West Virginia dentist who's been "microbrewing" his own rooibos-based iced tea under Dr B's name for past 5 years used Fancy Food Show as platform for restage, renaming brand more simply as Doc's Tea and reformulating it so it's organic and non-GMO. The dentist, Ken Banks, said he's switched sweetener from xylitol to blend of ¼ gram of cane sugar and monk fruit, with 12-oz glass bottles now clocking in at mere 10 calories. (At $500 per kilogram, monk fruit ain't cheap, but Banks figures it has virtue of keeping out the big boys.) He's offering Island Coconut, Lemongrass, Mango and Pomegranate Acai flavors, with 3 others ready to go: Unflavored, Honeybell Orange and Apple Cinnamon. All are produced entirely at co's own "craft microbrewery" in Inwood, WVa. Thru all changes, he's sticking with South African rooibos (red tea) base, as offering subtle flavor and antioxidants but being naturally caffeine-free. SRP is $2.29.

Brand launched by Ken and his dentist son Christopher had exhibited under Dr B's brand at last year's Fancy Food Show, as way to flag serious thought behind formulation and commitment to quality, but Banks decided name came across as too medicinal. Dr B's has been retained as corporate name (previous name was Tropical Breeze Beverages, which maybe leaned too far away from seriousness of enterprise). With concept and execution finally deemed to be "dead center," Banks is ready to seek distribution up and down East Coast, with some discussions under way with beer houses and other DSD operators. Brand info - not entirely updated yet to reflect rebranding and reformulation - is accessible via DrBsTea.com.  

After grabbing DSD foothold in New England, Blossom Water is lookin' to flesh out presence in that market, while adding NY if right relationship materializes and perhaps moving into Pacific Northwest via broker partnership. Brand is lightly sweetened, all-natural water infused with fruit and flower essences, packed in Snapple-style 16-oz widemouth glass bottle skinned with fruit and floral imagery. Sweetener blend of agave nectar and erythritol clocks in at 45 calories per bottle. Initial flavors are Grapefruit Lilac, Lemon Rose, Plum Jasmine and Pomegranate Geranium. Line is copacked in Pittsburgh area at Castle, whose owner Brian Dworkin is among investors.

Brand is brainchild of ex-financial pro Steve Fortuna, who drew idea working in his cottage garden in Berkshires. He set up LLC in late 2010 and spent 2 years developing line, signing Great State for Boston market last spring and winning approval for Whole Foods' North Atlantic region within 4 months. Other DSD shops came aboard: Northeast Bev in RI early this year, Atlas in Worcester, Mass, this spring and most recently B&E Juice, to work Whole Foods' Northeast div stores in Bridgeport, Conn, area for starters. He's blanketed trendy areas from Martha's Vineyard to specialty markets in Cambridge to reach affluent, early adopters. To build sales force, he's hired pair of former Switch Bev execs displaced by that co's acquisition by Apple & Eve. Brand info at DrinkBlossomWater.com.  

Nestle Waters North America is sending its biggest brand, Nestle Pure Life, into seltzer and essence-water fray, with canned Exotics Sparkling Water line in flavor combos beyond more basic flavors offered in co's imported Perrier essence waters. New line broke in Target stores in Mango Peach Pineapple, Strawberry Dragon Fruit and Tangerine flavors, packed in 8-unit fridgepacks of 12-oz cans priced at $2.99. (Key Lime flavor is on the way.) NWNA said new subline represents effort to pry away consumers whose ties to CSDs have been weakening. Such consumers are believed to have accounted for 34% of 9.5 mil gal increase in sparkling water and seltzer consumption last year, 18% coming from diet soda and 16% from regular soda, per Ipsos data cited by NWNA. "With such a significant shift in consumer preferences and buying habits, we've created a product that will appeal to people who are moving away from carbonated soft drinks and other sugary beverages toward water as healthy hydration," said Pure Life brand mgr Gigi Leporati. Unlike more gourmet-oriented sparkling essence waters, Pure Life's new line is carbonated at comparable levels to conventional CSDs.  

AccelFoods "accelerator" has garnered considerable interest this year among entrepreneurs for its intriguing model and well-placed array of collaborators. Borrowing model from technology accelerators, which seek to bridge gap between gov't-funded basic research and VCs, NY-based platform offers mix of capital and expertise to early-stage cos over 5-month span of program in return for sliver of equity. It recently graduated its first class of 4 food/bev cos, including Whynatte Latte on bev side (BBI, Jun 20), and just kicked off Class 2, whose 4 cos include New Orleans-based meal replacement brand Iconic and Hong Kong-based deviser of mushroom- and adaptogen-based teas and drink mixes called Four Sigma Foods. Submissions are being accepted for Class 3 thru Sep 30. Food/bevcos accepted into program receive initial investment of up to $40K for 6-9% of common equity, with eligibility for additional investment of more than $100K, per AccelFoods Web site, but co is showing that it's willing to operate in highly opportunistic way to meet startups' needs as they emerge.

Cofounders Lauren Jupiter and Jordan Gaspar discussed with BBI recently some of the ways in which model is evolving. The two women put aside careers in law and finance to launch Accel, taking professed leap of faith to fill unmet need of capital and mentorship for earliest-stage food cos. (They weren't thinking bevs at start, tho now category is integral part of mix.) They invested own money in building Web site and were already reviewing initial applications before embarking on initial fundraise last Oct, pulling in over $4 mil despite it being blind fund whose investment targets aren't defined. Concept proved to spark great interest, to tune of drawing mentor community now numbering 110 individuals, many of them leaders in fields like capital raising, sales and law, plus 25 corporate sponsors such as JetBlue, FreshDirect, UNFI and Colicchio restaurant group. Mentors who're currently or recently on bev side include Jim Hoagland (Ito En), Neil Kimberley (Essentia Water), Patrick Jammet and Peter Kaye (both ex-Honest Tea).

Now, Jupiter and Gaspard are harnessing learning from first round to finetune model. Among key changes, the 4 participating cos are substantially larger than in Class 1, which targeted firms doing up to $500K in sales. New class includes cos approaching $1 mil in sales. Nor are they all domestic cos: as noted, Four Sigma is based in Hong Kong, tho it's building out US strategy and some of its 11 current employees are now based here.

For entering Class 2, AccelFoods has concluded that it makes more sense if they're cos that can postpone their capital raise until they graduate, rather than dealing with that distraction during deep immersion in Accel syllabus. That way, they can stay focused on their growth plans. With Class 1, that fortuitously proved case with Whynatte Latte, which had just closed a round before entering class, and with Exo, marketer of cricket-based protein bars which had done small convertible round with insiders.

Another change stems from surprising degree to which board members, such as legal expert Nick Giannuzzi and natural-foods specialist Bob Burke, have proved to be accessible and engaged, given their full plates. This go-round, board members have stepped up their commitments, agreeing to mentor at least 2 cos apiece, Lauren and Jordan noted.

Actual syllabus also is changing. For Class 2, Accel is hosting weeklong food camp at which the 4 entrepreneurial teams will meet their mentoring partners and figure out who needs what and whom in terms of support. That camp, starting Jul 21, is change from Class 1, when all waited until week 6 before a strategic partner came in. Change comes out of Accel founders' realization of how engaged the strategic partners are willing to be. Following boot camp, entrepreneurs will spend 6-7 weeks with Accel's team of 6 in fulltime capacity. Team members include at least one familiar name to bev people: former Vitaminwater exec Tapan Shah, Accel's brand dir there. Another team member, Studio Industries founder Mike Lee, will undertake modest ethnology study for all Class 2 participants. That's outgrowth of study he performed for Class 1 member Jaali Bean. Every core competency will get time on calendar every week. AccelFoods' mentors will be "activated" after Labor Day.

Also enlightening to Accel's founders has been degree to which entrepreneurs, even across food/bev divide, feel they can be of value to each other. Entrepreneurs in Class 1 made it clear they wanted more time together, so contact among Class 2 members will be dialed up at upcoming boot camp. With Class 1 cos having indicated they'd like to stay engaged, Class 2 members also are being intro'd to Class 1 alumni - kind of like having a big brother in a fraternity, noted Jordan. Of course, Class 1 members in any case would continue to maintain some degree of engagement with AccelFoods, which maintains equity in each and holds board seat.

Recall, first class that graduated on Jun 3 included Whynatte Latte, protein bar maker Exo, Kolat nutritional nut spreads and Jaali Bean lentil-based side and soup kits. Besides Iconic and Four Sigma, Class 2 includes JJ's Sweets, which makes coconut milk caramels called Cocomels, and Evoke Healthy Foods, which makes muesli items containing functional ingredients like chia seeds, goji berries and quinoa. Web site: AccelFoods.com.  

For years, marketers of new protein drinks positioned as meal replacements have pointed to sleepy brands like Slim-Fast as potentially easy pickings at retail. But could Slim-Fast be due for jolt of entrepreneurial energy at last? Unilever disclosed this afternoon that it's sold majority stake of Slim-Fast biz to Dallas-based Kainos Capital, successor firm to Hicks Muse whose food investments over years have included likes of Pinnacle Foods, Swift & Co, Ghirardelli Chocolate, Earthbound Farm and Milk Specialties Global - which has supplied whey protein to customers like Muscle Milk. Unilever plans on holding onto minority piece of Slim-Fast, which includes line of protein shakes and has dialed up activity lately with new items like Greek yogurt-based entries. Kainos has named Chris Tisi, ceo of Healthy Delights, to serve as ceo of Slim-Fast, reported Food Business News. Tisi had teamed up with Kainos just in May to collaborate on seeking M&A opportunities, via Tisi's Lifeagen Bio Sciences of Florida, whose holdings include Healthy Delights. "This is a great opportunity to grow the Slim-Fast brand, which already benefits from the highest aided and unaided brand awareness in the weight management category," said Chris. He said he plans to work with retailers to drive "consumer engagement with dynamic marketing support and new product innovation." Deal continues run of M&A activity that's seen Hormel pick up Muscle Milk marketer CytoSport, Lassonde pick up Apple & Eve and Brynwood Partners pick up Juicy Juice just in past 8 days.  

 Communications from Activate principals lately have been terse to point of inscrutability, and BBI misconstrued identity of buyer identified as Unique Beverages. Turns out, it's not marketer of Cascade Ice line based in Wash State but Canadian firm set up under similar name as single-purpose entity by Montreal-based Unique Foods. New co's counsel, Scott Moskol of Burns & Levinson LLP in Boston, speaking for principals Jon Silver and Rick Chartier, cited sensitivity of matter in which cap-dispensed brand has been picked up not directly from parent Rising Beverage but rather from assignment for benefit of creditors. He said he was able to confirm that deal, for undisclosed terms, includes rights to brand locally and internationally (mainly meaning Canada at this point) and associated intellectual property. In establishing entity as Unique Beverages (USA) Inc, he said co wasn't aware there already was bevco operating under similar name . . . Looks like Center for Science in the Public Interest, in stoking fires for stricter regulation of energy drinks last week (BBI, Jun 27), mischaracterized GRAS status of caffeine, regulatory expert Justin Prochnow and others have noted over past few days. In urging FDA to adopt regs that all bevs consumed in a "soda-like" manner be subject to same limits on caffeine that are set forth in 21 CFR 182.1180, CSPI failed to recognize that the reg is not an outright limitation on caffeine content "but, to the contrary, the regulation is an express allowance of caffeine up to an equivalent of 71mg for 12 fluid oz," wrote Justin, of Greenberg Traurig law firm. "Companies are not prohibited from using more caffeine, but must provide evidence of safety through a self-affirmed GRAS assessment," he corrected. GRAS, of course, is short for "generally recognized as safe," characterization that allows items to be marketed as a food or bev rather than as a supplement.

No initial word on what this says or doesn't say about progress at Nawgan, which he joined as prexy exactly a year ago, but Dan Holland is heading back over to alc side of biz with role as ceo of XXIV Karat Wines LLC, fledgling marketer of so-called "grandes cuvees" sparkling wines. Dan confirmed move this morning in brief phone conversation, saying he'd had advisory role to pair of youthful Ariz entrepreneurs behind launch and decided to come aboard full-time when they completed first capital raise in past week. Brand has moved thru Young's Market in home state of Ariz and is about to launch in Calif via Southern Wines, with entrepreneurs relocating to new hq in Newport Beach, Calif. Dan of course is longtime beer and NA distribution exec who moved onto marketers' side in NAs with Activate and Nawgan, which has struggled to popularize Cognizin-based Nawgan-branded brain tonics and lately has added 2d brand, Ornithine-based On Powered Refreshment as it seeks to garner traction after retrenching from earlier capital burn. Its core investor is Japanese conglomerate Kirin, which has been seeking to popularize those functional ingredients. Dan declined to comment on current progress at Nawgan, which was founded by respected medical researcher Rob Paul.  

Agriculture giant Archer Daniels Midland placed big bet on all-natural bev sector continuing to grow with its agreement to acquire Swiss-German leader in natural flavors, Wild Flavors, for $3 bil. Announcement spells conclusion of rigorous bidding process that Wild Flavors founder Dr Hans-Peter Wild had structured to discourage bids from rivals who might be tempted to compromise co's operating independence and downsize staff, and while ADM might seem to fall afoul of that rubric, he seems to have garnered assurances that won't be the case. Agribiz giant said it plans to form new biz unit called Wild Flavors & Specialty Ingredients. Together, the 2 cos "will create one of the leading flavor and ingredient companies in the world with sales approaching $2.5 billion and significant room to grow," said ADM chmn/ceo Patricia Woertz. "Wild Flavors will be able to reach more customers with an expanded portfolio of innovative ingredients," while ADM, "with our own sizeable specialty ingredient business, will have an enhanced platform for commercialization of our higher-margin food and wellness ingredients," she added.

To get deal done, ADM is assuming about $135 mil in debt. Private equity firm Kohlberg, Kravis & Roberts (KKR), which took 35% stake in Wild Flavors in 2010, "has more than tripled its investment," source told Reuters. Deal values Wild Flavors at "hefty multiple of 16.4 times its core earnings against a peer multiple of 11," estimated Reuters. ADM estimates it will generate 100 mil euros within 3 yrs of deal. "I think it will be very difficult for them to extract value at such a high valuation," Berenberg analyst Evgenia Molotova told Reuters. "It's an ambitious target in terms of synergies." ADM said it expects deal to close by year-end, pending regulatory approvals.  

Acquisition of Apple & Eve for $150 mil by Canada's Lassonde Industries, announced Fri, unites 2 better-for-you juice cos that had previously developed working relationship via tie on copacking side. Deal announced Fri by Lassonde and selling equity holder ClearLight Partners offers Lassonde a way to upgrade US presence beyond store brand and copacking side by adding established Apple & Eve consumer brand. It may also offer path for Lassonde's Oasis and other brands in Canada to make inroads into US market. United cos should also be in position to increase presence in major retailers like Walmart and Costco that prefer to carry brands with full North American availability. Tho nominally national, Apple & Eve still is predominantly Northeast player. And deal offers pathway for Apple & Eve to finally get established in Canada, as well as sales, technical and logistical resources it can draw upon across all its businesses. "Our entry into the branded juice business in the United States represents another major milestone in our North American strategy," said Pierre-Paul Lassonde, chmn/ceo of publicly traded co based in Rougemont, Quebec. Lassonde's other brands include Everfresh, Fairlee, Flavür, Fruité, Graves and Rougemont. It's also 2d-largest producer of store-brand juices in US after Cott, which augmented its own juice capabilities a few years ago by acquiring Cliffstar.

Upon closing of transaction, anticipated for later this mo, Lassonde will have 90% equity stake in Apple & Eve while Lassonde family members, thru equity interest in acquiring US subsidiary and $7.5 mil capital contribution to acquisition financing, will own remaining 10%. Plan calls for Apple & Eve to continue to operate independently out of its Port Washington, NY, hq under ceo Gordon Crane, who founded co in 1975. Crane let go last of his equity to ClearLight a few years back and represents rare example of founder who seems to have thrived as hired hand once he cashed out his equity. "I have thoroughly enjoyed working with ClearLight over the past 7 years," Crane said in statement. "They proved to be a value-added partner in growing and improving our business."

Tho it tends to operate quietly, Lassonde employs 2K staffers spread across 14 plants in Canada and US, including at Clement Pappas & Co, which has copacked Apple & Eve's multiserve juices for years. Lassonde acquisition of controlling interest in Pappas in 2011 thereby forged relationship with Crane that eased his comfort level with Lassonde as prospective strategic partner. As 2d-largest mfr of store-branded juice items in US, Lassonde offers tempting degree of "scale and critical mass," A&E marketing exec Cindi Goldberg told BBI this morning. She noted that billion-dollar strategic with commitment to good-for-you side of juice biz should prove to be ideal parent.

Just a week earlier, Lassonde picked up remaining shares in copacker held by Pappas founder Clement David Pappas for $11.1 mil. In arrangement that resembles structure of Apple & Eve deal, Lassonde Industries now owns 90% of equity in Pappas (up from 84% previously) while Lassonde family members own remaining 10%. Pappas has stepped down from board seat and role as special advisor, tho Jean Gattuso continues to run subsidiary as chmn. Lassonde also has been familiar presence in using its sales and distribution muscle to help indie altbevs like Jones Soda and cap-activated Karma crack Canadian market.

For its part, Apple & Eve generates about $15 mil in cash flow from annualized net sales of $190 mil from array of sublines such as Organics, Fruitables fruit/veggie blends, Quenchers, Waterfruits and licensed Sesame Street brand, as well as non-Apple & Eve brands like Seneca. Its own prior acquisition, for undisclosed terms, was a modest one: Switch Beverage, primarily a schools play, which represented an upgrade over Apple & Eve's own Fizz Ed line, which is being discontinued. A key earlier acquisition had brought to Apple & Eve family the big cranberry player Northland, back in 05.

Houlihan Lokey Capital, Inc. acted as financial advisor to Apple & Eve and ClearLight Partners, and Armstrong Teasdale served as company counsel on transaction, which is still subject to regulatory approvals. ClearLight, based in Newport Beach, Calif, noted that it's actively seeking investments for its 3d fund, ClearLight Partners III, which has committed capital of $300 mil.  

Acquisition of Apple & Eve for $150 mil by Canada's Lassonde Industries, announced Fri, unites 2 better-for-you juice cos that had previously developed working relationship via tie on copacking side. Deal announced Fri by Lassonde and selling equity holder ClearLight Partners offers Lassonde a way to upgrade US presence beyond store brand and copacking side by adding established Apple & Eve consumer brand. It may also offer path for Lassonde's Oasis and other brands in Canada to make inroads into US market. United cos should also be in position to increase presence in major retailers like Walmart and Costco that prefer to carry brands with full North American availability. Tho nominally national, Apple & Eve still is predominantly Northeast player. And deal offers pathway for Apple & Eve to finally get established in Canada, as well as sales, technical and logistical resources it can draw upon across all its businesses. "Our entry into the branded juice business in the United States represents another major milestone in our North American strategy," said Pierre-Paul Lassonde, chmn/ceo of publicly traded co based in Rougemont, Quebec. Lassonde's other brands include Everfresh, Fairlee, Flavür, Fruité, Graves and Rougemont. It's also 2d-largest producer of store-brand juices in US after Cott, which augmented its own juice capabilities a few years ago by acquiring Cliffstar.

Upon closing of transaction, anticipated for later this mo, Lassonde will have 90% equity stake in Apple & Eve while Lassonde family members, thru equity interest in acquiring US subsidiary and $7.5 mil capital contribution to acquisition financing, will own remaining 10%. Plan calls for Apple & Eve to continue to operate independently out of its Port Washington, NY, hq under ceo Gordon Crane, who founded co in 1975. Crane let go last of his equity to ClearLight a few years back and represents rare example of founder who seems to have thrived as hired hand once he cashed out his equity. "I have thoroughly enjoyed working with ClearLight over the past 7 years," Crane said in statement. "They proved to be a value-added partner in growing and improving our business."

Tho it tends to operate quietly, Lassonde employs 2K staffers spread across 14 plants in Canada and US, including at Clement Pappas & Co, which has copacked Apple & Eve's multiserve juices for years. Lassonde acquisition of controlling interest in Pappas in 2011 thereby forged relationship with Crane that eased his comfort level with Lassonde as prospective strategic partner. As 2d-largest mfr of store-branded juice items in US, Lassonde offers tempting degree of "scale and critical mass," A&E marketing exec Cindi Goldberg told BBI this morning. She noted that billion-dollar strategic with commitment to good-for-you side of juice biz should prove to be ideal parent.

Just a week earlier, Lassonde picked up remaining shares in copacker held by Pappas founder Clement David Pappas for $11.1 mil. In arrangement that resembles structure of Apple & Eve deal, Lassonde Industries now owns 90% of equity in Pappas (up from 84% previously) while Lassonde family members own remaining 10%. Pappas has stepped down from board seat and role as special advisor, tho Jean Gattuso continues to run subsidiary as chmn. Lassonde also has been familiar presence in using its sales and distribution muscle to help indie altbevs like Jones Soda and cap-activated Karma crack Canadian market.

For its part, Apple & Eve generates about $15 mil in cash flow from annualized net sales of $190 mil from array of sublines such as Organics, Fruitables fruit/veggie blends, Quenchers, Waterfruits and licensed Sesame Street brand, as well as non-Apple & Eve brands like Seneca. Its own prior acquisition, for undisclosed terms, was a modest one: Switch Beverage, primarily a schools play, which represented an upgrade over Apple & Eve's own Fizz Ed line, which is being discontinued. A key earlier acquisition had brought to Apple & Eve family the big cranberry player Northland, back in 05.

Houlihan Lokey Capital, Inc. acted as financial advisor to Apple & Eve and ClearLight Partners, and Armstrong Teasdale served as company counsel on transaction, which is still subject to regulatory approvals. ClearLight, based in Newport Beach, Calif, noted that it's actively seeking investments for its 3d fund, ClearLight Partners III, which has committed capital of $300 mil.