BevForce, NY-based exec recruiter that stormed into NA biz from its bastion in spirits a few years ago, continues to dial up its suite of services.  Last year it added food/snack segment to its coverage, and this summer it opened office in Venice, Calif.  It’s adopting new video-interviewing technologies to streamline search process and adopted “try before you buy” approach for international cos or emerging brands in which BevForce puts employees on its own payroll until client is ready to open office and make substantial staff commitment. 

BevForce occupies position between major corporate recruiters like Korn/Ferry and Heidrick & Struggles and long-established bev specialists like Future Perfect Worldwide, in Charlottesville, Va.  Push into food side in 2012 via FoodForce unit was prompted by legion of bev people who headed in that direction and started phoning BevForce for recruitment help.  By now, marveled founder/ceo Josh Wand, food side accounts for 20%+ of overall biz.  Maybe it shouldn’t have been such as surprise, he allowed, since his team has found itself dealing with same people, from private-equity shops on down, as it does on bev side.  Remaining 80% of biz accounted for by bevs is split 60-40 between original alcohol orientation and NAs.

Co now employs about 30, based mainly in its offices in Tribeca section of Manhattan.  Wand figures Venice office will grow to 12-15 staffers by end of 2014, and says Boulder, Colo, is likely next brick-and-mortar site.  (Original Las Vegas office, where co was founded in 07, segued to Austin, Tex, satellite office when remaining staffer there relocated to that food/bev hotbed.)  Wand’s right-hand man is youthful “chief progress officer” Sean Conner.

Main reason for success?  Josh sees co’s ability to build out full sales/marketing and production teams as crucial, in contrast to established corporate recruiters that focus on c-suite.  BevForce happily fills jobs “from ceo down to the kid with a bag over his shoulder,” as Josh put it.  Tho visible Web presences fosters perception that BevForce is essentially Web-based biz, those are mainly entry-level jobs that need to be filled cheaply.  Lion’s share of biz derives from what Wand calls “strategic organizational design,” developing leadership teams, building boards or vp and dir teams – positions that are never posted on Web.  Typical design engagements might include building out cross-functional teams that can carry co’s growth for next 3 years, or helping client decide whether marketing should be structured around field or trade efforts.  Hashing out those design decisions, BevForce and its client decide what staff roles make sense in recruitment process.  That side of biz is tagged BevForce Reserve, because clients are viewed as reserving services of co’s “career concierges” to get job done.

Co has developed interesting specialty under BevForce InSight moniker that builds sales/marketing street teams at salaries in range of $45-65K.  New technology allows co to conduct video interviews via Blackberry or iPhone devices to gauge candidate’s presentation skills on the fly.  Remote live interviews can be conducted via a protected portal that, unlike Skype, can’t be recorded and put on YouTube.  Clients then can view results on their own time to decide whether particular candidate is worth pursuing at level of face-to-face interview.

Try-before-you-buy works this way: for cos that aren’t ready to commit yet to their own US infrastructure – whether because they’re overseas firm that hasn’t yet opened a US office or because they’re a startup with limited resources – BevForce will act as employer of record, putting new hires on its own payroll with its own health insurance and workers’ comp for several months.  If client’s expansion plans pan out, those employees can later segue to client’s payroll.  It’s way of mitigating financial risk of new-brand launch.

As anticipated, Starbucks has inaugurated new HPP facility for its Evolution Fresh brand that quadruples production capacity of prior juicery.  New digs in Rancho Cucamonga, in Inland Empire east of LA and not far from agriculture basin where much of its fruit is sourced, supports expansion plans of brand that SBUX says has exceeded its target of hitting 8K+ Starbucks and grocery stores by end of 2013.  At $70 mil investment on 264K-sq-ft site, plant is one of largest high-pressure processing juiceries in country, with room for further expansion.  It will employ 190, including nearly all workers from prior facility near San Bernardino and 65 new hires.  It joins mfg network that includes coffee roasters in Kent, Wash, York, Pa., Sandy Run, SC, Carson Valley, Nev, and Augusta, Ga.  “We believe it is important, and makes good business sense, to significantly invest in U.S. manufacturing,” said Evolution Fresh gm Chris Bruzzo.

Nation’s most closely watched GMO battle – Washington State’s Initiative 522 – is heating up further as forces aligned against labeling initiative pour unprecedented resources into fray.  Grocer Mfrs Assn, which has been acting as a front for big food/bevcos like Coke, Pepsi and Nestle in this battle to spare them backlash they suffered in Calif a year ago – just added $5 mil to anti-522 campaign, bringing warchest to more than $17 mil.  That would seem to dash hopes of pro-522 forces that they would only be outspent by factor of 2-to-1 (BBI, Oct 4).  Unless pro-522’s pull in windfall of their own, this makes ratio more like 4-to-1.

“With a month to go until the election, the anti-522 campaign has now surpassed the $16.9 million spent by the American Beverage Association three years ago to roll back a small soda pop tax that had been voted by the Legislature,” tallied Seattle Post-Intelligencer’s Joel Connelly.  As he also noted: GMA “stands accused in a state court suit of laundering money for major food producers who do not want their names associated with the campaign to defeat the labeling measure.”  As previously noted, this was effort to prevent backlash vs individual members cos like Coca-Cola, PepsiCo, Nestle and Campbell Soup of type they suffered during fractious GMO vote in Calif last year.  That battle drew $46 mil from food and agribiz forces, incl $2.14 mil from PEP, $1.45 mil from KO and $1.31 mil from Nestle.  “But those corporate names are absent from this year’s anti-522 campaign just up the coast,” Connelly noted.  Agribiz cos have been willing to make direct contributions to cause: Monsanto to tune of $4.59 mil, Dupont Pioneer to tune of $3.25 mil.  During recent panel at Expo East, 522 proponents expressed confidence that multitier strategy would prevail if they kept spending imbalance to 2-to-1 or so.  In Calif, food/agribiz interests outspent pro-GMO-labeling forces by 5-to-1 in successful effort to defeat initiative.

Interesting cover article in Advertising Age explores how small cos are taking the big boys to school lately by smartly using digital media to level the playing field.  “Almost all the largest companies across food, beverage, household products and personal care lost share in measured channels” last yr, said Jeff Gell, sr partner/mg dir at Boston Consulting Group.  “It has never been that pronounced in what I have seen before.”  From 2009-12, “small and midsize firms took 1.6 share points, or nearly $10 billion in sales, from the packaged-goods behemoths,” per BCG analysis of IRI data. 

Digital media surely have helped smaller brands gain attention of consumers and even, some would argue, changed game completely.  “Digital and social media actually tilted the playing field in favor of the new entrant who doesn’t have the legacy ways of doing things,” contends Rex Briggs, ceo of analytics co Marketing Evolution.  While it’s tough for social media to “generate strong returns on investments” for big brands, it’s the opposite for no-budget upstarts.  Changing consumer tastes were obviously cited as another key to small co success, and “even big retailers like Costco have warmed to smaller players in the past decade as they search for growth and innovation,” noted Ad Age.  Current biz environment “seems to bear out theory” of Chris Anderson’s 2006 book, “The Long Tail: Why the Future of Business is Selling Less of More,” added mag.  As TV ads have become “more expensive,” larger CPG cos “have divested or discontinued smaller ‘tail’ brands” and instead focused on core. 

Coke’s VEB Doin’ It Right  While “nearly all big companies have internal groups aimed at getting nimbler and identifying external or developing internal innovations,” Coca-Cola’s VEB group was cited by Ad Age as example of doing it successfully.  KO “is one of few giants” tracked by BCG/IRI that actually grew share in 2012, thanks partly to “contributions from small brands like Fuze, NOS, Zico and Honest Tea,” noted Ad Age.   

The LA-based glass-bottle organic juice player Wild Poppy made its debut at Natural Products Expo East after going national a few weeks earlier via natural broadliner UNFI.  “Smashing fruit drink” line offers distinctive blends of California-sourced organic fruit, organic agave and spices in flavors such as Peppermint Lemonade and Blood Orange Chili, in 10-oz glass packs bottled in Sonoma County.  SRP is currently $3.49 but founder/prexy George Bryson said he hopes to nudge it down to $2.99.  Bryson, a former Fiji Water exec, said brand is rolling out in The Fresh Market chain, and with addition of Whole Foods’ Southern div now is available in 4 regions.  Such marketing novelties as antique-style wooden 4-pack carrier has done wonders garnering placement for brand at checkout and other high-traffic spots, Bryson noted.  Other flavors in line are Grapefruit Ginger, Peach Vanilla and Plum Licorice, ranging from 9% to 20% juice content.  Info at WildPoppyJuice.com. 

Seeing US as underdeveloped market for drinkable yogurt – with most entries packed in 32-oz multiserve format – Skyland Foods is moving ahead with expansion plans behind its single-serve entry, Ibex.  Washington DC-based co marked its 2d appearance at Expo East in Baltimore by announcing that it’s signed with Green Shoots distribution house to reach natural and specialty retailers it covets.  Brand launched at Expo East a year ago.

Ibex is packed in 8-oz black bottles with striking silhouetted image of wild goat against colored disk, offering grab-and-go format that’s suited to other dayparts than breakfast occasions targeted by the multiserve entries.  Why an ibex?  Simply to diverge from standard images of cows and other dairy icons, said founder Brandon Partridge, a former Nestle exec who’s also worked as consultant to dairies.  “It’s elegant and stands off the shelf.”  Tho Original flavor is pitched as “Pure & Simple” and contains just cultured milk and cane sugar, line’s 3 other sku’s offer functional twists: Brain Boost (Mint Melon flavor, with DHA oil), Probiotic (Ginger, with lactobacillus) and Recovery (Banana, with milk protein).  SRP is $2.49.  Brand info at IbexYogurt.com.

Continuing to build on successful rebranding that moved its all-natural energy line from glass bottles to more conventional 16-oz cans, Hiball has added key retailer HEB in Tex, bigger sibling of Central Market chain where Hiball already has had presence, as well as Raley’s and Byerly’s chains, founder Todd Berardi told BBI at Natural Products Expo East.  New Nielsen and SPINS data indicate brand is up by triple digits and continues to be fastest-growing natural energy drink within Safeway and Kroger operations, he said.  Still, upsizing of package exacted one tradeoff: non-resealable cans are not as female-friendly in portion size.  In response to feedback from consumers, co is readying 8.4-oz cans, due in Jan, that will be available in 6 flavors at more affordable price point of $1.99-2.19.  Core brand goes out at $2.99.

Avg price for CSDs sagged 1.7% over 4 wks thru Sep 28, per most recent Nielsen data for AOC channels (food, drug, mass, incl WMT), reported by Wells Fargo Securities’ Bonnie Herzog.  That compares to 1% price decline over last 12 wks as suppliers stepped up promo activity around Labor Day weekend.  Despite pricing actions CSD volume still fell 2.4% in Sep.  “It appears manufacturers, particularly KO, are using price to drive volume growth,” said Bonnie, repeating observation that’s become increasingly widespread in recent weeks.  The price cut for diet CSDs          (-2.4%) was steeper than regular (-1.3%) but that didn’t move needle at all as volume fell 6.3%, in-line with 12-wk decline.  “Year-to-date diet CSD volumes are down -6.2% versus -2.4% for regular CSDs,” Bonnie compared.     

As noted, Coca-Cola “by far had the largest price decline of its competitors,” with 4.9% price cut for 4 wks, double KO’s avg price trend (-2.5%) over last 12 wks.  KO CSD volume shot up 3.7% last 4 wks, up from gain of just 0.6% last 12 wks. “While we think KO’s pricing-driven volume/share gains could be quite shrewd in the near term, we continue to hope it’s short-lived, as over the long term it could upset the overall health of the industry profit pool,” wrote Bonnie.  As noted yesterday in BBI, Bernstein Research’s Ali Dibadj has offered similar concern, and hoped new scanner data might bring signs that trend has slowed or reversed.  It hasn’t.

PepsiCo CSDs, meanwhile “continue to be an increasing drag on total performance,” she noted.  PEP avg price was off more modest 1.2% last 4 wks, and volume fell 4.7%, matching 12-wk trend.  Dr Pepper Snapple CSD prices edged down (-0.1%) for last 4 wks but that didn’t help volume, which slipped 4.1%, down from -2.7% avg for 12-wk period.  Nor is its once highly touted 10-calorie strategy showing signs of addressing issue.  “DP10 continues to worsen,” Bonnie pointed out, as “TEN platform posted its 6th consecutive month of sales declines.” Word from retailers is that more are dropping the brand, she reports.  In this environment, no surprise that private-label CSDs continue to struggle, with volume plummeting 11.7% even with modest pricing (-0.2%).     

Energy Volume up 4.7% in Sep    Energy drinks (including coffee and tea hybrids) rose 4.7% for 4 wks, per Nielsen.  Avg prices were a bit lower (-3.8%) last 4 wks compared to 12 wk trend (-3.3%) for category.  A 3.5% avg price drop helped boost Monster to 8.1% volume gain last 4 wks.  Coca-Cola energy drinks were other volume outperformer with 30% gain aided by 15% price drop.  Red Bull volume (+2.6%) and pricing trends (-0.4%) last 4 wks were generally in line with 12-wk trend.  Rockstar pricing moved from -5.2% last 12 wks to up slightly (+0.1%) in latest 4 wks and volume fell 7.4%.  PEP energy brands (mainly Amp) continued to struggle, with volume falling 20.7% despite 7.3% price drop. 

Sports Drinks Up Double-Digits on Price Cut   Sports drinks volume jumped from 2.5% gain pace over last 12 wks to +10.8% last 4 wks on avg price that dropped 5.2%.  KO’s Powerade was aggressor here, with steep price drop of 11.7% for 4 wks (much lower than -4.8% avg last 12 wks) powering it to whopping 26.8% gain.  Gatorade volume rose more modest 5.9% on just -1.1% price dip last 4 wks.           

Price Drops Help Boost Water Volume Double Digits    Bottled water volume improved from +4.7% volume trends to +10.4% last 4 wks.  Avg price was down 5.7% last 4 wks vs -5.2% avg last 12 wks.  Each of top suppliers accelerated price discounting last 4 wks.  Nestle Waters prices slipped 2.4%, helping co swing from 2.9% drop over 12 wks to 5% volume gain in Sep.  KO water volume improved from -6.2% last 12 wks to -0.3% last 4 wks on 4.8% price drop.  PEP water volume rose 1% (vs -8.3% decline for 12 wks), boosted by 8.1% price drop.  Private-label waters continued to outperform, scoring volume jump of 19.2% for 4 wks on 3% price cut. 

Hotlips Soda, soda with real fruit in it that’s spinoff of popular Hotlips Pizza chain in Portland, Ore, is taking few steps to broaden itsTo hedge production challenges and economics of line that’s so forbidding to prospective copackers to produce that owner David Yudkin has had to make it himself, he’s ready now to add couple of less challenging flavors that also offer richer margin.  Hotlips Ginger Ale is made from Hawaiian yellow organic ginger and will be intro’d at Fancy Food Show in SF this Jan.  Also in mix for later down road is Sparkling Lemonade, made from organic lemons.  Meanwhile, Yudkin also has brought in his first outside assistance as he looks to deliberately build brand outside Portland market.  Aboard as sales consultant in Joel Simon, newcomer to bevs but person who brings experience from premium brands in other sectors, including Riedel crystal and Henry Wine Group.  After fling that saw brand available in Whole Foods stores as far afield as NY, Yudkin is refocusing brand on core Portland market, nearby Seattle, and Calif, particularly Bay Area.  He’s also developing Japanese biz via alliance with Marukai Corp and exploring other potential Asian markets.  Recall that Hotlips is unique soda that includes healthy proportion of pulp from Pac NW-sourced fruit; among handful of brands that have adopted similar approach is East Coast-based Spindrift (which has been aggressively working Calif too). 

Note to readers: Today’s news squeezed out Expo East coverage, but more to come in next issue, readers! 

Charles Thomas “Tom” Tenney, head of a famously independent Pepsi clan in New York’s Hudson Valley region, passed away Sep 20 in Ponte Vedra, Fla, at age 92.  Tenney, who died at Mayo Clinic from complications from cancer, per Times-Record newspaper, had gone to work at Pepsi following B17 pilot duty in World War II and, when opportunity quickly emerged, acquired Pepsi-Cola Newburgh Bottling Co in 1946.  He built it into thriving co that remains independent today, at time 80% of Pepsi’s US territory is worked by PEP-owned bottlers.  Tenney and his son Tim, who took over as ceo in 1986, have maintained sometimes fractiously independent orientation of bottler, which has had rep for pursuing pricing and product strategies suited to its strong position in dispersed market where Coca-Cola is relatively weak.  Tom Tenney is survived by his wife of 71 years, the former Eunice Edwards, like him a native of Greenwich, Conn, and 5 children and 9 grandchildren.