The Flow: FDA warns beverage firms; Expo West show planner

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P>ON TOP

  • FDA warns beverage firms on health claims – In another sign that the regulatory environment has changed, the U.S. Food and Drug Administration recently sent letters to 16 firms – including five RTD beverage companies – citing ingredient and health claim violations. Link
  • BevNET’s 2010 Expo West Show Planner – BevNET.com will be on hand to cover and report on the beverage-related exhibitors at the show – over 120 in total this year. Link
  • Early Registration: BevNET Live Summer 2010 – BevNET Live is returning to New York in June with an expanded program, a growing following and an enhanced venue. Link


ON THE SHELVES


  • re:newal premium spring water made its national debut at the Green Products Expo in New York City. This follows an agreement with the Cancer Treatment Centers of America to begin distribution in hospitals across its national network. Link
  • Maayan, LLC is bringing Bach flower essences to U.S. consumers with the introduction of MindEssential Relax. Link
  • Campbell Soup Company is now making V8 V-Fusion 100 percent juice available in single-serving, 8 oz. slim-cans. The new cans are available in 6-packs at supermarkets nationwide as well as 24-packs of 11.5 oz., multi-serve cans at select club stores. Link
  • Echo Beverages announced the launch of echo water. echo is packaged in a 100 percent post-consumer recycled plastic bottle. Link
  • ZICO announced the release of three coconut water SKUs in 14 oz. plastic bottles. Link


DISTRIBUTION


  • Roaring Lion was named the exclusive energy drink of Los Angeles-based luxury hospitality and development company, SBE. Through the partnership, Roaring Lion will be served as the exclusive energy drink in all SBE-owned restaurant and nightlife properties
  • The University of Arkansas at Little Rock will receive $1.9 million from a Pepsi bottler for exclusive rights to sell its products on campus. Link
  • Bond Laboratories, Inc. announced agreements with A.S. Barboro Distributing Co. and DET Distributing Co. to distribute Resurrection Anti-Hangover drink throughout the Memphis, Jackson and Nashville, Tennessee. Link
  • Innovative Beverage Group Holdings, Inc. announced a partnership with Johnson Distributing Company to bring drank to Wisconsin. Link


LAW, POLICY, AND ADVOCACY


  • Mississippi State Sen. Deborah Dawkins and state Rep. John Mayo proposed a new tax on sugar-sweetened beverages after a study by the John Stennis Institute of Government found that Americans drink more soft drinks than any other country in the world, and that sugar consumption from sodas are 33 percent higher than other sweets. Link
  • A proposed federal ban on junk food in public schools has some Florida school districts worried that students will stop plunking quarters into machines when soda is gone. Link
  • Philadelphia Mayor Michael Nutter proposed a 2-cent-per-ounce tax on sugar-sweetend drinks, which would raise the price of a 2 L bottle of Pepsi by $1.35. Diet drinks would be excluded. Link As should be expected, the Pennsylvania Beverage Association called the proposal a “cash grab that’s bad for business.” Link
  • Citing childhood obesity concerns, the Syracuse (N.Y.) Common Council rejected a school district proposal to contract with Coca-Cola Bottling Co. for pouring rights in city schools. The deal included stipulations about when and where high-calorie sodas and drinks could be available to students, but was still defeated 3-6. Link


BRAND MARKETING & PROMOTION


  • redleaf announced that it’s the official water of the 2010 Spring Training season for the Los Angeles Angels of Anaheim and the Oakland Athletics. redleaf water will be sold at all concession stands and by vendors as well as served in all clubhouses and dugouts at both Tempe Diablo Stadium (home of the Angels) and Phoenix Municipal Stadium (home of the A’s). Link
  • A new Diet Coke marketing campaign, which launches with a 60-second commercial centerpiece called “Stay,” celebrates the daily achievements of the next generation of young adult Diet Coke drinkers. Link
  • Red Bull released a limited-edition six-pack featuring Olympic gold medalist Lindsey Vonn and an “enhanced reality” feature. Link


TRENDS AND STUDIES


  • Kidney stone sufferers are often encouraged to drink more citrus juices, but not all juices have the same effect, reports the New York Times’ Health Blog. Link
  • U.S. demand for food and beverage additives will likely expand 3.5 percent annually to $8.5 billion in 2014, reports The Freedonia Group. Link


DEALS


  • Caffey Distributing Company, a Greensboro, N.C.-based beverage distribution supplier, announced a merger with Cunningham Wholesale and Rudisill Enterprises to create Carolina Premium Beverage. Link


IN THE MEDIA


  • Guarana is increasingly being used to provide the pep in energy drinks, dietary supplements, food products and candy, reports the Wall Street Journal. Scientists say some research supports the berry’s functional claims, but warn guarana can overstimulate the heart in rare cases. Link
  • A group in favor of New York’s proposed sugar-sweetened beverage tax has directly targeted the American Beverage Association‘s position that the tax would be a burden on consumers by instead saying the measure would be a reasonable price to pay for better health, AdAge reports. Link
  • Entrepreneur Brad Schulman launched Green Planet Bottling in 2008, with a plant-based bioplastic bottle that is fully recyclable, compostable, and returns to virgin polymer when struck with 170 degree water, the Chicago Tribune Reports. Link
  • National Geographic explored the question of whether bottled water or water fountains are better for kids. Link
  • Natural Foods Merchandiserpublished a list of its top 20 supplements. Link


FINANCIALS


  • PepsiCo, Inc. announced the final results of the elections made by former Pepsi Bottling Group, Inc. and PepsiAmericas, Inc. stockholders as to the form of merger consideration they wish to receive in the acquisitions of PBG and PAS by PepsiCo. Of the approximately 153,024,394 shares of PBG common stock outstanding as of the closing of the acquisitions that were not held by PepsiCo or its subsidiaries, valid cash elections were made with respect to 1,671,375 shares of PBG common stock (approximately 1.1 percent of the outstanding shares of PBG common stock not held by PepsiCo or its subsidiaries). Of the approximately 70,863,059 shares of PAS common stock outstanding as of the closing of the acquisitions that were not held by PepsiCo or its subsidiaries, valid cash elections were made with respect to 2,303,820 shares of PAS common stock (approximately 3.3 percent of the outstanding shares of PAS common stock not held by PepsiCo or its subsidiaries). Link


SUPPLY SIDE


  • The U.S. Pharmacopeial Convention released the seventh edition of the Food Chemicals Codex, which includes standards covering quality and purity for 1,100 food ingredients. Link


TOOTING THEIR HORN


  • Pepsi‘s “We Inspire” was recognized with an NAACP Award on Friday, Feb. 26 for advancing positive multicultural images in advertising and media. Link
  • Q Tonic appeared on “The Martha Stewart Show.” (See second clip, entitled “Mixing Cocktails”) Link
  • Fortune Magazine unveiled its yearly list of the world’s most admired companies. The Coca-Cola Co., Inc. ranked 10th. PepsiCo Inc. ranked 25th, and Nestle ranked 34th. Link


PEOPLE


  • NERD Beverage Corp. named Michael Ward, a long-time sales executive from Jones Soda Co., as its vice president of national sales.


ETC.


  • After the rise of the TEA Party, and the emergence of the satirical Coffee Party, Gawker proposed six more beverage-based political parties: The Long Island Iced Tea Party, The Monster Energy Drink Party, The Chocolate Milk Party, The Whiskey Party, The Rubbing Alcohol Party and The Cherry Coke Party. Link
  • As the latest product to latch on to the energy drink category, Fein Energy Crystals boast that they can add caffeine to any beverage without changing the drink’s taste or sugar content. Link
  • Capri Sun released a series of commercials urging kids to “respect the pouch” or be transformed into an ironic emblem of their disrespect. Link
  • An elementary school science fair in Nevada featured two beverage-based experiments. One student shook cans of Pepsi, Dr Pepper and Fresca and measured the resulting fizz. Another student tried to make plants grow faster by watering them with Monster Energy Drink. The plants grew an inch, then died. Perhaps Brawndo would have worked better. Link