As long and bitter legal battle to dissolve partnership of Arizona Iced Tea co-founders winds its way to trial to determine valuation of co, a New York State Supreme Court Judge shot down John Ferolito's bid for pre-trial payout of $200 mil. That "interim payout" was to be towards whatever eventual buyout he receives from Vultaggio Partners for his stake in Arizona Beverages. Justice Timothy Driscoll ruled earlier this week that he must wait for value of biz to be hammered out in court. "There is disagreement about the ability of the AriZona entities to operate successfully if such a large interim payment is ordered," wrote Judge Driscoll. He noted that there's "little question" that AriZona biz is "worth a not-insignificant sum of money" and "there is not surprisingly substantial disagreement among the parties" as to what that sum actually is. Over "nearly five years" the court has seen co valued as low as $400 mil and as much as $4 bil. Judge pointed out that he found no precedent for "such an enormous pre-trial award" and therefore there is no "factual predicate" to justify it. Judge's sympathy to grant request was lessened by Ferolito's refusal to permit discovery on "professed need for cash." In fact, he noted that Ferolito Partners "have received hundreds of millions of dollars" from AriZona over the years, used to "finance a lifestyle that includes multiple houses as well as boats, gambling and ownership of a golf course."

No Receiver Needed Either; Feud is Legendary, Sez Court Judge also denied request to appoint temporary receiver, which he deemed an "extreme remedy" which should only be invoked when "there is a clear evidentiary showing of the necessity for the conservation of the property at issue and the need to protect a party's interest in that property." Of course, AriZona is thriving entity that ain't about to disappear. As this long-time dispute has wound its way to eventual May 21 court date, Judge Driscoll's exasperation at case history seems to have risen. "The dispute between the parties is legion in every respect, including (but not limited to) the number of lawsuits filed by and between the parties, the various venues of those lawsuits, the scope of discovery, the extensive motion practice, and the resources that counsel and the parties have devoted at the trial and appellate level in both the state and federal courts," he noted in decision. Recall that as Ferolito has moved on to other interests - ranging from operating golf course and antique operation called Due Process to acquiring and reviving the legendary guitar brand D'Angelico - Vultaggio has operated co himself, with sons Wesley and Spencer increasingly involved. Partners' 50-50 interest has given each veto power over any major changes intended by other, frustrating Ferolito's desire to liquidate his interest and move on.  

Bev vets, remember Miller Clear Beer? At least this launch turned out to be intentional joke: Minneapolis-based Caribou Coffee drew broad coverage - some of it apparently unsuspecting - of April Fool's Day announcement that it's launching whole-bean Clear Coffee. "Customers asked. Caribou Coffee responded," announcement began. "In nationwide surveys, coffee-drinkers told researchers the #1 complaint they have about their beloved drink is the way it stains. From coffee rings to drips on white dress shirts to the dreaded stains on teeth - a cup of coffee can start your day off right or ruin it right away . . ." Release provided fervent assurance of quality from co's master roaster, Brian Aliffi: "When I tried it for the first time, I couldn't believe it: the flavor notes were all there - citrus, floral and just a hint of nutmeg. I almost cried." Aliffi added: "We've already switched over entirely to Clear Coffee in our headquarters. The cleaning crew loves it."  

Honest Tea, which always make hay for April's Earth Month, is teaming this year with National Park Foundation. Month-long online sweeps dubbed #ParkYourThirst encourages folks to share enthusiasm for being active in great outdoors, even as Coca-Cola-owned organic tea brand donates $25K to NPF. To participate, consumers are asked to share a "selfie" photo on Facebook, Instagram or Twitter using hashtag #ParkYourThirst and including "@HonestTea" in message. Ten winners will get month's supply of Honest Tea and annual parks pass. Twitter Party set for Apr 10 will bring in yet-unidentified special guests to explore why people visit parks and how to sustain these national treasures.  

Reed's Inc has assigned Haralambos Bev to handle its portfolio of bevs in Southern Calif, including Reed's and Virgil's natural CSDs and Reed's Culture Club kombuchas. Assignment represents another instance where LA-based Reed's is taking its refrigerated kombucha line into distributor of shelf-stable bevs, banking that efficient distribution and brand's 150-day shelf life will assure it's fresh when it hits retailers' shelves despite going out on unrefrigerated trucks. It's employing tactic at NY's Manhattan Beer and Minn's Bernicks.  

Count Minta as the latest to try to carve out a niche where brands like Snow failed with a bright-tasting sparkling mint bev. Line launched by former Russian Standard Vodka exec Jenia Kokotuha is pitched as a non-alc mohito that blends 5 different mint flavors plus lime. Diet version, at 5 calories, uses stevia/erythritol blend as sweetener. Unlike earlier entrants who employed stock packs, Jenia's putting emphasis on striking packaging, offering glass and PET bottles somewhat reminiscent of Orangina's, but in green and embossed with mint leaves, at SRP of $1.49 and $1.29 respectively, as well as 10-oz slim can, pack that's not been used yet by other brands in N Amer. That's priced at $1.19. The can should help crack Vegas minibars, cocktail lounges and pools, he figures.

Brand launched in Southern Calif in Feb 2013 via Haralambos Beverage, brought aboard LA Libations a few months later and now is in 7 states out west. Other DSD partners include Walton Bros, Pepsi bottlers in Pac NW. Key retail accounts include Bristol Farms, Gelson's and Kroger stores in Colo, Tex and NorCal, with Fresh N Easy coming aboard just now. Brand has also just cracked Los Angeles Int'l Airport at its "I Love LA" locations at Terminals 2 and 5. Kokotuha's heading east now, hitting Miami and NY. Distribution partners should be announced shortly, rep said.  

Here's another example of innovative idea that languished in hands of supposed strategic ally, but may get a shot at success now that entrepreneur is going it on her own. After 17 years of effort, San Diego anesthesiologist Dr Lou Marsh is hoping to capitalize on broadening recognition that conventional way of guiding surgery patients thru prolonged pre-operative fasts has been inefficient and counterproductive: it exacts steep cost in unused equipment and staff inefficiencies when surgery is cancelled due to patients' inability to maintain the fasts, even as those who've followed protocol are left starved just as their body is about to undergo arduous procedure. Her solution: a carbohydrate-rich, isotonic formulation that clears system in under 2 hours. She's finally brought it to market under name Clearfast, via her co BevMD. It's going out as more nutritious alternative to Gatorade for purpose, in 12-oz bottles priced in $15.95 range and 12-unit cases to medical providers. Since most surgical patients are asked to arrive at hospital on day of surgery and are classed as outpatients, she's hopeful of garnering broad retail footprint for brand. Parallel effort launched by entrepreneurs in Europe under brand name Nutrisurge represents her main competition for now, as both cos seek their footing internationally.

Clear liquid developed with help from Flavorman of Louisville, Ky, derives its carbs from easily digestible maltodextrin to reduce postoperative insulin resistance and hypoglycemia. Also in formula are electrolytes, vitamin A and traces of selenium and zinc. Bev clears stomach within 60 to 90 minutes of consumption. Crucially, it contains label on cap that patient fills out, initials and brings to pre-op nurse so as to definitively answer 3 key questions: what did patient consume, how much and when?

Dr Marsh told BBI she'd come up with patented formulation to address problem long ago, but move to license it to unidentified pharma co for commercialization a decade ago simply didn't pan out: product sat on shelf internally and was never launched, for reasons that were never really clear to her. So she took patent back in order to go it on her own, starting with research collaboration with nursing staff at Dallas Presbyterian Hospital. Her research had quickly showed that "fasting from liquids made no sense at all," and had flimsy underpinnings dating back to single obstetrician who settled on 7 hours as proper duration of pre-op fast back in 1946. Issue was broadly recognized with new guidelines issued by anesthesiologists' assn in 1999, tho nobody in US has moved to support them with endemic bev until now. Co also is marketing protein- and fiber-rich post-operative bev called PostOpt. Info at BevMD.com.  

Kefir marketer Lifeway Foods' shares reversed runup ahead of Mon afternoon earnings release, despite reporting record sales in Q4, with investor apparently concerned about bottom line's move into the red due in part to surging milk costs. LWAY's fourth-qtr net sales surged 26% to $26.3 mil, bringing full-year sales up 20% to $97.5 mil. But Morton Grove, Ill, co reported that gross margin sagged to 18% from 29% a year earlier, primarily because of higher milk costs (up 30%, tho anticipated to ease somewhat now that co has begun to process some of its milk in Wis facility). That helped throw Q4 into $400K net loss, reversing $1.8 mil profit a year earlier. Co brass said sales are off to strong start in 2014, with net sales expected to rise 24% in Q1.

Report came as co exhibited flock of new kefir items at recent Natural Products Expo West that are intended to take it into burgeoning oat-bev, stevia and veggie-bev segments. Lifeway Kefir with Oats offers 1.5 g of soluble oat powder for 11 g of protein, in Blueberry Maple, Apple Cinnamon and Vanilla Plum flavors. Lifeway Perfect 12 Kefir moves LWAY into stevia realm, in indulgent flavors Orange Cream, Apple Pear Cobbler, Triple Berry Tart and Key Lime Pie that still come in at just 12 g of carbs and 110 calories. And co joined rush into veggie bevs with Lifeway Veggie Kefir in Tomato, Cucumber and Beet flavors, offering full serving of veggies in every 8-oz serving.  

Energy drink volume surged 11.8% in c-stores for 4 wks ended Mar 15, per Nielsen data reported by Wells Fargo Securities' Bonnie Herzog. "The energy category continues to demonstrate sequential improvements, led largely by core offerings from MNST, which has been able to continue to consolidate share in this key channel," she noted. Energy volume improved even as discounting eased from -1.6% last 12 wks to -1.3% last 4 wks. Monster outperformed with 16.4% volume gain on avg 1.3% price drop in c-stores last 4 wks. MNST volume gains are mainly driven by core Monster Green as it "continues to outpace companywide growth," said Bonnie. Red Bull volume gains accelerated to +5% (vs 4.3% gain last 12 wks) as avg pricing increased by 1.7% last 4 wks. Rockstar was up double-digits again: +16.1% last 4 wks (+14.8% last 12 wks) with avg price down 3%. That's in line with Rockstar pricing trends in c-stores over longer 12-wk period. Coca-Cola's energy brands (such as NOS and Full Throttle) jumped 24.5% on avg 1.4% price decline while PEP energy volume (mainly Amp) off 4.9% despite avg 4.5% price drop.

CSDs Perform Better, Too Carbonated soft drink volume decline slowed to -0.7% in c-stores over 4 wks thru Mar 15, a much better result compared to -2.3% drop last 12 wks. Avg pricing for CSDs increased 3.8% last 4 wks, up slightly from 12-wk trend. Each of big-3 suppliers improved volume trends in c-stores over past 4 wks, which is not to say they actually grew. Coca-Cola was off only slightly (-0.2%) vs 1.9% decline last 12 wks. PepsiCo cut dropoff rate in half from -3.3% avg last 12 wks to -1.6% in latest period. Dr Pepper Snapple dipped 0.5% vs 2.4% dropoff previous 12 wks. Avg prices for KO (+5.4%) and DPS (+1.8%) increased last 4 wks while PEP avg price drop of 3.9% narrowed from -4.4% over 12-wk period. Private label still struggling in c-stores: volume down 7.5% even with avg price drop of 3.9%.  

Here's offbeat energy play backed by stable of well-connected partners: horchata-style Arriba Horchata Energy has launched nationally in 7-Eleven chain, counts Snoop Dogg among its investor/endorsers and will hit Walmart, Kroger, Safeway and other retailers in Jun. New entry, packed in 11-oz slim can with off-white background, initially in Cinnamon Spice flavor, was launched in collaboration with incubator LA Libations and, via that shop, movie/TV producer Relativity Media, whose stable of properties will be harnessed to build brand awareness. Brand aims to offer differentiated play in fast-growing energy segment while tapping into growing Latino community, noted Tom Burkemper, sr dir of merchandising for NAs, who arrived at chain year and a half ago after long run at Anheuser-Busch. LA Libations principal Danny Stepper stressed that partners are aiming beyond Latinos too, now that awareness of Mexican aguas frescas has seeped out to general market and horchata has moved into such crowd pleasers as flavored RumChata rum brand. Arriba launched on Mar 1 as 90-day chain-wide exclusive in 7-Eleven, via c-store operator's "first, best or only" policy of giving preferential display activity to brands it gets first dibs on. With Arriba's initial velocities encouraging, chain is looking to add coupla sku's soon, with Chocolate, Coffee, Coconut and Caramel flavors in running.

Item employs both milk and rice flour for base, clocks in at 200 calories per can and contains 5 g of protein, tho that's not promoted on label copy. It contains 76 mg of caffeine, via energy blend that includes taurine, guarana and ginseng. SRP is $2.29-2.49 depending on store location, but brand is being heavily promoted at 2 for $4. Tho it's still early days, Burkemper indicated its velocities so far suggest it could prove big seller, if not necessarily threat to Red Bull and Monster. "For a brand with limited equity, with the marketing not kicking in yet and with only 1 sku, it's amazing how well it's doing," and not just at stores in areas with high concentration of Latinos, Tom offered.

For LA Libations, Arriba reps much more aggressive national expansion than with its Aloe Gloe line, which has taken conservative stance to grow slowly, primarily on West Coast, as it educates consumers about core ingredient. In Arriba's case, partners will be tapping Relativity's properties to build awareness, say, via placement in cooler in barber shop featured in reality show starring Detroit Tigers' Miguel Cabrera. Snoop Dogg's ability to get brand news out to his 60 mil social media fans should also provide quick lift in awareness, believes Stepper, who's tapping for his bev clients the contacts he's made in side career in movie biz.

7-Eleven, Amp Energy and Earnhardt Team on New Sour-Grape Flave 7-Eleven has got other things up sleeve to juice energy sales. NASCAR star Dale Earnhardt Jr has teamed with retailer to offer special Dale Jr Sour sour-grape flavor of Pepsi's Amp Energy that launched today, only at 7-Eleven stores. Brand's 16-oz can features driver's #88 Chevrolet SS on graphics. To flog extension, 6 locations around Earnhardt's Charlotte, NC, base will feature special Dale Jr Sour energy stands from which flavor will be sampled, and he's due to make surprise appearance from one of them. Fans also are invited to submit their best #SourFace via Amp's Facebook page for chance to win limited-edition gear, with grand prize winner garnering pair of tix to upcoming race.  

Cott Corp has attracted preliminary buyout interest from private-equity players Blackstone Group and Apollo Global, per unidentified sources cited by Mergermarket. With its private-label CSDs squeezed by branded players' promotional ploys, Cott had said on Feb 5 that it was evaluating strategic alternatives . . . Meanwhile, rumbling that buyer was about to be announced for Muscle Milk marketer CytoSport has died down lately.