S Cap, a NY-based impact investment fund, has invested undisclosed amount in blenderless smoothie maker Bright Greens, pouched item created by entrepreneur Brian Mitchell in Rockville, Md. Co offers flash-frozen “smoothie cubes” that are tossed into shaker bottle with hot water, in Bright Blueberry, Mintergreen, Peaches & Green and Pineapolos flavors. S Cap also invested in Canadian maker of granola and granola bars called Libre Naturals. They comprise first investments of fund created by Kunal Sethi . . . Red Bull North America is launching summer-themed flavor dubbed Beach Breeze that hits palate with tropical fruit notes but finishes on coconut note. It’s packed in turquoise-colored cans in 8.4-oz and 12-oz sizes . . . Amid clutter of new brands that have entered the market, Vitaminwater doesn’t seem to have quite the ordering clout it used to have with retailers. So word is Coca-Cola has downsized brand’s case size from 24 units to 12 units, move that should make it easier for retailers, particularly inventory-constrained smaller indies, to order range of flavors . . . It looks like Coca-Cola’s African bottling operations will linger in the hospital ward a bit longer. After refranchising discussions with potential partners who’re believed to have included Coca-Cola European Partners and Coca-Cola HBC (Hellenic Bottling), KO said it’s decided to stand pat “for the foreseeable future,” continuing to operate Coca-Cola Beverages Africa as part of a Bottling Investment Group that it’s sometimes described as hospital ward for bottling operations, like those in Philippines too, that need attention before they’re ready to thrive again in outside hands. “While we remain committed to the refranchising process, we believe it’s in the best interests of all involved for Coca-Cola to continue to hold and operate CCBA,” KO explained. Given prior multiple delays, Wells Fargo’s Bonnie Herzog didn’t see development as great surprise, chalking up inability to reach deal to lingering political unrest and foreign exchange volatility.

Under Nestle ownership Blue Bottle may be going on spree of café openings in major metros, but it’s retaining tight focus with RTD coffee biz, taking its time expanding range or tackling conventional grocers. At NRA show, tho, it finally offered 2d sku in its line of unsweetened black RTD cold-brews packed in squat but elegant 8-oz cans, repackaging Original as Bright and adding new Bold flavor, said Jen Nelson, sales mgr for CPG foodservice. Bright is described as offering “radiant and fruited” flavor notes, while Bold delivers “deep and chocolatey” notes. Both are cold-brewed for 12-16 hrs and filtered for “luminous clarity.” They go out at $3.99 as does brand’s only creamed RTD entry, 10.7-oz gabletop of New Orleans Style Iced Coffee. In the works for early 2020 is canned single-origin entry that would take line to new level of sophistication. Given elevated price point, Jen said co is still holding off on making push into mass channels like conventional grocery.

Yogurt giant Chobani, which in recent months has made its first foray into plant-based items, teased a barista-oriented oatmilk at Natl Restaurant Assn show, displaying mockups of gable-topped 32-oz cartons that staffer said are headed to market in fall timeframe, tho details still are very much up in air. She said new entry likely will debut in Original, Chocolate and Vanilla flavors. Co was demonstrating oatmilk’s latte-friendly characteristics by dispensing lattes and the like from allied coffee roaster La Colombe, which Chobani founder Hamdi Ulukaya controls. Elsewhere in booth, Chobani staffers were highlighting first plant-based entries, including on bev side coconut-based drinkable yogurts, in 7-oz PET bottles in flavors like Vanilla Chai (being sampled) and Mango, Strawberry and lightly sweetened plain version. Front panel simply describes them as Non-Dairy Chobani, with lead ingredient listed as cultured coconut blend. They launched in Dec and are trickling out to market now as retailers start to reset shelves.

Organic Valley’s Organic Fuel milk-based protein shakes launched around 5 years back with campaign dubbed “Save the Bros” that went explosively viral by co-opting cause-marketing tropes to urge do-gooders to do their share to shift iron-pumping gym rats away from their addiction to protein shakes that seemed a lot like Muscle Milk. Looking to energize line and broaden its opportunities, the La Farge, Wis-based dairy co-op has made radical pivot, dropping protein content from 26 g to 20 g, cutting sugar by half to 9-10 g per 11-oz pack and switching from PET bottle to resealable Tetra Pak employing so-called Dream Cap, vp sales for emerging channels Wayne Shaker said. The drop in protein in turn has enabled co to lower to $2.99 price point that’s been associated with more female-skewing sibling brand Organic Balance, also in 20 g range. And it’s augmented Chocolate and Vanilla flavors with Coffee flavor containing 86 mg of caffeine. The shift aligns what’s now called simply Fuel in big block letters to similar position to Balance in protein content and price, tho Balance wasn’t on view at booth and Organic Valley execs were keeping their counsel on what future holds for that line.

At National Restaurant Assn show, PepsiCo is addressing consumers’ growing sugar concerns even with highly nutritional bevs like refrigerated juices by adding subline called Half Naked to its Naked Juice brand. Tho still 100% juice in keeping with core Naked premise, line substitutes less caloric juices like watermelon, coconut water and cucumber for mainstay juices like banana. New subline, which already has entered Target chain, initially is out in Peach with Ginger, Watermelon Passion Fruit and Lively Greens flavors, the latter containing 1 coconut, half a cucumber and apple, and one-third of a peach and orange, along with ingredients like spirulina, alfalfa, broccoli, spinach, barley grass, wheat grass and ginger root . . . Also noteworthy at booth, PEP is shifting its Stubborn Soda artisanal-soda lineup from glass bottles to cans, starting with its top 3 flavors, Agave Vanilla, Black Cherry Tarragon and Classic Root Beer. Staffer working area said the bottles are on the way out . . . Seeking more vibrant flavor similar to that enjoyed with not-from-concentrate offering at retail, PepsiCo has launched frozen-dispense option for its Tropicana OJ brand, starting with Orange and Apple flavors and soon adding Cranberry and Lemonade entries. No preservatives, no HFCS, exec working booth area noted, saying new entry already has entered the roughly half of IHOP chain that Pepsi services. Existing ambient option will remain in the mix. “We’re not the first to the party, but we’re going to be the best to the party,” he said . . . PepsiCo announced today the launch of PepsiCo Foodservice Digital Lab that harnesses proprietary and syndicated research to make it easier for its foodservice customers to manage digital activities like managing online reviews and search engine results to implementing customer rewards programs. PEP said it worked with partners like delivery service GrubHub and loyalty provider Mobivity. Scott Finlow, cmo for PepsiCo Foodservice, termed it a “one-stop service” for operators ranging from corner pizza parlor to global restaurant chains.

Limitless Coffee, which boasts good local visibility in Chicago thanks to successful effort by founder Matt Matros to build Protein Kitchen eatery chain, has been making a statement lately with pair of elegantly designed retail stores that we visited during recent trip.  It’s part of effort to build brand that’s grown to encompass successful coffee-roasting biz, well-regarded line of glass-bottle cold-brewed coffees and matcha teas, and most recently a lightly caffeinated, unsweetened canned line that offers more premium, functional alternative to La Croix.  That line was quickly picked up not just locally by Jewell and Mariano’s but by likes of Walmart, Safeway (Ariz), Albertsons (Tex), Whole Foods (SoCal), Fresh Thyme, Earth Fare and Central Market.

Striking flagship store is out in booming Fulton section of West Loop, which has seen invasion by the young, the techie and the trendy.  Ballast Point situated small brewery there, UK’s Soho House opened there, Google just took over 150K-sq-ft former cold storage warehouse, WeWork has big unit there and another UK icon, Hoxton Hotel, opened 3 weeks ago.  Rich Melman’s Lettuce Entertain You restaurant group has departed from its commitment to River North nabe to open Beatrix Restaurant & Market at key crossroads.

Matros and his partner Jeff Shapack were prescient enough to acquire some of real estate in 2014, building 2,500-sq-ft flagship store on part of it and partnering with Lettuce Entertain You to open Asian restaurant on other.  Flagship store has been designed to accommodate work-from-home crowd, with outlets everywhere, whiteboard and TV screen for presentations; Pepsi and Sara Lee are among companies that have hosted events there and mayor-elect Lori Lightfoot kicked off her campaign there.  A coffee roaster behind transparent screen in back was recently removed to accommodate next phase, which Matros wasn’t ready to discuss yet.

There’s similarly outfitted sibling on Wells St in River North nabe (photo below), as well as small shop on Michigan Ave.  Items offered at the stores boast cutting-edge bev ingredients like beets, schizandra and charcoal, in riot of colors that offer Instagram appeal.  Beet Rose Latte, for instance, includes schizandra berries for antioxidants and to help mask beet taste.  Also in mix are likes of Turmeric Latte and Lavender Latte (a brisk seller in stores, even tho lavender flavor of bottled cold-brews have proved a stretch to most consumers).  Line of fizzy entries meld fresh fruit without added sugar and sparkling water.  Matros and culinary staff tinker with Instagram-bait ingredients like butterfly pea flower, flavorless addition which makes bevs intense blue but changes color when citrus is added.  Shops are viewed as key test lab for flavors and recipes that might make their way out to RTD biz.

Wholesale coffee biz that we profiled a year ago (BBI, Apr 26 2018) is doing well, in 500 offices by now including likes of Salesforce.com, largest private employer in SF, and Netflix in Silicon Valley, which Matros said blows thru Limitless matcha.  All told, coffee beans, kegs and tea do $2 mil in wholesale sales now, helping to fund the RTD push.   As for striking glass-bottle line that represented co’s initial foray into RTD, those do well in some accounts like Whole Foods stores in Southern Calif, but team acknowledged it will take a back seat for now to canned sparklers that have been immediately embraced by retailers.  Those entries use no sweetener and contain 35 mg of naturally sourced caffeine per 12-oz can, comparable to amount found in a diet soda.  It’s out in 6 flavors: Blood Orange, Watermelon, Grapefruit Hibiscus, Cucumber Pear, Ginger Mint and Lemon Lime.

Recently added to team was Zach Hotle, former sports-marketing agency exec who worked on Nike and Red Bull brands, then had good run at Neuro, first in marketing then in sales, where he worked closely with Dr Pepper Snapple, which is copacking the canned items at plant outside Chicago in Northlake.  He also did stint at Uptime energy brand.

Grocery giant Kroger has teamed with private investment co Lindsay Goldberg to create incubator for new consumers brands that might thrive in its stores. Partners said new entity will go by name PearlRock Partners, relying heavily on data-driven approach that Kroger has pushed hard via its 84.51° subsidiary. Supermarket News noted that PearlRock Partners dovetails with Restock Kroger strategy to “redefine the customer experience,” in process building alternative profit streams targeted to hit $400 million in operating profit by 2020. “To that end, Kroger aims to monetize the huge, rich stores of data amassed from its position as the nation’s largest supermarket company, with 2,800 stores, vast digital properties, millions of daily transactions, and broad technology and analytics capabilities,” SN noted. To bev marketers, there will be at least one familiar face in effort: former Coke exec and Keurig Green Mountain ceo Brian Kelley, now a partner at Lindsay Goldberg. “Backed by a state-of-the-art predictive data platform, real-world consumer product expertise and unparalleled merchandising resources, these next-gen brands will be poised for growth and offer Kroger’s broad customer base greater choice, convenience and innovation,” he said. Tho Lindsay Goldberg has managed numerous investments on energy and industrial side, on food/bev side it numbers as exited investments McDonald’s supplier Keystone Foods Holdings and spirits distributor Maine Beverage, and is current investor in Golden West Packaging.

Buoy, a St Louis marketer of “easy squeezy” electrolyte drops, has teamed with local non-alc beer specialist WellBeing to launch a “healthy, hydrating” non-alc beer dubbed WellBeing Victory Wheat Powered by Buoy. Each 16-oz can is claimed to contain 3 servings of Buoy’s blend of electrolytes (sea salt, potassium, magnesium, chloride), vitamins and antioxidants. “Finally, a beer that’s proud of its nutrition label,” states Buoy website, in apparent reference to Anheuser-Busch’s much-touted move to include panels on some of its packaging. Co was founded by youthful software specialist Daniel Schindler and pharma sciences PhD named Lianli Li, who modeled their water enhancer after oral rehydration salts (ORS) formula of World Health Org, as have other hydration plays. Schindler also has filed for patent for “integrated, free-flowing spout for all 750-ml and half-gallon liquor bottles to mix a naturally flavored hydration solution with every ounce of alcohol poured,” per his LinkedIn page.

Unlike Walmart, 7-Eleven has never been an impregnable fortress to early-stage food/bev brands: after all, Soylent first tested its RTD items in 7-E stores around LA and co’s venture arm is believed to have invested in early-stage brands like Core Water.  But taking a leaf from Walmart and other major retailers that are showing greater urgency in taking down entry barriers, Irving, Tex-based retailer has offered 125 LA-area partner stores the option of picking up nearly 100 new brands on list of 31 up-&-coming companies, per Natl Assn of Convenience Stores and other media reports.  Tho 7-E reports don’t include specific brand names, they play in range of segments like keto, paleo, vegan, organic, high-protein, low-glycemic, gluten-free, nutrient-dense, plant-based and cold-pressed.  Pic supplied by retailer shows shelf set with brands like Roar Organics, Cabana, Spindrift, Soylent, Koia, Tio Gazpacho, Harmless Harvest, Brew Dr Kombucha’s new cans and Kor shots.  Sign above cooler reads, “Sips + Snacks That Love You Back.” 

“When our emerging brands team created this unique product assortment in collaboration with our category managers, the goal was to give customers drinks and snacks that they might not expect to find at a 7-Eleven store,” said vp new biz development Chris Harkness in statement.  “Customers are demanding healthier options.”  The list is outgrowth of “Next Up” showcase event held last Nov at 7-E’s Store Support Center in Irving, at which 7-E employees and local franchisees voted on their favorites among 70 participating cos selected from 300 that had applied.  More than half of the 70 were owned by women (26), minorities (9) or veterans (2).  It was later decided to go out with idea in LA.  “We don’t want small and emerging vendors to be intimidated by 7-Eleven’s size,” Harkness said.  “7-Eleven is always on the lookout for innovative companies who have a fresh take on a product, a healthier alternative or a unique flavor that might become the next big food trend.”