Maybe it's just part of sales pitch to make potential of home-bev makers less ominous to major bevcos, but Bevyz multidrink machine could actually play beneficial role in resuscitating some languishing bev brands, co's ceo said on conference call hosted by Bernstein's Ali Dibadj this week. In discussing prospects for platform that challenges both Keurig hot-bev systems and Sodastream cold-bev systems, Edouard Sterngold noted that in some in-market tests, some somewhat tired brands "actually became rejuvenated" when offered in new format. (Of course, as these were short tests, it's hard to say whether those unidentified brands were just benefitting from novelty that would fade soon enough.)

Nor will machines be pitched as offering cheaper alternative to packaged soft drinks, Edouard indicated. Rather, "we are similar to prices you will find in similar places where public will buy" soft drinks and are "definitely not positioning ourselves as a value drink," he indicated. There is a chance, tho, that consumers will perceive Bevyz-devised drinks as superior in quality: tests have shown that they often taste "fresher, bubblier, fizzier than you would get from a bottle" at retail, especially if bottle's been sitting on shelf a while.

In presentation, Sterngold generally stuck to strategy that co execs had outlined a year ago to BBI (BBI, May 23), indicating that multidrink platform soon will be able to produce not just hot drinks like coffees and cocoas and cold drinks like sodas, iced teas and energy drinks but also soup, beer and cocktails. Only bevs outside system's purview will be wines and spirits, he said. As earlier reported, PepsiCo is investor dating back 5 years ago, and therefore seemingly strong candidate to partner with Bevyz as it responds to Coca-Cola's alliance with Keurig on still-in-development cold-bev maker.

Bevyz launched out-of-home unit weighing nearly 100 pounds and priced at $3,359 in 2012, then added Fresh home system weighing 24 pounds and priced at $299 this year. Next year will come Fresh+ at-home/small-office/home-office unit with greater carbonated-bev capacity, priced at $499, followed in 2016 by next generation of Fresh system priced at $299-399 and offering broader range of options, per presentation deck associated with Sterngold's Bernstein appearance.  

Dr Pepper Snapple Group shares have been downgraded to "underperform" by Wells Fargo Securities' Bonnie Herzog given her concerns about "DPS's positioning and outlook, especially given the challenged US CSD category." WFS is lowering its topline forecasts for DPS by 10 basis points to 0.3% for full yr 2014 and by 70 basis points to 1.8% for 2014, based on "continued pressures on CSDs," category where DPS is overexposed, as well reports of weak sales in WF's own Beverage Buzz survey of over 15K c-stores. Bonnie lowered full-yr 2014 packaged volume estimates to -2%, and to -0.5% for 2015. "We are increasingly concerned that DPS's volume will lag the industry's declines," and that's "further supported by recent Nielsen trends" showing DPS volume and value share and dollar sales fell 2% for 12 wks thru Mar 15, she noted.

TEN Brands Still Struggling; Newbies Taking Shelf Space Based on responses from its 1st qtr Beverage Buzz survey, "we believe DPS's TEN platform continues to struggle," said Bonnie, as "vast majority" of c-store operators say TEN is "generating weak repeat sales." Also the number of retailers that have stopped selling DP10 "has increased over the past several quarters." Another challenge for DPS is keeping shelf space for its "2d tier brands," which Bonnie believes are "most susceptible to losing shelf space to new independent brands over time." Based on talk with Zevia ceo Paddy Spence, "we believe many up-and-coming brands are taking shelf space" and "we expect this trend to continue" as a "greater number of new innovative products" reach market. While "KO and PEP, to a lesser extent, are well-positioned to maintain shelf space," DPS "has the most risk" based on analysis of sales trends for top-3 suppliers' top-5 brands in 2013 vs 2012.

Another warning sign flagged in WFS report: "record levels" of insider selling at DPS during 1st qtr this yr. "Insiders sold 531,848 shares," which is "the most ever sold in a quarter since DPS started trading," wrote Bonnie. "Based on our analysis over the past few years, insider sales generally precede a selloff the following quarter," she added.  

PepsiCo will launch trio of sugar-sweetened colas this summer, one of them as successor to Pepsi Throwback as that gets phased out starting later this year, Beverage Digest reported. The new colas are Pepsi Made With Real Sugar, Pepsi Vanilla Made With Real Sugar and Pepsi Wild Cherry Made With Real Sugar, the 2 flavored entries serving as limited-time offerings thru end of Sep.  

Runa, Brooklyn-based marketer of loose and RTD teas based on Ecuador's energy-laden guayusa leaf, has brought in all-star roster of new investors contributing several mil in new capital, even as it steps up expansion with rollout in Safeway and moves into DSD shops Polar Beverage in New England and New Age in Colo.

Tyler Gage, who cofounded Brooklyn-based co with Dan MacCombie shortly after the Brown Univ alums graduated a few years ago, told BBI that new investors include Zico founder Mark Rampolla, who just exited that co in wake of Coca-Cola's taking full ownership; recently retired Nestle Waters North America chief Kim Jeffery and actor/model Channing Tatum, who'll be heading down to Ecuador in early May to absorb culture in prep for not-yet-determined role in marketing brand. Also investing are coupla music-industry luminaries: songwriter/producer Dr Luke, who's worked with likes of Katy Perry, and hiphop producer/guitarist Mike Dean. Tyler said new capital amounts to "a few million" dollars, enough to support year's ambitious expansion aims.

Guayusa, recall, is Amazon-basin ingredient with similarities to yerba mate; like yerba mate pioneer Guayaki, Gage and MacCombie have made empowering plant's Kichwa growers in Ecuador a core part of co's strategy. Co offers glass-bottle line dubbed "focused energy" in lightly sweetened and unsweetened flavors as well as canned energy drinks, with 120 mg of caffeine, positioned as "clean energy." It also sells loose guayusa and is supplier to braoder-line loose tea cos that have been adding guayusa to their offerings.

Capital raise comes as Runa continues to build out organizational infrastructure, say, with addition of former Glaceau and Zico sales exec TJ Leenders as East Coast dir. Newly enhanced staff is supporting rollout of brand thru Safeway, which is taking 5 of RTD teas and both canned energy sku's. On distribution side, key addition is Polar Beverage of Worcester, Mass, tho Gage stressed that rival house G Housen in Vt, rated as one of brand's best distributors, will remain in mix, with several other members of NIDA alliance expected to take on roles as sub-distributors in territories where Polar isn't as strong. Also in is Denver-based New Age.

Moves come following recent Expo West at which Runa displayed revamped can graphics for its energy line that now employ dark leaf in middle, to garner greater shelf visibility. Among key natural-channel customers, Whole Foods has picked up canned line for its Mid-Atlantic region, carries both cans and bottled teas in Southern Calif region and carries bottles in Fla region. Co has added full-time reps in both Fla and Southern Calif.  

Dunkin' Donuts had entered green tea realm with in-store Iced Green Tea that contains 30% tea sourced from Rainforest Alliance Certified farms. It's highlighting launch with $50K grant to Rainforest Alliance, which adds to $220K sum donated to group by DD since 2010. Coffee chain also is offering Blueberry, Raspberry and Peach iced tea flavors this spring.  

Hawaiian-based coconut water brand, Waikoko, is attacking mainland with canned line adorned with striking can graphics - rendered by local tattoo artist - that play on islands' traditions. Partners Rohn Boyd and Jay Ensworth came out of luxury homebuilding biz to launch brand whose name derives from well-known beach break in Hawaii, tho "wai" also means "water." Brand launched in 17.5-oz can in Hawaii about year and a half ago and hit mainland via move into Haralambos in LA about 3 months ago. It's added Bay Area via Geyser Beverage and Portland via Soda Express. By now mix has grown to 17.5-oz can, just in 100% Pure flavor, at $2.49, and trio of "infusions" in 8.5-oz slim can priced at $1.59: Lemon Lime, Kona Mocha (with both coffee and cocoa) and Island Citrus. The 100% Pure also is available in that can size. The liquid is sourced from Thailand. Brand info at DrinkWaikoko.com.  

Capping years-long effort, Hydro One has landed patent for its use of cinnamon extract for its use in curbing appetite and helping to diabetes sufferers absorb insulin as part of its Rev-D functional line's Glucosafe blend. Patent #8,652,550 in names of inventors Babak Baban and Mark Anthony Fields and assignee Hydro One LLC, pertains to bevs formulated from distilled water, cinnamon extract and sweetener that "are useful in potentiating insulin activity, treating hyperglycemia and maintaining blood sugar levels in a subject afflicted with diabetes," per patent abstract.

Line was launched about a decade ago in Greenwood, SC, by former soccer player Sammy Nasrollahi, who's taken patient approach building brand primarily in Southeast, working Whole Foods and Earth Fare stores. In past month, tho, brand finally cracked Walmart/Sam's Club store, winning approval in 637 stores and embarking on road show from Southeast units up to Philadelphia/NJ area. Brand has also been plying Fresh Market units in Carolinas and Georgia. Meanwhile, founder continues to enlist scientific heavyweights to research team, most recently David Katz, founding dir of Yale's Prevention Prevention Research Center. With things percolating on scientific, organizational and retail fronts, Sammy said he's in hunt for capital to further scale operation now.  

Venerable Austin concentrate brand called Moonshine Sweet Tea - now in hands of family office of unidentified wealthy investor - is planning foray into RTD realm in coming month or 2, looking to fill void left when Sweet Leaf Tea was acquired by Nestle Waters and quickly lost its mojo. Moonshine actually boasts 70+-year history in Tex, mainly at farmer's markets, in hands of Porter family, one of whose members has stayed with brand thru transition to new ownership, said Jordan Reber, transplanted New Yorker who's managing brand. It was acquired last Oct as part of investment portfolio whose useful infrastructure includes range of good and services marketed via direct response, DR production facilities and full-service marketing agency. So Moonshine now has expertise and resources to make aggressive push into market, with print ads and TV likely down road. Co has retained recruiter BevForce to build out bev-conversant team, including gm and sales chief, Reber said.

Moonshine's tea is brewed from actual leaves sourced as special blend from Walters Bay Tea, Tex co that owns gardens in Sri Lanka. It's blended with water and cane sugar at copacker in state and pitched as easier way to make large quantity of sweet tea for hosting occasions like barbecues and as a better value than RTD alternatives. It's available in refrigerated 33-oz hook-handled bottle (and smaller one tailored to c-store chain Royal Blue's shelf reqmts) as well as shelf-stable 5-gal container for foodservice. Eye-catching copper setup resembling whisky still allows consumers to self-sample at retail.

So far, new owners have built solid foodservice biz, including city's thriving food truck scene, 30+ local barbecue restaurants, local Googleplex and campuses of Univ of Tex and Texas A&M. Foodservice momentum by now has carried brand into Carolinas and elsewhere, Reber indicated. Within Tex, co distributes via its own fleet of refrigerated trucks, which maintain flexibility even to resupply on-the-move food trucks. It's even testing waters in NY via Food52.com epicurean market.

Details of RTD aren't set yet, but team is eying 16-oz stippled glass bottle that's not in common use these days, giving it bit of proprietary air, with detailed, antique-looking label. Shelf-stable RTD line will go out at likely price in $1.49-1.79 range, about right for rich-tasting, natural tea whose brand name probably wouldn't carry it at ultrapremium tier of tea market, Jordan indicated.  

With engine firing away on many cylinders already, NY's NA distribution powerhouse Big Geyser keeps adding to bev roster. As co passes 1-year anniversary of picking up Monster Beverage's Monster Energy line, it's won assignment for sister brand Hubert's Lemonade as its first entry in growing lemonade sector, where it's only played tangentially via lemonade-flavored subline of Sparkling Ice. It's also picking up Coca-Cola's new Vitaminwater Energy and Vitaminwater Drops sublines, which debuted at NACS last fall (BBI, Oct 14) and may offer some help in reversing slide of core Vitaminwater brand. Tho BG continues to distribute Vitaminwater and Smartwater even as those brands have segued to Coke system elsewhere in country, it wasn't a no-brainer that it would get latest extensions after it turned down Fruitwater a year ago on grounds that was direct challenger to Ice. Keep in mind Big Geyser is both ally and rival to Coke, inheriting Monster and V8 brands from Coke system but continuing to distribute Vitaminwater, Smartwater, Honest Tea and Illy Caffe.

Assignment of Hubert's would seem to be recognition of work BG's done transforming Monster brand from marginal presence in NY metro to fast-growing challenger to Red Bull in just a year, after brand had languished within systems of MNST's strategic allies Bud and Coke in territory. So now Geyser gets Hubert's as challenger to Calypso Lemonade that's quickly established ardent fan base among youthful consumers, tho it's also alienated some DSD distributors with aggressive price hike a few months ago and has exited bev DSD entirely in some markets in favor of Snyder-Lance's snack houses. Until now Hubert's, named for founder of MNST predecessor co Hansen Beverage, has been moving thru smaller house Preferred. City is rare market where Calypso Lemonade so far hasn't made much of a dent as it's experimented with variety of distributors in recent years.

As reported last fall, lightly carbonated Vitaminwater Energy launches nationally in 11.5-oz slim can in Strawberry Lime, Berry Punch and Mango Orange, priced at $1.99 and promoted at 2 for $3. Like slim-can Starbucks Refreshers entry from PepsiCo, Coke brand garners its energy lift from green coffee bean extract. It clocks in at low 50 calories per can, fact prominently flagged on front panel. Vitaminwater Drops attempts to play in segment developed by brands like Kraft's MiO.  

LA-based Haralambos Beverage Co is adding 3 new counties to its coverage territory in Southern Calif, filling void left by demise of GBL in Ventura, Santa Barbara and San Luis Obispo Counties. HBC owner Tony Haralambos confirmed today that he's heading north into Santa Barbara area, in part to distribute some of wine brands in which he has an interest, tho he acknowledged that it's likely to be tough slog in early going without any hi-volume brands to rely on as he's able to do in his core territory with likes of Snapple and Sparkling Ice. "We're going to take a run at it," he said. "We'll lose money (initially) but it's a long-term play." Addition will make HBC an 8-county operator, including 4 counties around LA plus Kern County, added a year ago. Main new-age rival in area is Jordano family's Pacific Beverage, with stable that includes Red Bull, Sparkling Ice and Jarritos.

GBL was named for initials of its founder in 1960, GB Litchfield, and had prospered over decades with brands like Coors, Snapple and Corona as son Dan and grandson Dan Jr took reins. But co had successively sold off alc brands Corona, Coors Light, Sierra Nevada and most recently Four Loko, and lately lacked critical mass to maintain operations in market where, unlike LA, there can be considerable lag before new brands and concepts get footing. By several accounts, slippage in service had alienated chain retailers, and Tony said one motivation for move north is to protect status of his brands in those chains around LA. GBL's latest portfolio included Xingtea, Hubert's Lemonade, Jones Soda, Steaz, Marley, Reed's and Redline, as well as Popchips snacks. Haralambos said he's got agreement to pick up Xingtea and will make run at some other GBL brands, while exploring opportunities to bring beers, ciders and NAs up from core LA territory. At Pacific Beverage, Jeff Jordano lamented demise of honorable rival but said inspection of GBL warehouse had made it clear "there were not a lot of GP (gross profit) dollars out there." He said he'll pick up Hubert's Lemonade but isn't tempted by many others, given Pacific's emphasis on higher-volume NA brands.