BevNET Magazine March/April 2024

The First Drop

What’s the Price of Sugar?

So, again we’ve found a situation where the big brands plead ignorance to something awful happening in the world. Last issue, it was a hate-mongering UFC fighter working for Monster. This issue, it’s something much worse: big soda companies’ use of sugar sourced from a region of India that is rife with worker abuses.

According to a recent story in the New York Times, big soda companies Coca-Cola Co. and PepsiCo, among others, source sugar from the Maharashtra state in India –one whose mills rely on child labor, worker indebtedness and a set of labor requirements so harsh that many women working to cut sugarcane are undergoing unnecessary mastectomies to avoid missing work.

In many cases cited by the Times, working in concert with journalism organization the Fuller Project, women were forced into marriage as soon as they began menstruating, both in order to reduce the number of children their parents needed to feed, and to create a paired labor arrangement. Husbands and wives working the fields together are more efficient and more likely to be hired, according to the Times, with the husbands hacking down sugarcane and their wives ripping razor-sharp leaves off the canes, then stacking, bundling, and carrying them to waiting trucks. The workers can’t leave – they’ve already been advanced on their pay ahead of their arrival, so any missed days keep them mired in debt. Hence menstruation or pregnancy can lead to them owing even more to their employers, furthering the cycle of debt.

Both Coke and Pepsi - which have pledged to remove forced labor from their supply chains – acknowledge that some of their sugar comes from the region, but they blame the contractors who purchase it for them. Similarly, the mill owners say they don’t employ child labor or forced labor – they blame the contractors they use to pull together and who manage their workforce. The local government has investigated but little change has taken place.

By Jeffrey Klineman

careful look at the labor practices there – right now it’s hard to give these companies the benefit of the doubt.

I’m obviously no expert on international labor conditions and I understand that the region is likely leaning into its biggest potential financial resource when it looks the other way on the plight of its workers. But it’s clearthat the brands that benefit from these arrangements have a duty to look at more than maintaining their margins in their dealings with their suppliers in Maharashtra State.

As we know with innovation, it’s hard for big brands to move quickly; global supply chains are hard to reset. But it’s still hard to excuse Coke, which, according to the Times, knew about labor abuses in Maharashtra as long ago as 2019, when auditors hired by the company offered documentation about child labor and forced labor. The Pepsi team said it wasn’t aware of what was happening. Mondelez, which also buys from that region, said it would investigate. Maybe Coke could share its audit.

Meanwhile, both Coke and PepsiCo are continuing to grow their Maharashtra operations. We hope that their financial commitment to the region is buttressed by a hard,

In the meantime, there are a great many entrepreneurial brands that are actually growing because of the attention they’re paying to supply chain issues, both via Fair Trade certification and a core commitment to clean, abuse-free sourcing. Brands like Sambazon, Guayaki, Just Ice Tea, and many more aren’t just making money while sourcing abroad, they’re activists – and they continue to grow.

The Times report is double jeopardy for Big Soda because it puts both the abuse of workers, and the use of the sugar that is the core ingredient of their products front and center. We’re in a generational economic shift, to the conscious consumers of Generation Z, while health concerns around excessive sugar consumption continue to accelerate.

It’s an example not of the moral quality of the issue, but of the speed at which opinions harden against the bottom line, that I’m going to bring up the internet backlash against Bud Light last year and its financial impact on that brand. Think about it this way: fortunes can be lost in weeks. Even if you can’t understand it as a moral imperative, you can certainly think of it as a financial one.

Coke and Pepsi might not be good at innovating quickly, but they’d better learn to clean up their mess in Maharashtra with all due speed.

By Barry Nathanson

Special Days

In our lives there are a few truly special days. On March 5th, my second granddaughter came into our lives. My son David and his wife Michelle gave us the best gift one can ever ask for: Andie Nathanson. For those who are at that stage of life, having grandchildren tops anything. Being now twice blessed in this way is amazing.

Andie came along at just the right time. My fear was that she would arrive at the start of Expo West. If that had been the case, I would have had to drop the event, and New Hope would have been out of luck: no Barry, no Expo.

Luckily, the timing worked out: I arrived in Anaheim energized and ready to take on the world. Andie quickly paid dividends, her arrival my opening conversational salvo throughout my three days on the floor. It’s always great to share such good news.

Then I jumped into the world of beverages. Expo West is always the highlight of the year for trade shows. This year did not disappoint. On the first day in North Hall, it was nearly overwhelming, crowded, trash bins were overflowing, and you needed a

machete to traverse the aisles, but the latest and greatest were on full display.

Luckily thingss went smoothly and we all got to see why this show is so dynamic. It’s great theatre, and it makes a terrific stage to introduce the brands that will grace our shelves in 2024 and beyond.

Beverages are back! Over the past few years, Covid diminished the volume of new launches, SKUs and packaging innovations. There was hesitancy to fully commit. That is now the past. Even with our strong team of BevNET attendees, we had a hard time covering all there was to offer. I was in awe of how many marketers grabbed me to show their wares. It’s always great to see old friends, to catch up, but they all had a story to tell of their launches and initiatives. We actually conducted business.

Expo West is a bellwether of the beverage marketplace. I was delighted to see such activity. Yet, it still pales in comparison to the launch of Andie. She’s got great branding for sure! Life is good.

By Gerry Khermouch

Meaning... What?

“If you’ve got it, flaunt it,” goes the old expression. Hey, that worked for Madonna! But maybe not so much in beverages, where the path to success often seems to point to downplaying your most distinctive attributes rather than playing them up. Sounds crazy, I realize. That’s likely why it took me so many years to realize it myself. But please bear with me here.

In a category overflowing with me-too items, this seems completely counterintuitive. Surely, if you’ve got a meaningful differentiator, then shouldn’t you be banging the drum about it as loudly as you can? Well, yes, up to a point. But that point may come a lot earlier than you expect.

In the face of skeptical retailers and distributors, it certainly helps to be able to make a case that your brand represents a breakthrough, one that can cut through the clutter and perhaps disrupt a major category or brand, with all the sales upside that implies. Among the early adopters your premium brand is likely to cultivate at first, heralding your unique ingredient (acai! Aronia berry! ube!), nutrient category (probiotics! prebiotics! antibiotics!) or process (coldbrewed! dog-chewed!) can generate that crucial first try.

After all, these are the label readers who desperately want to be first in their social circle to bring news of life-changing developments like – I don’t know, yaupon tea in a bottle?

That’s in the earlier stages, for sure. What seems to happen, though, is that as a brand broadens enough to start to cultivate more of a mass audience – that large “total addressable market” that investors crave these days – those kinds of messages start to fall on deaf ears. As the brand migrates from the natural and specialty channel to conventional grocers and mass merchandisers and maybe even c-stores and dollar stores, it starts to reach shoppers who aren’t into label-reading so much. Maybe not into reading much of anything, for that matter. Suddenly, your brand’s unique properties can start to become confusing, irrelevant or even intimidating.

That might be the point at which you need to dial back the messaging a bit. It certainly doesn’t mean you abandon your recipe, but the messaging might need to move more into the background in favor of benefits that resonate with Walmart, Kroger and Terrible Herbst shoppers. It’s a tough call, because you’re talking less about the very concepts that changed your own life and got you excited about launching the brand in the first place.

Hey, they’re still there on the back of the label, on the website, and in the discussions your sampling team can have with passersby in Aisle 8. Just not on the front panel and bus-shelter ads. Sometimes, that’s the key to getting to the next growth plateau.

What evidence do I have of this? It’s anecdotal, for sure. Come on, I’m just a journalist! (Our low bar is reflected in jokes like this one: What’s the definition of a trend? Two facts and a deadline.) Still, anecdotally speaking, a brand like Bai never seemed to truly ignite until it stopped talking so much about the coffee fruit at its heart, and the benefit to growers of offering an ancillary income stream to the

actual coffee beans, and just started describing itself as an antioxidant infusion. (A secondary motive was to dispel any impression it was a highly caffeinated drink, though it did contain some caffeine.) Consumers might not have known too much about antioxidants either, but they knew enough to know they were good, and that messaging gave them psychological cover to drink a delicious beverage that was very low on calories and somehow good for them.

In doing so, Bai was merely reprising the marketing of Vitaminwater, whose very name conferred its benefit, granting users license to drink a highly sweetened beverage that, by the letter of the law, really shouldn’t have been allowed to go out labeled as a water. This hunch seemed to be confirmed by one incident long after Vitaminwater’s acquisition by Coca-Cola, when Coke’s marketers undertook a flavor tweak that didn’t go over well with loyal users. On social media, aggrieved drinkers posted complaints along the lines of, “Look, I know that Vitaminwater doesn’t really have vitamins. I just drink it because it tastes good. And now it doesn’t taste good anymore.”

At the recent Natural Products Expo West, there were abundant signs of beverage marketers taking a step back from what had been core parts of their identity for the greater benefit of bringing more shoppers into the franchise.

Take the Good Sport sports drink brand, whose unique selling proposition was that it harnessed the nutritional content of milk in the service of offering an ideal hydrator. These days, you’re hard pressed to spot any reference to the ultrafiltered, deproteinized milk anywhere but in the fine print of the nutrition panel, even though that’s very much the secret to its efficacy. Too complicated and confusing. Naturally sourced with three times the electrolytes, is what you’re told. Since the brand is partly funded by a dairy company, this must have been a hard decision to make. But if it unlocks a new bout of growth for an excellent, natural product, it will be worth it.

Or take Guru, in the market two decades now as a rare energy brand boasting organic credentials. A recent rebrand downplays the better-for-you and organic qualities of the brand in favor of putting a more overt emphasis on its robust energy delivery and flavor. Flow Beverage similarly has concluded recently that, while the sustainability cred derived from its Tetra Pak cartons still is core to its identity, it’s better off flagging that it’s mineral-infused water that tastes good. Let me stress that none of these brands has abandoned its core concepts. It’s just that the messaging hierarchy has changed.

Of course, there are other, sometimes less savory, reasons for downplaying a key part of your identity. One is the area of claims, explicit or implied. As your brand gets more established, the target on your back with regulators and, more importantly, class action lawyers gets larger and brighter. Once your brand’s superiority has been seeded with those all-important retailers, distributors and early adopters, it may be time to start dialing them down in fa-

vor of a more generalized positioning that marketers love to describe as “lifestyle.”

I saw that pattern at Essentia, which evolved to a generalized, and in some ways meaningless, “overachieving H2O.” Did that hurt the brand? Not judging by a test I conducted that I’ve written about here before.

When I came into a wad of free-bottle coupons, I dispensed them to anyone I saw cradling a bottle of Essentia, whether in a Whole Foods café or the New York subway. You seem to really like this brand, I would say as I pressed a coupon into their hand. How come? Several dozen coupons in, I’d yet to encounter a consumer who said anything about rapid hydration or even alkalinity. Tastes good, some said. I know it’s good for me, others said. It soon exited to Nestlé for a nice premium.

Sometimes that evolution is forced. Years ago Penta Water got its hand slapped by the government for the smoke it was blowing about its special molecules, or whatever. (Pre-Internet, Penta actually hung CDs from the necks of bottles so shoppers could learn about its unique structure when they got home.) So Penta dropped that messaging, to no discernible effect. Its better-for-you identity had already been seeded.

And what if your proprietary functional ingredient has been demonstrated in court not to exist? That’s what hap -

pened with Bang Energy under legal assault by Monster Beverage over its core “super creatine” ingredient that long was emblazoned on every can on the way to becoming a billion-dollar brand. No such thing, Monster’s lawyers proved. Totally fictitious.

So, the brand duly scrubbed the phrase off its cans (and after some further judicial prodding, off its website and other marketing vehicles). But by then the message about Bang’s special efficacy had long since sunk in, and in any case most buyers no longer were gym rats obsessed with muscle-building. So – whatever. The change didn’t seem to meaningfully weaken the brand.

True, it was spiraling downward in the face of its various legal, distribution and other problems, but its new owner, Monster, shows no signs of doubting that Bang’s prominence can be restored.

In some ways, this is all a disappointing aspect of beverage brand-building. One would prefer not to have to make these compromises. Why hide your light under a bushel? But there comes a growth stage where they may be necessary to get more consumers to pick up your life-altering product.

Longtime beverage-watcher Gerry Khermouch is executive editor of Beverage Business Insights, a twice-weekly e-newsletter covering the nonalcoholic beverage sector.

BlueTriton Grows Water Offerings with Hawaii Volcanic Distro Deal

Premium water maker Hawaii Volcanic has inked a distribution deal with top U.S. bottled water manufacturer BlueTriton to service the Hawaii-based brand in retail, home and office accounts through its ReadyRefresh Direct Delivery platform. The deal was brokered via L.A. Libations, which holds an equity stake in the brand.

According to Hawaii Volcanic CEO Jason Donovan, the brand provides BlueTriton with its first offering in Hawaii, while adding an additional premium water brand to its portfolio in the Western U.S. market, complementing its Arrowhead brand. Donovan noted that Hawaii Volcanic’s focus on sustainability was also key to securing the partnership, as the brand sources from a renewable water source and is packaged in recyclable glass.

“They love that we’re very aligned on mission first and we will be filling in some whitespace for them,” Donovan said. “I think we’re adding to their portfolio being in the super premium category and being in glass.”

“BlueTriton’s ReadyRefresh Direct Delivery business is excited about our new

DSD partnership in California with Hawaii Volcanic Water,” said Joe Wiggetman, Chief Customer Officer of BlueTriton Brands, in a statement. “We look forward to satisfying our consumers with another outstanding healthy hydration option.”

In addition to DSD services, BlueTriton’s ReadyRefresh network has access to over 200,000 home and office accounts in California alone, L.A. Libations CEO Danny Stepper told BevNET. The partnership is underway in California with the possibility of expanding to Arizona, Texas and Florida in the near future.

BlueTriton was founded in 2021 following the acquisition of ReadyRefresh and the Nestle Waters North America brand portfolio by an investment group.

“What I’ve learned from doing deals with strategics is that when it’s natural, and if it just feels like it fits on both sides, that’s when things usually go good,” Stepper said. “It’s when you’re trying to do something unnatural and forcing it that they tend not to go well. So, I’m very bullish that this is going to be really great for both organizations.”

Founded in 2012, Hawaii Volcanic had

primarily been distributed in the Aloha state until last year, when it closed a $10 million funding round that included investments from L.A. Libations and surfing icon Bethany Hamilton, among others. The brand has since been focused on building distribution along the West Coast, hitting its goal of 8,000 doors by the end of 2023 and adding retailers such as Walmart, Erewhon, Albertsons, Safeway, Vons, Pavilions and around 120 CVS stores in California.

While L.A. Libations has been able to build Hawaii Volcanic’s presence in a number of mainstream retail chains, Stepper said the key unlock BlueTriton will bring to the brand is actually in its ability to add more small chains and independent accounts to its footprint.

Stepper also noted that the deal offers future opportunities for L.A. Libations to work with BlueTriton for distribution agreements on additional brands, noting that ReadyRefresh also services non-water products like ROAR Organic.

“This is super exciting for Hawaii Volcanic, but it also opens the door for L.A. Libations to do more with them,” he said.

Westrock, Select Milk Partner To Produce Milk-Based Coffee RTDs

Westrock Coffee is expanding its already ambitious strategic vision for ready-to-drink, announcing in February an agreement with Texas-based Select Milk Producers to create a joint venture for dairy or plant-based milk and coffee beverages.

The collaboration was affirmed in a letter of intent between the two companies, which detailed plans for the construction and operation of extended shelf-life and aseptic multi-serve bottle lines inside a new manufacturing facility Select Milk intends to build in Littlefield, Texas, set to go online in Q1 2026.

Dallas-based Select Milk is a major milk processor in the Southwest and Midwest, and is the owner or joint venture partner in eight plants. The company was an original partner with The Coca-Cola Company in fluid dairy brand Fairlife before being bought out in 2020.

The new plant will produce drinks made with coffee extracts and concentrates supplied from Westrock’s 524,000 square foot, $300 million facility in Conway, Arkansas, the centerpiece of the family-run company’s plan to dominate the liquid format. The Conway site is set to go online this spring, but is already getting an upgrade.

“As we near completion of the Extract and RTD facility in Conway, Arkansas, we made the decision to expand our ex-

tract and concentration capabilities so that as we add additional lines in the future, we can do so without having to impact the existing operations of the facility,” said Westrock Coffee’s CEO and Co-Founder, Scott Ford, in a statement.

“In addition, we have expanded our multi-serve bottle capacities by adding cold-chain capability to our facility. Together, these additions better position us to respond to existing customer demand for extended shelf life (“ESL”) and multi-serve bottles and ensure we can grow our capabilities in the future without disrupting operations.”

As detailed in the most recent edition of BevNET Magazine, Westrock has made deep investments in its RTD strategy that have dampened recent quarterly earnings, with management promising short-term pain will translate to long-term gains before the facility has even officially opened.

Westrock is funding both the Select Milk joint venture and the Conway expansion by issuing $72 million in convertible senior unsecured notes (bearing 5% annual interest) due 2029 in a private offering. The notes are convertible into shares of common stock in certain circumstances and during certain periods at a conversion price of $12.84 per share, subject to adjustment.

Celsius: Energy Co. Passes $1B In Full-Year Revenue For First Time

Celsius is showing no signs of stopping its upward trajectory as it reported nearly triple-digit gains in its Q4 2023 earnings in February.

The Boca Raton, Florida-based energy drink company posted revenue of $347.4 million, a 95% increase compared to Q4 2022. For the first time, Celsius topped the billion dollar mark with FY2023 revenue of $1.32 billion, up 102% versus the previous year.

The “stellar” performance to close out the year, CEO John Fieldly said, was backed by its strategic distribution partnership with PepsiCo, a focus on refrigerated placements and a “methodical approach” to international expansion.

“The energy drink category is now a three-team race,” Fieldly said in prepared remarks referring to Red Bull and Monster as the top two category leaders.

Celsius held about 9.3% of dollar share revenue with unit sales up 119%, according to Circana data for the last 52-week period ending December 31.

Company leadership was bullish on the opportunity in its Celsius Essentials line which launched late last year. The new amino acid laden, performance energy drink reported a record 49% ACV (All Commodities Volume) year-to-date on February 18.

Gross margin was about 48% in both the Q4 and full-year results and its nonGAAP adjusted EBITDA was up 316% to about $296 million for FY2023, compared to $71 million in the prior year.

Net income attributable to common stockholders was $39 million for Q4, compared to a -$28 million loss in the same quarter the previous year.

The energy brand touted its growing footprint in foodservice where 12.5% of its Pepsi distribution sales come from the channel. The company also has also been prioritizing its branded cooler program where it currently has over 10,000 refrigerated cases across the U.S. representing over 300% gain year-over-year.

With an eye towards increasing its placements and velocities in the convenience channel, cold placement has been a “big initiative” in order to drive impulse purchases, Fieldly said in the question-and-answer section. “We do

see uplift if you’re by the register and you’re cold. If it’s cold it’s sold.”

In ecommerce, Celsius announced it was the highest selling energy drink with 19.7% share of the category, edging out Monster Energy which clocked in at 19.6%.

It has also made gains in its Club channel sales. Club sales were $77.1 million in Q4, up 64% year-over-year.

One of the pillars of its continued growth revolves around its international distribution where last year it moved into two key markets. Utilizing its partnership with PepsiCo, the brand began distributing in Canada in mid-January and is “pleased” with sales in the country in the limited timeframe.

Celsius also announced Suntory Beverage & Food as its sales and distribution partner in the United Kingdom and Ireland.

In looking for the best partners to align with internationally, Fieldly noted that Suntory’s access to the gym community was “very attractive” but

Celsius needs to “build a loyal foundation” before it scales too quickly.

CFO Jarrod Langhans did caution that there will be some “costs and investments” in building awareness and production in both of these international markets.

Celsius already had a co-packer in Canada that it used as a backup for its U.S. business but in the UK, the company is “launching from zero,” Langhans said. “We won’t have the same scale and leverage advantages within manufacturing as we do in the US. But it’s not going to be a significant component of either our growth or our cost infrastructure this year.”

Despite launching the Essentials line and new flavors throughout the portfolio in 2023, Celsius continues to “monitor its SKUs” looking for areas where it can “cut its tail” on slower moving varieties, Fieldly said.

Celsius stock was up about 17%, trading at $79.40 per share at the time of publication.

Liquid Death Closes $67M Funding Round

As it looks to scale up to meet fast-rising demand for new innovations, Liquid Death has closed a $67 million funding round at a valuation of $1.4 billion.

The financing adds to the more than $200.6 million the betterfor-you beverage maker has raised since 2019, while the new valuation is double the $700 million valuation it touted following its Series D round closed in 2022.

This latest round features investments from several distributors, including the “No. 1 distributors in North Carolina, Oregon, Utah, and Washington,” among others.

According to Liquid Death founder and CEO Mike Cessario, having the distributors invested in the brand was an important step towards strengthening the brands relationship with its top DSD partners. While he declined to name any specific companies involved in the financing, he said that eight of the brand’s top 10 distributors are among the investors.

Cessario noted that having a “shared alignment” with its distributors was important for the business, particularly in an industry where DSD houses frequently invest heavily into building beverages from the ground up only to be left with a large vacancy when a brand exits to a strategic.

“We’re really making them feel like they truly are an extension of our company,” he said. “We want to bring them in and have them more involved in every way because it’s so critical to have a shared alignment with them.”

As well, he suggested that having distributors at the cap table also sends a confident message to other investors about the strength of Liquid Death, as distributors “really know what’s working” on shelf.

Beyond DSD partners, a new institutional investor – SuRo Capital – has joined the brand’s cap table alongside follow-on investments from existing partners Live Nation, Science, Inc., and Gray’s Creek Capital Partners. SuRo is a publicly traded investment firm.

Several celebrity investors also joined in the raise: actor Josh Brolin, NFL star DeAndre Hopkins, Chapelle’s Show co-creator Neal Brennan, comedian Jim Jeffries, and Derrick Green, vocalist of the metal band Sepultura, all participated.

The company reported that it brought in $263 million in retail sales last year, while it expanded its footprint to over 113,000 retail stores across the U.S. and the U.K. That growth has been bolstered by the expansion of its product portfolio beyond the water and sparkling water categories, launching last year a canned iced tea line and most recently adding a powdered hydration line called Death Dust.

Much of the new funding will now go towards supporting continued innovation and scaling. Last year marked a complete transition to total U.S. manufacturing for Liquid Death across all product lines, and Cessario said the company is now seeking to add new co-packing partners this year to both meet demand and increase efficiency in order to improve margins.

While the brand’s flagship still water in a can remains its top selling individual SKU, Cessario said that Liquid Death’s sparkling water and tea lines combined are now more than half of the business, and this year will see additional flavor extensions on both lines (several of which were showcased at Natural Products Expo West in Anaheim, California).

With Death Dust, Liquid Death is now extending its portfolio beyond RTD. Cessario noted that powdered hydration products are the smallest category the brand has tackled to date, but he believes the brand is primed to stand out in a set that has already seen significant growth and disruption in recent years through the expansion of brands like Liquid I.V. and PRIME. However, he cautioned that the company views powders as an experimental space and isn’t anticipating the line to be as large out the gate as its past line extensions.

The launch is already providing some lessons for the company. Liquid Death has now heavily discounted its first batch of Death Dust products by 40%, admitting it did not make the flavors strong enough. However, the flexibility of powders has allowed the company to quickly recover, Cessario suggested, and an improved version will be on shelves within 60 days.

“We’re never afraid to admit to people that we can continue to get this better,” he said. “I think people really appreciate that, because so many companies don’t ever admit it, like ‘Oh, we can do no wrong, everything we do is perfect.’ No, we’re human, like anyone else we’re learning, and we care.”

The new financing follows rumors last summer that Liquid Death was exploring a potential IPO and had secured Goldman Sachs to help lead the process. Although Cessario had previously said the brand has considered going public as one option, there’s been little update on whether an IPO has made progress since July.

Cessario told BevNET that the company wants to keep its options open while it focuses on getting the business to a position where it could confidently issue an IPO should they ultimately choose to.

“We’re not hyper-focused that this is one thing we’re going to do, we’re just focused on continuing to grow,” he said. “We just want to make sure that we’re in a position where we have options, so if we do decide that an IPO is right, that we have all the things in order that we would need to have that be an option and be successful. And likewise, with any other sort of partnership or option.”

Jones Soda Co Crosses Over into BevAlc with New Spiked Sodas

Seattle-based craft soda producer Jones Soda Co. is crossing over into BevAlc with the launch of Spiked Jones Hard Craft Soda, announced in March.

The company, which also expanded into foodservice and deeper into cannabis this year, is now leveraging its unconventional soda brand to move into the ready-to-drink category with the help of another Washington-based beverage company. Rainmaker, producer of Locust Cider, will partner with Jones on national distribution, a collaboration focused on “operational efficiencies, incremental sales and profits for key retailers,” read a statement.

Spiked Jones will launch with 19.2 oz single cans (6.9% ABV) and a mixed 12-pack of 12 oz cans (8.4% ABV). Known for its indulgent flavors, the initial SKUs include M.F. Grape, Orange & Cream, Strawberry Lime, Berry Lemonade, Cola & Lime, and Green Apple. Cans will feature user submitted photos, as popular with other Jones Soda products.

The product is not Jones Soda’s first foray into BevAlc, in 2018 it launched Spiked Jones, a hard cider-soda produced in partnership with Jeff Bland, the cider maker for Spire Mountain Ciders at Fish Brewing in Olympia, Washington. But that was before other soda and non-alc beverage producers began a rapid push into ready-to-drink products, also aiming to open up new revenue streams using familiar brand names.

Hard soda sales were up 50.6% in the two weeks ending February 2, with brands like Hard MNT Dew dominating in share, according to NielsenIQ data for US x AOC (extended All Outlet Combined) channels.

The brand has secured a major retail grocery partner for initial distribution in Q2 2024, to be announced at a future date, according to a statement. Jones Soda was founded in 1986 and has since become a retail mainstay available in chains such as Walmart, Kroger, Albertsons, Circle K and Kum & Go, among others. In February, the company created a new internal foodservice division to focus on growing the brand in on-premise accounts including bars, restaurants and quick-service locations across the country.

The partnership with Rainmaker compliments and broadens Jones’ flavors and formulation, retail grocery and convenience relationships, as well as its new footprint in food service, according to a release. The launch is being supported by in-store sampling and activation at music festivals.

The expansion arrives on the heels of its move into the Delta-9 hemp category via its cannabis Mary Jones beverage line, allowing it to grow its THC-infused products in mainstream retail accounts.

Last year, David Knight became president and CEO of the company, taking over the role from outgoing executive Mark Murray, who had been credited with helping to turn around the brand following years of declining sales.

In its most recent Q3 2023 earnings report in November, Jones reported revenue for the quarter fell to $4.5 million from $4.8 million the prior year. However, gross profit as a percentage of revenue increased 600 basis points to 32.9% in the quarter.

Kroger/Albertsons vs The FTC: What Happens Next?

The next challenge for the proposed $24.6 billion merger between Kroger and Albertsons is coming from the federal government.

The Federal Trade Commission (FTC) announced on Feb. 26 it has filed a lawsuit to block the merger in the U.S. District Court for the District of Oregon, alongside a bipartisan group of nine attorneys general from Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming.

According to the FTC, the commission investigating the merger’s anti-competitiveness unanimously voted (3-0) in favor of filing a temporary restraining order and preliminary injunction against the deal, which the agency argues eliminates competition in the grocery industry, and will lead to higher prices for consumers and harm the tens of thousands of workers employed by both corporations.

Even the supermarket’s executives have admitted to the anti-competitiveness of the deal, the FTC claims, highlighting in a release that one executive reacted to the deal by claiming: “you are basically creating a monopoly in grocery with the merger.”

The FTC emphasized that if the deal were completed, the combined companies would operate over 5,000 stores, 4,000 retail pharmacies and employ 700,000 workers across 48 states.

“This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years,” said Henry Liu, Director of the FTC’s Bureau of Competition, in a press release. “Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today.”

But Albertsons reinforced its stance in a statement that the merger will “expand competition, lower prices, increase associate wages, protect union jobs, and enhance customers’ shopping experience;” Kroger echoed similar claims.

The FTC’s complaint holds that the two companies are direct competitors, but whether that matters in a grocery landscape that now sees non-direct competitors hold a significant share of the market remains a question likely to be debated by the court.

Both Kroger and Albertsons reemphasized their belief that rejecting the deal would harm their ability to compete against multi-channel retailers like Amazon, Walmart and Costco. The companies claim that by merging, the combined entity could offset these aforementioned group’s “growing dominance of the grocery industry” by ensuring local supermarkets can better compete.

February’s filing reveals that in addition to believing the merger reduces competition, FTC is challenging whether the previously announced divestiture plan with C&S Wholesale Grocers has the potential to be successful and allow the newly divested businesses to hold their own against their former parent organization.

The companies have said they plan to divest 400 stores, and can sell up to 650, to the wholesale and distribution compa-

ny. The FTC claims the plan itself is “inadequate” and features a “hodgepodge of unconnected stores, banners, brands, and other assets that Kroger’s antitrust lawyers have cobbled together.”

C&S’s current share of the grocery market also remains up for debate. The FTC claims the Piggly Wiggly and Grand Union banner operator runs only 23 supermarkets, and a single retail pharmacy. Media reports have placed C&S’s total retail footprint at 160 locations. Either way, federal regulators believe the proposed divestiture does not create a “standalone business.”

If nothing else, the FTC’s suit ensures that any potential timeline for completing the merger will be stretched.

“This is a first step in order to slow things down,” explained Brian Albrecht, chief economist at the International Center for Law & Economics. “[This deal has] already been slowed down a bunch, but [now it is] the court saying they have to slow down.”

Albrecht believes the dispute between the regulator and the retailers must be over a significant number of markets. While there is always a chance that once divested, stores could fail under new ownership – as was the case when Albertsons divested stores to Haggen to appease regulators in its 2014 merger with Safeway – Albrecht, doesn’t believe that is a likely outcome.

He highlighted that it has become commonplace in recent years for grocers to create efficiencies by leaning heavily into vertical integration. Considering C&S specializes in wholesale distribution, he believes those existing operations could give newly divested stores a solid foundation for success.

Walmart has notably grown to become a leader in grocery since opening its first supercenter store in 1988, which saw it sell groceries for the first time. That same year was also the first, and last time, a supermarket merger has been challenged in court with American Stores and Albertsons’s acquisition of Lucky Stores. That means the last precedent set on competition in the grocery space is nearly 40 years old and came before many of today’s top players had entered the game.

There has been a lot more change to the landscape since then as well. Big box stores, discount chains and even dollar stores have also become grocery shopping venues, shifting how and where consumers buy food. Online grocery shopping has also evolved, albeit in more recent years, to become an important part of the food-buying landscape.

The changes to the market, including the landscape for grocery and the higher prices consumers have faced in recent years, will remain a central feature to both sides’ defense.

Both Kroger and Albertsons emphasized that they are willing to go to court for the deal. Given the current FTC’s track record, the federal regulator is also expected to put up a fight. That means the merger’s close date could be pushed out well beyond the anticipated August 17 date executives set earlier this year.

Meati: New CEO to Prioritize ‘Right Sizing’ Workforce Amidst New Round of Layoffs

Just two weeks into his tenure as CFO at Meati, Phil Graves received a promotion.

The mycelium root-based protein company in mid-February elevated Graves, a former Patagonia exec, to CEO, following the departure of president/COO Scott Tassani.

“This was a joint decision with Phil, the Board and [founder] Tyler [Huggins] to leverage Phil’s success in scaling mission-driven organizations,” said a spokesperson for Meati. “Phil brings deep expertise in financial management, strategic planning, and operational optimization, and his passion and skill for driving profitable growth is exactly what Meati needs now.”

Graves previously helped scale businesses including Patagonia, Wild Idea Buffalo, and Bass Pro Shops/Cabela’s. He most recently served as CEO of Wild Idea Buffalo and has expertise in driving profitable growth, financial management, strategic planning, and operational optimization.

While Graves is getting promoted, Meati is making cuts elsewhere. The company announced it is trimming 13% of its employees as Graves prioritizes “right sizing” the company’s workforce as part of its push toward profitability. The February layoffs are the only expected personnel changes currently, the spokesperson noted.

The news comes less than six months after the Boulder, Colo.-based company raised $50 million to give itself an “economic cushion” before proceeding to terminate 10% of its employees; the layoffs impacted 20% of the company, or 60 roles, but 30 were offered new positions within the business.

At the time, the company also decided to close its pilot scale production plant. All of these efforts have been made to put the protein player on a path toward profitability, which it now believes is in view.

“Meati has a clear path to profitability that includes aiming to be EBITDA positive within the next 12 months,” said a spokesperson. “Phil is focused on helping drive Meati to nearterm profitability and responsible, sustainable growth as the company continues to disrupt the food industry by bringing MushroomRoot, a revolutionary, new protein to market.”

BFG Continues ‘Patient’ Approach With Fund III Launch Organic Chocolatier Alter Eco Announces Acquisition

Keeping with its “every five years” timeline, better-for-you CPG investment firm Boulder Food Group (BFG) Partners, which counts brands like Olipop and Mid-Day Squares in its portfolio, is launching its third fund, targeting a $125 million pot.

The fund has already raised about 70% of its goal (about $87 million), and will center on seed- to series B-stage companies with typical check sizes of between $3 million and $5 million, said managing partner Dayton Miller.

BFG operates at its best when it can be one of the first institutional investors into a business in the early stage where “there’s a lot of action that happens,” Miller added. BFG’s portfolio strategy is centered around a rough schedule of five years to invest the fund’s pool of capital and another five years of possible follow-on investments.

The firm has incrementally increased its fund size: its $54 million Fund I launched in 2014, followed by $108 million in its 2019 Fund II.

Founded by former Bear Naked COO Tom Spier, the firm’s strategy has been “very patient and very methodical” in its placement of capital, Miller said. “Hopefully, we’re not too influenced by the winds of any given day.”

Pulling from their collective experience leading CPG companies, Spier and Miller – former CEO of Function beverages – “have a real appreciation for how hard it is” for founders and “empathy” for brands.

After sticking to consumables in Fund I, BFG took a step into personal care products in Fund II, where it saw a lot of deal flow happening. The firm wanted to explore the synergy between natural channel consumers of food and beverage brands and certain sectors of personal care products. With successful exits from hair care company Curlsmith to Helen of Troy and skincare maker ZitSticka to Heyday, Miller said BFG feels it has “earned the right” to continue to invest in the sector.

Yet, the investment group is still heavily focused on environmentally friendly and better-for-you food and beverage products.

In the last fund, BFG invested in rising CPG brands like Graza, Mid-Day Squares and Oats Overnight. The investment group has also made notable investments in Caulipower, MALK, Barnana, Bobo’s and Olipop. BFG has successfully exited food and beverage investments from Chameleon Cold Brew, with its sale to Nestlé in 2017 (later sold to SYSTM Foods) and, in 2020, Sovos Brands’ acquisition of Birch Benders (which changed hands again to Hometown Foodsthree years later).

BFG has taken a board seat in about half of the companies in its portfolio. Miller said BFG’s approach to consulting and advising its invested companies isn’t a “onesize-fits-all” approach, noting that “informal relationships” with founders can be “just as influential” as board seats.

Seeing as the investment climate has been particularly uncertain in the last year, BFG will be using a healthy amount of caution when preparing to deploy the new capital.

Where is the firm looking for its next big break?

BFG invested in Olipop in Fund II and is confident there will be more opportunity for products positioned around gut health. The subcategory continues to draw attention from consumers, producers and investors alike, especially, when paired with the intersection of GLP-1 drugs and CPG, Miller said.

Another possible opportunity for capital deployment could be brands that claim to improve brain health and provide mental clarity. Though BFG has not disclosed any investments for Fund III yet, it has been tracking the upward trend towards more food and beverage brands positioning around supporting cognitive health with low-sugar and fitness-oriented products.

Miller is especially interested in the link between “not only physical well being but also emotional well being and food.”

The strategy continues down the path laid by its previous interest and growth capital to primarily DTC brands MUD/WTR or Athletic Greens which have leaned into methods for reducing brain fog and glucose spikes.

By Trek One Capital

Alter Eco has shifted hands once again.

Texas-based investment firm Trek One Capital announced on Feb. 1 its acquisition of the Fair Trade, regenerative confections and pantry staples producer, having officially closed the deal in December 2023. Terms were not disclosed.

The transaction coincides with a leadership shift. Arnulfo Ventura, who joined the company in 2022 from chip brand Beanfields, officially departed from the CEO role in September and was succeeded by Keith Bearden, an advisor to Alter Eco’s previous owner NextWorld Evergreen (NWE), ahead of the closing. Bearden was tasked with leading Alter Eco through the acquisition and will remain on as the company’s CEO.

“I look forward to my partnership with Trek One along with their support and commitment to take the Alter Eco premium brand of products to the next level,” Bearden said in a statement.

Alter Eco was founded in 2004 as a mission-based company to support cacao farmers in South America. The company boasts regenerative agriculture, organic and Fair Trade claims across its product lines, which includes chocolate bars, truffles, granola and quinoa products.

In 2017, Alter Eco was acquired from its co-founders Edouard Rollet and Mathieu Senard by strategic equity firm NWE. Following its acquisition by NWE, Rollet and Senard told Nosh that while it wasn’t the highest bid the company received, the brand’s stakeholders felt the evergreen fund was the right fit for Alter Eco and its mission since it had less pressure to quickly produce returns.

Under its ownership, Alter Eco launched its charitable arm, The Alter Eco Foundation, in 2020 to support dynamic agroforestry in the Amazon and help farmers adopt regenerative practices. The strategic equity firms’ portfolio also included similar purpose-minded brands like Mighty Leaf Tea and acai producer Sambazon.

Trek One, a newly established investment vehicle, counts Tejas Environmental Solutions, a waste water and salt water disposal service provider, as its only

other portfolio company. According to operating partner and CFO Brian Fontana, the firm was created from a combination of family offices, existing businesses and investment vehicles.

Fontana was introduced to Alter Eco through an individual who was looking for a capital partner to help buy the business after NWE decided to divest its ownership stake. Trek One saw this acquisition as an opportunity to diversify its approach beyond the energy sector, but Fontana said it has no immediate plans to expand further into food and beverage.

Alter Eco has moved its headquarters from San Francisco to Houston, Texas. The company’s entire labor force worked remotely prior to the deal, and Fontana said all fulltime employees will remain with the company, but certain finance and accounting contractors have been eliminated due to redundancies with Trek One’s in-house capabilities. As it looks ahead, Fontana said the primary focus will be expanding Alter Eco’s distribution beyond its traditional roots in natural and specialty stores.

“The previous owners either didn’t want to focus on growth [or] they were happy with the consistency of the annual revenue and turnover that the company had,” said Fontana. “There’s a capital requirement to expand the business, and … our focus is to provide the capital and the leadership to expand the business to other markets in addition to expanding the product offering itself.”

Going Vertical: RIND Snacks Acquires Granola Producer

Making the leap from building a brand to growing a business sometimes means controlling one’s destiny.

RIND Snacks is attempting to do just that by creating a vertically integrated production model with the acquisition of Vermont-based granola company Small Batch Organics. Along with leveraging the producer’s manufacturing muscle, RIND has also leased a 15,000 sq. ft. warehouse in neighboring Bennington, Vermont, where it will handle its own logistics and fulfillment. The terms of the both deals were not disclosed.

Officially RIND closed on the Small Batch sale in October, but merging the two companies’ supply chains and operations is not something that happens overnight, RIND co-founder and CEO Matt Weiss told Nosh.

“Like most brands, we’ve relied on third parties; whether it’s product developers, co-manufacturers, 3PLs, et cetera,” he said. “It’s an exciting new step in RIND’s evolution from a dried fruit snack brand to a dynamic, diversified and vertically integrated snack platform.”

Though it did not need new investment to acquire Small Batch, RIND saw the opportunity to raise new capital as a way to “allow additional runway to really hit the ground running” and “play offense” as it moves into selfmanufacturing, Weiss said.

Although the specifics of the Series A extension have not been made public at this point, RIND confirmed that The Angel Group, RCV Frontline — the venture arm of JPG Resources — and FABID founder Ryan Williams (a previous investor) have all added investment in recent months.

The former two investment groups bring a wealth of knowledge and expertise from the founder-operator perspective and, in the case of RCV, a breadth of experience in manufacturing and product innovation.

This will be integral as RIND moves into a self-manufacturing model; yet, the dried fruit snack maker will not be alone. It has retained all of Small Batch’s labor force — founder Lindsey

Martin and one full-time employee — as well as a part-time staff of about 15 to 20 employees. Weiss also added that RIND’s staff of now nine full-time employees might expand as it grows the business this year.

Founded in 2015, Small Batch has operated predominately as a private label producer and co-manufacturer of granola products but had recently branched out into branded offerings with distribution in select Costco and Whole Foods locations.

“This [acquisition] is one plus one equals four,” Weiss said, and will allow RIND to not only dictate its production and innovation streams but also “extend into adjacent categories.”

Since its launch in 2018, RIND has operated as an asset-light, speed-tomarket snack brand reliant on comans and a variety of service providers to help the business grow. It will maintain some production redundancies with co-packers for now but is expecting to integrate about 90% of all production to its Vermont facility throughout 2024.

The addition of the Small Batch capabilities is already showing an increase in profitability for RIND, Weiss said. As the company “recaptures its value chain,” it is expected to improve its gross margin by 15 percentage points while also expanding into new day parts with product innovation.

Though there is a variety of new offerings that RIND is planning to launch throughout the year, including a whole new line that will be unveiled at Expo West, the first new product is an extension of its Remix line. The Cherry Cashew Crunch features upcycled dried cherries, spiced cashews and, in a first for the company, vanilla granola.

The new Remix variety will be available in all Sam’s Clubs locations to start and will be followed shortly thereafter in Wegmans, Hudson News and select Walmarts, among others.

While maintaining some of Small Batch’s co-manufacturing business, RIND will be “opportunistic” in private label opportunities that are “non-competitive and non-dilutive,” Weiss said.

In saying that, Weiss added that moving production in-house will allow the company more flexibility to co-develop products with its strategic retailer partners like Walmart, Target and Costco.

“You have a manufacturing portfolio of what you can do and templates you can build,” he said. “That is a huge growth opportunity for us in revenue and expands our TAM [total addressable market] dramatically.”

RIND was founded to address food waste, using overripe or not able to sell produce and diverting the whole fruits into a healthy snack. The company claims to eliminate over one million pounds of otherwise discarded fruit every year. RIND’s whole portfolio is Upcycled Certified and the addition of Small Batch’s production capabilities fits into this sustainability mission. Both the recently acquired facility and the new fulfillment warehouse run on 100% solar energy and use renewable packaging solutions.

Or as Weiss put it: “RIND acquired a ‘green’ company in the Green Mountain State.”

Shakeups At Boston Beer, Including a CEO Swap and Hard MTN Dew Distro Changes

This year has begun with a trove of news from Boston Beer Company, including the announcement that CEO Dave Burwick will step down and retire from the company’s board of directors, effective April 1.

Michael Spillane, a Nike executive and lead director on Boston Beer’s board of directors, will replace Burwick.

Burwick took the reins in 2018 following the departure of longtime CEO Martin Roper. He joined Boston Beer’s board in 2005. Prior to taking the top role at Boston Beer, Burwick was the CEO of Peet’s Coffee and served as president of WW International Inc. (formerly Weight Watchers) and CMO of PepsiCo.

“Dave has positioned the company very well for ongoing success in 2024 and beyond,” founder and chairman Jim Koch said in a press release. “I can’t thank Dave enough for his partnership with me and for his contributions to Boston Beer over the past two decades.

“His steady leadership, talent, work ethic, values, guidance, and motivation have been unwavering, and I appreciate all he did to make Boston Beer a more successful company and a better place to work,” he continued.

Burwick’s tenure includes the transformation of Twisted Tea and Truly Hard seltzer into billion-dollar brands, the acquisition of Dogfish Head, and the formation of partnerships with PepsiCo and Beam Suntory.

When Burwick stepped into the role, the company’s revenue was $850 million and has grown to $2 billion, according to Koch’s remarks in the release.

Spillane’s most recent role at Nike is president of consumer creation, before which he served as president of product and merchandising, according to the release. Other roles at Nike included president and CEO of subsidiary brands Umbro and Converse.

“After nearly eight years on the Boston Beer board – and as a native of the Boston area – I’m thrilled for the opportunity to help advance Boston Beer’s long-term goals as we enter a new growth phase,” Spillane said in the release. “I am grateful for Dave’s leadership and partnership and I’m look-

ing forward to working with Jim and so many other great people at Boston Beer to build on the strong foundation and culture that Jim, Dave and all of our coworkers have built over the course of four decades.”

Spillane joined Boston Beer’s board in 2016 and became lead director last year.

A few weeks before Burwick’s announcement, BostonBeer filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) detailing salaries, raises and bonuses for named executive officers (NEOs). All of Boston Beer’s NEOs except for Burwick received raises for 2024.

Burwick “opted not to be considered for a base salary increase” in 2024, maintaining a salary of $860,503. He received a +3% increase in 2023, below the 5% increase first promised to him when hired in 2019. He forwent his raise in 2022.

Burwick is the latest Boston Beer leader to leave the company in the past year. Former CFO Frank Smalla stepped down from the role in March 2023, staying on with the company in an advisory role through April 14. In the 8-K filing announcing Smalla’s departure, Boston Beer said his exit “is not related to any disagreement with the company or any matter relating to its operations, policies or practices.”

CFO Diego Reynoso received the largest percentage increase in the latest filing: +4%, to $624,000. Reynoso was named CFO and treasurer in July, effective September 5.

Boston Beer chief sales officer John Geist also announced he would be leaving his executive role in 2023, retiring after 26 years with the company. His last day in the role was December 31. However, he is staying with the company in a senior advisory role, and will maintain his executive salary of $608,650. Geist was “not eligible for a salary increase” in 2024, according to the filing.

All other NEOs received +3% salary increases for 2024, effective March 4:

• Chief accounting officer and VP of finance Matthew Murphy (new base salary of $393,756);

• Chief supply chain officer Philip Hodges ($633,450);

• Chief marketing officer Lesya Lysyj ($545,432).

Boston Beer Depletions -6%, Shipments -6% in 2023

News of Burwick’s retirement came moments before the company’s Q4/full-year 2023 earnings call with investors. In it, Boston Beer revealed -6% declines in shipments (sales to wholesalers) and depletions (sales to retailers) for the full year. Shipments (-3.5%) and depletions (-1%) improved in Q4.

Boston Beer experienced a “slowdown” in the first eight weeks, contrasted with “a reasonably strong finish to 2023,” founder Koch told investors. He attributed the sluggishness to Dry January, continued beer category “leakage” driven by Bud Light’s continued catastrophic declines, and the calendar cycling a price increase Boston Beer took in 2023 that drove increased load-in at the retail tier.

Despite the declines, all NEOs received 2023 bonuses, except for Smalla, who was not eligible, according to the 8-K filing. Cash bonuses are determined by whether the company meets projected goals, including depletions growth (50% of the goals), EBITA targets (30% of the goals) and “resource efficiency” (20% of the goals) – the latter of which will be referred to as “cost savings” in future filings “for the sake of clarity.”

Company performance against these goals determines the “bonus scale” and how much of the bonus pool NEOs actually receive.

“The committee has retained the discretion to increase or decrease an officer’s bonus payout by up to 10% from the baseline target bonus, if the officer was deemed to have performed ‘successfully’ in 2023, and by up to 30% if the officer was deemed to have performed ‘exceptionally,’” Boston Beer wrote in the filing. “The committee had also retained the discretion to decrease an officer’s 2023 bonus payout to as low as $0 if the officer was deemed to have performed ‘unsatisfactorily.’”

Boston Beer’s compensation committee determined that the company achieved 95% on the bonus scale in 2023 – significantly above the 38% Boston Beer achieved in 2022. As a result, NEOs were scheduled to receive the following cash bonuses on March 6:

• Burwick: $1,032,605 (was eligible for 120% of his base salary);

• Murphy: $189,850 (was eligible for 50% of his base salary as of May 3, 2023, after taking on the interim CFO tag from March 7 through September 4);

• Geist: $432,000 (was eligible for 75% of his base salary);

• Lysyj: $332,500 (was eligible for 60% of her base salary);

• Hodges: $214,500 (was eligible for 60% of his base salary);

• Reynoso: $111,000 (was eligible for 60% of his base salary).

For 2024, the bonus target eligibility will remain the same percentage for Murphy (50%) and Hodges (60%). Reynoso and Lysyj each received a +5% increase to their bonus target eligibility percentages, now both at 65% of their base salaries. Geist received a -15% reduction, to 50% of his base salary.

All other executives have a 2024 bonus target eligibility of 50% to 100% of their base salaries.

To end 2023, the “traditional” part of the beer category, which Koch estimated accounts for 80% of volume, declined -4%, while the 20% that includes beyond beer grew volume +7%.

For Boston Beer, those ratios are inverse, as beyond beer has long dominated its portfolio. Twisted Tea accounted for 49% of the company’s dollar sales at multioutlet retailers and convenience stores in 2023, according to market research firm Circana. Truly

Hard Seltzer accounted for 31%. The remaining 20% was primarily split among Samuel Adams, Angry Orchard and Dogfish Head.

During the call, Burwick highlighted the performance and opportunities for Twisted Tea and Truly Hard Seltzer.

In Q4, Twisted Tea dollar sales increased +29% and the brand gained +2.4 sharepoints, accounting for 28% of the total flavored malt beverage (FMB) segment in the off-premise channel, Burwick said. He attributed this growth to the brand’s Q3 college football tailgate campaign, increased media spending and optimized packaging.

A standout for Twisted Tea has been its variety pack, which was the third-largest and fastest-growing SKU in the FMB segment, Burwick said.

Opportunities for the brand include increasing shelf space, as the company estimates it accounts for 18% of FMB space at retail despite having a 28% share of total FMB dollars and 85% of hard tea dollars.

Twisted Tea remains “underpenetrated” in the on-premise channel, where it has a 60-point share of FMB volume. The brand is “underdeveloped” with Black and Hispanic drinkers, although household penetration among these communities increased +55% in 2023, Burwick said.

Geographically, Twisted Tea is deepening its roots in large markets such as California and Texas, where it is still underdeveloped. This progress has helped introduce the brand to Hispanic drinkers, Burwick said.

Twisted Tea Light, a 4% ABV offering, accelerated its sales per point of distribution last year; so far, its sales have been 85% incremental to the brand’s portfolio, and its ACV is 14%, with lots of runway ahead.

“We believe Light is an X-factor for brand growth in 2024,” Burwick said.

This year, Twisted Tea faces a tidal wave of competitors from all corners of the beverage-alcohol industry, including AriZona Hard Iced Tea, Monster’s Nasty Beast, FIFCO’s Lipton Hard Iced Tea, New Belgium’s Voodoo Ranger Hardcharged Tea and many more.

“Today, everybody is piling into it – there’s literally hundreds of new competitors,” Koch said. “I don’t see much traction from the vast majority of them. What I don’t know is, will something begin to get traction with a brand name from somewhere else, like AriZona or a Monster? They have a big, high hill to climb because Twisted Tea is the original. We defined the flavor profile, so to a hard tea drinker, it should taste like Twisted Tea.”

Koch doesn’t envision “a strong No. 2 emerging,” but he admitted the segment is beginning to include “great competitors,” which makes sense given the hard tea segment’s trends.

“It’s the biggest growth pocket outside of Mexican imports, so we expect to see everybody come in,” Koch continued. “But we’re 25 years into this, so we’ve got a 25-year head start. But we’re expanding our brand support. I think we’ve quadrupled it over the last few years, so we’re overinvesting to maintain that leadership.”

Twisted Tea’s continued growth will depend on the company’s ability to recruit new drinkers to its wide base which ranges “from upscale college kids to blue collar NASCAR fans,” Koch said.

“We know we’re not going to stay in the high 20s all year so we feel OK with it,” Burwick added.

Hard MTN Dew Moves to Beer Network, Going to All 50 Markets as Blue Cloud Changes Course

Burwick also announced during February’s call that Hard MTN Dew is transitioning to Boston Beer Company’s beer distributor network and will expand to all 50 states.

The move marks the end of distribution by PepsiCo’s Blue Cloud Distribution, which had been a fissure between Boston Beer and its distributor partners since the brand’s launch.

PepsiCo confirmed the shift in its ready-to-drink alcohol business model, moving to brand licensing and flavoring sales model and away from distribution. The company said this move would help accelerate growth and speed up national distribution of brands such as Hard MTN Dew with Boston Beer and Lipton Hard Iced Tea with FIFCO USA.

PepsiCo also confirmed that Blue Cloud Distribution would transfer the distribution rights of both brands to its partners’ distribution networks “over the coming months as agreements are reached with suppliers and distributors, ensuring continued service to customers.”

“PepsiCo has always been a company that prides itself on innovation – charting new pathways for growth,” Sylvia Dong, PepsiCo SVP of strategy and transformation, said in a statement shared with Brewbound. “In only two years, the Blue Cloud Distribution team stood up a malt alcohol distribution network across 18 states. This network was leveraged to grow two successful brands in Hard MTN Dew and Lipton Hard Iced Tea. We are proud of the Blue Cloud associates who pioneered a new business model in a new space.

“Our commitment has always been to delight consumers at every beverage occasion with an ambition of reaching a national footprint,” she continued. “This means evolving our business model to extend the footprint of these brands, making them available to consumers nationwide.”

The new model for Blue Cloud is similar to that of competitor Coca-Cola’s Red Tree Beverages. Red Tree leadership has

continually emphasized that the wholly owned subsidiary has no interest in being a bev-alc distributor.

“One thing I want to be very clear about is that Red Tree will not distribute alcohol in the United States, nor will Coca-Cola,” Red Tree president Jenny Dowdy said last fall. “The creation of Red Tree was really just a way to formalize the way that we operate. It just underscores that we operate as a distinct entity from our non-alc business.”

Coca-Cola’s bev-alc ventures include Topo Chico Hard Seltzer, Simply Spiked, and Peace Hard Tea with Molson Coors; Fresca Mixed with Constellation Brands; Absolut & Sprite with Pernod Ricard; and Jack & Coke with Brown-Forman.

The contentious issue of Hard MTN Dew distribution manifested in Virginia where the company’s existing distributors challenged the appointment of Blue Cloud for Hard MTN Dew.

The Virginia Alcoholic Beverage Control Authority sided with Blue Ridge Beverage and Reyes Beverage Group subsidiary Premium Distributors of Virginia, ruling in late 2023 that Boston Beer was prohibited from appointing any distributor other than Premium and Blue Ridge to distribute Hard MTN Dew in those distributors’ respective sales territories.

The distribution model was also heavily criticized by the National Beer Wholesaler Association (NBWA), which claimed the organization skirted the three-tier system, and opened up the possibility of large soda giants using their existing retailer relationships – and inherent slotting fees – to get better shelf space for bev-alc products.

ALT DAIRY

Oat milk still dominates when it comes to plant-based milk pairings with coffee, but pistachio milk experts Táche are ready to offer something new: Táche Pistachio Milk Latte (6-packs are $38), now available to order through the brand’s website and rolling out to retailers later this year. For more information, pistachiomilk.com.

Plant-based milk brand Mooala has introduced a new on-the-go format for its Bananamilks in Sprouts stores nationwide. Available in three flavors – Vanilla, Chocolate and Strawberry – each 8 oz. shelfstable carton of milk is available for a SRP of $1.69. Sprouts is also the inaugural national retailer for Mooala’s new Simple Organic line of Oatmilk and Almondmilk. For more information, visit mooala.com.

Building on the success of its barista line, Oatly is pushing further into the coffee add-ins category with a new line of nondairy creamers that’s hitting store shelves this month. Available in four varieties – Vanilla, Mocha, Sweet & Creamy and Caramel – the oat-based creamers were “developed to swirl beautifully into coffee while delivering the perfect amount of flavor,” according to the brand. For more information, visit oatly.com.

JUICE

In honor of Lilly Pulitzer’s 65th anniversary, the resort wear brand has collaborated with Natalie’s Orchid Island Juice Company to lend custom artwork to the latter’s 8 oz., 16 oz., and 32 oz. orange juice bottles. An exclusive run of the limited edition bottes featuring Lilly Pulitzer’s signature, handpainted prints will launch in resorts, grocery stores, restaurants and concessions nationwide this month and will be available on shelves through mid-October. For more information, visit orchidislandjuice.com.

ENERGY

G Fuel seeks to take consumers on an excellent adventure with its latest flavor release, Wyld Stallyns Bahama Mama. Made in partnership with Creative Licensing Corporation, the limited edition variety takes inspiration from the classic

comedy film Bill & Ted’s Excellent Adventure. Each full-art collector’s box ($39.99) includes a 40-serving tub of Wyld Stallyns Bahama Mama, a pair of futuristic shades and a 24 oz. shaker cup featuring Bill, Ted, Rufus and their phone booth time machine. For more information, visit gfuel.com.

Better-for-you energy drink maker Celsius has introduced its newest flavor, Sparkling Raspberry Peach. Like the rest of the brand’s Original offerings, the new flavor boasts 200mg of caffeine derived from guarana extract and contains zero sugar. Celsius’ Sparkling Raspberry Peach is available for purchase on Amazon for $23.70 per 12-pack of 12 oz. cans. For more information, visit celsius.com.

First teased at NACS last year, Pepsi-owned energy drink Rockstar has officially unveiled its latest creation, Rockstar Focus. Available in three flavors at launch – White Peach, Lemon Lime and Orange Pineapple – each 12 oz. can boats 200mg of caffeine and features Lion’s Mane for a mental boost. The zero-sugar, calorie-free beverages are now available via the brand’s website for $22.49 per 12-pack and at retailers nationwide for $2.99 per can. For more information, visit rockstarenergy.com.

MIXERS

The Coca-Cola Company is looking to its sparkling mineral water brand Topo Chico to extend into the non-alcoholic cocktail mixer set with a new line featuring Ginger Beer, Tonic Water and Club Soda flavors. Available in 7.1 oz. glass bottles, the mixers can be used with alcohol, in a mocktail, or consumed on their own. The line is set to hit shelves on March 17 and will retail for $6.79 per 4-pack. For more information visit coca-cola.com/us/en/ brands/topo-chico/.

CSDs

Co-branded, candy flavored drinks have risen in popularity in recent years and now Wild Bill’s Craft Beverage Co. is joining the fun via a partnership with Bazooka Candy Brands to create a Ring Pop flavored craft soda. Available in Blue

Raspberry and Berry Blast, the drinks are launching today at select retailers around the country and online D2C. For more information visit drinkwildbills.com/.

Have you ever found yourself wanting to bottle the starstruck feeling of seeing your favorite artist perform live? Well, Coca-Cola has you covered with its new limited edition K-Wave Zero Sugar flavor. The new CSD features a “fruity fantasy” flavor profile and can be purchased on the company’s website for $8.95 per 4-pack. For more information, visit cocacolastore.com.

RTD COFFEE

Texas-based organic coffee maker Chameleon has had single-serve bottles and cans on the market previously, but its new three-SKU line of 8 oz dairy-free cold brews feature revamped packaging design and are available in three flavors: Nitro (5 calories), Sweetened (40 calories) and Double Espresso (10 calories). Expect to find them in stores this July, priced at around $3.49 each. For more information, visit chameleoncoffee.com.

Now you can have your cereal and drink it too! Ready-to-drink coffee brand Victor Allen’s has teamed up with General Mills to create its newest product, Cinnamon Toast Crunch Iced Coffee. Each 8 oz. can features a blend of milk, sugar and Arabica beans and has 100 calories. Victor Allen’s Cinnamon Toast Crunch Iced Coffee is available at Sam’s Club and on samsclub.com for $15.98 per 12-pack. For more information, visit victorallen.com.

RTD TEA

PepsiCo’s bottled tea brand Pure Leaf has added its first Zero Sugar Sweet Tea variety. Retailing for $2.49 per 18.5 oz. bottle and also available in a 64 oz. multiserve container, the tea is sweetened with sucralose and contains no artificial flavors or coloring. For more information, visit pureleaf.com.

Uncle Matt’s has been making an Arnold Palmer for some years, so jumping into teas isn’t such a big leap. The new multi serve line features organic black teas in

unsweet and sweet (10 grams of sugar and 40 calories per serving) varieties, both in 52 oz. bottles priced at $4.99 each. For more information, visit unclematts.com.

Twrl Milk Tea has teamed up with the Taiwanese American Federation of Northern California (TAFNC) and illustrator Eugenia Yoh to create a special edition can design for its Taiwan-Style Black Milk Tea. The Formosan black bear illustration and Taiwanese milk tea symbolize Taiwan’s commitment to environmental conservation, culinary excellence, and fostering global friendships. The special edition cans will be available at retailers such as Whole Foods Market, Sprouts, Wegmans and Central Market. For more information, visit twrlmilktea.com.

SPIRITS

The House of Rémy Marti n is celebrating its tricentennial with the launch of the 300th Anniversary Coupe. The new LTO was crafted by cellar master Baptiste Loiseau from the Rémy Martin “Réserve Perpétuelle,” a collection of eaux-de-vie, exclusively from the Grande Champagne terroir in the center of the Cognac region. Rémy Martin’s 300th Anniversary Coupe is currently available for purchase on the brand’s website for $2,750 per bottle. For more information, visit remymartin. com.

Penelope Bourbon’s Tojaki Cask Finish straight rye whiskey has returned. The third installment in the company’s Cooper Series, Tojoaki Cask Finish is distilled in Lawrenceburg, Indiana, aged eight years and bottled at 106 proof. A limited allocation of 1,900 (6-pack) cases will be available at a SRP of $89.99 per 750ml bottle. For more information, visit penelopebourbon.com.

Hard Truth Distilling has dropped its first line of bourbons produced grain-to-glass. Available in three varieties – Sweet Mash Wheated Bourbon (100 proof, 50% ABV), Sweet Mash Bourbon (93 proof, 46.5% ABV) and Sweet Mash Four Grain Bourbon (100 proof, 50% ABV) – they will be available in select markets starting March 1. For more information, visit hardtruth.com.

SPOTLIGHT CATEGORY

Premixed Cocktails

Several years of growth have paid off for Buzzballz, as it was bought out by Sazerac earlier this month. That leaves Beatbox as the largest independent brand, with huge ongoing growth. Meanwhile, Coke/BF teamup Jack and Coke is starting to gain momentum, as is The Long Drink. And look out for carb-free brand Carbliss, which showed huge gains in the trailing 52 weeks.

TOPLINE CATEGORY VOLUME

ENERGY DRINKS

RTD CAPPUCCINO/ICED COFFEE

ENERGY SHOTS

RTD TEA

SPORTS DRINKS

RFG KOMBUCHA

CHANNEL CHECK

FLAVORED CONVENIENCE/BOTTLED STILL WATER

FLAVORED SELTZER

Expo West 2024 Recap

New Hope Network’s Natural Products Expo West returned to the Anaheim Convention Center in March with a plethora of new product innovations in the beverage set, including freshly brewed products from La Colombe and Super Coffee, new line extensions from Uncle Matt’s and Minor Figures and much, much more.

Before the doors even opened to the 65,000 registered attendees, a handful of beverage brands announced sizable funding rounds despite the VC market recently dropping to its lowest level in four years. Alternative milk brand MALK closed a $7 million internal investment round led by existing investors Benvolio Group and Rotor Capital while canned water producer Liquid Death closed a $67 million funding round at a valuation of $1.4 billion.

Additionally, Asian-inspired sparkling water brand Sanzo added some star power to its cap table with producer/DJ Steve Aioki and actor Simu Liu joining the brand as investors.

When the doors finally opened on day one of Expo West, brands like Uncle Matt’s and Minor Figures unveiled their first forays into new categories.

Minor Figures’ relationship with coffee is still tight as ever, even if there’s been some changes. At the show, the UK-based oat milk specialists were serving up hot lattes at their booth, a reflection of the brand’s current strategy to drive awareness and adoption mainly from behind the barista bar. Minor Figures’ new slimmed-down lineup consists of three barista-version oat milks – original, organic and light, all of which are manufactured in the U.S.

– that are mainly marketed towards foodservice and high end coffee purveyors. The brand is also looking beyond coffee as well: next up is its 32 oz. Chai Concentrate, set to enter foodservice outlets this June

Elsewhere, having extended its reach across the juice set with a deep portfolio of multi- and single-serve offerings, Uncle Matt’s Organic is also tackling a new category: tea. At its North Hall booth, the brand showcased its multiserve tea line, which features organic black teas in unsweet and sweet (10 grams of sugar and 40 calories per serving) varieties, both arriving in 52 oz. bottles. The drinks will retail for $4.99 each.

The brand’s namesake founder and CEO Matt McLean noted that Uncle Matt’s was already sourcing tea for its Half & Half tea and lemonade flavor for its line of lemonades, so using the same supplier it was a relatively simple addition to add proper ready-to-pour teas to its portfolio.

“I think the Half and Half makes it believable for us [to the consumer],” he said. “Our brand is about premium, and I think an organic refrigerated premium black tea is a pretty easy thing for us.”

Also at the show, there was no shortage of caffeine to keep attendees and brands alike awake and functioning for the three-day extravaganza, especially with La Colombe’s revamp under Chobani’s ownership and Super Coffee fine-tuning its identity (and portfolio).

Speaking with BevNET off the show floor, Chobani founder Hamdi Ulukaya shared a look at La Colombe’s first

product milestone since the Chobani deal: a reformulated, redesigned and larger format version – now 11 oz., up from 9 oz. – of La Colombe’s flagship Draft Lattes (and labeled again under that name).

The success of Draft Lattes, manufactured at a dedicated facility in Michigan, will hinge partly on the success of La Colombe’s $300 million DSD distribution partnership with Keurig Dr Pepper, announced last summer but set to kick into gear with the new 11 oz. cans this spring. It’s easier said than done: just ask Molson Coors, La Colombe’s former distributor.

Creeping up on almost a decade since its founding, Super Coffee’s product portfolio has continued to expand and contract. Its founders are looking to streamline Super Coffee’s identity and redirect its offerings to specific need states and channels, all while maintaining a clear overarching vision for the brand.

First up is the return of Super Cof-

fee Espresso, last seen in 6 oz. cans that launched back in 2019 before falling victim to COVID supply chain challenges. The new version upgrades to an 11 oz. can (SRP $2.49) in three SKUs – Vanilla Espresso & Cream, Espresso & Cream and Espresso Black – that are set to enter Northeast DSDs Big Geyser and Polar this Spring, as well as going nationwide with Sprouts.

Another major theme at the show: hydration brands seeking to appeal to a younger, more pint-sized demographic.

After a successful partnership last year with DreamWorks’ Trolls 3 movie, ShineWater is back with new kidpositioned packaging this time with Nickelodeon’s Paw Patrol franchise. The two-year licensing deal allows more time for the enhanced still water brand to piggyback on the success of the animated kids show. It also showcases ShineWater’s new, more sustainable packaging.

Meanwhile, established hydration brands Caliwater and Cure are seeking to get their products into tiny hands through new packaging formats and flavors.

According to Caliwater president Nick Benz, the vegan cactus water brand created a children’s line after consumers found themselves reaching for a can only to find out their kids had already consumed them all. Now the brand’s two most popular flavors – Watermelon and Prickly Pear – features the same formulation as the brand’s canned products, but in a 4.2 oz. recyclable pouch.

Similarly, Cure CEO Lauren Picasso said consumers came to her saying their children were drinking the regular hydrating electrolyte powder product line and asking if it was suitable for kids (it is). Picasso said she was inspired to create a line of new flavors in a smaller format. Available in three kid-approved flavors – Fruit Punch, Pink Lemonade, and Mixed Berry – the hydrating electrolyte mixes are crafted with coconut water powder, pink Himalayan salt and stevia extract and designed to be mixed with 8 oz. to 12 oz. of water rather than 8 oz. to 16 oz.

Winter Fancy Food Show Review 2024

The Winter Fancy Food Show, hosted at the Las Vegas Convention Center from January 21-23, saw numerous new products on display that tapped into consumer demand for culinary convenience, ranging from premium frozen items and chefcrafted pantry staples. Exhibitors also showed off new formats like cauliflower-packed puffs, dehydrated fruit-based brittles, freeze-dried salsas, while others displayed updated brand identities, a variety of improved formulations and more.

The freezer case has become a hotspot for specialty food brands, including Myles Comfort Foods, which sampled its frozen mac-and-cheese meals. Sobo Foods unveiled a collection of frozen plant-based dumplings, including Japaneseinspired Curry Potato, Chinese-inspired “Pork” & Chive and Korean-inspired Kimchi & Mushroom offerings.

Sunday Supper, a maker of frozen plant-based lasagnas, is launching Mozza Fritto, a dairy-free spin on breaded mozzarella sticks formulated with coconut oil, chickpea protein, potato protein and starches. The mozzarella-like sticks mark Sunday Supper’s first expansion beyond meals, into the snacks and appetizers space, which it believes could help generate trial with a wider range of consumers.

Globally inspired condiments featured at the event included Malaysian curry blends, Afghan-style chutneys and Mexican taco seasonings. Billed as “the five-second chutney,” Chutnefy is a line of powdered mixes made with fresh, locally sourced produce and no added preservatives, additives or colors. Sach Foods introduced meal starter kits alongside new chutney and sauce offerings. The meals combine cubed organic paneer, a fresh cheese that doesn’t melt, with a sauce. The new SKUs are intended to complement the Indian food brand’s hero paneer products while providing ways for consumers to mix and match flavors for easy meals at home.

Consumer research released in November by the Specialty Food Association found breakfast is a growing meal for specialty food purchases. Several startups at the show exhibiting easy-to-prepare options included Heavenly Waffles, which produces a range of chef-developed, dry yogurt-based mixes that are prepared with carbonated water; Unwaffle, a brand of organic frozen waffles that are free of the top 14 food allergens and high in protein; and Oath Oats, a line of overnight oats founded by food influencer Yumna Jawad.

A number of brands showcased new looks on the show floor, and the reason behind each refreshed look varied just as much as the products themselves. Here’s a taste of what we saw:

Krack’d Snacks, formerly Keto Krack’d, executed a full rebrand that removed the diet claim from its name after numerous suggestions from buyers and industry experts, said founder William Kwak. The new moniker is intended to appeal to an audience beyond those following a keto diet. Previously the product was positioned toward a male audience with a solid black package, but Kwak said the vast majority of its consumers are women, and with the new iteration it adopted a genderneutral color palette as well as food photography.

Lolly’s Frozen Grapes was also among those exhibiting new looks at the show. After slowing down during the pandemic, the company reorganized, purchased manufacturing equip-

ment for its 3-SKU line of chocolate-covered frozen grapes, and adopted a new vibrant purple palette as it looks to win back previous retail accounts in the SoCal region.

After recently participating in the Mondelēz CoLab class accelerator program, cookie dough snack bar Whoa Dough introduced a new look that puts an image of its product front and center on the package. Founder and CEO Todd Goldstein explained that the concept of a cookie dough bar is still new to most consumers. During the accelerator, the brand’s CoLab mentors suggest showing the bar, and elevating the callout on the front of the pack, to help win over more consumers.

Lastly, century-old family-owned truffle company Sabatino Tartufi has rebranded to simply Sabatino, with tagline “The Truffle Family” placed above the new, shorter brand name. The update comes as the Umbria, Italy-based brand extends itself deeper into the U.S. market and hopes to appeal to a broader range of consumers. After expanding beyond black truffle oils and salts last year with products including boxed mac and cheese, risotto and crackers, it plans to build on that momentum this spring with a new line of black truffle marinara sauces launching at Whole Foods.

Plant-based charcuterie got an upgrade. Beyond the endless wheels of cheese and charcuterie boards, plant-based brands also showed off some new iterations of their staple items in attempts to bring them closer to their animal-based counterparts.

Prime Roots showcased its new partnership with charcuterie brand Three Little Pigs. The plant-based deli meat maker has created a new iteration of its koji-based Foie Gras using Three Little Pigs’ traditional pate making process. A spokesperson for the brand said the process results in a creamier texture for the co-branded products. Through the partnership, the products have also launched into foodservice, primarily in the hospitality space, under the charcuterie brand’s Fabrique Delices line.

Schuman Cheese plant-based cheese subsidiary Vevan also improved its take on plant-based with a new formula for its slices, shreds and spreads lines that now utilizes pea protein as its base instead of coconut oil, palm oil and starch. The new line uses traditional fermentation methods and, coupled with its new protein base, brings the product’s nutritional value closer in line with dairy-based cheese.

Brewbound

Brewers Association Hopes to Turn Craft’s Luck at CBC in Las Vegas

The 2024 Craft Brewers Conference (CBC) and BrewExpo America will take place from April 21-24 in Las Vegas, Nevada, hosted by the Brewers Association (BA).

This year’s keynote speaker is Fawn Weaver, founder and CEO of Uncle Nearest Whiskey. In an address titled “The Story of Uncle Nearest and What Craft Distillers and Brewers Have in Common,” Weaver will dive into the evolution of Uncle Nearest Whiskey and how she became the “first non-celebrity Black American woman to build an independent company valued at over $1 billion.”

Weaver is also the founder and CEO of Grant Sidney, Inc., a privately held investment firm, and the creator of the Uncle Nearest Venture Fund, a $50 million fund that invests in minority-founded, -owned and -led brands “with the greatest potential to grow into legacy brands,” according to the BA.

CBC is one of the BA’s remaining events after several recent changes to its events calendar. The trade group has placed Homebrew Con, its annual gathering of homebrewers, on hiatus, instead offering some homebrew-centric festivities to the Great American Beer Festival (GABF) this fall. And in 2022, the BA canceled SAVOR: An American Craft Beer & Food Experience, citing “a variety of factors, including rising operational costs.”

CBC, GABF and Homebrew Con are the BA’s largest revenue source. In 2023, BA event revenue declined -2%, to $13,886,191, while the trade group’s overall revenue declined -2%, to $22,914,025, according to the BA’s annual report.

More than 60 educational seminars will take place at CBC, exploring eight key business areas: business and leadership; export development; government affairs and legal; production and operations; quality and ingredients; sales and market; taprooms and brewpubs; and THRIVE (diversity, equity and inclusion, human resources and wellness).

Other featured speakers and discussions on the CBC site include:

• Industry analyst Brandy Rand discussing “What’s Influencing How We Drink Today and in the Future;”

• Lifting Lucy co-founder Tranice Watts on “Forging Strong Connections in a Seemingly Polarized World;’

• Beer Marketer’s Insights senior editor Christopher Shepard presenting on “Ways to Weigh Alcohol Research, Policy and Perceptions;”

• Two Roads Brewing brewmaster and head distiller Phil Markowski, with “An Introduction to Distilling for Brewers;”

• Schilling Cider co-founders Colin Schilling and Mark Kornei exploring growth drivers for craft hard cider;

• “Brewing with Climate-Friendly Regenerative Ingredients: A Gateway to New Customers” featuring BA chief economist Bart Watson, Topa Topa Brewing co-founder and CEO Jack Dyer; Whole Foods global principal category merchant, beer, Mary Guiver, Patagonia general manager Paul Lightfoot and Brooklyn Brewery brewmaster Garrett Oliver;

• And “Innovation: What Does it Mean and How Can it Help Your Business” with Wayfinder Beer brewmaster Natalie Rose Baldwin, 10 Barrel Brewing innovation brewmaster Tonya Cornett, New Belgium lead research and development brewer Kelly McKnight and Samuel Adams Downtown Boston Taproom head brewer Megan Parisi.

Prior to CBC sessions kicking off, the BA will host the THRIVE Workshop, an add-on event held on April 21. The day-long event will start with an address from Weekend Beer Company co-owner Ashley Crews titled “Creating a Culture Employees Don’t Want to Leave.” Brewers will explore tools for keeping employees engaged and what leadership qualities best support employee wellbeing.

Other sessions at the event include:

• “How to Use Coaching Tools to Drive Performance and Growth;”

• “A Week in the Life of HR: How to Handle Common Employee Issues;”

• “Less Money, Mo’ Problems: Evaluating the Impact of Compensation on Employee Turnover;”

• “Courageous Conversations: How to Navigate that Uncomfortable Discussion;”

• “Craft a Harassment-Free Craft Brewery;”

• “Strategic Synergy: Navigating the Future of HR, DEI, and Wellness through Collaborative Conversations;”

• “You’re Asking the Wrong Question: Leveraging the Power of Diversity;”

• “Redefining Collaboration: A Framework for Establishing Best Practices Across All Aspects of Your Business;”

• And “Brewing Resilience Workshop: Broaching Tough Conversations Around Burnout.”

The 2024 World Beer Cup award ceremony will be held on Wednesday, April 24 from 5:30-7:30 p.m at the Venetian Convention and Expo Center. A livestream will also be available.

HEMP-DERIVED SATISFIES CONSUMER THIRST FOR THC BEVERAGES

By Lukas Southard

It’s high times for hemp beverages. Powered by a new set of brands that use delta-9 THC derived from hemp as an intoxicating ingredient, demand has steadily ticked up in the last year among consumers, while distribution has expanded beyond small, independent retailers and into national retailer and distribution operations.

Nevertheless, despite the optimism surrounding major bev-alc retailers like Total Wine & More and Spec’s paving the way for more robust distribution opportunities, there remains a complex gray area surrounding how these THC drinks are regulated. This lack of uniformity is casting shadows over how to efficiently meet a thirsty market amid conflicting signals from state and federal policymakers.

Over the last year, CBD drink makers and marijuana-derived THC brands have changed course as new distribution avenues have opened up in that low-dose, delta-9 (D9) THC beverage category. What started in Minnesota during summer 2022 has spawned a billion dollar industry in the last year as brands have realized that the most effective path to market for low-dose beverages (between 2mg and 5mg per serving) is not through recreational and medicinal cannabis dispensaries, but a mixture of traditional alcohol retailers,

online sales, and even convenience stores and co-ops that don’t traditionally sell booze.

It’s not all smooth sailing: federally, marijuana is still categorized as a Schedule I substance under the Controlled Substances Act. But the cooler was opened by the 2018 Farm Bill, in which industrial hemp grown with tetrahydrocannabinol (or THC, the psychoactive component of marijuana) concentration of no more than 0.3% was deemed legal, leaving a backdoor for sectors of the cannabis industry to capitalize on.

What remains is a relatively murky area for D9 THC beverages to operate in between a regulated, age-gated industry like alcohol and the black market that existed before states started to allow medical and recreational, adult-use cannabis. This environment has led to a complex set of logistical issues for hemp beverage brands seeking to market and advertise products both online and to retailers – even as demand has grown among consumers.

But the growth of the product type has enabled it to develop a regulatory offense: Lobbying groups, service providers and hemp brands themselves have taken up the mantle to educate policy makers and legislators for guidelines, regulation and enforcement as demand for low-dose, THC beverages grows.

Sales of hemp-derived THC drinks were up by 143% in 2023, according to data from the Brightfield Group. Dollar sales for hemp THC beverages was $98.1 million in 2023, below CBD drinks ($166.9 million) and well behind the marijuana-derived THC versions ($347 million). Yet, it’s still early days for the nascent industry and trends point to that discrepancy changing rapidly.

A Veritable Green Rush In Beverages

“The [hemp-derived THC] market is set to overtake the CBD drinks market by 2025, potentially faster, depending on the regulatory landscape and brand investment by large manufacturers,” said Brightfield Group managing director Bethany Gomez.

In states where recreational cannabis has not been legalized, consumers are finding hemp beverages sold via the internet — or even less regulated outlets — as viable alternatives to dispensaries. Hemp-derived beverage sales are also taking off in states like Tennessee, where marijuana dispensaries are not able to operate. Regionally, the South accounts for 56.8% of hemp THC beverage sales compared to 16.2% in the Northeast (where many states have passed recreational or medicinal cannabis legislation), according to the Brightfield Group’s data.

The momentum is now attracting more entrepreneurs.

In the last year, the number of hemp D9 beverage brands has grown exponentially from both CBD beverage makers jumping into the hemp THC category and new brands erupting out of adjacent categories like craft beer and functional beverages.

The speed of growth in hemp THC beverage is hard to quantify but, as a comparison point, last spring the Hemp Beverage Alliance (HBA) was an informal conversation between eight brands every other week discussing issues ranging from co-packers and distribution opportunities. Now, HBA founder and president Christopher J. Lackner says “we’re up to 200 members, with 50% [of membership] brands and the other 50% being supply chain operators, law firms and professional service providers.”

One of the most effective distribution channels for the category has been online, although that route to market has its own challenges.

Meta and Google have maintained strict advertising policies for both THC and CBD products. Both tech platforms amended their policies last year to be moderately less stringent around wording and, in the case of CBD, requiring third party certification before allowing posts and advertising to go up.

Aaron Nosbisch launched LUCYD media company in 2018 to help CBD and THC brands navigate the complicated climate of social media advertising on Meta, Google, and now TikTok. With the success of building LUCYD as a service provider to the cannabis industry, Nosbisch launched his own hemp THC beverage brand, BRĒZ, last year. It offers low-dose D9 and CBD ‘social tonics’ fortified with Lion’s Mane mushrooms.

Counter to beverage industry philosophy, BRĒZ operates almost exclusively online and has no plans to expand at the moment into traditional retail. BRĒZ is the second largest THC beverage sold online, tallying $1 million in sales in March alone, according to Nosbisch.

At the Hemp House dispensary in Minneapolis, Minnesota, hemp THC drinks jumped from 20 SKUs to around 400 between 2022 and 2023, said David Gonzalez, who manages growth at the dispensary and is spearheading a push for more data collection in the category.

In Minnesota alone, there are now over 3,000 retailers selling hemp THC drinks. Part of the reason Gonzalez and other industry leaders are trying to organize the data is to help stakeholders tell a complete story about the category to both distributors and lawmakers.

“The more infrastructure that gets laid, the more distributors pick up these types of products, the more they proliferate and get into retail stores,” he said. “It’s tough to put the genie back in the bottle.”

“This has become a big industry very, very, very quickly,” he said. “And my customers are not cannabis users. I’d say 80% of my customers rarely-to-never smoke cannabis.”

The growth in DTC has fueled the increasing interest outside of the adult-use dispensary channel and into beer, wine and liquor retailers, Lackner said. “These are adult beverages that need to be next to other adult beverages in the places where people expect them to be.”

If the only place you could get functional beverages was specialty health and nutrition stores like GNC or Vitamin Shoppe, Lackner said, adaptogenic drinks would not be in nearly every grocery store today.

For the THC beverage industry to expand it needs the distribution network that has been set up and, in many cases, supported by alcohol companies. Bev-alc distributors are the best way to grow the category because they are experienced in transporting, selling and merchandising a controlled beverage product. Yet, cannabis beverages are inherently taking market share away from booze and marketing as alcohol alternatives in stores, forcing the low-dose THC beverage industry to be careful how it works with bev-alc distributors, according to some industry stakeholders spoken to for the story.

Alcohol Distribution Is Key

Flyers Cocktail Co. launched in October 2021 offering three varieties of CBD beverages in 8 oz. cans. In 2023, the brand expanded into 12 oz. slim cans with 5mg of hemp-derived THC – which now outperform the company’s CBD beverages.

Positioned as an alcohol-free alternative to traditional cocktails, Flyers is in about 600 stores currently but sees its recent partner-

ship with Total Wine & More in Connecticut as a watershed moment, as it has lined up new distribution partnerships in Missouri, Tennessee, Massachusetts and Illinois. The brand is targeting distribution in about 3,000 doors by the end of the year.

Traditionally the route to market and distributor buy-in within a state is driven by brands marketing themselves to hundreds of independent retailers and then bringing velocity data back to the DSDs to show consumer demand, said Flyers CEO and co-founder Craig Lewis.

“With hemp THC, it’s the other way around,” he said. “We have zero exposure in the state and these distributors are actively holding conversations and pitch meetings to bring hemp THC into the state. Then, brands are retroactively filling it with support like brand messagers, sales reps and incentive programs.”

A similar story is being told by hemp THC beverage brand Pamos. Co-founder David Mupko said “some of the largest beer distributors” in the industry are on the cusp of carrying THC beverages and within the next two to three months, there will be very few major beer DSD networks that don’t carry THC beverages.

Pamos launched as a multiserve marijuana-derived THC beverage and has operated in California, Nevada and Arizona since 2021. Last October, the brand released its hemp THC version, which has opened up a broader swath of retail options.

Even though people are consuming less alcohol, it doesn’t mean they are willing to give up the buzz or the ritual that comes with having adult beverages like beer, Mukpo said. “There was always a demand for low-dose THC beverages, accessibility was always the issue.”

Access is changing quickly. Total Wine & More expanded its THC offerings from its initial launch in Minnesota to new states like Texas and Connecticut. Riding the wave, Texas-based liquor store chain Spec’s is another major alcohol purveyor to recently put THC beverages onto store shelves.

“As consumers look to mix in alcohol alternatives to their cart, Spec’s is meeting that demand by bringing in a diverse group of brands from the emerging delta-9 THC category,” Spec’s third-generation owner Lisa Rydman-Lindsey said in a statement.

Pamos announced it had partnered with Spec’s, which will carry both of the brand’s product lines — non-alcoholic, large format spirits and its RTD Spritzes — in over 200 locations. The beverage maker has also been actively working to line up an on-premise account with Amerant Bank Arena – which hosts NHL’s Florida Panthers games.

Distribution is also moving onto food delivery platforms like DoorDash. After quietly testing the market for hemp THC beverages in Minnesota, the delivery platform is now gearing up for a major expansion into other markets in coming months.

The Hemp THC Gray Market

While some cannabis brands are thriving on what has been a state-by-state approach, others are getting together to unify the patchwork quilt of regulations, with the hope of finding solutions to other federal barriers around banking and taxation.

The Cannabis Beverage Association (CBA), which represents both hemp-derived and marijuana-derived THC, is focused on bringing more education to legislators and regulators as the rapid growth of the category has put pressure on policymakers. The CBA is actively lobbying for the Alcohol and Tobacco Tax and Trade Bureau (TTB) to oversee THC beverage regulation and enforcement.

“Beverage could really be the category that makes cannabis

more approachable for people on [Capital] Hill, whether its policy makers or regulators,” said Diana Eberlein, president of the Cannabis Beverage Association.

The melange of state-level legislation that has happened over the years has made regulation unsustainable in the long run, Eberlein said.

State policymakers are struggling with loopholes and unforeseen consequences within their own regulatory structure. With the hemp-derived product category’s growth has come a slew of brands making “synthetic” delta-8 (a different cannabinoid compound found in hemp) beverages that do not have the same testing protocols and standards of purity espoused by organizations like the CBA and HBA.

At the beginning of the year, Florida’s state legislature attempted to address the problem of unregulated delta-8 (D8) products (including beverages) with uncommonly high dosages showing up in gas stations and convenience stores. State lawmakers passed a bill that outlaws D8 and restricts D9 THC products to 5 milligrams per serving and 50 milligrams per container.

New York (where recreational cannabis is legal) went even further with its restrictions limiting hemp-derived THC products to 1mg THC per serving and 10 mg THC per package with a 15-to1CBD to THC ratio; essentially barring nearly all hemp THC beverages from the state.

Similarly, Colorado put in place a similar law last year limiting hemp THC to 1.25mg per serving and a mandated 20:1 or greater CBD to THC ratio. In California, THC beverages (both hemp- and marijuana-derived) are only permitted to be sold through adultuse cannabis dispensaries.

Even for some cannabis industry stakeholders these laws seem counterintuitive and overly stringent. On the one hand, the state laws are an attempt to control the black market that has sprung up alongside the gray market that hemp-derived beverages have ushered in. Yet some hemp producers see the laws (as in the case of California and Colorado) as a way for the regulated, recreational marijuana industry to control what THC products are sold and who makes them.

The waffling and constantly evolving regulatory environment state-to-state can be exceedingly expensive for newcomers to the category like Magic Cactus, which launched its 2mg THC and 6mg CBD beverage late last year. Anticipating New York opening up a lot of opportunity, founder Jonny Locarni set up manufacturing there with a path to market plan within the state.

“We were thinking this would be a great spot to have a retail footprint,” Locarni said. “Then we had to pull the plug completely on that plan. We haven’t put a single product on any shelf in New York.”

In an effort to provide clarity for the industry, the CBA has partnered with the University of Maryland Medical Cannabis Science and Therapeutics program to help policymakers understand the intricacies of how the THC beverage category is evolving and how to regulate it.

“These policies are being made at this top level with nothing informing them,” said University of Maryland graduate student and CBA Education Committee member Jessika Bartron, who has been tasked with developing the education program.

“The government is looking around saying ‘who do we trust, who has this information,’” she said. “There’s high-dose, there’s low-dose, there’s hemp-derived, there’s THC-derived. There’s a lot of education that needs to happen for high-level decision makers to be able to make these policies that don’t end up in loopholes and put people in dangerous positions.”

Peach is a juicy, sweet-tasting addition to the hi Seltzer line-up. Made with 5mg of hemp-derived THC, it has 0 sugar, 0 calories, and 0 alcohol. hi Seltzer always pours clean and clear each time.

WYNK, a hemp-derived THC:CBD seltzer, recently launched its latest flavor, Tangerine. Available in 7.5 oz. cans with a 2.5 mg dose and 12 oz. cans with a 5 mg dose, it’s a tangy citrus burst paired with a soft sweetness, guaranteed to put you in the mood to have fun with friends! WYNK is available online for purchase in 37 states and sold in retail stores in 12 states at drinkwynk.com.

Shimmerwood Beverages has been rated the Best CBD Beverages by Forbes Health now two years running, 2023 and 2024! Along with being the only 5-star rated CBD beverage amongst 30+ brands nationwide, Shimmerwood is also recognized as the Best Lower Potency Option. The company’s distribution has expanded through its latest partnership with Central Distributors, one of Maine’s leading beverage distributors.

COUNTDOWN, a high-dose THC seltzer, is excited to launch COUNTDOWN ENERGY, a 10 mg, hemp-derived THC sparkling beverage infused with 100 mg of caffeine (one cup of coffee). Available Berry Force Energy, Cosmic Lemonade Energy, Orange Blast Energy, this will be the first time COUNTDOWN beverage is shoppable outside of dispensaries. Starting in early April, COUNTDOWN ENERGY 10/100 mg, will be available for retail purchase in Ohio, Massachusetts, Minnesota, and New Jersey in early April and online in 23 states.

Fresh off selling its two-millionth can of Crescent 9 THC Seltzer, New Orleansbased Crescent Canna has partnered with hip-hop icon Curren$y to launch Jet Life THC Soda, a deliciously potent, sparkling grape lemonade made with 50 mg of hemp-derived Delta-9 THC per can. Along with the company’s flagship brand, Crescent 9, Jet Life THC Soda is available online at crescentcanna.com and through beverage distributors in multiple states.

MYND Drinks has made a remarkable splash in the NYC beverage market since its January 2024 launch, quickly securing shelf space in over 400 stores. Elevating their game, MYND is the “Official Wellness Partner” of the Brooklyn Nets, a pioneering collaboration in the NBA. This strategic alliance has sparked significant sales growth, with MYND’s unique wellness beverages resonating with health-conscious New Yorkers. Crafted for mental clarity and well-being, MYND Drinks is more than a beverage —it’s a movement towards a more mindful New York.

In addition to expanding distribution across Texas, Louie Louie has won over their hometown of New Orleans with a historic partnership with the 200-yearold Napoleon House restaurant. The Napoleon House, which sells the most Pimm’s Cup cocktails in America, has selected Louie Louie’s Ginger Cucumber to be featured in its first-ever THC Pimm’s Cup, expanding the non-alcoholic cocktails available at the legendary French Quarter destination.

Weed drinks for weed smokers. Drippy is a lifestyle brand culturally relevant to cannabis consumers and already in the hands of artists both big and small, backstage and in the studio and has just launched online with direct-to-consumer at DrinkDrippy.com.

Säti CBD Soda is the first and only Certified Organic CBD Soda in the market. Fresh Thyme and Sprouts are the largest locations selling Säti at the moment with Woodman’s starting up soon.

Flyers Cocktail Co is the world’s most awarded hemp cocktail, with 36 awards across 12 competitions and counting. Crafted by acclaimed mixologist Ivy Mix, Flyers recently closed a round of financing and has unlocked exponential growth (280%) across DTC and in retail, expanding into 10 states with premium distributors, most recently Louis Glunz Distribution in Illinois, and is present in Total Wine & More and other premium on and off-premise accounts.

CQ is the original cannabis drink of California since 2012. A non-alcoholic social lubricant with targeted Sativa, Indica, or Hybrid effects. Contains 5mg of THC, 45 calories, and organic ingredients. For those seeking a bona fide buzz without the alcohol. Today, CQ is on dispensary shelves across the country, and its hemp derived low-dose drink is available in over 200 locations across southern California.

Following its victory in BevNET’s New Beverage Showdown, Calexo’s delicious hemp infused drinks are now available nationwide through major distribution networks. Calexo has been hitting the shelves across the country through its expanding distribution network, notably in Maine, Texas, Minnesota, and Louisiana, with more states and retailers joining the roster daily. Calexo is a social drink set to revolutionize on-premise consumption and will be coming to a bar or restaurant near you soon.

Von Kooi Family Farms launched the nation’s first farm-to-table cannabinoid-based functional beverage line, Creek Water Botanicals. Their hop-waters feature 3 different formulas, each offering consumers a different functional effect with the use of rare cannabinoid profiles and natural botanicals. The company achieved a huge milestone by introducing the first products that contain D9-THC to a 91-yearold beverage distribution company based out of Sacramento, California early this year. Since then, Creek Water Botanicals has become the best-selling CBD drink in natural food stores across Northern California, demonstrating that consumers support high end, craft style, single-origin, full spectrum hemp beverages.

Tam CBD Beverages has launched a new flavor in 2024 just in time for summer: Calmer Palmer, an organic green tea with lemonade that is refreshing and delicious. As with its other flavors, the Calmer Palmer is 100% organic with 30 mg of full spectrum hemp. Tamalpais Beverage Company, based in Northern California, has recently begun distribution in Southern California and the greater Chicago area.

Gold Dust Powders are Powering Innovation from Hydration to Beyond

By Martín Caballero

It’s a good thing that powder drink products don’t take up too much space on the shelf — the category needs all the room it can get.

In this golden age of functional beverages, the driest format may finally be getting its due. Convenience and versatility have always been part of the appeal of the mix-to-drink format, but a confluence of supporting factors – sustainability, variety, a subscription-friendly model and just some good old fashioned cool branding, to name a few – have made powders arguably more attractive than ever, if also more competitive. Whether at Target, Erehwon, online or grab-and-go, powders are powering brands on the quest to capture more consumers.

High On Hydration

In 2024, consumers are looking for hydration anywhere they can find it.

That enthusiasm has lifted the powder category overall: dollar sales for sports drink mixes were up 53% year-over-year through March 26, 2024, with average price increasing 24.2% and volume rising 23.2% during the period. Gains were driven by the strong performance of brands like Liquid I.V. (Unilever) and Gatorade/Propel (Pepsi), but next year’s results may look quite different: several heavy hitters entered the space over the last six months.

These new names – highlighted by Liquid Death, BodyArmor and Electolit – reflect both consumer interest in hydration and the imperative for brands to establish some level of presence in the powder category. Liquid Death’s take has been typically irreverent: Death Dust, currently available on Amazon for $17.99 per 12-count variety pack, adapts three of the most popular flavors from its sparkling waters – Severed Lime, Mango Chainsaw and Convicted Melon – into electrolyte drink mixes. For Electrolit, which is distributed by Keurig Dr Pepper, and BodyArmor, owned by Coca-Cola, stick packs represent a quick route to extending their respective brands’ reach. According to Circana data, BodyArmor has done nearly $2 million in dollar sales since introducing Flash I.V. Hydration Boost sticks in September 2023, while in March Electrolit partnered with 7-Eleven to launch a variety 12-pack of its powders, having debuted the line on Amazon last year.

Don’t forget fast-rising disruptors like PRIME, either. BevNET’s 2023 Brand of the Year has grappled with inventory issues with its RTDs, making the over $54 million in dollar sales from its drink mixes (+791.2% yearover-year, per Circana) all the sweeter. Another all-caps brand, GHOST, is similarly positioned, but its range of powder products is already more robust, covering use occasions from hydration to pre-workout, protein and pump. Its energy drink continues to put up massive numbers, but GHOST’s recent jump into hydration RTDs in 16.9 oz. PET bottles could boost demand for its powder sticks in conventional retailers.

While the category is full of powdered versions of existing RTDs, Austrian brand waterdrop offers a progressive take on what a brand that’s fully committed to the format can become. The company has supported its online sales with the creation of dedicated boutique-style stores in Miami, Los Angeles and the Mall of America (Minnesota), where its complete suite of SKUs and accessories are showcased in attractive displays like makeup or beauty products. But it’s also taking steps towards the mainstream: waterdrop’s recent packaging revamp for its 12-count and 3-count packs is designed to more clearly define its benefits and use cases, an important change as it steps into brick-and-mortar chains like Walgreens, Walmart and H-E-B. The brand’s Microlyte line — boasting a large dose (2 grams) of electrolytes in flavors like Blueberry, Grapefruit and Melon — is expected to drive sales in those retailers.

Optimism around the category’s growth potential may be spreading. After enduring a challenging few years following its IPO, Laird Superfood has stabilized its business in powdered coffee creamers and mixes while

making strides towards profitability under the leadership of CEO Jason Veith. Elsewhere, retired NFL superstar Tom Brady is now in business with beverage kingmaker Mike Repole after the merger of Brady’s TB12 sports nutrition brand, which markets protein and hydration powders, and Repole’s sportswear company No Bull in January.

Functionality Broadens, Premium Emerges

As modern consumers continue to take a more holistic approach towards fitness, nutrition and overall wellness, powder brands are eager to help them at each stop along the way.

That’s one of the reasons why Nutrabolt, maker of the popular C4 brand, took a 20% stake in online supplement business Bloom as part of a $90 million capital infusion in January. With pre-workout and recovery occasions covered by C4 and its other banners (XTEND, Cellucor) in retailers like Vitamin Shoppe and GNC, Bloom’s portfolio — driven by Greens and Superfood lines, the former the top-selling U.S. product in its category — gives Nutrabolt a presence at mass retail chains like Target, which highlighted supplements and hydration as a significant piece of the 1,000 new wellness products introduced to stores in February.

“Nutrabolt wants to build the health and wellness version of The Kraft Heinz Company,” commented Joshua Schall, an industry consultant and BevNET contributor. “While some portfolio expansion might come from internal brand development, I believe most will happen because of accretive deal making that extends Nutrabolt into more key consumer-driven wellness platforms. So, Bloom might mark Nutrabolt’s first minority investment, but I don’t see it being the last.”

That thesis may be playing out at Target, which has made functional powders part of its bid to recruit players from hot wellness segments like non-alcoholic beverages. Even within a category where brands frequently offer similarly positioned products, the retailer has been eager to make space: Canadian supplement maker Blume (not to be confused with Bloom) introduced four SKUs of its organic functional superfood lattes to Target in February before launching a completely new product — SuperBelly, a gut-friendly hydration mix — that same month.

For brands like Blume (4,000-plus U.S. stores), validation at retail proves that digitalnative powder brands can turn their social media traction into tangible gains in accessibility, both in number of doors and ability to stretch across price points. Making its national retail debut in February, California-based brand Clevr introduced smaller 8-count bags of its SuperLattes (Matcha, Coffee, Chai, and Sleeptime) exclusively for Target, priced at $17.99; online, a single 12 oz. bag (14 servings) costs $28 plus shipping.

Powder products also seem to be perfectly suited for the age of TikTok, where sharing different creative use occasions and recipes is a reliable path to going viral. That growing awareness has in turn helped make powders a vehicle to translate niche health trends and ingredients to a wider audience. This year, the influential L.A. natural grocery chain Erehwon’s Tonic Bar locations have teamed with Vital Proteins to integrate its collagen peptides into celeb-approved smoothies like Winnie Harlow’s Island Glow and Hailey Bieber’s Strawberry Glaze. The store was also the launch partner for The Absorption Company, a new company founded by actors Ian Somehalder and Nikki Reed that offers a full range of stick-based supplements – Restore, Energy, Sleep and Calm – differentiated by Capsoil, a proprietary delivery system for liposomal absorption that boosts bioavailability by up to 500%, the company claims. An order of two 7-count boxes (14 sticks total) costs $40 online.

A diversified field means both opportunity and obstacles lie ahead for the category. And among the brands that find success, some will surely start to look beyond powders for sources of further growth. One of those may be Nashville-based BEAM be amazing, which announced a strategic partnership with Dole Food Company in February that will enable the fruit and produce supplier to “further broaden its reach into new categories in the health and wellness sector,” starting with a co-branded version of its popular Super Greens. But BEAM’s latest innovation — Greens On-the-Go in 12 oz. cans, its first RTD — is the one that we’ll be watching a bit closer.

Tiiga is excited to announce the launch of its No Sugar Added Gut Health + Hydration Drink Mix, featuring the nutrient-rich Baobab fruit. Known as the “Tree of Life,” Baobab is celebrated for its high fiber, antioxidants, and essential vitamins, perfectly aligning with Tiiga’s commitment to natural nutrition. This innovative formula offers a unique blend of hydration and gut health support without added sugars, catering to health-conscious consumers. The new product will be available this spring on Tiiga’s website and at select retailers nationwide.

Renude’s Chagaccino has launched in over 25 Bristol Farms locations. Consumers can now purchase the Chagaccino in all Bristol Farms grocery stores, both at the cafe/juice bar or on shelf.

Nuun Hydration, a Nestlé Health Science brand, announced it’s the Preferred Pro-Active Hydration Partner of Orangetheory Fitness. To kick off the partnership, the two industry leaders teamed up to introduce Nuun All Out Orange Flavored Sport Hydration Electrolyte Powder Drink Mix, which hydrates better than water alone. The Nuun All Out Orange Sport Hydration Powder features five essential electrolytes the body needs to perform at its best and 90 percent less sugar than the leading electrolyte drink mix. The new product is available now at select Orangetheory studios, on Amazon, and at nuunlife.com.

AminoLean by RSP Nutrition continues to expand its assortment of pre workout flavors at Target with the launch of new Cherry Lime, which becomes an exclusive for the retailer. Following AminoLean’s proven record success on Amazon, the best-selling pre workout is now primed to be one of the fastest-growing omni-channel brands in the space with distribution in over 15,000 stores including Walmart, Target, Whole Foods, Sprouts, H-E-B, Publix, Meijer, Wegmans and many more.

Waka Coffee & Tea is excited to share its newest tea powder offering: Dissolvable Traditional Chai Powder. This unique blend combines pure tea leaves with natural spices, creating a flavorful chai without artificial additives or preservatives. It’s simple to make, whether you prefer it hot or iced, and allows for personalization with your choice of milk and sweetener. The chai blend is health-conscious, vegan, GMO-free, and has no added gluten, offering about 30 mg of natural caffeine per serving.

TUYYO’s instant Agua Fresca powder drink mixes are now available at 135 HEB locations across Texas and all Town and Country store locations in the Pacific Northwest. Its core lineup will also be expanding by the end of the year with a fresh new flavor.

Just Ingredients has launched singleserving sticks of its community’s favorite electrolytes so they are easily transportable. The single-serving electrolytes are unique due to the 3:1 potassium-to-sodium ratio for hydration without excessive sodium levels. Just Ingredients’ electrolytes are made with all real fruit with no natural or artificial flavors.

In April, drink wholesome will launch three collagen protein powders that adhere to their commitment to simple, sensitive-stomach friendly ingredients. Available in vanilla, chocolate, and unflavored, these protein powders are made with bovine collagen and real foods sweetener from monk fruit. As with all drink wholesome products, they are dairy- and additive-free. Customers will find these new protein powders from drink wholesome on their website and Amazon page, with shipping available throughout the US, Canada, the UK and Australia.

Plink! announced a new line of their award-winning electrolyte tablets that bring fun, fizz and flavor to a category that can take itself too seriously. The first new release since their debut, Plink! Hydration benefits from the addition of Magnesium. On top of that, the world’s best-tasting hydration tablet just got tastier. The new product is available in Watermelon and Pomegranate Berry flavors.

DripDrop released its own line of Zero Sugar Electrolyte Powders. Available in four varieties – Watermelon, Peach, Lemon Lime and Passion Fruit – each single-serving stick pack features a doctor-formulated blend of 330mg of sodium, 185mg of potassium and 39mg of magnesium in addition to Vitamins B and C. DripDrop’s new Zero Sugar Electrolyte Powders are available via the brand’s website for $35.99 per 32-stick pouch.

OCEAN OF OPPORTUNITY: Why Strategics Still Want Water

By Brad Avery

In February, Gatorade set sail into one of the largest yet on-the-surface simplest beverage categories in the market: water.

Gatorade Water made its national debut with a line of 7.5 pH, electrolyteinfused waters intended to play to the brand’s core audience of athletes and active consumers seeking hydration. As Gatorade’s chief brand officer Anuj Bhasin told AdAge at the time of the launch, the company had identified a white space in the existing market for bottled water where a large section of athletic-minded consumers “don’t feel like someone has created a water for them.”

“Water is more than a $25B category today, but we also know that there are tens of millions of consumers not reaching for enhanced water at the store shelf,” Emily Boido, senior director of marketing for Gatorade enhanced waters, told BevNET in an email. “As a brand with longstanding consumer trust and credibility within hydration, we see a strong opportunity to incrementally grow the category in a meaningful way. The water aisle has been missing Gatorade swagger and we’re changing that with our first unflavored water.”

Of course, there’s been no shortage of hydration beverages on the market, as Gatorade’s home set in the sports drink category has seen rising competition from brands like Electrolit and PRIME, while the bottled water category has become a go-to space for consumers seeking healthy hydration to flock to.

According to NielsenIQ, in the 52-week period ending February 24, retail dollar sales of bottled water in the U.S. rose 3.5% to over $19.3 billion. Much of that growth, however, came from a 3.6% average pricing increase across the category as volumes in the period were flat. Measuring the twoweek period, however, sales declines were accelerating, down 1.8% while volumes dipped 2.2%.

It’s a trend that Gatorade’s parent company, PepsiCo, is well familiar with. Gatorade Water, packaged in a clear rPET bottle with stark orange labels, comes in 1 Liter (SRP $2.39-$2.99) and 700 mL sports cap ($1.99$2.69) varieties, is only the latest addition to a rising premium water category from Pepsi, which already competes in the segment with its LIFEWTR Brand and also owns and operates the more value-positioned Aquafina brand.

But water is also a place where PepsiCo is losing ground to chief rival Coca-Cola, whose Smartwater brand has rapidly seized share over the past year. According to Circana, Glaceau – Smartwater’s parent brand –grew retail dollar sales by 14.1% to over $1.3 billion in the 52-week period ending December 31, 2023, representing an 8.29% dollar share of the bottled water category in U.S. MULO and c-store accounts. LIFEWTR, in comparison, grew just 3.3% to around $230.4 million in the same period, a 1.47% category share.

That rise in premium waters coincides with stark declines for each conglomerate’s respective standard water brands, Aquafina and Coke’s Dasani, both of which saw dollar sales shrink 6.9% last year. Using Gatorade for this new launch also chases Coke’s top sports drink BodyArmor, which reported 14.6% growth for its water line last year even as sales of the core hydration drinks have struggled.

According to Neil Kimberley, the former VP of strategy and brand development at alkaline water brand Essentia, rising demand for bottled water has consistently been one of the strongest trends in the U.S. beverage industry for over a decade, suggesting the strategics are right-minded to be focused on growth and innovation in the category.

“The reality is that water is casting a very wide berth and a very long shadow across just about everything now,” Kimberley said. “There are two needstates that are really driving everybody’s growth, and that’s hydration

and energy. And so those are the two overarching things, and the traditional benefits of fun and sociability that carbonated soft drinks have delivered are becoming less valued as people become more functionally oriented.”

A report from Beverage Marketing Corporation found that in sheer gallons of liquid sold, between 2012 and 2022 bottled water grew more than nearly every other liquid beverage category combined at 6.3 billion gallons gained with a 10-year CAGR of 5.3%, versus nearly 6.2 billion gallons for all other categories. Meanwhile, sports drinks grew volumes in the period by around 461 million gallons, a CAGR of 3%.

Beyond Coke and Pepsi, bottled water has been the subject of some serious disruption post-pandemic, from the rise of aluminum-packaging formats to the aftermath of major M&A deals. Over the past year, the results of Nestlé’s 2021 acquisition of Essentia has led to an exodus for much of the team behind that brand’s rise, with many former Essentia executives now boosting independent brands like Eternal Water (which saw its bulk products business grow 50.1% last year).

Other independent brands, such as Hawaii-based Waiakea, have also experienced significant growth – its single-serve offerings were up 44.8% in retail to over $68.6 million in 2023. In an email, Waiakea president and CEO Ryan Emmons credited the growth to “limiting innovation distractions” and prioritizing the brand’s core set, however he suggested the brand needs to “get better” on trade marketing execution, a priority for the next 12 months.

But not all premium players are thriving, particularly

imported brands like The Wonderful Company’s Fiji, which was down -2.9% in 2023. Norwegian import VOSS welcomed back former CEO Jack Belsito as chief executive in Q1 this year, as the brand’s U.S. business suffered during the pandemic.

Then there’s category leader BlueTriton, owner of the former Nestlé Waters regional portfolio, which is now innovating in that aluminum format with a new line of 25 oz. bottles for each of its core brands, including Arrowhead, Poland Spring and Deer Park. The company is also expanding its distribution offerings with brands outside of its ownership, adding L.A. Libations-backed Hawaii Volcanic to its DSD network and ReadyRefresh home and office delivery system this year.

Hitting the Metal

While the advent of aluminum packaging – be it bottles or cans – has been among the most disruptive trends in the category in recent year, from the “Death to Plastic” touting Liquid Death to reusability-minded brands like PATH, plastic has remained the king of the category as the top performers hold to the format.

“I think that the world of aluminum water has promised a lot but hasn’t really delivered anything just yet,” Kimberley said.

However, BlueTriton’s unveiling of its aluminum line at Natural Products Expo West 2024 in March provides some topdown approval for the format. At the show, CEO Joey Bergstein told BevNET that the company views sustainability as vital to its business, and is also working to increase the amount of recycled plastic in its plastic bottles. It’s also partnering with

charities such as 1% for the Planet to improve its environmental bonafides, while reaching out to consumers concerned about the carbon footprint of bottled water.

“We’re really trying to give people options,” he said, adding that aluminum also provides the company with a new way into accounts and regions that have instituted single-use plastic bans.

Nicole Doucet, founder and CEO of aluminum brand Open Water, said she is seeing consumers today embrace her 10-year-old startup not just for environmental reasons, but also for health concerns, citing growing awareness and fear of microplastics present in bottled water.

Open Water produces unflavored still and sparkling waters in aluminum bottles and cans, and has recently made deeper expansions out of on-premise channel accounts and into retail via partners like Whole Foods and Kroger, going from six divisions of the latter retailer to 21 in April. Open Water also recently received an exposure bump on the red carpet with a presence at the Academy Awards in March and is preparing to increase marketing efforts this year to support a broader mainstream push.

NONFLAVORED/CONVENIENCE BOTTLED STILL WATER

Between startups and giants, Doucet said she’s still confident water is a category where multiple brands can thrive, especially as Gen Z has embraced water as a healthy beverage option across formats, from reusable bottles (see the Stanley Cup boom), home delivery (where BlueTriton remains focused) and the metal market.

For Doucet, she said she’s not overly concerned that consumers are still buying plastic bottled products from strategics, arguing that the growing aluminum set is differentiating itself in stores and gaining a larger presence in conventional retail as grocery chains look to embrace sustainable options. Nor is she worried about competition from conglomerates in the aluminum category, suggesting that smaller brands building the aluminum set will have more ground to stand on when it comes to messaging around the key reasons consumers adopt the format.

“These are brands that, in my opinion, do not translate to this type of package,” Doucet said. “I think consumers are craving authenticity, and it is very hard to claim to be sustainable when you build a brand selling billions of plastic bottles.”

SOURCE: Circana OmniMarket™️ Shared BWS - 52 Weeks Ending 02-25-24

ZenWTR is expanding beyond its flagship recycled Ocean-Bound rPET packaging and recently rolled out a 16 oz. recyclable AlumiTek bottle. ZenWTR’s vision is to be the go-to premium lifestyle water brand in sustainable packaging and this new bottle makes it possible for consumers to enjoy the ultra-pure, vapor distilled alkaline ZenWTR they love in an additional sustainable format option.

Susosu Water is in the midst of raising its seed round to facilitate targeted distribution expansion and bolster its ecommerce presence. With recent valuable additions to its sales team, Susosu aims to grow into more than 1,000 doors by the end of the year.

Saratoga Sparkling Spring Water perfectly complements and elevates any occasion with its uplifting bubbles and smooth taste. For over 150 years, the signature blue bottle has delighted palates and plates. This spring water beverage is the consumer choice for curated experiences and exquisite food pairings. Sourced and bottled in the United States.

In its continued commitment to sustainability, Icelandic Glacial is introducing its first ever 100% recyclable aluminum packaging. Perfectly sized for mixers or on the go, the brand’s natural spring water is now available in sleek 330mL cans that come in colorful 10 packs. Icelandic Glacial is available in three globally inspired sparkling flavors, unflavored sparkling, and its signature still water.

Now #WaterTok fans can take their hydration to the next level with all-new Essentia Hydroboost, the brand’s first-ever innovation in the flavored and functional water space. Available in Lemon Lime, Peach Mango, and Raspberry Pomegranate flavors, Essentia Hydroboost is made with no artificial sweeteners, flavors, or colors and contains 30x more electrolytes than the leading premium still water. To celebrate the launch, Essentia is partnering with singersongwriter Tate McRae to give one lucky fan a chance to meet Tate plus two tickets to her first U.S. tour stop, as well as a year’s supply of Hydroboost to help fuel their own ambitions.

HFactor Water is setting new benchmarks in the beverage industry with a bold redesign and enhanced value proposition. Known as the pioneer for its innovative hydrogen-infused water, the brand is excited to announce a comprehensive revamp of its packaging, in-

troducing a sleek, modern design that mirrors its commitment to health and style.

RAIN Pure Mountain Spring Water finalized a national partnership with Hilton Supply Management (HSM) and Sysco to supply sustainable on-premise amenity water nationally. The brand was selected as one of 13 annual “Golden Ticket” winners for KeHE TRENDfinder, gaining instant access to the complete KeHE distribution channel, and has opened key DSD distribution markets in Los Angeles and Central Texas with partners Real Soda and Ben E. Keith.

The Sparkling Ice brand, crafted by Talking Rain Beverage Company, launched Sparkling Ice STARBURST – a new line of delicious Sparkling Ice flavors that capture the taste and vibrant sensory experience of STARBURST original fruit chew candy with zero sugar. This is the first major brand initiative since Sparkling Ice, the No. 1 sparkling water brand in the U.S., launched its “Anything But Subtle” campaign at the start of the year.

Actor Jason Momoa’s water brand Mananalu has announced that its best-selling 22 oz. refillable aluminum bottle format will soon be available in Tahitian Lime and Lilikoi Passion flavors. The new size made its debut at Natural Products Expo West and a nationwide rollout will follow later this year.

Waiakea Hawaiian Volcanic Water has announced the launch of its Nui 1L and Nunui 1.5L OceanPlast bottles at Sprouts Farmers Market. Waiakea is now available at 400+ Sprouts Farmers Market locations across the continental US. Waiakea originates in Hawai‘i through both rain and snowmelt on the pristine peak of the active Mauna Loa volcano, one of the purest environments on Earth.

Perfect Hydration Alkaline Water, the high velocity alkaline water and top-choice hydration option for athletes nationwide, showcased its full portfolio rebrand and new 16 oz. aluminum bottle at Natural Products Expo West 2024. The brand refresh was completed to further exemplify Perfect Hydration’s positioning as the ultimate water option for athletes and those with active lifestyles. The new resealable bottle is a first-of-its-kind SKU that makes it more convenient for consumers to sip on crisp and refreshing water in an infinitely recyclable aluminum package.

Craft Beer Overview:

CRAFT BREWERS GO INTO THE LIGHT...

by Zoe Licata

It's a time when it seems like just about anything can be an alcoholic beverage (Distilled Doritos Nacho Cheese, anyone?), and some craft breweries have embraced the trend, expanding their portfolios with canned cocktails, flavored malt beverages (FMBs) and even bottled spirits.

Just as many, however, are quickly flocking back to the comforts of what is debatably the most traditional beer stateside: light lagers. Yes, the style previously decried by the craft community and labeled “fizzy yellow water” by the movement’s vocal leaders, including Stone Brewing co-founder Greg Koch, has become a focal point for many craft portfolios.

While craft beer enthusiasts and industry members alike have been predicting (and practically begging for) the “year of the lager” for at least a decade, this new focus isn’t exactly in place to demonstrate appreciation for the full-bodied, Germaninspired brews people were envisioning. Instead, it’s a focus on craft’s version of light beers bearing the attributes of major domestic brands: the flavor simplicity of Bud Light, the lower carbs of Michelob Ultra, the low calories of Miller Lite.

More than a dozen breweries launched new light lagers for retail distribution in 2023. In the past six months, even more craft breweries have gotten on board, including New Trail Brewing (State Light), West Sixth Brewing (Sixer Light Lager), 21st Amendment (Amendment Lager) and many more.

Not to be left out, even mega beer companies are playing in the space through their own craft entities. Molson Coors, which owns Detroit-based Atwater Brewery, expanded distribution of D Light earlier this year. Previously, the company sold the Michelob Ultra challenger exclusively at Comerica Park, the home field of Major League Baseball’s Detroit Tigers. Boston Beer Company is also launching its own challenger (more on that later).

Thus far, the financial impact is relatively small: in the last 52 weeks, ending February 24, the craft light lager segment dollar sales increased 13.4% in NIQ-tracked offpremise channels (total U.S. xAOC + convenience + liquor). That’s an increase of more than $2 million in a year, according to 3 Tier Beverages consultant Mary Mills. The average number of light lager items also increased by one in the period, “meaning,

on average, there is one more craft light lager on shelf than there was last year,” Mills said.

Light lagers remain a small portion of total craft beer sales, accounting for 0.57% share of craft beer dollars in Circanatracked off-premise channels in the last 12 weeks (ending February 25). In the last 52 weeks, the style increased dollar sales 0.3%, below growth for pilsners (+2.6%), craft IPAs (+4.9%) and golden ales (+7.1%).

Meanwhile, craft IPAs accounted for 47.12% of craft dollar sales in the period, and the next largest style, seasonals, accounted for 9.11%.

Still, any segment with positive growth is bound to attract the attention of craft producers, after a hard 2023. Craft recorded a 0.9% decline in off-premise dollar sales in 2023, according to market research firm Circana. Volume took an even bigger hit, with case sales declining 4.4%, equating to the loss of more than 5 million cases.

There’s also tempting space available on account of the recent troubles at Bud Light. The Anheuser-Busch InBev’s (A-B’s) stalwart went into a tailspin a year ago following a sponsored social media post by influencer Dylan Mulvaney, a transgender

woman. Anti-trans rhetoric against Mulvaney and Bud Light sparked a conservative-led boycott of the brand and other A-B products.

Still, to date, craft gains from the loss have been minimal. In the last 52 weeks (ending February 25), Bud Light dollar sales in Circana-tracked off-premise channels declined 26% and volume declined 27.9%. A-B’s total portfolio recorded a 12.8% decline in dollar sales and 14.6% decline in volume in the period. So far, however, it is fellow mega beer brands that have benefited from A-B’s declines, including Molson Coors’ Coors Light (dollar sales +14.3%, volume +10.7%) and Miller Lite (dollar sales +10.6%, volume +6.7%).

Sam Wants In

In October, Boston Beer told distributors about the planned launch of Samuel Adams American Light. The 4.2% ABV lager, launching this May, is “not replacing anything, nor is it related to Sam Light,” a 4.3% ABV light lager brand that Boston Beer discontinued “years ago,” according to Samuel Adams senior brand manager John McElhenny.

McElhenny touted the brand’s lower ABV and lower calorie count (115), and highlighted the brand’s image as a “clean, refreshing, easy-to-drink” beer “ready for tailgates, beach days and backyard BBQs.”

“Younger drinkers look for lighter, easier-to-drink beers and Sam Adams sees an opportunity to bring a higher-quality, crisp, sessionable light beer to help make everyday drinking occasions even better,” McElhenny said. “So, our brewers spent countless hours perfecting the recipe to develop this distinctly American light craft lager.”

Five years ago, Boston Beer having a traditional beer-centric innovation wouldn’t have had anyone batting an eye. However, the company has focused much of its recent innovation efforts on ‘beyond beer’ offerings, with 80% of the company’s offpremise dollar sales now coming from Twisted Tea and Truly Hard Seltzer alone, founder and chairman Jim Koch shared during the company’s February earnings call with investors. The other 20% isn’t just traditional beer either, with the portfolio also including Hard MTN Dew, Angry Orchard and canned cocktail offerings from Dogfish Head.

Koch estimated that the “traditional”

part of the beer category overall accounted for about 80% of total beer volume in 2023, and that those offerings declined volume 4%. Meanwhile, beyond beer volume grew 7%, Koch said.

That cooling of the beer market might explain the staging of the rollout for American Light by a company used to launching into a national distribution network. The brand will launch in 12 oz. can 6-packs, 12-packs and draft, initially only in 15 markets to start: Arizona (draft only); Connecticut; Florida; Georgia; Massachusetts; Maine; Minnesota; New Hampshire; New York; Ohio; Rhode Island; Vermont; Dallas, Texas; Pittsburgh, Pennsylvania; and Washington, D.C. National distribution is planned for March 2025.

The move takes note from smaller craft brand launches that have focused regionally, some of which are top brands in the craft light lager segment, including Michigan-based Short’s Brewing’s Local’s Light (5.2% ABV), Boston-based Night Shift’s Lite Owl series (4.3% ABV), and Ohio-based Rhinegeist Brewing’s Cincy Light (4.2% ABV). The latter, created through a name, image and likeness partnership with the University of Cincinnati collective Cincy Reigns, was the “fastest-growing beer that we’ve ever launched,” Rhinegeist CEO Adam Bankovich shared during his December keynote address at Brewbound Live.

“That was not our goal, that’s not what we set out to achieve, but what we did do was lay the groundwork and the foundation and the road map where if this thing was successful, we could scale it and scale it quickly,” Bankovich said.

Cincy Light is now one of Rhinegeist’s main focuses for 2024, with hopes of making the brand “Cincinnati’s light lager brand,” in its home market, rather than the brewery’s full distribution footprint.

This Time is Different, I Swear

This isn’t the first time craft brewers have tried to disrupt the light lager market. As recently as 2018, major craft brands such as Founders (Solid Gold premium lager) were touting light lager additions to their year-round lineups. Participating industry members preach that this time is different. That’s because both brand leaders and new participants that only focus on light lagers are getting into the game and their connection with consumers is showing up in the numbers.

Some of the current top craft lager

brands by dollar sales in NIQ-tracked channels include Garage Beer (acquired from Braxton Brewing in 2023), Farmers Light (Farmers Brewing), Leinenkugel’s Light (Molson Coors), Outlaw (Tivoli Brewing Company), Mountain Jam (Southbound Brewing Company) and Shark Tracker (Anheuser-Busch-owned Cisco Brewers), according to Mills.

Most of the previously mentioned brands are also driving incremental growth for the segment, according to Mills, with Garage Beer and Cincy Light each adding at least $1 million in sales to the segment in the last 52 weeks. Short’s Local’s Light (+$700,000) and Farmers Light (+$650,000) also had significant dollar sales gains in the 52-week period.

“It’s interesting to see how many of these brands are independently owned and solely focused on this light style,” Mills added. “I think they saw an opportunity for a lighter craft option that was lacking in the category, and it seems to be paying off!”

Garage Beer falls into that category. The Midwest light lager brand was founded by Kentucky’s Braxton Brewing, but was spun off into its own company in 2023, with investor Andy Sauer taking over majority ownership. The beer is still brewed at Braxton, but little else still connects the two entities, as Garage Beer focuses on expanding into new markets and building its brand voice.

Garage Beer is 4% ABV, 95 calories and has 4 grams of carbs, with its website touting the offering as “Beer that tastes like beer. Definitely not an IPA.” The company only has two offerings – its original smallbatch brewed light lager, and Lime, the same beer, but with a “hint of lime.”

Sauer’s decision to acquire Garage Beer did not start from an interest in the brand itself, but rather the potential of the segment.

“I think the interest goes back quite a bit further than my interest in the brand, it was very much a category interest,” Sauer said on the Brewbound Podcast last fall. “I love the craft movement for its independence, its focus on quality, but I was always a light beer drinker myself. And it was one of those spaces that just always kind of nodded at me that there wasn’t this independent focus on [a] quality, true light beer brand.”

The increased interest in craft light lagers is consumer driven, according to Sauer, as core craft consumers age out of the

trend of high ABV offerings but still seek the quality and company independence that craft is known for.

“What lager as a category had been forever was just that drinkable beer, that sessionable product that you could buy and have around for everybody at all times,” Sauer said. “And, craft as consumers are aging, as the consumer base that built craft was aging, I think the return to light was somewhat inevitable.”

Craft in Light Clothing

Garage Beer doesn’t necessarily market itself as a craft brand. Its limited portfolio and 12 oz. can 15-packs read more like major national brands, like Coors Light or Miller Lite. And it’s an intentional message that seeks to make the brand more appealing to a wider audience.

“We lean into that [craft] style only insofar as we just want to make the best version of that,” Sauer said. “But how we talk about [Garage Beer] isn’t necessarily in a traditional craft beer kind of way, but more of an old school beer – the way your dad knew beer kind of a way.”

In the 52-week period ending February 24, dollar sales of the original Garage Beer offering have increased 109.6% in NIQtracked channels, an increase of more than $1.1 million. Volume has also increased 104.5% (38,000 cases). Dollar sales for Classic Lime, which launched in 2023, passed $370,000 in the period, with more than 13,000 cases sold.

Garage Beer’s approach mirrors that of Montucky Cold Snacks, the Montanabased light lager brand that blew past 1 million cases in 2023 with just one beer offering. Founded in 2012, the company continues to grow not just in new markets, but “legacy” markets that continue to post double-digit gains, including Texas (+30% through mid-2023), Tennessee (+40%) and Illinois (+20%).

But despite the growth potential, hopping into light lager isn’t a guaranteed success. Even if you have a celebrity backing you.

Eight Elite Light Lager launched in 2022 with the backing of Pro Football Hall of Famer and Monday Night Football broadcaster Troy Aikman. The 4% ABV lager is marketed as a “better-for-you” brand,

with 90 calories and 2.6 grams of carbs, and differentiates itself from Michelob Ultra by being “antioxidant-rich” and brewed without adjuncts.

Eight has intentionally been slow to expand distribution, with Aikman expressing the desire to focus on just Texas for at least the first year. The strategy saw early success: Eight was the fastest independent beer launch in Texas history. By July 2023, in an interview with Yahoo Finance, Aikman said Eight was eyeing Q2 2023 as the time to expand outside the Lone Star State.

However, that expansion didn’t actually hit until late February 2024, and when it did it was just to Oklahoma. While Eight co-founder and CEO Ruchi Desai has shared her vision for Eight to be a national brand one day, the delay suggests that even with strong consumer demand, making your way to the national stage doesn’t happen quickly – especially when Michelob Ultra has 62% of all dollars in the super premium light segment, according to Circana data.

Getting Past Price Barriers

Potentially the largest hurdle for craft light lager brands? Convincing consumers to pay craft beer prices for a product that is known for being cheap and affordable.

Just ask erstwhile hard kombucha and canned cocktail maker JuneShine, which launched Easy Rider American light lager in February.

Easy Rider is available in 12 oz. can 12-packs in limited markets in Southern California, as well as at JuneShine’s tasting rooms in San Diego and Santa Monica. Distribution is planned to expand into Hawaii by the end of March.

Easy Rider “splits the middle” between Coors Light and Coors Banquet in terms of flavor and is 4.5% ABV, according to JuneShine co-founder and CMO Forrest Dein. And the brand is connecting with consumers, gaining 10,000 followers on social media within the first 10 days of launch – an achievement that took JuneShine’s core kombucha offering six months, Dein said.

To stay price competitive, Easy Rider is priced between $15.99 and $16.99, below Constellation’s Modelo Especial, offering a

“more affordable price bucket” option for consumers. In some bars and restaurants, the brand is available for $4-$5 a can, or $24 per six-beer bucket.

JuneShine has brought on celebrity ambassadors to help promote the brand, including Jeremy “Twitch” Stenberg, a California-based X Games gold medalist, and Chad Kroeger and JT Parr, comedians who announced their support for the brand through a mock hat ceremony, ala athletes committing to a college.

“In Southern California, the [beer] market is larger than the national RTD market,” Dein said. “It’s like $2 billion just in SoCal light beer. So it’s a massive opportunity in our backyard.”

The consumer base for SoCal light beers also skews primarily male, a new target for Juneshine, which has traditionally appealed to women. JuneShine plans to just offer the one beer “for as long as we can,” but to add other package size offerings as the brand gains traction.

“It really complements our offerings,” Dein said. “And there’s a lot of people that might not be hard kombucha drinkers that love Easy Rider, and vice versa.

“We don’t know what it’s gonna be like, the future for growth: Is that [newly acquired] Flying Embers, FMBs, hard cocktails, hard kombucha?” Dein continued. “But we want to diversify and keep reaching new consumers.”

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Connecting Nutrition & Health

BENEO Inc.

From energy drinks to protein and meal replacement beverages, low glycemic Palatinose™ (isomaltulose) opens the door to nutritionally optimized beverages. Its slow release of glucose supports blood sugar management while keeping you supplied with sustained energy. Also offered is chicory root fiber (inulin), a proven prebiotic for digestive health and other benefits like weight management.

The BevSource Advantage

BevSource

BevSource is the largest ingredient and packaging distributor exclusively focused on the beverage industry. In addition to supply chain assurance and access to suppliers, we provide beverage development, regulatory compliance, and operations support. With our deep experience in the beverage industry, we're well-positioned to anticipate & navigate growth opportunities and supply chain challenges.

Making Flavor Simple

Callisons

Callisons is on a mission to make the flavor process simple. For over 120 years we have innovated in the market and that journey has brought us to the flavor company we are today. We utilize our experience to proactively bring our partners a personalized flavor experience that meet their goals. Callisons is excited to take on the challenge of developing the perfect flavor for your newest beverage!

Taking Brands to New Heights!

CalNutri, Inc.

From Ideation to Commercialization, the team at CalNutri empowers you to focus on building your brand & distribution, while we focus on your product development, contract manufacturing & supply chain solutions.

Cans Supplied Nationwide

CanSource, a TricorBraun Co.

CanSource is your one-stop-shop for beverage cans. We supply Sleeved, Printed & Brite cans nationwide - call us today to build your supply plan for the year.

Beverages with Benefits

FFP

FFP’s clean label beverage ingredient portfolio provides various functional benefits, all while providing great, refreshing taste. Our functional benefits include immunity support, energy, stress relief, improved cognitive function, and more. From Formula to Final Sip™, we have the ingredients, technology, and expertise to bring a healthy, unique approach to your functional beverages.

Total Fill Line Inspection

FILTEC

Protect the safety of your products with FILTEC. We offer end-to-end fill line inspection solutions for industries that include beer, CSD, spirits, wine, water, and dairy. Our machines inspect glass, PET, metal, and returnable containers for defects, contamination, overfill/underfill, cap and closure defects, pressure and DUD detection, label position or absence, and full case/carton inspection.

Custom Flavor Development

Flavor Dynamics, Inc.

FDI is continuously rethinking the way that flavor creation can be applied to today’s products and technologies. From flavor creation to manufacturing, we are committed to making sure that every step of the process represents consistent reliable quality assurance and food safety. Our library includes clean label, vegan, organic and Non GMO options. Our experienced team is up to any challenge.

The 1 to Choose for Botanical Extracts Bio-Botanica, Inc.

Process Authority for Beverages Caporale Consulting Caporale Consulting

Unique-Innovative-Integrated-Automated Packaging Machinery

Custom Beverage Development

Flavorman

The Beverage Architects at Flavorman are ready to formulate your custom beverage. With over 30 years of technical expertise in beverage development, Flavorman can craft your beverage from the ground up and make it as flavorful as it is functional. Benefit from value-added services and resources designed for your success. Partner with the best in business. Change what the world is drinking.

Real, Natural Ingredients

Florida Food Products (FFP)

Coconut Ingredients

Franklin Baker, Inc.

Franklin Baker, Inc. is the largest processor of coconut ingredients in the Philippines as the premier supplier to the global beverage & food market. Franklin Baker offers an extensive portfolio of coconut products including Coconut Water, Coconut Milk/Cream, Coconut Concentrate, Creamed Coconut. Our extensive third-party certifications are unrivaled to the highest product standards.

Beverage-Ready Possibilities

FutureCeuticals

We design and manufacture case erectors, case packers, case sealers, palletizers, depalletizers, stretch wrapping machines, strapping systems, pallet labeling systems, can ends handling systems, basket loaders/unloaders, and other innovative, integrated, packaging automation solutions.

Customers around the world rely on Clevertech equipment to efficiently handle a wide range of package shapes, sizes, and materials, including bags, bottles, cans, cases, cartons, trays, and many other package designs.

Clevertech provides high-value solutions for customers in the beverage, food, home care, personal care, pet food and can manufacturing markets.

Clevertech North America, a subsidiary of the Clevertech Group headquartered in northern Italy, provides sales and after-sales services and support to the USA, Canadian and Mexican market from its Fort Myers, Florida location.

If you need to package it, Clevertech can produce a machine to handle it. Contact sales.na@clevertech-group.com

With FFP, you can hit your clean-label profile like a natural. Our proprietary natural extraction processes and leading expertise in real-ingredient innovation, formulation, and production will have you brewing up repeat business in no time. You won’t find purer flavors, teas, botanicals, and cold brew coffee extracts anywhere else. Let's get real, natural ingredients working for you.

At FutureCeuticals, we are focused on discovering and delivering new possibilities through plant-based nutrition that positively impacts people's lives. We bring nature and science together through clinical research and ingredient innovation to offer customizable solutions for functional health and wellbeing beverages.

Clevertech North America

Cans You Can Count On

G3 Enterprises

G3, a leading packaging and logistics provider, offers cans and ends with brite cans sold by the pallet and printed by full truckloads. With quick turnaround times, our domestically sourced cans come from various manufacturing facilities: 8oz & 10oz sleek, 12oz std & sleek, 16oz std & specialty sizes: 237ml, 250ml and 330ml. G3 also offers finished good transportation and 3PL warehousing.

OptiATP designed for RTDs

Glanbia Nutritionals

Until now, formulating beverages containing energy-boosting ATP has been a challenge. Standard sources of ATP degrade rapidly under typical high-heat beverage processing conditions and over the shelf-life of the finished beverage. OptiATP provides an optimized form of ATP that remains stable in beverages, allowing you to explore product line expansion into the energy and sports beverage markets.

EXBERRY® Plant-Based Colors

GNT USA, LLC

EXBERRY® by GNT is the leading brand of natural colors for the food and beverage industry. Our colors are non-GMO and derived solely from fruits, vegetables, and edible plants through a process of chopping, pressing, filtering and blending. Our team of technical specialists are available to guide customers through each stage of the formulation and upscaling process.

Natural Health and Wellness

hidell international

Hidell International is a 56 year old, global Bottled Water and Beverage Consultancy. The company specializes in identifying water resources, completing hydrogeological investigations and developing health and wellness ingredient formulations for beverage clients. We have specialized in collagen and energy based products.

Beverage Manufacturing Partnership: Craft Success with Krier Foods! Krier

Over the last two generations, our family-owned company has grown from a sugar supplier to a one-stop ingredient shop. We have 14 distribution centers across the country and manufacture custom ingredient systems at our SQF-certified facility, Aviator. From functional ingredients to custom blends, we have what you need to create successful products.

Mobile Canning Solutions

Iron Heart Canning Co

IHC is your solution to guide you through the canning process! With over 250 million cans filled to date, IHC offers unmatched Experience and Expertise. We service the Eastern US and deliver Quality you can count on – Guaranteed seams, All beverage types, All can sizes, Materials sourcing, & Co-Packaging Partners –whatever your situation we can get your product canned. IHC is your one stop shop!

Clean Label Ingredients

iTi Tropicals

We’re iTi Tropicals, North America’s leading supplier of processed tropical fruit ingredients. Our focus is on coconut cream, coconut water, banana, guava, papaya, mango, passion fruit, mangosteen, acai, acerola, pineapple, and dragon fruit. Our products are natural, GMO free, and produced from fresh, ripe, carefully selected fruit. The products do not contain any artificial colors or flavors.

Flavor & Taste Solutions

McCormick FONA

Consumers today want it all—you’re balancing the demands of great taste, supply chain challenges, regulatory hurdles and consumer acceptance. The experts at McCormick FONA can help. From ideation to launch, we can create a seamless, winning path for you. Design, develop and scale up using our Beverage Innovation Studio in Geneva, IL or Irvine. We’ll bring the best taste solutions to the table.

Flavors Customized for You

Mosaic Flavors

At Mosaic Flavors, we're dedicated to offering liquid and powdered flavors that are as intricately designed as the natural world. As innovation partners, we work in creative concert with you to bring your unique vision to life. We craft one-of-a-kind flavor solutions for your brand. As a trusted partner to some of the world's biggest brands, you can have peace of mind.

Clean & Natural Protection Lanxess Corporation

Looking to safeguard the quality and shelf-life of your beverage and eliminate chilled chain distribution needs? LANXESS Corporation offers two unique and innovative technologies, Velcorin® and Nagardo®, which provide microbiological protection in a wide variety of beverages.

Velcorin® (Dimethyl Dicarbonate) is a cold sterilization agent that kills microorganisms during production, resulting in cleaner and more stable beverages.

Benefits of Velcorin® include:

• No impact on sensory profile

• Clean label solution

• Compatibility with all types of common packaging

• Cost-effective

• Application-specific advice and services from Velcorin® team

Nagardo® (Dacryopinax Spathularia) is a natural guardian that protects against beverage spoilage to secure and prolong shelf life.

Benefits of Nagardo® include:

• Achieve natural & consumer friendly claims

• Efficient control of a broad range of spoilage organisms

• No impact on sensory profile

• Broad application in a variety of beverages

• Easy integration into production process

• Application-specific advice and services from Nagardo® team

LANXESS Corporation hopes to conveniently meet all of your microbiological protection needs with our widely applicable technologies and services.

For more information on Velcorin®, please visit velcorin.com.

For more information on Nagardo®, please visit nagardo.com.

Beverage & Food Development

PTM Food

PTM Food is the ultimate product development and manufacturing support firm that offers unparalleled expertise, creativity, and development services to help you achieve a distinct competitive advantage. We leave no stone unturned in our quest to uncover critical industry insights and develop products that are truly cutting-edge. Our team is more than capable of delivering successful results!

Variety Packs and Warehousing

RAD Packaging

Discover RAD Packaging, your premier destination for variety packs, warehousing, and fulfillment solutions. Based in the heart of Los Angeles, we specialize in crafting solutions for Variety Packs to meet your unique needs. With our centrally located facility, we ensure timely delivery and efficient distribution. Trust RAD Packaging for all your packaging and warehousing needs.

The Best Beverage Labels

Resource Label Group

The best beverage labels carry your brand seamlessly onto your product to give you a recognizable presence on store shelves. We help you create eye-catching labels that survive various environments. Whether you need pressure sensitive, shrink sleeves, tamper evident, extended content, promotional or embellishments, we create labels that hold up and stand out.

Blending and Process Experts

Statco-DSI Process Systems

Statco-DSI is a full-service equipment and integration service provider to the food and beverage industry, with specialties in dry powder mixing, continuous inline blending, as well as de-aeration and carbonation. Operating from 11 offices coast-to-coast, we are able to assist with all of your beverage processing requirements.

Partnership Makes all the Difference

Sensient Flavors & Extracts

Packaging Expertise You Can Trust With Your Craft

Sensient Flavors and Extracts offers value-added flavors, systems and extracts that bring life to products. We inspire our customers to deliver products that offer multi-sensory experiences that are “just picked from nature.” Thanks to our wide-ranging of products, development teams and cutting-edge facilities, we’re able to implement thoughtful solutions for complex challenges. With industry-leading expertise in the savory, beverage and sweet markets, we provide comprehensive solutions that meet our customers’ flavor, color, and functionality requirements.

At Sensient Flavors & Extracts, we use our advanced proprietary development technologies to create fresh, unique flavor systems. Additionally, we have a complete line of masking & flavor boosting technologies. Particularly in beverage, we have a TrueBoost portfolio that enhances mouthfeel & creaminess, and a natural extract portfolio from named sources.

We are experts in the science, art and innovation of taste. We are market-savvy influencers, grounded in facts and driven by the needs & occasion of our consumers. We are problem solvers, and you are what makes us a collaborator, and a true partner. Together, we can solve the most challenging product puzzles and together, we can make products that are delicious, craveable and truly inspired.

Mastering the Craft of Flavoring

Saxco is a full-service packaging solutions supplier. We have served the distiller, wine, and craft beverage community for more than 90 years, combining our expertise, passion, and commitment to your success with modern packaging technologies. We are uniquely positioned as your single source supplier, offering standard glass bottles and cans to fully proprietary packaging solutions, and in-house services ranging from artwork management, can sleeving, fully automated pack-outs, and more. We leverage a world-class global network of manufacturers to give you the surety of supply you can depend on. And with inventory planning and management, and flexible contract and credit terms, we make it easy to scale your business. Contact us today to receive a FREE consultation from a dedicated packaging expert.

Saxco

Sovereign Flavors Inc.

Custom Flavor Creation for Functional Beverages

Full Solution Powdered Beverage Manufacturer

The Jel Sert Company

Upcycled Organic Ingredients

State Garden/Olivia's Organics

From the same brand you trust for your salad needs comes a line of beverages featuring upcycled veggies. Pressed in New England, they're sustainably made. Rather than send excess greens from salad production to the landfill, we press kale, spinach and celery. In addition to our line of bottled juice for retail, we offer bulk organic or conventional in 5-gallon pales and 55-gallon drums.

Fruit & Vegetable Ingredients

Stiebs

Stiebs, since 2005, has been devoted to sourcing, processing & delivering the world's finest plant-based products. We offer a full line of fruit & vegetable based ingredients as Single Strength Juice, Juice Concentrates, Purees and IQF Cubes. From the beginning stages of product development to delivering an on-going supply of premium natural products, our team is here to help you succeed.

Sweeteners & Vitamin C

Suzhou-Chem Inc.

Suzhou Chem, a US importer and distributor of 24 years, serves food and beverage industry with a diverse range of Vitamin C, Sweeteners (sucralose, aspartame, ace-k, stevia, monk fruit, organic sugar); acidulants (citric acid, fumaric acid); flavors, caffeine, and more, ready to ship from our network of 8 warehouses across the US and Canada. Contact us for details.

So-Cal Distribution Solution

Tenace Incubation

Tenace Incubation acts as your supplier rep and at the same time is a full service DSD distribution partner in Southern California.  For the last eight years, we have been working with new brands to prove concept; working with existing brands wanting to get started and working with brands that already have distribution in KeHE or UNFI and looking for a solution to fill in the voids in the market.

The Formulation Experts

Trisolutions

Trisolutions is the top choice for all your beverage development needs. Your project will benefit from our extensive expertise in all beverage categories. In our applications laboratory, our team of food scientists will develop your initial concept into a commercial reality including full scale production support. Reach out to us to find out how we can provide the solution you are looking for.

Vitacyclix, division of MORRE-TEC has a unique technology for the production of water soluble formulations for fat soluble vitamins, which can help in creating cutting edge supplements and fortify dairy products, functional beverages as well as other food and nutritional applications that meet the latest consumer trends in the market.

A complete selection of vitamins, minerals, bioflavonoids and proteins as well as both vegan and kosher options are available. We welcome the opportunity to develop custom formulations of blends for your specific needs.

For any questions or inquiries please visit our website, www.morretec.com; call 908-688-9009 or email sales@morretec.com

A. Holliday & Company Inc.

Abelei Flavors

Christine Renken Toronto - (416) 225-2217 teacoff.com

Mike Allegretti North Aurora IL (630) 859-1410 abelei.com

Ablis Functional Infusions - Bend OR (458) 227-6131 ablis.shop

Acid Rain Water

Terry Sperstad Newport Beach CA (888) 399-0799 acidrainwater.com

Allen Chuang Pocas International Corp South Hackensack NJ (201) 941-7900 pocas.com

ALO Drink (by SPI West Port)

Amaz

Ardor Organic, Inc.

Artemis International, Inc.

Axiom Foods

AZ Laboratories LLC

Babe Beverages

BCC Innovations DBA Hectare's

BENEO Inc.

Berlin Packaging

ALO Drink So. San Francisco CA (650) 616-7777 alodrink.com

Gustavo Nader Santa Monica CA (310) 310-0672 liveamaz.com

Allison Wilson Napa CA - ardororganic.com

Randy Kreienbrink Fort Wayne IN (260) 436-6899 artemis-nutraceuticals.com

Kay Abadee Bell Canyon CA (818) 266-2461 axiomfoods.com

Susan Vu Tempe AZ (480) 955-9870 azlaboratories.com

Caroline Pavan San Diego CA (858) 886-9397 babekombucha.com

Jeff Stum

Louisville KY (812) 250-2675 hectares.com

Kyle Krause Morris Plains NJ (973) 867-2143 beneo.com

Jason Loper Chicago IL (312) 607-6642 berlinpackaging.com

BevSource - Saint Paul MN (866) 956-4608 bevsource.com

Bio-Botanica, Inc.

BLUE BEAR

Boxed Water

BREZ

Bucked Up

Callisons

CalNutri, Inc.

Kathy Bittner Hauppauge NY (631) 840-3179 bio-botanica.com

Alex Vialy

Encino CA (818) 208-2622 bluebear.com

Robert Koenen Holland MI (616) 856-0558 boxedwaterisbetter.com

Travis Duncan West Palm Beach FL (310) 800-4852 drinkbrez.com

Ryan Gardner American Fork UT (801) 358-3572 buckedup.com

Justin Biza Olympia WA (360) 790-2160 callisons.com

David Ackerman Phoenix AZ (209) 605-3313 calnutri.com

Cann Autumn Portka Los Angeles CA (718) 708-1087 drinkcann.com

CanSource, a TricorBraun Co.

Caporale Consulting

CFT Packaging USA

Cheech and Chong Global

Robert Renfro - - (833) 228-3959 cansource.com

Mark Caporale Middletown CA (707) 987-9703 caporaleconsulting.com

Amanda Podwinski Vernon Hills IL (847) 247-0233 usa.cft-group.com

Cinda Thieling Salt Lake City UT (801) 660-5303 cheechandchong.com

CLEVERTECH - - - (239) 301-4445 clevertech-group.com

Coco5 Scott Sandler Phoenix AZ (312) 243-1115 coco5.com

CocoLoveWater.com

Crunchy Hydration

Drippy

Dry Liquid LLC

Electrolit USA

Enesis

Equo Bev LLC

Factory6

FFP

FILTEC

Flavor Dynamics, Inc.

CocoVinny Zaldivar Las Vegas NV (702) 400-6609 CocoLoveWater.com

Megan Riggs Virginia Beach VA (757) 362-1607 crunchyhydration.com

Drippy Soda Los Angeles CA (503) 329-2315 DrinkDrippy.com

Curt Canales Irvine CA (714) 356-7878 Hangoverwater.com

Elkin Vasco Houston TX (713) 835-7545 electrolit.com

Michael Pizziment - - (917) 747-6263 -

Tariq Coles - - (305) 798-5497 -

Nate Farnsworth American Fork UT (385) 387-1040 factory6mfg.com

Nina Hughes - - (224) 301-0790 floridafood.com

Filtec Sales Torrance CA (194) 946-6847 filtec.com

Colleen Roberts South Plainfield NJ (908) 822-8855 FlavorDynamics.com

Flavorman Spencer McGuire Louisville KY (502) 289-5549 flavorman.com

Florida Food Products (FFP)

Foodarom

Fortis Solutions Group

Franklin Baker, Inc.

Kelsey Anderson Lake Mary FL (855) 337-1633 floridafood.com

Vanessa Chartrand - UT (801) 975-2604 foodarom.com

Marygrace Quigley Phoenix AZ (480) 594-3531 fortissolutionsgroup.com

John Slade Memphis TN (901) 881-6681 franklinbaker.com

FS Drinks Kai Pan Los Angeles CA (909) 348-2273 fsdrinks.com

FutureCeuticals

G3 Enterprises

Glanbia Nutritionals

Gleem

GNGR Labs, Inc.

GNT USA, LLC

Golden Nest

Charlie Lockwood Momence IL (888) 452-6853 futureceuticals.com

Catlyn Dzioba Modesto CA (209) 480-4124 g3enterprises.com

Rachel Schreck Carlsbad CA (206) 787-2765 glanbianutritionals.com

Jimmy Sun San Diego CA (615) 945-1587 drinkgleem.com

Namik Soltan Brooklyn NY (347) 294-9193 gngrlabs.com

Jeannette O'Brien Dallas NC (704) 469-5555 exberry.com

Imelda Veharanta Rancho Cucamonga CA (626) 574-1719 goldennestcoffee.com

Goldthread Tonics Lindsey Hurtt White Plains NY (562) 400-8270 drinkgoldthread.com

GOOD IDEA Stephanie Duncan Cotre Madera CA (424) 209-5708 goodidea.us

Gorilla Mind

Brian Cavanaugh Boise ID (412) 874-7003 gorillamind.com

Graasi Carrina LaCorata - - (803) 517-4085 graasi.com

Grim Reaper Coffee Company

Guayaki yerba Mate

GYM WEED

Health-Ade LLC

hidell international

Hike Hopped Seltzer

Hoplark, LLC

HOWDY

Husch Blackwell

IFPC

Iron Heart Canning Co

iTi Tropicals

Karma Water

KELIA

Kenetik

Koe Organic Kombucha

Sam Mandracchia Salem MA (978) 729-7264 grimreapercoffee.com

Thomas Simon Los Angeles - (650) 450-0017 guayaki.com

John Blair Benicia CA (925) 708-4464 gymweed.com

Hillary Hall Torrance CA (844) 337-6368 health-ade.com

henry hidell Hingham MA (781) 749-8040 hidellinternational.com

Ryan Coleman Richmond VA (540) 808-8198 hikehoppedseltzer.com

Toni German Boulder CO (720) 224-6779 -

Ryan Soroka - TX (713) 397-0072 Siphowdy.com

Megan Beebe Denver CO (303) 749-7237 huschblackwell.com

Mathew Brady

Fenton MO (800) 227-8427 ifpc.com

Roger Kissling - - (908) 619-5449 ironheartcanning.com

Kyra Appleby Lawrenceville NJ (609) 987-0550 ititropicals.com/freesample

Brad Coleman Pittsford NY - drinkkarma.com

Sarah Patel Wayland MA (617) 519-9411 keliadrink.com

Kenetik Sales

Fulton MD (202) 321-0862 drinkkenetik.com

Jared Smith Vernon CA (310) 251-9615 drinkkoe.com

Koia - Los Angeles CA - drinkkoia.com

Krier Foods

Lanxess Corporation

Zach Malin Random Lake WI (920) 994-2469 krierfoods.com

Michael Turpin Pittsburgh PA (817) 357-5851 velcorin.com

LILY Gabrielle Perez New York NY (917) 853-8705 Drinklily.com

Lindenmeyr Munroe

Lithios Beverages Inc.

Little Saints

Lotus Lifestyle LLC

MATCHA.COM

McCormick FONA

Melting Forest, Inc.

Mitra9

Chris Oppito Teterboro NJ - LindenmeyrMunroe.com

Tina Genzer Nakusp - (201) 465-4242 drinklithios.com

Katie Green Miami FL (509) 720-1511 littlesaints.com

Scott Strader South Jordan UT (888) 702-5584 lotusenergydrinks.com

Team Matcha Tucson AZ (520) 273-2110 matcha.com

John Fishel Geneva IL (630) 578-8638 fona.com

Sean McDonald Dover DE (951) 444-7332 -

Karli Vasquez Fort Myers FL (239) 222-9129 mitra-9.com

Monin Monin Customer Service Clearwater FL (727) 461-3033 monin.com

MOR Kombucha

Mosaic Flavors

MUD\WTR

NEXIRA

Odyssey Wellness LLC

OLIPOP

Once Upon A Coconut

Packaging Options USA

Rob Spiewak Denver CO (720) 665-9596 morkombucha.com

Crista Righi Chino CA (714) 283-5287 mosaicflavors.com

Andrea Madero Santa Monica CA (650) 804-3376 mudwtr.com

Franck Gillet - - (908) 707-9400 nexira.com

Marc Shuster Fort Lauderdale FL (916) 220-3500 odysseyelixir.com

Leah Dockstader Oakland CA (949) 525-3698 drinkolipop.com

Marc Sampogna Orlando FL (646) 767-6576 onceuponacoconut.com

David Goldman Concord CA (800) 337-9630 Packagingoptionsusa.com

PakTech - - - (541) 461-5000 PakTech-opi.com

PATH

Perfect Hydration

Pizzey Ingredients

PLAYR1

Positive Beverage

Pretty Tasty Tea

PTM Food

PureJoy Drinks

RAD Packaging

Rambler Sparkling Water

REDCON1

Resource Label Group

Rexis Biotech Inc.

RFC Wire Forms Inc

Shawn Richmond Fremont CA - drinkpathwater.com

Jared Smith Vernon CA (310) 251-9615 perfecthydration.com

Mary Ekman - - (651) 797-3168 pizzeyingredients.com

AJ Foppe

St. Louis MO (314) 897-5777 playr1.com

Zach Muchnick Newport Beach - (856) 979-2093 PositiveBeverage.com

Cassidy Meyer New York NY (718) 701-4460 prettytasty.com

Don Rodgers Wall Township NJ (888) 736-6339 ptmfood.com

Madison McLeary West Palm Beach FL (561) 613-5773 drinkpurejoy.com

Alexander Said San Fernando CA (661) 992-2252 radpackaging.com

Dave Mead Austin TX (512) 657-2726 ramblersparklingwater.com

Gene Bukovi Boca Raton FL (954) 279-3131 redcon1energy.com

Kody Swaim Franklin TN (888) 526-8177 resourcelabel.com

Mark Flores - FL - letsgetsquared.com

Sales Ontario CA (909) 984-5500 rfcwireforms.com

Rowdy Mermaid Arielle Madilian Boulder CO (303) 396-0498 rowdymermaid.com

Saxco - - - (877) 641-4003 Saxco.com

Sensient Flavors & Extracts

ShineWater

Shrubbly -- Hinesburg, Vermont

Sovereign Flavors Inc.

Statco-DSI Process Systems

State Garden/Olivia's Organics

Stiebs

Suzhou-Chem Inc.

T. Hasegawa USA

Tenace Incubation

The Jel Sert Company

Trisolutions

Rob Babikan

Hoffman Estates IL (847) 558-0427 sensientflavorsandextracts.com

Clare Verdery Bay City MI (312) 543-0521 shinewater.com

Matt Sayre

Hinesburg VT (802) 343-6482 shrubbly.com

David Ames Santa Ana CA (714) 437-1996 sovereignflavors.com

Randy Smith Huntington Beach CA (714) 375-6300 statco-dsi.com

Mark Pins Chelsea MA (508) 269-2868 oliviasorganics.org

Brian Nova Madera CA (559) 661-0031 stiebs.com

Michael Zhai Needham MA (781) 752-9135 suzhouchem.com

Douglas Resh Cerritos CA (562) 302-5492 thasegawa.com

Ken Tenace - - (909) 486-0459 tenaceconsulting.com

Kyle Harrington - - (630) 818-7374 jelsert.com

David Neely

Vancouver - (778) 381-6060 trisolutions.ca

True Nopal Cactus Water - Scottsdale AZ (480) 636-8044 truenopal.com

Uncle Matt’s Organic

Glen Garrity

Clermont FL (352) 394-8737 unclematts.com

UPTIME ENERGY - Van Nuys CA (800) 441-5656 uptimeenergy.com

Vitacyclix, Div of MORRE-TEC

Von Kooi Family Farms

Wherehouse Beverage Co.

WTRMLN

XL Energy Drink Corp

Zion Packaging

Maria Jewelyn Mendoza Union NJ (908) 922-4409 morretec.com

Kris Kooi Chico CA - creekwaterbotanicals.com

Casey Coughlin Pennsburg PA - drinkwynk.com

Caroline Kibler Atlanta GA (917) 533-1945 wtrmlnwtr.com

Maja Leitner New York NY (212) 594-3080 xl-energy.com

Gary Martin Corona CA (949) 842-1458 zionpack.com

Electrolit Serves the 2024 Miami Open Presented by Itaú as Official Hydration Sponsor

Electrolit – the preferred, premium hydration beverage made from pharmaceutical quality grade ingredients – was the official hydration beverage of the prestigious 2024 Miami Open presented by Itaú, taking place from March 17 - 31.

“Being part of the Miami Open presented by Itaú with world-class tennis on display is history in the making for Electrolit,” said Jake Sloan, Electrolit USA’s Sr. Marketing Director. “As a brand deeply invested in promoting active lifestyles and hydration among athletes, fitness enthusiasts and everyone else in between, Electrolit will be a welcomed refreshing presence as hundreds of thousands of fans gather to experience everything the Miami Open has to offer, both on and off the court.”

The Miami Open, known for its history of showcasing elite tennis talent and attracting a global audience, provided an ideal platform for Electrolit to support the sport and the tennis community in Miami, according to the company. This sponsorship represents Electrolit’s commitment to advanc-

ing sports and supporting organizations that build the passion of sport in their community.

“We are delighted to welcome Electrolit as a premier sponsor of the 2024 Miami Open presented by Itaú,” added Josh Ripple, SVP of Tennis Events at IMG. “Providing proper hydration is pivotal for the players competing and we are proud to showcase and offer Electrolit as part of the Miami Open experience.”

Olivia Culpo and Christian McCaffrey Unite Their Star Power for The First Time in Bodyarmor Zero Sugar Campaign

BODYARMOR ZERO SUGAR has unveiled its first-ever marketing campaign in partnership with Olivia Culpo. Olivia will be featured alongside her fiancée and longstanding BODYARMOR partner, Christian McCaffrey in a new campaign that gives a glimpse into their life as a couple and how they have “Zero to Hide.”

The campaign spot will showcase a humorous banter between the couple as part of their loving and spontaneous relationship as Christian welcomes Olivia to Team BODYARMOR. Through “Zero to Hide,” BODYARMOR ZERO SUGAR will also highlight its key attributes of being a premium sports drink with zero sugar and zero grams of carbohydrates – and no artificial sweeteners, flavors, or dyes, and no compromise on the taste.

“The newest BODYARMOR ZERO SUGAR campaign is a

lighthearted way to show how Christian and I have ‘Zero to Hide’ in our relationship,” said Culpo. “We are both into wellness and taking care of our bodies, so being in this campaign together with BODYARMOR was an easy choice. Christian and I have always had BODYARMOR around and we’re loving their latest innovation with ZERO sugar and ZERO grams of carbs. I’m so excited to be a part of this campaign.”

BODYARMOR ZERO SUGAR was launched earlier this year in response to the growing demand for better-for-you products. Over the past decade, there’s been significant growth in low-calorie innovation and while there are other ZERO products out there, BODYARMOR ZERO SUGAR will fill a gap that currently exists in the segment as the ONLY sports drink that has zero sugar and is made with no artificial sweeteners, flavors or dyes.

“The launch of BODYARMOR ZERO SUGAR has been our biggest innovation to date, which is a huge deal for us and quite frankly the ZERO sugar category. To match up with the promise of this new product line, we wanted to bring in new influential talent that felt authentic, and Olivia Culpo was top of mind for us,” said Tom Gargiulo, BODYARMOR Chief Marketing Officer. “Through our longstanding partner, Christian McCaffrey, we knew that Olivia was already a supporter of our brand and products, so partnering with her in an official capacity was natural and gave us an opportunity to create something really fun!”

The campaign will go live nationally across streaming CTV and audio platforms, digital, social and programmatic, and will be amplified via OOH media, retail activations, and sampling events in local markets across the U.S. throughout 2024.

HOIST IV-Level Hydration Named Official Hydration Partner of WarriorWOD

HOIST, one of the fastest growing hydration beverages in the U.S., is thrilled to announce its latest partnership with South Carolina based WarriorWOD– a leading nonprofit organization dedicated to helping veterans recover from PTS and other invisible wounds through exercise, nutrition and mentorship.

WarriorWOD offers veterans a prescription for recovery by providing transformative resources including gym access, personalized nutrition coaching and ongoing mentorship to veterans. Through this method, WarriorWOD has seen incredible results. Veterans in its program have seen a 29% decrease in post-traumatic stress symptoms. Every WarriorWOD contribution plays a pivotal role in supporting veterans on their journey to recovery and success. Its mission and approach align seamlessly with HOIST’s commitment to promote healthy lifestyles and

support members of the U.S. military–making this a fitting partnership.

“We are thrilled to announce that WarriorWOD has partnered with HOIST to bring top-tier hydration to our nation’s bravest,” said WarriorWOD President and Executive Director Phil Palmer. “As we continue to help veterans overcome their invisible wounds through exercise and nutrition, integrating HOIST into our programs adds an extra layer of support. This isn’t just about quenching thirst; it’s about providing the best in

hydration to our veterans as they move through their recovery journey.”

In this strategic partnership, HOIST will provide vital support to WarriorWOD’s initiatives by offering hydration resources and contributing to the overall well-being of veterans participating in the program.

“We are honored to join forces with WarriorWOD in its mission to revolutionize veteran recovery and provide support for invisible wounds,” said HOIST Director of Business Development Rachel Trotta. “This partnership aims to make a meaningful difference in the lives of those who have served our country.”

As the official hydration of the U.S. Department of Defense, HOIST is proud to continue to show its support to U.S. servicemen and women and to create a positive impact on the lives of veterans–empowering them not only to recover, but also to thrive in their post-military journey.

RECOVER 180 Announces Partnership With NCAA Star Jared McCain Ahead of March Madness

RECOVER 180, a new organic hydration sports drink from veteran beverage entrepreneur Lance Collins, is thrilled to announce its partnership with Duke University Basketball guard, Jared McCain. This partnership solidifies RECOVER 180 as McCain’s exclusive hydration choice to stay gameday ready during one of the most electrifying times of the year in college basketball, when athletes push their limits and fans are on the edge of their seats.

Recognizing the significance of proper hydration in achieving optimal performance, RECOVER 180 is proud to join forces with Jared McCain, a beacon of excellence both on and off the court. RECOVER 180’s lineup of mouth-watering flavors is designed to replenish and revitalize the body, providing balanced hydration and essential nutrients to support an active lifestyle. With its premium USDA organic ingredients and great-tasting formulation, RECOVER 180 stands out as a trusted companion for those seeking to achieve peak performance and recovery, and who demand more out of their sports drinks.

“I am thrilled to partner with RECOVER 180, an amazing brand with an excellent product lineup, especially during this time of year for college basketball,” said Jared McCain. “As athletes, we understand the importance of staying hydrated, only consuming the best products, and maintaining our bodies at their peak levels. I look forward to working with RECOVER 180 to encourage others to hydrate better.”

McCain joins an all-star roster of athletes who back RECOV-

ER 180, including NBA MVP James Harden, LA Lakers’ Austin Reaves, Denver Nuggets’ Michael Porter Jr., the PGA Tour’s Wyndham Clark, NFL greats including Rob Gronkowski, Drew Brees, John Elway, and Michael Strahan - a lineup that will continue to grow.

“We are excited to partner with Jared McCain to not only celebrate the spirit of March Madness but also to encourage individuals to seek out the best in their performance drinks,” said Lance Collins, CEO of RECOVER 180. “Jared’s commitment to excellence and his passion for the game resonate deeply with RECOVER 180’s mission to empower individuals to live healthier, more active lives.”

As the anticipation for March Madness builds, together RECOVER 180 and Jared McCain aim to encourage individuals to demand the best out of their sports drinks. Together, they also invite followers to join the RECOVER 180 MARCH MANIA giveaway, giving consumers the opportunity to win prizes such as a 1-year supply of RECOVER 180, a branded mini-fridge, signed merchandise and plenty more! Fans should follow RECOVER 180 on Instagram at @drinkrecover to learn more.

This partnership announcement and money-can’t-buy giveaway comes at the start of March Madness, where Jared will be a prominent figure as a starter for the Duke University Blue Devils. RECOVER 180 and McCain will continue to collaborate year-round on exclusive and exciting promotions for fans and consumers.