The Flow: PepsiCo to revamp Gatorade, sit-out Super Bowl

<

P>ON TOP

  • PepsiCo to air no drink ads during 2010 Super Bowl – After 23 years of producing and airing the kinds of soft drink commercials that people talk about for months (or years), PepsiCo will keep its beverage brands out of this year’s Super Bowl. Link
  • PepsiCo plans to revamp Gatorade in New Year – PepsiCo announced that it will invest $30 million in Gatorade over the next year, targeting the brand more toward athletes with formulations for pre- and post- exercise use. Link
  • Nestle Waters North America Inc. announced its next-generation Eco-Shape bottle, the company’s latest step in an ongoing commitment to reduce plastic consumption across its brand portfolio. Link


ON THE SHELVES


  • PepsiCo will bring back bring back Pepsi and Mountain Dew Throwback on Dec. 28. Link Dr Pepper Snapple Group will also release a sugar-sweetened version of Dr Pepper Called Dr Pepper Heritage. Link
  • North Cove Springs announced a line of natural flavored waters called North Cove Naturals. Link


DISTRIBUTION


  • The University of Nebraska at Kearney entered a 10-year contract with Pepsi for pouring rights on campus. Link
  • Blue Gem Enterprise announced that it has added Zephyrhills Water to its roster of brands available through its direct store distribution network in South Florida. Blue Gem will begin carrying and selling Zephyrhills by January 1st. Link
  • BeBevCo announced that Las Vegas based distributor Best Products will distribute Koma Unwind “Chillaxation Shots™” as well as Potencia Blast Energy Shots.
  • Blue Gem Enterprise announced it will distribute the full line of organic juices from the Apple Rush Company. Link
  • DRY Soda announced recent placements in Coffee Bean and Tea Leaf, Dean and Deluca, Fred Meyer, Fry’s, Kroger Southwest, H-E-B and Jewel-Osco. Link
  • Reed’s, Inc. announced that its Natural Energy Elixir has been picked up in 280 Cost Plus World Markets stores. The product is also available now at many Bristol Farms and Mother’s Markets locations. Link
  • Global Beverage Enterprises, Inc. announced that it has signed Tree of Life, Inc. to distribute its Mr. Q. Cumber all-natural sparkling beverage. Link
  • Skinny Nutritional Corp. announced that Bay Area Distributing Company, Energy Source Distribution, GBL Distributing Company, Morris Beverage Distributors, and Saccani Distributing Company will now distribute Skinny Water throughout California. Link
  • Innovative Beverage Group Holdings, Inc. announced that it will begin distributing drank to Canada within the first few weeks of January. Link


IN THE COURTS


  • Stokely-Van Camp, the owner of Gatorade, and The Coca-Cola Co., Inc., owner of POWERADE ION4, announced an agreement that both parties would end the New York U.S. District Court litigation initiated by SVC about POWERADE ION 4’s advertising campaign.
  • Seven African-American former warehouse employees at the Dr Pepper/Snapple plant in Northlake, Ill. filed a racial discrimination lawsuit against the company. Link


LAW, POLICY, AND ADVOCACY


  • Absopure Water Company added its opposition to a proposed bottled water tax in Michigan, calling it a “job-killer.” Link
  • A federal working group proposed limiting food advertising aimed at children to only healthy foods amid concerns that current marketing practices are worsening the nation’s obesity epidemic. Link
  • The latest warning that energy drinks are dangerous comes to us from the Center for Science in the Public Interest in Washington D.C., who said the drinks can lead to increased blood pressure, rapid heart rate and other side effects in young consumers. Link
  • Remember that nauseating New York City anti-soda commercial? Unsurprisingly, the American Beverage Association is upset about it. Link
  • California’s beverage container recycling program is in trouble because state officials have been using money from the recycling fund to close the budget gap, NBC Los Angeles reported. Link
  • The Council of Canadians accused The Coca-Cola Co., Inc. of “green-washing” the public with its pro-environment campaign. Council supporters posted anti-Coke signs on the front lawn of city hall in Vancouver, calling attention, they said, to both Coke’s bottled-water practices and Vancouver’s contentious Olympic sign bylaw. Link
  • Food companies’ branded online interactive games came in for criticism during a presentation of new research at the FTC’s Dec. 15 hearing on food marketing and childhood obesity. Link


BRAND MARKETING & PROMOTION


  • PepsiCo launched an online contest where consumers can win a Flip HD camcorder and a year’s supply of Pepsi by composing a video of their happiest memories of 2009. Link
  • Muscle Milk announced the sponsorship of the Joe Gibbs Racing Motocross team and its supercross and motocross programs. Link
  • Fortune magazine published an article about The Coca-Cola Co., Inc.‘s efforts to curb global warming, including an anecdote from Muhtar Kent’s recent trip to the arctic to see polar bears like the ones Coke once used in its advertising. Link
  • PepsiCo signed on as a sponsor of Simon Fuller’s new entertainment venture, IF I CAN DREAM, which will launch in early 2010 and be distributed and marketed to a global audience through a number of integrated partnerships with blue chip brands. Link
  • Skinny Nutritional Corp. announced that it intends to reposition its line of Skinny Waters as a beverage rather than a dietary supplement in response to recent draft guidance and related correspondence from the U.S. Food and Drug Administration. Link
  • The Coca-Cola Co., Inc. extended its sponsorship Of PGA Tour events. Link
  • FIJI Water announced that it is joining 1% for the Planet, a global alliance of more than 1,100 companies who pledge 1% of their annual sales directly to non-profit organizations focused on sustainability. Link


TRENDS AND STUDIES


  • A natural food ingredient called Wellmune WGP reduced upper respiratory tract infection symptoms in marathon runners while increasing vigor and overall health, according to a study published in the December issue of the Journal of Sports Science and Medicine. Link


FINANCIALS


  • Coca-Cola Enterprises announced 2010 financial guidance that includes high single-digit earnings per diluted share growth and continued strong free cash flow. In addition, the company will resume its existing share repurchase programs and expects to complete the purchase of shares totaling $600 million by the end of 2010. The company also increased its full-year 2009 guidance for comparable, diluted earnings per share to a range of $1.56 to $1.59. Link
  • Lifeway Foods, Inc. announced that Lifeway’s board of directors approved a new share repurchase program of up to 100,000 shares. Link
  • Crunk has engaged GBS Growth Partners to assist them in the acceleration of their brand. Link


SUPPLY SIDE


  • DSM Nutritional Products has launched CaroCare Nat. β-Carotene 10% CWS Star, a natural-source β-Carotene formulation for the coloration and fortification of food and beverages. Link
  • Robertet Flavors completed a 110,000 square foot building expansion program that significantly increased the company’s flavor manufacturing capabilities. Link


PEOPLE


  • Coca-Cola Enterprises announced the Company’s board of directors has elected Véronique Morali as director, effective February 11, 2010. Morali, 51, is the vice-chairman of Fitch Group, the holding entity of financial service organizations such as Fitch Ratings, and president of Fimalac Developpement, an internationally listed financial services company where she was director and chief operating officer from 1990 to 2008. Link


ETC.


  • FDA officials determined that the bottling plant that shipped a can of Diet Pepsi with a frog in it — and also racked up 12 other consumer complaints since 2007 — passed its inspection with no violations. Link
  • Evian‘s “Roller Babies” ad ranked 14th on AdWeek’s list of the 30 freakiest commercials of 2009, a list that included a disturbing number of public service announcements. Link