While no launch date has been revealed yet, news that Starbucks will be selling single-serve machines with instant coffee pods to further its successful VIA brand prompted Stifel Nicolaus to review what challenge means for Green Mountain Coffee Roasters. "Simply put, this is a negative" for GMCR, wrote Mark Swartzberg and Mark Astrachan. It not only "increases competition in single-cup," in which it has 80 share, but "we believe it makes a GMCR/Starbucks relationship less likely, at least in the near term." They also note while SBUX machines for VIA "could ultimately increase the size and relevance of the single-cup category, given the company's brand image and relevance to coffee drinkers, and early success of VIA, it is also likely to gain meaningful market share, if successful."  

Coca-Cola Bottling Co Consolidated said net income edged up from $15.4 mil to $15.5 mil, or $1.69 EPS, for 3d qtr while revenues increased 5.5% to $395.4 mil. Excluding 1-time items, Coke Consolidated income came in at $12 mil, or $1.31 per share, which beat analysts' estimates avg of $1.07, per Thomson Reuters. "Despite continued high unemployment in most of our franchise markets, we have seen strong growth of both a top-line and comparable bottom-line basis," noted chmn/ceo J. Frank Harrison III. For 9 mos, bottler earned $33.3 mil on comparable basis vs $24.2 mil for Jan-Sep 09. Total revs were up 6.4% to $1.16 bil for 9 mos.  

Reed's Inc reported 35% sales gain in 3d qtr and said its private-label push is going well enough that it should be able to support co's first foray into marketing behind its own brands next year. LA-based co said Q3 sales surged 35% to record $5.4 mil. For 9 mos, sales are up 23% to $14.3 mil. Net loss for qtr narrowed to $398K from $402K. "Sales are accelerating for our branded and private label products," said founder/ceo Chris Reed. "We came in ahead of our revenue estimates."

"We're starting to sit down with ad agencies," Reed told investors on conference call. "Next year we should have a significant budget to market and advertise for the very first time," without having to sell shares to fund it. "We're reluctant to raise money at $2 per share," he noted. Co put toe in water by taking meeting with Clear Channel, whom it asked to bring in retail partner to help support radio effort. That turned out to be Fresh & Easy chain, a private-label customer of Reed's, which erected endcap displays that generated enough gross profit to pay for radio campaign that yielded 4 mil consumer impressions.

Private-Label Effort Cracks 4 Major Chains As reported, PL push focuses on categories that aren't directly competitive with Reed's own root beers and ginger brews, instead "knocking off" (Chris' phrase) Martinelli's, Izze and Welch's. Co continues to focus PL effort on key national chains, claiming to be aboard at 4 majors, with 2 more due in Q1. That's created challenges on production side - as with 1 chain that placed $800K order, saw product move and asked to double it, then came in with order that actually was triple original size. To meet burgeoning demand, Chris is in discussions with 3 copack facilities on E Coast and 1 in Midwest about 1 of them coming aboard to help with large orders of specialty products. In some segments - say, swingtop bottles, where it's only N Amer producer - outside help won't be readily available, tho.

Social Media? Reed Is Rare CEO Willing to Admit He Doesn't Know All the Answers Asked how co plans to leverage social media, ceo Reed didn't pretend to be past master. "Gonna embarrass myself - I just bought Twitter, Facebook and Social Media for Dummies, all 3 books," he said. In fairness, co has undertaken fledgling social-media efforts, like marketing Reed's Rx Natural Ginger Nausea Relief to mommy bloggers. Still, "our social media skills are lacking here . . . but I'm really a return on investment kind of guy . . . it's going to have to pay out for me to continue to put money into it," he said. He's interviewing for social media pr dir.

Friends in High Places Asked about exit, Reed made it clear that he and management, who collectively own about half shares of co, feel there's lots of runway ahead before they'd be inclined to sell, even 20 years into the game for them. Still, he noted, he has standing offers from 2 large public cos to discuss exit any time he's had enough, he said. He didn't ID the cos, natch.  

Celsius Holdings shares plunged from $1.40 range to 90-cent range after it reported ballooning 3d qtr loss after spending heavily to boost disappointing topline. Fla-based co said revenues rose 32% to $1.8 mil but net loss widened to $5 mil from $2.7 mil. For 9 mos, co recorded net loss of $13.9 mil on net revenues of $8.2 mil, vs net loss of $5.3 mil on revenues of $3.5 mil during year-earlier period.

Chmn/ceo Steve Haley explained outcome by noting that co had amped up spending after brand got off to slow start in year's first half, aggressively increasing discounts, promos, coupons and slotting fees to tune of $1.8 mil, or about half of total invoiced revenue of $3.5 mil for qtr. Co also spent $725K on sampling and $2.4 mil for consumer ads. "These combined efforts were successful as our consumer retail takeaway for the third quarter was 125,000 case equivalents, for an increase of 468% over the same quarter in 2009," he said. Still, revenues are far cry from target announced earlier this year exceeding $20 mil, which co has since dialed back. Given uncertainty of sales outlook, co also is now dialing back expectation that it would move to positive cash flow in Q1 2011. Twin disappointments took immediate toll on CELH shares.

"We are disappointed that our increased marketing efforts have not quickly led to a corresponding significant rise in revenue. But we are pleased with the progress made on the underlying foundation for the brand and the company," said Haley. "While it's taking more time and capital than we originally planned, the same basic concepts of why Celsius should be successful remain intact."  

Jones Soda continued to claim progress in Seattle co's rehabilitation in 3d qtr as it narrowed net loss to $578K from $1.5 mil a year earlier and continued to ease out of brands, primarily noncarbs, that are now deemed superfluous to strategy. For period, revenue sank 28% to $5.1 mil and gross profit decreased 8.5% to $1.4 mil. For 9 mos revs are $14.4 mil, down about one-third from $21.7 mil in 09. Co has about $2.6 mil in cash and $6.9 mil in working capital after recently pulling in $1 mil via drawdown of equity line of credit arrangement.

As reported, co has decided to stake its future entirely on carbonated drinks, exiting Jones Organics and Jones Naturals noncarb lines and next qtr easing out of 24c enhanced water and Gaba mental-focus lines. (Co wrote off additional $166K of Gaba inventory in latter connection.) Even on CSD side, it's backing out of brand-undermining concentrate sales, with sales to partner National Beverage dropping to zilch in qtr from 318K cases a year earlier. Kroger is believed to be only major chain where brand has retained presence. That was biggest factor in 54% case sales reduction for period. Excluding that, case sales dropped to 395K from 539K. That leaves focus on glass-bottle Jones Soda line (including Zilch diet siblings) and relaunched WhoopAss energy line. "While there is still much work to be done, the recent sell-through results of our glass-bottled soda are encouraging and give us a heightened degree of confidence about our long-term growth prospects," said prexy/ceo Bill Meissner, who came in 7 mos ago.

Tho co didn't break out how case sales of glass-bottle line fared, Bill told BBI they declined 9%, hindered mainly by loss of on-premise account and move away from some less-efficient distribution. "I'm very pleased that our glass bottle business is only down 9%, as we had taken our eye so far off that ball that a much bigger whiff could have been expected," he told BBI. "Additionally, a significant portion of the 9% was from the loss of the Panera Bread account."

Biggest job is to boost availability of glass-bottle line, particularly in grocery, Bill noted on conference call. That's #1 channel, but ACV stands at only 15% for soda and measly 8% for glass bottles. In research, consumers cite difficulty in finding brand as biggest negative. Co's also working to close DSD voids - it just filled NY (with Dora's Naturals - see story below) and is focusing on Fla and Tex markets. And it needs to do better with houses it's got: Walmart reserves spot for Jones at all 3,800 US stores and DSD net nominally covers 75% of them, but brand's in only 1,500 of them today.

Asked by investor whether co's seeking strategic distribution ally, Bill - who's been that route at SoBe and Fuze as those brands cut over to Pepsi and Coke bottler networks respectively - said no. "That is not something Jones is looking at right now," but rather indy houses from large systems like Coke, Bud or MillerCoors. Co has been making particular headway with "sub-networks" being formed by Bud houses, just signing on Indiana network. "We were able to convert that state very efficiently," he said. "We're seeing that more and more . . . as those sub-networks form." Jones has closed 509 counties via Bud system in 7 mos he's been there, Meissner noted to BBI.

Jones Scores Old Navy Chain Rumor apparently got started from Facebook posting: Jones is cracking Old Navy apparel chain. Prexy/ceo Bill Meissner confirmed coup: Jones is starting with 100 stores by year-end and will add 300 in 2011, going chainwide to all 1,800 units in 2012, he said. Jones gets its own cooler, with 2d cooler reserved for retailer's private-label bottled water.  

It might seem that Hilton New York hotel in heart of midtown Manhattan is odd place to host produce show, but show hosted by Eastern Produce Council and Produce Business mag was hive of activity. Quite a few bev brands were on hand, as well as distribs, brokers and other visitors fostering healthy grapevine. Highlights from BBI stop-by:

Zola Acai Enlists Metro Mint's Collins as COO; Upgrades Packs As acai wars intensify, SF-based Zola has filled key operating void by recruiting former Metro Mint coo Matt Collins to role, according to some at show. No comment from those at Zola booth and founder Chris Cuvelier didn't immediately respond to request for comment. Move, which partially fills void left by earlier departure of ceo Felix Maez, comes as co has broad array of initiatives under way. It's upgrading packaging, moving to bolder fruit imagery and cleaner overall feel, while broadening presence in 32-oz multiserve segment with addition of Blueberry and Pomegranate sku's to Original line. There's expectation, too, that investor Emigrant may be coming in with new capital round soon.

Bolthouse Farms Adds Coconut SKU, Eyes Herbal Push Bolthouse Farms extended reach of Bom Dia with coconut-water based Coconut Splash, employing coconut juice from South America. Line breaks in single-serve range for now. Also being sampled at show was new Passion Orange Guava in 32-oz size as well as recently launched Acai-10 Superblend formulated from 10 superfruits. More quietly, co seems to be exploring move into herbal realm in flavors like Grapefruit Sage, following similar move by Sunsweet in natural channel. Buyers said they were sampled juice blends augmented with herbs like sage and basil, tho apparently corporate greenlight hasn't been given yet. Booth staffers said they weren't allowed to discuss initiative with media.

Sunsweet Discusses Alliance with Purity Organic Calif-based grower Sunsweet is quietly extending its influence as strategic ally to indy players in bev space. It's forged minority investment in Ayala Herbal Water, which is now produced in Sunsweet plants, and more recently established joint venture with coconut water startup C2O, putting founder Ron Greene and his partner Adam Biggs on Sunsweet payroll and rolling out canned line starting Sep 1. Now it's talking to SF-based juice marketer Purity Organic about potential areas of collaboration, starting with copacking services. Since no contracts have been signed, neither Purity founder Greg Holzman, who was encountered at show, nor Tony Gerst, initiative leader for Sunsweet Naturals unit, would comment in detail. But Tony said effort continues push by Sunsweet to position itself as capable copacker who can be useful ally to small brands struggling to get to market in cost-efficient manner despite lower volumes. No equity component is being discussed in this deal, as Purity has stable parent in largest seller of organic tree fruit in US. But 2 cos may collaborate on developing new items, Greg told BBI. More details as they emerge. In case of C2O (BBI, Feb 9), co formed joint venture with Sunsweet earlier this year and has been integrated into Sunsweet Naturals div and brand moved into its extensive broker network.

Sambazon Moves into OJ Realm Seeing Strawberry Banana sku thriving only in Northeast, Sambazon has dropped that sku in 32-oz multiserve size in order to take flier on OJ. Positioned as "OJ with a kick," Amazon OJ flavor is blend of organic acai, apple juice, orange juice and acerola, clocking in at 120 calories per 8-oz serving.  

Skinny Nutritional has won authorization starting mid-Nov for its Skinny Water in 55-unit Big Y grocery chain in New England.  

Always-vocal GT's loyalists are offering their assessments of reformulated GT's kombucha line that's been edging its way back into stores and, judging by voluminous postings on brand's Facebook page, reviews are not uniformly favorable so far. Many are lambasting purportedly new formula for tasting watered-down and a few also take co to task for not changing the labels. It's another sign of how booming brand has been caught in no-win situation in trying to recover from nationwide recall by Whole Foods after kombuchas, mainly GT's Synergy, were found to be out of compliance with regs that limit alcohol content of NA brands to 0.5% by volume. Founder GT Dave has said he's relaunched line as more stable "Enlightened" while investigating possibility of re-launching original formulation as alcoholic brand.

"Its not as good, and as GT has commented himself they altered the recipe to conform to regulations," commented 1 poster, Kristin Hanke. "Yet, they are still using the old labels. This is false advertising. They said they had a surplus of labels and that's why they were using them. But as I ponder this statement further it becomes more clear to me that this is an inappropriate and misleading practice. The labels need to read just how much sugar, alcohol and probiotics are in there as well as explain which probiotics changed and how. This way, people's expectations will be in line with the information given. And we won't feel were being taken for a ride. GT seems to always be on the verge of this . . . seeing how far they can go without having to be fully truthful, until they are asked to be then they do." Noted another poster, Danielle Fisher: "I am just not liking the new formula. It feels nothing like the old one! I have sadly started to cheat and have dabbled in other brands. Why are the others allowed to keep their 'special' kick?" In fairness, some posters say they're grateful to have the brand back.

For his part, GT has argued that reformulated line is "more stable and has slightly lighter personality" but is still "high-quality organic raw authentic Kombucha that you expect from us. It is not watered-down, pasteurized, processed, or refined in any way." Indeed, some involved in segment say they don't detect much change, and have found some bottles they've pulled from retail stores to still be slightly elevated in alcohol (BBI, Oct 22).  

Ball Corp, Bloomfield, Colo-based packaging giant, said John Hayes will step up to ceo role at co's Jan directors meeting, marking the retirement of Dave Hoover after 40-year run with co, last decade as ceo. He'll remain chmn. Hayes, 44 and an 11-yr Ball vet, has been prexy/coo. Hayes' initial connection to Ball was that it was investment banking client of his; he initially moved thru corporate planning, marketing and development roles until heading to Europe in 05, where he rose to prexy of Ball Packaging Europe. He returned to US in 08 as evp/coo and was named prexy this past Jan.  

Oh Yeah protein line is dialing up marketing as it looks toward 2011. Speaking at Coast Brands Summit in Newport Beach, Calif, sales vp Wes Strickland said co is planning to add billboards, mobile signage and bus ads to mix, while broadening print buy from specialty mags to more mainstream lifestyle books. "Nourishing bodies, empowering dreams" tagline intends to tap into aspirational desires. Brand is leveraging endorsement by slugger Albert Pujols, with full-size standups in supermarkets and dedicated signage at Cardinals' stadium in St Louis. Also in endorsement mix are fitness model/actor Whitney Reid and fitness model/trainer Lori Harder. Primary target is fitness buffs age 18-34, with secondary target (tilting female) of those seeking weight loss. Brand has focused to date on SF, LA, San Diego and Phoenix, all markets where Coast network of wholesalers is active, and next is gunning for Dallas, Houston, St Louis, Fla, Carolinas and Memphis. Brand has got 15 demo teams circulating thru the country to support its markets. "Not a shotgun approach," Wes emphasized.

Recall line was launched by Integrated Sports Science (ISS), which started in specialty segment and moved into RTD sector in 07. RTD line is made from de-filtered milk, in contrast to other players' powder base, and delivers 32 g of protein but with relatively low amount of sugar. Oh Yeah is also available in wafers and powders.