After years of sticking to curvy but small glass bottles, Q Drinks mixer line has finally taken plunge into cans, adding 12-oz Rexam slim cans in all 7 flavors from original Tonic brand (the "Q" stands for "quinine") to Kola, Ginger and Grapefruit. Brand creator Jordan Silbert allowed that it had been agonizing decision for co that has prided itself on go-slow, minimalist approach, but greenlight was hastened when Target chose to pickup up Tonic, Ginger and Club cans for 50-store test. "That helped us make the decision," Jordan said. Four-packs of the 12-oz cans go out at $5.99 vs $7.99 for the 4-packs of 8-oz bottles. Offering far more liquid at a far lower price appealed to the game theory expertise of co's mentor, Yale prof and Honest Tea cofounder Barry Nalebuff, joked Jordan. New pack should allow brand to beef up its up-and-down-street presence, working lunch occasions and the like, as well as groceries. Addition comes as sales exec Scott Miller has gotten brand into such mainstream and natural chains as HEB, Sprout's and Earth Fare. Brand also enjoyed successful holiday-period run in Costco, "in line" foray not tied to brand road show.  

Purity Organic continues to broaden its product range even as it prepares to step up consumer outreach activities under new marketing dir, including possible foray into paid media in coming year. At Fancy Food, co debuted its first unsweetened product, Unsweetened Black Tea, joining its recently launched 4-sku tea subline, even as it extended its coconut water line with a chocolate version, concept pioneered a few years back by Zico. Recall this is organic juice brand that was launched by largest marketer of organic tree fruit in US, based in SF, and fortified by investment and expertise from First Beverage Group. Newly aboard team of prexy Dave Minnick is Selena Hoover, who had good run on Vitaminwater in New England thru its acquisition by Coca-Cola, went on to stint at startup Boston agency before being coaxed back to Vitaminwater by Coke, then moved on to Unreal natural candy startup of some ex-Vitaminwater people before signing on with Purity Organic. On Selena's agenda is to expand and deepen field marketing activities, currently operating out of NorCal, SoCal, New England and NY regions, and test brand's first media spend in its home market of SF, likely including out-of-home and highly targetable digital radio platforms such as Spotify and Pandora. That will include decision on what brand's defining motor vehicle is for in-market activities,

Hint revealed at show that it's undertaken extensive rebranding even as it added 3d leg to stool of sublines with PET version of carbonated Hint Fizz line. New push picks up on newly trademarked "Water made tasty" as identifier, after years of riding "Drink water, not sugar." It's also among Fancy Food exhibitors, along with Purity Organic (story below), that have reached stage of development where paid media might enter mix. Hint is among several dozen bev exhibitors at Fancy Food Show that opened yesterday at Moscone Center in SF and continues thru Tues.

Half-liter PET bottles shipping in late Feb are line-priced with existing 12-oz longneck glass bottles but eschew straight-walled package shape of sweetened brands like Sparkling Ice. Subline starts with 4 existing Fizz flavors and adds Grapefruit Sparkling, new flavor that may or may not be added to glass-bottle array, and goes out in 12-unit cases, not 24's as with other 2 sublines. Core, noncrab Hint line picks up Peach flavor that's been a favorite on Fizz side and also adds Crisp Apple.

Rebranding is intended to unify look of Hint and Hint Fizz lines, push look further upscale from somewhat rudimentary graphic look and eliminate consumer confusion over what "essence water" means by dropping that phrase and instead denoting flavors as "Unsweet Blood Orange Water," for instance. "If Vitaminwater can call itself a water, then we should be able to call ourselves a water," drily noted coo Theo Goldin, referring to use without challenge of water descriptor by highly sweetened brands like Vitaminwater and Fruitwater in seeming violation of FDA regs. Elimination of flavor color band at top of label allows co to increase size of vertical Hint font, now at left side of label, even as resolution of fruit imagery has been improved and fruit splashes given greater appetite appeal. Label also adds "Have a Hint" disk whose circumference carries language such as "zero calories" and "zero fake" (apparent dig at brands like Sparkling Ice). Rear of label adds testimonials from consumers.

Marketing vp Alyssa Raine said co continues to refine approach, eyeing paid media for first time, with outdoor ads likely in NY and NorCal markets, and perhaps SoCal too. Brand will tilt events it gets involved with more toward those that can be leveraged on national basis rather than strictly local ones. It also will engage in more retailer shopper programs. And it's returning for 2d year to role as exclusive water for Whole Food's Whole Planet program, which extends microcredit to 3d-world entrepreneurs, among other sponsors including Teas' Tea and Pepsi's Naked, Izze and Stacy's brands.

Co, which already has owned dozens of trademarks, lately has added a few more, lawyer Theo noted with satisfaction, nailing down "the un-soda" and "water made tasty," as brand seeks to play on consumers' increasing dissatisfaction with diet CSDs while improving appeal of its own proposition.  

Taco Bell is spicing up its bev offerings in what fast feeder describes as its "largest expansion of beverages" in 51-year history. Taco Bell will add 3 new CSDs and 3 noncarbs. CSDs are Manzanita Sol, Diet Mtn Dew Raja Blast and Mtn Dew Sangrita Blast. Also new in mix will be 2 new flavors of Pepsi's Brisk, Mango Fiesta along with "refreshing mix" of Brisk Iced Tea and Lemonade. Taco Bell will also start selling SoBe Lifewater Yumberry Pomegranate. New bevs will be priced to move quickly, and in large quantities: $1.39 for 16-oz cup, $1.49 for 20-oz, $1.69 for 30-oz and a mere $1.70 for 40-oz . . . Domino's pizza chain said it's extended exclusive bev deal with Coca-Cola via new multi-year deal. Terms weren't disclosed.  

Even as Body Armor clarifies its positioning as all-natural sports drink (BBI, Jan 15), PepsiCo has confirmed to AP that it gave its naturally formulated Gatorade the heave-ho back in Nov. That's not exactly a surprise, given struggle brand had to obtain traction in Whole Foods and Kroger stores, and PEP released statement saying that thru "engagement with athletes on their fueling needs, we found that Gatorade Naturals and G2 Naturals did not resonate with this core consumer." Tho PEP has also faced some legal challenges to its use of "natural" designation for Naked juices and Frito-Lay snacks, it assured AP that Gatorade Natural was not subject of any litigation. AP piece quoted bereft Mich health psychologist, Missi Nadeau, who'd made brand a staple for her son as convenient alternative to all-natural sports drinks that have to be mixed from powder. "Now that she's down to her last few bottles of Gatorade Natural, Nadeau said she is looking for alternatives," AP advised. BBI's bettin' she's already heard from Body Armor folks.  

Just a few weeks ago, BBI sat down with Talking Rain prexy Kevin Klock to do deep dive into Sparkling Ice as torrid brand set stage for anticipated full availability in 2014 (BBI, Dec 19). "Nice article/book," modest exec commented afterward about detailed piece. But Webcast conversation y'day with Wells Fargo's Bonnie Herzog shed some additional light on where Kevin's takin' brand that's created shockwave in biz over past coupla years. So here's Vol 2 of that "book."

Sales Approach $400 Million, 240+ On Staff Now On company's growth in sales and resources: Ice brand has gone from under $1 mil in measured sales in 2010 (and considerably larger amount not thru conventional scanned channels) to $300 mil as of Dec 29, not including estimated $75-100 mil of unmeasured, proportion that's expanding as brand hits more points of distribution. Thus, brand itself is "easily over $350 million, probably closer to $400 million," Kevin said. As for staffing level, co had 65 on payroll in 2010, many of them mfg-related. Total now is 240, with 30-40 more budgeted this year. Sales force totals 65 and should exceed 80 by year-end. As reported, they've been divvied now into 4 regions rather than 3 as they gear up street-fighting roles in local markets.

Unwavering Commitment to DSD With stores usually turning 30+ cases per week, and sometimes as much as 100+ cases, broadliners aren't really an option, he noted. That said, securing DSD interest has been an ongoing struggle, in part because beer houses are distracted by their craft beers, in part because of skepticism about brand that reliance on measured data has done much to resolve. Last year 20% of country was covered by DSD, but within next coupla weeks nearly every US county should have coverage. Lotsa distribs are finding that Ice is one of top 3 brands in house, Kevin noted. For retail reach Ice covets, "DSD is the way to get there," he vowed. Key target in 2014 will be c-stores, where Ice barely has presence so far - maybe $13 mil in measured sales last year - but which can rep half biz for other brands. Co intentionally waited until Ice's brand identity was cemented before launching push.

Key to DSD mix have been likes of Big Geyser in NY, members of Northeast Independent Distributors Assn north into New England, Honickman Group in Mid-Atlantic, Haralambos in LA and Hensley in Ariz. Network includes mix of indie shops, MillerCoors and Bud beer houses, and some distribs "that belong to the large companies we're competing against" (read that Coke, Pepsi and DPS). Tho only added this spring, Big Geyser took brand to #1 single-serve water in city within 6 months.

$15 Mil Media Spend Last Year; Ice as Premium Brand Kevin said some are surprised to learn brand spent $15 mil on media last year - lotsa $$ for perceived "sleepy little company in the Northwest." This year's campaign will blend outdoor, TV, events, street teams, bit of sponsorships, but not stadium pouring buys or celeb endorsements. Klock also noted that social media metrics like # of Facebook likes don't much correlate with brands' actual sales success. He made clear that co will keep its efforts straightforward. "I'm an engineer by training, so once in a while I ask for payback analysis, and you know how difficult that can be," he noted.

Tho brand is winning consumers from broad range of categories, from diet CSDs to teas and bottled waters, it's garnering its shelf space largely from enhanced waters (Klock rarely mentioned names, but read that as Coke's Vitaminwater primarily, and also Pepsi's SoBe Life Water). Coke's Ice-fighter, Fruitwater, seems to be mainly taking share from Vitaminwater, per his analysis of IRI data. Soon enough, retailers are going to downsize their CSD sets to make room for burgeoning altbevs, he expects.

Kevin also rebutted notion that Ice should be defined as 10-for-$10 brand, noting that its role as traffic driver means retailers sometimes set that price even when brand isn't on promo, and that it sells well enough at full price to create numerous out-of-stocks. In any case, for cold-fill product, $1 isn't exactly peanuts - particularly at time Ice challengers are promoting at well below a buck, sometimes below 50 cents.

Herzog saved question about Talking Rain sale rumors for end, and as in BBI interview, Klock didn't disavow any behind-scenes activity but emphasized that his mandate from owners is to grow as indie co - "to be a solid beverage company" with more than one successful brand, "to become the next AriZona." Going to public markets to finance growth is always possible, and if someone wants to write a big check, co will listen. After all, "we are businessmen," he said.