Nuun, marketer of hydration tablets that are fixture in bike shops and other endemic channels, was fastest-growing bevco to make latest Inc magazine list of 1,000 fastest-growing cos, surging 924% over 3 yrs to $2.4 mil, putting it at #320 on overall list. Also on list were Primo Water (+613% to $47 mil, ranked #488), hempmilk producer Living Harvest (+391% to $5.4 mil), Honest Tea (+221% to $38.5 mil) and Intelligentsia Coffee (+69% to $19.3 mil). Lotsa craft brewers also made list, including Shorts, Oskar Blues, Stone, New Holland, Brooklyn, New Glarus, New Belgium and reviving New England regional brewer Narragansett, all up more than 50% for period.  

Believing time is right to dial up awareness of milk-based protein its protein recovery drink, Phase III, Attitude Drinks has brought on marketing/pr shop KCSA to prep for NY launch. As reported, line plays on founder Roy Warren's expertise in shelf-stable milk to offer rare milk-based recovery drink, at time that milk industry's Milk Processor Education Program (MilkPEP) has begun to deploy extensive budget to reposition milk as perfect recovery drink. MilkPEP recently broke ads featuring NBAer Chris Bosh, skater Apolo Anton Ohno and gymnast Shawn Johnson to attest to benefit of low-fat chocolate milk as recovery drink during 2-hr window after activity. Among initial tasks, KCSA will design new Web site for Phase III which will integrate social media, user-generated video, training tips and scientific research, co indicated, and will implement grass-roots pr campaign targeting athletes. As noted, publicly traded Attitude has been in hunt for cash to support launch. It's currently working off $900K brought in a few weeks ago while trying to raise more funds to support subsequent launch phases. 

Liquid Lightning, latest venture of distrib vet Darren Matik, has cracked 500+ on-premise accounts in Great Phila area, incl NJ and Dela, with 3-gal bag-in-box energy line under same name. Now it's expanding distribution on East Coast, adding Exclusive in NY, satellite operation in Wash DC and, starting in Oct, pair of Bud houses in Fla, said consultant Christopher Reynolds, who's advising co. It's been authorized in 200+ Walgreens stores as well as all 243 Duane Reade drugstores in NY. Brand will be featured next Mon at product demo showcase hosted at Natl Beer Wholesalers Assn annual meeting in Chicago. Separately, Herbal Mist, RTD yerba mate line in which Liquid Lightning holds minority stake, also is expanding distribution thru NY and Baltimore/Washington, and has been authorized by Whole Foods' Northeast region and Duane Reade chain. It's enjoyed initial success in limited NY markets as well as Phila and Southern Calif. Darren, recall, earlier operated Victory Beverage, with lines like Red Bull and Skinny Water.  

Great State has won designation as test market for new sports nutrition entry called Peak from Abbott Labs' EAS unit (BBI, Sep 21). Moves continues eventful fall for Bud distributor and NA shop that has recently jousted with Dr Pepper Snapple Group over its carrying of other tea lines than Snapple (BBI, Sep 14) even as it continues to build Boston unit, Blue Coast, and garner momentum for new brands. Great State exec Ron Fournier declined to discuss DPS issues, which apparently led to his house dropping lines like Xingtea and Rob's Really Good from territories where it has Snapple, instead choosing to focus on areas of biz less steeped in controversy. Coconut water Vita Coco, he said, is "off the charts," and Adina Holistics has gotten a lift from new labels and formulation that has seen brand grow beyond 2,000 cases per mo. Great State apparently will be 1 of houses with which Adina tests lower price point (see story above). Like other members of so-called NIDA alliance of Northeast wholesalers, Great State has been expanding role in snack biz, most recently adding Unique Pretzel line that has proved a winner at fellow NIDA member Big Geyser in NY. It's among earliest houses to pick up Bai, RTD line based on coffee berry that just captured a best-product award at InterBev show, and has been taking carefully orchestrated tack with Activate, moving from 50-store test to 75 and now 100+ accounts, to test breadth of appeal of enhanced-water line priced at $2.99. As reported, newly added Xenergy energy line got big liftoff from tie-in to Tedeschi's chain during UFC match in Boston (BBI, Aug 31). Blue Coast unit is still growing, lately adding 2 market mgrs, Ron said. It provides key alternative for new brands to Polar Beverage in Boston market. 

 Redline marketer VPX is taking plunge into bottled coconut-based bevs, with plans to use upcoming NACS c-store expo to showcase new line apparently called Coco Fit. Line packed in 16-oz full-sleeve plastic bottles is infused with high-antioxidant superfruits and features 1,000 int'l units of vitamin D and Omega 3's, ordinarily fat-soluble compounds that were rendered as water-soluble for immersion in aqueous coconut bev. It contains 6 g of sugar. Word is that co has pre-sold about 25,000 cases into current DSD system established for Redline and other VPX lines.

Jones Soda, stressing its core identity as CSD marketer under prexy Bill Meissner, is exiting trio of noncarb lines that had their followings in some regions and among some wholesalers: Jones Organics, Jones Naturals and enhanced water 24c. Still under evaluation, Bill told BBI, is another line, concentration-enhancing Gaba, because it's doing OK in Super Target stores. In any case, co is sitting on $2 mil worth of pharma-grade gaba acquired by founding ceo Peter van Stolk from producer Mitsubishi in Japan. Tho excessive purchase has already been written off, Bill said he may try to unload ingredient in Asia, where gaba use is most developed, either in raw form or as Gaba drinks.

At upcoming NACS show in Atlanta, Jones plans to devote 70% of booth to now-relaunching WhoopAss Energy line (BBI, Sep 24) and other 30% to core glass-bottle Jones Soda line. On WhoopAss front, Jones just signed UFC fighter Ryan Bader, who now is equity shareholder in co. Alliance got off to good start: Ariz-based fighter defeated Antonio Rogerio Nogueira in unanimous decision on Sat.  

Adina for Life is embarking on pricing test of its core Adina Holistics line that could see glass-bottle line drop to as little as $1.49 on-shelf at c-stores, independent grocers and other mass accounts, in effort to ignite brand whose sales seem to sputter whenever brand hits $2 mark. Norm Snyder, coo, said co will test price points that work best in up-and-down-street market in regions like Northern Calif, Northeast and middle of country, at time recession-caught consumers generally are shying away from higher-priced bevs, at least outside accounts like Whole Foods. "I don't know what the answer is but I know it's definitely not $1.99," Norm told BBI. He figures answer lies somewhere in $1.49-1.69 range, with new price structure to be rolled out next year.

For some time, distributors have commented that brand seems to go flat as soon as it hits $2 but shows life when meaningfully cheaper than that. Adina's problem has been that glass bottle, expensive ingredients and long shipping distances have made it hard to make money below $2. (Recall it originally was priced even higher.) With operations-oriented Snyder aboard, co has been taking a whack at its cost of goods without sacrificing margin or quality. One issue has been Okla and Fla locations of copacker Whitlock, an equity partner in co. With Whitlock's Fla site having landed big Ocean Spray plastic-bottle account and closed glass line down, Adina is free now to seek out site closer to Northeast market, Norm said. With most of top brass having Northeast roots, co is also close to signing lease to relocate hq from SF to Conn, as earlier anticipated (BBI, Aug 27).

Adina Ready to Enter Zero-Cal Segment; Coffees Are Reformulated Adina's finally ready to meet needs of calorie-conscious. At NACS show next week in Atlanta, it will sample prototypes of 3 zero-cal entries employing stevia/erythritol blend as sweetener. Co also has found way to reformulate its Adina coffee line, in process simplifying production process, with results also to be on display at co's booth. 

No question, Muscle Milk has been among more coveted brands in bev market, motoring toward likely $300 mil in sales this year on strength of long-established powder biz in nutrition channel and fast-growing RTD version moving thru Pepsi bottling network. But after retaining banker Goldman Sachs earlier this year to solicit bids for Muscle Milk marketer CytoSport (BBI, Mar 30), it appears that tire-kickers that included pharma giant GlaxoSmithKline and Nestle have pretty much retreated by now. What's scared 'em off? Apparently, less the billion-dollar price tag said to be demanded by founders and controlling shareholders, the Pickett family, than spectre of suit brought by Nestle over Muscle Milk brand name. As reported, Nestle, major producer of RTD milk items, has sued CytoSport on grounds that Muscle Milk protein lines don't contain any actual milk. Tho apparently intended as a metaphor, that brand name apparently has caused confusion among countless consumers and irked Nestle, which brought suit even as it seems to have been among those who examined CytoSport books as prospective bidder. (Not clear, if it prevailed, how Nestle would have proceeded.) So for now, at least, it appears Benicia, Calif-based co may remain independent. Among key investors is equity shop TSG Consumer Partners.

It's not clear whether PepsiCo, which has distribution agreement for North America behind RTD versions of Muscle Milk, ever was bidder. But multiple sources list Glaxo as in the mix, creating potential distraction to separate planning for US launch of Lucozade, major sports-drink in Europe. As noted, co has been evaluating launch as part of broader diversification play to hedge against pharma reliance (BBI, Jun 25), at time Gatorade restage appears to have opened things up a bit. It's possible Glaxo's retreat from CytoSport may put that initiative back on front burner. Complicated!  

Call it the Barry Bonds or LeBron of bevs, a superstar brand that lately has been simply bombarded by criticism. At time that gov't has been lobbing more and more grenades vs food/bev cos over health and nutrition claims, POM Wonderful pomegranate juice line has found itself most in crosshairs, more than Vitaminwater, energy drinks or other frequent targets. First, Food & Drug Administration included POM Wonderful among bevy of food/bev marketers to get warning letter over claims early this year (BBI, Mar 4). More recently, marketer controlled by Roll Int'l's Lynda and Stewart Resnick filed pre-emptive lawsuit vs FTC claiming agency lacks authority to change ad standards; was violating co's right to free speech and putting "undue hardship" on co by changing criteria for ad claims (BBI, Sep 21). Both prompted wave of media coverage questioning health claims behind pom line and related supplements and teas. Meanwhile, private class action is proceeding in Fla vs marketer even as juice rival Welch moves against it in LA (BBI, Sep 7). And now, another big shoe has dropped.

Yesterday, the FTC filed complaint against POM claiming "its creators and an executive violated federal law by making false and deceptive claims about disease prevention and treatment," reported AP. That made it dueling complaints over ad claims, in year that has brought gobs of unflattering attention to what has been extensively cited role model for how to create a superbrand. Named in FTC complaint are prexy Matthew Tupper, along with both Resnicks. In announcing suit, FTC also said it reached settlement with Mark Dreher, former head of scientific research and regulatory affairs for POM Wonderful. While not admitting he violated any laws, Mark agreed to settlement "that bars him from making any disease treatment or prevention claims in POM Wonderful advertising unless the claim is backed up" with scientific evidence. All this vs brand that, in contrast to many masquerading as functional lines, unquestionably has invested millions in clinical studies.

Maybe so, but FTC is questioning many POM claims made in newspaper, magazine and online ads. Some of specific marketing language FTC is challenging include: "Clinical studies prove that POM Juice and POMx prevent, reduce the risk of, and treat prostate cancer". Or, "you have 50 percent chance of getting prostate cancer. Listen to me. It is the one thing that will keep your (prostate-specific antigens) normal. You have to drink pomegranate juice. There is nothing else we know of that will keep your PSA in check . . . It's also 40% as effective as Viagra."

"Any consumer who sees POM Wonderful products as a silver bullet against disease has been misled," declared David Vladeck, dir of FTC's Bureau of Consumer Protection. POM, which touts that it has put over $34 mil into research, maintains "it has a right to share its research as it becomes available, especially because its food products do not have risks associated with pharmaceuticals. It's a shame that the government is unable to understand this fundamental distinction, and instead is wasting taxpayer resources to persecute the pomegranate."

Ben & Jerry's Caves on 'All Natural' Claims Meanwhile, it was announced ice cream maker Ben & Jerry's will remove "all natural" phrase from its cartons rather than deal with continued battle with Center for Science in the Public Interest. Activist group last month complained that use of "all natural" phrase was not valid "if products contain alkalized cocoa, corn syrup, hydrogenated oil or other ingredients that are not natural," reported AP. A rep for Ben & Jerry's, now a unit of Unilever, said change would happen "gradually" across product line, and that it wasn't changing any recipes, just removing phrase. "Ben & Jerry's has always been a company that tried to source as responsibly as possible, label our products accordingly and let it all out there for people to see," said Sean Greenwood. "But this takes away any misconceptions for people." CSPI noted that it wasn't a question of any ingredients offering health risk to consumers, just fairness in labeling. It's issue that lotsa bevcos might be wise to give some thought in new climate.

>Our guest columnist Diogenes offers his take on potential AB InBev purchase of SABMiller. He's got no fear, and indeed welcomes mega brewer deals.

By Diogenes

Years ago, the mating dance of the brewing giants ABInBev and SABMiller that is playing out in industry media almost daily would have had craft brewers shaking in their brewing boots. Not today.

In the 1990s, Anheuser-Busch, Miller and Coors could command attention from their wholesalers with the so-called equity agreements and August Busch's "100% share of mind" dictum. Today, craft brewers are poised to move well beyond 10% of the US beer market and US distributors are eagerly marketing and selling craft brands.

Global investment bankers are salivating over the potential takeover of the world's 2d largest brewer, SABMiller by the world's largest Anheuser Busch InBev, and/or possible combinations with Diageo or Coke or Pepsi. Meanwhile, in the craft-rich US market, the US megabrewers, AB and MillerCoors, have lost nearly 18 million barrels of production in the last five years, a drop in volume of 10%.

I believe the potential global combination of ABInBev and SAB would help craft brewers by keeping the megabrewers focused on the complicated consolidation of their new venture instead of their oft-lamented "under-indexing" in the high-end of the US beer business.

Think of it this way: if you were CEO of ABInBev, what would you rather do-buy SAB to the adoring applause of the international banking community, or try to figure out how to address the growing craft segment in the USA and arrest the decline of light lager beers?

ABInBev never has been totally committed to the American craft beer segment. Instead they have worked on extensions of the Bud and Michelob portfolios: Bud Light Lime, Bud Light Platinum, Michelob Ultra and the fruit-flavored 'rita family.

Still, MillerCoors' Blue Moon brand is bigger than Sam Adams. If you combine Blue Moon with Leinenkugel, Shock Top, Goose Island and Blue Point, you get 3.5 million barrels of production last year. The entire craft segment (using the Brewers Association definition) is between 15 and 16 million barrels.

So if the craft+crafty segment is 20 taps at your favorite pub, the big guys get three or maybe four of them. But as we have learned recently, it is increasingly unlikely that one of those taps is a light lager.

As one brewing industry insider told me recently: "Blue Moon is not going to move the needle." Three and a half million barrels is nothing compared to the 20 million barrel hole that has opened.

On the other hand, the world's bankers will likely be thrilled by Carlos Brito's streamlining of SAB's holdings in Africa, Eastern Europe and South America. Brito will no doubt garner more kudos from the pundits of the business world. And he will certainly squeeze more profit from the new colossus.

Both of the brewing giants reportedly still are shopping for craft brewers. There will be more acquisitions. But one has to wonder if the big guys will ever figure out a way to play a dominant role in the US craft segment and turn around their mega-brands.

The craft segment has greatly disrupted the US beer world, which the late Bob Weinberg once famously predicted would be carved up by two giant brewers by now. The sagacious Weinberg was right about the consolidation into two megabrewers, but he failed to see that craft brewers would take significant market share from the big guys.

I think the big guys are also struggling with the irony that the more marketing muscle they invest in their craft-like brands, the more they will convert mainstream beer drinkers to the craft segment.

So bring on an ABInBev-SAB merger or a like combination. It will be good for craft brewers.