Key exec offered snapshot of 138-unit Quick Chek c-store chain in NJ and NY that seeks to be accommodating to prospective suppliers who might advance its mission of focusing on fresh and healthful items. "Unless you try something, you'll never know if it works," said Bill Tencza, sr category mgr for bevs, candy, snacks and beer, summarizing give-it-a-shot philosophy there. He was speaking at BevNet Live conference in NY on Wed. As part of move to offer fresher, healthier items, Quick Chek stores offer made-to-order subs, store-baked bread and increasing array fresh and healthy snacks. Bevs are "huge" priority, said Tencza, who cited such brands as Argo Tea, Cheribundi cherry drinks and new flock of aloe-based lines as worth a try. The food marketing grad who's spent entire career at chain described style that offers supplier prospects 45 minutes to provide detailed pitch but in return expects them "to give me everything up front," including such oft-neglected details as hierarchy of which flavors sell best, in likelihood that stores may not pick up every flavor. New vendors have 6 months to perform and, Bill warned, the time to offer support for your brand and critical info like flavor hierarchy is well before those 6 months have run out and you've received the deletion email. Sampling is key: tho Tencza doesn't expect you to sample all 138 of his stores, 2-hour stints at 30 of the stores can do much to spur interest among shoppers.

Chain's footprint is overwhelmingly in NJ, with just 12 NY stores, and that eases ability to coordinate with DSD distributors. Typical store has 12 bev doors, 250 sku's. CSDs have shrunk from 4 doors in 90s to 2 today. Shelf sets are drawn up for all/winter right after Labor Day but Quick Chek makes point of not rushing into spring/summer sets at outset of year, recognizing that major cos often don't reveal new entries until Mar.

Practical Advice: Don't Rush It, No Need for Complicated Funding Deals, Surprise Your Sampling People From perspective of one who's pitched by hundreds of vendors, Tencza noted that he has impression that lots of early-stage bevcos are being pushed by investors to go broader before they're really ready. Don't do it, he urged. He also stressed that Quick Chek's overriding concern is putting great bevs in the system and selling them, rather than complicated funding formulas and the like. In other words, keep it straightforward. As for price points, his consumers will pay for value - he's got products priced as high as $12.99 for a tin of Charlie Chips, and cold-filled juices seem to be striking a chord, with $5.99-6.99 a sweet spot. As for promos, c-stores like his go in for 2-for's - say, Red Bull 12-oz cans at $2.99-3.19 apiece that are promoted at 2 for $5. If your front line is $1.99, expect to promote it at 2 for $3. Finally, it's not a bad idea to drop in on your sampling teams every now and then, to discourage them from spending their 2 hours texting their friends, he said.  

Coca-Cola's investment in LA Libations - bev incubator's first outside investment - is logical next step as co that's taken on successively more extensive role nurturing Coke's early stage brands moves from "work-for-hire relationship to true partnership," in words of LA Libations cofounder Dino Sarti. Minority investment by Coke's Venturing & Emerging Brands (VEB) incubation unit gives it single seat on LA Libations' board, which Matthew Mitchell is taking, but won't compromise neutrality of LA Libations as go-to option for other cos' brands, Dino insisted. "It's not a ticket to the Coke system. We're a third party," he said. "But it validates the work we've been doing" on such brands as Illy Issimo coffee, Zico Coconut Water, Core Power protein drinks and Honest Tea. As it has in past, LA Libations will continue to accept only single assignment in any bev category.

LA Libations was founded 5 years ago by Sarti, Danny Stepper and Pat Bolden, all former Coke execs who'd also worked for a spell for Icelandic Glacial bottled water. Libations brings what clients have said is compelling reach into major grocery chains, mass merchandisers, club stores and c-stores, tho execs there acknowledge their efforts in natural channel remain a work in progress. Prior alliance with Brands Within Reach was quietly unwound and LA Libations is mulling its next approach to that increasingly important channel. Among other key alliances, LA Libations has increasingly tight relations to the studio Relativity Media (Stepper is ceo of a marketing joint venture with Relativity called Relativity Madvine, as in Madison & Vine), and has taken clients like Evian for marketing support, and it also maintains joint venture on capital side with Colbeck Capital Management, operated by grocery magnate Ron Burkle, Jason Beckman and Jason Colodne. (Colbeck has ties to Relativity.) Brands that LA Libations has developed on its own, like Aloe Gloe and Arriba Horchata Energy, and in which it holds stake, like Chia/Vie, are parked in unit established last Oct called Bevearly with partner Peter Ma, a young associate at Colbeck.

Lenore, Haralambos in DSD Mix for Arriba Rollout, Post-7-Eleven Its exclusive at 7-Eleven running out in Jun, LA Libations has begun to assemble its rollout plan for Arriba Horchata Energy, starting with signing of DSD partners Lenore in San Diego and Haralambos Beverage in LA for early Jun. Canned energy line also is being picked up by Kroger.  

With brand surging 80% on heels of restaging into cans, Hiball finally is ready to hit the gas, adding first staffers beyond 2 partners of past decade, moving into Kroger's mainstream water aisle and intensifying NY push. After operating as 2-man team for brand's decade-long history, co is finally ramping up staff, recruiting half dozen staffers over next month to garner presence in East Coast, Southern Calif, Northern Calif, Tex (where it's rolled out in HEB's coolers) and Chicago, said founder Todd Berardi, who's worked as tandem with Dan Craytor until now. Hiball has been building presence in NY via distributor Rainforest and is entering area's FreshDirect online grocer. It's pushing into c-stores, including likes of Sheetz, Plaid Pantry and My Goods Market. Among new wins, its sparkling energy waters in 16-oz cans have hit 100 of Walmart's Neighborhood Market small-format stores via UNFI, and are also cracking Target's dry shelves in Jul, followed this fall with test in coolers of 40-100 Target stores in both 8-oz bottles and 16-oz cans. And in key milestone, Kroger is promoting brand from fitness set, where it's been available nationally, to much higher-velocity bottled water aisle. Hiball also is offering 4 of its sparkling energy water flavors - Peach, Lemon Lime, Wild Berry and Grapefruit - in 4-packs of 8.4-oz cans exclusively to Whole Foods at SRP of $8.49. Amazon.com and SalesForce.com have performed strongly in online space. It all reps big strides for organic energy brand that took risky step of abandoning unique glass bottles for 16-oz cans associated with more-conventional energy drinks, but at this point move is fully vindicated, said Todd.  

SodaStream International Ltd said revenues edged up 0.5% to $118.2 mil in 1st qtr while net income slid from $12.1 mil a yr ago to $1.8 mil. EPS of 8 cents beat consensus estimates of 2 cents, per Zacks survey. While Q1 results "were generally in line with our expectations" and "reflect strong growth outside the US," ceo Daniel Birnbaum noted, co took hit from "negative impact on soda maker sell-in in the US from the challenging holiday season." Americas revs were down 28% to $34.8 mil, while SODA grew revs double-digits in other geographic mkts: up 17% to $62.5 mil in Western Europe; +28% to $11.9 mil in Asia-Pacific and +34% to $9 mil in Central/Eastern Europe. Revenues from starter kits slipped 25% to $32.2 mil as SODA sold 604,000 units in qtr vs 776,000 in 1st qtr 2013. Consumables revs, tho, increased 15% to $83 mil, an indication that folks are still using machines they've purchased. SODA sold 5.8 mil units of its CO2 refills, over 1 mil more than Q1 2013, and sold 8.4 mil flavor packs vs 7.7 mil.

Will SODA Bend for Pepsi? News this week that Coca-Cola upped its state in Keurig Green Mountain to 16% was taken as indication that "ability for soda giants to dictate flavor consistency likely played a major role" in KO's decision to invest $2 bil, noted Motley Fool blogger. But SODA doesn't look like it wants to go down that path to lure, say, PepsiCo, as Dan noted, "The argument that the consumer wants exact dosing is a reflection of the trap that those beverage companies are." He added: "We empower the consumer with an inexact dosing." While that's great for consumers, KO and PEP "are the ones that pride themselves on the predictably steady taste of their sodas," noted MF. KO's investment in Keurig demonstrates that its "willing to go beyond its network of bottles and fountain sales" to give home-based sales "a shot," and MF believes PEP "will be well-served to follow suit." To attract that biz, SODA would need to intro a machine that allows PEP to control the consistency of the flavor of its drinks. "The best way to win over the pop stars is to give them what they want in order to give consumers the brands that they need," wrote MF.  

Reed's Inc said net revenues increased 10% to $8.95 mil in 1st qtr ended Mar 31. Gross profits rose 15% to just over $2.9 mil in qtr and Reed's upped gross profit margin to 32.4% from 31.2% a yr ago. Reed's net loss of $220K, or $0.02 per share, beat consensus estimates by about a nickel. Reed's core brands surged 19% while its Culture Club Kombucha jumped 143%, noted interim cfo Dave Williams on investor call. In qtr, co's Virgil's CSD line accounted for $3.4 mil of revs, followed by Reed's brand at $3 mil and Culture Club Kombucha at $1.2 mil. Also in mix were $600K in private-label work and $700K in candy/food items. Reed's is "very excited" about Kombucha results thus far, said ceo Chris Reed. Brand is so hot co is having "issues keeping up" with sales and is "scrambling" to fill orders for brand that's already reached #2 in category (albeit very distant #2 to GT's).

Lotsa time on call spent on cost issues from East Coast facility that Chris said raised price on Reed's Ginger Brew even with contract in place. That "novel approach" confronted his team with "take it or leave it" price change that he complained was done "without any legal basis." To combat that price hike, Reed's has tweaked the process to open up production to broader spectrum of copackers and is talking to 3 others, while it upgrades and ramps up production at its hq facility in LA. Improvements already made in LA were reflected in production jump of 67% to 220K cases in qtr. By his "best guess," situation with East Coast packer should be resolved in Q3, Chris said, with Reed's either getting "better pricing" or finding new copacker by then. He also cited such kombucha wins as getting into Safeway stores, big distribution footprint of Manhattan Beer Dist in NY, and 70 or so OTG airport stores. Asked if Reed's would consider a deal for its brands with SodaStream, Chris said, "I think it's a great idea," noting Reed's offers "unique proposition" with superpremium brands. Anticipated new kombucha flavor didn't happen in 2d qtr due to "problems with flavor supply," said Chris, but when it does arrive it will be "a game changer," he promised.  

Usual heavy slate of spring activities of interest to bev people in NY starts tomorrow with NY edition of sold-out BevNet Live. Event running Wed and Thurs in Manhattan's Chelsea district features maintains usual focus on emerging brands, including trademark showdown among those aspiring to be the next Vitaminwater. Info at BevNet.com. That's followed next week by Beverage Forum, co-hosted by Beverage Marketing Corp and Beverage World mag, in NY's Battery Park City nabe. Keynoters there include Pepsi's Al Carey, Nestle Waters' Tim Brown, Starbucks' Michael Conway and Honest Tea's Seth Goldman. Info on that one at BeverageForum.com. Coming further down pike are ingredient showcase Ingredient Marketplace, at city's Javits Center, on Jun 2-3, and Summer Fancy Food Show at same venue Jun 29-Jul 1. Info on those at Marketplace.SupplySideShow.com and SpecialtyFood.com, respectively. BBI hopes to offer comprehensive coverage of all of 'em.  

I Am Enlightened Creations said its dietary supplements have added the 40+ stores in Whole Foods' Midwest region to mix, now putting the shot line in 9 of 11 WF regions . . . Dopamine-infused Aquadopa line has entered Sprouts Farmers Market chain as well as Amazon.com . . . Wat-aah has entered Walmart's 400-unit smaller-format Neighborhood Market chain.  

By now there's flock of maple waters out of Quebec as well as Mass player that uses Canadian sap, but Vertical Waters is lookin' to be US play with greatest mainstream potential, producing Tetra Pak product in upstate NY from maple sap harvested entirely in NY State and western Mass. New brand has moved mainly thru 170-unit Sprouts Farmers Market chain to date, but it's bringing on UNFI imminently and is in discussions with other retailers such as Whole Foods, as it concentrates this year on natural/specialty grocery channel before readying broader push in 2015.

Vertical Water is enterprise of Feronia Forests, sustainable-forestry investment held since 2004 by NY investment firm Emcor, whose mgg partner Paolo Cugnasca acquired acreage in NY's Adirondacks and western Mass' Berkshires as timber/real estate play that could offer portfolio diversification for his investors. Enter Valentina Cugnasca, who after burning out in hedge fund biz went back to school in SF to get degree in sustainability mgmt and created plan to develop more replenishable growth avenues for forest: not just maple water, but ginseng, mushrooms, tree honey and even tree-to-tree adventure park that will lure visitors with elevated obstacle course.

Working with another finance vet, evp Rudy Quagliuolo, as her NY-based partner running day-to-day, and with Cornell Univ forestry expert Dr Michael Farrell and bev consultant Jim Tonkin as advisors, they devised 330-ml pack that tested in 10 Sprouts stores over 8 weeks last fall, sampled twice at each location. Consumer pickup was reassuring, hitting 8 units per store per week, so decision was made to move forward. Team added resealable 500-ml and 1-liter sizes in white box sporting stylized imagery of tree bark and brand name running vertically against blue water drop motif. Vertical Water brand name is meant to signify not just flow of sap thru trees but also overriding sustainability theme that keeps trees vertical rather than simply chopped down as timber. Brand is positioned in part as domestic alternative to coconut water that contains only 15 calories per 8-oz serving. Brand also makes much of its status (and that of Feronia Forests) as certified B corporations that meet elevated level of performance, environmental and legal standards. For now, Valentina and Rudy said, focus is on building distribution with discipline, tho down road co will be able to broaden domestic sourcing of water to include Wis if needed, add aseptic copackers elsewhere in country and extend into flavors and other packaging configurations. Brand info at VerticalWater.com.  

By now there's flock of maple waters out of Quebec as well as Mass player that uses Canadian sap, but Vertical Waters is lookin' to be US play with greatest mainstream potential, producing Tetra Pak product in upstate NY from maple sap harvested entirely in NY State and western Mass. New brand has moved mainly thru 170-unit Sprouts Farmers Market chain to date, but it's bringing on UNFI imminently and is in discussions with other retailers such as Whole Foods, as it concentrates this year on natural/specialty grocery channel before readying broader push in 2015.

Vertical Water is enterprise of Feronia Forests, sustainable-forestry investment held since 2004 by NY investment firm Emcor, whose mgg partner Paolo Cugnasca acquired acreage in NY's Adirondacks and western Mass' Berkshires as timber/real estate play that could offer portfolio diversification for his investors. Enter Valentina Cugnasca, who after burning out in hedge fund biz went back to school in SF to get degree in sustainability mgmt and created plan to develop more replenishable growth avenues for forest: not just maple water, but ginseng, mushrooms, tree honey and even tree-to-tree adventure park that will lure visitors with elevated obstacle course.

Working with another finance vet, evp Rudy Quagliuolo, as her NY-based partner running day-to-day, and with Cornell Univ forestry expert Dr Michael Farrell and bev consultant Jim Tonkin as advisors, they devised 330-ml pack that tested in 10 Sprouts stores over 8 weeks last fall, sampled twice at each location. Consumer pickup was reassuring, hitting 8 units per store per week, so decision was made to move forward. Team added resealable 500-ml and 1-liter sizes in white box sporting stylized imagery of tree bark and brand name running vertically against blue water drop motif. Vertical Water brand name is meant to signify not just flow of sap thru trees but also overriding sustainability theme that keeps trees vertical rather than simply chopped down as timber. Brand is positioned in part as domestic alternative to coconut water that contains only 15 calories per 8-oz serving. Brand also makes much of its status (and that of Feronia Forests) as certified B corporations that meet elevated level of performance, environmental and legal standards. For now, Valentina and Rudy said, focus is on building distribution with discipline, tho down road co will be able to broaden domestic sourcing of water to include Wis if needed, add aseptic copackers elsewhere in country and extend into flavors and other packaging configurations. Brand info at VerticalWater.com.  

It's been segment that's seemed ripe for exploitation in RTD form but has confounded several marketers in past: agua fresca, the sweet fruit refreshers that are staple in Mexico and among Mexican Americans. Latest to throw hat in ring is prolific Califia Farms, which is offering trio of entries in Watermelon Ginger Lime, Strawberry Basil and Kiwi Cactus (with green tea) flavors exclusively to Whole Foods thru summer. Besides offering more complex flavor combos than traditional Horchata and Jamaica entries offered by other marketers, Califia Farms is stepping down sugar content slightly, to no more than 90 calories per serving. New line is packed in similar bulbous plastic bottles to those identified with its Almond Water and Cuties tangerine juice items, but with graphics inspired by Mexican mural art. Packs sport emblem of Non-GMO Project. Whole Foods global grocery purchasing coordinator Dwight Richmond commended new line for "using nothing but the cleanest ingredients." Line is produced by Califia Farms in its facility in San Joaquin Valley, near parent co's extensive agricultural acreage.