No immediate response to query from BBI, but Bai antioxidant line may be ready to cut over from indie DSD houses to Dr Pepper Snapple Group in Southern Calif, echoing move it made in NorCal a year earlier. That's word on street, as DPS apparently looks to step up noncarb participation in wake of startling declines in CSDs and Bai rides alliance that's taken it into DPS network in key markets like NY, Tex and most recently Chicago, to support entry into Jewel Osco chain . . . Venerable Cheerwine CSD from NC has extended its reach within Pepsi bottling network by signing up both indie and corporate bottling operations in Wash, Ore and Ida. Production site in Olympia, Wash, started up in mid-Oct. "Introducing Cheerwine in Northwest Washington is a natural fit for Walton Beverage, our customers and our consumers," said Ford Carothers, ceo at one of indie shops. Additions move brand a bit further toward goal of being in all 50 states by its 100-year anniversary in 2017, said Cheerwine's svp marketing/sales, Tom Barbitta. He expects full integration into region by early 2014. Recall that brand had previously lined up such PEP bottlers as Pepsi Bottling Ventures . . . Oat-and-fruit smoothie brand Oatworks has entered FreshDirect online grocery serving NY, NJ, Conn, Philadelphia and Dela areas. Grocer is taking all 3 flavors: Pomegranate Blueberry, Peach Mango and Strawberry Banana.  

BBI finally connected with Healthy Brands Collective co-owner Dan Ratner and were able to glean a few more details of High Country Kombucha status and HBC's strategy - tho, as advised last week (BBI, Nov 8), Dan generally likes to keep things close to vest. Acquisition closed on Sep 30, and HBC has separated production, which continues to be in hands of principals Ed Rothbauer and Shane and Steve Dickman, from brand mgmt and marketplace development, which Dan and his wife/partner Donna have taken over. Team was back in production for all of Oct and is restocking shelves, starting in West Coast markets. Dan said he saw no point in announcing transaction, since owners are still involved and HBC intends to stay true to High Country's core principles. As for HBC's broader strategy, it continues to hew to natural-channel strategy, managing resources carefully enough that, while every brand placed under HBC fold was losing money coupla years ago, co is profitable now. On bev side portfolio includes the Ratners' own Cell-nique supergreens line and Living Harvest hemp milk. But we were mistaken on Fri in listing hibiscus-based Ooba line: that was shut down coupla years ago, Dan said, when he realized immediately after closing deal that brand was being discontinued nationally and was too far gone for resuscitation. That was HBC's only mistake so far, he said.

Ratner, now 50, offered a few other intriguing nuggets. Having spent career as GE Capital consultant and building healthcare-related cos, he knows how to stretch a buck and structure deals, and in 25 years has never had to resort to bringing in outside capital on any of his projects. Spending his own money and cash flow enforces discipline, he noted. In assembling HBC, which also includes food brands like Cherrybrook Kitchen, Bites of Bliss and Yumnuts, he's never needed banking representation either, tho sometimes he's worked with seller's banker. At some point down road, he still hopes to take HBC public, but is not pursuing that currently. Ambition of Ratners is to assemble natural-channel brands and foster efficiencies where needed, while keeping them in hands of founders if possible and maintaining their authenticity.  

SEC filing by Monster Beverage Corp contains non-compete language that suggests that recently disclosed deal by which Monster Energy creator Mark Hall will move to less day-to-day role might have been reached to forestall his bolting from co entirely, as had been rumored inside co. Filing notes that, as previously disclosed, MNST board moved on Nov 8 to increase size of board to make room for Hall, effective Jan 1. At that point, after sabbatical running thru Dec 31, Mark, who's now 58 and has spent 3+ decades in bev trenches, will resign as prexy of Monster Beverage Div and segue to chief brand officer, at annual salary of $250K, per filing. (He's listed as making $673K currently.) "The Hall Agreement also included covenants from Mr Hall not to compete with or solicit employees or contractors of Monster Energy or its affiliates during the term of Mr Hall's employment and for a period of 2 years after termination of his employment or his service as a Board member, whichever occurs last," filing states. Of course, by now Hall has reaped tens of millions in compensation and stock options as MNST valuation has soared to $10 bil, leaving him with no financial need to keep working.  

In recent weeks Nielsen syndicated data house apparently has been dealing with some buggy data, and last Friday's report on seeming softness in energy category may have been afflicted. BBI has heard from several contacts since running Wells Fargo summary that it should be disregarded as not fully accurate; its indication of soft period did seem to conflict to contrary view from rival IRI data (which we haven't seen) and more optimistic view expressed by Monster Beverage ceo himself on last week's earnings call. When we see new data we'll pass it on.  

In recent weeks Nielsen syndicated data house apparently has been dealing with some buggy data, and last Friday's report on seeming softness in energy category may have been afflicted. BBI has heard from several contacts since running Wells Fargo summary that it should be disregarded as not fully accurate; its indication of soft period did seem to conflict to contrary view from rival IRI data (which we haven't seen) and more optimistic view expressed by Monster Beverage ceo himself on last week's earnings call. When we see new data we'll pass it on.  

With Fairlife LLC's calculated gamble in putting its milk-based Core Power protein line thru Coca-Cola Refreshments system paying off, co is ready to move to next stage with addition of more family-oriented milk sku in Jan, ceo Steve Jones told BBI. New line, which he wouldn't name yet, will broaden consumption dayparts and also help consumers in managing conditions like diabetes or heart issues with great-tasting protein product.

Jones offered that nugget in broad-ranging discussion of strategy of co that's mustering proprietary filtration technology of dairy farm group to offer milk-based items that break mold in staid dairy cooler. Former prexy of Coke's Minute Maid unit said he envisions doing in milk aisle what brands like Simply and Odwalla have done in revitalizing sleepy juice cooler. Core Power, building on brand launched in Austin in 2010 as Athlete's Honey Milk, has been central to strategy so far, but Jones has far bigger ambitions than that - view that colored what he acknowledged was difficult decision on distribution once doors at Coca-Cola Refreshments swung open.

As early-stage player, Jones said he was prepared to build indie DSD network in hope that a Coca-Cola or Dr Pepper Snapple Group might come aboard 3 to 5 years later, only to be surprised at early interest demo'd by KO, which has never played significantly in dairy space. (No doubt his former roles at KO gave Steve entrée not available to other startups.) If Fairlife was only building its biz around Core Power line, maybe he would have declined, Jones recalled. But biz plan calls for multiple product platforms amounting to billion dollars or more in revenue, and quest for foodservice and overseas biz, both areas where Coke system could offer incalculable help.

So far, he said, any concerns he harbored about winning adequate focus from CCR have proved unfounded. He's been aiming for 50% ACV by now and is "on track" to get it. In flavors where both brands offer comparable items, Core Power is showing velocity equal to or higher than Muscle Milk, which moves thru Pepsi system. And on-premise biz has been pleasant surprise, with schools like Ohio State moving 150 cases per week and some hospitals moving 100 cases or more. As reported, brand also is getting more chances to ride Coke's marketing machine, as with role it will have as exclusive protein drink at next year's Winter Olympics in Sochi, Russia (BBI, Nov 6). It will work that via limited-edition bottles featuring 4 US athletes. To strengthen CCR relationship, co has hired seasoned execs to forge direct relationships with each of bottler's 3 US regions, as well bottler's customer relations teams.

One prominent channel where co has been absent is natural channel. At time Whole Foods roiled waters by taking first steps toward GMO ban, Jones minced no words in saying that issue is keeping Fair Life away from channel, even tho it meets natural criteria. "The natural channel is struggling with GMOs," he said. "We're a GMO product. Our farmers are incredibly responsible to the environment. We're proud to say we use GMOs and are not going to back off that stance." That's even tho brand offers other attributes that should be valued by natural-channel shoppers, such as traceability of milk used back to specific farms of 92-member Select Milk Producers co-op with which Fairlife is affiliated.  

"Roll on, Columbia, roll on" went the Woody Guthrie song. On bev distribution front, that's certainly been true in Pac NW, where Columbia Distributing has amassed formidable array of brands and clout in beer, NAs, wines, you name it. That's why, seeing need for counterbalance, Odom Corp teamed with 3 other regional houses a year ago to launch regional craft and specialty-bev house called Great Artisan Beverage Co. Despite word "beverage" in name, so far it's been purely a craft-beer play, even as it's added another member to bring tally to 5 houses representing broad swath of Wash, Ore, Ida and Alaska. Other original members were Sound Distributors of Bellingham, Wash; Craig Stein Distributing (serving SW Wash State from Vancouver, Wash, base), Marine View Beverage (western Wash), buttressed in late Sep by General Distributors of Oregon City, Ore. Is alc-only stance changing, tho? Auctive, consultancy helping Campbell Soup rebuild indie DSD network, confirmed it's in talks with Great Artisan about possible placement of V8 brands, and Great Artisan's Nick Gagliardi tells BBI, that while he's counseled restraint in moving beyond craft beers in early days, member houses are intrigued by NA possibilities out there. Campbell deal was urged by Odom itself, he said. So this one could be interesting to watch, in region that's been proving ground for new brands, and where cold capacity being installed by beer distributors to handle craft kegs eventually could mature into more robust cold network able to handle burgeoning refrigerated segments like kombucha, cold-press juice and cold-brewed coffee.  

Surely, it's always occasion of some suspense: after you've dismissed your indie DSD distributors in order to move into one of the big soft drink or beer networks, what's it like when that alliance doesn't pan out and you return to same distributors looking to get back in? That's been situation Campbell Soup has been in since unwinding distribution alliance with Coca-Cola on V8, but so far it's lookin' to be smooth sailing. Any resentment the DSD guys may harbor over being ousted in first place seems to have been more than offset by attraction of bringing in V8 brand that's so well-known it practically sells itself.

Word is that brands received positive reception at meeting this week of influential Northeast Independent Distributors' Assn, with nearly half of 30-member alliance expressing interest in picking up brand; one influential member, Big Geyser in NY, was among first to land V8 once KO partnership was unwound (BBI, Sep 25). But CPB and its advisor on distribution, Auctive consultancy based in SF and Boston, have taken different tack in Southeast, going with Jack & Jill ice cream group, partly because that allows co to put V8 in same distrib as its refrigerated Bolthouse Farms juice brand. As reported, CPB had done same thing with Sunny Dairy in Fla (BBI, Oct 2). On W Coast, co seems to be well along in talks with shops like Lenore in San Diego. And in Pacific Northwest, co is in talks with NIDA-like alliance of beer houses, Great Artisan Beverage, not previously known to be interested in NAs (story below). As reported, CPB had planned to limit DSD footprint to perhaps 30-40 houses in key markets on E and W Coasts and heartland markets like Colo and Chicago, tho at this point it seems that retailer coverage requests will take it beyond that #.  

Lifeway Foods, maker of kefir and other probiotic dairy and non-dairy brands, said revenues rose 18% to $26.6 mil and net income grew 21% to $1.7 mil. Its reported 10 cents per share matched analysts' expectations while revenue beat consensus estimate by about $300K. Gains were "primarily attributable to increased sales and awareness of the company's flagship line, Kefir, as well as ProBugs Organic Kefir for kids and BioKefir," said Julie Smolyansky, ceo of Chicago-area co. In past 2 wks, Lifeway has started to ramp up production at Golden Guernsey dairy plant it purchased in Jul. Once up and running, Wis plant will triple capacity and lower costs as Lifeway becomes its own supplier of milk in bottles, said cfo Edward Smolyansky on conf call, per Seeking Alpha transcript. Ed noted he was handling conf call duties while Julie "is traveling abroad in pursuit of global expansion."