On the Move
The First Drop
By Jeffrey KlinemanBoffo Box Office, But What About the Beans?
With respect to celebrity coffee brands, we are all Vladimir Ivanov now.
Who in the name of Krampus’ barn is Vladimir Ivanov? He’s a fictional Russian saxophone musician, played by Robin Williams in the early 1980s low-key chestnut “Moscow on the Hudson.” Ivanov defects to America while on a goodwill tour, and freaks out at the abundance of the American supermarket while on a grocery trip. The trigger? Coffee brands. Trying to make a choice – the first time he’s ever been able to do so around coffee – his hands go to his face, he mutters to himself with his Russian accent, louder and louder, finally shouting: “Coffee. Coffee! COFFEE!” while pulling boxes from the shelves, crazed and afraid.
It’s a funny scene, but it’s getting sad, because at this point, it’s as if every agent and talent manager in the world heard Ivanov’s cry, only they mixed it up with an order. And they decided that their clients are just the ones to satisfy that order.
In the past couple of years, we’ve seen a rainforest of celebrity coffee brands, either invested in, named for, or otherwise prominently associated with everyone from Robert Downey, Jr., Emma Chamberlain, Tom Hanks, and Korn to Hugh Jackman, Jimmy Butler, Snoop Dogg (didn’t last long), and Jadakiss. There has been coffee from singers Ghostface Killah and Machine Gun Kelly, some gamer named Jacksepticeye, the preppie designer Ralph Lauren, and the weirdo auteur David Lynch. Earlier this year, there was a feud at television’s 6666 ranch, when Yellowstone showrunner Taylor Sheridan’s coffee brand, Basque Ranch, sued actor Cole Hauser’s brand, Free Rein, over IP infringement. Sue ‘em, Cowboy!
The day before I wrote this we were looking at two new introductions: Throne Sport Coffee (I’ll be the one to say it: the brand name is rather… evocative) from Chiefs’ QB Pat Mahomes and BodyArmor veteran Mike Fedele, as well as Rudy Coffee – and no, not the football movie “Rudy” (he already had a sports drink, by the way) but beans licensed with the inspiring image of indicted political gremlin Rudy Giuliani.
Creating a more exhaustive list - because you can - is enough to cause one to down a bottle of celebrity tequila, which may be the only product category that is potentially more significantly star-splashed than coffee.
At a recent beverage industry event, as I watched a panel on celebrity-based branding, it occurred to me: if the first 20 years of this century were defined by an evolution in food and beverage brands toward healthy lifestyles, the next 20 years are likely to be marked by a makeover of grocery aisles by casting directors rather than category captains. Investors, manufacturers, and even retailers seem fully sold on the idea that a few thousand TikTok or IG followers can light a brand on fire, regardless of its other qualities. Soon, you won’t decide on brands by their calorie content, but by their Q rating. Is this really our trip to Flavortown? Unless the coffee actually tastes like Cole Hauser, how much should anyone care?
Of course, to slip the accusation that these folks are simply shilling to extend their financial footprints, we keep hearing about the passion that these founders have, not just for their brands, but for the product types themselves. How they have practiced,
refined palates, exquisite sensory awareness, deep interest in the business, respect for the hard work that goes into brand building, and are involved every step of the way. I don’t doubt that’s the case for some of these “celebrepreneurs,” but it’s a formula of attestation that’s been repeated so often, by so many of them, that it’s clear that it’s just not the case: after all, movies and TV shows are still getting made, Mahomes is in training camp, and Rudy’s still on the lam. If these celebrities were all that fully invested, our collective national entertainment menu would be reduced to “Diff’rent Strokes” reruns.
I understand the reasoning. People have pulled it off a few times. Vitaminwater was able to really accelerate with 50 Cent as a celebrity investor, and the idea of him developing his own variety supercharged interest in the brand. George Clooney did make a lot of money off his tequila. And yes, I do believe that Emma Chamberlain truly loves coffee and is a generational avatar for her fans to the point where it seems like a logical outgrowth.
I also understand the enthusiasm. One thing about entrepreneurs – they are incredible supporters of the ideas that brought them to the table. I’ve seen founder after founder not just swear, but swear to the life-changing attributes of their products. Athletes, with their incredible drive to win, and celebrities, with their practiced ability to play a role, are great partners as founders in that regard. The confidence, aura, personality can provide a lot of the swagger of inevitability when they put their names or signatures on a can. The problem is, athletes lose a lot, celebrities pick bad roles, sing crappy songs, and don’t always know their roasts or their beans. Of course, they are passionate and as capable of succeeding at a side gig as the rest of us. But so many entrepreneurs have learned that their product isn’t what they say it is but what the consumer interprets it as being; for them, that celebrity tie-up may actually constrict brand development.
I have, of course, interviewed my share of celebrities who are working with brands in a variety of roles over the years; some have been delightful and insightful, some have been dull and rote, but it’s always been something I’ve approached a little warily (too warily, in the eyes of my bosses, who are rightfully aware that they do sell tickets). I’ve seen what they add to the room from an entertainment, energy, buzz standpoint. Some are terrific business people who just happen to inhabit the body of a minor deity, and who really do have a nose for coffee, tea, tequila, or whatever else they’re selling. But an organic fit isn’t always easy, and that’s why you see so many flash-in-the-pan arrangements, short-term cash grabs that are dreamed up and packaged with the same marketplace logic that puts stars and directors together with producers to justify massive budgets that nevertheless result in a total flop.
But that’s also, in a way, why the celebrity game is so fascinating: we can speculate how far that elite aura extends into the marketplace, and how the celebrity will react if they face the same execution challenges that vex every founder, famous or not.
At this point, however, it might be time to think of a new strategy, before we’re all paralyzed at the cooler, looking at all the different showbiz faces, overwhelmed by the fame, muttering to ourselves in our own panicked accents.
By Barry Nathanson Publisher Toast
AriZona Never Disappoints
In May, I took a trip to the land of AriZona Beverages. It is a drive out to Long Island I’ve taken dozens of times in my 32 years of chronicling the business. AriZona started around the time I came into the industry. I met Don Vultaggio early in my career, and it was the start of a friendship that has endured for all these years and is just as strong today. In those early days, were both novices in the world of soft drink marketing. Don came from the beer wholesaler’s universe and I had been the publisher of a trade magazine about cosmetics and fragrances.
From the first meeting, I was intrigued by the brand and their vision. They saw the success of Snapple and said “It can’t be so hard, the marketplace has room for many other brands, so let’s jump in.” Don and his thenpartner, John Ferolito, took a leap of faith in launching AriZona and never looked back.
They went against conventional marketing and had great formulations, graphic designs and packaging as their centerpiece. AriZona worked in a bubble. They determined what they thought would work, executed all aspects of the new brand and did it at warp speed. They did it with no
research, outside advisors, trial balloons or test runs or anything to impede getting it to market. If they liked the idea, they took a chance. The success speaks for itself.
What has impressed me most is that Don and his team, including his two sons, still work that way. I have seen hundreds of brands in my 32 years, I can’t think of any other company that has achieved sustained success, and continued to innovate, as much as this special company. I have seen so many companies achieve short term success and then disappear. I’ve seen brilliant entrepreneurs over these 32 years, but none with the longevity of AriZona.
In my few hours at their headquarters, I was introduced to a bevy of products on the drawing board or that are about to be launched. They don’t rest on their laurels, or play it safe. Creativity is the DNA of AriZona. It is infectious being around their team. They are like new kids on the block trying to jump into the beverage arena, not the titans they are.
It has been a pleasure to have AriZona Beverages around for my entire beverage career. It has made my job a better experience.
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It’s Not You, and Other Emotional Advice for Beverage Entrepreneurs
It’s been a difficult time on the innovation side of beverages, with many companies struggling to raise capital from investors who seem frozen by uncertainty. That has coerced some founders into shotgun marriages with other brands or into rollup plays that may or may not yield their anticipated synergies. For entrepreneurs who’ve spent years dealing with the stress, long hours and uncertainties of this gig, it can be a sobering denouement. After all, their brand has made it this far, continually adapting to market and investor feedback, and maybe deserves a bit more consideration than a brand-new entry making its pitch at the BevNET Live New Beverage Showdown. Feelings of frustration and inadequacy are only compounded by headlines about companies like Liquid Death or Ripple Food endlessly pulling in new capital rounds in the tens of millions of dollars. I’m well aware that journalists like me, excitedly heralding these rounds, do our share to contribute to this missing-theparty feeling. Indeed, a loyal subscriber to my newsletter Beverage Business Insights explained he’d stopped renewing a few years ago entirely because he couldn’t bear to keep reading about people bringing in all these big raises. (True, it’s possible he found the newsletter worthless and was just being polite. But he’s always been straightforward with me.)
So in this column I’ll offer a bit of perspective – solace, even – to founders who’re feeling bothered, bewitched and bewildered by the down rounds and staff cutbacks and retail retreats they’re being forced to endure as they hang in there awaiting better times. My core message is that it’s not only about you: there are forces out there that may be beyond your control, and even the most conspicuous successes often benefited from some element of serendipity, though you might not ever hear about it.
For starters, it helps to remember that beverages have always comprised a difficult segment. In even the best financial or economic climate the overwhelming share of new entries fail, some quickly and some after years of revamps, pivots and recapitalizations. That’s true in any CPG segment but beverages seem to bring their own particular challenges beyond those of adjacencies like food or personal care. After all, their basic arithmetic isn’t conducive to strong margins and financially sustainable businesses on account of the expense of distribution, particularly DSD, and the sheer clutter to be cut through. At the recent Beverage Forum in Manhattan Beach, Calif., I encountered the cofounder of a recently established fund and asked him whether he’s found ways to deploy the money yet. I got a goodnews/bad-news answer: Yes, he’s made a half dozen or so investments so far, but none in beverages on account of these challenges. So even informed investors who’re assertively in the hunt have reason to shy away from
this category. In other words, it’s not necessarily you keeping investors away, it’s the category.
Beyond that, there’s the matter of exit envy. What do those successfully exited founders have that the rest of us don’t? It may be comforting to realize that the answer is “not as much as you assume.” There’s more than sheer brilliance at work in the outsize exits that attract so many entrepreneurs to the beverage business in the first place. History, as Winston Churchill may or may not have said, is written by the victors, and in beverages those histories often obscure the sizable elements of timing and luck that may have been crucial to the founders’ ultimate success. That’s not to quibble at the brilliance most of them do exhibit – after all, it takes insight and agility to respond well to the random opportunities that fortune throws your way. But absent those flukes of timing or good fortune, that blazing exit might not have ever occurred.
That realization came to me years back while covering the launch and subsequent struggles of South Beach Beverages – rebranded as SoBe during one key pivot. Even in its home market around New York, the brand couldn’t quite break out. But it got a break in Southern California when AriZona, one of the brands it was challenging, terminated its network of Anheuser-Busch distributors. Furious at the indignity (after all, it’s much harder for a beer brand to terminate its wholesaler) the Bud guys picked up SoBe with retribution on their minds, and they did a great job. That became the market where SoBe ignited, and eventually momentum built enough for the brand to win a lucrative exit to PepsiCo. That turning point never seems to come up when members of the founding team recount their story, and why would it? After all, almost by definition, founders are in the business of mythmaking. In fairness, it took skill and fortitude to pounce on the opportunity. Still, had that random event not happened, it’s unclear that the brand would have been able to hang in there much longer.
Timing matters too. Vitaminwater marketer Glaceau benefited, in my view, by the ascent at Coca-Cola of Muhtar Kent, who wanted to make a statement on his rise to the CEO job about KO not being complacent about attacking white space in beverages. So the company won an outsized $4 billion exit that arguably paid off for Coke just in the enhanced respect it garnered for years on Wall Street. Absent that timing, that exit might not have occurred. That’s not to say founder Darius Bikoff and his right-hand man Mike Repole weren’t at the top of their game. Then there’s the flip side: beverages that don’t break out because they’re too far ahead their time. Though nominally failures, those founders in some ways deserve more credit than those who prosper by riding the subse -
quent wave. During a recent shared drive, this magazine’s publisher Barry Nathanson and I were sharing affectionate reminiscences of Ed Slade, a former Fiji Water executive whose roles at entrepreneurial ventures included a brand called Twelve that as early as 2008 anticipated the subtly crafted alcohol-alternatives that are flooding the market these days. Created with the chef David Burke, it was positioned as being versatile enough for many occasions spanning the 12 hours from morning to midnight (M2M, it styled it), with a subtle recipe that melded juice, herbs and tea to create subtle and complex flavor notes worthy of a premium imbibing occasion. That sounds like a description of dozens of brands that have hit the market the past five years, right? Poor Ed never had a chance to see how far he could take Twelve because he succumbed to cancer at an early age in 2011. In truth, he was nearly a decade away from the sober-curious movement of today, swimming against the tide.
As it happened, I recently learned that I myself – unwittingly – was part of a serendipitous turn of events that led to a milestone for a beverage brand. Over beers during Expo West, the founder of a familiar brand told me an anecdote dating back 25 years earlier in our history together in beverages. Back in the brand’s early days in the 1990s, he and his partner got an approach from private-equity titan Nelson Peltz. They had no serious interest in a partnership but politely met with him to hear him out. Since they were certain nothing was going to come of it, they didn’t think it warranted mentioning to their employees or investors. That’s where I come in: an item I dropped in my magazine, Brandweek, about the meeting caused considerable consternation within the company: employees freaked out at the thought that the company was entertaining buyers behind their back (though that wasn’t actually the case) and investors were miffed that they wouldn’t be informed. Of course, the founders weren’t too happy with me for running that item. But guess what happened? As I just learned over those beers, the article resulted in overtures from several key strategic players, one of them actually a good fit, and it emerged as a minority investor and strategic partner. That’s how business works sometimes, and founders might ease some of their mental burdens if they park in a corner of their mind the notion that their own future success rides as much on the whims of the gods as on their own tenacity and skill.
Longtime beverage-watcher Gerry Khermouch is executive editor of Beverage Business Insights, a twice-weekly e-newsletter covering the nonalcoholic beverage sector.
Super Coffee Founder Jordan DeCicco Named
Interim CEO
Super Coffee’s new CEO is a familiar face: founder and chief operating officer Jordan DeCicco was named interim chief executive in early May following Tyler Ricks’ departure to frozen food brand Caulipower. Ricks, meanwhile, is the new CEO at frozen food brand Caulipower.
Ricks joined Super Coffee as an investor and board member in 2018 before moving to day-to-day operations full-time as the company’s president in March 2022. He was promoted to CEO in December 2022, and remains an investor in the company.
“I came in two years ago in what I thought would be a shorter term consulting role to help get the business from a highgrowth, highly unprofitable company to more solid footing in this financial environment,” he said, citing an 80% reduction in EBITDA losses as one of his top achievements. “Now that we have the business really starting to turn the corner, it seemed like a logical time to transition to a new CEO that will stick to the strategy we laid out but also bring some new ideas to the table.”
Appointing Jordan DeCicco as CEO – in addition to being a “really nice story” for the founder – puts the company in the hands of someone who’s been a “huge driver of the transformation,” said Ricks.
“I think we really achieved a lot of what Tyler was brought on to help us do,” DeCicco said. “We feel we have a foundation and team and product strategy to keep that going. So I’m ready for it.”
Launched as a keto-friendly alternative to protein-rich “Bulletproof”-style coffee, Super Coffee’s identity evolved as its product range and channel spread expanded. The brand, which has a national distribution partnership with Anheuser-Busch, has grown into a major player in RTD coffee, with
a presence in over 50,000 stores nationwide, but has struggled to temper persistent losses.
At the end of Ricks’ run, though, Super Coffee was about “85-90%” to executing its strategic shift towards profitability, the outgoing CEO noted. With an eye on recalibrating efficiencies after several years of heavy spending, the company has cut personnel and marketing spend by 70% and 80%, respectively, DeCicco said.
This year has seen the Austin, Texas-based brand revamp its flagship 12 oz. drink with new packaging and formulation. That product is part of a growing portfolio of lines directed at specific channels, such as newly relaunched 11 oz. Super Espresso for foodservice, 15 oz. Super Coffee XXTRA for convenience stores, and 48 oz. multiserve bottles for grocery.
DeCicco cited encouraging Q1 numbers – total brand velocity is up 7% from January to March, trending up ahead of the expected warm-weather bump – even as the revamped products are still working their way through distribution networks. Ricks estimated they are currently at around 45%, with full expansion being a major priority in the near-term.
Looking ahead, Ricks said Super Coffee’s next permanent CEO should be an “experienced operator” and someone who can provide the company’s braintrust with “the guidance of a good strong thought leadership partner who can help consider all of the different aspects of a decision.”
When asked if he was interested in becoming Super Coffee’s next permanent CEO, Jordan DeCicco was unequivocal.
“Yes, definitely,” he responded. “I think the CEO role obviously will belong to the best person, so we’ll run a search and we’ll hopefully bring some great candidates to the table, and the board, my brothers and myself will hopefully make the best decision long-term for the company. If it turns out to be me, I’d be grateful and I take the responsibility incredibly seriously. But also, if there’s somebody out [there] similar to Tyler who we’d be happy to bring on, we think that would be a great win for the company, too.”
Casa Azul Wins Trademark Case Against Clase Azul
A judge ruled in favor of Casa Azul, the tequila company founded by beverage innovator Lance Collins, in a trademark trial against long standing tequila brand Clase Azul.
On April 15, U.S. District Judge Lee H. Rosenthal in Houston, Texas denied Casa Tradicion, the maker of Clase Azul, the motion for a permanent injunction following a bench trial.
The suit was initially filed in September 2022, after Casa Azul launched a canned tequila soda that summer. Clase Azul filed a trademark infringement action in federal court arguing that the new brand caused undue confusion with its flagship tequila, a high-end brand sold in a handmade ceramic bottle which has retained its trademark since 2008.
Following an unsuccessful effort at mediation, the case moved forward with full discovery with each side filing several pre-trial motions. On November 3 2023, the judge granted Casa Azul Spirits’ motion to dismiss Clase Azul’s claims for monetary relief, and struck its demand for a jury. The rulings narrowed the issues remaining for trial and set up a bench trial this year.
The court found and concluded that because of the dissimilarity between the two brands, as well as other evidence, Clase Azul failed to establish a likelihood of confusion and failed to establish trademark infringement, unfair competition, or trademark dilution.
“We are grateful that the judge so clearly decided in Casa Azul’s favor and this outcome reaffirms our confidence in the distinctiveness of Casa Azul’s brand name, world class products and our commitment to upholding its integrity with USDA Certified Organic Tequila,” said Collins in a statement.
Since releasing the tequila soda, Casa Azul has turned its attention towards its high end tequila of the same name and has recruited a roster of celebrity investors. Those include Mexican-born actress Eiza González, football player Travis Kelce, U.S. Women’s Open Champion Michelle Wie West, among others.
Casa Azul was the first alcohol-based release from a team of beverage industry veterans whose latest innovations have made their marks in the wellness and energy drink categories. NOS Energy Drink, part of FUZE, and BodyArmor Super Drinks sold to the Coca-Cola Company in 2007 and 2021 respectively, with BodyArmor, which Collins co-founded with Mike Repole, ranking as the beverage giant’s largest acquisition at the time at $5.6 billion. Core Hydration was acquired by Keurig Dr. Pepper in 2018.
Clase Azul, on the other hand, made its mark on highend tequila when it launched in 1997, helping to spearhead the segment. The brand has several tequila and mezcal expressions, ranging in price from $150 to $2,000 and founder Arturo Lomeli’s unique bottle has since found a spot on shelves in over 80 countries.
Nutrabolt Bolsters Leadership Team With Former Red Bull, Hostess Execs
Nutrabolt, the parent company of C4 Energy and Cellucor, revamped its leadership team in May with three new executivelevel appointments including Red Bull veterans Louisa Lawless and Jason Cantelli as EVP of commercial marketing and sales and EVP of commercial operations, respectively, and Jack Harnedy as VP of revenue growth management.
Lawless arrived at her new role at Nutrabolt with over 20 years of experience in brand building and management, most recently a stint at wellness beverage incubator Stratus Group, where she served as chief strategy officer building brands like KÖE Kombucha and Perfect Hydration. Before that, Lawless held leadership positions at beverage giants such as Red Bull North America and Core Nutrition, where she helped guide the $525 million sale of Core Nutrition to Keurig Dr Pepper (KDP).
As EVP of commercial marketing and sales, Lawless will oversee the company’s marketing, strategy, and nutritional sales functions across all revenue segments. Meanwhile, Cantelli most recently spent 15 years at Red Bull in leadership roles for key accounts, distribution and marketing. Prior to that, he spent seven years at the Boston Beer Company in distribution management and key accounts. In his new role as EVP of commercial operations, Cantelli will take charge of food service, specialty retail and beverage distribution.
Harnedy comes to Nutrabolt from snack giant Hostess Brands, where he established the RGM function and “achieved significant revenue growth through efficient and engaging promotions, trade programs and data democratization.” At the supplement and energy drink company, he will be responsible for pricing and promotion scheduling and the analysis of new brands and innovations.
“As they say, ‘Embrace the new, for it’s a path to growth.’ With incredible brands in explosive growth categories, I look forward to contributing to Nutrabolt’s continued success,” wrote Harnedy in a LinkedIn announcement.
Founded in 2002, Nutrabolt first gained momentum among performance athletes and fitness enthusiasts. Over time, the company has expanded into mainstream retail and introduced new lines – such as C4 Smart Energy and its rebranded C4 Workout Powder – to reach everyday consumers who prioritize healthy, active living.
In January, the Austin, Texas-based nutrition supplement maker acquired a 20% ownership stake in TikTok-favorite greens and superfood brand Bloom Nutrition. Aligning with Bloom will help Nutrabolt broaden its au-
dience to include female consumers within the greater health and wellness space; the greens brand is primarily targeted at females between the ages of 18 and 34.
Nutrabolt’s portfolio – which includes energy drink C4, post-workout recovery XTEND, and sports nutrition Cellucor – is currently distributed in over 125 countries, sold online through the brand’s website and Amazon and in-store at retailers like Walmart, Target, 7-Eleven, and Walgreens, among others.
In the two-week period ending April 6, Nutrabolt’s C4 Energy brand posted 35.3% sales growth, according to Goldman Sachs Equity Research’s latest analysis of NielsenIQ data. Additionally, based on Q1 2024 results, C4 claims to have moved into the No. 4 spot in the U.S. energy drink market.
Monster Co-CEO Rodney Sacks Announces Succession Plan in Q1 Earnings Call
Monster Beverage Corporation chief executive Rodney Sacks laid out a likely succession plan in early May that will eventually see co-CEO Hilton Schlosberg taking over the role entirely, as Sacks is “considering” reducing his day-to-day duties sometime next year.
The announcement arrived in connection with a corporate initiative to commence a modified “Dutch Auction” tender offer of up to $3 billion in common stock at a to-be-determined price range. The company plans to use around $2 billion in cash on hand and an additional $1 billion from a new revolving credit facility and delayed draw term loan. A start date for the auction was not given.
Speaking during the company’s Q1 2024 earnings call, Sacks said that he and Schlosberg intend to participate in the buyback offer for “investment diversification and estate planning purposes.”
Sacks said he is “considering” reducing his responsibilities at Monster beginning in 2025, “while continuing to manage certain areas of the company’s business for which I’ve always been responsible.”
“My participation in particular may provide me some flexibility to consider my own potential options, which may also help the company continue succession planning for its next phase of leadership,” Sacks said.
Sacks didn’t clarify how long this wind-down period would last, but said the end goal will be for Schlosberg to take over as the sole CEO of the business while Sacks will remain chairman of the board.
Asked during the call’s Q&A session, Sacks said the decision to initiate a Dutch Auction came in response to “recent softness in the market” providing “an opportunistic time to execute at scale a transaction of this nature” where Monster can “repurchase a greater number of shares and do so more quickly than we could under the programs which we’ve implemented.”
Monster previously issued a Dutch Auction in 2016.
Born in South Africa, Sacks and his business partner Schlosberg acquired legacy beverage manufacturer Hansen Natural Corporation in 1990. Sacks served as CEO of the business until 2021 when Schlosberg joined him as co-CEO.
The company launched Monster Energy Drink in 2002, which quickly became its premier product and is today the largest energy drink manufacturer in the U.S. with annual revenue of over $7 billion, in addition to a global beverage operation.
Better Booch Looks to ‘Future’ of Fermentation With New Ingredient, Brand Vision
With the winds of change at its back, and a novel new ingredient in tow, Better Booch is powering forward under a new North Star of holistic wellness via the microbiome.
As with other fermented foods and drinks, probiotics have long been one of kombucha’s primary callouts, and also, crucially, one of the simplest for consumers to understand. And for the decades in which the category was outside the mainstream, that was largely enough.
Upon gaining broader market traction, kombucha makers – without the ability to make further functional claims on packaging – leaned into highlighting probiotics for digestion at the expense of further exploring the drink’s broad range of benefits, said Better Booch co-founders Ashleigh and Trey Lockerbie.
That’s changing, they noted, as the close relationship between the human microbiome and overall wellness has been extensively detailed over the past decade in scientific journals and university research, and broadly popularized through books like New York Times bestseller Gut and Netflix documentary series “Hack Your Health: The Secrets of Your Gut.”
Of particular interest was a Stanford study that found a diet rich in fermented foods significantly increased the diversity of gut microbes. The study also found these foods decreased 19 inflammatory proteins in the blood, including some linked to chronic diseases, while a high-fiber diet did not significantly affect the diversity of gut microbes or decrease inflammatory proteins.
“I think that science is finally catching up to what we’ve known innately for 12 years now, which is that the microbiome is sort of the key to overall health – physical, mental and even emotional,” said Trey, adding that the company is “seeing a lot of heavy lifting (on education) coming from elsewhere.”
Better Booch has seized on those favorable conditions to reposition under its new identity – Future Beverage Group –as a gut-health beverage platform brand. Its new hero ingredient, Native+, will be key to unlocking that change. Defined as a “combination of a prebiotic soluble fiber, nine strains of proven clinically-studied probiotics strains and a clinicallystudied post-biotic,” Native+ aligns with research emphasizing the added benefits of having a diversity of strains, and is now part of every existing and future beverage product from the company.
Kombucha already produces pre-, pro- and post-biotics through natural fermentation, Trey acknowledged, but Native+ further enhances the benefits while helping the product stand out from the crowd.
“Gut health has become such a buzzword in itself to where it’s almost lost its meeting because you have so many companies making claims about gut health, so I’m really excited about this next wave of documentaries and research about fermented foods, specifically, and the way that they can improve gut health,” Ashleigh said. “We’re going to start to see a lot more clarity in that space.”
Within the new brand architecture, the individual roles for each of Future Beverage Group’s products are coming into sharper focus. LIVE Organic Living Soda, acquired last year, plays towards traditional soda aficionados with familiar flavors and more approachable branding, though the founders hope it can serve as a “gateway product” for the company.
The five-SKU refrigerated line, now in 12 oz. cans rather than glass bottles, remains popular within its limited distribution footprint in Texas, and is set to enter SoCal via DSD house LA Distributing soon. A major design overhaul led by Montreal’s Wedge Studio, is set to debut in June.
Elsewhere, award-winning sparkling tea line CHA, currently seeding in SoCal stores, provides a different take on elevated natural refreshment with its four-SKU range of 12 oz. cans. CHA is available at regional chains like Lassens and Bristol Farms, with some DSD service as well.
Both Live and CHA have allowed Future Beverage Group to branch out without adulterating its flagship line, though there are some notable changes. The kombucha is moving from a 16 oz. to a 12 oz. can, a move partly intended to encourage people to pick up a second drink rather than just consuming just one per day; on the downside, it also required a UPC change. The smaller size drops the price to around $3.49 per can, down from a high of $3.99. There’s also a new spring seasonal release coming, Mango Delight, made in collaboration with Florida-based artist Gabriel Alcala.
But maybe the best indication of the company’s future goals comes from a product whose availability is the most limited. Inspired by their decision to ditch alcohol last year, the Lockerbies used a kombucha ferment as the base for developing a non-alcoholic “wine” akin to champagne, dubbed Native. The fledgling project, which sold out of its initial run of 750 ml bottles offered exclusively online, will add a second Rosé-inspired flavor in the near future.
Jay-Z’s Marcy Venture Partners Backs
The
Finnish Long Drink
Jay-Z’s Marcy Venture Partners is the latest group to invest in ready-to-drink brand The Finnish Long Drink, the company announced in May.
Marcy Venture Partners— the firm co-founded by rapper/mogul Shawn “Jay-Z” Carter, CEO of RocNation Jay Brown, and Larry Marcus—has made a “significant investment in the brand to support the Finnish Long Drink’s continued momentum within the U.S. market,” read a statement.
Carter, a noted investor and entrepreneur in addition to his music career, has history in the alcohol business, having acquired U.S. distribution rights in 2002 for Scottish vodka maker Armadale in his role as co-founder of RocA-Fella Records. Last year, a year-long legal dispute with Bacardi was resolved when the spirits giant announced it has agreed to acquire the majority of Cognac venture D’ussé, with Carter retaining a significant ownership stake through his company SCLiquor.
Now his firm joins a roster of other celebrities like actor Miles Teller, DJ Kygo, and professional golfer Rickie Fowler backing one of the highest-selling RTD brands, inspired by a Finnish gin cocktail. Since debuting in 2018, the brand has closed multiple fundraising rounds, the largest reaching $25 million in July 2021. Other backers include Founders Brewing Company co-founder Mike Stevens and a number of athletes and entertainment industry figures.
Launched by the Finnish trio of Sakari Manninen, Mikael Taipale and Ere Partanen, alongside American entrepreneur Evan Burns, the brand offers four interpretations of the beverage it describes as a citrus soda with real liquor. Those expressions include traditional, zero (sugarfree and carbless), cranberry, and strong (which ups the ABV from 5.5% to 8.5%). It’s one of a few RTDs that have found success becoming the call brand through building their respective stories around very specific cocktails that haven’t yet hit the mainstream.
Since its U.S. launch, The Finnish Long Drink has doubled its sales each year, reaching nearly 2 million nineliter case sales in 2023, according to the brand. The RTD increased dollar sales 91.9% in NIQ-tracked off-premise channels in the last 52 weeks ending April 20, outpacing the total RTD category at 36.6%.
Marcy Venture Partners has made other headlines recently, as it is reportedly close to finalizing a billion-dollar merger with the investment arm of Pendulum Holdings. Marcy Venture includes a diverse range of businesses in its portfolio from Rihanna’s Savage Fenty, to chicken nugget startup Simulate, and to the parenting resource Babylist. The firm has also invested in allergen-friendly cookie maker Partake Foods, and outside of MVP, Carter has investments in Oatly and Impossible Foods Inc.
Sound Acquired by PE Partner, Restocks After Dry Spell
Sparkling beverage brand Sound is back in supply after its acquisition in May by operating partner Next in Natural, a New York-based private equity firm specializing in better-for-you CPG.
According to the company, Next in Natural CEO Jeff Lichtenstein has been appointed Chairman of the Board for the brand “to assist with strategic guidance” as Sound founders Salim Najjar and Tommy Kelly remain with the business. Financial terms of the deal were not disclosed.
“Sound epitomizes what’s next in natural – delicious, organic, clean, functional ingredients, and no sugar are aligned with consumer demand for just that, in a convenient format,” Lichtenstein said in a release. “Salim and Tommy have an amazing story having met as Nuclear engineers that decided to make the mother of all pivots, into Organics! They are very talented executives, and the Next In Natu-
“We
ral shared services platform is designed to help them thrive with the cross-functional comprehensive support team and resources that NeNa surrounds them with.”
Lichtenstein previously founded Gourmet Guru, which was acquired by UNFI, and has worked to scale brands such as Chobani, Stumptown and Hu.
“Sound is on track to propel the company’s growth by leveraging Next In Natural’s cross-functional team and expertise in production, R&D, business development, and marketing, which will help us evolve and reach new audiences,” Kelly added in the release.
The company was founded in 2015 and initially produced a line of carbonated teas in glass bottles, before pivoting to cans with a rebrand in 2021 that repositioned the drinks as sparkling waters made with tea and botanicals.
The acquisition follows a quiet period from the brand, which had ceased posting on social media last fall while consumers have reported out of stocks across channels during that period. But as of today Sound is back in stock online via its website, and the company said it is also available in select retailers nationwide and online via Thrive Market.
Next In Natural, which focuses on operations support and strategy for food and beverage companies, announced in March that it had expanded its M&A division, appointing Keto & Co. founder Ted Tieken as Chief Future Officer. In a press release, the firm said its ideal candidates for acquisition are in the $5-$50 million revenue range and “preferably in the beverage and salty snack space, with founders at an inflection point” with “a proven product but need support reengineering or scaling their business.”
Play To Win”: Former BodyArmor Exec, Patrick Mahomes Launch Sport Coffee
It’s not quite football season yet, but as we detailed earlier, threetime Super Bowl-winning quarterback Patrick Mahomes announced in May that he’s looking for a new arena to conquer.
Mahomes is entering the beverage business, joining former BodyArmor executive Michael Fedele to launch Throne Sport Coffee in a venture that seeks to disrupt the RTD coffee category. Behind Fedele, the Kansas City Chiefs QB is the second largest shareholder in the brand.
“I wake up every single morning and I’m getting coffee,” Mahomes said. “It gets a little bit more during the season than in the offseason but I drink a lot of coffee.”
Fedele, who left BodyArmor in December 2022 after over 10 years with Coca-Cola, had been developing a “sport coffee” formulated for athletes and sent Mahomes prototype samples.
“I was able to try those out and know that I was drinking coffee which I love, but a healthy version,” Mahomes added. “I could drink it during the season and didn’t have to worry about the effects of how I feel after [or] if I would be sluggish after the coffee has worn off.”
Throne Sport Coffee is targeting health-conscious coffee drinkers, not energy drink consumers, Fedele said, but is doing it with a product that balances flavor with ingredients that speak to an active lifestyle.
The 4-SKU, NSF Certified for Sport line – available in Black, Mocha Java, Salted Caramel and French Vanilla – come in 11 oz. cans with 150mg caffeine, B vitamins, electrolytes and branchedchain amino acids for recovery. The cans will retail for $3.99. Throne’s flavored varieties are sweetened with pure cane sugar (8g added), are dairy-free and have 50 calories.
The brand initially will be in about 3,000 outlets in 20 states as well as on the company’s website and Amazon. Convenience chain Casey’s and Hy-Vee are two of Throne’s major launch part-
ners as the brand focuses on c-stores and some conventional retailers in the Midwest and Plains regions.
Positioning as a better-for-you coffee product was important because athletes like Mahomes rely on coffee to fuel their active lifestyle, Fedele said.
Finding a niche in RTD coffees is no easy task as the category grows with celebrity-backed brands like Happy and Chamberlain Coffee targeting young consumers while artisan roasters (La Colombe, Verve and Equator) expand deeper in the set.
The active-lifestyle coffee drinker is not untapped territory either. Super Coffee has been positioning its high-protein, lowsugar RTD canned drinks to these consumers for nearly a decade with a variety of SKUs. Chocolate milk maker Slate has found traction among fitness-focused individuals seeking protein-rich, caffeinated drinks with its latte line.
Throne is betting that having the clout and reach of one of the best football players in the league will help propel the brand forward. Mahomes is no stranger to endorsement deals. Over the years, he has put his personal brand behind Essentia, PRIME, and BioSteel, but Throne is the first beverage brand that Mahomes has taken an active ownership stake in and has been part of the formulation and launch strategy.
“More than the investment you have to believe in the product and think that the product’s going to take off to another level,” he said.
Setting the brand up for that kind of success, Fedele has built his team with beverage industry professionals, many of whom worked with him at BodyArmor.
“Our team is a group of competitive people,” Fedele said. “From Patrick [Mahomes] to myself to the team that’s behind this brand, we play to win.”
Meati Raises $100M, Locks In Kroger Deal As ‘Path to Profitability’ Accelerates
Meati announced a trio of big moves in May, headlined by the closing of a $100 million investment led by Grosvenor Food & AgTech along with existing investors Prelude Ventures, BOND, Revolution Growth and Congruent.
The news is accompanied by a new distribution agreement that will bring three of Meati’s mycelium-based altmeat products to 2,000 Kroger doors nationwide. Additionally, the company shared that co-founder and chief innovation officer Tyler Huggins has moved into an advisory role, passing day-to-day duties off to recently appointed CEO Phil Graves.
“When Justin Whiteley and I founded Meati, we set out to harness the power of nature to make awesome products that were a positive force for good in the world,” said Huggins. “It’s inspiring to see how far we’ve come in a short period of time, and I’m ready to pass the day-to-day running of the company to Phil Graves and the leadership team to take it to the next level.”
As for that next level, Graves said Meati will use the new capital to maintain its “high growth momentum” and continue scaling in U.S. retail. The new agreement with Kroger will expand access for its Classic cutlet as well as its Classic and Carne Asada steaks to both Kroger flagship and banner stores including Ralphs, Mariano’s, City Market, King Soopers, Dillons and others.
Those gains bring Meati to 6,000 stores nationwide in just over a year since its retail launch. The Boulder-based company also sells a Crispy Cutlet product, and its offerings are available at Super Target, Whole Foods Market, Sprouts Farmers Market, Meijer and Wegmans. Meati claims that nearly 40% of its customers have chosen its products as their first plant-based meat alternative purchase and said it sees a repeat purchase rate of “as high as 60%.”
In addition to continuing to grow the business, Graves said Meati will also use the new funds to keep building awareness for its MushroomRoot ingredient, primarily working to share how it’s differentiated from other plantbased meats available on the market. The company has a stacked roster of celebrity investors it could also tap in support of those efforts, including former Olympian Aly Raisman and NBA All-Star Chris Paul, who joined in December.
“Compared to a traditional steak, creating MushroomRoot uses 89% less water and has an 88% lower carbon footprint,” Graves said. “From a health perspective, Meati is a front runner in the alternative protein space – we’re a super food, a whole food protein free from saturated fats and cholesterol that provides significant daily fiber and nutrients.”
Meati has also garnered support from MLB Hall of Famer Derek Jeter, chef and restaurateur Tom Colicchio, TV personality Rachael Ray, and Sweetgreen co-founders Nicolas Jammet and Jonathan Neman.
But those gains haven’t come without compromise. While the company has raised upwards of $365 million in the seven years since it was founded, it has also conducted three rounds of layoffs in the past twelve months alone.
Meati last raised $50 million in September and subsequently laid off 10% of its employees, telling Nosh at the time the funds would be used as an “economic cushion.” Graves elaborated that the funds were primarily used to finish construction on its Colorado-based “Mega Ranch” production facility. The company also closed its pilot manufacturing plant during that time.
In February, Meati hired Graves as the company’s CFO, and just two weeks later, he was promoted to CEO. That change was made so that Graves could help “right size” the company, a spokesperson told Nosh at that time, which included laying off 13% of its workforce as it made another push towards profitability. According to Graves, those efforts are now showing returns.
“The actions we’ve taken have reduced our burn rate by 40% and have significantly accelerated our path to profitability,” he said. “Specific measures include streamlining our operations, eliminating unnecessary ingredients, reducing waste and moving away from temp labor.”
Graves said he anticipates no further changes to the team following this latest capital raise. He believes the company is in the right place to continue to grow and cited his time at Patagonia, where he helped establish and run the outdoor company’s corporate venture fund and analyzed over 3,000 companies that applied for funding.
“From my experience, I can confidently say there is no company more sustainable and scalable than Meati,” Graves emphasized. “Our MushroomRoot can produce the equivalent of hundreds of cows’ protein in just a few days from only a tablespoon of spores… Meati is truly unique and is poised to change the alternative protein industry.”
Tyler Ricks Named CEO at Caulipower
More on Tyler Ricks joining Caulipower as CEO: He has been a member of Caulipower’s board of directors since 2022, and replaces departing CEO Marc Seguin, who helmed the company over the past two years, succeeding founder Gail Becker in the role.
Ricks’ appointment comes as Caulipower is entering a new growth phase. The frozen food company, which generated $120 million in retail sales over the past year, recently expanded its portfolio of gluten-free pizzas, chicken tenders and bites, pastas, meals and more, sold at 25,000 stores nationwide.
“I’m not a disruptive founder; I’m the guy who can figure out how to really partner with the disruptive founder and help unlock their potential to really continue to impact the business,” Ricks said in an interview with Nosh.
Ricks has invested in more than 40 businesses and sits on more than a dozen boards. He previously held leadership positions at Peet’s Coffee and Bear Naked Granola, among other brands, and joined Super Coffee as an investor and board member in 2018. He became president of the beverage brand in March 2022 and was elevated to CEO later that year.
During his tenure, he brought the business – what he described as “a high-growth, highly unprofitable company” – to solid financial footing. He remains an investor and advisor to the company.
“My biggest concern was making sure that we could get Super Coffee to the place it needed to be to make this transition,” Ricks told Nosh, adding, “I wouldn’t have been able to say that six months ago, where I would have felt comfortable walking away.”
Becker added, “I’ve actually had my eye on Tyler for quite some time. If there’s one thing I’ve learned, timing is everything in business.”
In October, Caulipower unveiled nine new items, including frozen pinsa-style pizzas and baked pizza bites featuring a cauliflower crust, marking its largest-ever “innovation announcement.” Ricks intends to draw on decades of brand management and operational experience to support these launches while providing a “fresh lens” to new product development opportunities.
“It’s really about finding those best practices, those systems, those tools, those frameworks, those processes ... just enough of that stuff to help keep the wheels on the bus when you accelerate growth,” he said.
Seguin, who previously held sales and marketing leadership roles at GT’s Living Foods, popchips and Paramount Farms, will step down following a transitional period. Becker said she plans to remain involved in all aspects of the business, partnering with Ricks and the team on innovation, brand, consumer touchpoints and sales to drive continued growth of her eight-year old company.
“I’m really proud that I created and built the company to over $100 million,” she said. “I don’t have anything left to prove.”
Walmart Doubles Down On Private Label With Premium, Accessible bettergoods Debut
The country’s largest grocery retailer is setting up to capitalize on consumers’ growing affinity for private label offerings amid continued, heightened food prices.
Walmart debuted its new store brand, bettergoods, in April with over 300 unique products spanning frozen, dairy, snacks, beverages, pasta, soups, coffee, chocolate and more. The mass retailer claims this is its largest private label food brand launch in nearly two decades and the fastest it has brought a new brand to market.
“Today’s customers expect more from the private brands they purchase – they want affordable, quality products to elevate their overall food experience,” said Scott Morris, SVP of private brands, food and consumables at Walmart, in a press release. “Bettergoods is more than just a new private brand. It’s a commitment to our customers that they can enjoy unique culinary flavors at the incredible value Walmart delivers.”
While store brands are historically better value alternatives to brand name products, Walmart is aiming to align lower prices with demand for the premium, upscale items. According to Walmart, bettergoods will sit on-shelf for between $2 to $15; the vast majority of offerings will be available for around $5.
Additionally, Walmart claims that unlike most private offerings, which are often modeled after popular name brand foods, many bettergoods items are unique to Walmart and created by its in-house product development team, in collaboration with global suppliers. Bettergoods products are housed under three broad categories – Culinary Experiences, Plant-based and “Made Without” – and include everything from hot honey seasoning to a four ingredient, Sweet Cream Dairy Creamer.
According to Kelly Criswell, founder and principal of strategic creative and brand design agency Mudge, the overall look for this
expansive range does “a fine job at feeling like a modern private label brand.” She said her initial reaction was that “Walmart made a more approachable version of Target’s Good & Gather.”
The line has also drawn similarities to Trader Joe’s “dupe culture” approach to private label products due to the flavor variety, like frozen chicken wings with a Brown Sugar BBQ dry rub. On the product-specific design front, she noted that the culinary experience items could have been made more distinct with less generic food photography, stating the “designs are expected, and not differentiated.”
“It’s a real challenge when designing a system for a portfolio so big across so many different categories,” Criswell said. “Their choice of using color to delineate categories (plant based, etc) is a good one, but… it may be harder for the consumer to quickly differentiate flavor from SKU to SKU… It’s such a broad design system that they likely made some concessions and sacrificed the shopability of some categories for consistency across the lines.”
Either way, the unified product range, and speed to which it was brought to market, signals that Walmart sees a significant opportunity to grow with a broad ranging private label food platform while competing with Target’s Good & Gather brand, among others.
Earlier in April during a webinar with Jefferies analysts, Jeff Wojtkowiak, president of In The Loop Consulting and a former Kroger executive, explained that private label business will likely be key revenue growth drivers for retailers moving forward.
Not only that, he emphasized that these offerings will serve as an opportunity to bring more consumers into stores, specifically for mass retailers like Walmart and Target, while highlighting that the differentiated private label approaches from discounters like Trader Joe’s and Aldi will serve as a guide.
Wilde Protein Chips Pumps Up With Muscular Investment
Wilde Brands has landed an eight-figure investment from previous backers and new investors who see a future for the protein snack brand to expand further in retail as it eyes international markets
The chicken chip maker announced in April it had secured over $20 million in a round led by existing investors KarpReilly and Bill Moses that also included new investments from the Family Fund and performing artists Jack Harlow and Machine Gun Kelly.
Harlow and Kelly were brought into the round by venture studio Grey Space Group, which — along with making investments in brands like Wilde and Koia — bridges the gap between CPG brands and cultural entities like athletes and celebrities.
Wilde has taken a long and winding road to getting to where it’s at now.
Initially, Wilde Brands started by making meat snack bars but began its pivot into a crunchier protein delivery format in 2017 when it launched its chicken chips. Eventually discontinuing the bars and going through multiple packaging refreshes, founder and CEO Jason Wright finally landed on Wilde’s current branding and recipe made from chicken breast meat, egg whites and bone broth.
“I like the fact that we’re offering protein chips with real food,” Wright told Nosh. “Wilde gives the customer something totally different. We’re giving you a culinary experience and a flavor profile that you’re not gonna get with a powdered [protein] product.”
The brand has seven flavors (Nashville Hot, Chicken & Waffles, Buffalo, Barbeque, Salt & Vinegar, Himalayan Pink Salt and, its latest addition, Spicy Queso that all lean into the flavor profile of its hero ingredient while leaving plenty of room for new innovation.
Wright hinted that the brand is toying with Chamoy and Jalapeño Ranch varieties as well as another flavor launch in the works linked to a partnership with “the Holy Grail of chicken.”
Although consumer-friendly flavors might be driving adoption, growth is coming from the brand’s ability to reach shoppers in multiple channels and even in multiple store parts.
In the last year, sales picked up when Wilde expanded its distribution from natural channel stores like Whole Foods and Sprouts into mass and club partnerships with Target, Walmart and Costco. At Target, Wilde has placements in two categories: The four-packs of 1.34 oz. bags are in the Sports Nutrition set and are expanding into all 1,600 Target stores while its 2.25 oz. bags are in about 500 locations in the Alternative Snacking grocery category.
The brand is gearing up for a summer program in Costco that begins in June and will expand its footprint in the club chain’s warehouses. In total, WIlde is in about 20,000 doors including conventional retailers like Publix as well as online platforms like Gopuff and Amazon.
In an effort to “become a household name,” Wright said, the brand has also partnered with fitness events like Tough Mudder to build brand awareness.
Yet, the U.S. might not be the only place to run wild.
After recently returning from a trip to Germany to talk to equipment providers, Wright made a stop in Dubai to talk with a venture group about potentially bringing Wilde abroad. Along with Europe and the Middle East, the brand is looking north with ongoing conversations with Canadian retailers as well.
Though the plans are in their “very early stages,” Wright said that it has been a goal from the beginning “to prove that Wilde can be successful in another country.”
“Everything that you see here is happening there,” he said, referencing his time in Germany and Dubai. “People really want snacks that work for them, and protein is something that is filling and full of energy. All around it’s a better source than just 100% carbs.”
With some added capital, Wilde is well-positioned to dig deeper into that trend. The brand operates its own manufacturing plant in Lexington, Kentucky, and feels like it has the scale to expand both domestically as well as abroad.
For now, Wilde is focused on going deeper with its current retail partners but is watching how it can further differentiate itself from the other high-protein chips that are starting to fill out the snack set.
Competition is building with brands like ZeroCarb Lyfe bringing its own chicken-based protein chips to market last year. Quest Nutrition and Legendary Foods also have protein chips (both using milk protein isolate).
Although Wilde sees its use of animal protein as a differentiator in taste and texture from protein powder-based brands, Wright said more competition is not necessarily a bad thing when building a high-protein set out of the salty snack category.
“If you look at salty snacks right now it’s dominated by carbohydrates,” Wright said. “And I think: how many barbecue potato chips do you need?”
Highlights from the 2024 Craft Brewers Conference
Craft brewers decamped to Sin City in April for the 2024 Craft Brewers Conference (CBC) and BrewExpo, hosted by the Brewers Association.
Here are highlights from the event in Las Vegas:
KEYNOTE: Uncle Nearest’s Fawn Weaver On Why Staying Small Wasn’t an Option
Uncle Nearest Distillery founder and CEO Fawn Weaver disregarded the advice of the spirits industry’s old heads on the way to building a billion-dollar brand, she shared during her fireside chat with Crowns and Hops Brewing co-founder and CEO Beny Ashurn on the opening day CBC.
“Literally every single thing that everyone told me, ‘This is what you do not do,’ we did,” Weaver said.
The path less traveled for Weaver included launching in control states when others suggested that she start in open states; expanding distribution nationwide within two years when others told her to try to focus on her home state for five to seven years before expanding; and leaning into awards instead of a brand story, when others told her that no one cares about awards.
“No person of color has ever succeeded [in the industry],” she said. “No woman at the top has ever been at the top. So why would I listen to what has always worked?”
Five years later, Weaver is lauded for her success in building the Uncle Nearest brand. The road to more than 1,100 awards for a brand that celebrates the story of the first known African-American master distiller is about being authentic and representing women and people of color in a predominantly white male dominated business, Weaver shared.
“I realized that if I could break through every ceiling, every barrier in this white male industry, that everybody else can do it in every other industry,” she said. “So I wasn’t representing hope for the spirits industry; I was representing women and people of color, period.”
When Uncle Nearest launched in 2017, Weaver’s womenled team was met with indifference and silence from supplier companies, retailers and distributors who wouldn’t return their calls. Weaver leaned on her husband, a Sony Pictures executive, to get through to decision makers.
When her husband reached out, those decision makers either took his call immediately or returned it by the end of the day. The decision makers had two questions for Weaver’s husband: Do you play golf? And do you drink beer?
Weaver said this allowed her to fly below the radar, which informed her strategy behind landing news stories in Uncle Nearest’s early days. In those stories, she wasn’t referred to as founder and CEO, but the chief historian, because “that’s something America could swallow at that time.”
Her true role as the driving force behind Uncle Nearest didn’t become public until 2019. And even then, the fact that the company was women-led and Black-owned didn’t come out until 2020.
“Why?” she said. “Because the juice can speak for itself. And if all ego is cast aside – don’t care what my color is, don’t care what my gender is – and if all of that wasn’t put aside so the juice spoke for itself, I would not be sitting here right now.”
The juice attracted consumers but the story kept them engaged, Weaver continued.
Through its growth period, Uncle Nearest has remained independent and resisted investment from strategics and
private equity, including a $2 billion offer for the company, Weaver claimed. Instead, the company has relied on investment from 170 individual investors.
To build the brand, Weaver shared that she needed $230 million.
“What beer brand needs to do that?” she asked.
The decision to lean on individual investors has created 170 brand ambassadors who act as “an extension of myself,” Weaver said. And they have helped secure multiple national accounts.
Over the last year, Uncle Nearest has turned into an acquirer. In October 2023, the company acquired cognac maker Domaine Saint Martin. The company appears poised for more deal making, as Weaver teased an acquisition of a craft spirit brand – one that attempted to stay small but ultimately will be sold to Uncle Nearest once due diligence is completed.
“With craft distillers, there’s always been this pride in staying small,” she said. “The company that I’m acquiring – phenomenal company that was trying to stay small. The problem is you stay small too long, you will die or you will have to be acquired, and you will be acquired at a loss because you never had a goal or a dream to be bigger.”
Several times throughout the discussion, Weaver challenged the notion that brands should remain small. She added that there’s a piece of the craft beverage movement “that is so hung up on ego” and a desire to do everything themselves.
“There isn’t that much pride in doing your own accounting,” she said. “There is nothing great about aspiring to be small. It’s hard to be big when little’s got you.”
The commentary highlighted a striking difference between the trajectory of craft distillers and craft brewers, with the majority of the 9,683 small brewers producing fewer than 1,000 barrels of beer annually. The BA has championed those small and independently owned craft beer makers, while excluding those who have been acquired by a larger bev-alc producer from its ranks.
Weaver also shared that Uncle Nearest is trying to lift up other BIPOC companies along the way The company hosted 130 BIPOC founders, who were afforded the opportunity to pitch “all of the gatekeepers” in the industry, from distributors to retailers to investors.
“If we can make it to the top, we’re bringing everybody with us,” Weaver said.
Weaver concluded that success doesn’t make the work easier.
“The higher you go up, the thinner the atmosphere, the more difficult it is for you to breathe,” she said. “If you’re looking to get to this moment of easy, drop out now. If you’re going to the next level for purpose, then nobody can knock you off that mountain that you’re climbing.”
For craft breweries to return to growth, they have to do more than just make great beer, BA chief economist and VP of strategy Bart Watson said during his state of the industry address on Day 2 of CBC.
Small and independent craft production declined -1% in 2023, according to the BA’s annual production survey. More than half (54%) of surveyed breweries recorded a decline in production, and the gap between openings (495) and closings (418) narrowed.
Much of craft’s decline is due to demand, which has followed a “textbook” S-curve pattern of increasing rapidly 10+ years ago, to now becoming static as product is easily accessible and no longer new. From 2012 to 2019, the number of craft drinkers was growing an average of +3.5% annually. From 2019 to now, that growth has compounded to +1.6%.
The cost to make, market and sell beer has also continued to increase, as “pretty much everything has gone up in cost in recent years,” and craft revenue has been unable to keep up.
“The crux of this challenge is not necessarily the input price increases [for operations], but the combination of that with our inability to follow them up in pricing,” Watson said.
“When you look at other consumer product goods categories, some of them would just pass those prices on to the customer,” he continued. Craft’s hesitancy to do so is a response to the state of supply and demand, and how relevant companies feel their brand is “relative to the total category.”
There is still room – and reason – for optimism, according to Watson. Forty-four percent of craft breweries who responded to the survey, recorded an increase in production in 2023.
“That 44% represents thousands of companies that faced all those challenges that I already laid out for you, and still found ways to rise above and find growth,” he said.
Craft breweries are also starting to redefine what “growth” means to them.
“When I talk to brewers about distribution in the past, it was always, ‘Where can I go next? How much beer can I sell?’” Watson said. “This year, I’ve heard a lot of reframing around where are the places and brands that I can sell that are actually going to make me money.
“Craft is entering its era of operations,” he continued “People are recognizing that it’s not just about the great beer you make, but you have to have a profitable business behind it.”
Craft has the ability to “restart” growth as a segment, but it will rely on companies either finding more occasions for their brands, or bringing new drinkers into the segment. Both pathways require companies to lean into what makes them different in a sea of choice across not just beer, but all bev-alc.
“It made a lot of sense in that era of rapid growth to stick close to the herd, to do what was working, to make the styles that everyone else was making, to have the industrial chic warehouse taproom that everybody would expect with craft,” Watson said. “That said, in an era of incremental growth, that’s not going to work for everyone collectively.
“To find those new customers, win those new occasions, we’re going to need companies to find different paths, find their own unique paths,” he continued.
NB2A: Black-Owned Breweries Are Growing Based on Craft’s Original Playbook – Authenticity and Community
While craft finished 2023 in decline, Black-owned craft breweries were able to grow, according to National Black Brewers Association (NB2A) executive director Kevin Asato in a press conference ahead of the World Beer Cup award ceremony on Day 3.
More specific numbers on Black-owned breweries’ sales and impact will be released in late May, but Asato gave a preview of what to expect from that report, including that Black-owned craft breweries are consistently outperforming both the overall craft segment and total beer.
“What is the secret sauce that these individuals hold?” Asato asked. “Very simple: It’s their authentic self. It’s the culture. It is very simple that in the beer industry, what these individuals are doing, and the association that we’re trying to bring together, we are bringing culture to the
cup, and it’s exactly the same recipe that actually had craft beer grow before.
“When you think about how craft beer grew, it was an iconic piece of community property,” he continued. “Craft beer was that local place within a community that people would come to, and that people would have a desire to congregate together, share a pint, talk about life, talk about what’s going on in the community. Craft beer exploded with that, because it had a community that supported it.”
That “authentic” connection to community is happening now with Black-owned businesses. Yet they are still an incredibly small portion of the overall craft pie.
Of the 9,683 craft breweries that operated in the U.S. in 2023, only 85 breweries were Black-owned – less than 1%, Asato said.
“There are 13% Black Americans in the United States,” Asato said. “There are 8% of the [Americans] who drink that are Black. How do we get away and allow this industry that we love to only have less than 1% of Black ownership in these breweries? How do we let that happen?”
There is also a major disparity between Black consumers who drink bev-alc, and Black consumers who drink beer – more than any other demographic group, Asato said. About 88% of Black Americans who drink bev-alc drink spirits, while only 46% of the same population drink beer. That’s equivalent to about 16 million consumers who drink alcohol, but don’t drink beer, according to Asato.
“I can assign a very simple consumption model to this: one beer a day, two times a week, all of a sudden that volume starts to really start to materialize into something significant,” he said. “The craft beer industry, the beer industry as a whole, actually has an avenue of new drinkers that could be introduced into this market, and they are Black.”
NB2A president and Weathered Souls co-founder Marcus Baskerville echoed these remarks and the potential impact Black consumers could have on craft beer if there were more breweries for them to connect with. Baskerville emphasized that supporting Black-owned craft breweries doesn’t just help those individual businesses, it helps all craft breweries, as Black-owned breweries help introduce craft beer to consumers that can then spread their dollars and support across the segment.
“Craft beer isn’t oversaturated at this point, craft beer is oversaturated with white males,” Baskerville said. “There’s a completely whole different demographic that we have not even been able to hit yet.”
Black-owned breweries cannot do it on their own and need the support of fellow industry members, NB2A first VP and Brooklyn Brewery brewmaster Garrett Oliver said.
“America propagates this toxic idea that there is such thing as a self-made man,” Oliver said. “This is always a lie.
“If you’re a self-made man, or a self-made woman, is that even a thing to aspire to?” he continued. “I’m gonna say that it isn’t, because if you’re self-made, you show up alone. Alone. By yourself. Is this really what beer is about? Is this what we want it to be? No.”
JUICE
Just in time for the on-the-go summer season, Naked Brand has unveiled a new line of lower sugar smoothies. Available in three flavors – Berrylicious, Glorious Greens, and Tropical Sunrise – each 15.2 oz. bottle has 9 grams of fiber and contains 50% less sugar than the leading smoothies on the market, the brand claims. Naked Lower Sugar Smoothies are available nationwide including Albertsons, Walmart, and Target for $3.99 each. For more information, visit nakedjuice.com.
Mott’s has introduced a new fruit-flavored hydrating juice beverage specifically formulated for kids, Mott’s Active. Available in two flavors – Blastin’ Berry and Watermelon Burst – the product features naturally sourced electrolytes and is free of added sugars and artificial flavors. Mott’s Active is now available in 8 oz. 6-packs at mass and grocery retailers nationwide. For more information, visit motts.com.
SPORTS DRINKS
7-Eleven is seeking to bring the “first taste of midnight” to its stores with a new limited edition flavor of Gatorade Thirst Quencher: Midnight Ice. What does Midnight Ice taste like? Well, you’ll have to find out for yourself, as no details have been released on the flavor profile of the beverage. Gatorade x 7-Eleven Midnight Ice is exclusively available in 28 oz. bottles at participating 7-Eleven, Speedway, and Stripes. For more information, visit gatorade.com.
POWERADE has announced the launch of its new summer-only product, POWERADE SOUR. Available in three flavors – Blue Razz, Watermelon Lime, and Green Apple – the 28 oz. sports drinks contain 50% more electrolytes than Gatorade’s Thirst Quencher, the brand claims. POWERADE SOUR is now rolling out to stores nationwide. For more information, visit powerade.com.
COFFEE
Starbucks has released a slate of new products, including two new Cold Brew Concentrate flavors: Dark Chocolate Hazelnut and Sweetened Black. The concentrate is designed to be combined with equal parts water and poured over ice. Starbucks’ Cold Brew Concentrates are available at retailers
nationwide with a SRP of $10.99 per 32 oz. bottle. Other new releases include Starbucks Iced Coffee Blend Naturally Flavored Vanilla ($9.99/10-count) and Iced Coffee Blends Signature Black ($10.99/12 oz. bag). For more information, visit Starbucks.com.
Just in time for summer campfire season, Dunkin’ has unveiled its latest innovation: S’mores Artificially Flavored Cold Brew Concentrate. The concentrated coffee is said to feature “bold, smooth notes of chocolate, graham cracker and toasted marshmallow” and comes in a 31 oz. bottle. For more information, visit dunkinathome.com.
Kansas City Chiefs QB Patrick Mahomes is a three-time Super Bowl champion, so he knows a thing or two about taking a hard tackle, but is he ready for the rough and tumble of the beverage business? With former BodyArmor exec Michael Fedele by his side he’s got a seasoned teammate heading into the game as the two partnered to launch Throne Sport Coffee , an NSF Certified for Sport canned coffee line containing 150 mg of caffeine, B vitamins, electrolytes and BCAAs in each 11 oz. can. Available in Black, Mocha Java, Salted Caramel and French Vanilla flavors, the cans will retail for $3.99 each. For more information, visit sportcoffee.com.
CSDs
To celebrate the (upcoming) arrival of grilling season, Pepsi has joined forces with grill master and chef Bobby Flay to launch two new flavors “designed to elevate the taste of BBQ foods.” The new LTOs – Pepsi Peach and Pepsi Lime – were crafted to provide a sweet flavor that enhances the smoky, savory flavors created on a grill. Both varieties will soon be available for purchase nationwide in 12 oz. cans and 20 oz. bottles. For more information, visit pepsi.com.
LEVO is the latest entrant seeking to make a splash in the rapidly growing prebiotic soda space. Available in six flavors – Cotton Candy, Splice, Cosmic Punch, Root Beer Float, Orange Creamsicle and Voodoo Cola –each 12 oz. can contains 5 grams of dietary fiber and 5 grams of cane sugar. LEVO Soda will soon be available for purchase via the brand’s website for $32.99 per 12-pack. For more information, visit levosoda.com.
Canada Dry is rolling out a new look across its entire portfolio of ginger ales, club sodas, and tonic waters. According to the brand, the refresh includes all-new graphics “meant to evoke the 120-year history of the brand with a modern makeover that cues relaxation and comfort vibes.” Additionally, Canada Dry has introduced a new flavor extension, Canada Dry Fruit Splash, available in Original and Zero Sugar formats. For more information, visit canadadry.com.
RTD COCKTAILS
Bartender-developed, ready-to-serve cocktail brand On The Rocks has unveiled a tropical-inspired offering, The Blue Hawaiian. The new offering blends premium Cruzan Rum and orange notes of Blue Curacao with toasted coconut and pineapple flavors. On The Rocks’ The Blue Hawaiian (20% ABV) is now available in 375ml bottles. For more information, otrcocktails.com.
Crystal Head Vodka, part of the Infinium Spirits portfolio, has launched two new RTD cocktails: the Espresso Martini (20% ABV) and the Cosmopolitan. The former is crafted with Crystal Head’s Original vodka, nitro-brewed coffee, natural chocolate flavor, and a hint of agave. The latter features Crystal Head’s Original vodka, pure cranberry juice, natural lime extract and triple sec. Both cocktails are priced at $4.99 per 100ml can. For more information, visit crystalheadvodka.com.
Betty Booze , the low-ABV sparkling canned cocktail brand founded by actress Blake Lively, expanded its portfolio with two new varieties: Oak Smoked Lemonade and Sparkling Tequila with Smoky Pineapple. Additionally, for the first time, Betty Booze cocktails will be available in mixed variety pack, starting with a new Sparkling Tequila Variety Pack (2x Sparkling Tequila with Oak Smoked Lemonade, 2x Sparkling Tequila with Smoked Pineapple, 2x Sparkling Tequila with Lime Shiso). The 6-pack will come with a SRP of $20.99, while the flavorspecific 4-packs retail for $14.99. For more information, bettybooze.com.
POWDERS
Powdered hydration mix maker Cure has introduced two new 28-serving bulk jars to
its line, with Lemonade and Strawberry Kiwi flavors. The plant-based, electrolyte-rich mixes have just 25 calories per serving and contain no added sugar, erythritol, aspartame or other artificial sweeteners. Online, the tubs are available for $38.24 each. For more information visit curehydration.com.
To celebrate Ga’Quincy “Kool-Aid” McKinstry’s draft pick to the New Orleans Saints, Kool-Aid has launched Black Cherry Blitz, its first limited edition flavor in over three years. McKinstry was first nicknamed KoolAid by his grandmother for his megawatt smile reminiscent of the Kool-Aid Man before it became his official roster name. For more info, visit kraftheinz.com/koolaid.
CANNABIS
Caffeine? THC? Por qué no los dos? Subculture Delta Beverages Inc., a joint venture between Subculture Coffee and Diesel Beverages, has launched a shelf-stable, canned cold brew coffee infused with 5 mg of Delta-9 THC per 12 oz. can. Available in original and Oat Milk varieties, these cold coffees are looking to get you toasty. The drinks can be purchased online for $39.00 per 4-pack and are also available at Subculture Coffee stores in Florida. For more information visit drinksubculture.com.
ALT DAIRY
Califia is paying homage to a beloved ice cream flavor with the launch of its newest almond creamer, Cookies ‘n Crème. The dairy-free creamer is made with ingredients like almondmilk, cane sugar and sunflower oil and, according to the brand, contains 25% less sugar than the leading sweetened creamer brand. For more information, visit califiafarms.com.
SPARKLING WATER
In honor of Asian Pacific American Heritage Month, Asian-inspired sparkling water brand Sanzo has partnered with gymnast Leanne Wong to celebrate her “golden career” by featuring her on a limited edition Calamansi can, now available for pre-order on Sanzo’s website for $36.99 per 12-pack. For more information, visit drinksanzo.com.
SPOTLIGHT CATEGORY
Bottled Fruit Drinks/Bottled Fruit Juice Blends
While you can read about the thick blends in our Smoothie feature, at the ambient Fruit Drink and Blend level it’s a lower price, higher penetration game. It’s where Snapple and Bai and Arizona fight it out, and in those categories, it’s also where we’re seeing Good 2 Grow continue to exert strength as an underrated brand power. It’s outselling both Motts and Juicy Juice in the blend space, while dueling with the Snapples and Arizonas of the world in the Fruit Drink category.
BOTTLED FRUIT DRINKS
$142,541,230 6.1%
$125,334,766
$64,274,914 -12.1%
$44,591,636 5.5%
$39,353,867 -8.6%
$39,289,413 3.6%
$26,039,107 7.6%
$25,913,413 -4.1%
$22,974,163 -5.0%
BOTTLED FRUIT JUICE BLENDS
SPORTS DRINKS
CAPPUCCINO/ICED COFFEE
ENERGY SHOTS
CANNED AND BOTTLED TEA
SOURCE: Circana OmniMarket™️ Shared BWS - 52 Weeks Ending 04-21-24
FLAVORED SELTZER
NONFLAVORED CONVENIENCE/BOTTLED
$87,434,579
NA BEER
SOURCE: Circana OmniMarket™️ Shared BWS - 52 Weeks Ending 04-21-24
2024 Summer Fancy Food Show Returns to New York City
The Specialty Food Association’s Summer Fancy Food Show, the largest U.S. show devoted exclusively to specialty foods and beverages, is set to return to the Big Apple in June.
The 2024 edition of the show will take place on June 23-25 at the Javits Center in New York City and will feature a variety of educational seminars and exhibit halls.
Highlights of the Summer Fancy Food program include:
• Top Chef host Kristen Kish will deliver a keynote address discussing the diverse world of cuisine, local flavors, the innovation realm of food, and the latest trends in foodservice.
• A panel with Naturally New York about business financing that is tailored for founders and their teams amidst the current challenging climate. The talk is designed to help attendees clarify objectives and timelines, determine their funding needs and connect with investors and banks.
• Michael Wolf, founder of food innovation news and analysis site The Spoon, will present FoodGPT: How Specialty Food Makers Can Leverage AI for Business Growth. During the session, he will cover early lessons from food brands using AI and GenAI to discover new recipes, optimize operations, and connect with consumers.
The show will also feature a new debut district (showcasing new products, exhibitors, and ideas), a supplier diversity pavilion, a plant-based pavilion, an end-of-show food rescue and donation, and more. Additionally, scheduling will include ample time for networking and peer feedback from exhibitors and attendees.
ALL THE RIGHT M VES
ENERGY DRINKS’ DELICATE DISTRIBUTION DANCE
By Marty CaballeroAs the laws of physics tell us, energy can neither be created nor destroyed. As the beverage industry tells us, however, it can definitely be distributed.
Moving product is a critical piece of the business equation for drink manufacturers across all categories, but energy drinks have enjoyed (or suffered, depending on your perspective) a considerably more dynamic and dramatic saga in recent years as consolidation from the major strategics has reshaped the landscape.
For the small handful of brands at the top end of the $19 billion-and-growing space, rapidly climbing sales have helped land substantial distribution partnerships with the big strategics, with the two most powerful names, Coca-Cola and PepsiCo, having made their bets around Monster
and Celsius/Rockstar, respectively. But as heavy hitters like Keurig Dr Pepper, Anheus er-Busch InBev and Molson Coors put their thumbs on the scale, those scales of mass distribution are tilting in their favor.
Yet as industry observers keenly know, challenges are often the source of opportunities for those who know how to find them. Energy is as indemand as ever from consumers, and a new generation of brands has begun filling gaps in the market with more finely tuned RTDs; think G FUEL for gaming or Alani Nu for women, for example. That there’s ready availability of new, innovative brands is welcome news for independent distributors, but – having been burned by exits in the past, and now fac -
ing a new threat from direct shipments to large chains – many are wary of having the rug pulled out from underneath them yet again.
Against that backdrop, the stakes have been raised for all parties operating outside of the big-strategic bubble.
“That same [distributor] network that I use, that Celsius [had] used, that C4 and a lot of other brands have used, they’ve built a lot of these brands, and then [the brands] moved on,” said Gene Bukovi, head of beverages at Redcon1. “They’re a little fatigued.”
THE DISTRIBUTION SHUFFLE
Looking at the category growth leaders of the past half-decade, they all share similar origins within the sports nutrition and supplement space. And as those leaders have formed distribution pacts with powerful strategics like CocaCola (celebrating its tenth year with Monster in 2024) Pepsi (Celsius), Keurig Dr Pepper (C4) and Anheuser-Busch (GHOST), independent distributors have found a new crop of players eager to fill the gaps in their portfolios.
Gene Bukovi knows the landscape well: riding shotgun alongside bombastic CEO Jack Owoc, he helped turn Bang into a billion-dollar-plus brand in the 2010s through a national network of DSD partners. Now at the helm of Florida-based supplement platform Redcon1 as head of beverages, he’s taking that brand’s 3 oz. shots and 16 oz. energy drinks through those same distributors, but finding that scars and bruises from previous experiences are still there.
“My whole team’s pitch to distributors has really been that we’re going to stick with our distributor partners and work together, and we’re not going direct,” he explained, framing his approach as supporting “ground troops” rather than being “top heavy”.
Bukovi’s outlook is colored in part by his own, albeit brief, experience working with Pepsi at Bang, which accused the distributor of giving some of its facings to Pepsi’s lower-velocity portfolio brands like Rockstar. He acknowledged that the soda company has been a better fit with its new partner Celsius, but reaffirmed his position that DSDs need more support than they did in the days before COVID and that unless strategics grow the overall shelf space, they’ll still be reshuffling SKUs and choking off innovation.
“There’s trepidation from distributors,” said Aaron Singerman, Redcon1’s CEO and founder. “I think the initial probably five or six phone calls [to DSDs], every one of them I had to explain that we’re not looking to sell to somebody or something like that. If they’re gonna bet on a
brand and they’re gonna help build it, they want it to stick around, which is understandable.”
An abrupt exit to a strategic - even if it’s contractually compensated - isn’t the only sword hovering at the neck of distributors: The danger of being sidestepped by brands choosing to go direct to certain retailers has come to the fore this year through the actions of PRIME and Alani Nu maker Congo Brands. The Kentuckybased company roused the ire of its DSD partners this spring by taking PRIME’s hydration beverages and Alani Nu’s energy drinks -- generators of $504 million in sales, per NielsenIQ data -- direct to Walmart and Target, with Kroger likely the next to come onboard its expanding program. Red Bull has also tightened its control over distribution by cutting out longtime partner Beverage Works in the highly lucrative New York market, a dismissal which the jilted party is fighting in court.
The good news for distributors is that consumers’ seemingly bottomless thirst for energy has stimulated the market further downstream. Along with Redcon1, independent energy brands that have benefitted from consolidation by the strategics include
Bucked Up, the hunter and outdoorsman-friendly brand out of Utah, and another supplement-based startup, Ryse Fuel.
The former brand, named as a 2024 Insurgent Brand by consulting firm Bain & Company, generated over $33 million in dollar sales in the 52-week period ended March 26 (+100% YoY) via DSD partnerships with Hensley Beverage, Polar and others. Meanwhile, like other fitness-focused brands, Ryse Fuel has leveraged strong performances in nutrition channels (The Vitamin Shoppe) to make itself appealing to DSDs that may have lost key energy brands, a strategy which has yielded wins at Kroger and Qwik Trip.
Yet the ultra-high level of competition within energy means there’s dangerously little room for error. Despite backing from NASCAR champ Kyle Busch and having Suja co-founder Jeff Church at the helm, Rowdy Energy quietly folded in January after raising $13 million in 2021 from investors including CPG accelerator CircleUp and the Kraft Group, among others. Molson Coors’ splashy ZOA brand has struggled to find its rhythm, too. On the other side of the fence, energy upstarts like Lucky (formerly Lucky F*ck) have managed to win fresh venture capital even amidst a challenging fundraising climate. And despite a wobbly start, 5-Hour Energy has doubled-down on its commitment to becoming a player in 16 oz. cans with new flavors and designs.
In the grand scheme, Singerman noted, distributors simply need to have a reason to believe in emerging energy brands, or at least to have some guarantees – in the form of chain placements, preferably – against potential underperformance. For their part, brands are increasingly building
general nutrition platforms around their energy products –tapping into areas like protein and hydration or formats like shots – in part to provide distributors with more product options for their retailers. But in those situations, cutting out DSDs from LTOs can be particularly jarring.
“We want to be able to provide [distributors[ a full portfolio of products that they can sell,” said Bugovi. “We’ll probably bring on partners and be a billion dollar organization, but we want to stick with this network. The plan is not to shift over to Coke. We see what happens with brands that go over there – they die.”
“The only downside that we also see is some of the DSDs are gun shy,” added Singerman. “It’s just taking a little longer for those same people to realize it’s gonna happen.”
CELSIUS GROWS WITH PEPSI
While independents pursue distribution opportunities in the open market, much of the attention around strategic brands has centered on the prodigious growth of Celsius via its distribution pact with Pepsi, a relationship that has yielded tre-
mendous success thus far and which is now looking closer at the longer-term.
This spring, in an amendment to its existing agreement, Pepsi introduced an incentive program to help drive sales, at the risk of some margin degradation. The move underlines the “great relationship” Celsius has with Pepsi, said chief commercial officer Tony Guilfoyle, and “further aligns our priorities and motivations.” It also heightened expectations for summer retail resets, which Guilfoyle predicted would be the “best in our company’s history.”
Part of that optimism comes from the fact that the full potential of the Celsius-Pepsi partnership has yet to be felt; 2024 is the first full year in which the energy drink maker is co-creating an annual operating plan with the soda giant, a project it should be able to devote more attention to following Gatorade’s pivot from DSD back on to the blue trucks. As noted by Jeffries analysts, with greater efficiency and less inventory to carry, Pepsi’s overall performance is likely to keep improving. Delivery time has been reduced from 14 to 7 days, while expanded windows for shelf resets means there’s more time to fill new space on the shelf.
Already, the gains are evident: in two years’ time, Celsius has captured 98% ACV with national coverage, particularly in independent convenience stores. More importantly, the brand’s channel spread is helping to redefine and broaden use occasions for the products themselves, as reflected in particular by its growth in food service. During the first quarter, volume in that channel increased 186% YoY, or around 12% of total sales to Pepsi in the period. Robust sales performance on Amazon and club retail (+36% YoY to $63 million in Q1) balance out the business.
“This is the first full year that we’re activating a co-created annual operating plan that will optimize our collaboration and in-store presence,” said Guilfoyle. “Great partners grow great brands.”
ENERGY DRINKS
Three years after it introduced its first full-sized offerings, 5-Hour Energy is giving its 16 oz. canned energy drink line a packaging refresh, along with two new flavors: Rainbow Sherbet and Raspberry Razz. The entire line has also been reformulated to improve flavor and increase carbonation levels, while maintaining the 230 mg of caffeine and blend of vitamins and taurine found in each serving.
GURU Organic Energy has made its foray into the zero sugar energy drink category with the launch of Zero Wild Berry. Each 12 oz. can packs 140mg of caffeine and contains zero sucralose and zero aspartame. GURU Zero Wild Berry is available for purchase via the brand’s website exclusively in Canada for CAD $62.99 per 24-pack.
On the heels of its Big Dwayne Energy campaign, ZOA Energy has rolled out two new flavors: Mango Splash and Green Apple. The former is exclusively available at 7-Eleven stores nationwide while the latter is available for purchase via ZOAEnergy.com and Amazon.com for pre-orders. Like the rest of ZOA’s energy drink portfolio, each 12 oz. can of Mango Splash and Green Apple contains 160mg of caffeine derived from tea and green coffee beans.
BAWLS Guarana is simplifying the buying process by offering the highly caffeinated premium soda as a multipack option at retail. The new BAWLS Guarana multi-pack is available in 3 flavors including BAWLS Guarana Original, Cherry, and Root Beer. All multi-packs include the signature 10oz. glass iconic bumpy bottle.
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.
Energy nutrition brand AminoLean has unveiled its newest flavor, the “GO-GETTER.” Each 12 oz. can boasts 200mg of caffeine derived from green tea leaves and features tasting notes of strawberry colada. AminoLean’s GO-GETTER is available for purchase via the brand’s website for $32.99 per 12-pack.
First teased at NACS last year, Pepsi-owned energy drink Rockstar has officially unveiled its latest creation, Rockstar Focus. Available in sev-
en flavors – White Peach, Lemon Lime, Orange Pineapple, Watermelon Kiwi, Mixed Berry, Passionfruit Mango and Honeydew Melon – each 12 oz. can boasts 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.
C4 has teamed up with ice pop company Popsicle to create four new zero sugar, limited edition energy drink flavors: Popsicle Cherry, Popsicle Grape, Popsicle Hawaiian Pineapple and Orange Creamsicle. All four varieties are powered by 200mg of caffeine and contain CarnoSyn to fuel performance. C4 x Popsicle Cherry, Grape and Hawaiian Pineapple are available on C4’s website for $27.99 per 12-pack of 16 oz. cans while it appears Creamsicle is a 7-Eleven exclusive for the next 12 months.
That’s hot! Alani Nu has teamed up with socialite Paris Hilton to create its latest energy drink flavor, Pink Slush. Each 12 oz. can of the strawberry cream soda-flavored beverage is packed with 200mg of caffeine and B vitamins. Pink Slush is also available in the brand’s pre-workout powder product, which also has 200mg of caffeine per serving.
Can cascara finally conquer energy? Startup brand Huxley is determined to find out with its new line of drinks inspired by nature. The three flavors — Tangerine Teton, Strawberry Sequoia, and Mango Mesa — feature 90 mg of natural caffeine each, plus L-theanine for relaxation.
Red Bull has often used its seasonal editions to test unique new flavors, and this year’s Summer Edition, Curuba Elderflower., certainly fits the bill. Sporting a lime green 12 oz. can, containing 26 grams of sugar each, the drink is the first from the brand to utilize curuba, also known as banana passionfruit.
G Fuel is hoping to take consumers on an excellent adventure with its latest energy formula 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.
Protein Proliferates
Even As People Drop Pounds
By Adrianne DeLucaIn the modern functional beverage era, products aligned with niche ingredients and attributes easily fall in and out of fashion. Even vital macronutrients such as carbohydrates and fats have been on the outs at times, but protein remains a nutritional evergreen: While the industry is well within a functional “protein plus” beverage wave, experts claim we may never find the point of “peak protein.”
“Protein continues to be a health halo,” emphasized Scott Dicker, senior director of market insight at SPINS. “As we see more and more consumers interested in health… they’re consuming more and more information around [protein] and it is changing a lot of their daily routine.”
That interest is reflected in increased sales and M&A activity: Total dollar sales for the liquid protein and meal replacement category totaled $5.3 billion, a 13.9% increase, according to recent Circana data for the 52-week period ending April 21, 2024. The growth was supported by significant volume/unit share gains of 11.2%.
Within that landscape, everyone from legacy, leading players like Bellring Brand’s Premier Protein to disruptive concepts like plant-focused Only What You Need (OWYN), which recently sold to Simply Good Foods, have seen upward volume momentum. Premier remains at the top, locking in over $1 billion in sales (+33%) for its shelf-stable milk protein and meal replacement products while volumes grew 24% and average prices increased 7.3% in the past year, according to Circana.
At the heart of the expansion is increased consumer awareness around the value of protein. While shakes have long served as the entry point for innovations designed around new dietary habits and health hacks, protein’s position for every person’s diet has expanded, giving it permission to tap newly interested, growing, slimming and aging populations.
“If I were to put my finger on one point of why it’s growing so fast, it is because we’re seeing an influx of new demographics – these are for women and then also for the aging population,” said Dicker. “It’s not just for young people. We’re seeing the increased importance of higher protein for aging populations to preserve muscle mass, which will keep them healthier, longer.”
Barb Stuckey, chief innovation and marketing officer at Mattson, also echoed this point by noting that protein beverages are growing alongside increasing consumer interest in longevity and lifespan, in addition to a rising use of GLP-1 drugs like Ozempic. As more consumers embrace healthforward mindsets in a post-pandemic world, protein’s appeal, and the category’s marketing efforts, are expanding the space further beyond muscle building and satiety claims to new groups and use occasions that have the ability to grow the entire segment.
“The marketing has moved away from having a bodybuilder bench pressing, to people going about their daily life – that’s really had an impact,” said Dicker. “We also see a lot of tailwinds for a lot of reasons: now there’s an increased demographic coming in, they’re interested in it for different reasons, they’re familiar with it, and you see it proliferating across the entire grocery store.”
Planting New Seeds
One novel aspect of the protein boom is that the source base of the protein has broadened to include more vegan materials. Overall, plant-based protein sales have held their own against animal-based counterparts, increasing 36.5%, compared to the animal-based subcategory’s 31% growth over the past year. Plant-based shake maker OWYN has generated over $69 million in total sales alone, a 119% jump as volumes grew 82% and average prices rose 20%.
Joshua Schall, a consultant who works with brands in the nutrition space, believes that many plant-based products have advanced to a point where consumers feel they are near parity in terms of flavor and texture to animal-based beverages. OWYN’s acquisition in April signals strong future growth potential for the segment, with prospects that have been enhanced by distribution and marketing efforts as well as a broadening consumer base.
“There’s an overarching secular trend towards people making more conscious decisions around animal products over plant products, and that’s not necessarily attached to this category, but just across CPG,” Schall said. “If you look at it over [a short term period], the overall consumption change is probably not that big, but if you look at it from an incremental 1% over long periods of time you make huge differences across a bunch of different categories.”
As OWYN built up its core consumer, it did not try to go after the typical plant-based shopper and worked to broaden its appeal beyond the natural channel, with the product and branding in line with conventional protein products. This position enabled OWYN to convert new consumers to both plant-based products and the protein category, Schall said.
“ There’s a lot of trends moving in the positive direction for plant based proteins,” Schall added. “Is it something that’s going to grow huge leaps and bounds year over year? Maybe not, but I think it’s one of those [segments] that does provide a consistent, probably above average compounded annual growth rate. It’s a good space to build in if you’re patient.”
Plant-based Proteins Bring Brands Across Category
Lines
According to Henry Kasindorf, as the segment has evolved, Remedy Organics, which was founded in 2017, has positioned itself around a variety of attributes from keto to gut health. But the brand’s latest innovation goes deep on protein. The newly launched Power Shakes variety ups Remedy’s original protein content to 20 grams per bottle via three indulgencealigned flavors: Cold Brew Latte, Vanilla Dream and Chocolate Fudge; the coffee flavor also contains 80 mg of caffeine.
“Not only are we leaning into these really clean, high protein beverages, but we’re doubling down,” said Kasindorf. “This line is really based on the data and insights that we have, it is what consumers really want and we’re excited about it. The retailer’s response to it has been very strong as well and [with this launch] we will have the shake with the highest levels of protein in the refrigerated category.”
The brand is positioned toward a natural shopper, but has nevertheless seen significant growth in the mass channel and is currently sold in 20,000 doors nationwide. Remedy has seen volume growth of 38% and dollar sales increase 36% in MULO compared to a year ago, according to Kasindorf. He said the brand’s flavor and functional innovation, as well as its added prebiotic and energizing benefits have allowed it to garner widespread appeal.
“When we launched we were doing well in natural channel retailers, but we didn’t know if it was going to work in more conventional channels,” said Kasindorf. “We continued to push the envelope relatively early in mass, in drug and c-stores and… it has worked everywhere.”
Even legacy players are turning to plants. Muscle Milk debuted its Muscle Milk Plant line earlier this year in three indulgent varieties made with 30 grams of pea, rice and canola-derived protein. Even though parent organization Cytosport (owned by PepsiCo) also produces plant-based protein shake Evolve, a spokesperson for Muscle Milk said that the new launch is a way to keep consumers shopping within the Muscle Milk “family.”
Innovation in the category is also being accelerated now that production line time has opened up after being largely constrained during the pandemic. Co-manufacturing capacity limitations hindered innovation activities during the pandemic, Schall said, but now that those bottlenecks have been cleared both large companies and startups have more opportunity and incentive to experiment.
“There’s already been a number of different announcements that have started to leak that [other brands] are working on RTD protein shakes or in development…these are brands that have been incubated and sitting there waiting to deploy some brand equity in a beverage format,” Schall hinted. “Within the next six to 12 months that will likely start to play out so 2025 looks pretty interesting.”
GLP-1 Drugs’ Impact On The Innovation Cycle
One other factor is expected to buoy protein drinks’ fortunes: the growth of GLP-1 drugs like Ozempic. Among GLP-1 drug users, the demand for convenient protein-packed products is anticipated to be strong, but there are other effects that will likely reverberate across the category.
“We’re talking about convenient nutrition and convenience is a big part of this whole
thing,” said Schall. “Just knowing that you need more protein is great, but then actually having the options to do it in a way that is not going to bend your typical lifestyle – that’s where these products play up even more because they can serve a purpose across the board for people that seek or need convenience.”
Dicker and Schall noted that consumers will increasingly reach for products that fill nutrient gaps – like superfood powders, green powders and multivitamins. He explained that protein products that have added fiber will also be important to this consumer demographic due to the impact these drugs have been reported to have on digestive function.
While these diet-drugs have created a new protein shake consumer demographic, legacy products are also being retrofitted to meet emerging needs. Atkins, which was designed around a low carb diet for weight loss, is now, nearly 35 years later, being revitalized for consumers using GLP-1 drugs like Ozempic and seeking a protein boost to combat excessive muscle and weight loss. This expanding consumer group will also likely drive a category expansion, said Stuckey. “My gut is that this is a new consumer to
the category – I don’t think these consumers were protein shake users until they started to go on these drugs and went to the doctor [as] they’re rapidly losing weight rapidly and their doctor said, ‘You need to eat more protein,” said Stuckey. “One of the doctors we talked to said, ‘I cannot believe I’m actually suggesting that people drink protein shakes. But I am suggesting that to these people [using GLP-1s].”
Protein Shakes Walked So Protein Water Could Wander In Overall, the interest in protein – whether it is for muscle building, longevity, a complement to weight loss or other interests – has pushed protein contents in products to new heights. High and ultra-high protein products are finding their way to market with some containing upwards of 30 grams per serving; brands like OWYN, Premier, Huel, Fairlife and Muscle Milk all have high protein products. Schall believes there may now be more opportunity to capture consumers at the lower end of the spectrum, and with more refreshing, less dessert-heavy flavors.
The desire for less sugar-intensive products has led to a new wave of protein beverages, sometimes referred to as protein waters. Vita Coco launched its PWR LIFT brand in 2022, a clear sugar-free liquid infused with whey, that comes in four flavors: Berry Strawberry, Lemon Lime, Blueberry Pomegranate and Orange Mango.
This is not a novel category. Brands such as Protein2o have been around since 2013 and garnered nearly $7 million in total dollar sales in the past year, according to Circana. But Stuckey emphasized that the whey protein previously used in
these types of products produced an unpleasant mouthfeel –a challenge that has been mitigated as industry stakeholders made significant investments in recent years.
Protein waters may also be important to the aforementioned GLP-1 crowd, who are seeking increased protein and hydration products, according to a recent study among 70 GLP-1 users conducted by Mattson. Though these products may meet the emerging needs of the niche consumer demographic, Stuckey and Schall believe they have widespread appeal and expect to see the protein water format expand across consumer demographics.
Stuckey noted that while the whey protein material used in these formulations have been improved, there isn’t currently a comparable plant-based protein option available that is palatable in clear liquids, leaving room for future disruption in the emerging category.
“The plant based proteins that have been acidified in this way to allow for refreshing clear averages are almost inedible,” Stuckey said. “They are not ready for primetime yet…so there’s a lot of opportunity for suppliers here. And this is segues into the Ozempic opportunity because what we hear from the patients is that they don’t feel good when they eat these really big creamy shakes. They’re having trouble with feeling full already…so that’s where these clear protein beverages can really play a role.”
WEIGHT CONTROL/NUTRITIONALS LIQ/PWD
RFG WEIGHT CONTROL/NUTRITIONALS LIQ/PWD
Protein2o continues to dominate the clear protein beverage market, solidifying its #1 position with impressive growth across all channels. Consumers continue to search for Protein2o, with online sales on Amazon surging 35% yearover-year fueled by a stellar 4.5-star average rating from over 20,000 reviews. The brand’s brick-and-mortar presence is flourishing as well, with expanding distribution at major retailers like Walmart, Meijer, Hy-Vee, and Giant.
PWR LIFT launched retail distribution this March in New York City, where parent company The Vita Coco Company is headquartered. The brand has already gained placements in Target, CVS, Walmart, and Morton Williams stores throughout Metro New York, along with hundreds of bodegas, regional grocers, and gyms.
Drink Harlo has launched a first-of-its-kind 3-in-1 performance drink mix that combines electrolytes, collagen, and creatine, made with premium ingredients including Pink Himalayan Sea Salt, to keep you hydrated, energized, and recovering faster. Available in flavors Citrus Salt, Raspberry Salt, and Orange Salt.
OWYN debuted its Pro Elite Protein Powder in April, which contains 30 grams of complete protein and absolutely zero sugar. OWYN Pro Elite Protein Powders provide nutritionally superior fuel in two classic flavors: Chocolate and Vanilla. Sweetened only with monk fruit, the protein powder balances flavor and function for muscle-building protein with added digestive and gut health benefits.
G Fuel has made its first foray into the protein category with the launch of its newest product line, G Fuel Energy + Protein Formula. Available in three flavors – Chocolate, Café Mocha, and French Vanilla Latte – the new offering is a zero-sugar powder packed with 15 grams of protein and 140mg of caffeine per serving.
Else Nutrition has unveiled its latest innovation, a line of plant-based ready-to-drink protein shakes designed for kids ages two and up. Available in two classic flavors at launch – Chocolate and Vanilla – feature 80% whole food including almonds, buckwheat and tapioca. Each 8 oz. carton is loaded with 9 grams of protein and 25 essential vitamins and minerals. Else Nutrition’s Plant-Powered Completed Nutrition Shakes are available online at Amazon and Walmart and in-store at Wegmans.
PepsiCo-owned protein beverage brand Muscle Milk is offering health-conscious consumers a new plant-based option with Muscle Milk Plant Protein ready-to-drink shakes. The shakes contain 25 to 30 grams of protein per container and come in Chocolate and Caramel Vanilla Flavors. The launch is being backed by an ad campaign, dubbed “Strength for it All,” featuring Major League Baseball star Julio Rodriguez, soccer icon Christian Pulisic and WNBA All-Star Candace Parker.
REBBL , the original plant-powered functional beverage brand, announced the expansion of its Protein category with the debut of REBBL Protein Shakes, created for consumers of all types. Powered by a firstof-its-kind plant protein blend, REBBL’s upcoming line of Protein Shakes deliver on the delicious, sustainable, and functional demands of today. The proprietary protein blend featuring upcycle-certified non-GMO barley contains 26 grams of protein and only 4 grams of sugar.
Los Angeles-based startup VUUM produces a line of functional sparkling drinks made with 135 mg of caffeine from guarana seed and green tea, 10 grams of pea protein, Vitamins B12 and D, and amino acids such as LTheanine, L-Leucine, L-Valine, L-Citrulline and L-Carnitine. The brand has rolled out to Erewhon and Central Market stores in Southern California, and is also available online direct-to-consumer and with Amazon.
Suja Organic has gone back into protein, launching a line of plant-based Organic Protein Shakes. Available in three flavors – Vanilla Cinnamon, Chocolate and Coffee Bean – each 12 oz. shake delivers 16g of plant-based protein derived from peas, rice and hemp. The drink’s other ingredients include almond milk, coconut cream, acacia fiber, iron, calcium, potassium and vitamins A, B, C, D and E.
The evocative taste of cereal milk is no longer just a core childhood memory thanks to Koia, leaders in low-sugar, plant-based protein beverages, with the release of its line of Cereal protein shakes. Expanding upon its rainbow of flavor offerings, the three new cereal-soaked SKUs deliver Koia’s signature ready-to-drink protein-packed shakes in deliciously familiar flavors.
Hard Kombucha’s Path to Success
SLOW, BUT POSSIBLE
By: Zoe LicataFive years ago, hard kombucha was supposed to be the next big “fourth category” product, building off the initial momentum of hard seltzer, but promising bolder flavors and potential gut health benefits.
The fermented beverage, made mainly with tea, sugar, and a symbiotic culture of bacteria and yeast (SCOBY), accounted for $3.8 million in dollar sales in Circana-tracked off-premise channels in 2018, more than double the previous year. Meanwhile, the overall kombucha segment was a $1.2 billion industry in the U.S., and was on pace to be a $5.45 billion industry by 2025, according to Grand View Research, Inc.
By 2020, total kombucha had grown to just $1.8 billion, and hard kombucha made up about $12 million of that. And in the past two years, hard kombucha has faced declining numbers, even past the initial effects of the COVID-19 pandemic.
The apparent stall of the segment is not a mark of failure, but rather a harsh mix of bad timing, off-point consumer marketing strategy, and unrealistic early growth expectations, according to many still playing in the segment. Slow and steady might still win out, they believe.
“I saw some brands trying to go national and then failing and then coming back to their original markets,” NOVA Easy Kombucha founder Tiago Carneiro said. “They tried to buy market expansion, but the velocities weren’t there.”
Carneiro, who is also the creator of NOVO Brazil Brewing, launched NOVA during the initial hard kombucha boom in 2018. The brand is headquartered in San Diego, California, part of the largest hard kombucha market in terms of volume and consumer demand.
Despite the push to go national in 2018/2019, NOVA’s strategy is to focus locally, creating a brand that connects to consumers directly in San Diego, rather than marketing to a broader audience. Carneiro is also highly critical of the early strategies embraced by producers, retailers, and investors when it came to expanding hard kombucha.
“The market was not growing – it was growing because you were forcing the growth,” Carneiro said of the initial exponential growth of the segment. “Once you don’t have money anymore, you cannot do big promotions, you don’t do big price discounts anymore and then people stopped [buying].
“You need to build a base learning first of consumers, before you do bigger jumps to go national,” he continued.
Carneiro blamed much of hard kombucha’s folly on an influx of investment in initial adopters to the category, which spurred quick expansion and growth before consumers fully understood what hard kombucha was.
“Imagine in the ’80s, you got all these venture capital funds and all this money and people flooded money to accelerate craft [beer] … doesn’t matter, [the growth] would not happen in the ’80s how it is right now,” he said. “You need time for a category to be measured and people to understand what it is and accept the product – you cannot buy this time.”
Kombucha’s Reputation Problem
Non-alcoholic kombucha brands highlight the health-centric characteristics of the beverage, including high levels of probiotics. Initial alcoholized versions of the drink leaned into the “better-for-you” image. But marketing alcohol as “healthy” is hard (and a great way to open yourself up to legal action).
“We need to be responsible as brand owners to be transparent with people and tell them that drinking isn’t healthy – you’re not going to be functionally better for drinking this,” said Mate Maker co-founder Justin Medcraft.
“The category back then was really struggling with this messaging, because it was so dependent on how kombucha had established itself through the functionality,” he continued. “That’s been pushed so much as a core message where people don’t care.”
Medcraft sees Mate Maker as both a “fast mover and a fast follower” in the hard kombucha space. The company was a fast mover in Australia, where it was founded in 2022 – one of the first hard kombucha brands in the country, as Australia is typically about “five years behind on trends,” Medcraft said.
In 2023, due to both personal circumstances and the extra education needed to market hard kombucha Down Under, Mate Maker became a “fast follower” and launched the company in the U.S., headquartered in San Diego. Like NOVA, Mate Maker is also focused on its home market of Southern California for now, in large part due to hard kombucha’s barriers to entry on a national scale.
“The tension that we’re looking at at the moment now is hard kombucha still has a bit of a stereotype attached to it,” Medcraft said. “There’s two very different motivations for kombucha and hard kombucha – the reason people buy them [and] the occasion is different.”
The key for hard kombucha to return to growth is to attach itself to those characteristics that factor into consumers’ buying decisions, including flavor and quality, Medcraft said.
“We’re looking through this lens of mainstream drinkers [and] what are they looking for,” Medcraft said. “People are wanting refreshment, they’re wanting flavor, they’re wanting to knock off work and have a fruity refreshing beverage with their mates.
“Whether or not the word kombucha has a lot of legacy attached to it, we’re really focused on not talking the kombucha language,” he continued. We’re talking macros, flavor, refreshment, sustainability … all of those things that time and time again worked for the alcohol category.”
Medcraft has first-hand knowledge of what has previously worked for bev-alc. His resume includes more than six years at Diageo, dedicated to managing Smirnoff, followed by time at Pabst and Firestone Walker. Now in hard kombucha, he is still
looking at what’s working outside of the segment to guide Mate Maker’s growth.
“There’s opportunity for us to look at why are the other categories winning,” Medcraft said. “Why is [Gallo’s] High Noon doing so well? Why did hazy IPA reinvigorate the craft category? Because it focused on flavor, it focused on real fruit juice and bringing ingredients that opened up that product to a much wider drinking set.”
“Better-for-you” is also a popular trend in bev-alc, but it’s different from what hard kombucha was trying to do before, according to Giuseppe Infusino, chief investment officer at InvestBev, which made a seven-figure investment in hard kombucha maker JuneShine earlier this year.
“I have a thesis or belief – and I think that it’s been proven out – that better-for-you is a subjective thing, and there’s actually a trend behind that trend, of transparency, that’s much more important to today’s consumer,” Infusino said. “Hard kombucha as a general truth has some of these underlying components that might appeal to this transparent-seeking consumer and that will stay on trend and continue to grow.”
How much a hard kombucha brand should still lean into the better-for-you trend is dependent on the brand, but as a broad rule, “leaning too hard” is not the right move, according to Infusino.
“When you’re in the social imbibing environment [as a consumer], you want to be a little more thoughtful, more conscious, but you don’t want it in your face around health consequences, [and the] pros and cons of alcohol,” he said. “As a tie-breaking component of, ‘Should I drink this, versus drinking that?” I think it’s helpful. But as a reason to choose this one thing, I don’t think you should be leading with that.”
Hard kombucha and hard tea maker Jiant, also based out of California, has taken that flavor-first approach when marketing its offerings, including a line of cocktail-inspired hard kombuchas, which take advantage of consumer demand for ready-to-drink cocktails (RTDs) and higher ABV.
Jiant’s Taco Tuesday Pineapple Spicy Margarita (8% ABV) has grown +50% in the last 52 weeks, and it’s due to the brands emphasis on flavor, as the “kombucha aspect kind of blurs in the background,” according to Jiant co-founder Larry Haertel Jr.
“The majority of people who pick that up don’t even know that it’s a hard kombucha and they enjoy it, and then discover later,” Haertel Jr. said.
“We’re all so close to it,” he said of the bev-alc industry. “We talk about categories and talk about SKUs, we talk about packages, size format, all those things. But the consumer, they’re just shopping by flavor and what looks good to them. So we always have to remind ourselves to put ourselves in the shoes of the consumer.”
Jiant launched as a hard kombucha company in 2018, but in recent years has capitalized on hard tea demand, and finished 2023 by closing a $6 million Series A capital raise. Hard tea also became the majority of Jiant’s business in the second half of 2023.
“What we’ve found with hard tea is it just works in so many more channels – whether it’s conventional grocery, or c-store or venues – and it works in more geographies than hard kombucha does,” Haertel Jr. said. “It’s just a bigger category. There’s already some built-in category awareness thanks to brands like Twisted Tea and thanks to iced tea in general being a household type of product.”
However, Jiant has no plans to step away from hard kombucha, and has been able to find growth for its offerings
outside of just California. Its hard kombucha is distributed in 25 states, with its core consumers in California, Colorado and New York. The company has also found growth in other mountain regions, including Utah, where the company sees some of its highest rate of sale.
A huge opportunity hard kombucha gives for Jiant and its retail partners is capitalizing on RTD trends in markets and channels where spirits-based offerings can’t be sold.
“When we look at a grocery store in New York, we’re able to bring that consumer and that retailer a cocktail-inspired flavor that’s not spirit-based, then we’re adding value to their shelves and to that consumer,” Haertel Jr. said. “And also hopefully having them discover something new that they really enjoyed and hopefully they’ll discover all of our other products as well.”
“Our approach is to lean in on the quality and the cleanness of the ingredients, particularly compared to hard seltzer, which is made in a lab,” Jiant co-founder Aaron Telch added. “There’s a broader base of consumers where that’s important, so that’s the messaging we lean on.”
Brand is Key (Especially if You Want Funding)
So what could lead to a revival of the hard kombucha segment? Multiple suppliers in the market think that strong brands will be the key to gaining the attention of consumers, and to potential investors.
“When it comes to investment and the venture community and how they’re looking at these sorts of opportunities, it’s really not about the product, it’s about the brand stuff – the people behind the brand – and coming up with these long-term plans to build an audience that is captivated by your products and will continue to support you,” said Haertel, who also noted that many Jiant consumers are now discovering the brand through hard tea, and then staying loyal to both its hard tea and hard kombucha products through the brand’s reputation.
FLAVORED MALT BEVERAGES
“Hard kombucha is definitely a bad word in the venture community,” Haertel continued. “One that we certainly don’t put in the subject line of any emails that we’re sending out.”
Investors haven’t completely stalled their interest in hard kombucha, but industry members aren’t seeing as many eightfigure investment rounds as they were just three years ago.
“The fervor that was there a couple years ago is not as pervasive as it was, which is somewhat healthy for the market, because brands that unfortunately shouldn’t necessarily exist, won’t, and won’t get the capital,” Infusino said. “And then they also won’t compete with the brands that should exist, so the cream will rise to the top a little bit and there’ll be a little bit of a culling of the herd.
“That’ll be, from an investor perspective, helpful, from a distributor perspective, helpful, and from a retailer perspective, helpful, as everyone’s not being inundated with options,” he continued.
The change in investor interest isn’t as much a strike against hard kombucha, but rather greater hesitancy across all bevalc investment, according to Infusino, as trends move quicker and brands appear less stable. It has also forced companies to be more on top of the financial structure of their business and to become strong on a smaller scale, so they can be more selfsustaining and not rely on outside capital.
“I’m seeing brands tightening the belt a little bit in terms of spend and growth, and thinking about their business as more of an ongoing concern, as opposed to ‘I’m just burning capital to go raise again, to burn capital again, to then ultimately be acquired,” Infusino said.
InvestBev’s interest in JuneShine was not solely based on enthusiasm for the California brand’s hard kombucha offerings, or even its spirits-based canned cocktails, which it launched in 2023, but rather the reputation of the JuneShine brand and the overall strength of its entire portfolio.
That portfolio grew even larger after InvestBev’s investment with the launch of Easy Rider, a light lager brand, and JuneShine’s acquisition of hard kombucha and flavored malt beverage maker Flying Embers. The all-stock deal brings 63% of all hard kombucha sold in the U.S. under one roof, with the combined portfolio exceeding 116,000 barrels, or 1.6 million cases, annually.
“If I were starting JuneShine today, I think it would be difficult to raise the money that we did,” JuneShine co-founder and chief marketing officer Forrest Dein said.
Unlike the majority of the players in the hard kombucha space, JuneShine has been able to find growth on a more national scale, making the company the 14th largest beyond beer and spiritsbased RTD brand family in the country, the company said at the time of the deal. Flying Embers has only strengthened JuneShine’s national reach, according to Dein, combining JuneShine’s strength in New York, Colorado and the Northwest with Flying Embers’ dominating presence in North Carolina, Austin, Texas, Pennsylvania and other areas in the Midwest.
“We’ve done the hard work of investing in building a national brand, and so has Flying Embers to some extent, so that’s really what sets us two apart, what we’ve done to win in a space where people don’t know what the category is,” Dein said.
“It would be tricky for a new hard kombucha brand to scale nationally today, just because of how capital intensive it is and how tricky it is to raise capital right now, which is a big reason
why we wanted to get profitable,” he added. “We’re lucky now to be at a scale where we can be profitable and stand on our own two feet and not rely just on investors.”
Being Small and Regional Isn’t A Bad Thing
Participants in the hard kombucha segment all agree that hard kombucha has a future, and has plenty of potential to become a larger segment. But that takes time.
So what happens to the segment in the meantime?
There are two leading strategies. The first is to take the route of those like NOVA and Mate Maker and stay focused on growing the brand on a small, regional scale. Even in California, the leading and most crowded hard kombucha market, there are still white spaces within the segment.
“There’s still people that haven’t tried it,” Medcraft said. “California is a huge place. It’s the fifth largest economy on the planet. I look at California like a country – it’s double the size in population of Australia.”
NOVA has prioritized connecting with the San Diego community through sports partnerships, integrating hard kombucha into more occasions than consumers may have seen in the past, including partnering with the San Diego Padres Major League Baseball team and San Diego State University (SDSU) Men’s Basketball.
The latter, which includes supporting a Name, Image and Likeness (NIL) fund for SDSU student athletes, has also helped NOVA connect with the youngest legal-drinking-age (LDA) consumers, and learn about their flavor preferences, with LDA players helping forumate a collaboration flavor that was NOVA’s No. 1 brand at retail during the basketball season.
“It was something that started relatively with the consumer and then we created the flavor, not the opposite, [where] we in the industry tried to put out the flavor that we’re saying will communicate with them,” Carneiro said.
“I was always very focused on the quality, the liquids and improving our flavors and improving our relationship with our community, and that’s why I think we keep growing,” he added.
The regional connection isn’t exclusive to California either. Brands such as Walker Brothers have found success outside of that largest market. The Nashville, Tennessee-based company, founded in 2019, has focused on just a few markets in the
south. In the last 52 weeks, ending April 20, the brand recorded double-digit dollar sales (+47.1%) and volume (+56.2%) growth in NIQ-tracked off-premise channels (total U.S. xAOC + liquor plus + convenience).
“It’s difficult because it’s hard [and] it’s expensive to make in a smaller scale,” Infusino said. “So if you somehow can optimize the production side of it and have unit economics that makes sense, and then stay small enough and regional enough that you don’t need a huge sales team, you don’t need a huge broad marketing [team], you may be able to do that.”
The second direction is for hard kombucha makers to branch out into other segments and build brand reputation while they wait for consumers to be ready for hard kombucha.
Chicago-based Luna Bay Booch Co., a female-founded hard kombucha brand that recorded record expansion in 2022, has struggled in recent scan data (dollar sales -40.7% in the last 52-weeks). Pivoting, the company launched its first innovation outside of hard kombucha last year: Clubhouse Sparkling Hard Tea (5% ABV), inspired by classic cocktail flavors. And in November, the company launched a line of 0% ABV tea-based mocktails, capitalizing on consumers interest in RTDs and non-alc.
“I’m watching how people’s drinking habits are becoming more diverse – and I am proud of how Luna Bay is innovating for more occasions,” Luna Bay CEO Bridget Connelly said in a press release at the time of the launch. “If someone chooses to not drink, we want them to feel included and be a part of the celebration with a booze-free option in hand.”
Medcraft envisions many brands turning into brand platforms, where consumers know about a company based on its quality and ingredients, but have a variety of products to choose from.
“Consumer trends and tastes are changing so rapidly – just because one product or one category is hot now, doesn’t mean that it’s going to be hot in the next three years,” Medcraft said. “We’ve got innovation plans for the next three years really thinking about how do we keep delivering on an occasion that’s growing and the motivations, which are refreshment and flavor, and then take that as our platform and launch lots of different products.
“The speed at which you do that is the trick,” he added. “It can be really tempting to try and launch lots of different products really, really quickly and hope that they stick. But that’s a really dangerous place to be in.”
“Would we have made the investment in Juneshine if they were just hard kombucha?I think the answer would be ‘probably not,’” Infusino said. “Hard kombucha has proven to be a decent sized category, but it’s never going to overtake beer. It grew quickly and now it’s going to grow incrementally.”
JuneShine itself hopes to follow the trajectory of Boston Beer Company, with the potential to be “the Boston Beer of the Southwest.”
“We don’t just want to chase trends, we want to build value over a long period of time,” Dein said.
“We really want to be the Angry Orchard of this category, where in 25 years people are like ‘Holy shit, hard kombucha is a huge category and JuneShine has 70% of it, how did that happen?” he added. “And it’s because we just made consistently delicious quality products for 20 years. That’s how you build valuable brands and big categories. It’s rare that you see the White Claw, $2 billion growth in three years.”
Jack Daniel’s Country Cocktails has announced the launch of its new hard tea, a nod to its Southern heritage, yet designed to meet the needs of the modern drinker. The cocktails perfectly combine black tea, ripe, true-to-fruit flavor, and a balanced, sweet finish. Jack Daniel’s Country Cocktails Hard Tea will debut in four flavors, Original, Peach, Raspberry, and Blackberry, giving drinkers a bold and refreshing quality experience for those who know what tea is all about.
Celebrating local produce and small farmers, Mate Maker Co. and Harland Brewing Co., two rising San Diego breweries have partnered for a limited release of a Hard Kombucha and Australian XPA, inspired by locally sourced juicy citrus fruit from Old Grove Farms. Mate Maker is always searching for local growers from where it can source the juiciest and most delicious fruit, and its new Secret Citrus Hard Kombucha flavor showcases the rich, sweet, and tart flavors of Old Grove’s Redlands Navel Oranges.
The Smirnoff ICE flavor revolution continues with new SMASH Tea boldly combining brewed tea flavor with two tasty varieties – peach and classic lemon. Each can is available nationwide at a MSRP of $1.99 for 16oz, and $2.49 for 23.5oz.
Seagram’s Escapes introduces Refreshers, a delicious new line of flavored malt beverages sweetened with cane sugar and real fruit juice. Available now in four different tropical flavors, Refreshers offers the perfect balance of refreshment and flavor to satisfy everyone at your party or backyard get together.
el Jimador Spiked Bebidas is proud to announce its nationwide launch after a successful test launch in limited states in 2023. el Jimador Spiked Bebidas are deliciously crisp malt flavored beverages serving up vibrant, tequila inspired flavors perfect for any occasion.
Guy Fieri is bringing his fervor for flavor and signature spikey hair to the adult beverage game with the launch of Flavortown Spiked, a new line of premium, flavored malt beverages. The line’s debut recipe, Flavortown Spiked Fruit Punch, is a next-level boozy refresher that delivers a liquid symphony of fruit sensations and bold, out-of-this-world taste. Inspired by classic fruit punch and made with real cranberry and orange juices, its bright notes of fresh berries and fruit infuse every sip at 6% ABV.
Twisted Tea Hard Iced Tea has taken things to a whole new level as the nation’s No. 1 hard iced tea brand continues to give fans more ways to be a part of the Twisted Tea party than ever before. The latest? The brand’s first-ever high-ABV test launch: Twisted Tea Extreme, an 8% take on its oh-so-smooth and damn delicious hard iced tea line-up. Made with real brewed tea and no carbonation, Twisted Tea Extreme is available in single serve cans in two flavors – Lemon and Blue Razz.
Shock Top has gone beyond beer with the launch of Shock Top LiiT, a 9% ABV noncarbonated hard tea. Shock Top Liit will be available in three flavors – Peach, Raspberry and Original Lemon – and sold in 12 oz. can 6-packs, variety and 19.2 oz. singles.
Mike’s Hard Lemonade has introduced Mike’s Limonada Fresca, a refreshing new twist on traditional Mexican Aguas Frescas recipes with a rush of lime and lemon flavors sourced from family-owned farms. The brand blends its luscious citrus with real juice and balances it with natural agave nectar. Mike’s Limonada Fresca is a flavor breakthrough in the brand’s relentless quest to craft the world’s best-tasting hard lemonades and a way to enjoy the lively zest of Mexican street cart drinks in your own home.
Lift Bridge has debuted its Grape Ape & New Cocktail Series Variety Pack! Lift Bridge is bringing a brand new lineup of classic dive bar cocktails to the market with their new Cocktail Series Variety Pack of Premium Malt Beverages. The flavors are bolder than traditional hard seltzers allowing us to better capture the experience of the classic cocktails that these beverages are inspired by. Grape Ape, Cosmo, Paloma, and Lemondrop are all full-flavored and as bright and colorful as the packaging that contains them.
Just in time for the warmer months ahead, Captain Morgan is officially introducing its newest ready-to-drink lineup, Captain Morgan Sliced. Captain Morgan Sliced is a line of cocktail-inspired malt beverages with an exciting range that goes all-in on flavor and adventure. Each can of Captain Morgan Sliced balances convenience and deliciousness, and there’s something we’ve known since the dawn of bread… sliced makes everything more delicious, exciting, and adventurous.
RTD Alcohol Beverage Guide • 2024
Manuka Honey Natural Sweetener
Avatar Manuka Honey NZ.
Elevate your RTD with NZ manuka honey’s unique and rich flavour. Avatar Honey NZ Ltd* specializes in bulk liquid and powdered manuka honey, world-renowned for its health benefits and a great alternative to traditional & alternative sweeteners.
Bahamadise Cocktails
Experience
Bahamadise
Cocktails: Authentic Bahamian beverages crafted with love for nearly 4 years. From tropical cocktails to infused spirits like Sky Juice, Guava Duff, Baileys, Coffee, Pumpkin Spice, and more, savor the taste of paradise.
Betty Booze Sparkling Tequila with Smoky Pineapple
Betty Booze
Blake Lively's Betty Booze pairs the freshest fruits, spices, herbs, and more with real spirits and bubbles to create unmatched, unmistakably delicious drinks. The flavors include two bourbon- and three tequila-infused gourmet sparkling beverages.
Gallo
Celebrating it's 10 year anniversary this summer, Fishers will now be available in Chicago metro area starting in June. Inspired by our favorite easy-living lemonade cocktails, this female-founded RTD brand is available in 4 packs and variety 8 packs
Crystal Head Vodka, part of the Infinium Spirits portfolio, launched two ready-to-drink cocktails in sleek, convenient cans: the Espresso Martini and the Cosmopolitan. This release marks Crystal Head’s debut in the world of canned cocktails.
Embodying the spirit of creativity and excellence, Crystal Head Vodka’s new canned cocktails boast the brand’s original vodka crafted from Canadian corn. Both cocktails are blended with premium ingredients, delivering a perfectly balanced craft-quality cocktail experience without the fuss.
Each sleek black 100 mL can (20%alc./ vol.) delivers skillfully mixed cocktails and the premium taste of Crystal Head Vodka directly to consumers’ homes. With every sip, individuals experience the brand’s commitment to creativity and quality, inspiring them to embrace their inner Creative Spirit.
For coffee lovers, The Espresso Martini captures the essence of a freshly brewed coffee-infused masterpiece, blending Crystal Head’s Original vodka with premium nitro-brewed coffee, natural chocolate flavor and a touch of agave to add a hint of sweetness for a decadent pick-me-up perfect for any occasion. Designed for those who crave zest and freshness, the Cosmopolitan offers a bright mix of Crystal Head’s Original vodka, pure cranberry juice, natural lime extract, and triple sec, all coming together for a refreshing burst on a classic Cosmo. Whether you’re conquering brunch, prepping for a night out, or simply indulging in a midday treat, in a cocktail shaker, shake up and pour into a chilled martini glass for a perfect serve every time!
Mighty Swell Spirited Ready to Drink, Ready to Disco Mighty Swell
Introducing Teabird: The All American, All Natural, Authentic Hard Tea
Spirited Brands Corp.
Good Omen Bottling, LLC
Our NEW 4% ABV brew will take your taste buds for a walk on the wild side. Featuring 2 innovative flavors that mimic classic cocktails, Persephone and The Mule, these probiotic cocktails are the perfect fusion of function and unbeatable flavor!
Mom Water
Meet SusanStrawberry Kiwi Vodka Water. That’s right - no carbonation. Mom Water has zero sugar, zero carbs, and no artificial flavors or preservatives. It's light, smooth, and 4.5% ABV; the perfect drink for your summer.
SABÉ Beverages
SABÉ's range of higher ABV canned cocktails are formulated to deliver a true cocktail experience. New to the SABÉ portfolio is the 500ml Margarita, joining the fastselling 500ml Moscow Mule and 500ml Mojito. Available to wine licensees!
Las Vegas Inspired Nitrogen-Infused Ready-To-Drink Espresso Martini
Spark Plug
A modern reinterpretation of the beloved espresso martini, this libation combines the finest Arabica Coffee, Premium Vodka, Madagascar Vanilla, and Pure Cane Sugar resulting in an explosion of exceptional flavors with nitro-infusion and a 20% ABV.
Give ‘Em The Bird: The All American, All Natural, Authentic Hard Tea
TEABIRD HARD TEA
At only 110 calories & 5 grams of sugar, every sip is a toast to freedom and authenticity. Crafted with 100% All Natural Ingredients, TEABIRD is the perfect blend of real brewed black tea, a touch of raw cane sugar, and pure American spring water.
PA-Produced, Spirit-Based, RTD Canned
Craft Cocktails at 12.5% ABV
Top Dog Cocktails
Top Dog Cocktails are high-end, restaurantquality RTD canned craft cocktails at 12.5% ABV that you can enjoy at home. The Variety 8-Packs feature 2 cans of each flavor: Blood Orange Margarita, Whiskey Lemonade, Peach Mango Tea, and the Greyhound.
Tip Top Proper Cocktails
Proper cocktails are a rare find in the RTD space. Tip Top’s collection of 10+ fullproof classic cocktails in 100ml cans use real spirits and traditional recipes so that Old Fashioned, Margarita or Mai Tai tastes like it just came off the bar.
Two Chicks cocktails are sparkling RTD cocktails. Original flavor combinations, each cocktail is made with an innovative blend of premium spirits and all-natural fruit and botanicals. They are gluten free, vegan friendly and low alcohol (5% ABV).
Cans Supplied Nationwide
Makes the World Taste Better
For over 50 years, we've traveled the world to connect people with the finest products. At A. Holliday & Company, we source, test, and ship every product we carry. We supply bulk tea varieties (extracts & leaf), coffees (extracts), antioxidants, herbal & superfruit extracts, natural caffeine, polyphenols, EGCG, Rooibos, coconut water powder, and much more.
As a flavor manufacturer abelei creates delicious, application-specific flavors assisting our clients in getting to market faster with flavorings that fit their product requirements. abelei specializes in creating great-tasting sweet brown, citrus fruit, soft fruit and other top-note flavors perfect for the beverage, food, dairy, confectionery, health & nutrition, and pet industries.
Allen Flavors Inc. is a privately owned, dynamic, innovative leader in the food and beverage industry. We offer an array of specialized services well beyond that of a typical flavor house. We consistently provide our customers with a library of high-performance, great-tasting traditional flavors, including the industry’s broadest and most rapidly growing collection of certified organic flavors.
Here for Your Testing Needs!
AZ Laboratories LLC
We are a third party testing laboratory located in Tempe, Arizona, and have over 12 years of experience of testing for a variety of products, from beverages, to food, to supplements testing, we have it covered. Feel free to reach out to us and we will have someone get back to you right away with your testing inquiries. We would love to be your trusting laboratory partner for your needs.
We are trusted by entrepreneurs & established brands alike to commercialize their beverages. Our product development & commercialization knowledge, manufacturing relationships & global sourcing capabilities provide the expertise your RTD brand needs to succeed. Whether you’re looking for ingredients & packaging, or need support with development, regulatory, pilot production, or more, we can help.
CanSource is your one-stop-shop for beverage cans. We supply Sleeved, Printed & Brite cans nationwide - call us to build your supply plan for the year. We are here to ensure your cans look as good as your beverage tastes.
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!
FFP’s clean label beverage ingredient portfolio provides a variety of functional benefits, all while providing great, refreshing taste. From tea extracts, herbal extracts and coffee extracts, and concentrates to fermented vegetable juice concentrates, fruit and vegetable juice powders, and natural flavors, FFP has everything beverage manufacturers like you need to make delicious beverage products.
Award-Winning Bulk Spirits Provider
Endless West
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.
Partner with FlavorSum to get the TTB-approved flavors you need and readily available FIDS through FlavorSum Access. Our mission at FlavorSum is to become a valued member of your team and expedite your speed to market. From ideation to commercialization, we will work closely with you to bring your delicious beverage innovation to life!
At Creamy Creation we develop and produce a wide range of cream-based alcoholic beverages and RTDs for customers around the world; from traditional cream liqueurs, vegan, oats, and egg nog options to mixable creams, as well as no- and low-alcohol drinks. We are the global leader in the B2B cream liqueur segment, while also specializing in other emulsified alcoholic beverages. From ingredient solutions to tailor-made formulations, concept development & product launch support, we work with our customers to bring their ideas to life. To ensure a smooth launch, we offer support every step of the way by providing market and regulatory knowledge, quality assurance and technical sales support.
Our story started in 1979, in the heart of dairy country in the Netherlands and expanded from there. Flash forward to today, we have production facilities in both Rijkevoort, the Netherlands and Batavia, New York and a sales team that covers every corner of the globe.
Have a great idea for a beverage? Flavorman can help you bring it to life. Own your custom formula and benefit from value-added services and resources designed for your success—everything from R&D and shelf life testing, to regulatory assistance, pre-production planning, and more. With over 30 years in the business, Flavorman is the best partner to help you change what the world is drinking.
Get ready to shake things up with Forté! Dive into a world of flavor as our passionate flavor chemists help you whip up a beverage that's all about your unique taste. Your vision, our expertise—let's mix, mingle, and make some magic. Ready to turn your dream drink into a clink-worthy reality? Let's create!
Franklin Baker, Inc.
Beverage flavors are the liquid poetry that transforms a simple sip into a sensory experience. Embrace the world of Flavorcan and let your beverages become a symphony of taste. Elevate, innovate, and flavor your moments – start your journey with Flavorcan. Contact us today at info@flavorcan.ca to request a flavor sample to try in your latest beverage idea.
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. Coconut Ingredients
GNT USA, LLC
Plant-Based Colors
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.
G3 Enterprises
G3, a leading packaging and logistics provider, offers cans and ends with brite cans sold by the pallet and printed cans 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.
Prickly Pear strengthens the Immune System. It is been attributed with healing properties since it is rich in Bioflavonoids that have strong antioxidant properties and give this fruit its distinctive bright red-violet color, and help the body detoxify and reduce inflammation. GAIA fruits is your trusted supplier of prickly pear puree and concentrate as a functional ingredient with an exotic flavor
Inc.
Ensure your products’ success with the innovative touch of Global Essence! A leading supplier of premium-quality ingredients, including organics, to the flavor, food, beverage, and allied industries. Convenient staff and warehouse facilities located in the United States, Great Britain and Germany. The Global Essence team represents over 150 years of solid experience in the global flavor industry!
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!
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 Flavor Solutions can help. From ideation to launch, we can create a seamless, winning path for you. Design, develop and scale up using our Beverage Innovation Studios in Geneva, IL or Hunt Valley, MD.
Mother Murphy's is a full-service flavor manufacturer dedicated to supporting customer needs through quality and flavor innovation. At Mother Murphy's we specialize in flavor and prototype development for the beverage industry and have over 3,000 TTB Approved flavors in our portfolio. With our expertise, your ideas become the exceptional flavors that connect with consumers & create brand loyalty.
Midwest and East Coast Co-Packing and Beverage Solutions in Cincinnati, Ohio
Impact Brews
Mission Statement:
To act as an extension of our partners brands focusing on high-quality filling and honest communication. We aim to build long-term relationships with our partners to help them grow and exceed their goals.
Flexible Beverage Solutions
Impact Brews is a beverage co-packer in Cincinnati Ohio. We offer high quality filling for emerging brands with a focus on ready to drink cocktails, energy drinks, sparkling water, CBD/ THC and have tunnel pasteurization. Impact offers a diverse range of packaging options, including 4-pack, 8-pack, 6-pack, 12-pack, loose pack (with shrink film), 12 & 24 pack, and variety packaging.
Flexible Supply Chain Solutions
Impact Brews is a supplier of Crown cans in 12 oz sleek , 12 oz standard, 16 oz, 7.5 oz, 19.2 oz standard body types with a hard to hold liner. We provide special pricing for collaboration with our preferred vendors and supply chain companies. Our supply chain solutions cover a wide range including paperboard, case trays, cartons and more. The Impact fulfillment center is located 13 miles from production and we offer affordable warehousing for finished goods and packaging materials. Outbounds from our fulfillment center can reach 70% of the U.S. population within 1 day.
Contact us to learn more: info@impactbrews.com and dshatto@impactbrews.com
Beverage Manufacturing Partnership: Craft Success with Krier Foods! Krier Foods
Variety Packs and Warehousing
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. Trust RAD Packaging for all your packaging and warehousing needs. GMP certified and Type 14 Public Warehouse.
Need to hire a top tier team?
Scale Up Search
We specialize in recruiting for the alcohol beverage industry, particularly focusing on scaling emerging brands. If you're interested in learning more about the brands we've helped grow, feel free to contact us directly via email at scaleupsearch.co.uk or connect with us on LinkedIn!
Unsaleable RTD Destruction & Recycling Parallel Products
Dedicated Contract Production
Sleeping Giant Beverage Co.
Located in Denver, we are the only dedicated contract brewery & beverage facility in the Western US. Founded in 2015 to address the shortcomings of the contract production model, SGBC emphasizes: quality, customer service, location & size. As a turnkey dedicated co-pack outfit, your products are our singular focus. We produce spirit based RTDs, hemp, D9, beer, NA beer, hard seltzer & NA beverages.
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.
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.
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 product library, 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 enhancing 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 Sovereign Flavors Inc.
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.
Co-Pack & Pkg materials DSP TX
Texas Premium Spirits
TransChemical offers numerous solutions and ingredients for RTD brands. We are distilled spirits plant, brewery, and winery with 40 years of experience within the industry. We offer help with formulation, raw materials, tax optimization, and a wide network within the industry for your brand. Our products include numerous Spirits, Natural Flavor Blenders, Sugar Brew, OTS Wine, Malt Base, and more.
50ml sample sizes. Turnkey NO MOQ bulk to bottle filling, packaging materials & specialty packaging services in Ft Worth. Are you an existing brand that needs added capacity? Startup or emerging brand that is looking to outsource production? Looking for alternative source for packaging materials? Shrink sleeve application, club store/variety packs or limited edition, kitting, specialty pkg.
COMPANY
1911 Established
21 Holdings LLC
A. Holliday & Company Inc.
Abelei Flavors
Allen Flavors, Inc
Avatar Manuka Honey NZ.
AZ Laboratories LLC
Bahamadise Cocktails
BeatBox Beverages
Berlin Packaging
Betty Booze
Liz Balduzzi LaFayette NY (315) 382-8707 1911established.com
Matt Ingemi - - (630) 231-7590 sliqspiritedice.com
Christine Renken Toronto - (416) 225-2217 teacoff.com
Mike Allegretti North Aurora IL (630) 859-1410 abelei.com
Joe Harriman South Plainfield NJ (908) 561-5995 allenflavors.com
Brendon Redfern Greytown - +6427277109_____ wholesalemanukahoney.com
Susan Vu Tempe AZ (480) 955-9870 azlaboratories.com
Shauna Ferguson Nassau - +12428244328____ bahamadisecocktail.wixsite.com/ bahamadisecocktails
Zech Francis Austin TX - beatboxbeverages.com
Jason Loper Chicago IL (312) 869-7501 berlinpackaging.com
Katie Palay New York NY (646) 797-9989 bettybooze.com
BevSource - Saint Paul MN (866) 956-4608 bevsource.com
buzzbox premium cocktails
Callisons
CanSource, a TricorBraun Co.
Caporale Consulting
CFT Packaging USA
Bob Lienhard Indio CA (760) 578-4111 buzzbox.com
Justin Biza Olympia WA (360) 790-2160 callisons.com
Robert Renfro Longmont CO (720) 986-4387 cansource.com
Mark Caporale Middletown IL (707) 987-9703 caporaleconsulting.com
Amanda Podwinski - - (847) 247-0233 usa.cft-group.com
Clevertech North America - Fort Myers FL (239) 301-4445 clevertech-group.com
CMC
Creamy Creation
Deville Beverage Co.
DR HOPS
Endless West
FFP
Flavor Dynamics, Inc.
Flavorcan International Inc.
Adam Kozisek Franklin TN (615) 490-1510 choosecmc.com
Matthew Benny Rochelle Park NJ (585) 815-5367 creamycreation.com
Alan Paulson Cypress CA (310) 466-3454 drinkdeville.com
Joshua Rood San Leandro CA (310) 916-8090 drhops.com
Maria Lisanti Detroit MI (914) 715-1920 endlesswest.com
Nina Hughes Lake Mary FL (352) 357-4141 floridafood.com
Colleen Roberts South Plainfield NJ (908) 822-8855 FlavorDynamics.com
Mario Moreno Toronto OH (416) 321-2124 flavorcan.ca
Flavorman Spencer McGuire Louisville KY (502) 289-5549 flavorman.com
FlavorSum
Foodarom
Forté Flavors, LLC
Franklin Baker, Inc.
G3 Enterprises
GAIA fruits
Gallo
Brooke Hutton Kalamazoo MI (269) 215-2428 flavorsum.com
Vanessa Chartrand Salt Lake City UT (801) 975-2604 foodarom.com
Janet Guzman Valencia CA (818) 307-4062 forteflavors.com
John Slade Memphis TN (901) 881-6681 franklinbaker.com
Catlyn Dzioba Modesto CA (209) 480-4124 g3enterprises.com
Roberto Garfias San Luis Potosí - +524441595829___ gaiafruits.com
Nicole Bouvia Modesto CA (986) 942-1415 filemonade.com
Global Essence, Inc. - Hamilton NJ (732) 677-1100 globalessence.com
GNT USA, LLC
Golden Rule Spirits
Good Omen Bottling, LLC
Impact Brews
Infinium Spirits
Iron Heart Canning Co
Krier Foods
Lemonati / Mighty Swell
McCormick Flavor Solutions
METABEV LLC
Mission Craft Cocktails
Jeannette O'Brien Dallas NC (704) 469-5555 exberry.com/en
Hunter Sprole San Francisco CA (203) 921-9598 goldenrulespirits.com
Raven Deidrich Cottonwood AZ (928) 634-5434 wildtonic.com
Dan Shatto Cincinnati OH (513) 846-0876 impactbrews.com
Shane Fitzharris San Diego CA - infiniumspirits.com
Roger Kissling - - (908) 619-5449 ironheartcanning.com
Zach Malin - - (920) 994-2469 krierfoods.com
John Spicer Charlotte NC (415) 994-0957 lemonati.com
Chloe Morris Hunt Valley MD (630) 578-8638 mccormickfona.com
Roby Wilson The Woodlands TX (713) 306-6056 metahard.world
Marcin Malyszko Coto De Caza CA (323) 636-3787 missioncocktails.com
Mom Water - Ferdinand IN - drinkmomwater.com
Monin
Mother Murphy’s Flavors
Customer Service Clearwater FL (727) 461-3033 monin.com/us/products/homecraftedcocktail-mixers
Michael Oden Greensboro NC (336) 273-1737 mothermurphys.com
PakTech - - - (541) 461-5000 PakTech-opi.com
Parallel Products
Pneumatic Scale Angelus
RAD Packaging
SABÉ Beverages
Monica Lurie Louisville KY (502) 471-2456 parallelproducts.com
Gigi Lorence Stow OH (800) 992-0491 psangelus.com
Alexander Said San Fernando CA (661) 992-2252 radpackaging.com
Matt McAlary - CA (207) 400-9128 drinksabe.com
Saxco International, LLC
Scale Up Search
Sensient Flavors & Extracts
Sleeping Giant Beverage Co.
Sovereign Flavors Inc.
Spark Plug
Spirited Brands Corp.
Statco-DSI Process Systems
Stiebs
T. Hasegawa USA
Teabird Hard Tea
Texas Premium Spirits
The Jel Sert Company
Tip Top Proper Cocktails
Top Dog Cocktails
TransChemical
Tripack
Two Chicks Cocktails
VALA Beverage Company
Velvet Llama
Zion Packaging
- (877) 641-4003 Saxco.com
Richard Powell Guiseley - (447) 892-6878 scaleupsearch.co.uk
Ed Chandler Hoffman Estates IL (847) 558-0427 sensientflavorsandextracts.com
Matthew Osterman Denver CO (303) 859-1484 sleepinggiantbrewing.com
David Ames Santa Ana CA (714) 437-1996 sovereignflavors.com
Andy Hersch Las Vegas NV (702) 371-3909 drinksparkplug.com
Brandon Cason Austin TX (512) 736-3126 drinkteabird.com
Randy Smith Huntington Beach CA (714) 375-6300 statco-dsi.com
Brian Nova Madera - (559) 661-0031 stiebs.com
Mark Webster Cerritos CA (714) 736-7109 thasegawa.com
Brandon Cason Austin TX (512) 736-3126 drinkteabird.com
Michelle Sotelo Fort Worth TX (817) 725-8188 swpackaging.net
Kyle Harrington - - (630) 818-7374 jelsert.com
Josh Guss Atlanta GA (404) 218-1853 tiptopcocktails.com
Matt Satten Philadelphia PA (734) 717-8792 topdogcocktails.com
Fletcher Stovall St. Louis MO (314) 231-6905 transchemical.com
Bill Hunt Milford OH (866) 900-1255 tripack.net
Linda Cash Las Vegas NV (732) 397-2963 Twochickscocktails.com
Noah Seely San Diego CA (207) 317-0554 valabeverage.com
David Martino Maspeth NY (718) 628-9100 velvetllama.com
Gary Martin Corona CA (949) 842-1458 zionpack.com
Horizon Organic And AOR Duncan Channon Help Consumers Unleash Their Inner Child
Horizon Organic, a trailblazer in the organic dairy industry, has teamed up with full-service agency Duncan Channon in its latest campaign. Embracing the joy and sincerity of children’s exploration, this partnership celebrates the importance of taking kids’ adventures as seriously as they do.
The campaign taps the extraordinary energy of childhood by paying homage to the “high stakes’’ drama of play. The video spots were crafted in collaboration with director Pau Dalmases of Pensacola, with one ad depicting an audacious child playing chef in his kitchen, and another spot which gives us a chance to see just how serious kids take it when they say “the floor is lava.”
Entitled “This Milk Means Business,” the campaign, which also includes digital, social, and banner ads, aims to challenge the prevailing assumption that all dairy products are created equal. As a leader in organic, Horizon Organic offers a wide range of dairy options including products enriched with DHA, supporting brain
and eye health, now also available in an easy-to-digest lactose-free form. The campaign focuses on promoting Horizon Organic’s core product line along with its lactose-free milk, which expands its already diverse portfolio of dairy options.
“A day in the life of a kid would test any adult’s endurance,” says Duncan Channon Creative Director Jessea Hankins. “From freeze tag to playing pretend, kids go hard. And they approach it all with enviable amounts of unfiltered energy and imagination. Fueling them up on Horizon Organic is a nutrient-rich no-brainer. Our goal was to speak to parents without ever addressing them directly, and to portray kids in a way that they’d instantly recognize as authentic. In the end, parents don’t need to overthink it: Horizon Organic is a much-needed easy win.”
Capturing the right energy was essential to the creative concept of the campaign. Children navigate through everyday challenges with boundless energy and enthusiasm, and having substantial amounts of protein, calcium, vitamins and DHA for brain and eye health keep them going. The creative emphasizes the crucial role Horizon Organic’s milk plays in nourishing their growth and development.
At the heart of this campaign lies the insight that parents strive to provide their children with delicious and nutritious milk options amidst a crowded and often confusing market. Horizon Organic and Duncan Channon sought to simplify this decision-making process by targeting parents and highlighting Horizon’s commitment to delivering remarkably nutritious dairy products.
The “This Milk Means Business ” campaign will follow a multi-channel media strategy spanning CTV, digital video, digital display, paid social, and custom content partnerships and will be running through September 2024. This work marks a pivotal moment for Horizon Organic and Duncan Channon as this will be the first campaign released since Duncan Channon was named Horizon Organic’s Creative and Media Agency of Record at the end of 2023.
Pepsi Declares Itself the Official Beverage of “Grills Night Out” in New Campaign Featuring Bobby Flay
PEPSI has unveiled “Grills Night Out,” a new campaign declaring Pepsi as the perfect beverage accompanying America’s favorite seasonal pastime: Grilling. Every evening can be a “Grills Night Out,” with exclusive tips from world-renowned grill-master, Chef Bobby Flay, Pepsi urges consumers to fire up the grill and discover how their favorite flame-kissed foods taste #BetterWithPepsi.
Pepsi “Grills Night Out” – Prep (featuring Bobby Flay):
In the spot, Chef Bobby Flay is seen putting on his signature apron as he gears up for a summer grilling session like no other. With Flay’s flawless chopping skills and unmistakable wrist flick, he holds a spatula to perfect his burger to his liking, all while he delivers a playful hip shake while listening to “Ladies Night” by Kool & The Gang. Flay walks viewers through all stages of an epic outdoor barbecue from seasoning, searing and cooking itself, to enjoying his perfectly grilled foods alongside the delectable, refreshing taste of an ice-cold Pepsi Zero Sugar.
Pepsi “Grills Night Out” – Cook:
In the spot, friends are in their backyard and rooftop patio, igniting the grill, seasoning ribs, wings, and corn to perfection, all while dancing around playfully to “Hot Stuff” by Donna Summer and savoring an ice-cold Pepsi Zero Sugar.
Pepsi “Grills Night Out” – Enjoy:
In the spot, an idyllic tablescape is adorned with all the ultimate soundtrack “December, 1963 (Oh, What a Night)” by Frankie Vallie & The Four Seasons and “Grills Night Out” favorites, from kebabs to burgers, ribs, hot dogs, and more, all enjoyed with laughter and an ice-cold Pepsi Zero Sugar.
Pepsi “Carne Asada, Parrillada o Asado” – Mejor Con Pepsi:
In the spot, a BBQ takes place featuring delicious Latin-inspired dishes from the grill like carne asada and elote, set to the beat of “Danza Kuduro” and enjoyed with an ice-cold Pepsi Zero Sugar.
“We couldn’t be more excited to kick off our ‘Grills Night Out’ campaign, as grilling is one of America’s favorite past times – especially during the summer. Given how amazing burgers, hot dogs, and just about any other grilled food tastes with an ice cold refreshing Pepsi, we thought it was only fitting to declare Pepsi as the ‘Official Beverage of Grills Night Out,’” said Todd Kaplan, Chief Marketing Officer at Pepsi. “Our campaign features Bobby Flay, fun music, delicious food and Pepsi that truly captures the fun and enjoyment of grilling, as we think there is no better way to kick off the summer than by making tonight a ‘Grills Night Out’!”
GHOST Announces Exclusive Energy Drink Partnership With the Phillies
The Philadelphia Phillies and GHOST are teaming up to bring even more energy to the club’s electrifying fanbase in a new partnership that is the first of its kind in the major leagues.
The multi-year collaboration features GHOST, a lifestyle brand of sports nutrition products, energy drinks, dietary supplements, and apparel, as the first ever “Official & Exclusive Energy Drink” of the Phillies.
As part of the partnership, GHOST will fuel fans with its feel-good energy drink during home games at Citizens Bank Park, serving a variety of its flavors, including Original ‘OG’, Orange Cream and Tropical Mango, at concession stands and grab and go kiosks throughout the ballpark. In addition, GHOST will be served as a backbar mixer and available as an exclusive GHOST Energy signature cocktail drink, with other highlights including fan samplings and special events throughout the season.
Recognizing the importance of giving the topic of mental health prominence, GHOST will also be the new presenting sponsor for the team’s “Strike Out the Stigma” initiative to support healthy life habits and mental health awareness, featuring monthly pregame Theme Night events that bring important conversations surrounding mental health to the forefront. The new “Strike Out the Stigma” partnership will launch during Mental Health Awareness Month and will fo -
cus on mental health in sports with guest speakers from the Phillies and San Francisco Giants. To further bring awareness to mental health in sports, players for the first time will wear “Never Fightin’ Alone” t-shirts during that day’s batting practice.
“As a lifelong Phillies fan born and raised in West Chester, PA, it doesn’t get any better than this. However, this partnership goes far beyond the hometown connection,” said Ryan Hughes, Co-Founder and CMO of GHOST. “GHOST as a brand, has ascended in the energy category by staying true to who we are and doubling down on authenticity. From our products to our partnerships, we strive to only hit home runs and if there is anything this team can get behind, it’s just that. We couldn’t be more proud to partner with an organization and fanbase that truly embodies the work hard, play hard mantra as much as we do!”
GHOST will also have a prominent presence at Phillies home games, with signage at various locations including behind home plate and in the Phillies dugout at Citizens Bank Park.
In addition, the new alliance will lean into the lifestyle and culture of the sport by designating GHOST as the Presenting Partner of Phillies Arrivals on @Phillies social media channels, highlighting players as they arrive for game day throughout the season.