"Next chapter" in ongoing Coke vs Pepsi war is unfolding and "could be influenced as much by science labs as TV commercials," reports Advertising Age. PepsiCo has been working with biotech firm Senomyx and is in "late stages" of development of "S617," ingredient that will adjust taste and "essentially fool taste buds" into believing they're getting more sugar. If given regulatory approval, S617 could potentially allow PEP to reduce HFCS amounts by 35% and sucrose by up to 50%, per Senomyx's analysis. On last earnings call, ceo Indra Nooyi noted, "People say they don't want artificial sweeteners. They want natural sweeteners. They don't mind some calories. They want to go back to sugar in some cases," and Ad Age noted S617 "would seem to allow for that." Report also points out that S617 "has gotten cautious support" from Center for Science in the Public Interest. "If they cut the sugar in half with this stuff, that's huge," said exec dir Michael Jacobson.

Meanwhile, KO "continues to experiment with steviol glycosides," the sweet but calorie-free extracts from stevia plant. While Coca-Cola Life is available in Argentina, in US, "the company is examining results from recent test market of stevia-infused line extensions of Sprite Select and Fanta Select," noted mag. These new formulated sodas from both cos "could potentially serve as the basis for future advertising efforts for both companies, while providing shelter from health critics and politicians" who put blame for health issues on soda industry. But Ad Age also wonders about consumer taste for bevs "leaning too much on complicated chemistry?" "Beverage innovations perceived as being made in a laboratory carry a stigma that may prove difficult when attempting to lure back lost customers," warned Jonas Felicianao, bev analyst for Euromonitor Int'l.  

Looks like Essentia alkaline water, which has quietly grown to become natural-channel mainstay, is ready to step up push into mainstream retail channels: it's bringing aboard pair of seasoned bev vets to build distribution and marketing programs. Coming aboard to Seattle-based co run by prexy/ceo Ken Uptain are former Snapple exec Neil Kimberley, as vp strategy and brand development, and former Starbucks exec Paul Curhan, as vp marketing and innovation. Neil had long ride at Snapple and its acquirer Cadbury Schweppes Americas Beverages (now Dr Pepper Snapple) and recently came off 2-year ride as dir of global innovation at chocolate maker Hershey. Paul's career has taken him to brands like Starbucks, where he was involved in Frappuccino launch, as well as Tully's Coffee, Pyramid Breweries and Crayons Beverages; he's also recently served as advisor to energy brand Xyience Xenergy.  

With class action settlement against Muscle Milk behind them, marketer Cytosport appears to be drawing bidders for deal it hopes to bring in north of $500 million. WhiteWave Foods "is circling Muscle Milk," and Glanbia Nutritionals, maker of Optimum Nutrition and American Bodybuilding and other sports-nutrition brands, also is interested in biz, according to NY Post. Another co "in the running," per paper's sources, is NBTY, maker of Balance Bar.  

It's one of those name-says-it-all trademarks just like Vitaminwater or 5-Hour Energy: Skinny Water. For calorie-obsessed, it would seem rich platform for easy-on-waistline bev items. So is it worth $1.5 mil to you? That's minimum bid being sought by bankruptcy court for Jan 10 auction for assets of Skinny Nutritional Corp, which filed for Chapter 11 protection back in May. Bids are due in by Jan 8. If amount is brought in, about half of proceeds would go to settling claims of lender Trim Capital LLC, thereby leaving trademark free and unencumbered. Brands based on word "skinny" have thrived, of course, in categories like cocktails, but longstanding effort by publicly traded SKNY to carve out identity in enhanced-water segment have come to little so far, hit by frenetic discounting behind category-leading Vitaminwater and Vitaminwater Zero, as well as gov't flak that made co drop Super CitriMax as active ingredient some years back. Co's chmn/ceo Michael Salaman is said to be teaming with private equity/real estate investors UBS Partners of Philadelphia with bid somewhere in that $1.5 mil range in effort to reclaim control of co and resume efforts to build broad platform of zero-calorie brands. SKNY case is in hands of US Bankruptcy Court for Eastern District of Penn in Philadelphia. Recall that at one point co said it had lined up as much as $15 mil in funding from Trim, but only $1.27 mil actually came in and Trim then foreclosed on co with claim on intellectual property rights. No immediate response to call to Salaman today, and it's not clear what other players may be interested in swooping in to try to win trademark.  

Former corporate lawyer in Austin, Tex, is capitalizing on consumers' enthusiasm for high-pressure processing and farm-to-table sourcing of food with fast-growing RTD supergreens line called Daily Greens. Shauna Martin launched brand only last Dec but is already in Whole Foods' Southwest and Northeast regions (including NY) and employing 20, with move to 4,500-square-foot facility in East Austin set for next week or 2.

Brand is offered in 16-oz straightwalled PET bottles in flavors like Vitality, Renew and Purity that list their ingredients in order down center of label - in Vitality's case, kale, cucumber, pineapple, jalapeno, cilantro, celery, lime and Himalayan pink salt. That's typically 6 pounds of produce and 9 servings of fruits/veggies per bottle. Labels' color palate is varied but subdued. Crucially, co tries to source produce regionally when it can, from growers like Johnson's Backyard Garden, biggest organic farm in area. In typical week, Johnson's sells most of its produce at farmer's markets and via CSA (community-supported agriculture) programs, with Daily Greens picking up remainder and filling in gaps with spot buys elsewhere. "It's a great partnership," Shauna said. "We try to source from our back door, and further out as needed." Austin benefits from nice growing season throughout winter, tho in summer Daily Greens often has to reach to Calif for key ingredients. Other new bevs, such as Health-Ade Kombucha, are similarly making local ingredient sourcing key part of appeal (BBI, Oct 22).

Shauna spent 16 yrs as corporate lawyer (she's still partner in firm but on extended sabbatical), but encounter with breast cancer turned her into home juicer. (She says she's fine now.) Some 8 years into regimen, she noticed her female friends had stopped deriding her green juices as "pond water" and were visiting local Juiceland chain. That suggested time might be right to go pro. To get handle on HPP options in Tex, Shauna cold-called ceo of Dallas-based Holy Guacamole, visible proponent of process, and recruited as coo Nick Tangborn, formerly with Batter Blaster pancake mix in a can. Power Brands' Marty Molina helped her navigate incubation process, initially out of shared kitchen facility. Martin's husband, whose agency Crush Advertising does work for lotsa food/restaurant clients, helped on branding side. Funding has come from unidentified family office in Dallas. Given her health episode, Martin devotes share of proceeds to breast cancer research.

Tho it's been tortuous process for many brands, getting Daily Greens into Austin-based Whole Foods was pretty easy, Shauna said. Brand had begun in farmers markets around Austin, and brand enthusiasts already had been texting Whole Foods' brand "foragers" about Daily Greens. Co does 2 exclusives for chain: Elevate, as well as newer Enlighten, hemp milk item limited to Southwest stores so far. Daily Greens has also cracked HEB's Central Market natural-food chain, and has entered Kehe distribution at request of HEB with view to garnering availability in HEB-bannered stores. Co self-distributes to indie stores locally. With Sysco aboard, brand is also cracking hospitality biz, including Omni Hotel in downtown Dallas and, shortly, Hyatt hotels in Austin.

Reassuringly, in Southwest, brand has been selling well not just in expected locations in Tex but in Ark and Louisiana, Martin noted. With velocities encouraging, Whole Foods is eyeing Midwest and South divs next. Co also is broadening presence in Northeast via Rainforest DSD house. Acosta's NSS unit serves as national broker.

Happy Thanksgiving, readers! Assuming this is last issue of BBI before Thanksgiving holiday - and BBI requests readers' consideration not to break any significant news this afternoon or Wed - BBI wishes you the best for