Don Keough, iconic figure in Coca-Cola's rise to global prominence, passed away this morning at age 88. "Keough served as Coca-Cola's gregarious ambassador to the bottling world, artfully corralling executives and building lucrative relationships that bolstered the company overseas," Atlanta Journal-Constitution summarized. "He became a remarkable public speaker, something he had to work at. But behind the glad-handing and affability was a bruising and sometimes frightening corporate leader," as Keough himself acknowledged. "Some called it the 'Irish wind,'" noted profile posted on Coke's home page today. Atlanta paper quoted statement from Don's longtime friend and Coke shareholder Warren Buffett, like him Omaha-born: "You can sum up Don Keough's life in three words: Everybody loved him." Tho Keough never won top job at Coke, he formed formidable partnership with ceo Roberto Goizueta during crucial period in Coke's development, several sources recounted . . . Coca-Cola continues to remake its board with view to bringing in more, and younger, outsiders, with longtime members James Robinson III (40 years) and Peter Ueberroth (29 years) deciding not to stand for re-election at annual meeting in Apr. KO had announced in Dec that Marks & Spencer ceo Marc Bolland and Judd Enterprises ceo David Weinberg were coming aboard, effective last week. With Robinson and Ueberroth's retirement, KO board will include 15 directors, co noted.

Cleveland-based Avitae caffeinated water has stepped up presence out west by winning distribution in 400+ new stores, including Albertsons divs in Wash, Ore, Ariz, NM, Tex and Fla, and Roundy's Supermarkets in Wis and Ill. All have taken on all 3 caffeine levels offered in bottled line . . . LifeAid functional brand, based in Santa Cruz, Calif, has entered Australia and New Zealand market, via partner Fit Trendz, whose cofounders encountered brand at CrossFit event in Southern Calif last year, at time CrossFit activity is surging in those 2 countries. Move augments LifeAid int'l presence that already includes several European, Asian and Caribbean markets . . . Mojo Organics said it's landed Wakefern/ShopRite stores in NY metro as customers of its tropical juice items.  

Noncarbs As recently reported, Coca-Cola is making progress on transaction that will see it become minority shareholder of Monster Beverage, which will become portfolio mgr for entire range of KO energy offerings including Monster Energy, Full Throttle, NOS and Relentless. Is that putting any pressure on PepsiCo to step up game in energy? Not any that PEP brass were ready to reveal last week at meeting of Consumer Analyst Group of NY in Fla.

That question was directed at Al Carey, ceo of PepsiCo Americas Beverages at conclusion of PEP's CAGNY presentation. Al continued to hew to PEP view that co is adequately attacking segment thru variety of offerings - not all of them overtly positioned as energy drinks - that address same usage occasions. "I'm not going to comment on Coke's business; ask them about it," he said to questioner, Goldman Sachs' Judy Hong. "What I would say is in our business we have an energy entry in that we distribute Rockstar, and we also have a product called Amp. Between those two we have about a 12% or 13% share of the business. But we've looked at these demand spaces, and we find that it's not so much an energy drink, it's a demand space. And I think we can get near that demand space and meet consumer needs with things like coffee, (Mountain Dew) Kickstart and other drinks that consumers look for in the middle of the day to give them a lift. So overall the demand space is a broader thing than just the energy business."

Focus of CAGNY presentation was the many ways PEP's bev and snacks divs support each other. In Q&A, Carey acknowledged that noncarbs have risen on priority list since his return to bev side from Frito-Lay. "Now, at one point when I first came back to Pepsi about three years ago, I thought, boy, you just can't sell enough of these other drinks like tea, coffee, sport drinks and Naked Juice to make up for the decline in the carbonated soft drinks. The answer is: Yes, you can, and we are seeing that now. So I would say that these other brands -- and then Mountain Dew contributing -- gives us a chance to grow the business."  

Kefir specialist Lifeway Foods continues on its innovation jag, prepping 16-oz single-serve size and first summer seasonal entry for upcoming Expo West, even as it moves into market an oat-based play and first stevia-sweetened line. The summer seasonal, tapping watermelon ingredient that's become trendy in bevs lately, builds on success of winter seasonals riffing off eggnog and crème brulee.

Oat-based line tries to tap breakfast occasions with fiber-reinforced entries. It's being offered in 4-packs of 8-oz PET bottles in Cinnamon Apple, Blue Maple and Vanilla Plum flavors, each reinforced with 3 g of prebiotic, soluble oat fiber that should offer greater satiety feeling than core kefir. They're sweetened with cane sugar, coming in at 160 calories per bottle, and are priced at $4.99 per 4-pack.

Lifeway Perfect 12 lately hitting retailers like NY's Fairway chain gets name from 12 different probiotic cultures it contains, as well as 12 g of carbs per cup, or 110 calories, same as Lifeway's core plain kefir, thanks to use of Pure Circle stevia. Flavor range is Triple Berry Tart, Apple Pear Cobbler, Key Lime Pie and Orange Cream - first orange flavor to be included in co's adult-focused bevs, commns vp Derek Miller told BBI last Thurs, at Health & Nutrition Showcase in NY. It's offered in 32-oz multiserve PET bottle.  

Tho it doesn't boast financial firepower of alkaline-water rivals Essentia and Aquahydrate, Waiakea Hawaiian Volcanic Water is moving forward with its own expansion, bringing aboard key sales and marketing execs and pursuing DSD coverage in Southern Calif even as it finetunes approach to listing pH content in interest of greater transparency with consumers.

Co founded in Marina del Rey, Calif, by Ryan Emmons recently brought aboard AriZona Iced Tea and Acosta vet Brad Galbreth as sales dir for wholesale, with mandate to start assembling DSD network for key markets starting in Southern Calif. Incumbent sales dir Garrett McAllister remains in mix, focused on retailers. Emmons is also bringing on first asst sales mgrs, starting this week in SoCal and soon followed in Ariz and Tex, both good markets for brand. New in mix on marketing side is newcomer to bevs, Kurt Dunn, taking vp post. Earlier in career, at Suretone Entertainment, Kurt had worked on tour mgmt, ticket sales and digital strategies for acts such as Fleetwood Mac, ZZ Top, Lonestar and India.Arie. Emmons also has assembled advisory board that includes broker and former Glaceau investor Bruce Nierenberg, Runa cofounder Dan MacCombie and Advance Ventures ceo Ephraim Lindenbaum.

Tho an order of magnitude lower than figures being touted by Essentia and Aquahydrate, Waiakea recently raised $1.6 mil in outside capital, partly from unidentified investment group in Shanghai and billionaire publisher. No VC or private-equity funds involved to date. Capital raise undertaken by Emmons himself took a year in face of investor skepticism about cluttered category, he readily allows. But it gives him wherewithal to finally embark on meaningful expansion.

Brand has finally enlisted Whole Foods' Southern Pacific div (in core Southern Calif market) and should soon add Fresh & Easy grocer, fast-growing Nekter juice bar chain and Vitamin Cottage nutrition chain. Tho brand is generally eschewing c-stores for now, it will enter more premium-positioned Wawa chain on East Coast. Ryan noted that HEB's Central Market natural banner in Tex is brand's best retail account and soon will add Waiakea-only coolers to mix, offering further test of how well brand moves when given strong display.

Taking Cautious Tack on pH Labeling Lately there's been concern within alkaline water sector that some processed brands, once inspected, prove not to meet pH listed on label. That's been less of a concern among brands like Waiakea that are naturally alkaline as result of minerals present in original source. Still, Waiakea is backing away from listing specific pH on label, instead going with "naturally alkaline" on front panel and offering range of pH values to account for natural variability that occurs as result of rainfall on Hawaiian volcano below which water is sourced. Emmons said he's well aware move could alienate some hard-core users who demand specific pH #, but views it as needed step toward transparency that he hopes other brands will emulate. And he remains wary of making claims out of continued concern that FDA may decide to take an interest in outlandish claims being made by some rival brands (BBI, Jun 24).  

Private-label player Cott concluded challenging year on upbeat note, reversing year-earlier loss and claiming relief on its core CSDs thanks to "slightly more rational" pricing by branded players, even as it's dramatically lessened its reliance on troubled category via acquisitions and contract manufacturing push. Tho acquisition of water-delivery co DS Services has been viewed skeptically by some observers, who question synergy with core biz, this and smaller deals, as well as contract mfg push, has left COT reliant on CSDs for less than 20% of its biz, and on large-format retailers for less than 50%, ceo Jerry Fowden reminded listeners on conference call this morning.

Revenue grew 13% to $543.5 mil. Gross profit surged 19% to $71.8 mil, boosted in part by extra week and diminution in promo activity by CSD rivals, as well as addition of higher-margin acquisitions Aimia Foods and DS Services. Net income came in at $21 mil, reversing $10.1 mil loss in year-earlier period. Core N Amer market saw 10% rise in volume thanks to "slightly more rational" pricing environment, as well as growth in contract mfg biz and extra week. Revenue edged up 2% to $347 mil in region.

Conference call today was lacking key feature of recent quarters' calls: extended lamentation by ceo Fowden about extreme price promos of major soft drink cos, which have put severe pressure on COT's core offering: 2-liter bottles and 12-packs of 12-oz cans of CSDs that are sold in big-box stores. True, CSD environment remained "difficult" in Q4, with Cott's volumes down 4-5% (excluding effect of 53d week), despite slightly less promotional environment. Still, that was "improving trend," Fowden acknowledged. He's hopeful Big 3 will maintain their recent focus on offering smaller packages at premium prices while lessening frequency of promos that during one stretch last year saw near-continuous pricing of 2-liter bottles at $1 and 12-packs of cans at $3. "I really applaud the effort they're doing there" on so-called price/pack architecture, Fowden offered. In answer to question, he said Cott itself doesn't have bandwidth to follow them into those more lucrative smaller packs given more compelling priorities elsewhere.

Promo Environment Still Challenging, but Less Severe During Q4, 2-liter CSDs priced at $1 appeared in big box retail about half the time, an improvement over prior quarter when that price was absent only 1 or 2 weeks. In Q2, it was every single week of qtr. As for action on 12-pack cans, Nov/Dec saw little to none of $3 promos despite holiday season, tho it has re-emerged about 2 weeks ago and "it's too early to say it's gone." Overall, situation is "more challenging than it was a couple of years ago but much better" than most of past year. While some analysts have taken encouragement from scanner data showing that branded CSDs have moved up more in price than private-label, widening price differential and thereby making private-label brands more attractive to shoppers, Fowden cautioned that such data blended across multiple regions, packages and retailers is often misleading. In given region, "all we need is one of them to match up with private-label to keep our share down," he cautioned. In coming year, he expects continued declines both in private-label and branded CSDs as bev biz continues to evolve away from segment.

Contract mfg exceeding initial targets Given need to diversify from CSDs, Fowden emphasized progress logged in developing big contract mfg biz. That leg of co has handily beaten target of adding 15-18 mil cases in 2014, closing out year with 24 mil cases of new biz. Two wins registered near year-end that are together worth 13-16 mil cases annually put COT well on track to meet 3-year target of 50-80 mil more cases of contract biz by 2017. About 2/3 of contract biz is in hotfill juices and juice drinks.  

CSD volume slowed its decline to -2.1% last 4 wks thru Feb 15 in IRI's multi-outlet + c-store data, reported by Morgan Stanley's Dara Mohsenian. "We continue to be encouraged by stronger CSD pricing led by KO," he notes, as avg price for segment was up solid 4.2% last 4 wks. Regular CSDs were off 0.6% last 4 wks while decline in diet brands slowed to -5.5% from 6.2% decline last 12 wks. Coca-Cola avg price increase of 5.1% for latest 4 wks was in line with 12-wk pricing trends with 2.5% volume decline. PepsiCo's price increase of 3.8% last 4 wks was also in line with its 12-wk trend. PEP CSD volume improved to -1.9% last 4 wks vs 3.4% drop last 12 wks. Dr Pepper Snapple CSD volume was flat last 4 wks as avg price accelerated to +3.2%. Private-label trends got worse in latest month, with 7.2% volume drop on small (-0.7%) avg price drop.

Energy Surge; Improved Pricing Picture Energy drink trends were heating up even in dead of winter. Segment volume improved to 10.1% gain last 4 wks (vs +8.4% over 12 wks) even as avg prices improved to +2.4% vs 1% gain last 12 wks. Monster, Red Bull, Rockstar, Coca-Cola and PepsiCo all improved volume trends. Monster volume surged 14.3% (up from +13.5% last 12 wks) with avg price increase of just over 1% last 4 wks. Red Bull volume rose 9.7% even with avg prices jumping to +4.4% last 4 wks vs 2.5% increase over previous 12 wks. Rockstar swung from 1.6% decline previous 12 wks to 3.3% volume gain last 4 wks with 0.8% price bump. Coca-Cola energy brands (Full Throttle, NOS) still on a roll as their shift over to Monster ownership nears. KO energy volume up 27% last 4 wks, up from 22.9% gain for 12 wks. Avg price increased 2.5% in latest month, down from +3% for 12 wks. PepsiCo (Amp) volume decline slowed from 4% drop over last 12 wks to -1.4% last 4 wks even as pricing swung from small avg decline to a 2% avg increase. Still no traction for private-label brands, which dropped 12.5% even with avg 6% price drop last 4 wks.

Gatorade Outperforms Sports drinks volume improved to 5.2% gain even as pricing ramped up to 6.2% avg increase last 4 wks. That's up from 4.4% increase for 12 wks and double category avg last 52 wks. Gatorade volume was up 8.7% (vs 6.8% increase for 12 wks) on avg price increase of 5.2% last 4 wks. Powerade prices were also up over 5% last 4 wks but volume trends worsened to -3.2% vs 0.5% decline last 12 wks. Pricing for private-label sports drinks remained solid (+5.5%) but volume again sank double-digits (-27.2%) last 4 wks.

Better Volume, Pricing in Water, Too Bottled water volume rose 7.8% even as avg price increases accelerated to +2.7% last 4 wks, up from 1.3% hike prior 12 wks. Nestle Waters volume gains slowed from +6.6% to 4.1% gain last 4 wks as avg price increased to +2% vs 1% decline previous 12 wks. Coca-Cola water volume rose 11.9% last 4 wks even with avg prices going from +1.2% to +3.4% last 4 wks. PepsiCo volume surged to 14.2% gain (vs 8.2% increase for 12 wks) but that was aided by avg 5.4% drop in prices last 4 wks. Private-label brands were up 7.7% on small (0.5%) avg price increase.

KO, PEP Drive Tea Gains RTD tea volume gains accelerated to 9.4% last 4 wks as avg prices were up 4.2%. That matched category's avg price increase for 12 wks. PepsiCo (+16%) and Coca-Cola (+22%) were still up double-digits last 4 wks. PEP price increase of 6.4% and KO's avg hike of 7.1% were in line with 12 wk trends. Dr Pepper (Snapple) volume improved to 1.8% gain on avg price drop of 0.8% last 12 wks. Private-label teas rose 4.9% (vs 0.5% drop prior 12 wks) on 1.5% avg price drop last 4 wks.

Nawgan, Kirin-backed, Cognizen-based mental acuity line that's retrenched to narrower range of markets and channels after earlier rollout over past coupla years, appears to have signed on with Phoenix-based Shadow Beverages & Snacks, group of mainly ex-Pepsi execs who've built enterprise around incubating their own and clients' brands. No word back to query yesterday to Shadow prexy George Martinez and Nawgan founder Rob Paul responded only that, "at the moment all I can say is more to come." Shift suggests key exec on San Diego-based brand, marketing vet Corey Blick, may be moving on. It's not clear initially whether Shadow has been retained as client or may be taking equity in Nawgan, nor whether deal may also include sister brand Powered On. Its brands include No Fear energy drinks, Whey Up protein drinks and Mor Sparkling Enhanced Water. Corey had moved to Nawgan from FRS, where he helped launch brand with Tom Lines, tho that brand too has moved into more quiescent phase after ambitious landgrab effort . . . Ball confirmed offer to purchase UK canmaking giant Rexam in $6.8 bil merger, tho regulatory scrutiny looms as hurdle to be crossed . . . AccelFood has expanded incoming class of accelerator brands from 4 to 6 for its 3d class. New roster is comprised of 5 food brands plus Australian-launched pod-based sports nutrition and wellness brand, PODlife, with patent-pending shaker system.  

NY-based maker of EBoost, while soldiering on in tuff shot category, is branching out into pair of flanker powdered drink mixes: veggie powder called Spruce that offers convenient alternative to elaborate juicing ritual and pre-workout supplement emphatically called POW.

Marketed as supplement, Spruce contains 3 servings of the veggies asparagus, cabbage, spinach, kale and broccoli, via freeze- and air-drying processes that preserve flavor, color and nutritional value of ingredients. It's boosted by 85 mg of caffeine sourced from coffee berry, in Apple Ginger flavor sweetened with stevia. It's offered in box containing 15 single-serve packets likely priced at $39, a bit lower on QVC shopping channel. EBoost ally Jillian Michaels, the popular TV trainer, will flog brand via 2-minute infomercial that's to be shot this spring for airing in May/Jun timeframe. Until then, it will be available online and direct. EBoost founder Josh Taekman said powder goes well mixed in such liquids as coconut water. "Why juice when you can Spruce?" asks marketing copy.

POW is styled as "pre-workout super-enhancer" targeting what Josh believes is emerging demo of those into rigorous workouts like Cross Fit and obstacle racing. It's formulated from ingredients like nicotinoyl-gaba, N-acetyl-tyrosine, DMAE, the joint-comfort-promoting FruiteX-B, and beet juice powder. It's sweetened with cane sugar/stevia blend and goes out at $24.99 per 20-serving canister. That launches next month and will be marketed in part via network of fitness ambassadors, Taekman said. Name is intended to connote such qualities as energy and explosiveness.  

Count Nestle Waters North Americas' French import Perrier as latest high-end bottled water brand to scale up its consumer marketing in 2015: it's going with party destination called District Perrier to herald brand's long association with upscale nightlife venues. As reported in c-store newsletter CSNews, initiative is "part fantasy and part reality," featuring original content hub on Tumblr hosted by a fictitious "Perrier Madame" and featuring cocktail mixology videos, DJ playlists, hotspot guides and even a serialized immersive audio narrative created in collaboration with playwright Pia Wilson. In effort to connect with millennial consumers on their turf, brand is employing mobile marketing apps such as Blippar, mobile augmented reality and image recognition platform, and iBotta, hosting District Perrier games to redeem rewards to drive in-store engagement, CSNews noted. Earlier digital efforts had included Le Club Perrier in 2011 and Perrier Secret Place in 2013. News comes as Fiji has disclosed launch of $30 mil national TV effort (BBI, Feb 17) and Icelandic Glacial has broken outdoor campaign in South Fla, to be followed by efforts in NY and LA (BBI, Feb 12).