• 🌡️ Celsius Acquires Alani Nu: What’s Next?
• 🏭 Dora’s Ditches HPP
• 📉 Celsius Sees Revenue Drop in Q4
• 👋 Say Hiyo: Constellation Backs ANA Startup

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The first two months of the year have seen a flurry of transactions for brands like Spindrift, RISE Brewing Co. and Aura Bora, but the year’s first big M&A blockbuster arrived late yesterday: Celsius’ $1.8 billion bid (net $1.65 billion in cash and stock after $150 in tax assets) for Alani Nutrition has been accepted by Congo Brands, ending months of speculation about the future of the energy drink brand created by fitness influencer Katy Hearn. 

Together, Celsius and Alani Nu are expected to drive around $2 billion in sales across the combined portfolio – that’s if the two female-leaning brands don’t cannibalize each other first. 

As we take in our first impressions of the deal, here’s the threads we’re following: 

Transaction: In terms of ripple effects, could this deal may be a prelude to more consolidation? “I’d be watching for KDP to correct the C4 Energy ownership/incentive misalignment that was caused by their GHOST acquisition,” said independent consultant Joshua Schall.

Distribution: Are independent distributors doomed to forever repeat this  interminable cycle of hope and loss? You couldn’t blame them for thinking yes, judging by the sting of losing powerhouse brands like Bang (Monster), GHOST (KDP), C4 (KDP again) and now Alani Nu. But could the exit of a major player clear the way for smaller challenger brands (like Bucked Up)  to jump in and pick up the baton?

Future for Congo: Though it’s losing its top-performing brand (3D Energy also departed acrimoniously last fall), Congo Brands has a billion-dollar-plus war chest with which to rebuild. Left in the hands of “two young, aggressive entrepreneurs” in Trey and Max, that money will likely be directed towards “finding and scaling new talent-led brand creations,” said Schall. The question is if Logan Paul’s troubled PRIME brand will be part of that potential revamp, or if it gets shopped around as well.

New York distribution house Dora’s Naturals is getting out of the high-pressure processing (HPP) business, announcing earlier this week the sale of its HPP assets to Universal Pure Holdings. 

• For Universal Pure, the country’s largest tolling processor, the deal gives it a stronger presence in the Northeast while bringing its total capacity to 22 HPP machines across seven locations. 
• For Dora’s, it allows the distributor to “further focus our energies and resources on our core distribution business,” said CEO Cyrus Schwartz.

The sale marks the end of a decade-long venture for Dora’s, which launched its first HPP facility in 2014 before adding a second 55,000 sq. ft. processing site in 2017. Along with this week’s announcement, the distributor’s recent infrastructure projects – Dora’s doubled its capacity with the addition of two new warehouses, one for cold storage and the other for ambient, in October – reflect its current priorities. 

For more on what this deal means for Dora’s, read the full story on BevNET.

Celsius is riding high after posting a record $1.36 billion full-year 2024 revenue and announcing the aforementioned acquisition of Alani Nu in its earnings report yesterday, but it’s had some weak moments in recent months. The energy drink maker saw revenue fall 4% year-over-year in Q4 due to higher domestic allowances from its distributor incentive program. Here are some key numbers:

• In the quarter ending December 31, revenue was $332.2 million, compared to $347.4 million in 2023
• North America revenue decreased 6% to $312 million 
• International sales increased 39% to $20.3 million, primarily driven by organic growth in Celsius’ EMEA markets
• In the full year, Celsius saw retail sales climb 22% and category market share grow 160 basis points 

Investors – can’t live with them, even if you’re one of them, it seems – as Constellation Brands learned during a busy news day yesterday. The beer giant announced a new investment in non-alc innovation, and one of its investors announced a lawsuit against the company. 

Continuing to bolster its adult non-alc (ANA) portfolio, Constellation Brands has acquired a minority stake in Hiyo, a functional ready-to-drink tonic. We reported on Hiyo’s  $19 million raise last month, but the RTD brand was hush-hush on its partners. 

The investment gives Constellation another position in ANA, along with NA Corona, TÖST and HOP WTR. 

Despite Constellation’s push into new territory, it’s not always easy to escape your past. The company is facing a federal securities class-action lawsuit from an investor who alleges the company shared false information about its positive outlook for its challenged wine and spirits division.

Today is Friday and you all know what that means…. It's New Product Gallery time! We’ve rounded up the hottest new products and packaged them into a neat array. Here’s a sneak peek at what’s inside:

🍓 As we reported back in December, The Coca-Cola Company is slated to enter the explosive prebiotic soda category this month with Simply Pop. Available in Strawberry, Fruit Punch, Pineapple Mango, Lime and Citrus Punch flavors, the new drink contains 25% to 30% real fruit juice from concentrate and no added sugar. 

🥤 Low-dose, cannabis- and mushroom-infused beverage maker Brēz has unveiled its largest product release to date, Brēz Spirit. The new offering contains 5mg THC, 10mg CBD and 2200mg Lion’s Mane per 50ml shot.

🍍 Just two months after its market debut, Unwell Hydration – the beverage brand founded by podcaster Alex Cooper – has launched a new flavor: Kiwi Pineapple. The new offering is exclusively available at Target stores nationwide.

💪  Remedy Organics has ventured into the ready-to-mix space with the introduction of Plant Powered Protein SuperBlends. Available in two flavors at launch – Chocolate Chip and Vanilla Bliss – the powders contain 24 grams of plant-based protein. 

Our latest distribution news roundup features updates from Kiki Milk, Seoul Juice and a Korean tea brand making its U.S. debut.

🥛 Kids plant-based milk brand Kiki Milk is going into Sprouts stores nationwide, following on the report that it closed a new funding round intended to support its retail expansion.

🍐 Korean pear beverage maker Seoul Juice is breaking deeper into c-store with a QuikTrip rollout.

🍵 And Korea-based OSULLOC is launching in America online and in retail with several premium products.

This special episode of the podcast is the second installment of our limited series, Black Founders Club. Developed in collaboration with Equitea founder and CEO Quentin Vennie, the series explores the challenges and opportunities Black founders face in the CPG space.