New Leaf Brands, which has been strenuously trying to layer on some personality for well-formulated tea line with bland image, seems likely to move on from somewhat strained "official beverage of taste" push that had staffers dressed in striped ref regalia and the like. Instead it's adopted more straightforward "It just tastes better" and is moving in more conventional, but likely impactful, direction by starting to accumulate celeb endorsements - "but only when they come to us," perhaps with request to be investor, said founder Eric Skae. To wit: co just inked multiseason endorsement deal with Steve Smith after NY Giants wide receiver approached the co following 09 promo appearance where New Leaf was among bevs being sampled. He's also investor. Another NFLer is close to being signed, Eric indicated.

Skae credits Smith for being "exactly the type of athlete we want endorsing New Leaf," excelling on field and "relatable" off the field, where he's heavily involved in reaching fans via social media and supports charities like March of Dimes and Joe Girardi's Catch 25 Foundation for Alzheimer's research, and offering appeal in both NY and Calif markets. Alliance runs at least thru end of next season.

Meanwhile, on marketing front New Leaf is dialing up "taste-driven events" like Taste of LA, Orange County Fair, Taste of the Nation and NY's 9th Ave street fest in key markets Calif and Nev (via Coast network), NY, Philadelphia and DC. Sparked by sister who has MS, Eric is also expanding MS Bike Rides starting with 09 event in Westchester County that drew 41 cyclists on New Leaf Team, moving to this year's event in NY (85 riders) and likely expanding to national sponsorship in 2011. That would mean 5 or more rides, incl NY event that would draw 200 cyclists.

Latest flavors additions are Diet Home Made and Diet Half & Half. Due in Jan is lighter version of lemonade subline that sells out within 3-5 days of new production run, Eric said. Also coming down road are all-natural juice cocktails that build off lemonade line. Like lemonades, they'll contain 10% juice, Skae said. Co is looking at aloe and coconut space, too, tho both have gotten crowded lately. "We may or may not do" those, he indicated. Gallons and 16-oz packs may also be in cards. Co currently has 120+ DSD distribs and 10,000+ retail accounts, effort augmented by move into Coast Brands network.  

Red River Beverage Group, based in Shreveport, La, is picking up array of Dr Pepper Snapple brands for territories in Ark and La. Co will pick up brands such as 7 Up, Canada Dry, Snapple and Nehi (but not Dr Pepper itself) in 8 counties in southern Ark, effective Nov 15, and in 4-parish area surrounding Lafayette in south La, effective Dec 6, said prexy/ceo Jeff Outlaw. Brands will buttress portfolio that also includes National Beverage/Sundance, Sunny Delight and Calypso for both territories. Red River also has landed Nesquik for Ark, Jeff said. Recall that Outlaw, operating as Grove Beverage, last spring teamed with country music vets Phil Vassar and Tim Nichols to acquired Pabst distributor Red River (BBI, Apr 6). 

Dean Foods reported this morning that its net profit fell 51% to $24.3 mil, or $0.13 per share. That was a big miss of $0.21 estimate of analyst polled by Thomson Reuters. Dean Foods revenues were up 10.5% to $3.05 bil in qtr, as co said it was able to pass thru higher dairy commodity costs to consumers. "These results are clearly disappointing for us and reflect continued significant challenges in our business, Fresh Dairy Direct-Morningstar," acknowledged chmn/ceo Gregg Engles. "Another weak quarter," with "no turnaround in sight," echoed Goldman Sachs' Judy Hong. Fluid milk volume sales were essentially flat during qtr. Meanwhile, WhiteWave-Alpro div continues to perform well with sales up 8% to $478 mil. Horizon Organic Milk "outpaced" the organic milk segment with sales growth in the "high teens," noted Gregg. Silk was up in "mid-high single digit" range co noted.

"In the near term we expect our Fresh Dairy Direct-Morningstar business to remain challenged as the retail environment continues to be very competitive and volumes across much of the portfolio are soft," added Gregg. "We believe these pressures will continue in the fourth quarter and at least through the first half of next year." Dean will remained pressured, as "price concessions that have been given will continue to impact year-over-year comparisons into 2011, regardless of whether we see a return to historical retail pricing levels or not," according to Gregg. "We clearly are not satisfied with our results, and in order to offset these pressures and improve our financial performance, we remain intensely focused on cost reduction, he summarized. "I'm confident that in time we will get in front of this cost-price squeeze in a way that will be difficult for our competitors to match." At presstime, Dean Foods shares are down 16% to $8.68. Had hit 52-wk low of $8.60 in early morning trading.

New CFO Stepping In Dean Foods also announced today that cfo Jack Callahan will be leaving co effective Dec 1 to become cfo for another unnamed public co. Shaun Mara, who joined Dean in June and serves as svp and chief accounting officer will take over for Jack. Prior to joining Dean, Shaun help post of svp finance for Wm. Wrigley Jr. Co.  

PepsiCo is making yet another foray into coconut water realm, this time staking out space in GNC nutrition chain with joint venture that will develop fortified coconut water items under Phenom brand name. New line is expected to break in GNC's 5,500 US stores in Q2 2011 before rolling out to other retailers. It broadens PEP's role at previously untapped channel, where in May it placed specially devised Gatorade G Series Pro line as part of that brand's broader restage. No details were released yet about composition of line, but it puts another stake in ground of fast-growing sector, which PEP addresses via minority stake in ONE Coconut Water, which is expanding thru Pepsi bottling system, along with acquisition of Brazil's Amacoco and launch of several coconut water sku's under Naked umbrella. Note that ONE already has been moving into enhanced coconut waters on its own.  

Las Vegas-based Xyience, whose Xenergy energy line is hitched to Ultimate Fighting Championship, has installed longtime beer exec John Lennon to serve as prexy, filling top operating spot that was vacated when former ceo Csaba Reider moved on nearly a year ago. John, who quietly began working at Xyience on Nov 1, has had varied career on beer side that's included roles at Wisdom Imports, Guinness' Caribbean operation, Becks, Pyramid Brewing, Thai beer importer Interbev and most recently Pabst, where he served as prexy as co sought and found buyer. Some of those roles had touched on NA side, with Penafiel Mexican water among NAs within Wisdom Portfolio and Guinness stint having included roles at Coke and Pepsi bottlers in region, but this is John's first full-bore push into NAs. "It's new for me," he said, encountered at yesterday's Beer Marketer's Insights conference in NY, where he was prospecting for new wholesalers, "which makes it really exciting." He'll report to ownership group at Xyience; co ultimately is controlled by Fertitta bros, who also own UFC and Station Casino in Vegas. As noted, after period of turmoil, co has come under full control of Fertittas and embarked on national expansion, buoyed by UFC's powerful connection to young male consumers. At co, Mike Levy has overseen finances, Bill Bullard has been liaison to Fertittas and Reuben Rios has run sales but nobody has had broad operating responsibility.  

Bev brands from Jones Zero Calorie Zilch to coconut-water-based Naked smoothie made list of 125 best packaged foods assembled by panel of nutritionists for Nov issue of Women's Health mag. On RTD side, array included Gatorade's pouched Prime carbohydrate-intensive drink, Teas' Tea unsweetened Rose Green tea (with rose petals), Naked 100% Juice Peach Guava Smoothie (whose use of coconut water dramatically knocks down calorie count), Northland Raspberry Pomegranate Goji superjuice, Jones Zero Calorie Zilch (for delivering great taste in flavors like Bubblegum), Skinny Water (for zero calories and "amazing taste") and Powerade Zero (for added B vitamins). Also making cut was pyramid-bagged Lipton Black Tea in Vanilla Truffle Flavor.  

About 5 yrs old now, pink-hued Her energy drink has marshaled array of stunts to try to get on radar of female target. Brand sticks with 8.4-oz slim cans (deemed "cutest" energy size by women in focus groups) and has backed out some of caffeine so consumers won't feel queasy about consuming it several times a day, said ceo Brett Jacobson, whose banking background got him involved with female-targeted consumer product launches like Gillette's Venus razor. So far Beverly Hills, Calif-based brand is targeting Calif, Ariz, Nev and Tex and with Coast Brands' help has cracked chains like Albertson's, Von's, Gelson's, Nugget and Bashas.

Marketing has zigged and zagged around ploys of major brands, as described by Jacobson and marketing dir Bryon Schreckengost. Brand has tied to Indy Racing, which draws audience that's 35% women and offers clean-cut, family men among driver corps, and it just allied with Mothers Against Drunk Driving to get into channels where brand won't be driven out by leaders Red Bull and Monster. Stunts range from pickets outside Lindsay Lohan's jail with "Free Her" signs to in-store displays of 600 4-packs offering consumers chance to win pink Vespa "Scoot-her." On campus, co has shipped 1,000 "lemonade stands" to sororities, along with 25 cases of product that sisters can use in fund-raising activities, as way to get lotsa sampling among young women. Co's retail targets include such non-trad accounts as yoga studios, hair salons and clothing boutiques.  

First Fruits (above story) has gotten copack biz rolling just as another key copacker in region, Hardy Bottling Co, is nearing crossroads. Regional brewer Yuengling has signed letter of intent to acquire former Coors plant in Memphis, Tenn, from Hardy, whose NA clients include AriZona Iced Tea, Jones Soda and Unwind relaxation line. Tho Yuengling hasn't commented so far, it's never been involved on NA side and has booming beer biz to focus on, prompting some speculation that it might decide to exit NA copacking realm once it closes on deal. Brewer is worried about maxing out its Penn and Fla brewing operations as brand continues fast growth and geographic expansion, making Hardy acquisition logical move.  

Pair of Coke and Pepsi vets who resuscitated a shuttered Pepsi bottling plant in southwest Va say they're gathering momentum with strategy of offering broad copacking service set to better-for-you new bev brands. Operating as First Fruits Beverages in town of Marion, prexy/ceo Roger Catarino and evp/coo Jack Tally have enlisted such newer brands as Bai, Hydro One, Soyu, Teany Tea and Bot as clients since starting up in Apr, as well as more established lines like C&C Cola, Roger told BBI. He said Function is about to come over, too. Tho prime focus is hotfill, functional realm, duo say they've installed flexible line that can do hot- and coldfill, in glass or plastic, in size range from 12 oz to 1 liter with right change parts. Interstate 81 location puts them within easy range of Northeast, Southeast and Mid-South cos, as well as major E Coast ports from which co has been shipping out containers of Teany to foreign buyers. Plant is certified as kosher and organic. Two key quality control execs boast 64 yrs' experience between 'em, Roger said. New player is vying in same region as established outfits such as Bowman Apple Products, also near Hwy 81, in Mt Jackson, Va, and Hardy Bottling (story below).

Partners took nearly 2 ½ years to get venture off ground, revamping plant and moving toward LEED energy-efficiency rating. In keeping with scriptural tilt of co name, they're operating on Christian principles, paying full healthcare costs of workers and steering 10% of profits to various ministry work in area that was hard-hit by Pepsi closure. (Some of work moved to other Pepsi/Gatorade facility 30 mi up road.) Partners have aligned 'selves with packaging consultants Zuckerman Honickman and, thru them, with bottle producer Amcor, tho plant runs other makers' packs too. Capacity on 1 shift is about 8 mil 12-pack cases per year. Other key investors are majority owner Doug Poling, attorney who's son of former Ford Motor chief Red Poling, and Pilgrim Capital principals Chris Daley and Chris Wright. Like other copackers, First Fruits will sometimes take equity stake in clients, as it does with weight-loss water SoL'eau. Info at firstfruitsbeverage.com.  

As opposition continues to grow to caffeinated malt bevs, producers like Four Loko are arguing in their defense that products aren't much different than standard bar calls like Red Bull & vodka. At least in some quarters, that's prompting response that maybe those drinks oughta be banned as well. While feds study caffeinated malt bevs, state and local authorities moving forward, latest being Mich Liquor Control Comm, which moved to ban products statewide and gave producers 30 days to pull all product from retail shelves. Decision made after "several studies . . . widespread community concerns . . . the FDA's decision to further investigate" products, LCC announced, as our sibling newsletter Insights Express reported y'day. Meanwhile, in Chicago this week, several local aldermen "introduced a proposal at City Council meeting to ban the sale of caffeinated drinks" throughout city, reports Chicago Now. As proposal is written, drinkers would still be able to order Red Bull and vodkas on premise, but one of sponsoring aldermen said "he would be open to listening to a proposal to stop bartenders from serving such mixed drinks." Uh-oh.