Coca-Cola Bottling Co Consolidated reported essentially flat net income of $27.7 mil for 2013 vs $27.2 mil in 2012, on net sales of $1.6 bil. Performance was marred by Q4 net loss of $4.6 mil, reversing net income of $1.8 mil, on net sales of $394.3 mil, up 2% from year-earlier period. Prexy/coo Henry Flint noted that additional costs were incurred as COKE negotiates expansion of its franchise territory with Coca-Cola, as well as for operational improvements . . . On heels of weaker-than-anticipated 2013, Coca-Cola has cut compensation of key execs including chmn/ceo Muhtar Kent, whose total compensation slipped 33% to $20.4 mil, Domain-B.com newsletter reported. Biggest cuts for Muhtar and others mainly came from change in discount rate used for pension values estimates (which hurt Kent to tune of $6.6 mil of total reported $10.1 mil decrease in compensation), but his bonus fell to $2.2 mil from $6 mil after KO made several performance targets tougher, Domain-B noted. His base salary was unchanged at $1.6 mil. Newsletter noted that about one-fourth of shareholders had earlier expressed displeasure with KO comp levels in "'say-on-pay'" vote last year, up significantly from past years.

Lots more coverage from Expo West in upcoming issues, BBI readers!  

Jones Soda may be viewed by many as an alternative soda but it's still soda, and the broader weakness in CSDs that's afflicted likes of Coke and Pepsi was blamed in part for disappointing Q4 that saw revenues plunge by 32%, in what ceo Jennifer Cue late last week termed a bump in road of Seattle co's ongoing turnaround. Cue cited CSD "headwind" in reporting that 32% sales decline to $2.1 mil. Net loss widened to $1.1 mil from $448K. Gross margin shrank 12.2% from 22.9% a year earlier. Also factors in Q4 letdown were near doubling in promo allowances (counted as an offset to revenue) from $340K to $624K to get brand wide presence during Halloween season, and issues with glass supplier that pushed some production into 2014. For full year, revenue sank 16.4% to $13.7 mil. Gross margin narrowed to 23.8% from 27.4%. Net loss narrowed $1.9 million from $2.9 mil. Despite that loss, cash reserves shrank by only $190K to $1.5 mil at close of year.

"While the 4th quarter was challenging, we believe it was a bump in the road and not indicative of a trend," Cue assured shareholders, adding that while she can't predict when co will reach profitability "2014 will be an important year for us in moving another step closer." As she often does on calls, Cue stressed more efficient style of her regime, citing staff of 27 vs 50 2 years ago, and annual operating expenses that come in at $5 mil vs $11 mil in past. Despite disappointing end to year, shareholders who participated in brief Q&A expressed continued belief in direction of co under Cue, who disclosed several new initiatives on call:

Signs Republic in Tex, Tiptoes Back into East Co finally is filling major distribution void in market deemed to be core territory by signing on spirits house Republic National Distributing in Tex. Brand also is heading back into Costco's Southwest units for 2d year with variety pack and is expanding its Walmart footprint. And after bailing out of East in order to focus on key West, Midwest and Canada territories, brand will reinstate sales staffers in Northeast after seeing some brand success at Stop & Shop chain.

Jones Natural Becomes Jones Stripped CSD backlash puts bigger responsibility on naturally sweetened, 30-calorie Natural line, which is being restaged as Jones Stripped and expanded beyond launch market of Northern Calif in new year. Line employing 3-sweetener blend is getting bolder-colored labels to stand out more on shelves, neck stickers that flag 30-calorie figure and a couple of more renegade flavors in keeping with Jones positioning: Huckleberry and Chipotle Pineapple. It's being picked up next month by Whole Foods units in NorCal and newly added Pacific Northwest region, as well as HEB stores in Tex and in Western Canada. Brand will continue to work with Fiat and its 500E electric car as promo partner.

Prices Cut at Amazon; Caps for Gear Is Back Among other initiatives, co is repricing its 12-packs offered on Amazon.com from $4.15 per glass bottle to $1.69 per bottle, while cans will go out at $1.40. Last year's Caps for Gear promo has been reprised, this time with such partners as Diamondback BMX bikes, Lib Tech skateboards and - fittingly for co famous for running consumer-taken photos on its labels - GoPro cameras. Ditto for Made in Michigan promo that's seen Detroit distributor Intrastate producing bottles featuring Michigan-specific labels, this year contributed by employee's of Jones' Mich wholesalers.  

Quite a few further moves have been happening at Coca-Cola's Atlanta-based Venturing & Emerging Brands incubation unit following promotion of prexy Deryck Van Rensburg to job overseeing Green Mountain Coffee Roasters alliance and succession to his spot by Zico Coconut Water chief Scott Uzzell. Taking Uzzell's vacated post of prexy/gm at Zico in El Segundo, Calif, is longtime VEB exec Tom Larsen, who'd been gm of Illy North America joint venture after Coke career that took him to roles within Minute Maid, global marketing and Coca-Cola North America orgs. Illy role hasn't been filled yet, per memo to troops from Uzzell last week. Meanwhile, in unrelated move, shopper insights expert Darren Marshall, who'd moved from Asian post to marketing role at VEB with vp title only in Nov and was taking on key role in such projects as packaging rethink at Honest Tea, has exited co for evp job at piano maker Steinway, apparently pursuing personal passion. At Natural Products Expo West this past weekend, former Zico sales execs were turning up at all kinds of new companies, saying that sales force there has been abruptly downsized with most sales execs not offered spots within unified sales force being set up to manage broader portfolio of VEB brands.  

Quite a few further moves have been happening at Coca-Cola's Atlanta-based Venturing & Emerging Brands incubation unit following promotion of prexy Deryck Van Rensburg to job overseeing Green Mountain Coffee Roasters alliance and succession to his spot by Zico Coconut Water chief Scott Uzzell. Taking Uzzell's vacated post of prexy/gm at Zico in El Segundo, Calif, is longtime VEB exec Tom Larsen, who'd been gm of Illy North America joint venture after Coke career that took him to roles within Minute Maid, global marketing and Coca-Cola North America orgs. Illy role hasn't been filled yet, per memo to troops from Uzzell last week. Meanwhile, in unrelated move, shopper insights expert Darren Marshall, who'd moved from Asian post to marketing role at VEB with vp title only in Nov and was taking on key role in such projects as packaging rethink at Honest Tea, has exited co for evp job at piano maker Steinway, apparently pursuing personal passion. At Natural Products Expo West this past weekend, former Zico sales execs were turning up at all kinds of new companies, saying that sales force there has been abruptly downsized with most sales execs not offered spots within unified sales force being set up to manage broader portfolio of VEB brands.  

San Francisco's Board of Supervisors unanimously approved measure to prohibit sale of plastic water bottles 21 oz or less on city property, reported SFGate.com. If approved by 2d upcoming vote by supervisors, it will go to mayor for approval. If successful, PET bottle ban would start Oct 1 for indoor events and go into effect in 2016 for outdoor events. Ban "exempts footraces and other athletic events" and city plans to give longtime events such as annual Gay Pride Parade a longer stretch (until 2018) to comply.

Last week, World Health Organization slashed its recommended daily sugar intake in half to 5% of your total calories per day. WHO made rec after reviewing 9K studies and is inviting public input this month. WHO "last revised its sugar guidelines more than a decade ago," noted AP, and at time "the US sugar industry was so incensed it lobbied Congress to threaten to withdraw millions of dollars in funding to WHO." At least for now, WHO's nutrition dir conceded that WHO's sugar limit is "somewhat aspirational." "We should aim for 5% if we can…but 10% is more realistic," allowed Dr Francesco Branca.

While giving drug chain CVS credit for its announcement that it will cease selling cigarettes by this coming Oct, Boston Globe flags sodas, sports drinks and energy drinks as next "dangerous products" that need to go. CVS chief medical officer said it was "paradox" to sell cigarettes while its pharmacies "work with primary care clinicians to treat hypertension, diabetes and other conditions 'exacerbated by smoking.'" So, "if CVS truly cares about all sources of diabetes and other preventable diseases, soda should be the next target," wrote Globe columnist Derrick Jackson last month. He also calls for candy, chips and "other trash food" to be removed from storefronts to prevent impulse buying. Of course, those are all high-velocity moneymakers at chains like CVS.  

Burgeoning at-home bev system biz is about to add another competitor in US mkt now that Malta-based Bevyz Global Ltd (previewed in BBI last spring - May 23, 2013) will debut its multi-bev machine at Int'l Home & Housewares show in Chicago on Sat, reported Bernstein Research's Ali Dibadj. Bevyz system is seen as challenger to both KO/GMCR's K-Cups hot system and SodaStream cold system since it's capable of making both hot and cold as well as carbonated and still bevs. Recall that Bevyz machine, made under Cuisinart name, was developed by SodaStream's former int'l dir Edouard Sterngold. Ali was "interested to find that GMCR and PepsiCo are shareholders" in co as well (BBI had noted that PEP and Verlinvest were investors). Machines are "surprisingly small (11.5 x 12 x 14 inches), use a CO2 tank, could be set up for a water line or refillable water container, and had interchangeable colorful front panels," said Ali after co demo. He tried broad range of drinks including a sparkling apple juice, dairy drinks, teas and hot chocolates. "All tasted good - to our amateur palate," Ali noted. Last yr, Bevyz execs had told BBI they were close to being able to produce beer and other alc bevs with machine too. "The landscape is clearly still evolving and the winners and losers have not yet been fully selected," said Ali. "We believe that KO, PEP and DPS all still likely have opportunity to partner with the right people," he concluded.  

Intriguing single-serve RTD iced tea line made debut via uncommonly deep collaboration between Third Street Chai and Whole Foods. A followup to 1-liter glass-bottle entries that debuted 6 months ago and also exclusive to retail chain for now, vibrant-tasting line is offered in tall, narrow 14-oz glass bottles boasting such high-end attributes as real-brewed tea, organic ingredients and certification as Fair Trade and Non-GMO, but at price of just $1.99. Labels sport brand's eye-catching imagery of leopards and tigers. Line debuts in 9 sku's divvied up among unsweetened, lightly sweetened and more fully sweetened flavors that were winnowed from original 17 flavors conjured up with Whole Foods personnel. Retail sales dir Karen Harbour said formulations were constantly tested against other premium players like Tazo, and eventually winnowed to 13 flavors. These were then sent to regional buyers whose votes decided final 9 chosen to go out nationally in chain. Some exotic, more culinarily oriented flavors were voted down in favor of familiar, down-the-middle ones like Peach Black Tea, Raspberry Black Tea (both made using juice, not flavors), Mint & Honey Green Tea (using mint grown on Oregon farm of sibling co owned by parent Cooper Tea) and Unsweetened Green Tea. All use India-based teas with exception of sole non-tea entry, Pucker-Up Lemonade. In unusual twist, front label states overall content that's comprised of Fair Trade ingredients. As part of collaboration, Whole Foods has promised major promos during Memorial Day, July 4 and Labor Day holiday periods. Despite potential scale of endeavor, Third Street intends for quality reasons to continue self-producing teas at plant near its Boulder, Colo, hq, and may apply for Whole Food loan to help fund needed expansion. (Co obtained Whole Foods loan earlier in its history.)  

Blue Bottle, key in-store coldbrew pioneer at its Bay Area and NY coffee shops, threw its hat into RTD realm with refrigerated New Orleans Iced Coffee employing organic milk from Clover dairy, which like Blue Bottle has deep following in core Northern Calif area but also brings established distribution channel for item. For package, SF-based co opted for gabletop milk carton, similar to 16-oz pack employed by Stumptown at handful of locations but in squatter 10.7-oz format, priced at $3.99, founder/ceo James Freeman told BBI. While Stumptown pack goes in for deep brown background hue, Blue Bottle offers light background with large image of co's icon, silhouetted blue bottle. Despite squat shape, carton comes off as elegant anyway. James said project was inspired by "gross" canned cappuccino he encountered on Virgin flight. Item melds chicory, cane sugar and the Clover milk to offer alternative to iced lattes. "Gentle" pasteurization yields 4-week shelf life, he said. New brand will ride Clover's established distribution channels to get to retail.  

Austin-based Chameleon Cold-Brew, one of earliest brands to move toward national availability with its concentrate line, finally has hit single-serve segment. At Expo it debuted trio of flavors in 10-oz glass bottles with $3.99 SRP: Black Coffee (using Central and S American coffees), Mocha Coffee (with touch of unsweetened chocolate) and Vanilla Coffee (with lightly sweetened vanilla), each with simple labels emblazoned with chameleon icon. As with co's concentrates, refrigerated RTD line boasts 180-day shelf life. It launches in HEB's Central Market chain next month via 60-day exclusive for state of Tex, said cofounder Chris Campbell. Tho Central Market prefers to be serviced by smaller specialist distributor Bertrand's, Chameleon generally is melding mix of UNFI and Presence Marketing to reach broader country. Meanwhile, given Austin base, co is getting out the gate running, given massive South by Southwest fest going on there this week: last night it cosponsored with Tito's Vodka a private party at Threadgills tied to debut of Mike Myers film premier at which Willie Nelson and Asleep at the Wheel performed, with White Russians the drink of choice. "Coffee, evolved," is co's mantra backing coldbrew concept.  

Sweet Leaf Tea cofounder David Smith has chosen coldbrew for next bev foray, joined as investors by former Sweet Leaf colleagues Clayton Christopher, his cofounder there, and Brian Goldberg, his cfo. After roaming Caribbean seas for a stretch with his family after exiting Sweet Leaf at conclusion of transition to Nestle Waters ownership, Austin-based Smith and wife Elizabeth have opted for shelf-stable canned line under High Brew brand, offered in quartet of bold flavors: Double Espresso (at 50 calories per can), Mexican Vanilla, Salted Caramel and Dark Chocolate Mocha (all at 60 calories). Line is packed in 8-oz slim cans, boasts 12-mo shelf life and will retail at $2.49 promoted at $1.99, said western sales dir Edwina Villegas, one of a few ex-Sweet Leaf colleagues who've dropped what they were doing (in her case Purity Organic juices) in order to regroup with Smith. She said brand already has won national acceptance from Whole Foods with possible exception of a div or 2 out east. Co employs cold-brew process on Fair Trade-certified beans to yield concentrate that's then blended with other ingredients and packed via retort process. A portion of proceeds goes to Coffee Kids, nonprofit that assists coffee-farming communities.