcoholic sibling to core GT's Enlightened brand, dubbed Classic. "It took a while" for consumers to understand difference between Classic and Enlightened sublines, but Classic has now become welcome contributor to GT's continued double-digit growth, Chris said.

Partners with A-B on Icelandic Glacial, Coke with Glaceau Brands Distrib lately has also proved flexible partner in hitting voids of brands that are carried in bigger systems. A few weeks ago it picked up duties for Icelandic Glacial in natural channel and non-licensed accounts, a difficult reach for core distributor, Anheuser-Busch's company-owned "branch" operation (BBI Jan 21). More recently, Dora's has picked up distribution duties on Glaceau brands Vitaminwater and Smartwater for Whole Foods, after those brands parted ways with Big Geyser, which had incubated those brands for years (BBI, Mar 2). For bulk of market, Glaceau brands have segued to Coca-Cola Refreshments' red trucks, which typically aren't welcome at Whole Foods. No word yet on whether that relationship may expand to other brands, retailers or channels. As distributor of Odwalla and Simply Orange lines, Dora's has enjoyed ongoing relationship with Coke on refrigerated side.  

Campbell Soup Co, undertaking sweeping reorg to cut costs and accelerate innovation, has reassigned prexy of US retail, Ed Carolan, to svp of integrated global services, where he'll embark on 3-year process of standardizing finance, IT, HR and other functions. Carolan, 46, reports to prexy/ceo Denise Morrison. Running US Retail div, Carolan was responsible for co's $3.6 bil in soup, sauces and bevs (V8) biz, but that div is being dissolved under new org, which groups more promising growth brands like Bolthouse Farms bevs in one group and mature center-store brands like V8 in another.  

Pair of NY brothers with well-established Italian dessert biz in NY are launching luxuriant-tasting chocolate milk called Mama Fusco's Artisanal Low Fat Chocolate Milk. The brothers, Sal and Joe Fusco, operating Delicious Desserts out of small warehouse in Brooklyn's Sunset Park nabe, for 26 years have offered range of frozen desserts to city's restaurateurs, starting with sorbet in natural fruit skin that caught youthful foodie Sal's attention on visit to NJ eatery. When it proved unavailable in NY, he decided to get into dessert biz. Brothers progressively added items like spumoni, tartuffo, tiramisu and cannoli, and caught bev bug a coupla years ago with idea for indulgent chocolate milk brand with richness of artisanal brands like Ronnybrook but shelf-stable profile to support broader distribution, as upgrade on Nestle's ubiquitous Nesquik item. Inspiration was homemade drink their grandmother made in 1960s, when she'd melt Italian chocolate in pot, add light oil and pour combo into milk, Sal recalled. New brand is intended to be "like drinking melted chocolate ice cream without the guilt," Joe explained.

Brothers embarked on extended tour of copacking operations before settling on O-At-Ka co-op in upstate NY, which uses ultrahigh-temp process to yield item with yearlong shelf life. Line is formulated from lowfat milk and 2 types of cacao, with modest amount of organic dried organic cane syrup so as not to obscure taste of chocolate. It's packed in 9.5-oz glass bottle similar to that of Coke's Illy Caffe RTD coffee line. Die-cut label features cow with spots the color of the Italian flag, tho brothers are planning further refinements to label for better shelf presence and legibility. Fuscos take care to insure there's bit of chocolate sediment at bottom of bottle to flag authentic recipe. Item includes 29 g of sugar, including 19 g that naturally occurs from lactose content. Calorie count is 190. SRP initially is $2.99 tho that's being rethought too. And brothers are eyeing dessert-themed flavor extensions. Brand image and some info at MamaFuscos.com.

So far brothers have been edging into selected NY accounts via branded van to get read on how well product proposition works. Early verdict has been encouraging: in about 70 stores, mainly in Brooklyn and Staten Island, brand averages a couple of cases per store per week. Now comes hard thinking about formal distribution and other elements of scaling up.  

Starbucks is looking to latch onto Greek yogurt craze with new line of in-store smoothies that reps collaboration between its Evolution Fresh cold-pressed juice brand and leading yogurt maker Dannon. New line builds on successful earlier test and melds proprietary Greek nonfat yogurt created with Dannon and HPP juice made from ingredients like kale, spinach, carrot, strawberries and mango. It will break in 4,300 Starbucks stores that carry Evolution Fresh juices, in Pac NW, Northern Calif and some grocery locations. Initially offered in Sweet Greens, Strawberry and Mango Carrot flavors, line will command $5.95 per 16-oz portion. Partners will add fruit-and-Greek-yogurt parfaits priced at $3.75 to $4.25.for all of Starbucks' US stores in May, and fruit-on-bottom Greek yogurts, priced at $1.69, in grocery stores nationally this summer.  

Tho it's declaring victory, was NY attorney general all wet on sensational claim that popular supplements carried in retailers like GNC and Walmart didn't actually contain any of their stated active ingredients? That was initial suspicion after several indie experts cast doubt on DNA barcoding method used by AG Eric Schneiderman to conduct test of items pulled from store shelves in state (BBI, Feb 5). Now, one of AG's 4 retailer targets, GNC, says it's "settled" claims via evidence that both internal and 3d-party tests offer "conclusive evidence" that items in question are safe and contained all herbal extracts listed on labels. Hmmm. "In addition, a former senior FDA GMP (good manufacturing practices) expert performed a comprehensive review of GNC's manufacturing processes for the products at issue and found them to be in compliance with all applicable requirements," Pittsburgh co said in statement. "Accordingly, GNC has restored its full assortment of Herbal Plus products to all GNC stores in New York State." AG Schneiderman is still claiming victory in winning enhanced commitment from GNC on testing front, tho it's not clear why, if products at heart of investigation have been fully exonerated. "As part of its commitment to industry leadership, GNC will expand its testing processes deeper into its supply chain by leading ongoing industry efforts to integrate source material traceability standards including DNA barcoding where appropriate (prior to extraction processes) and enhance certain other aspects of its operations to provide consumers even greater confidence in its products," GNC said. No word yet on status of other 3 targets of AG, Walgreens, Walmart and Target.  

Inko's White Tea can claim to be brand that's survived, if not thrived, over past dozen years in brutally competitive iced tea category. Operating on shoestring in recent years under NY-based founder Andy Schamisso, well-regarded natural brand was able to hang onto key shelf space in segment that's become intensely promotional, eking out perhaps $3 mil in annual sales. Now it's up to new owners, led by Chicago-based Coors and Pabst vet Kevin Kotecki, to find more consistent growth path. Their plan: move it dramatically upscale, converting to organic status and raising price while adding personality to brand, now called Inko's Organic White Tea. At same time, they're getting hands around newer acquisition, Blue Budhha ayurvedic drinks, and remain in hunt for other brands that might fit within nascent portfolio.

To develop plan, Kotecki has assembled coterie of colleagues from past gigs. Sales is run by Mike Montee, who worked with Kotecki at Coors and Pabst, while marketing is under wing of Andy Horrow, former Gatorade and Tropicana marketing exec at PepsiCo who worked alongside Kotecki at Mike's Hard Lemonade. "Andy Schamisso created an incredible product, differentiated and on the right side of the health equation," Horrow said in meeting during NY stop last Fri. However, "the brand sold itself a long time. Now it's time to elevate it."

That meant quick move to certified-organic status, and with that higher price point, to move brand out of price-promo fray within nominally premium iced teas, while getting brand away from touting "natural" credentials at time that's become legal liability given lack of formal gov't definition of phrase. Inko's was one of many cos that found itself in crosshairs of plaintiffs bar over claim. It was choice of taking brand up a notch or down a notch, noted Horrow, and clear conclusion was to go up the premium scale.

Team has also revamped label, increasing size of Inko's name, heralding organic status and upgrading "white tea" from descriptor to central part of brand name, in effort to emphasize point of difference vs other tea brands that simply employ white tea within mix of flavor extensions. Higher antioxidant levels offered by white tea have been emphasized, too. To get out of morass of lemon teas, that flavor has been restaged as Honey Lemon ("being the 5th-best lemon tea on the market won't help us," Horrow noted), and team has added Strawberry, popular flavor not represented in tea segment. Among sweetened entries, calories have been reduced a bit to 50.

With cost of goods higher, there was no question pricing had to go up - to $1.89-2.29 price range - and that will require more careful selection of retailers for brand that at one point was available even at Walmart. Best accounts currently are Whole Foods, Rite Aid, Stop & Shop, Jewell, Mariano's and Wegmans. Execs are studying whether DSD might prove good option in some markets, but for now continuing to rely on broadliners like Kehe and UNFI who have proved effective on Inko's. Also in development is marketing programming to finally create a personality for Inko's, likely via mix of digital, social media and radio.

Inko's, recall, was founded a dozen years ago by NY entrepreneur Schamisso, who relinquished reins to buyout group last fall (BBI, Sep 3). Schamisso's right-hand man from founding, Alex Reist, remains in mix managing production and other aspects of biz. Tho out of mix now, Schamisso, like Blue Buddha creator Kris Whalen, retains small equity stake and will participate in any upside created by new ownership team.

As for latest acquisition, Blue Buddha, team is still getting hands around that one, wrestling with scalability issue of artisanally created line without much unity in formula among its 4 flavors. "There's a bigger idea than what's in each individual bottle," said Andy, so challenge will be to simplify premise without dumbing it down. Ingredient bill is being scrutinized with eye to shedding ingredients that don't do much to enhance ayurvedic cred of line but add cost and complexity. Package will be tweaked, so graphics are more readable on shelf, and bottle will be changed to one that doesn't create height issue on retail shelves, Horrow added.  

Mix1 Life has completed acquisition of licensed No Fear energy brand - in process acquiring staff and expertise of Shadow Beverage & Snacks, the brand incubator that had been nurturing No Fear. And, as Shadow prexy George Martinez, who's made transition to Mix1 Life, made it clear this morning, expanded Mix1 Life team remains in hunt for other better-for-you or functional bev brands that might benefit from Mix1 Life's expertise and access to capital markets as a publicly traded co. (Note: See Inko's story below for update on another bev consolidator in hunt for new brands.)

Deal for $12.2 mil in restricted common stock, cash and debt unites Mix1 Life, based in Scottsdale, Ariz, and originally set up to acquire Mix1 protein line from prior owner Hershey, with Phoenix-based incubator that's been involved in recent years with bev brands under brand names like GNC, Ironclad, Nawgan, Whey Up and No Fear. Shadow had been created by cadre of former Pepsi execs who - tho they preferred not to discuss tie - were funded in part by indie Pepsi bottlers seeking new avenue for innovation (BBI, May 17 2013). So deal announced today will result in part in indie Pepsi bottlers, mainly out West, owning a piece of Mix1. Mix1 brand, recall, was created by former beer exec and Izze creator Greg Stroh, was sold to Hershey as part of ill-fated bev push and ended up on shelf. Robb picked up pieces as foundation for his new co.

In conversation this morning, Martinez told BBI that Mix1 is in essence acquiring 90% of Shadow, including license to produce energy line based on No Fear apparel brand, with some assets excluded from deal, including the Whey Up protein line that Shadow owns. "Shadow isn't going away - it still has a couple of other brands," he said. Martinez declined to identify rest of portfolio because discussions are continuing on those brands' future. With deal concluded, George joins Mix1 Life in key operating post of prexy/coo, reporting to Mix1 Life founder Cameron Robb, as ceo. "Now he had an organization," Martinez said, adding that deal "leverages the capability around 2 strong brands in 2 strong categories" energy play No Fear and protein play Mix1. From Shadow's perspective, it places activities on more stable financial base after recent struggles, as GNC bev line foundered and other clients like Nawgan came and went. Among key Shadow execs making transition to Mix1 Life are Richard Amrozowicz, running supply chain, and Eric Reinhard and Bob Shafer working on biz development; all are former Pepsi execs, like Martinez. (Expertise from Coke perspective comes from Mix1 Life board member Steve Vandeloo, former Coke hand.)

Tho energy category has steadily consolidated around handful of dominant brands, No Fear has carved out role among Pepsi operations that don't have access to Rockstar, distributed by Pepsi in most of US. That includes 23 indie Pepsi bottlers, primarily in NW quadrant of country, as well as some Pepsi-owned bottling operations. Martinez said brand has enjoyed some recent momentum since signing on with Advantage Sales & Marketing, which has opened estimated 2K new retail doors; Mix1 protein line has separately also been ASM client. Brand pulled in $4.3 mil in revenues in 2014, Mix1 Life said.  

Sit down for a bite with Paulo Zottolo, Miami-based creator of Amazonia tea-and-coconut-water infusions, and one hears familiar story of need for agile response to humbling lessons that market hands you. But after eventful past year and a half that saw rethinking of formulation and branding amid heavy activation of brand in NY (BBI, Jul 18), co is back in steady rhythm, argues former Nivea and Philips Electronics exec, broadening brand availability, albeit with less reliance on DSD than during first go-round. Line launched 4 years ago as AMAzon, but was rebranded on fly to Amazonia last year after Zottolo and right-hand exec, Ed Newman, concluded that branding could be confusing and, even where it wasn't, too often conjured notion in shoppers that product was made from Amazon river water. Cutover occurred just as brand was executing on major outdoor and events campaign featuring model/endorser Adriana Lima, causing some loss of traction, but it weathered transition. Line currently is comprised of 7 tea-and-coconut-water blends employing superfruits like cupuacu, as well as pure coconut water sku.

In discussion this week, Paulo readily acknowledged curveballs US market has tossed his way, with lessons for others trying to launch bevs here. While superfruits comprise big segment in Brazil, via tradition of acai bowls and guarana drinks, they haven't quite ignited in US, in part because of high calories associated with fruit. Coconut waters sold as RTD items in US offer taste issue vs that sold fresh on beach in Brazil, often mixed there with fresh fruit or spirits. And it became clear that magnesium and potassium levels in ingredient are beyond what most Americans need, suggesting that coconut water could be employed in more diluted form without any real tradeoff in efficacy. There were other miscues, he said: cluttered label, confusing brand name, and deterioration of cheap Asian-sourced ingredients via so-called Maillard reaction. Because of hotfill process employed by Amazonia, fat within coconut water is burned and drinks change color, in contrast to more stable offerings of aseptically packed leader Vita Coco and Zico, he said. Not least, like many others in RTD segment, he learned hard way that many DSD houses are not what they used to be in execution.

That was then, Paulo says. Working with formulation partner Wild Flavors, co changed to green Brazil-sourced coconuts a year or 2 ago, resolving many of quality issues. (Zottolo doesn't rule out sourcing coconuts from other regions but only green coconuts from now on.) Distribution and velocity have been building. At key Duane Reade chain in NY, brand is managing to turn impressive 8 12-unit cases per month per store, and now aims to broaden availability at other retailers. It counts as solid customers Costco's Midwest div and Sam's Club, and has launched test in Target. Other chains in mix include Winn-Dixie and all Albertsons divs, with Safeway due back aboard soon now that Amazonia has exited DSD in most of its regions. Sales grew from $1.2 mil in 2013 to close to $4 mil last year, Brazilian-born Zottolo said, and co is aiming to double that this year. Marketing plan is still being finalized, including new Web site launching imminently at AmazonPower.com.

Co has taken more circumspect view of DSD networks, employing them only handful in key markets, including Exclusive in NY and Maletis in Pacific NW. (Tho there has been persistent rumor on street that Amazonia has taken equity stake in Exclusive, Paolo said strengthened tie stems instead from loan he extended to DSD house, which is repaying it gradually via per-case premium it pays for Amazonia product.) Zottolo and Newman are eyeing selective DSD additions in some markets like New England, but their focus is on tighter execution within NY and other DSD markets they play in. Performance at key retailers gives them reason to be bullish about revamped brand's prospects going forward, they say.  

Fledgling cannabis segment has taken another step into broader availability with launch of nutritional supplement called Nulief from Newark, NJ-based Inergetics. New item, unveiled at chef David Bouley's Bouley Botanical space in NY last night, is initial offering from recently formed Whole Products div at Inergetics and offers means of attaining pain relief without accompanying high associated with other cannibis-based offerings. Based on Cannabidiol, Nulief offers "new alternative without the harmful side effects and addictive attributes of synthetic opiates," said Inergetics ceo Mike James. "The CBD in Nulief can help people who are experiencing discomfort caused by a range of conditions without the 'high' associated with THC found in traditional medicinal marijuana products."

Tho cmo Jim Kras said item in capsule form is legal in all 50 states and "affordable and available" anywhere in US, co will initiate distribution at dispensaries operated by partner and co-developer Terra Tech, which is involved in hydroponic produce growing and other areas. He said pricing would be released imminently as item hits Terra's dispensaries. Over longer term, Inergetics will spin off other benefits from base product, while employing other cannabinoids not necessarily sourced from marijuana. Item should hit broader array of channels over coming 18 months as mgrs there are educated on concept, he said. Also an avenue of development: incorporating it as branded ingredient in other mfrs' products. RTD versions are within range of possible extensions down road, Jim said. Inergetics, recall, offers range of supplements under brands like Surgex and licensed Martha Stewart brand. Among its advisory board members and investors offering expertise on RTD front is bev vet Ken Sadowsky.