Back in 09 when NAs were more of a strategic priority, Anheuser-Busch had fling with Jimmy Buffett-themed line of iced teas under vacation-y Margaritaville moniker.  Line failed to inspire much excitement among Bud wholesalers on either product or branding grounds and didn’t last long.  Now, Nestle Waters North America is takin’ its shot at concept, this time under Jimmy Buffett brand, as part of its broader Tradewinds iced-tea platform. 

All-natural Jimmy Buffett Island Teas launches in Feb in new proprietary 18.5-oz bottle to which core Tradewinds Slow Brewed Iced Tea single-serve platform will migrate, in 5 flavors differentiated from core line by heavier juice emphasis: Pineapple Coconut White Tea, Peach Mango, Tropical Citrus Green Tea, Paradise Punch Hibiscus Tea and Strawberry Lime.  Items contain a smidgen of juice and clock in at 120 calories per bottle.  Graphics by Wallace Church of NY play up such Buffett-associated cues as boats, Ray Ban shades and guitar picks, and of course positioning is right in synch with core lines tropical-island theme.  Blue tamper-band declares, “I gotta go where it’s warm.”  Line will be backed by cross-promos with other Buffett properties and tour bus following musician’s 2015 concert itinerary.

Team behind line was interesting mix:  licensor Margaritaville Holdings LLC brought in Inov8 founders Mike Weinstein and Brian O’Byrne as advisors, and they worked with Nestle Waters team that included sr innovation mgr Mike Fine and assoc mktg mgr Julia Balakrishnan.  Nobody was willing to offer explanation for why this one’s going out as Jimmy Buffett rather than Margaritaville, as do so many other licensed Buffett products in mixers and other segments. 

New line takes role among expanding array of teas from bottled-water giant.  Nestea line picked up after breakup of alliance between Coca-Cola and Nestle is adding Peach and Half & Half flavors.  NWNA execs at booth said line has already surpassed Fuze Iced Tea that Coke threw into breach as replacement for Nestea, and they’ll try to capitalize on headway by expanding ad campaign based on old Nestea plunge to national buy next year.

Core Tradewinds line, meanwhile, has been stripped down to 5 best-selling flavors in single-serve line since brand’s acquisition by NWNA, tho broader line is available in gallon packs, including dialed-up array of unsweetened sku’s.  The new proprietary bottle, at 18.5-oz vs current 20-oz size, is intended to help get brand down from $1.79-1.89 SRP to $1.39-1.59 range, more competitive with rivals Gold Peak (Coke) and Lipton Pure Leaf (Pepsi), promotable at 2 for $2.50.  Also in NWNA’s tea portfolio is organic Sweet Leaf Tea, tho that wasn’t focus at NACS this year.

Let the other key energy players experiment with electrolytes, protein, coffee, even organic formulations.  Red Bull North America continues to step up its innovation, but is still confining that to flavor extensions.  At NACS show, Santa Monica, Calif-based marketer sampled expansion of its so-called Red Bull Editions line with Red Bull Yellow, Red Bull Orange and Red Bull Cherry Editions, all due in mid-Feb in time for spring store resets.  Editions line will segue to 12-oz unit as core pack, tho items will also be available in 4-packs of brand’s familiar 8.4-oz slim can.   Orange and Cherry both are zero-calorie Total Zero additions, while Yellow is full-calorie.  Recall that Yellow edition, with tropical fruit overtones, had served as limited-time summer sku at 7-Eleven chain, but it performed well enough to merit inclusion as permanent member of line available to all channels.  Recall also that Editions had launched in Red (cranberry), Blue (blueberry) and Silver (lime) versions, which together with Yellow this summer have added $500 mil in sales to Red Bull brand.  No sign of original Red Bull Silver, perhaps retired.

With its founder avowing stepped-up commitment from distribution partner Pepsi-Cola, Rockstar Energy unleashed barrage of new brands that aim to broaden presence at retail while side-stepping conflicts with energy items launched under Pepsi’s other energy brands, such as Starbucks Doubleshot.  On display at expansive NACS booth were protein-rich Rockstar Sport Energy Shake (in 2 flavors), Rockstar Horchata and restaged Rockstar Roasted that employs almond milk rather than dairy as base.  (Horchata and Roasted had been discussed in BBI on Aug 4 and Jul 29.)  Trio of brands are intended to invade cooler space where likes of Muscle Monster and (Pepsi) Starbucks Doubleshot “have had free reign,” noted Rockstar founder Russ Weiner.  Energy Shake sports 25 g of low-fat milk protein and 600 mg of calcium and launches in Cookies & Cream and Power Chocolate flavors, in brand’s silver-patterned 16-oz can.

Also new in mix is Rockstar Freeze, employing natural mint extract to blast palate, in Pina Colada and Frozen Lime flavors.  (Meanwhile, Supersour line that similarly offers striking palate impact has been pared back to single sku, Apple.)  And co tiptoed for first time into organic segment with Rockstar Organic, formulated with organic cane sugar, organic caffeine from organic green coffee beans and organic guarana seed, in Island Fruit flavor.  Tho those ingredients are expensive to procure, co is taking margin hit by line-pricing item with rest of core 16-oz line, Russ said.  Most of these items fill in white space not filled by Pepsi energy entries under brands like Amp, Starbucks Doubleshot and Mountain Dew Kickstart.

Tho emphasis offered by Pepsi to Kickstart is believed to have been point of friction with Rockstar, whose contract precludes Pepsi from adding other energy lines in areas where it distributes Rockstar, those disagreements apparently have been papered over now.  In any case, Weiner said his co has received assurances from partner that brand will receive more space in Pepsi equipment and more focus periods in coming year.  “Pepsi is motivated to grow Rockstar,” he emphasized.  Pepsi bottling system distributes Rockstar brand in most of country outside brand’s Pacific Northwest and Northern Calif base, where brand remains with indie distribs.  No word yet from Russ on what next step is likely to be in NY, where its current distributor Phoenix Beehive is merging with Manhattan Beer, which distributes rival Red Bull brand to on-premise accounts.

PepsiCo touted broad array of new bev items that included several new sublines that take familiar brands in different direction: coconut-water-containing Hydrating Boost augmentation of Mtn Dew Kickstart; coffee/protein hybrid of its Starbucks Doubleshot energy line; electrolyte-infused Propel entry that seems designed to take on Coca-Cola’s Smartwater brand, and sparkling version of Lipton iced tea.  Array of new items beyond simple flavor additions seemed unprecedented over past decade, to BBI editor’s recollection.  And they came at show at which Pepsi’s energy drink partner, Rockstar, also unveiled slew of new items (story below).

This Jan, thriving Mtn Dew Kickstart line gets companion line packed in 12-oz slim cans called Hydrating Boost, initially in Strawberry Kiwi and Mango Citrus flavors, line-priced with existing 16-oz offerings.  Line includes juice (as some existing Kickstart entries already do) and coconut water.

On Starbucks side, co offered pair of new sublines.  Canned Doubleshot coffee/energy hybrid gets Coffee & Protein blend packed in 11-oz slim can and containing 20 g of protein, at SRP of $2.79-2.89.  Co has devised Coffee, Caramel, Vanilla Bean and Dark Chocolate flavors, 3 of which will go out at launch next Mar.  On Frappuccino side, PEP and its partner are dialing up flavor experimentation with LX subline that debuts in Feb in S’mores and Mocha Coconut flavors, in brand’s 13.7-oz glass bottles at $2.79-2.89. 

Lipton tea brand gets canned Sparkling Iced Tea that targets, in part, lapsed CSD drinkers.  New subline due in Feb is packed in 12-oz slim can, initially in Lemonade, Peach and Raspberry flavors, at price tentatively set a bit above $1.  Pepsi’s ONE Coconut Water line reformulated core Pure Coconut Water sku for much more pronounced coconut nose and flavor, while adding Coconut Water with Tea subline that offers different twist on coconut water segment that already boasts several coffee entrants.  New subline breaks in Wild Orange with Tea and Tropical Colada with Tea flavors in half-liter aseptic boxes priced at $2.99.  Both that and reformulated core line are due in late Feb.

Propel Electrolyte Water forthcoming in Jan will seek to get out message to active consumers that it’s only bottled water with Gatorade level of electrolytes.  Unflavored water goes out in 500-ml bottles, 750-ml sports-cap bottles and 1-liter bottles, at pricing described only as “competitive,” presumably to Smartwater.  “The workout water,” proclaims label.

On nutraceutical front, Pepsi showed cleanse-like Ocean Spray-branded entry called PACt Cranberry Extract Water that harnesses proanthocyanidins (PACs) from cranberries to offer cleansing/purifying effect.  Line packed in 16-oz widemouth PET bottles stating “cleanse & purify” on shoulder launches on unspecified date in 2015 at $1.99 SRP, in range of 4 flavors: Cranberry Raspberry, Cranberry Pomegranate, Cranberry Blood Orange and Cranberry Mango Passionfruit.  It employs natural sweetener blend of stevia, monk fruit and agave to come in at 10 calories per bottle, and also lists sea salt as ingredient.

Most innovation on Gatorade front seemed limited to flavor additions: Fierce Green Apple, due in Mar, and return of Citrus Cooler flavor that many fans on social media recall as being Michael Jordan’s preferred flavor.

At time markets have been on edge over weakening economies outside US, PepsiCo turned in durable 3d quarter, with net revenue growing 2% to $17.2 bil, on organic revenue gain of 3.1%, and operating profit rising similar 2% to $2.85 bil.  Revs in Asia, Middle East & Africa region soared 11%, while Europe edged up 1%.  The so-called BRIC developing nations – Brazil, Russia, India, China – offered particular lift, chmn/ceo Indra Nooyi said on conference call this morning.  Food side continued healthy performance, with exception of some weakness on Quaker Oats side.  Performance was enough to encourage PEP brass to up its outlook for full-year earnings-per-share growth to 9% from 8%.  “Underlying quality was solid, in our opinion, including in-line Frito-Lay North America volume and another quarter of more stable revenue in PepsiCo Americas Beverages,” wrote Stifel’s Mark Swartzberg in note prior to call.  For 9 mos, PEP’s revs are up 1% to $46.7 bil, and oper income up 3% to $7.55 bil. 

In PepsiCo Americas Bevs unit, dominated by core US market, net revenues were flat at $5.38 bil, and operating profit edged up 2% to $858 mil.  In North America, noncarbs grew slightly, seemingly not enough to offset 1.5% CSD decline, but Latin America contributed 2.5% in growth.  Filtering out currency factors, operating profit was up 4%, reflecting lower commodity costs, productivity gains and effective net pricing, PEP said, partly offset by cost inflation.  As has been case in recent qtrs, Pepsi execs offered very little color on performance of individual brands, aside from continued progress of Mountain Dew.

In her comments Nooyi made no reference to raft of innovation that PEP is unveiling at NACS c-store show in Las Vegas this week (next story), but did make general case that innovation comprises growing share of sales, up 90 basis pts since year-earlier period.  That includes not just new brands and line extensions but also primary and secondary packaging configurations that help co extract higher price from consumers – as with 12-oz glass bottle that sells for more than double 12-oz can, Nooyi noted.

Tho its data sometimes wars with that cited by rival Coca-Cola, PepsiCo claimed to have gained or held share in CSDs, sports drinks, RTD tea and unflavored water.  On call, Nooyi pointed to range of factors for progress, in process making case for bottler buyback a few years back and for co’s unwillingness to go down and dirty on pricing – acting “responsibly” is Indra’s preferred euphemism on subject.  Since buying back biggest bottlers, co has been able to go after foodservice accounts in more cohesive way, and as a consequence land some big accounts, she said.  Co also is beginning to score gains at college campuses and in local foodservice operations.  Bottler buyback also has enticed PEP to invest in greater mfg flexibility and better tools that sales force can deploy on front lines.  That’s now yielded several quarters where co has held share in liquid refreshment bevs, “and we’re doing it in a very responsible way.”

“The beverage business is hard.”  We in trenches remind each other of that fact all the time, but it’s not often you see lament in national publication.  Words are uttered in today’s NY Times, by social media pr pro Eric Harr, who put aside career in order to work full-time on Make a Stand lemonade line launched by his daughter Vivienne, now 10, to end child slavery.  Of course, effort has drawn frenzy of social media coverage and drawn likes of Twitter cofounders as investors.  In his regular Deal Professor column, UC Berkeley prof Steven Davidoff Solomon offers update on project, which has lately launched mobile app to buttress lemonade flavors and children’s book added in recent months.  Why an app?  “The beverage business is hard,” replies Harr (pere, not fille).  “So the Harrs have moved on from lemonade and are riding the mobile app lemonade,” reports Solomon, noting that Harr has placed that biz in hands of professional team to spend his time on new app.  “After all, apps are fetching tens of millions, if not billions, of dollars.  And selling an actual manufactured product is hard,” writes Solomon.  But BBI readers all knew that.

It’s not always arcane rainforest ingredients vying for showgoers’ notice at Natural Products Expo East.  At recently concluded show in Baltimore, pair of honey-based entries offered intriguing back stories.  They both benefit from familiar ingredient with good nutritional case, as well as cause-marketing tie to declining bee population.

Honeydrop’s HPP Move Inspired by Whole Foods Regional Buyer    By now, Deluxe Honeydrop has become familiar shelf-stable, glass-bottle brand in core Northeast market and some natural foods stores nationally, launched a few years ago by cancer survivor who wanted to promote considerable health bennies of honey.  At this show, tho, founder David Luks (the D Luks in Deluxe) was displaying new cold-pressed line that had quietly trickled into NY market this summer at $6.99 and above (BBI, Jul 15).  Turns out line packed in 10-oz slim PET bottles had grown out of talks with Whole Foods’ Northeast buyer, John Lawson, starting a year and a half ago.  Luks was receptive to idea because, among other benefits, it offered superpremium respite from frequent promos of nominally premium shelf-stable natural brands like Honest Tea.  Tho Honeydrop was sourcing raw honey for its core glass-bottle line, use of heat in processing shelf-stable brand made use of “raw” claim debatable.  So at urging of Lawson, Luks came up with cold-pressed Lemon Cayenne Cleanse entry.  No problem emblazoning front label with words Raw Local Honey.  Lawson liked concept and requested more flavors, so Luks added Apple Ginger Lemon entry employing raw Manuka honey, using honey variety that’s high in infection-resisting methylglyoxal (MG) and is sourced from New Zealand.  So far line is available only in Tri-State area around NYC, but initial reception’s been favorable and Expo offered opportunity to bring it to wider notice.  Right now, product is self-produced on co’s own cold-press and bottling line in refrigerated warehouse in Long Island City, just over bridge from Manhattan, tho it must go outside for HPP processing.  As brand adds Whole Foods regions, Luks’ plan is to localize the label for where the honey comes from, playing on growing awareness of effective role that pollen in locally sourced honey can play in alleviating allergies.  Sell sheet at booth portrayed versions of Lemon Cayenne cleanse from Baltimore/DC, Florida, New England and Philadelphia, as well as NYC/NJ/CT.  Meanwhile, contrary to one trade publication report, co is continuing to work core glass-bottle line, David said.  Brand info at Honeydrop.com.

Honey at Heart of Green Bee Soda   Maine-based Green Bee All Natural Soda, out in limited distribution for 2+ years, melds wildflower honey with ingredients like rosemary for flavors like Lemon Sting, Ginger Buzz, Blueberry Dream and, new at show, Half & Half.  Co was founded by entrepreneur Chris Kinkade, who was drawn to beekeeping after learning of colony collapse syndrome affecting US bee population.  Co bottles line itself in Brunswick without resorting to extracts or other shortcuts, and by now is available in Whole Foods stores in New England and smattering of natural/specialty accounts in NY.  SRP is $1.99 per longneck 12-oz bottle, with exception of blueberry sku, employing wild-harvested fruit, which goes for $2.69 in Whole Foods.  Shelf-stable line moves takes DSD route to retail in home state via houses like National and Federal, said “chief pollinator” Heath Down, who works in tandem with prexy Kinkade.  Brand info at GreenBeeSoda.com.

Brand incubator MetaBrand had said in late summer that its MetaBrand Capital investment fund was close to taking first significant plunge (BBI, Sep 29).  That’s now happened, and investment target is Runa, receiving $5.75 mil in growth capital, tightening tie that’s seen Edison, NJ-based incubator take extensive role in guayusa-based brand’s development while deploying core ingredient sourced from Runa in new line it’s done for Kroger.  Investor roster in this round includes Zico Coconut Water founder Mark Rampolla, and TSG mgg dir Brian Krumrei, fresh off taking seat on Pabst board following major TSG investment.  Also in mix are Jon Fishman, drummer for band Phish, and Coran Capshaw, founder of artist management company Red Light Mgmt.

Copacker King Juice, which last year stepped up its commitment to its Calypso Lemonade line by naming Jeff Outlaw prexy, has focused more human resources against glass-bottle brand that helped inaugurate lemonade boom.  It’s assigned King vet Bill Stineman to full-time role of vp of national accounts for Calypso Brands unit, Jeff said in note to trade partners.  “Bill has been with King Juice for more than 8 years and has the unique perspective of seeing Calypso evolve from a small regional brand to the category leader today,” wrote Jeff.  In addition, King has hired Altria/Philip Morris vet Andy Sands as Calypso Brands’ vp of marketing & strategic development.  Sands has also held staff role at Interscope/Geffen Records and worked on projects for Jeremiah Weed, Bud Light and Walmart, Jeff noted.  Outlaw himself had segued from role as sales consultant to full-time prexy role, in process putting on back burner his activities at Grove Beverage Group and operating distributorships in South.

We’d reported a year ago (BBI, Sep 19, 2013) that PepsiCo was “considering invoking its founder Caleb Bradham for a new sugar-sweetened entry” and that brand “wouldn’t be conspicuously branded as a Pepsi item.”  It was just a glint in PEP’s eye then, but co is ready to launch that soda, tho as Beverage Digest reported yesterday, “initially on a very limited test basis.”  “Calebs Kola (which we prematurely spelled with a “C” last yr) has its own Web site (CalebsKola.com) which touts that the soda is made with “sparkling water, cane sugar and kola nut extract.”  The brand is being tested at “a few Costco stores in NY, VA, MD and Washington DC,” noted BD.  Caleb Kola will be available to “other retailers in other channels later this month,” source told BD.  A 10-oz bottle of Caleb contains 110 calories, with 0 g of fat, 50 mg of sodium and 29 g of carbs.