I found a very interesting article while surfing one of the greatest sports blogs on the Web, Deadspin. According to The Brown Daily Herald, the NCAA has sent out an email to coaches and student-athletes informing them that some flavors of Vitaminwater are banned under the body's rules. According to an organization that conducts drug testing for some NCAA schools, six of the 15 flavors of Vitaminwater "contain common stimulates or other psychoactive chemicals that could be problematic for both the University and the student-athletes."

The article made me think back to some baseball players (not A-Roid or Baroid) who have blamed their positive tests on supplements and unknown ingredients (and for fairness, I think some football players used this "dog ate my homework" style defense as well). I just wonder if any of them sampled Vitaminwater ahead of their tests. However, back to the problem.

Don't you just hate it when one of the companies in your portfolio finds itself the subject of litigation? Especially when it's a lawsuit not so much for money but to generate a little bad publicity? I know, lawsuits are part of the game of any business. They are nothing more than another cost on the income statement. But I hate it when it has to do with an acquisition that is still young. I'm talking about Coca-Cola (NYSE: KO) and a lawsuit brought against its VitaminWater asset.

According to this source, The Center for Science in the Public Interest doesn't like the way that Coke publicizes the health benefits of VitaminWater and is suing to make its point.

Words on the label of the bottles of the product irk the group, words like "defense" and "rescue." For those who have never ingested one of these drinks, these are the names of the drinks and are supposed to help consumers know which beverage to use in case you are feeling sick, or are feeling fatigued, etc.

Is there anything cooler than Kool-Aid? Kraft (NYSE: KFT) believes there is, my friends. In fact, Kraft thinks a healthier Kool-Aid is pretty darn hip!

According to this AP article, Kraft wants to position the Kool-Aid brand to health-conscious moms as a beverage that is okay for kids to consume. The food company will be adding vitamin E to one of the Kool-Aid varieties, and it has reformulated its sugar-free lineup to improve the taste. There's also a new Kool-Aid product on the market called Burstin' Waters that is supposed to be relatively healthy.

The company actually has been pretty good about trying to make its products not as junky. As the article states, Kraft introduced an initiative a few years back to create a set of nutritional guidelines that would aid the company in making its portfolio more in tune with the current zeitgeist; indeed, moms everywhere seem to be getting sick of putting sugary, fat-inducing foodstuffs into the stomachs of their kids. Of course, I'm sure kids still get away with eating junk at times (it's like an inalienable right of the youth); for the most part, though, consumer choices are shifting, and woe be the consumer-goods entity that does not respond. Just ask Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP). Those two have been kicking it into high gear when it comes to alternatives to sugary carbonated sodas. Pepsi and Coke now offer all kinds of waters and enhanced beverages; in Pepsi's case, many of its salty-snack products are decidedly healthier. Coke purchased VitaminWater last year, and has been doing well with it. And with vitamins all the rage, Kraft would be smart to really promote the heck out of that vitamin-E addition.

Because a long, holiday weekend can be a great time to pause and reflect -- to take a step back and look at the bigger picture -- here are some highlights from BloggingStocks a year ago today: May 25, 2007.

• Consumers and investors alike were eager for the launch date of Apple Inc.'s (NASDAQ: AAPL) ballyhooed iPhone.
• Coca-Cola Co. (NYSE: KO) announced its acquistion of Vitaminwater.
• Online retail shopping was on the upswing.
• Dell Inc. (NASDAQ: DELL) planned to begin offering its products at Wal-Mart Stores Inc. (NYSE: WMT).
• Declining new home sales in April signalled more weakness in the housing market.
• Home Depot's (NYSE: HD) new CEO began the 2007 annual meeting with an apology.
• Microsoft Corp. (NASDAQ: MSFT) denied rumors about its interest in acquiring Yahoo! Inc. (NASDAQ: YHOO).
• BloggingStocks speculated about the blue chips of 2017.
• Georges Yared reflected on the state of the market conditions and prospects for the future: Part 1 and Part 2.

And two years ago, May 25, 2006:

• Microsoft admitted that there would be delays in the relase of its Vista operating system.
• Ken Lay and Jeff Skilling were found guilty of defrauding Enron investors.

According to an article on Reuters, Coca-Cola (NYSE: KO) is feeling the pressures of the flat domestic marketplace. COO Muhtar Kent, who will soon become the CEO, said in comments at a speaking event in Japan that Coke will be evaluating an acquisition strategy to grow the long-term prospects of its beverage business.

Now, this doesn't mean that a large purchase or merger is on the horizon, but it does mean that shareholders can expect, according to Kent, small, targeted asset buys. He did, however, specifically state that the company isn't giving up on organic growth, either, in its quest to expand its presence in beverages and beat back the ongoing threat of enemy number one, PepsiCo (NYSE: PEP).

He better not be giving up on it. Coke's stock recently retreated from its 52-week high of $65.59 to a price, as of noon today, of $56.37. The stock has done well over the last year, and this could be considered a normal consolidation. However, there has been a lot of buzz lately about Coke's domestic weakness.

Coca-Cola Co. (NYSE: KO) really needs to get things going in the North American territory. If you take a look at Coke's latest earnings report, you'll see that unit case volume moved up 1% for the fourth quarter, and down 1% for the entire fiscal year. That's well below the 6% growth in volume experienced overall. It's no wonder that the Associated Press highlighted the problem in North America in a recent article on comments made by Coke's COO Muhtar Kent (he will be the new CEO starting July 1) at a conference in Boca Raton, Florida.

Kent mentioned Coke Zero and the VitaminWater brand -- which Coke gained after acquiring Glaceau last year -- as being two key beverages to leverage to drive growth. They will probably help. I recently tried some of that VitaminWater stuff the other day -- not bad, although I suppose its appeal goes beyond the taste factor, as it basically relies on the consumer feeling healthier after drinking it (at least in terms of perception).

In 2005, hip-hop star 50 Cent (née Curtis Jackson) appeared in a loosely autobiographical film, Get Rich or Die Tryin'. Two years prior, the Eminem protégé had released his debut album of the same name. The album was a critical and commercial success; the same can't be said for the movie. Either way, while nine bullets legendarily attempted to fell Jackson in his youth, it's safe to say 50 has achieved his goal of impressive wealth. In September, "Fiddy" appeared second on Forbes list of "Hip-Hop Cash Kings," banking $32 million in 2006 alone.

In May 2007, Coca-Cola (NYSE: KO) purchased a little company called Glaceau, which makes Vitaminwater. The soft-drink giant's $4.2 billion cash and stock purchase translated into a payout of $400 million for 50 Cent, who held a sizable stake in the brand (his estimated profit after taxes was around $100 million). Other 50 Cent projects include the G-Unit record label, a clothing line, a sneaker line through the Reebok brand, ring tones, and video games -- to name only a few.

This post is part of our Hottest Products of 2007 feature. Also check out our other Hottest Products of 2007 posts and let us know which product you think is the greatest thing since sliced bread.

When I first discovered the products of glacéau, maker of Vitaminwater, it was the summer of 1998, and there were four flavors of Fruitwater. The lemon ginger flavor was strange, at best, but I could drink an entire cold bottle of watermelon water after a run. Cranberry mint was curious and refreshing. They were lovely, with the tiniest hint of color and no sugar: what I'd always wished for in a bottled water.

Cut to 2007, when, in order to cater to the mass market's taste for sweets and the craze for vitamin-enhanced beverages, glacéau's Vitaminwater has been stocked with sugar and color. This summer, Vitaminwater was being guzzled by all my friends' children at family barbecues and birthday parties. The day-glo orange and green look oh-so much like the Kool-Aid and Gatorade we drank in decades past, and I have to say they're just as sweet. The watermelon water I loved has been replaced by four new flavors, all "naturally" sweetened; peach, raspberry, grape, lime. Sounds like Lifesavers! The kooky Whitestone, Queens management has sold (out?) to Coca Cola (NYSE: KO) for $4.2 billion. 50 Cent, famously, had a big payout thanks to his prescient investment in the stuff (he wanted to put his money in something healthier than his rap rivals' liquor ventures). For Coke, of course, it was just the latest salvo in the next generation of the cola wars (now it's enhanced waters and super-premium juices, but it's still the same ol' Coke vs. Pepsi).

Coca Cola (NYSE: KO) will pay New England Patriots heartthrob Tom Brady $3 million to $5 million to endorse Smartwater, Vitamin Water's sister brand that was acquired as part of the deal for Glaceau (which made 50 Cent a very rich man indeed...).

The Glaceau acquisition was part of Coke's strategy to pursue revenue growth as sales of carbonated beverage decline. According to the USA Today:

Brady, who dates a supermodel and makes gossip-column headlines as well as sports news, joins Jennifer Aniston in pitching the distilled water with added electrolytes. Replacement of electrolytes depleted in workouts can ease muscle fatigue. Smartwater is the top enhanced water with yoga enthusiasts, and Aniston has lent the brand a sexy, healthy lifestyle image. Brady adds some muscle to the healthy image.

You almost have to wonder about whether these products are a rip-off. If the company can pay Jennifer Aniston and Tom Brady millions of dollars to sell water, the mark-up has got to be pretty high.

But Tom Brady is as big as it gets right now, and this a pretty big coup for Glaceau.

While the sweetest of soft drinks may now be off limits in high-school vending machines, some hip new options may soon be available to the nation's students.

In May 2006, the beverage industry voluntarily agreed to stop selling full-calorie sodas in schools. The agreement stated that companies could sell milk, water, diet sodas, sports drinks, and unsweetened and low-calorie juices.

The industry has now expanded this list to include additional beverages meeting the criterion of fewer than 100 calories per 12 ounces. Certain flavored iced teas and vitamin-flavored waters fit the bill. Most varieties of Glaceau VitaminWater, a recent acquisition of Coca-Cola (NYSE: KO), have 75 calories or less. The same is true for the various flavors of SoBe LifeWater, owned by PepsiCo (NYSE: PEP).

A piece in today's Wall Street Journal -- Should you sip your vitamins through a straw? -- raises an interesting point: There is little in the way of research to suggest that products like Coca Cola's (NYSE: KO) VitaminWater are a good way to absorb vitamins. But that hasn't stopped the market from exploding: "The explosion of nutrient-laced drinks reflects consumers' desire for more healthful choices than soda. These drinks' combined U.S. volume more than tripled from 2001 to 2006, according to the Beverage Marketing Corp., compared with 5% growth for the U.S. beverage industry over all."

Critics charge that some of these premium "healthy" beverages have a lot of calories (albeit fewer than soda), are expensive, and lack compelling evidence to back up suggestions that the products are actually that good for you.

But I don't think the average VitaminWater consumer is overly concerned with the assimilation of the vitamins. We drink VitaminWater because it tastes excellent, is more nutritious than soda, and is less artificial. I would guess that very few drinkers of these beverages are drinking them in lieu of vitamins: Most kids don't take a daily multivitamin like they should, so VitaminWater is better than nothing, right?

In any case, I don't think that VitaminWater's nutritional possibilities are a huge part of its appeal, and I don't think Coke shareholders should worry about the demise of that brand should studies emerge suggesting the product has little in the way of tangible health benefits.

Coca Cola's (NYSE: KO) purchase of Glaceau, makers of Vitaminwater, earned hip hop star 50 Cent 800 million times as much money as his name suggests he is worth.

It has been reported that 50 Cent will star in a commercial for the drinks, which will feature him conducting a symphony orchestra in a rendition of his hit "In da club."

I can't find information on how much 50 paid for his stake in the company, but it's safe to assume that he a made a massive return on investment here. He's not the first celebrity to make a fortune as an early investor in a company. Adult contemporary star Kenny G was one the original ten Starbucks investors.

But frankly, it's much more heartwarming to see 50 Cent making money, mainly because he's less annoying than Kenny G, although that's not much of an accomplishment.

In another indication that healthier premium beverages are supplanting soft drinks, Coca Cola (NYSE: KO) has agreed to pay Glaceau, the maker of Vitaminwater, for $4.2 billion in cash and stock.

While it's not exactly a cheap purchase, I think it makes a lot of sense for Coke. Vitaminwater has had huge growth of late, and that looks likely to continue. With sales of soft drinks flat or even declining, it needs something to drive revenue growth.

This should also be seen as good news for Berkshire Hathaway (NYSE: BRK.A), a major Coke shareholder. Chairman Warren Buffett is regularly seen drinking Cherry Coke, especially at annual meetings but, as he gets older and investors worry about who will succeed him, a switch to a more healthful, vitamin-filled, lower-calorie beverage could extend his tenure at the helm of Berkshire.

Shares of Coke were up on news of the deal, and the price tag could be used to assign a value to other next-generation beverage companies. It makes Hansen Natural (NASDAQ: HANS) look interesting, with its market cap of around $3.6 billion.

More Vitamin Water news

Beth Gaston Moon: High school vending machines getting more eclectic
Zac Bissonnette: PepsiCo plans a lower-calorie Gatorade
Jonathan Berr: Coke, Pepsi thirst for profits from bottled water
Zac Bissonnette: Experts doubt Snapple will satisfy Coke
Zac Bissonnette: Will Coca-Cola gulp down Snapple?
Joseph Lazzaro: Coke's catching up in the health drink segment
Zac Bissonnette: Coke wants vitamin water
Zac Bissonnette: Coke Zero is no zero, it's a big hit
Sarah Gilbert: Fuze acquisition pits Coke v. Pepsi in ritzy juice war

With soft drink sales stagnating as more health-conscious consumers switch to lower-calorie premium beverages, Coca-Cola (NYSE: KO) is looking for a piece of the action. After the February acquisition of Fuze, Coke is looking at privately-held beverage companies including Glaceau [subscription required], the maker of vitamin water and Arizona Teas, the best iced tea company out there.

While Coke has been delivering slow and reliable growth, Glaceau's has been extremely rapid of late, doubling its cases sold in 2006. Glaceau's price-tag of $2 billion might seem expensive, but it's the number one brand in a category that is expected to account for 22% of North American beverage sales over the next five years, making it second in volume only to bottled water.

With Hansen Natural (NASDAQ: HANS) and Jones Soda (NASDAQ: JSDA) valued at $3.5 billion and $681 million respectively, $2 billion for Vitamin Water might not be so bad.

More Vitamin Water news

Beth Gaston Moon: High school vending machines getting more eclectic
Zac Bissonnette: PepsiCo plans a lower-calorie Gatorade
Jonathan Berr: Coke, Pepsi thirst for profits from bottled water
Zac Bissonnette: Experts doubt Snapple will satisfy Coke
Zac Bissonnette: Will Coca-Cola gulp down Snapple?
Joseph Lazzaro: Coke's catching up in the health drink segment
Zac Bissonnette: Coke swallows Vitaminwater
Zac Bissonnette: Coke Zero is no zero, it's a big hit
Sarah Gilbert: Fuze acquisition pits Coke v. Pepsi in ritzy juice war