Putting a tax on calories per bev rather than basing it on size would reduce consumption more and "would also be fairer to consumers," said Dr Chen Zhen, lead author of study at Research Triangle Institute. Study funded by Robert Wood Johnson Foundation, which has long advocated higher soda taxes, found a calorie-based tax of "four-hundredths of a penny" per calorie would reduce consumption 9.3% vs 8.6% decline if tax of half a cent per oz, reported NY Times. Basing tax on calorie count not size would add 6 cents to 12-oz Coke and only 4 cents to less caloric 16-oz bottle of Vitaminwater, noted study. "It provides a better incentive to the consumer to switch to lower-calorie drinks," added Dr Chen. "From a public health point of view, it makes a lot of sense to tax the sugar, which is the most harmful part of these drinks," said Harold Goldstein, dir of California Center for Public Health. Sales of sugared bevs have already been in decline and soda tax proposals, most recently in Illinois, don't go over well with public, noted ABA spokesman Chris Gindlesperger. Taxes on sugared bevs have failed "in large part because people don't want it," reminded Chris. Dr Zhen noted he's not advocating a tax on sugared bevs, just pointing out "that if you're going to tax them, the best way of doing that in on the basis of calories. We are trying to stay away from the politics," he added.  

Responding to steady decline in mainstream sales of once-hot nutrient, coalition of marketers of Omega-3 fatty acids is prepping comprehensive communications program that it hopes will provide similar damage control to efforts by milk producers, peanut growers and RV makers in past, Omega-3 proponent said at Virgo's Ingredient Marketplace show at NY's Javits Center yesterday. The ingredient is most often sourced from cold-water fish, tho there are increasing efforts to produce it from fungi and other plant material, too. It's been associated with range of benefits, from inhibiting cognitive decline to averting depression.

Tho global volume of Omega-3's rose 2.8% to 88 metric tons in 2013 and sales rose 11% to $1.79 bil, ingredient has seen sales fall every month since fall 2012 in mainstream retail channels tracked by Nielsen, noted Ellen Schutt, commns dir of Global Organization for EPA and DHA Omega-3s (GOED). How come? Main factor, she said, seems to be "media environment" in which link to prostate cancer and other negative research have been subject of countless stories over past year and a half. GOED research suggests that large numbers of men over age 50 and young women have departed category. Given prostate scare, men's departure is not so surprising, and the women seem to have been scared off just by the negative "background noise," she guesses.

In response, industry coalition has raised $4 mil to date toward $10 mil goal in order to develop trust-building campaign modeled on similar efforts by milk producers, RV makers, peanut growers and others who've had to weather sales adversity. It hopes to be ready to test ads, pr and retail activation by Sep with view to having campaign ready for national airing by Jan. (Initial digital messages, testing in 4 versions, will commence this week.) Target is consumers of age 45-64 who're at stage of life where they should be open to message. So far, coalition is working with 4 marketing agencies to ferret out best approach.

In meantime, employing Edelman research methodology, GOED has studied consumer reactions to 50 Omega-3 items to cull some guidelines that might make marketing more effective. Research indicated the consumers don't believe promises that a given item doesn't create fishy burp; want specific dosages of DHA and EPA components, not just total Omega-3 content; want transparency about country of origin, and would like to see specific scientific references where structure/function claims are made.

Stepan Lipid Brings in Marinol from Europe As often in recent years, Ingredient Marketplace show floor featured intros of new Omega-3s. Among them, Stepan Lipid Nutrition has brought over to North America its highly concentrated Marinol ingredient that's had successful run of 5 years or so in Europe, finding a place in infant nutrition, foods and dietary supplements. Marine-based ingredient is positioned as offering cleaner taste and glyceride structure that averts acid reflux associated with rival ingredients.  

Sunny Delight Beverage Co has tapped into DSD network established for its eponymous shelf-stable line to test juice-based healthier-energy play dubbed SunnyD X, recruiting likes of Honickman Canada Dry operations in Phila and DC, as well as Great State's operations in Boston and NH. Canned line's intent is to target teens with caffeine-free brand that relies on combo of 3 carbohydrates and 7 B-vitamins to offer healthier lift than that of conventional energy plays. It also has 100% RDA of vitamin C. Sparkling juice is offered in Orange, Lemon Lime and Fruit Punch flavors, in 16-oz cans sporting large black X. "SunnyD X offers the energy teens crave, without the ingredients moms tell us concern them such as caffeine and taurine," explained associate marketing dir David Zellen.  

New "revitalizing" iced coffee line being marketed as Uliv Java from Martha Stewart has been picked up by Manhattan Beer in NY and will kick off in city's Whole Foods and Gristedes stores and affluent Hamptons summer playground on Long Island. It's initially being offered in Vanilla and Mocha flavors via blends that include green tea, yerba mate, astragalus, ginseng and other Fair Trade ingredients. Line clocks in at 80 calories per 9.5-oz glass bottle, earning designation "lean," via sweetener blend of cane syrup and erythritol. Brand was created by Stewart's nutritionist, Kathleen Schoen, and personal trainer, Mary Tedesco, who melded coffee and herbs into blend dubbed Lean, evolved concoction to include bottled iced coffee, then brought in MetaBrand a year and a half ago to help with commercialization (BBI, Aug 23 and Oct 4). MetaBrand helped with formulation, branding work and setting up operations, including recruiting former New Leaf Brands cfo David Tsiang to serve as coo. Style maven Stewart herself is a partner and will use her considerable reach via mags, social media and pr to tout brand, as well as assist on some trade calls (as she did in pitching Manhattan Beer). MetaBrand Capital also is investor. Production launches in 2 weeks at milk producer O-At-Ka in upstate NY and brand should be on retail shelves by Jul 4. Gotham Brands will support efforts of Meta Brands and Manhattan Beer in getting brand seeded into city's nooks and crannies. Eric said that, given Stewart's broad awareness and appeal, brand will target all classes of trade, likely adding UNFI to distribution mix for East Coast a bit further down the line. Co is aiming to have landed 1K well-selected retail accounts by Labor Day. Uliv Java also offers bagged organic ground coffee in Lean, Happy and Glow formulations.  

Remember back in Mar we reported on intriguing "augmented reality" bev line slated for national launch in Walgreens and its Duane Reade unit in May, each sku tied to unidentified entertainment icon (BBI, Mar 21)? Well, timeframe slipped a bit, but that Go N'Syde line is trickling into retail now and the mystery icons turn out to be hiphop mogul Jay Z, via his sports lounge/nightclubs dubbed 40/40 Clubs, and crooner Mariah Carey, via her R&B hit Butterfly. They're packed in 16-oz full-wrap PET bottles that taper at the middle, with 40/40 a black-tea-based drink in mustard-colored label and Butterfly an unspecified "melodic beverage inspired by the magic of Mariah Carey," with a hot-pink label. At BBI we haven't had time to play with concept yet (we didn't find brand on shelf in NY yet, but kind Duane Reade mgr pulled a bottle of each from his stock room), but co says holding smartphone device up to Go N'Syde bottle allows consumers to access entertainment network curated by former Def Jam ceo and brand principal Kevin Liles, in collaboration with 40/40 Clubs, "allowing them to 'Go N'Syde' the world of today's biggest icons and events. Customers will be treated to a private experience, blurring the lines between consumption, culture, entertainment - and reality." Content will be constantly refreshed, co promises. As earlier reported, well-connected principals include ceo Kevin Liles, Death Row Records exec Kevyn Lewis, LA entertainment lawyers Ken Hertz and Jordan Yospe. Prime financial backer is investment firm Harborcove, whose prexy Russ Hackmann serves as cfo. More details to come.  

Monster Beverage brass offered quick sketch of 2d-half innovations in pipeline, in otherwise "uneventful" annual meeting, per Morgan Stanley's Dara Mohsenian. At meeting, at which co didn't release any newer sales info, co stressed that it's been refocusing efforts on core Green item, pushing other innovations out to 2d half of year. This summer, folks can expected to see limited-edition black version of hot-selling zero-calorie Ultra line at 7-Eleven, followed by new Ultra flavor late in year. Also in works are limited-edition summer line in Europe in conjunction with MotoGP rider Valentino Rossi, an M3 line in Japan and previously disclosed iced coffee subline under Peace Tea brand.  

Wells Fargo Survey: Bev Sales Rose 4% in C-Stores over Memorial Day; Heaviest Promos on KO Brands Survey of execs managing "tens of thousands" of convenience stores across US indicates bev sales rose 4% over Memorial Day weekend, doubling gain from holiday a year ago, reported Wells Fargo Securities' Bonnie Herzog. "Nearly 80%" of c-store retailers said their sales improved over 2013 holiday. Retailers indicated to Wells Fargo that "improved weather conditions" and "heavy promotions" were key drivers of sales growth last weekend. Also, one-third of respondents cited good weather for long weekend as big traffic driver. Based on c-store retailer responses it appears CSD category "remains under pressure," while "energy, waters and noncarbs all appear to be growing." Based on positive responses to Mem Day, "we believe heading into Q2 earnings, beverage sales should be relatively solid in the c-store channel and should help support Q2 results," said Bonnie.

Promos Help Coca-Cola Outperform Based on survey responses, "we believe KO had the most successful Memorial Day Holiday and has outperformed its peers thus far in Q2," noted Bonnie. C-store retailers peg KO sales growth to be up in 1.5% range vs gains of 0.6% for PEP and 1% for DPS. Promos accelerated in c-stores with "two-thirds" indicating promo activity was up over 2013 weekend, and 26% indicating promos were "over 10% higher" than last yr. No surprise that colas were seen as most heavily promoted category. One retailer reported "nearly every package size of Cola has had a '2-for' deal running all year, led in particular for KO." Overall, KO "has been the most promotional" in c-stores, per retailers, "particularly with multi-purchase promos." Some 59% of respondents reported higher promos for KO items over Mem Day, 46% reported higher promos on PEP items, and 33% reported higher promos on DPS brands.

Energy Gains Accelerating A whopping 83% of c-store retailers indicated to Wells Fargo survey that energy category growth has been faster since Q1. Around 40% of these c-store retailers said energy growth "has exceeded 10%." C-store retailers also indicated that along with colas, energy drinks were the most heavily promo'd category over holiday. More retailers indicated Monster (46%) had more promos over holiday weekend vs Red Bull (33%).