Bevscape/NOSHscape/Brewscape Coca-Cola, Jack Daniel’s

Coca-Cola, Jack Daniel’s Set to Launch RTD Cocktail

The Coca-Cola Company is accelerating its push into beverage alcohol with the announcement of a new global partnership with Jack Daniel’s Tennessee Whiskey to release a ready-to-drink cocktail.

Jack Daniel’s & Coca-Cola RTD, as the product was dubbed in a press release, will launch initially in Mexico in late 2022 before continuing a global rollout. The product, made with Coca-Cola and Jack Daniel’s Tennessee Whiskey, contains 5% ABV in each 12 oz. can, and will also be available in a zero-sugar version.

“The relationship brings together two classic American icons to deliver consumers a taste experience they love in a way that is consistent, convenient and portable,” said Lawson Whiting, CEO and president of Brown-Forman Corporation, the parent company of Jack Daniel’s. “Brown-Forman has been a leader in the readyto-drink category since we launched our first Jack Daniel’s RTD offerings, enabling us to accelerate expansion and continue to grow our business around the world.”

“We keep consumers at the center of everything we do as we continue to develop our portfolio as a total beverage company, and that includes new products with our iconic Coca-Cola brand,” said Coca-Cola chairman and CEO James Quincey. “We are excited about our new relationship with Brown-Forman and look forward to the introduction of Jack Daniel’s & Coca-Cola.”

Though the company has dabbled in beverage alcohol in the past, Coca-Cola’s interest in the segment has picked up momentum in recent years. Within the U.S., the soda giant has licensed its brands to third parties for use in alcoholic drinks; Topo Chico Hard Seltzer and Simply Spiked Lemonade are produced via partnership with beer giant Molson Coors, while Constellation Brands makes Fresca Mixed. Jack Daniel’s & Coca-Cola RTD will be the first alcoholic drink to carry Coke’s official branding and packaging.

In contrast, Jack Daniel’s has multiple RTD products on the market across a range of ABV levels and formats. Brown Forman announced a partnership with Pabst Brewing to produce, sell and distribute Jack Daniel’s Country Cocktails, the whiskey brand’s line of flavored malt beverages, beginning in April 2021. While Brown-Forman retained full ownership of Jack Daniel’s Country Cocktails’ trademarks and other assets, Pabst’s national accounts and field sales teams took over sales to distributors and retailers in the U.S. and domestic military markets.

Via the Pabst partnership, Brown Forman has landed on market research firm IRI’s list of top 25 beer category vendors in off-premise retailers with sales up 20%, to $24.4 million, yearto-date through May 15.

Along with Jack Daniel’s & Coca-Cola RTD, Coke’s products reflect its focus on three segments of RTD flavored beverage alcohol: hard seltzers, hard alternatives and pre-mixed cocktails.

In a separate statement, Khalil Younes, who leads Coke’s alcoholic beverage division, said the company was “strategically experimenting and learning in alcohol,” a mission that “will require effort and patience.”

“Our ambition is to grow our brands in a responsible and sustainable way to those who choose to consume and are over the legal purchase and drinking age,” Younes said.

Buoyed by continued growth from its flagship soda — CocaCola (+6%), Coca-Cola Zero Sugar (+14%) both expanded in Q1 this year — the Atlanta-based corporation has leaned into its trademark as of late, launching Coca-Cola With Coffee and now-defunct Coca-Cola Energy while unveiling Coca-Cola Creations, a “global innovation platform” that has released several LTO products so far this year. Outside of CSDs, it has recalibrated strategies around key segments like tea, coffee and juice, efforts which have seen brands Odwalla and most recently Honest Tea be discontinued.

In April, Coca-Cola Company announced net revenue was up 16% in Q1, to $10.5 billion, despite seeing its cost of goods rise 17%, to nearly $4 billion.

Chameleon Coffee and REBBL Acquired By SYSTM Foods

SYSTM Foods, the strategic partnership of private equity firm SYSTM Brands and venture capital fund PowerPlant Partners, staked its first claims on the impact-focused food and beverage category by announcing it has acquired Chameleon Coffee from Nestlé USA, along with independent functional beverage brand REBBL.

“I couldn’t think of two better brands to combine,” said Andy Fathollahi, CEO of SYSTM Foods. “We look for great brands, great products and this acquisition was phenomenal.”

Through SYSTM Foods, which is focused on socially conscious food and beverage products, both brands will be operated by SYSTM Brands with PowerPlant serving as lead investor in the partnership. The deals were both closed in May but were officially announced in June.

Although the details of the partnership were undisclosed, the launch of SYSTM Foods allows SYSTM Brands to use its expertise in consumer product acquisitions and move into the food and beverage space where PowerPlant has invested heavily, Julian Cheng, chief strategy and investment officer for SYSTM Brands, told BevNET.

Based in Austin, Chameleon started as an organic cold brew concentrate business in 2010 and was acquired by Nestlé in 2017. Under the leadership of one of the world’s largest coffee companies, Chameleon rounded out Nestlé’s offerings with at-home pod-based products, packaged coffee and single-serve RTD coffee drinks.

Nestlé’s decision comes as oversaturation in the RTD coffee category and increased competition in the market has led to shakeout in the category. There were 326 active coffee brands (excluding private label) in the market in December 2021, down from 350 in 2020 and a peak of 357 in 2019, according to SPINS data for MULO and convenience.

California-based REBBL makes plant-based elixirs and protein beverages and most recently launched its own functional RTD coffee line called Stacked, as well as prebiotic soda REBBL POP. REBBL frames itself with a conscious capitalism business by using recyclable materials and supporting social justice and human rights organizations through a portion of its sales.

REBBL’s acquisition continues the company’s relationship with PowerPlant Partners who invested in the brand in 2018. The venture capital firm has invested extensively in the food and beverage space helping fund companies like Beyond Meat, Thrive Market, Liquid Death, and Vive Organic.

Chameleon and REBBL will continue to be run as two separate businesses with SYSTM operating the finances and sales on the backend. SYSTM Foods reported that the strategies for the new companies would “stay fairly in line with what both brands have been doing with some refinements to growth strategies.”

In establishing a natural beverage portfolio, the company sees these two brands as an opportunity to invest beyond consumer products like mobile phone cases that have populated its portfolio until now, Cheng said.

“From a consumer product standpoint, managing multi brands and delivering really high-quality products is something that we’re very comfortable doing. The only thing that’s really different is ingredient mix and supply chain,” Fathollahi said. “We have the good fortune of having a largely domestic-based supply chain here. We co-man(ufacture) and distribute everything domestically within REBBL and Chameleon.”

At this point, SYSTM Foods is solely focused on the integration of the two new brands and does not have future acquisitions planned, Cheng said.

“We’re obviously gonna leave our options open, but if an opportunity pops up, we’re going to be looking at it closely.”

Super Coffee Tests ‘ENRGY’ Line

Kitu Life Super Coffee pilot-launched its fi rst non-coffee innovation in Texas: a three-SKU, zero-sugar energy drink line enhanced with collagen and probiotics called Super ENRGY.

Much like Super Coffee presenting itself as a better-for-you alternative to Starbucks’ Frappuccino drinks, Super ENRGY is positioned as an extra-functional, all-natural choice within the traditional energy drink space. Boasting the tagline “the healthiest energy on earth,” the product has launched in three initial fl avors — Mango Peachpop, Strawberry Lemonspark and Mixed Berryburst — in 12 oz. slim cans containing 200 mg of caffeine each.

“Super ENRGY is focused on delivering great tasting, greatfor-you, everyday energy that provides consumers with something that is much better for them while being fun, fl avorful and relevant,” said Kitu Life founder and COO Jordan DeCicco in an email. “The brand will speak to the next generation of Energy Drinkers who want something that’s great for them, tastes great and has a clear purpose.”

All three fl avors debuted in June at “roughly 200” Texas locations of grocery chain H-E-B, where they are being sold in single cans from the cooler.

According to DeCicco, Super ENRGY is off to a fast start, scanning 20,000 in the fi rst two days, “an early sign that the brand and product is resonating.”

Super Coffee has emerged as one of the major entrepreneurial success stories in beverage over the past half-decade: since Jordan and brothers Jimmy and Jake DeCicco launched the protein-boosted RTD coffee brand in 2015, it has rapidly expanded across channels and product formats, including multi-serve coffee, creamers and K-Cups. A landmark investment and distribution deal with beer giant Anheuser-Busch InBev in 2020 marked a further turning point, allowing it to build awareness (see its Super Bowl ad with ’90’s rapper Vanilla Ice) and adjusting the company sales targets to over $100 million annually.

But with “positive energy” already one of its core principles, why jump into the fraught energy drink market? According to Jordan DeCicco, the category allows Super Coffee to extend its zero-sugar brand platform to reach more consumers with a value-added product that meets a different use occasion and day part.

“Based on the consumer and category data it will absolutely be incremental to Super Coffee,” said DeCicco. “We know we have a lot of our current consumers who will drink their Super Coffee in the morning and Super ENRGY in the afternoon and evenings instead of trading to another energy drink which is happening very often today. It’s also going to introduce our brand to Non-Coffee drinkers for the fi rst time which is an exciting opportunity that we’ve looked forward to for several years.”

Kitu Life is entering energy drinks at a precipitous time, with major operators like Molson Coors (ZOA), Vita Coco (Runa), PepsiCo (Starbucks BAYA) and others showing increasing potential for disrupting the category with zero-sugar, naturally caffeinated energy drinks. On the independent side, brands with differentiated products for specifi c demographics, such as CLEAN Cause, Alani Nu, C4 and Celsius, have enjoyed the growth wave. According to Nielsen data for the two-week period ended on June 4, the category has grown upwards of 30% on a three-year stacked basis.

In terms of how the product may potentially fi t within ABInBev’s current network — which includes energy drinks from GHOST and Hiball, Super ENRGY’s role is not yet clear.

“We love our wholesaler partners and hope they will all be as excited as we are for Super ENRGY once we prove the product and brand positioning the same way we did with Super Coffee,” DeCicco said. “We won’t ask them to carry it until it’s performing well and we are confi dent about its future and committed to supporting it with the necessary resources it will need to scale. We are starting with a very disciplined launch at HEB in Texas and then based on performance will start exploring new opportunities with wholesalers and retailers who believe in the brand and want to get behind it through a meaningful partnership and launch plan.”

But for the next three to six months, DeCicco emphasized that Kitu Life plans to be “hyper critical” in analyzing Super ENRGY’s performance at H-E-B, measuring weekly velocities and dollar growth against the category’s top 10 brands — without leaning on promotional pricing.

“We want to ensure we focus on a healthy gross profi t for the wholesalers and retailers as we do not want to infl ate sales out of the gate with heavy promotions but focus on full price velocities which is a true sign of product and brand strength.”

Bang Announces Split from PepsiCo

After a year-and-a-half of high tension and muted sales, Bang Energy said it had offi cially ended its distribution partnership with PepsiCo.

The Florida-based brand, a subsidiary of VPX Pharmaceuticals, announced in a brief press release in late June that “all disputes with PepsiCo have been fully settled and resolved” effective immediately and that the brand will return to DSD distribution through a number of new partnerships.

“Our primary objective is to effectuate a smooth transition that best serves both Bang Energy’s and PepsiCo’s highly valued retail customers,” Bang Energy CEO Jack Owoc said in the release.

PepsiCo has not yet confi rmed the termination of the agreement.

Starbucks Coffee has agreed terms with Bolthouse Farms for the sale of its cold-pressed juice brand and business Evolution Fresh, the two companies announced. Financial details of the transaction, expected to close later this year, were not released.

By joining Bolthouse Farms, itself owned by private equity group Butterfl y, Evolution Fresh “will have the opportunity to accelerate its growth trajectory” while Starbucks “focuses its efforts on the growth of the core Starbucks business and its partner and customer experience,” read a press release.

“Evolution Fresh is a natural extension of the Bolthouse Farms portfolio and we look forward to welcoming the team,” said Jeff Dunn, chairman and chief executive offi cer of Bolthouse Farms. “At Bolthouse Farms, with the support of Butterfl y, we strive to ensure that the acres we grow and beverages we make have a positive impact on the land, on the people who make up our company, and on all people. By bringing Evolution Fresh into our portfolio, we will extend our spirit of ingenuity and innovation, sharing resources and passion for high-quality, nutrient-dense juices to pioneer solutions for today’s food system.”

“Evolution Fresh has grown steadily over the last several years as a result of our partners’ hard work and commitment to the brand. We feel there is a great runway and opportunity to take Evolution Fresh to the next level, and Bolthouse Farms’

PepsiCo fi rst announced its exclusive distribution partnership with Bang in April 2020 at a time when the brand was reporting triple-digit year-over-year growth and had recently surpassed $1 billion in annual retail sales. The deal was contracted to last through October 2023; however, the relationship soon went sour as Bang’s transition from DSD (including within Anheuser-Busch InBev’s network) to Pepsi’s blue trucks when sales fell off and in October 2020 Owoc began attempting to exit the agreement prematurely.

Bang publicly announced its intention to terminate the agreement in November 2020, citing “multiple issues and concerns regarding PepsiCo’s performance since the parties’ distribution partnership began.” However, PepsiCo sued Bang that month and an arbitrator later ruled that Bang must honor the contract.

Since then, Bang has continued to face slow and, at times, declining sales growth within the PepsiCo system. According to NielsenIQ, the brand’s sales fell 20.5% in the two-week period ending June 4, 2022 and were down 19.5% in the 52-week period on a two-year stack basis. Volume sales in that time fell 23.5% for the two-weeks and were down 24% for the 52-weeks on a two-year stack basis.

Speaking at BevNET Live Summer 2022 in New York City in June, Owoc declined to say that he regretted taking the deal with PepsiCo calling it a “learning experience” and suggesting that he had distributors lined up for when Bang eventually departed.

considerable experience and success in the premium beverage category will allow the brand to continue growing,” said Hans Melotte, Starbucks executive vice president Global Channel Development. “Bolthouse Farms shares the same values and commitment to putting people fi rst in everything they do, which affi rms for us that we have found the right opportunity for Evolution Fresh.”

Based in California, Bolthouse Farms produces plant-based milks, juices, protein drinks, salad dressings, and baby carrots. The company was acquired by Butterfl y from The Campbell Soup Company in a $510 million transaction in 2019. The group’s portfolio also includes Chosen Foods, MaryRuth Organics, Orgain, and Pete and Gerry’s Organics.

Starbucks announced its $30 million purchase of Evolution Juice in November 2011, with former chairman Howard Schultz framing the brand as a way into the “$50 billion health and wellness sector.” Founded by Jimmy Rosenberg, the Californiabased brand was an early adopter of high-pressure processing (HPP) technology to preserve freshness and extend shelf-life for its juices and smoothies.

“We have long admired the Evolution Fresh brand and see tremendous untapped potential in the premium beverage category. By bringing these powerhouse brands together — Bolthouse Farms and Evolution Fresh — we will deliver a robust, highgrowth, and consumer-preferred portfolio of juices to market,” said Bill Levisay, president, Consumer Brands, Bolthouse Farms.

The sale marks another shakeup in the premium juice category, which has seen market momentum slow over the past decade. Over the past two years, major brands including Naked, Tropicana, Odwalla and Suja have all either been discontinued or sold to private equity groups, similar to Bolthouse’s current setup.

Bolthouse Farms To Acquire Juice Brand Evolution Fresh From Starbucks

UNSTUCK Launches New Products, Celebrates ‘Friction-less’ Model Success

After a successful first year of operation, refugee-employment initiative UNSTUCK has announced a slew of new partnerships and co-branded SKUs to support its growing supplier network which is composed of companies committed to hiring refugees, helping them economically integrate into their new host community.

With six brands now on board, UNSTUCK is now supported by seven new products: Chobani Vanilla Greek Yogurt with Tropical Fruit, That’s it. Mango Probiotic Fruit Bar, La Colombe Monaco Medium Roast Coffee, GoodPop Mango Chile popsicle, Petit Pot Dark Chocolate Organic French Dessert, Pitaya Foods Natural Passion Fruit Pieces and Organic Avocado Pieces.

These new products are proof that the nonprofit model works, said Nick O’Flaherty, Director of UNSTUCK at The Tent Partnership. He said one of the main challenges to expanding the program was getting brands and suppliers to understand that the model is easy to integrate and, rather than a one-off cash injection, it can generate systemic change in regions with large refugee populations.

“You can imagine in the last year, having any conversation that involves the word supply chain or suppliers was a difficult hurdle to cross,” said O’Flaherty. “But the brand partners [soon] saw that this wasn’t going to be disruptive, that the model was frictionless and that we provided any additional support that was required.”

“It’s almost like we needed to create a new category [of nonprofits] where, this is business as usual and brands aren’t sacrificing anything” he continued.

Launched last June, UNSTUCK is a consumer-facing initiative developed by the Tent Partnership for Refugees, a non-profit organization co-founded by Chobani CEO, Hamdi Ulukaya, that mentors and supports displaced people. UNSTUCK works directly with brand partners to identify a potential SKU, either existing or new, and determine what ingredients can be sourced from refugee-hosting regions to make a co-branded product.

Next, the organization matches the brand with potential suppliers in its network or works with new suppliers and local NGOs to implement refugee hiring programs. Once the SKU has been developed, UNSTUCK provides branding guidelines but otherwise lets the brand “do what they do best, which is creating these amazing products,” according to O’Flaherty.

“We provide any additional resources or technical expertise that they may not have in order to successfully hire and integrate refugee talent [into their supply chain] without much of an additional lift,” he said.

This initial brand cohort sources UNSTUCK ingredients from suppliers in Colombia and Peru. O’Flaherty noted that while the program has the strongest supplier relationships in Latin America due to its past work in the region, it intends to help support refugees through this program across the globe.

UNSTUCK’s debut co-branded SKU with Chobani, a Mango & Cream Greek yogurt, established a proof of concept for the initiative, said O’Flaherty and gave it something to point to when it began working with new potential partner brands. The first year also allowed UNSTUCK “to be confident in the business model and operating model overall,” he said. Although the debut SKU had limited distribution, it was successful in the markets it was available in and allowed them to “kick the tires” on the program before deploying it on a larger scale.

UNSTUCK is now working toward its three-year goal of helping existing suppliers expand their workforce to be made up of 20% refugees. The program is also in talks with a few other brand partners including Tony’s Chocolonely and aims to continue bringing more brands, products and suppliers on board.

Although not every ingredient in an UNSTUCK product comes from a refugee supporting supplier, O’Flaherty said this new cohort has taken some matters into their own hands, creating an unintended but positive ripple effect of refugee hiring outside of the program.

A heightened interest in supply chain functions has also been gaining traction among consumers due to the disruptions of the past year. O’Flaherty said the consumer demand for more transparency throughout the value chain has been an unanticipated, positive outcome of the otherwise negative situation.

He said UNSTUCK wants to ensure these long term partnerships and each SKU are successful and the program has recently launched its first awareness campaign. As it looks to its next stage of growth O’Flaherty emphasized that the impetus behind the mission is to continue to cultivate and expand its supplier network with a focus on emerging economies hosting large numbers of refugees.

Over the next five years, UNSTUCK also aims to reach beyond food and into apparel, personal care and home goods, among other sectors. By expanding its presence, it aims to help the increasing number of refugees economically integrate into their new host country. O’Flaherty highlighted the urgency of this issue, noting that since the initiative launched last year, the number of refugees has also increased, from approximately 30 million to 36 million, due to humanitarian and political crises in countries like Ukraine, Afghanistan, and Myanmar.

Mondelēz To Acquire Clif Bar For $2.9 Billion

Magic Spoon Raises $85 Million And Hits Target Shelves Nationwide

Food conglomerate Mondeléz International has agreed to pay $2.9 billion, with additional contingent earn out consideration, to acquire organic snack bar maker Clif Bar & Company.

Founded in 1992, Emeryville, California-based Clif is the leading protein and energy bar brand in the U.S., according to data cited by the company. Clif generated over $800 million in sales across products from its eponymous brand, as well as female-focused LUNA and Clif Kids. Under CEO Sally Grimes, the brand has begun moving outside of bars with products like CLIF Bar Thins, an exclusive with Walmart, and CLIF Pop’n Crunch with the aim of becoming a $2 billion business.

“Mondeléz International is the right partner at the right time to support Clif in our next chapter of growth,” said Grimes. “Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained Five Aspirations - sustaining our people, planet, community, business, and brands - five bottom lines that have grounded our company since its founding and will remain our North Star going forward.”

After three years in ecommerce, Magic Spoons grain-free, lowsugar cereals are spilling into retail.

The company announced its top three SKUs – Fruity, Cocoa and Peanut Butter – are rolling out exclusively to Target stores nationwide following the close of a star-studded, $85 million capital raise.

The round was led by HighPost Capital with participation from Siddhi Capital, Coefficient Capital, Constellation Capital, Carter Comstock, and more. The brand also secured investment from a group of celebrities including Shakira, Russell Westbrook, Halsey, The Chainsmokers, Amy Schumer, Odell Beckham Jr. and Nasir “Nas” Jones.

“We’ve been getting to know HighPost for well over a year now, and beyond getting along well with them on a personal level, they share our vision for what success looks like, and are fully aligned with our chosen path to get there over the coming years,” said Gabi Lewis, co-founder of Magic Spoon. “The celebrity investors are all true consumers of the brand - so we’re excited to have such amazing and well-known individuals as genuine ambassadors and fans.”

In 2019, Magic Spoon closed a $5 million round after only being on the market for five months. At the time, Lewis said a brick and mortar launch would not happen in the immediate future, but noted the brand had received plenty of interest from retailers. Now, that future is in view and the cereals will soon roll out to over 1,350 Target stores, priced at $9.99 per box.

Magic Spoon has emerged as an early player in keto-focused cereals, aiming to reinvigorate a category packed with high sugar, unhealthy products aimed mainly at children. Brands like Love Grown and Kashi have since followed suit, launching their own versions of “Cereal 2.0.”

For Mondeléz, the deal reflects the company’s intent to grow its range of snack and bar business through M&A, having added refrigerated bar Perfect Snacks in 2019 and better-foryou chocolate and cracker brand Hu in 2021. Adding Clif brings its global snack bar business past the $1 billion mark, according to a press release.

“We are thrilled to welcome Clif Bar & Company’s iconic brands and passionate employees into the Mondeléz International family,” said Dirk Van de Put, Chairman and CEO of Mondeléz International, in a press release. “This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business. As a leader and innovator in well-being and sustainable snacking in the U.S, Clif Bar & Company embodies our purpose to ‘empower people to snack right’ and we look forward to advancing this important work with Clif’s committed colleagues in the years ahead.”

Clif will continue to run operations from Emeryville and retain its existing manufacturing sites, according to the release. The deal is expected to be top-line accretive in year two and to create cost synergies by using Mondeléz’s infrastructure to expand distribution and enter new channels and markets.

The deal is expected to close sometime in Q3 2022.

According to Lewis, the brand’s initial D2C model was essential to its early growth as it took on and established a presence in the “tired” cereal category. Now he believes the business is “beyond” ready to accelerate and that Target’s history of launching D2C brands at retail makes its brick-and-mortar debut a “true partnership.”

“We’ll be leveraging our D2C expertise to drive trial instores; they’ll be supporting the launch in various ways in store,” Lewis explained. “We have a handful of additional exciting retail partnerships coming up later this year and next too, and in all cases we’ll be leaning into making sure the partnerships are home-runs.”

Magic Spoon cereals contain up to 14 grams of protein and 4 grams of carbs per serving, depending on the SKU. The product also taps timely consumer demands with its callouts for low sugar, and no added sugar, gluten, soy and artificial ingredients. The full lineup includes flavors like Cinnamon Roll, Frosted, Blueberry Muffin, Maple Waffle and Cookies & Cream.

Despite its narrow channel focus, Magic Spoon has not shied away from experimentation. In addition to building out an 8 SKU cereal lineup, last year the brand launched limited edition cereal bars in two flavors, Cookies & Cream and Cocoa Peanut Butter, which will be joining its permanent lineup.

Lewis said this capital will help enable the brand to execute against this “true inflection point” in its growth over the next few years as it moves into physical sales channels for the first time and transitions operations to support an omnichannel strategy.

“We want to make sure we can fully execute on that transition, and that means continuing to invest in building out a world-class team, brand-building, product development, and supply chain,” said Lewis. “On top of that, we’re of course entering a period of economic uncertainty, and it’s important to us that we can take a long term view on growing this business and weather any short term storms.”

Stryve Brings on Seasoned Exec as New CEO

Meat snack brand Stryve has added CPG executive Christopher Boever as CEO, replacing cofounder Joe Oblas, who will transition to Chief Growth Officer. The news came as the now publicly traded company tries to deepen its hold in the meat snack category, further build out a sub brand and fight back against rising ingredient and operations costs.

“I never aspired to be the CEO,” Oblas said of the change. “I’ve always been working toward a succession plan to bring in a strong manager to lead the company once we achieved a certain size.”

The producer of the Stryve, Kalahari and Vacadillos brands of meat snacks, the company was previously run by Oblas and Jaxie Alt, who held co-CEO roles. Alt, who also was the company’s CMO, departed last October. Oblas said the company pivoted from having co-CEOs once it became a publicly traded company and needed “a clear leader to call the shots.”

Boever most recently held the role of chief commercial officer at Hain Celestial, where he focused on driving sales and the company’s innovation pipeline. His resume also includes executive leadership roles at other large companies, including Pinnacle Foods, ConAgra Foods and Hormel.

“I am excited to be a part of the Stryve team. They have created customer and consumer solutions that [are] bringing new users into an already high growth category,” he said. “The team is passionate, the brands are exceptional and the future is bright…. [these are] excellent brands that are on trend, taste great [and have] with tremendous upside.”

Oblas, former co-founder and COO of supplement brand ProSupps, went on to co-found Stryve in 2017 alongside Ted Casey, now company chairman. Under the new leadership structure, Oblas will focus on new product innovation. Over the last five years, Stryve has focused on becoming the top purveyor of biltong, a dried meat snack originating in South Africa. The company made inroads in the market by building or acquiring the vast majority of the U.S. biltong production facilities. Its 2018 acquisition of D2C brand Braaitime gave Stryve one of its original two biltong production plants, while its 2020 pickup of Kalahari offered the brand a jump into the natural channel.

Stryve went public via a merger with a SPAC, or blank check company, in July 2021. Though the goal was to build out biltong offerings before heading into adjacent snacking categories, Stryve made a slight detour for its first sub-brand, Stryve Nutrition. The sub-brand debuted with a collagen protein powder and bone broth protein powder last year, and has since launched a pre-workout powder and plans to roll out a gummy supplement later this year.

In an email interview, Oblas stressed that though Stryve has nutritional products, “we are a snacking company” at heart. While the company is still devoting resources to Stryve Nutrition, Oblas said it will pause plans to move into new snacking categories.

“Strategically, a lot of the plans we laid forth were before all of the craziness in the marketplace, rising costs, inflation, supply chain, etc,” Oblas said. “What it’s shown us is that we have the ability to not only build, but dominate a category and be really good at what we’re best at. And that’s our focus for the time being.”

The brand initially began trading on the NASDAQ at $10.26 per share last summer; it has since dropped to $1.28, as of press time. On the company’s second quarter earnings call, Stryve reported net sales of $7.4 million, up 8.6% from $6.8 million versus the year-ago quarter, but operating with a net loss of $7.3 million. Oblas told analysts that Stryve was “on a path to profitability,” and in its next phase of growth would focus on a balanced growth strategy.

“Our ability to manage growth prudently and not by sales is a key to our ultimate success. This gets us to the root of our ability to manage this business and develop systems and processes for sustainable growth,” Oblas said on the call. “Speed versus sustainability should not be a choice. Rather, speed plus sustainability is the goal. We must be ready to evolve and transition as the business grows.”

Court Approves Sale of Modern Times to Brewery X

COOP Ale Works Strikes Deal for OKC Armory

A judge in Orange County Superior Court has approved the sale of San Diegobased Modern Times Drinks to BX MT BAMF LLC – a limited liability company connected with Anaheim, California-based Brewery X – for $20 million.

Judge John Gastelum signed and fi led an order approving the auction sale of Modern Times on June 24. Brewery X was required to send the full $20 million in cash to Modern Times’ receiver Thomas Hebrank within seven days, with the sale closing no later than July 7 – 14 days after Judge Gastelum’s sale approval, per the asset purchase agreement (APA). The sale closing will be “deemed effective as of 5

Oklahoma City’s COOP Ale Works is pressing forward with its plan to convert a former Armory building into a hospitality complex according to the Oklahoman.

The project dates back to July 2018 when the brewery won an RFP to revitalize the 23rd Street National Guard Armory and transform the vacated 87,000 sq. ft. space into a manufacturing brewery, restaurant, event space and boutique hotel. The purchase

p.m. Pacifi c Time on the day prior to the closing date,” according to the order.

Hebrank named Brewery X’s bid as the “highest and best bid” in an auction on June 17, which came under fi re from another bidder.

The decision was disputed by MTD Asset Acquisition – a group referred to in the auction as the Wilmington, North Carolina-based brewery TRU Colors – which submitted a bid of $20.1 million, with a 120-day maximum closing period, and a request for Hebrank to fi le for Chapter 11 bankruptcy.

MTD fi led an objection order on June 20, claiming Hebrank attempted a “change of rules in the middle of the auction,” by giving priority to Brewery X’s bid, despite it being $100,000 less than MTD’s bid. The company also submitted a new offer of $21 million with a 30-day closing window, and no bankruptcy fi ling. Details of the contested auction events were replayed in partial auction transcripts included in additional declarations fi led in support of MTD’s objection.

“All objections to the auction, sale and the sale process, if any, have been considered by the court and are overruled,” according to the sale approval order.

Should Brewery X fail to close the sale “timely or otherwise,” the sale will go to the backup bidder, Aumakua Holdings, Inc., which participated in the auction on behalf of Kihei, Hawaii-based Maui Brewing Co. Hebrank accepted Maui’s backup bid at $15.3 million with a 120day closing window. MTD was fi rst offered the position of backup bid, but declined, according to Hebrank’s declaration in support of the auction sale and results, fi led June 20.

Once the sale is closed, Brewery X will retain all assets, property leases, contracts, production equipment, permits (excluding liquor licenses), intellectual property, and “all net proceeds” “earned between the auction date and closing date,” from Modern Times, according to the APA.

Brewbound has reported that Modern Times pays $140,836 in rent each month across nine properties, and owes a total of $222,938 in back rent across the leases. Those properties are listed as assumed liabilities in the APA. The schedule for those payments “may be updated and modifi ed at [Brewery X’s] sole discretion at any time prior to closing,” according to the APA.

Brewery X will not have any “obligations whatsoever for any compensation or other amounts payable to any current or former employee,” at Modern Times, “including without limitation, hourly pay, commission, bonus, salary” “for any period at any time on or prior to the closing date.” Additionally, “nothing in this sale order or the APA requires the buyer to offer employment to any employees of Modern [Times],” according to the judge’s fi ling.

In a statement, Modern Times CEO Jennifer Briggs said she is proud of what the Modern Times employees from November 2021 through June 2022 accomplished, taking “a company from near liquidation to a sale of an ongoing concern.”

“With a turnaround like we did, it cannot be measured by IRI data,” she said. “It can be measured by selling everything we produce. This generation of employees (November 2021 to June 2022) worked for each other to make this happen.

“In terms of the future – [Brewery] X stepped up to the plate in the sale and they will be taking the Modern Times brand to their next level,” she continued. “This next chapter will be their story to tell.”

includes two additional buildings that will be demolished for parking. The facility will include 12 villas with a speakeasy, as well as a beer garden and pool.

The project is expected to take two years for demolition and construction with a target of opening in 2025. COOP CEO Daniel Mercer told the outlet that the company has budgeted around $55 million for the project.

Stone Brewing to be Sold to Sapporo Holdings

Stone Brewing Company is being sold to Sapporo Holdings. On June 24, Sapporo announced that it has entered into a “membership interest purchase agreement” to purchase the San Diego craft brewery, following Stone’s distribution business being “carved out and transferred to the newly established subsidiary of Stone Holdings.”

The deal, valued at around $165 million with potential for additional payments based on business performance, is expected to close in August.

“This is the right next chapter for Stone Brewing,” Greg Koch, Stone Brewing co-founder and executive chairman, said in a press release. “For 26 years, our amazing team has worked tirelessly to brew beers that have set trends and redefined expectations. To have the interest of a company like Sapporo in continuing the Stone story is a testament to the great beers we’ve created and will continue to create for our fans across the globe.”

“We approached Stone Brewing seeking a partner for our growth plans in the U.S, and we quickly recognized they were an ideal partner with bi-coastal brewing capacity, loyal fans, superb management, shared cultural values, and commitment to the highest quality standards,” Kenny Sadai, Chairman, Sapporo U.S.A., added. “This acquisition puts the resources and legacy of the largest Asian beer brand in America together with one of the most innovative and recognized craft beer brands in the world. It’s a perfect fusion of east meets west that is an ideal marriage for Sapporo’s long-term growth strategy in the U.S.”

In Stone, Sapporo secures the ninth-largest, Brewers Association-defined craft brewery by volume in the U.S. in 2021, the 18th largest brewing company overall in the U.S., and one of the most recognizable names in the craft brewing movement, which was founded by Koch and Steve Wagner in 1996.

Arlington Capital Advisors served as the advisory firm for Stone.

Sapporo, Japan’s oldest beer brand having been founded in 1876, previously acquired pioneering craft brewery Anchor Brewing for $85 million in 2017.

Stone, which produced 326,281 barrels of beer in 2021 (-2%), operates production facilities on both coasts, in Escondido, California, and Richmond, Virginia. The company also operates restaurants in Escondido and Liberty Station in San Diego, as well as a restaurant at the San Diego International Airport, taprooms in Oceanside, Pasadena, and San Diego, California, plus one at its production brewery in Richmond, Virginia.

As part of the deal, Stone facilities will produce offerings for Sapporo, which plans to add 360,000 barrels of volume brewed in the U.S. by the end of 2024. Taking on Sapporo’s stateside production would effectively double Stone’s output.

Not included in the transaction is Stone Distributing, the craft brewery’s San Diego-based self-distribution arm in its home market, one of the largest distributors of craft beer in the country. The wholesaler will spin off and operate independently.

In addition to Stone offerings, Stone Distributing also sells craft products from 21st Amendment, Avery Brewing, Bear Republic, Brooklyn Brewery, Great Divide, CANarchy (Oskar Blues, Cigar City, Wild Basin), Russian River and Societe, as well as hard kombucha from JuneShine, Boochcraft and Jiant.

Since its founding, Stone and Koch, in particular, have championed the independent craft brewing movement, with an axiom “pledging to never, ever, sell out to the man.”

In testimony during the craft brewery’s trademark infringement lawsuit against Molson Coors in March, Stone Brewing CEO Maria Stipp said the company has considered a sale process with investor VMG/Hillhouse owed $464 million.

Stipp added that the San Diego craft brewery’s business had declined 20% — or $174 million — in the wake of Molson Coors revamping the branding of its economy line Keystone Light in 2017.

The downturn in sales coupled with a looming June 2023 repayment date to VMG/Hillhouse had forced the brewery to consider a sale process. However, Stipp said VMG/Hillhouse has given the company wiggle room on repayment.

“I was given no timeline. I knew it would take time to build back the company and [VMG/Hillhouse] was giving me some time,” she said during questioning.

VMG — a firm that specializes in food and beverage investments — invested $90 million in Stone in mid-2016 via a limited partnership called “VMG Stone Brewing Coinvestment.” The investment was initially earmarked for what Stone called “True Craft,” a platform to keep craft breweries independent, which never got off the ground.

Stipp, via the press release announcing the transaction, said she is “thrilled that we have the opportunity to join forces with Sapporo.”

“This unique partnership allows us to preserve the Stone legacy that our fans know and love and will add exponential opportunities for growth, from production to more investment in people, equipment, sales, and marketing,” she added.

New Belgium to Launch Free Bar and Restaurant Training Program to Create Safe Spaces

New Belgium Brewing, in partnership with HospitableMe, a firm specializing in diversity, equity and inclusion training, will launch the Poured For All Initiative this fall, a free safety and inclusion training program for all bars and restaurants aimed at welcoming underrepresented communities into craft beer.

The Poured For All Initiative’s overarching goal is to foster “more inclusive and welcoming environments in thousands of bars and restaurants,” including those that serve New Belgium and Bell’s Brewery offerings. The training will also be extended to the taproom employees of both New Belgium and Bell’s.

Via the Poured for All Initiative, New Belgium and HospitableMe will develop a custom training program that will empower hospitality staff “to better understand and exhibit inclusive behaviors that foster a truly welcoming space for all identities, including people with LGBTQ+, BIPOC and intersectional identities who are currently underrepresented in craft beer spaces and elsewhere,” the company said in a press release.

The program was spurred by the dwindling number of LGBTQ+ bars, which accelerated during the COVID-19 pandemic. “In the 1980s there were an estimated 200 lesbian bars, but that number is now down to 15, per NBC and other news sources,” the company said in the release.

The training, which is intended to complement programs such as Safe Bars, will be available via HospitableMe’s digital platform, combining lessons with personal stories in order to help bar and restaurant staff members better understand the experiences of underrepresented patrons and create a more welcoming and inclusive environment for people of all backgrounds and identities. The training program will launch this fall and establishments whose entire staff go through the program will receive a digital certificate and a window cling. Businesses interested in participating can follow this link to pledge to join the program.