Count Golazo soccer-themed energy and hydration line as another brand that used Expo West as platform to unveil revamped look. And after intensive involvement in youth soccer and other activities in Pacific Northwest base, it's followed that up with word that it's signed its first 2 endorsement deals with pro players - Seattle Sounders' DeAndre Yedlin and Portland Timbers' Will Johnson - even as it's also signed on as sponsor of women's pro teams in Seattle (the Reign) and Portland, Ore (the Thorns).

The packaging revamp via Seattle agency Tether stemmed from consumer and retailer research conducted before holiday season, which suggested brand could do better signaling premium, all-natural positioning, specific functionality of each line and flavor entries. Result was simpler, cleaner look that better more subtly emphasizes silhouetted eagle icon and positions both sublines as "natural sports fuel." Canned energy line is further designated as "caffeinated electrolyte drink" to help highlight that it draws caffeine naturally from green coffee beans and yerba mate and employs electrolytes, while bottled Golazo Hydration is designated as "refreshing electrolyte drink," tho its use of coconut water gets is only modestly promoted on front panel so as to minimize clutter, despite increase to 10% from 7%, explained ceo/founder Richard Tait. Small icons are used to better communicate different flavors. All sku's now get heightened play of non-GMO certification - an unusual attainment for the sugar-free subline, given difficulty in sourcing non-GMO stevia and erythritol.

Golazo, recall, was founded in Seattle by former Microsoft exec Tait and counts among its investors Starbucks ceo Howard Schultz, who earlier had invested successfully in Cranium game that Tait developed. Co has been content to build slowly from its Pac NW base, a soccer hotbed boasting broad participation among both Latino and general population. After starting in natural channel, it's been broadening to mainline grocers, and today is sold in 1,500 stores in 8 states, including general banners like Safeway, QFC and Fred Meyer, with Albertson's expected to come aboard later this year, per Richard. For first few years of existence co was based in former car showroom converted to indoor soccer fields in Seattle's trendy Capitol Hill area, but that site is now being redeveloped and co has moved downtown to site near Seattle Sounders' stadium, where it has access to sellout throngs topping 40K for every home game. With new athlete endorsers signed to multi-year deals, Golazo gets access to players who also have roles on their respective national teams, Yedlin on US team and Johnson on Canadian team. The players will kick off partnership via dual Twitter takeover on @VivaGolazo on Thurs ahead of Saturday's Seattle-Portland derby, played blocks away from co's new digs.  

Oatworks ceo David Peters revealed fruits of extensive rethinking of oat-based bev line at recent Expo West. Brand has received completely new label, opting now for bold color wrap with oval window into liquid, while retaining oat icon and adding graphic at bottom of pack that indicates that bottle contains twice the oats of bowl of oatmeal you had for breakfast - "packed with the power of 2 bowls of oatmeal," as copy below states. Previous look of tan-colored wrap with bigger window into naturally colored liquid seemed appropriate for brand trying to stress its oat content, but reality at retail was that dull, brownish hues faded next to other items on shelf, David said. So now packs have gotten bright color keyed to flavor. Similarly, describing drink as "oat smoothie" conjured up image of drinking a bowl of oatmeal, so that's now become "oat-powered fruit smoothie." Meanwhile, logo featuring oat sheaf was tough to decipher - some consumers even misread it as "Oakworks" - and too bottom-heavy for optimal visibility at retail.

Peters hasn't scrapped every feature of prior positioning: packaging and positioning still strive to be gender-neutral, and package has retained oat window that allows shoppers a glimpse of liquid (which, thanks to change of supplier, is now more vibrantly hued, even though recipe hasn't changed). And David has decided that too much was lost in scrapping fruit icons from package's earliest days, so they've been restored, compactly, on lower part of bottle. Co is proceeding thru non-GMO certification process, and that emblem will go on-pack, too. "It feels like we have a brand-new product and a brand-new company," progress that Peters said retailers had confirmed to him at heavily trafficked show.  

US liquid refreshment bev (LRB) market stayed flat in 2013 after 3 years of growth, with vigorous growth in energy and RTD coffee failing to offset impact of CSDs and "value-added water" category dominated by Vitaminwater, per data released today by researcher and financial consultant Beverage Marketing Corp. Total LRB market stood at 30.2 bil gallons in 2013, Bev Marketing estimates.

"Niche categories continued to outperform traditional mass-market categories," co reported, with RTD coffee advancing 6.2% in volume and energy advancing 5.5%, in contrast to CSD segment that dropped 3.2% to 13.3 bil gals and value-added water segment that dropped 6.6% despite strong performance by some participants such as Vitaminwater sibling Smartwater. Bottled water (unenhanced) was up 4.7% by volume. RTD teas edged up 0.4% while fruit bevs fell 1.9%. Sports drinks edged up 0.4%.  

Looking to broaden its appeal, Coca-Cola's Honest Tea brand will capitalize on summer refreshment opportunity with 5-flavor line of lemonade-inflected offerings packed in multiserve packs that seem to target similar offering from Smucker's Santa Cruz Organic brand. Shipping exclusively to Whole Foods stores this month in 32-oz glass bottles priced at $2.49 are Original Lemonade, Berry Hibiscus Lemonade, Mango Lemonade, Mint Limeade and Half & Half Tea & Lemonade. Each is 70 calories per 8-oz serving (vs 100+ calories for SCO offerings), and contains 6-8% juice (except for Half & Half at 4%). In a first for Honest Tea - and another seeming poke at SCO vulnerability among Whole Foods' clientele - line is sweetened with Fair Trade-certified sugar, sourced from Paraguay. That's direction organic pioneer SCO hasn't been willing to take yet. Honest Tea ceo Seth Goldman displayed mockups of line at recent Expo West in Anaheim, Calif, but requested info be embargoed until closer to ship date. He acknowledged then that new entry offers narrower margin than co is accustomed to on its single-serve entries, but said it should further cement brand's tie to key retailer and will receive lotsa display support.  

It's been kind of paradox in beer wholesalers' world: even as some houses have been ditching marginal NA portfolios in order to focus more fully on craft beer and other hot alcoholic segments, we're now seeing procession of 3 major houses who've lately opted to take deep dive into soft drinks. Latest is MillerCoors megadistrib Crescent Crown, whose New Orleans operation is picking up a flock of key Dr Pepper Snapple Group brands as Big 3 soda marketer shutters its regional distribution center in Gonzales, La, and offloads distribution chores outside the co. Effective July 7, Crescent Crown picks up distribution of 7 Up, Snapple, Canada Dry, A&W Root Beer, Sunkist and Hawaiian Punch, among other DPS and allied brands in greater New Orleans area, even as smaller Miller/Heineken house, Baton Rouge Beer Agency, picks up similar array of brands for its territory in southeastern La.

Development follows by a matter of weeks the awarding to MillerCoors megahouse Reyes Beverage Group of Coca-Cola bottling franchise in greater Chicago area, effective early 2015, and move by leading Heineken, Guinness and Brooklyn Brewing distrib, Phoenix-Beehive, to pick up DPS brands in Hudson Valley territory north of co's core NYC service area, starting in Apr. The 3 all rank among top 30 beer houses in country.

Does this signal that long-anticipated blending of beer and soft drink distribution is at hand? And how does that jibe with efforts of other beer houses to exit NAs in favor of crafts? 2d question is easier to answer: abdication trend reflects continuing unhappiness of some beer wholesalers to deal with long learning curve, constrained margins and high flight risk of emerging NA bev brands, which typically move to major soft drink or bottled water system just as they're attaining more lucrative scale. For some who've seen lucrative, fast-growing brands like Monster Energy and Red Bull depart, NA biz has devolved to marginal distraction not worth mgmt time and resources when there are far easier pickin's - at least for now - in booming craft and cider segments. By contrast, the Reyes, Crescent Crown and PB deals offer franchise protection for established, high-volume brands, even if many of them are declining and/or in declining segments.

As for blending of beer and NAs, it's too early to make call on that one. For starters, it's not clear to what extent these distribs plan to mingle the 2 segments on same trucks, and they've been circumspect so far about discussing deals. Reyes has signaled that it will keep them separate, at least in early days, but word is that PB may merge them, in hard-to-work territory where it may be tough to justify maintaining separate fleets of trucks for each. No immediate comment from Crescent Crown on issue, and sales/marketing vp Chris Westcott may not have intended to be taken literally when he told New Orleans Advocate that "we are very excited to be adding these brands to our trucks."

From DPS perspective, moves seem to fly in face of ostensible strategy of controlling as much of its own distribution as possible, but it fits pattern we've seen from other marketers of delegating to outsiders distribution chores in harder-to-manage, often money-losing territories - say, as Red Bull North America has done in opting to self-distribute in many major metros but maintaining indie wholesalers in less populous areas. Recall also that DPS passed on best chance to buttress its company-owned distribution system several years ago when it opted not to reclaim Dr Pepper and other key CSD brands from Coke and Pepsi systems when those brands came into play with acquisition by Coca-Cola Co and PepsiCo of their biggest bottlers. Instead, DPS was happy to be recipient of outsize cash payments for right of KO and PEP systems to continue to handle those brands.  

Live Kombucha Soda, Austin-based brand that's dubbed "raw and organic," has buttressed 4-flavor line with Dreamy Orange and Sparkling Ginger entries. Dreamy Orange is meant to evoke summer pleasures of dreamsicles while Sparkling Ginger "walks the line between a ginger ale and a ginger beer," per co's strategy of rendering kombucha approachable via flavors that are familiar from folks' soft drink consumption habits. It's continuing to play with formulations, reducing stevia content within sweetener blend while dialing up spices for great drinkability, noted marketing dir Alicia Ward. Thus, in regions where Dr Pepper sells well, Live's own Pure Doctor, with its cherry and clove flavor notes, has fared well, she said. Meanwhile, brand continues to expand its retail footprint, lately adding Safeway's Fred Meyer banner. Other flavors are Revive Rootbeer, Living Limon and Culture Cola.  

Proposed penny-per-oz tax in Illinois stalled in State Senate last week when 2 reps expressed uncertainty about moving forward with bill, reported Pekin Daily Times. "I had enough votes to get it out of committee today, but the soda industry convinced (Sens Kwame Raoul and Napolean Harris III) not to vote for it," lamented sponsor Sen Mattie Hunter. Despite his vote, "I applaud the intent of the bill. I think we need to try to do things to reduce the sugar intake among people and the population at large," said Sen Raoul. During hearing, Dr Frank Chaloupka, econ prof at Univ of Chicago-Ill, testified that while prices would go up avg of 18 cents, consumption could be reduced by 150 mil gallons per yr, potentially leading to 9% reduction in obesity levels.  

Geoff Soares, entrepreneur from outside bevs who took over operation of troubled First Fruits copacker in southwest Va under new name Summit Beverage Group, is starting to make progress resuscitating operation that was dogged by yield issues and other challenges. Co located at former Pepsi plant in Marion, Va (where Mt Dew brand may have originally been produced, per historic account) closed on new round of financing in Feb, using proceeds to purchase 2d bottling line, coldfill unit that will relieve some pressure on existing hotfill line in anticipation of significant runs expected by pending launch of Go N'Syde brand (BBI, Mar 21). Soares is adding carbonation capability and will buttress refrigeration equipment base with eye to running CSDs next year. Co has hung onto key existing customers Shadow Beverages (for GNC functional line), Cabana Lemonade and Sunsweet (for its Function functional line), boasts handful of smaller brands and anticipates adding 3-4 more in coming months as sales/marketing chief Christopher Reynolds brings in new biz. Entrepreneur has successfully navigated audit by Food Safety Net Services, hurdled more stringent Costco audit and now is aiming for FDA Part 111 manufacturing practices compliance by Aug. Yield at plant - reported at barely more than 50% by one past customer - has grown from 86% upon his arrival to mid-90s now, said Soares, Indian-born oil refining expert who's turned to other ventures in recent years.

Recall that past owners had reopened shuttered Pepsi plant as First Fruits, with plan to direct portion of proceeds to Christian causes, but were dogged both by production issues and questions about biz practices, leaving Soares to confront serious credibility problem upon his arrival (BBI, May 10). Talking to BBI this week, he stressed that quality of plant itself was never in question - "it was good equipment managed miserably," he said. Tho collapse of First Fruits was augured by cutoff of financing by key investor Doug Poling (son of former Ford Motor ceo), Soares said he's paid Poling his arrears and has had collateral released, with Poling additionally enjoying earnout based on co's future success. Maintaining car metaphor, Soares said Summit has moved from being a Yugo to being a Chevy now, with further improvements expected.  

Real Beanz, RTD coffee brand that's close to launching first consumer marketing campaign, has brought aboard Dr Pepper Snapple Group vet Rich Edgell to newly created post of svp sales, with mandate to help brand move beyond its current strongholds on East Coast and in parts of heartland. Rich had enjoyed 25-year run at DPS, its bottlers and predecessor co Cadbury Schweppes Americas Beverages going back to 1988, before departing post as svp sales & market development for packaged bevs last Nov. Brand creator Serge Freund said brand is showing traction in Northeast, where it goes thru members of NIDA alliance, and in heartland markets where it's harnessed array of indie Coke bottlers (most recently Clark's in Tenn), and is ready to broaden footprint, even as brand's first marketing campaign is due later this spring via agency Jwalk and pr shop 5W. To date, brand hasn't enlisted any DSD shops on West Coast, where it continues to move via UNFI and is close to landing last key holdout among natural grocers, Sprouts. To service chains, Brooklyn-based co has made another key hire: former Celestial Seasonings and Gatorade exec Phil Gates, most recently at marketer of Everlast bev line.  

Fairly or not, Reed's Inc shares fell off a cliff Wed, plunging more than 25% in wake of full-year earnings report that some interpreted as suggesting that co is spending too much on trade promos to generate robust sales. Selloff undid about half of past year's steady runup in shares, dropping REED from $8 range to below $6. Sentiment doesn't appear to have been helped by co's move - as it did a year ago - to offer only full-year results but no Q4 data, forcing investors to back it out of 9-mo figures offered last qtr. Nor was it helped by rambling presentation of founder/ceo Chris Reed, which yielded more-garbled-than-usual SeekingAlpha transcript that formed basis for some investors' sell decisions. And some seem spooked by vaguely explained departures of cfo and coo. "Terrible conference call," per typical post on Yahoo message board. "Very confusing. No solid future earnings projections. He just says that he is very optimistic for this year. What does that mean? The shame of it all is that sales are growing at a good clip."

Despite Wall Street carnage, for full year, gross revenues surged 28% to $42.2 mil, and net revenues rose 24% to $37.3 mil. Branded sodas under Reed's and Virgil's brands were up about 19%, private-label biz rose 44% and Culture Club Kombucha surged 370% as it moves into broader distribution. But promo costs jumped 69% to $4.96 mil, about 12% of gross sales, as co made big bet on seeding kombucha line. So gross profit rose lesser 18% to $10.8 mil. Cash flow dropped by $1 mil to mere $13K, and net loss for year widened to $1.52 mil from $524K a year earlier. Tho co missed on Street expectations of $10 mil in sales for Q4, sales svp Neal Cohane attributed shortfall mainly to cycling of stronger year-earlier private-label numbers, saying branded items continued healthy growth.

On call, Reed promised to dial back trade spend from 12% of gross sales to 9% range, consolidating spend around fewer, national deals. Savings will be funneled to brands' first consumer-pull activities, and co has begun to approach creative shops. Co has been heartened by lift it's enjoyed from recent activities like tie-in to Snoop Dogg's MindGardens project, which intros inner-city youth to organic gardening, in process intro'ing brand to rapper's 22 mil Facebook followers. "We have initiated programs to evaluate the performance of our different marketing efforts and expect to see smarter, more focused marketing spends with less top-line discounting," Reed summarized.

Reed: Occasional 'Meltdowns' Are OK by Him In brief conversation with BBI today, Reed appeared far from chastened, saying selloff reflected fundamental disconnect between investors focused on quarterly earnings and co focused on building brands for long term. "We are OK with things melting down a bit . . . Wall Street's not really a barometer of what's going on out there," he said, alluding to emerging bevcos that are attaining lower growth rates while burning capital. By contrast, "we're self-funding this baby, and it's growing really well." As for criticisms that his presentation was discombobulated, Reed - who'd done one quarterly call last year during break in jury duty - said, "It was the most organized I've ever been," with him positioned in front of big easel on which were listed key bullet points.

Are Beer, Soft Drink Houses the Answer for Kombucha Distribution? Tumult masked one key encouraging development: with many observers pondering what route to retail will be for new breed of promising refrigerated categories, Reed confirmed that co is rapidly assembling network of "mainstream" beer and soft drink distributors for Culture Club, a contrarian move considering that few of these shops operate refrigerated trucks. Move was signaled by earlier assignment of Coors and Corona house Manhattan Beer in NY (BBI, Jan 15 and Feb 7); on call, Reed indicated that DSD options have now been enlisted in Midwest, Maryland, SF, Pacific Northwest and Southeast markets. They're known to include Pepsi house Bernick's in Minn, but Chris and sales chief Neal Cohane declined to confirm others quite yet. Bay Area DSD house Geyser Beverage, aboard a year now, operates refrigerated trucks for items like GT's kombucha, but most of the new enlistees use non-refrigerated trucks, it's believed. Task is eased by 5-month shelf life of Culture Club, far longer than leader GT's 1 month. One lure to DSD shops has been brand's rapid migration from natural-food foothold in Whole Foods and Sprouts to conventional grocers like Kroger, Wegmans, Fresh Market, Giant Eagle and Jewel Osco. (As fermented item, BBI has noticed over years, kombucha holds special fascination for some beer houses, too.) Co is expecting to grow kombucha, now 10% of sales, by 50-100% this year, Chris said.

Management Team: 'Dating' New CFO, May Hire CMO Interim cfo, David Williams, is in "dating" mode with REED and may come on permanently if he demonstrates not just strong financial reporting skills but also data analysis skills that are being sought in new cfo, Chris indicated. As for ex-coo, whose skills overlapped with Reed's own engineering background, Chris said co is more likely to hire a cmo now than to replace coo. Overall goal is to boost margins via improvements in sourcing and operations rather than dodging issue by using expensive trade promos to win big retail displays, Chris indicated. "I guess you'll have to trust us or wait to see in the 2d and 3d quarter the kind of results we generate . . . But I can tell you that there is a big effort and it's a successful effort in unwinding the spend and making it a smarter spend," he told investors.