Campbell Soup rewarded Ed Carolan for getting core soup biz back on track by promoting him to prexy for US retail, post that encompasses $3.5 bil domestic soup, sauces and bev business. As noted, key decision he'll be making soon will be whether Campbell continues distribution alliance with Coca-Cola on RTD bevs or moves on to other options, including shift to brokers or return to indie DSD network abandoned when it signed with KO (BBI, Jul 26). Before running Soup & Simple Meals biz, starting in 2011, P&G vet Carolan, 44, had served run Pepperidge Farm Snacks div and Stockpot & N Amer Foodservice businesses. CPB also named Tim Hassett as svp/gm for struggling Away from Home (foodservice) biz and chief customer officer of Campbell North America. Both report to Campbell N Amer prexy Mark Alexander. With co having scored solid success with several recent innovations, it also promoted its vp for Campbell North America innovation, Darren Serrao, to svp for innovation & new biz development, with mandate to continue efforts to bring in new consumer demos such as millennials.

Rising Beverages, which has made NY a crux of its efforts to get cap-dispensed Activate to ignite, is in talks to add mainstream distributor Preferred to its distribution mix after earlier effort at natural specialist Gourmet Guru got brand seeded in higher-end accounts. Rising Bevs ceo Reza Mirza confirmed shift over weekend, saying "Activate's launch plan was to first seed the influencer accounts and the natural channel in the New York City market. GG did a great job getting us there and established the brand in key influencer accounts. Now is the time for us to expand distribution to the up-and-down-the-street delis and bodegas there. This has been in line with our strategy. That is why we have added Preferred Beverage to our distribution network." He said Preferred would handle NY territory while Gourmet Guru would continue to support brand in some key accounts, at time Activate has beefed up sales and marketing teams in both NY and Boston, another key metro in eastern expansion. Preferred founder Lou Ferraro confirmed discussions but cautioned that contract hasn't been finalized yet. (See update below on Gourmet Guru's strategy.)

A large study of 9,600 children found that preschool kids (age 2-5) who regularly consumed sugary soft drinks "were 43% more likely to be obese by age 5 than their peers who rarely had those drinks," reported US News & World Report. Study, to be published in Sep issue of Pediatrics, found 2-yr-olds who had 1 sugary drink a day "gained more weight over the next few years." While the study cannot definitely pin weight gain on soft drinks, authors said parents should be providing only water and milk instead. "We can't say for sure that cutting out sugar-sweetened beverages would prevent excess weight gain," acknowledged lead author Dr Mark DeBoer. "But there are healthy sources of calories, and there are less healthy sources. Sugar-sweetened beverages don't have other nutritional benefits." Study found 15% of the kids "were overweight at any age."

Further acceding to realization that consumers are not sitting down to their morning bowl of cereal in same #s as in past, Post Holdings has agreed to purchase maker of Premier Nutrition shakes, Titan protein bars and Joint Juice elixirs for $180 mil in cash. It anticipates deal to close by Sep. Deal to buy Premier Nutrition Corp brings into fold an Emeryville, Calif, co that "provides Post a platform in the growing active nutrition and supplements businesses," Post said. Move comes as St Louis-based co has continued to downsize cereal biz in face of waning demand, most recently by shuttering a 140-worker cereal plant in Modesto, Calif, saying demand for the Honey Bunches of Oats manufactured there has slipped 9% over past year, per news reports. Moves mimics moves of Post's cereal rivals to diversify into related nutritional segments or to enter bev segments with protein-fortified drinks under cereal brands like Special K.

Post, which trades publicly under POST symbol, said PNC will continue to be independently managed from Emeryville, with ceo and former Red Bull exec David Ritterbush remaining at helm. "We are excited to enter this high growth and dynamic category," said Post chmn/ceo Bill Stiritz. "We could not be more impressed with the terrific quality of the Premier team Dave has put together." On full-year basis, deal should add about $130-140 mil to Post's net sales and about $17-20 mil to its cash flow. By structuring transaction as reverse subsidiary merger, Post should be able to harvest net operating loss carryforwards and other tax benefits in range of $22-26 mil, it figures.

Since coming aboard, Ritterbush had made key course adjustment from push into enhanced-water-style delivery system of bev, while orchestrating fall 2011 acquisition of Premier Nutrition brand, putting it into sports nutrition and weight loss realms.

Modest revenue growth reported for 2d qtr by Jamba Inc disappointed investors, but income met expectations and JMBA brass made case that key initiative on fresh-juice front could add several points to stores' sales growth as it's expanded thru system. Also off to good start is collaboration with KonaRed coffee-berry bevs on pair of in-store items.

Revenue rose 1.9% to $67.3 mil while operating income rose 32% to $6.6 mil. Net income rose 51% to $6.2 mil. Same-store sales edged up 1.7% (2.2% at company-owned stores). "Despite the challenging consumer and competitive environment, Jamba had strong quarterly achievements and also set the stage for future performance gains and earnings growth," argued chmn/ceo James White. Same-store sales, while off prior-year pace, "outpaced many of our peers," and by increasing marketing investment and highlighting value promos, "we continue to grow our base of light and lapsed users."

Tho rollout of premium (meaning "fresh") juice platform is still in early stages, launch stores are showing 300-400 basis point increase in same-store sales, said cfo Karen Luey, with juice notching about 12% of sales even before marketing has kicked in. Consumer pull initiatives will kick off later this qtr, she indicated. Initiative has hit 23 locations so far out of anticipated 50 locations in first wave, White indicated, and co will disclose in 2014 its plans to accelerate rollout beyond that.

White made case that initiative taps into broader consumer move to incorporating fruits and veggies in their diets, with juice one of easiest ways to deliver that. "We actually think we're in the process of building an advantaged platform to deliver against that trend in the highest order, which is fresh," he said.

White also cited as promising a summer promo, just getting under way, that employs KonaRed coffee-berry-based bevs in KonaWellness bowls that also use soy milk, fruits and organic granola toppings. Coming shortly down pike is Kona Berry Blast Smoothie, with soymilk, raspberry sherbet, strawberries, blueberries and Jamba Antioxidant Boost.

Recent reports from pair of local TV stations that Casey's General Stores and QuikTrip chains had tightened up their energy drink policies, which caused a stir after being picked up by BBI and other news outlets, seem to be pretty much all wet. Casey's denied that it had inaugurated any general policy to restrict sales of energy drinks and shots to shoppers 18 and over, as KLCTV had reported, and energy market execs told BBI its precautions seem confined to shots and extra-high-caffeine bev brands like Spike. Nor does QuikTrip have similar policy, as KSHB-TV reported.

Strong Q2 revenue gain enabled Sodastream ceo Daniel Birnbaum to take victory lap in front of skeptics who'd wondered whether soda machine marketer was due for slowdown in torrid growth. Revenue soared 28.5% to $132.4 mil and net income was up even steeper 36.1% to $12.9 mil.

Tho there was "some concern about our ability to grow the US as we lapped last year," sales here surged 42%, Birnbaum noted, demonstrating that co's growth is "not dependent on new-door expansion" at retailers like Walmart, which recently came aboard. Brand has debuted on QVC shopping network, just entered PC Richards and BJ's chains, expanded to all Best Buy stores, and added 400 Kroger doors and 425 Office Depot Doors. Some 13K gas locations now enable quick exchanges of cartridges. Kraft's Country Time, Crystal Light and Kool-Aid brands have joined flavor range. In US, co sold 312K soda machines in qtr, along with 1.2 mil CO2 refills and 3 mil flavor pods. For first time it's getting ready to advertise not just the machines but the flavors, too. Tho co had earlier spoke of targeting groceries and drugstores, Birnbaum said that while those are on the roadmap, they won't be meaningful part of mix this year. Even so, landscape is promising enough for Israel-based co to raise 2013 target from 27% growth to 30%.

Asked by one analyst whether SODA would consider finding a more permanent partner (meaning investor or acquirer), Birnbaum said he doesn't comment on rumors but noted that he's always open to partnering with great brands: Samsung and Kitchenaid on equipment side, Kraft, Ocean Spray and V8 Splash on flavor side. "I expect there will be a day we get some soda brands on the platform because they can't ignore the growth in this category . . . and it's here to stay," he said.

Strong Q2 revenue gain enabled Sodastream ceo Daniel Birnbaum to take victory lap in front of skeptics who'd wondered whether soda machine marketer was due for slowdown in torrid growth. Revenue soared 28.5% to $132.4 mil and net income was up even steeper 36.1% to $12.9 mil.

Tho there was "some concern about our ability to grow the US as we lapped last year," sales here surged 42%, Birnbaum noted, demonstrating that co's growth is "not dependent on new-door expansion" at retailers like Walmart, which recently came aboard. Brand has debuted on QVC shopping network, just entered PC Richards and BJ's chains, expanded to all Best Buy stores, and added 400 Kroger doors and 425 Office Depot Doors. Some 13K gas locations now enable quick exchanges of cartridges. Kraft's Country Time, Crystal Light and Kool-Aid brands have joined flavor range. In US, co sold 312K soda machines in qtr, along with 1.2 mil CO2 refills and 3 mil flavor pods. For first time it's getting ready to advertise not just the machines but the flavors, too. Tho co had earlier spoke of targeting groceries and drugstores, Birnbaum said that while those are on the roadmap, they won't be meaningful part of mix this year. Even so, landscape is promising enough for Israel-based co to raise 2013 target from 27% growth to 30%.

Asked by one analyst whether SODA would consider finding a more permanent partner (meaning investor or acquirer), Birnbaum said he doesn't comment on rumors but noted that he's always open to partnering with great brands: Samsung and Kitchenaid on equipment side, Kraft, Ocean Spray and V8 Splash on flavor side. "I expect there will be a day we get some soda brands on the platform because they can't ignore the growth in this category . . . and it's here to stay," he said.

To many, CSDs are played-out category struggling to hold onto its relevance to younger consumers. Not North Carolina icon Cheerwine. Deeming last year's Avett Bros-starring Legendary Concert a success in building awareness for brand that's reaching new fans by playing heavily on its rootsy authenticity, Cheerwine is expanding effort this year while adding a few tweaks to further engage consumers. Brand-building effort is playing on unusual mix of lack of ubiquity, which allows fans to feel they're discovering brand on their own, and participation in strong Pepsi network in some parts of Southeast, said sales/marketing svp Tom Barbitta. Throw in a hot, Grammy-winning band with local roots whose frontman Scott Avett has had uncredited role doing voiceovers for Cheerwine radio ads for years, and it's proved good tentpole for brand's major marketing initiative of year.

Last year's concert drew 5K fans to sold-out site in Charlottesville, Va, while 12K additional concertgoers from 17 countries watched event on Livestream (BBI, May 21 and Oct 19, 2012). For Legendary Giveback II, Cheerwine is searching for site in Southeast that's double that size and adding new bells and whistles that will deepen impact. As last year, all proceeds are donated to charities - this year, Operation Homefront, Big Brothers & Sisters and 3d org to be chosen by Cheerwine and Avett Bros.

As last summer, Cheerwine will offer fans chances to attend concert via sweepstakes on co's Facebook page. But fans also will be invited to play "Spin to Win" game for chances at more prizes by entering codes found on specially marked packs of Cheerwine. Given strong response brand enjoyed last year even in states where it does not have retail distribution, sweepstakes has been expanded this year to allow entries from nearly every state. In another tweak, Avett Bros were given blank cans to doodle on, which will are being inserted into random 12-packs and promoted by subtle teasers on Facebook. Effort has helped boost brand's Facebook fan base from 100K to 125K just in past 3 months, Tom said.

West Coast Initiative at BevMo Panning Out So Far Co took unusual tack in approaching West Coast earlier this year: devising slim-can version with cane sugar rather than HFCS, produced at Varni 7 Up operation in northern Calif. So how's initiative panning out? Barbitta says so far so good, with brand moving to #4-selling vintage soda at BevMo 130-unit bev chain, out of 170 such brands retailer carries. Signs are that it's not cannibalizing BevMo's glass-bottle items. Partners now are evaluating ways of stepping up collaboration, as Cheerwine mulls how to build on beachhead in challenging region.

Private-label co Cott skated surprisingly adroitly thru 2d qtr revenue decline caused by unprecedented CSD category decline, meeting earnings expectations and hoping that planned layoffs in 3d qtr do enough to cushion co against continuing CSD softness. Revenues sagged 10% to $564 mil and adjusted ebitda came in at $60.7 mil vs $68 mil a year earlier. Avg price per case increased thanks to product mix that tilted to apple-based bevs from casepack water, but that wasn't enough to offset 12% volume declines in reducing gross margin to 13.6% from 14.7% a year earlier. "Ebitda came in essentially in-line (with expectations)," wrote Stifel Nicolaus' Mark Swartzberg of cash flow picture, "in spite of a revenue miss" in which $563.9 mil topline considerably lagged consensus view of $609 mil.

On conference call this morning, ceo Jerry Fowden warned investors that he expected no meaningful change in CSD environment, stepping up pressure to broaden array of formats and bev segments, and to reach broader array of retail customers, particularly at high end. Recently concluded acquisition of UK's Calypso soft drinks co (unrelated to US lemonade brand of same name) helps in that regard by diversifying product mix to include freezable items and other new formats while offering opportunities in foodservice. Similarly, additional bottle-blowing capacity is coming online, and pair of pouch fillers installed in Dallas/Ft Worth for anticipated fall startup already have signed unidentified anchor customer to take over 60% of volume - customer that Cott previously has done little or no biz with, Fowden noted. Diversification into slim cans from standard 12-oz cans and 2-liter PET bottles also has opened up opportunities at new retail customers.

The 12% volume decline, to 212 mil cases, was about equally comprised of lower casepack water sales, broader CSD market decline and increased promos by national brands, which made Cott's private-label brands less appealing. COT will continue to ease back on casepack water category as a money loser but is seeing signs that retailers are ready to start rebuilding a juice category that got hammered by soaring input costs a couple of years ago, just after Cott acquired juice producer Cliffstar. As for CSDs, COT built its strategic plan around assumption that CSDs would be declining in 1-3% range, only to see 4.5% category decline in Q1 worsen to 5% in Q2, "and we see that as an environment that will be maintained," Fowden said. Staff cutbacks announced in Jun should shave $6 mil from SG&A line as they take effect in 3d qtr, providing some insulation vs continuing woes in co's core CSD biz.

As he has before, Fowden indicated Cott intends to pursue more contract mfg biz, segment that accounts for 20% of its UK biz but only 3% in US. Growing that would provide greater stability and predictability, he said.