BEVNET: THE FLOW
 Weekly Newsletter --- Reaching 20,000+ industry professionals July 22, 2008
Send your news, questions, or comments to: Matt Casey, Newsletter Editor

BevNET Spotlight
Wild WILD Flavors dissects and directs upcoming consumer behaviors in favor of their clients' products. The WILD Team identifies emerging trends that support and drive innovative concepts and product development. WILD appraises the potential success or failure of formulations, packaging, marketing strategies and more. Contact us at www.wildflavors.com



Highlights from our magazines:

Lowering the Ceiling, Raising the Floor
Functional ingredients suppliers'  customers balance the cost of adding expensive functional ingredients against their price point.

SWEET RIDE FOR SWEET LEAF
Sweet Leaf might have started out with pillowcases for teabags and water from a garden hose, but lately the only thing the pillowcases have been good for is carrying the company’s cash.
HEADLINES FROM BEVNET.COM
Second quarter of 2008 tough for Coke, bottler
U.S. volumes remained flat while and the company reported a 23 percent drop in profits as it took a one time charge related to bottler Coca Cola Enterprises.

Olafsson: I Paid Taxes
According to Olafsson, a 6 ½ year delay from the start of an investigation into his tax status to Icelandic authorities finally getting around to charging him is cause enough for dismissal of the case.

BevBlog: Mouse-age in a bottle
Typically, the only good way a mouse and a beverage bottle go together is when Disney partners with Coke for a promotion, but Green Bottle USA has a new way to combine the two.




FEATURED REVIEW FROM BEVNET.COM
First Juice First Juice - 07/21/2008
Less sugar. More health. Better choices. First Juice can get you on a roll toward training your toddler's taste buds. Help them develop a lifelong habit of healthy eating by putting the brakes on sugar and sweet. It's simple. Yummy. And smart.

THIS EDITION OF "THE FLOW"...

Coke's financials, Roaring Lion pool

FINANCIAL
Coca-Cola Bottling says it plans to cut 5%, or 350 workers, to help offset the rising costs of sweetener and diesel fuel, Fortune reported. The Charlotte, N.C.-based bottler expects to take a charge between $4 million and $5 million to cover severance and other expenses.
Clearly Canadian Brands announced that on July 14, 2008, the company entered into an agreement with holders of our outstanding $9.36 million senior convertible notes, in resolution of certain disputes between the parties. • Teamsters Local 683 reported July 15 that workers at the Coca-Cola warehouse in Oceanside voted 64-6 in favor of their first contract on July 13. The contract expires after three years. Oceanside Coca-Cola workers went on strike July 1 over the wage disparity between Oceanside and San Diego workers. They returned to work July 14. San Diego Coca-Cola workers also walked off the job. For more, click here. • CoHo Distributing, the name of the soon-to- be Columbia Distributing Company, Mt. Hood Beverage Company and Gold River Distributing, intends to take over the Western Washington beer and portions of the nonalcoholic beverage business of Alaska Distributors. For more, click here. • The Board of Directors of The Pepsi Bottling Group, Inc. declared a quarterly dividend of $0.17 per share on PBG's common stock. Clearly Canadian Brands announced that WallStreet Research has released an analyst research report covering the Company's shares. The complete report on Clearly Canadian Brands together with attendant risk factors and additional information is available at www.clearly.ca. • Nutrinova announced that it will further increase the price forpotassium sorbate granules and potassium sorbate powder by at least 15 percent or as contracts allow. This price increase, due to the significant cost increase of energy and key raw materials, will be effective for shipments on or after August 1, 2008. Aviva Yerba Mate is moving its corporate headquarters from Seattle, Washington to Denver, Colorado on August 1st, 2008. 

PEOPLE
bot beverages announced the recent appointment of John Wolgamot as vice president of sales.
The Board of Directors of the Coca-Cola Company elected Alex Cummings executive vice president and David Taggart senior vice president of the Company. Mr. Taggart's election is effective immediately; Mr. Cummings' election is effective October 15, 2008, upon his relocation to the U.S.

DISTRIBUTION
bot has formed a retail partnership with Amazon.com, which began selling bot fortified water this past month. In addition to previously established retail presence, bot has also gained new distribution on the West Coast at Ralphs and Raley’s.
Skinny Nutritional Corp. announced the company has entered into an agreement with Red Bull Energy Drink distributor Power-Pak Beverage in the Southeastern Pennsylvania region. This is the fifth distribution deal since launching the product this year. Safeway Stores Nationwide in their natural sets, including Safeway, Vons, Dominicks and Randalls - through Tree of Life Distribution - are the first, to support LIVE Energy Drinks and the Social Cause it represents. LIVE Energy Drinks will be stocked on the shelves now and in the cold coolers in September in over 800 of their stores nationally. Fillmore Street Brewery and Nelly announced that Pimp Juice energy drink will now be sold in France and Sweden. Solvi Brands announced that it will expand the distribution of CRUNK!!! Energy Drink to the Northeast through a partnership with Polar Beverages, Inc.

LAW AND POLICY
The European Union forced the French government to allow the sale of original formula Red Bull in France. The Austrian energy drink giant had been selling a modified version that substituted caffeine for the formula’s taurine, but will make one concession with the next French Red Bull introduction: they will include a warning label to the drinks.

PROMOTIONS/APPERANCES
Roaring Lion Energy Drink presents the $2,500 added Viking Cue “Amateur” 9-Ball Tour Knoxville Championship. • The SoBe Life Water lizards return to the dance floor this summer. The rhythmic reptiles will team-up with supermodel Naomi Campbell in a new television spot themed to the classic hit, "Black Magic Woman." Pepsi turns August over to the nation's DJs with "Month in the Mix," paying tribute to the DJ and DJ culture for contributions to the American musical landscape and urban lifestyle. The Pepsi DJ Division, an association of the premier DJs in the country's top urban markets, will spearhead the month-long celebration. Formula DRIFT partnered with Red Bull Energy Drink to create the Red Bull Drifting World Championship. Evian announced that Canada's top singles player, Frank Dancevic, has signed an exclusive worldwide endorsement deal with Evian.Minute Maid will be the official juice beverage sponsor of the U.S. Olympic Team at the 2008 Olympic Games in Beijing. Minute Maid has been an Olympic sponsor since 1984. • Aquafina and Cold Stone Creamery are teaming up for the "All-Star Batter Lineup" promotion. Every Cold Stone Creamery customer who participates in the program will win a prize and one will be awarded a trip to the 2009 Major League Baseball All-Star Game. • Coca-Cola kicked off the six-city, invitation only "Coca-Cola Refresh Your Flow Tour" featuring hip hop artist Lupe Fiasco in Los Angeles. The makers of XS Energy Drink is moving to get the U.S. Energy Department to provide carbon offset credits to folks who buy its products, as reported by the Chicago Sun Times. Read the full article here. hiOsilver, inc. announced that Mariel Hemingway has agreed to serve as spokesperson for O2Cool Oxygen Water.


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