It's been turbulent past year for Phoenix-based incubator Shadow Beverages & Snacks, which invested heavily behind failed effort to establish GNC-branded functional line as alternative to Gatorade, in process downplaying efforts behind such other portfolio brands as Whey Up protein bevs and No Fear energy drinks. Some hard lessons were learned: not to challenge likes of Gatorade without a strong marketing war chest, and to stay away from licensing model for bevs, as too complex and expensive. In recent months, tho, it's moved to reinforce exec team and announced addition of Mix1 protein line as client. More quietly, it's also taken on potent other cause-marketing brand, Make a Stand, which is dedicated to ending child slavery; Shadow's job is to make its eponymous lemonade a serious challenger to likes of Calypso and Hubert's. Last week, ceo Keith Reinhard and prexy/coo George Martinez outlined current direction of co, which is funded in part by indie Pepsi bottlers who've been seeking to stoke innovation made available to them.

The exec changes first: Sam Jones, there from inception, moved on from coo post about a year ago. Former PepsiCo and Pepsi Bottling Group exec Eric Reinhard has stepped into full-time ceo role, where he focuses on engaging with outside entrepreneurs and with bottlers. Another ex-PepsiCo and PBG exec, Bob Shafer, who was acting as consultant, stepped into full-time role as cmo this spring. Prexy George Martinez has added Jones' old coo role and manages day-to-day operations. Co also is reloading its board, seeking to fill 2 openings currently. As reported in past, co is funded in part by Spyglass, investment fund set up by indie Pepsi bottlers. They have tight tie to Reinhard, who served once as prexy of Pepsi-Cola Bottlers Assn.

DSD Listening Tour Helping to Set Direction for Make a Stand Lemonade Brand Over past few weeks, Shadow has quietly picked up as client Make a Stand Lemonade, which has generated estimated 1 bil media impressions from effort to devote 5% of gross revenues toward ending child slavery. Vivienne Harr, who founded co at age 8 after having only operated a lemonade stand previously, captured global wave of media coverage after her story was tweeted by NY Times columnist Nicholas Kristof; at Times Square event last Dec with NY Mayor Mike Bloomberg, she broke $100K fundraising goal and went on to raise $1 mil to bottle her organic, Fair Trade "lemon-aid." Make a Stand brand has garnered additional awareness via childrens book Harr illustrated with her mom, and via feature-length documentary. Shadow's role is to optimize formula and packaging of drink (now in 8-oz glass) so it's more formidable alternative to Calypso, Cabana and Hubert's, working with consultant Jim Tonkin and other board members. Shadow already has embarked on listening tour of prospective DSD partners to get better read on likely price and positioning.

No Fear Garners Greater Resources, Flexibility out of New Deal Recall that No Fear was licensed energy line launched by SoBe as indie co, prior to purchase by Pepsi, which eventually shelved it in order to focus on other energy plays like Amp. Like other energy brands including NOS, Rehab and Full Throttle, it's licensed from outside entity, in this case No Fear clothing line owned by IBML. As Shadow learned, royalty stream to brand owner can sap precious resources needed to build brand. After first 5-year term expired, tho, new deal with IBML offers both more flexibility and more funds to support marketing, and brand has responded: it's up 39% so far this year. Brand has found niche among Pepsi bottlers in Northwest quadrant of country who don't have access to Rockstar brand, which reserved that core territory for its traditional beer and other wholesalers, as well as some in Mid-Atlantic. Elsewhere, Shadow is looking to identify retail channels - like dollar stores and foodservice - where it can build No Fear brand on direct basis. Brand generally goes out priced a bit below Monster and Rockstar, at $1.99 every day promoted at 2 for $3 and occasionally even 2 for $2.50. Relationship with IBML is solid, Reinhard and Martinez report.

Founder Rothchild Returning to Whey Up Shadow execs readily acknowledge that potential of hybrid protein/energy line was neglected because of massive investment needed for now-withdrawn GNC line. So brand has remained in its home state of Ariz, but with some encouraging signs: in key accounts like QuikTrip c-stores, it outsells Gatorade protein per point of distribution, and sometimes even bests Muscle Milk. With focus about to be restored, founder Erik Rothchild has agreed to return to active role. Also in arsenal is body builder Greg Plitt, an equity holder. Packed in 20-oz PET bottles, line offers "protein with purpose" thanks to reinforcement with caffeine and B-vitamins.

Mor Sparkling Water May Get Package Makeover Mor Sparkling Enhanced Water, sugar-free, zero-calorie line packed in 12-oz slim cans, has also taken slow route, 3 years into Shadow effort. Starting in Mountain State markets like Denver, brand has radiated out to both corporate and indie Pepsi bottling operations, many of them in Pacific Northwest. Shafer recently won authorization within Pepsi Bottling Corp's Northern and Southern Calif regions. To date, brand has stayed out of retail fray, focusing instead on biz, industrial and education channels. Shadow is evaluating packaging alternatives before it ramps up at retail.

Hungry McGee Snacks Strike Chord among Bottlers Developed by indie Pepsi bottler in Springfield, Ill, line of jerky and other snacks offers smart "adjacency" to bevs and has won following among other Pepsi shops - 20 bottlers to date, with uptick anticipated after Labor Day, once network is beyond prime selling season and can focus again on new stuff.

GNC Line Succumbed to Aggressive Gatorade Pricing, Insufficient Brand-Building Funds GNC bev line, dating back to 2012 alliance with nutrition retailer, joins ranks of failed challengers to Gatorade's hegemony in sports drinks. It was ambitious launch, as Shadow teamed with national nutrition chain to launch bev line that would play in enhanced waters, proteins and other realms. It mustered major presence at shows like NACS c-store extravaganza, and got brand into Safeway, Kroger and regional chains, but financial requirements of building brand proved difficult to sustain. Even undertaking 4 for $5 promos at Kroger (SRP was $1.99) proved unable to counter 10 for $10 promos on 20-oz Gatorades without marketing support to build brand. So line has been shelved now by mutual agreement with GNC, George said. GNC may choose to revive effort down road, he noted, but it wouldn't be with Shadow.

Mix1 Rethinks Distribution Strategy Since Mix1 is publicly traded, it was difficult to offer Shadow equity for role in partnership, as it does with other brands. So Shadow will align its goals by aiming to meet performance milestones. As for strategy moving forward, that's still being sussed out. Co is taking agnostic view on DSD distribution; given good presence Mix1 once had in Whole Foods and Kroger, it may make more sense to go via broadliners or direct ship to reclaim those accounts, the Shadow execs figure.

Lookin’ to defray expense of exhibiting at NACS this fall?  Wait-listed indie spirits brand will pay to share your space.  If interested in discussing, reply in strict confidence to This email address is being protected from spambots. You need JavaScript enabled to view it. and we’ll pass your response on to marketer.  C-store expo is back in Las Vegas this fall, with show floor open Oct 8-10.

Alkaline water brand Essentia Water has kicked off brand ambassador program with signing of trio of “hydration specialists” who’ll support launch of brand in Boston.  They are Sarah Dussault, fitness blogger with 180K subscriptions to her YouTube channel; yoga/fitness instructor Goldie Graham, who won Boston magazine nod as “Best of Boston” for expertise, and Pilates instructor Jennifer Phelan, who’s similarly racked up range of accolades in local media.  “Sarah, Goldie and Jennifer have established themselves as role models in their community,” explained Essentia vp for marketing/innovation Paul Curhan.  “With their expertise in health and fitness, they will help Essentia to educate consumers in a grassroots way while continuing to serve as an inspiration.”  He’s busy recruiting ambassadors for other markets, too.  Recall, Essentia recently kicked off Boston by assigning brand to Polar Distributing . . . KeVita Sparkling Probiotic Drinks named Sharon Richter as its official “nutrition ambassador.” 

Coca-Cola was hit with 2 critical articles in high-profile biz publications today as Wall Street Journal highlighted how American mkt has become crucial again amidst slower global trends and Bloomberg Businessweek offered lengthy feature on Coke confronting health concerns for its CSDs.  As noted here previously, stories highlight growing skepticism on KO strategy that until this year drew little questioning from journalists or Wall Street community.  And for first time in years, it seems, KO is drawing onerous comparisons on execution vs PEP.

Americans “have been drinking less” Coke for a decade and now “desire for Coke in its foreign markets is slackening too,” wrote Wall Street Jnl.  Even tho KO’s global sales bounced back in Q2 after decline in Q1, “the trend is ominous,” and with more than 70% of its global volume still in CSDs, KO remains “basically a one-trick pony.”  So what’s KO doing?  “It is scouring every grocery store and small town for what Sandy Douglas, president, Coca-Cola North America, calls the ‘nooks and crannies of opportunity up and down the street,’” noted WSJ.  Since Paul Mulligan took over as prexy Coca-Cola Refreshments in Jan, he has “toured more than 1,000 grocery and convenience stores.”  “I don’t think we need to change our strategies. We need to execute to perfection,” he said while touring a Publix in Atlanta.  He rated current retail efforts a “5” and said he wants to put Coca-Cola brands in any stores “people hang or wait in lines,” like “nail salons, barber shops, AT&T stores” and others, noted report.  And while it may seem “counterintuitive” to be charging more per-oz for its 7.5 oz mini-cans, Paul pointed out there are many “Range Rover and diamonds” shoppers at Publix who aren’t concerned with price and will “pick it up” if available. 

Board Happy, Investors Not So Much; Slow Re-Franchising Pace   Two people “familiar” with co’s directors told paper they are “fully supportive” of chmn/ceo Muhtar Kent, but investors “are losing patience” and KO shares are down 1% in past yr.  Some analysts think co could be doing more to boost bottom line.  “From a cost-cutting perspective, we want them to get out of the kiddie pool,” said Ali Dibadj of Bernstein Research.  He believes that KO can cut “an additional $3 billion on top of the $1 billion in its three-year productivity plan,” noted WSJ.  (Allegedly bloated costs also are target of investor activist Wintergreen Advisors – BBI, Jul 24.)  KO hope that refranchising its manufacturing to local distributors will help boost performance is showing promise in one mkt so far.  Coca-Cola Bottling Co United Inc, based in Birmingham, Ala, has grown volume there 9% since takeover in Mar, but “this isn’t a quick fix,” with just 7 refranchising deals completed covering just 10% of US, noted WSJ.  Estimates are it will take til 2106 to get that to 1/3 of country and 2020 to refranchise “majority” of mkts.  On positive note, WSJ did acknowledge that current “Share a Coke” campaign “is so popular” that 20-oz bottles “flew off the shelves” this past month.

KO’s ‘Big Fat Problem’   That’s headline of long article in Bloomberg Businessweek detailing ongoing challenge for Coca-Cola to sell its brands to a public that’s become increasingly concerned about weight and health concerns.  Article notes that PepsiCo has same challenge but credits ceo Indra Nooyi for “shockingly blunt” assessment last yr that big shifts have to be made or in “another 3 or 5 years, the consumer will walk away from carbonated soft drinks.”  But while PEP can fall back on profits from Frito-Lay food biz, “Coke doesn’t have that” and relies too heavily on declining sodas, noted Bizweek.   

Despite big defeats of late in New York and San Francisco, politicians continue to take aim at sugary drinks.  Latest to grab headlines is Rep Rosa DeLauro of Conn, who intro’d Sugar-Sweetened Beverages Tax Act that proposes to add penny tax per teaspoon of sugar in bevs.  Tho she “is under no illusion about the chances” of that tax becoming law or even coming to a vote, “she wants to bring the debate to Washington for the first time in years,” noted Reuters.  “We have a serious health problem.  It is in part related to the consumption of sugar and added sugars and sugary beverages,” said DeLauro.  Under scheme, tax would add about 15 cents to 20-oz bottle of soda.  Allies like Center for Science in Public Interest, Amer Heart Assn, Amer Public Health Assn and Latino Coalition for Healthy California hailed tax as providing $10 bil in revenue that could be deployed by obesity prevention programs.  But soda lobbyist American Bev Assn gave it a big yawn.  “The soda tax is an old idea that has gotten no traction in federal government, states and cities across the US,” said ABA rep Christopher Gindlesperger.   

SodaStream shares are trading up over past day despite co’s acknowledgement that it’s in “turnaround” mode in US after sales of new machines plunged 55% in 2d qtr, a function, co execs said, of unsuccessful marketing emphasis on value.  That will be replaced by new emphasis on health and wellness, as co accelerates arrival in market of flavors employing natural sweeteners like stevia and monk fruit.  Israeli co reported that sales continued to rise in its other 3 regions, and gas refills rose in all regions, a sign that those who buy home soda-making units are continuing to use them.  Easing off torrid growth pace of past, revenue rose 6.6% to $141.2 mil while net income slipped 29% to $9.2 mil.  Excluding US results, revenues would have been up 20%.  It all made for “solid results outside the US, partly offset by continued softness in the US,” said ceo Daniel Birnbaum.  Until renewed marketing effort has chance to take hold in US, co is trimming back its growth expectation for 2014 from 15% to 5%.  Shares this morning were still trading up around $32 from $30 prior to earnings release, with acquisition speculation likely a factor too, but they’re considerably off 52-week high of $69.78.

In US, “demand creation” efforts proved ineffective, and retailers were left holding inventories built up for last year’s holiday season, Birnbaum indicated. But gas usage was up 28%, per NPD data, suggesting that those who’ve bought machines in this country are finding greater use for them.  While some of decline in new units was attributed to co’s decision not to repeat Home Shopping Network events of past year, which co concluded were on uneconomic terms, rest of it reflected failure of marketing pitch based on value to resonate.  (Birnbaum said research indicates that US consumers aren’t fixated on value, but some outsiders have noted that Sodastream-created sodas are simply more expensive than relentlessly promoted packaged CSDs.)  Seasonal placements in 1,500 Walmart stores failed to generate anticipated turns.

US Plan: Health & Wellness, Stevia SKUs    After it became clear that marketing pitch focused on value “clearly has not resonated with consumers,” research suggested that health and wellness would provide more compelling reason to buy, at time consumers have shown with declining CSD purchases that they’re “fed up with 9 teaspoons of sugar per can and the use of artificial sweeteners.”  So that will be pitch going forward in 2d half in US and Canada, even as healthier options emerge with arrival of 11 flavors sweetened with stevia and monk fruit under Sodastream Free brand.  Co will continue to use endorser Scarlett Johansson in its marketing.  Lightly sweetened Free brand, containing 40 calories per 8-oz serving, surged to 20% of total volume in Finland after only 8 weeks at retail, and co is hopeful it will have similar impact in US as it arrives at retail in coming months.  Also important, co is narrowing range of machines it offers in most markets, and targeting them more tightly to specific retail channels to avoid consumer confusion.  Birnbaum noted that marketing course corrections like this one are not unprecedented in Sodastream’s history: sales struggled in Germany until SODA came up with convenience-oriented message promising “perfect water without schlepping,” while in Finland, it proved to be emphasis is on environmental benefits that got sales to ignite and in France emphasis on enjoyment.

Private-label player Cott weathered 15% drop in its North American CSD volume to eke out 3% 2d qtr volume gain on strength of upsurge in juices and juice drinks and continued progress on new initiative of building significant contract mfg biz.  Results show that beleaguered co has “begun to stabilize our top line,” with further relief expected if branded mfrs eventually ease off their intense CSD promotion in large-format stores, said ceo Jerry Fowden.

For qtr, revenue slipped 2% to $551 mil.  Operating income declined 20% to $26.1 mil, in part because of expenses like shipping costs as co adopted greater emphasis on contract mfg.  In N Amer, revenue declined 11% to $374 mil and operating income fell 37% to $15.1 mil.  Volume rose 3%; excluding concentrate and Aimia Foods acquisition, it was off 1%.

Contract Mfg Adds 9 Mil Cases, with 13-16 Mil More in Pipeline   In core N Amer market, CSD volume plunged 15% in face of prolonged and severe discounting by national Coke, Pepsi and other national brands, but juices and juice drinks surged 14% and new-age bevs rose 10%.  Meanwhile, on key initiative of building contract mfg biz, that volume grew by 9 million 8-oz-equivalent cases, to 15 mil cases.  Cott also reported winning of 2 new contracts, about equally splitting 13-16 mil cases, for delivery starting in Q4 and next year’s Q1, respectively.  Together with co’s first meaningful contract in N Amer foodservice biz, which should start shipping later this month, they take COT further on path to goal of 50-80 mil cases over next 3 years.  (As it phases in non-traditional bev formats like freezable bevs and liquid enhancers, co has begun to offer volume data in cases conforming to FDA-approved serving sizes rather than via 8-oz-equivalent cases; by old measure, contract target had previously been reported as 30-50 mil cases.)  Contract biz, mainly in hotfill juice segment so far, generally offers comparable margin to core PL biz, on terms that generally extend to 3 years or beyond.

Also key is acquisition strategy, most recently $110 mil (sales) Aimia Foods, bought in May and putting Cott into new formats such as hot chocolate, creamers, cereals and liquid enhancer drops and into underdeveloped channels like wholesale, vending, foodservice and contract mfg.  Co continues to evaluate other acquisition targets.  Taken together, these developments signal that “Cott is in stronger position now than it was just one quarter ago,” Fowden argued.

CSD Pricing: Don’t Believe Big 3 Rationality Claims, Says CEO; Given Week’s Respite, His CSDs Surged 20%   Given Cott’s vulnerability to big CSD brands’ pricing tactics, Cott ceo plays canary-in-coal-mine role in detecting even minute changes in pricing activity.  As in recent quarters Fowden advised investors to take big bevcos’ protestations of pricing rationality with large grain of salt.  In past calls he’d tracked how Big 3 soda marketers began scorched-earth policy on 2-liters last Aug, with 12-pack cans joining fray by year-end.  Those are core packaging configs for large-format stores.  That’s continued unabated thru this year, he contends, with 2-liter PET bottles priced at $1 or below and 12-packs of 12-oz cans priced at $3 or below.  Big 3 execs have claimed that retailers are initiating some of those cuts on their own, and Fowden allowed that may play a part, “but the catalyst is the national brand owners … it takes 2 to tango.”  And while big bevcos paint brighter picture of CSD price realization, that’s in part because they’re offsetting carnage on large-format packs with minicans and other novel packs targeting instant-consumption channel.  “Give them credit . . . they’re pushing the business a bit more to higher-value smaller packs,” Fowden agreed.

Fowden reported a single week’s respite from pricing carnage, when 2-liters rose above $1 and 12-packs above $3.  The impact on Cott’s CSD biz was immediate and striking: its volume surged 20%.  Fowden took that as “encouraging sign” that his CSD biz could come back quickly should the majors’ cut back on their price promos. When might that happen?  He’s hoping they’ll rethink their strategy late this year, by time they’re cycling time in 2013 that 12-pack cans hit price dumper.  For now, “I don’t think prices can be lower,” he said.  Asked by analyst why more consumers seem to be gravitating toward full-calorie CSDs than diet CSDs, judging by volume trends, Fowden replied flatly that they’re “being bribed back to the category with promotional pricing.”

It’s long been a given that youthful consumers of conventional energy brands think they’re immortal – which explains why purportedly healthier brands with all-natural ingredients, lower caffeine levels and absence of taurine have had trouble garnering much traction among this demo.  But how about ranks of lactose-intolerant?  They seem to be everywhere these days – 40 mil or more Americans, by some estimates.  That’s bet Rockstar is making now as it restages its Rockstar Roasted coffee energy line to use almond milk instead of dairy, as brand seeks to carve out a viable niche between the 2 giants of the segment, Pepsi/Starbucks Doubleshot and Java Monster.  Since Rockstar moves thru Pepsi system in most of US, restage may also ease channel conflict by making Roasted complementary to, rather than directly competitive to, Doubleshot, which likewise moves thru Pepsi system.  New version hits the street mid-Aug.  Confirming launch, Rockstar evp of sales/distribution Joey Cannata said it capped years of research and so far has been embraced by retailers as different take on energy.  Joey said existing dairy-based Roasted sku’s will remain available in certain markets, primarily on West Coast, but otherwise will transition out in favor of new line, which will command premium due to higher ingredient costs.  It’s being produced in former Livingston Chocolate retort plant that Rockstar acquired to produce Roasted in Tenn back in 08.

New line hits in 3 flavors: Espresso Latte and White Chocolate, both clocking in at 110 calories per 8-oz serving, and Light Vanilla, at just 50 calories per serving.  Like predecessor version of line, they’re packed in 16-oz cans that are standard for most conventional entries, with silver background and “With Almond Milk” prominently stated on front panel below Rockstar Roasted logo.  Cannata said launch seeks to capitalize on interest that consumers are displaying toward almond milk as latte option in coffeehouses like Peet’s and Starbucks, as well as expansion of grocery brands like Califia Farms. 

Part of story of Vitaminwater’s igniting as brand last decade was fertile alliance with rapper 50 Cent.  Latest twist in brand saga is more a tale of 2 cents – offered by hundreds of fervent consumers on social media and, apparently, by thousands more in stores after Coca-Cola reformulated core full-calorie line with cane sugar/stevia sweetener blend.  “The fans have spoken,” co just posted on Vitaminwater.com.  “We’re changing back to the taste you know and love.”

Social media backlash had erupted by early Jun as new versions trickled out to market, swapping crystalline fructose for all-natural blend of cane sugar and stevia (BBI, Jun 5).  Coke had been known to be planning move to cane sugar last fall, but it wasn’t clear when stevia entered picture, or why – revamped line comes in at essentially same calorie count as old one.  Many consumers posting on Facebook and Twitter lit into seeming contradiction, saying they couldn’t understand why KO didn’t confine stevia – which several said they find unpalatable – to Vitaminwater Zero subline rather than tinkering with their adored core line.  Meanwhile, Glaceau unit had loaded up a ton of marketing activation to try to slow or reverse accelerating decline of brand, off 20% or more in much of syndicated data despite constant promos at $1 or below.  That marketing effort has now been pulled, sources said.

On Web site, brand explained that undoing new formula “will take some time, but we'll move as quickly as we can,” with first plant running old version in Aug and un-reformulated Vitaminwater appearing back on retail shelves this fall and available nationwide by winter.  With most social media posters identifying Coca-Cola as culprit, co makes little effort to hide corporate parentage of brand, inviting consumers to offer responses to This email address is being protected from spambots. You need JavaScript enabled to view it..

In postings earlier this week, consumers continued to offer evidence of broad backlash.  “Currently I am driving across three states in vacation and everywhere I go the shelves are flooded with vitamin water (no old tho),” posted Sharlee Brooks on Sun.  “I have asked some why so much stock since before I had a difficult time finding it at all.  Always same answer, the new formula is not a success.”  The same day a Safeway worker named Leslie J Heath noted, “We currently have V-water for 88 cents . . . The shelves of the ‘new’ formula were FULL . . . my mgr saw me with a ‘old’ bottle and asked me if I might know why they'd been having so many returned recently and I told him . . . he was going to talk with their cke distributor!!!!”  But showing how hard it can be to get a read on these things, another poster, Mark Riley, confessed, “I tried revive again and realized it was pretty good . . . I then found an original formula revive that i had left in the fridge at work a couple months back.  Opened it, tried it and didn't care for it . . . lol . . . So I apologize for my original post.  I obviously didn't give the new revive a fair chance.  I should have.  I really hope others follow suit.”  BBI editor has similarly encountered wildly divergent reactions among NY store mgrs, friends, family and neighbors.

Bev incubator Shadow Beverage has picked up protein drink marketer Mix1 Life as client, offering its considerable distribution expertise to restaging brand that recently saw its DSD chief Kevin Conrad move on to new job in spirits biz.  “Shadow will work quickly to make Mix1 available to consumers across all channels and all states across the country, promised Shadow cofounder/prexy George Martinez.  Recall that Mix1 was founded by serial entrepreneur Greg Stroh, acquired by Hershey, then discontinued in face of intractable production problems, eventually picked up by entrepreneur Cameron Robb, who saw promise in all-natural entry in segment heavily weighted to workout-style entries like Muscle Milk.  Former Rockstar Energy and Southern Wines exec Conrad had made transition from Hershey to Robb’s Mix1 Life Inc, but recently departed . . . Federal Trade Commission said Quebec-based marketer has agreed to pay $500K to settle charges that it deceived consumers with bogus claims that Double Shot pills would cause rapid, substantial and permanent weight loss without diet or exercise.  Agency said that Manon Fernet and co she controls, which did biz as “Freedom Center Against Obesity,” marketed Double Shot to US consumers from 2012 thru Oct 2013 via direct mail claiming they could eat whatever they want yet still lose 15-20 pounds per week.  “This order should send a strong message that the Commission does not tolerate such fraudulent advertising,” said Jessica Rich, dir of agency’s Bureau of Consumer Protection . . . Lassonde Industries Inc closed on acquisition of Apple & Eve LLC for total cash consideration of $147.9 mil, after subtracting $2.1 mil net working capital adjustment from agreed-upon $150 mil price.  Canadian co said it funded acquisition with mix of $75 mil under term credit facility of a US subsidiary, $67.5 mil from combo of cash, cash-equivalents and Canadian operating credit facility, and remaining $7.5 mil via equity investment by members of Lassonde family, who hold 10% interest of Apple & Eve.  Lassonde itself holds other 90%.  Financing fees came to $2 mil and other fees $3.5 mil . . . Dollar Tree agreed to acquire struggling Family Dollar Stores in deal valued at $8.5 bil, as rival dollar stores combat growing competition from segment leader Dollar General and from Walmart’s proliferating smaller locations, CSNews.com reported.  Deal merges 2d-biggest deep discounter, Family Dollar, with 3d-biggest, Dollar Tree, creating retailer with 13K locations and sales of $18 billion.