Movement to Ban or Tax Bottled Water Gains Momentum; IBWA Responds

“The consolidation of our retail customers and consumer demand for more variety are the two primary market forces driving this realignment,” said Eric J. Foss, president and chief executive officer of PBG, in a prepared statement. “By making organizational changes that reflect new market dynamics as well as investing in our supply chain operations, PBG will be better positioned to capture the full growth potential of our product portfolio, while enhancing our selling, service and operational capabilities. We are confident these moves will help us grow long-term shareholder value.”

Federal government subpoenas food makers on kids’ advertising
The Federal Trade Commission issued subpoenas to 44 food and beverage companies including Coca-Cola Co. and Procter & Gamble Co., seeking information on how they market to children, according to news reports. The companies have 90 days to respond to the orders.

The information is being collected for an FTC study on advertising of food and drinks to kids, mandated under a federal appropriations bill for the agency.

PepsiAmericas wins vending contract for Illinois state facilities
PepsiAmericas Inc. recently outbid Coca-Cola to become the sole beverage supplier to more than 2,300 vending machines on Illinois’ state property, according to news reports. The 10-year deal includes rest stops, four state universities and several prisons. PepsiAmericas becomes the state’s exclusive soft-drink vendor, and requires the company to pay Illinois around half of the price it receives for every drink sold at the designated sites.

Campbell Soup Co. seeks to divest Godiva
Campbell Soup Co. will explore strategic alternatives, including possible divestiture, for its Godiva Chocolatier business. Godiva Chocolatier is one of the world’s leading premium chocolate businesses and has annual sales of approximately $500 million. Analysts said Godiva could fetch as much as $1 billion, and cited possible buyers as Hershey Co., Cadbury Schweppes PLC, Mars Inc. and the Wm. Wrigley Co.

Nestlé will build its health care nutrition center in Minnesota
Nestlé SA will base its health care nutrition unit in Minnesota, according to news reports. The move comes just weeks after Nestlé closed its $2.5 billion purchase of Novartis Medical Nutrition, a Swiss company with U.S. and North American headquarters in St. Louis Park, Minn.

Bravo! Brands anticipates bankruptcy
Bravo! Brands Inc. has informed the Securities and Exchange Commission that, absent funding by a fully committed “stalking horse,” it anticipates filing for Chapter 11 bankruptcy protection, according to Beverage Digest, a beverage industry newsletter. Bravo! Brands Inc. develops, brands, markets, distributes and sells nutritious, flavored milk products throughout the U.S. Bravo! Brands’ products are sold under the brand names Slammers® and Bravo!™. The Slammers® products are available in many channels of trade.

Better Vendors co-op tabs Blue World for rebate collection
The Better Vendors Association Co-op, Inc., a Chicago-based purchasing cooperative, has selected Blue World, Inc. as its partner in the collection of rebate information and to provide other services for its members.

According to BVA Executive Director Brian Faley, “Blue World takes BVA beyond simple data collection. Their Vend-Track system will allow BVA members to view all of their individual vend, OCS and foodservice purchases online each month.”

Who’s Your Daddy starts vending shipments under Vistar contract
Who’s Your Daddy Inc. announced that shipments have begun under its previously announced contract with Vistar Corp. In addition to these shipments in three U.S. states, the company intends to extend its reach into this market with additional regional representation. The vending machine rollout will be managed by Focus 365, the Anaheim, Calif.-based sales arm for Who’s Your Daddy’s vending operations.

“As our full-line vending distributor, Vistar’s industry knowledge and experience combines with its national presence to provide us with a decisive competitive advantage,” said Edon Moyal, CEO of Who’s Your Daddy, Inc., in a prepared statement.

“Our agreement with Vistar Corp. was a critical initial step we needed to successfully penetrate the multi-billion dollar vending market,” Moyal added. “This represents a new phase in the commercial expansion of our unique energy drink products.”