“Nothing if not persistent,” investor Nelson Peltz “has reached out to some of PepsiCo’s largest shareholders” to gauge their support to help him gain seat on the board, reported NY Post.  Peltz is still pushing “his mainly solo effort” to get PEP to split bev and food biz so deal could be worked to buy Mondelez, in which he’s an investor.  But article quotes large PEP investor who remains a skeptic of plan, viewing latest efforts as “simply a way for him to make more money off his bet” on Mondelez.  Among “many roadblocks” Peltz faces with plan is likely opposition of large shareholders and “structural” challenges such as merging unionized Mondelez workforce with non-union Frito-Lay workers.

Riding back-to-back strong quarters, once-beleaguered Celsius Holdings is ready to head back out into capital markets, seeking $15 mil at Nutrition Capital Network gathering in SF later this month.  If successful in quest, publicly traded co based in Boca Raton, Fla, will deploy capital to open up Midwest and NYC markets for calorie-burning Celsius brand, augmenting current array of 6 drill-deep markets such as Fla, Tex and New England.  It will also boost social media buys that seem to be panning out well for Celsius, including Pandora music-streaming buy that’s bringing 7.8 mil ads per month to those 6 key markets, ceo Gerry David told BBI today.

Quest comes as co continues to steadily rebuild presence after earlier overexpansion failed to pan out on revenue line and precipitated change in mgmt that brought David in.  Since coming aboard, David and core investor Carl DeSantis have refined positioning to stress Celsius identity as “the world’s first and only Negative Calorie beverage,” tilted marketing to initiatives like Pandora buy and selectively broadened sales and distribution base. 

Foray into South America is coming via deal with Latco Beverages, 47-yr-old co that services 90K+ stores in Brazil from network of 10 warehouses and will work to make brand broadly available in time for next year’s soccer World Cup.  Initial product is being shipped in from US, tho combo of freight costs and steep import tariffs has partners already working on establishing supply chain in Brazil, possibly including Latco’s own production capabilities.  For launch, Celsius’ best-selling flavor, Raspberry Acai Green Tea, is being switched from still to sparkling formulation in synch with preferences of carbonation-loving South Americans.  Latco and Celsius already are in talks about bringing brand to other markets where Latco has presence, notably Argentina, Paraguay and Uruguay.  Latco mgg dir Fabriciio Zanferrari noted that “healthy diets and attention to physical fitness are categories that have seen tremendous growth in Brazil and neighboring countries in recent years,” making clinically backed Celsius a good bet.  With biz in Europe picking up, starting in Sweden (where brand sells 1 mil cans per month), CELH has also established production base in Dusseldorf, due to start up in Nov, and is similarly establishing production in China for Asian market.

In calls with investors, Coca-Cola and PepsiCo’s brass have generally congratulated themselves over past coupla years for maintaining rational approach to pricing in their core CSDs despite challenges of segment and overall economic weakness.  But other signs point to more challenging environment.  BBI survey of Labor Day pricing turned up lotsa grocery fliers brandishing extreme price promos (BBI, Aug 30).  Now Bernstein Research sr analyst Ali Dibadj points to signs of irrational pricing behavior in report issued today that carries unmistakable tone of frustration.

“For the first time since Coca-Cola and PepsiCo purchased their North American bottlers, pricing was negative in August, leading investors/us to fear that Coca-Cola and PepsiCo are becoming irrational with pricing as volume declines accelerate—we have heard some whispers of potential ‘price war’ in some locations,” Ali writes in report titled Who’s to Blame for Irrational Pricing in North American CSDs and What’s Next?  “We are hopeful that recent price aggressiveness can be attributed to an unusual, ‘nonrecurring’ push for volume pre-Labor Day, and that the players will smarten up soon (and, yes, if it’s not clear already, we feel pretty passionate that regular, systematic, price increases are the best path for CSDs in North America).”  So who’s mainly to blame?  “Our-SKU-by-SKU analysis of pricing and volume growth suggests that Coca-Cola is mostly (although not always) to blame,” he figures, partly attributing that to incentive structures that tilt toward volume performance at KO but profit performance at PEP.  In any case, Coke’s traditional premium price over comparable Pepsi CSDs has narrowed in recent qtrs.  Next batch of Nielsens due tomorrow should throw further light on issue, he figures.

Among implications of trend, Dibadj sees lower chance that anticipated bottling-system divestitures will occur soon.  “Investors have become concerned that weak volumes and now pricing in North America are leading to deteriorating profitability, decreasing the profitability of the bottlers, and thus the probability that the bottlers will be divested soon,” he writes, adding mordantly:  “One of the major reasons that the beverage companies purchased the North American bottlers was to restore pricing rationality, industry growth and profitability—we are still waiting.”

LA-based private equity shop First Beverage Ventures is ready to enter kombucha realm with investment in small local play, Health-Ade.  Glass-bottle brand was created in Santa Monica by husband-and-wife team of Justin and Daina Trout and friend Vanessa Dew, as small-batch play employing local, seasonal farmers’ market fruit.  They’re self-producing in Santa Monica (with a move to bigger digs in Van Nuys imminent) and offering year-round Original flavor and seasonal flavors like Ginger-Lemon, Pink Lady Apple, Seasonal Plum, California Grape, Pomegranate and Cayenne Cleanse.  Minority investment is first transaction by First Beverage Ventures, private-equity arm of First Beverage Group launched earlier this year with limited partners that include bev distributors and Coca-Cola’s Venturing & Emerging Brands incubator unit.  “There’s nothing more exciting than discovering a wonderfully packaged brand that is built on premium-quality ingredients and run by an outstanding leadership team,” noted Tom First, First Beverage Group mgg partners who’ll help guide development of Health-Ade.  Kombucha, of course, has been object of fascination among investors because of its fervent following, purportedly beneficial health benefits, and home-brewing and on-premise culture that bears comparisons to craft brewing.  But segment’s intriguing potential has been counterbalanced by difficulty of scaling up, refrigerated supply chain, and lingering issue of keeping fermentation from exceeding legal limit of 0.5% alcohol for items labeled as non-alcoholic.

In chat with BBI this morning, Nantucket Nectars and O Water creator First said First Beverage has been determined to play in probiotic category that offers broad diversity in flavors, ingredients and formats like kegs, growlers, bottles and cans.  “We were looking for incredible liquid, very strong leaders, and brand and packaging with halo capability and diversity,” Tom said.  Health-Ade has carved out premium position in demanding market, staying away from either fringe, “hard-core hippy” or “barely kombucha.”  “We knew we were going to be in this category, and went out and looked for the best possible branding and liquid we could find.”  Tho co and presumably initial investment were small, eyeing longer-term outlook, “our goal is not to be a little company in LA and this is a significant investment for us,” First emphasized.

Continuing successful resurgence of recent years under ceo Jack Belsito, Voss Water in 2014 will build on successful elements of 2013 including partnership with Wine Spectator and support of well-building initiatives in Africa, while working to dial up retail presence, particularly in emerging c-store channel.  “We’re now transitioning from a brand that’s served to you to one that’s a considered purchase, selected at retail,” explained cmo Ken Gilbert, during visit to co’s NY hq on Fri.  Crucial to success is greater penetration of c-stores, where shoppers might be inclined to view purchase as a “treat,” ceo Belsito noted.  Lately, brand has enjoyed surprising success in that realm, now offering 3 sku’s in NY’s dominant Duane Reade drug chain, and making inroads into parent Walgreens too.  It’s also in Xtramart and Fastrac chains.

As reported, Norwegian-sourced brand has become consistent growth story in US market, where it’s focused primarily on NY, LA, Las Vegas, Miami and Chicago markets, even as some rivals like Fiji seem to have flattened in growth.  Tho Belsito wouldn’t disclose sales, 52-week Nielsen data suggests brand is exceeding $10 mil, at some of highest price points in US bottled water biz, even with c-stores only just coming aboard in meaningful way and Costco not yet in mix.  Co’s most-distributed item is 500 ml PET bottle priced in $1.50-2.00 range, but even that only has 20% ACV.  Overall, co has a bit over 30% ACV.  So Belsito sees plenty of upside as brand is able to further build distribution.  Sales are targeted to grow another 20% in 2014.

Among other new initiatives, with sparkling water sector on continuing growth tear, Voss has hired Spring Design Partners to find ways to better differentiate brand’s still from sparkling sku’s, to alleviate occasional confusion both among retail shoppers and restaurant wait staffs.

It’s also continuing to finetune social media strategy.  By end of year Voss brand should carry 176K Facebook fans, all organically won aside from 12K recruited during UK blitz.  That compares with 290K for Fiji, 221K for Evian, 750K for Perrier (via both brand and Societe Perrier pages), among key rivals.

On media front, brand will return to alliance with Wine Spectator that marries 7 ad buys with 10 culinary-themed events.  But it also will broaden print presence – not via other national buys, as in past, but via more efficient regionally targeted luxe books from Niche Media like AspenPeak, Gotham and Philadelphia Style.  It’s engaging in lifestyle marketing via ties to furnishings purveyor Frontgate and FlexJet.  And summer promo dubbed Spin the Bottle will feature microsite that allows consumers to spin once for chances at various prizes like fancy meals and hotel stays at Voss World marketing partners – and to spin again if they share app with friends.  They can also earn spins right at retail shelves by scanning QR or UPC codes with mobile device.

On cause-marketing front, Voss will stick with 31 Days to Make a Difference, African well-building initiative promoted during period between World Water Day and Earth Day.  This year’s effort, under theme “Living Well,” will dial up interactive elements via real-time documentation of well-building effort and closeup glimpses of villagers, workers and volunteers accessed via interactive map.  As recently noted, Voss also was one of 2 imports invited to participate in First Lady Michelle Obama’s Partnership for a Healthy America initiative via its new Drink Up initiative (BBI, Sep 16).  It also has re-upped with 3 Degrees as 3d-party monitor of carbon emissions – issue that is of importance to hotel partners like Marriott.

Overseas Voss has made headway in UK, particularly via role as official water of Savour London restaurant event, with giveaways of dinners for 2 for 8 straight weeks quickly boosting Facebook presence from 3K fans to more meaningful 15K.  It’s changed distributors in China, solidified relationship with brewing giant Lion Nathan in Australia, signed with Spanish giant Torres for Spain, Mexico and countries in South America, and in Middle East has tied to MMI of Dubai (which has passed NY as #1 market for brand).  Brand has transitioned to Wirtz in Chicago from Southern Wines but retained Southern for several other territories.  (Wirtz also works Las Vegas for Voss.)  Overall former Snapple exec Belsito remains committed to independent DSD distributors, which cover about 60% of country, with white space filled by broadliners like McLane and Kehe and some direct biz.  General intent where feasible, he assured, is to service all key channels thru local DSD shop.

Continuing with effort to add youthful relevance to Diet Coke, Coca-Cola has released collector can featuring singer/songwriter and actress Taylor Swift and her slogan, “If you’re lucky enough to be different, don’t ever change.”  In-and-out package continues alliance with 7-time Grammy winner under brand rubric Stay Extraordinary.  SF-based Turner Duckworth was agency on assignment . . . Gannon Jones has segued from nutrition to beer.  The cmo of PepsiCo’s Global Nutrition Group since 2011 has taken #2 marketing job at MillerCoors, vp of brand marketing, filling job vacated by Rick Gomez when he left for retailer Target 6 mos ago . . . Cleveland-based Youthtopia Beverages has extended its Alley Oop kids-oriented sports drink with 2 more flavors, Straw-Mango and Slam Punch, that join original sku Citrus Grind.  Alley Oop, mainly available in Fla so far, is first of several healthier lines the co plans to introduce . . . Marley Coffee has been sanctioned by Coffee Industry Board of Jamaica as first whole-bean coffee blend employing famous Jamaican Blue Mountain coffee on account of its success in selling pure JBM coffee.  Denver-based coffee roaster will offer “Smile Jamaica” line using 20% JBM and 80% Rainforest Alliance-certified coffee, both in 8-oz bags and RealCups pods.  Marley Coffee distributed about 61K lbs of Blue Mountain last year via retailers like Safeway.

Sneaky Pete’s Oat Beverage has won test in Target stores, which will carry all 5 flavors of PET-bottle line for 3-month cycle in about 60 stores.  Sneaky Pete’s founder/ceo Pete Stilianessis termed retailer a particularly good fit at time it’s been rolling out line of private-label, GMO-free organic foods under Simply Balanced brand.  Test launching this month will include mix of regular and Super Target stores in Colo (20 stores), Calif (16 stores), NY and Conn (6 each) as well as a handful in NJ, Mass and Utah.  Nov 23 has been set as a national demo day in each store.  Sneaky Pete’s is based in Butler, NJ.

Red Bull’s bet on involvement with 34th America’s Cup yacht race seems to have paid off big time as Oracle Team USA captured broad public interest by making unprecedented comeback from 8-1 deficit to clinch series at 9-8 over Emirates Team New Zealand.  Energy drink marketer played in several tiers, sponsoring parallel Red Bull Youth America’s Cup, grinding out documentary-style videos and cooking up related events that might pull in brand’s youthful altsports-oriented demo.

At main event, Red Bull logo was emblazoned on sailors’ helmets and co mustered elaborate video apparatus via Red Bull Media House operation to quickly produce series of video presentations of cinematic quality – including oddball events conjured up to glean eyeballs among energy brand’s core demo.  One featured kite board champion Kai Lenny putting his $1,500 kite board up vs Oracle Team USA’s $15 mil catamaran in race on SF bay – “like bringing a knife to a gun fight,” in words of Oracle Team USA grinder Matt Mitchell.  Another pitted pro surfer Jamie O'Brien vs pro snowboarder Travis Rice, each outfitted with $1 mil AC45 catamaran with crew that included members of Oracle Team USA itself.  Rice won best-of-3 event.

Red Bull North America also ponied up to sponsor simultaneous new youth competition called Red Bull Youth America’s cup for 19-to-24’s, using same wing-sailed AC45 catamarans of senior races.  Inaugural event drew 10 teams from 8 countries and was Webcast on ESPN3 and broadcast internationally via partners like ESPN International and Fox Sports.  Also in overall mix was 6-part Web series titled No Second Place that offered behind-the-scenes glimpses of event.

Some 22K visitors trolled exhibits and seminars at last week’s Natural Products Expo West at Baltimore Convention Center, where 1,200 exhibitors set up shop for 3 days, including 400 first-timers, sponsor New Hope Natural Media said.  Among winners in product sectors spanning foods, bevs, personal care items and was Kombucha Wonder Drink collaboration on loose teas with Tea Tibet, dubbed most innovative product at show.  New Hope also used show as platform to unveil suite of data and analytics tools called NEXT that include NEXT Accelerator (nextaccelerator.com), which aims to help entrepreneurs navigate complexities of natural products biz.  

MetaBrand, ambitious brand incubator launched by natural-foods vet Eric Schnell in Edison, NJ, continues to fortify staff.  Debbie Wildrick, former 7-Eleven buyer and exec at entrepreneurial bev brands, has upgraded role from dir of bevs and snacks to chief advisory officer, helping manage staff of 35 advisors, some of them in staff roles and others available on call.  And co has recruited Craig Fortin, a vet of Skinny Nutritionals and Brad’s Really Raw Kale, as dir of supply chain & procurement.

Meanwhile, incubator continues to add projects to those outlined a few weeks ago from BBI visit to co’s NJ operations (BBI, Aug 23).  Latest to hit critical mass has been Martha Stewart-branded bev for Walmart stores.  Martha Stewart Uliv Java is almond-milk-based vegan organic iced coffee line enhanced with herbs and botanicals that will offered in 12-oz glass bottles in Mocha and Vanilla flavors.  Production is due this Jan.  It will be pitched in part as offering just 75 calories per 8-oz serving, about half those of Starbucks bottled coffee.  Also in line will be bagged coffee line fortified with herbs.  In summer, Eric was able to confirm rumor that he was doing work on Stewart-related project, but was only able to offer details at Baltimore show last week.