Also, this week's New Products Gallery͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetOctober 25, 2024
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📰 Today's Top Story

👻 Exploring KDP’s Acquisition Of GHOST Energy

👻  Exploring KDP’s Acquisition Of GHOST Energy

Here at BevNET, we waste no time digging into a tasty new M&A deal and with the news yesterday that Keurig Dr Pepper was acquiring a majority stake in energy drink and sports nutrition brand GHOST, we put on our tan jumpsuits and strapped on proton packs to catch some more details.

The deal caps off a year of high-profile moves for KDP in which it aligned with some of the fastest-growing names in key categories like sports drinks (Electrolit), coffee (La Colombe) and now energy. The GHOST acquisition was described in a blog post by KDP chief strategy officer Justin Whitmore as helping shape the “now and next beverage portfolio” for the multinational drink maker. Whitmore’s team was drawn to the brand because it is a “high-potential trademark.” KDP has been discussing a potential deal for over a year with GHOST’s founders Dan Lourenco and Ryan Hughes, who both will be helping lead the brand under KDP’s U.S. Refreshment Beverages segment.

One big immediate question: How will KDP manage its investment and distribution of Nutrabolt’s C4 energy drink alongside GHOST?

“We view GHOST as complementary to C4 – targeting a different set of consumers and lifestyle occasions – and this deal should enhance C4’s potential by adding important scale to our energy platform and DSD network, including in small format stores,” said a KDP spokesperson in response to email questions.

Alongside C4 and GHOST, KDP’s suite of energy drinks includes a forthcoming line from Black Rifle Coffee and another female-positioned RTD from supplement maker Bloom, as the company aims to create a “multifaceted energy platform” to address a range of need states and occasions. While C4 is geared towards the fitness community and gyms, GHOST speaks to next-generation consumers in gaming with the potential of expanding into on-premise occasions at music festivals or live-performance venues, as noted by KDP CEO Tim Cofer in yesterday’s earnings call

GHOST has ambitions of going deeper into CPG, as evidenced by recent forays into protein cereal and hydration drinks. The brand has “some emerging LRB products that operate in interesting white space categories, (e.g., protein, sports hydration),” said a KDP spokesperson,  which can also benefit from enhanced DSD and commercial capabilities.

None of that will likely matter to GHOST’s network of Anheuser-Busch affiliated distributors, who are once again left to watch a major energy brand depart for another strategic. The beer company’s investment helped launch GHOST as a RTD brand, with management repeatedly praising the partnership in quarterly earnings calls; if any company was going to acquire GHOST, many imagined it would be AB. But as with past distribution resets in energy, category disruption may open up the runway for a fast-rising independent – names like Bucked Up, Lucky and RYSE Fuel – to fill in gaps left behind by GHOST’s exit.

 

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👉🏼 What You Need to Know 👈🏼

👷 Yakult Breaks Ground in Georgia

Japanese probiotic drinks brand Yakult has broken ground on a new American production and bottling facility in Bartow County, Georgia this week, its second U.S. location after the company first extended manufacturing to the U.S. with a California plant in 2014.

🏭 The new facility is set to be around 250,000 sq. ft. with a 160,000 sq. ft. production floor and 40,000 sq. ft. of office space. The site will include six lines, automated packaging systems and a 250-ton air chiller.

🔺 Production is slated to begin in 2026 and will produce up to 2.7 million bottles per day at peak capacity.

⚾ Yakult’s premier product is an 80 mL probiotic yogurt drink, which has been rising in popularity in the U.S. over the last decade. Earlier this year, the brand entered a multi-year partnership with the Los Angeles Dodgers and previously saw a spike in awareness after being featured in the 2018 Netflix film To All the Boys I’ve Loved Before.

 

🆕 Gallery: This Week’s Hot New Sips

🆕 Gallery: This Week’s Hot New Sips

It’s Friday, and you all know what that means…. another new product gallery is here! We’ve rounded up the hottest new products and packaged them into a neat array. Here’s a sneak peek at what’s inside:

⚡ Seeking to capture a share of the $23 billion energy drink category, Stok Cold Brew Coffee has dropped Stok Cold Brew Energy. Available in three flavors at launch – Vanilla Cream, Mocha Cream and Caramel Cream – each 11 oz. can contains 195mg of caffeine and a trio of B-vitamins, ginseng and guarana. 

🍅 Grillo’s Pickles has ventured into the brunch space by partnering with V8 to release V8 Grillo’s Dill Pickle Bloody Mary Mix. The new mix combines the richness of V8 tomato juice, natural cucumber flavor and spice blend with the tang of Grillo’s signature brine. 

☀️ Death Wish Coffee Co. has brightened up its portfolio with the release of its first Light Roast blend. According to the brand, the three-bean blend was crafted to highlight the sweet fruit notes of Colombian coffee, the bright acidity of Peruvian coffee and the depth and body of premium robusta.

Check out the full NPG on BevNET.

 

🤖 NotCo Develops A.I. Designed Fragrances

A computer may not have a sense of smell, but food tech company NotCo is bringing its A.I.-powered R&D system to the fragrance sector, announcing a new partnership with Latin American company Cramer to launch a new Generative AI Fragrance Formulator.

🐮 Based in Chile, NotCo is best known for its plant-based meat and dairy alternative products, such as NotMilk, which uses its proprietary A.I. platform Giuseppe to identify ingredients and formulations that can best approximate the taste and texture of animal-based products.

👃 NotCo is now bringing Giuseppe to the perfume and cologne market, claiming in a press release that it blind-tested 13 of its A.I. generated fragrances with Cramer’s “expert noses” who gave their approval to the machine’s formulas.

🪞 The innovation shows that companies using generative A.I. are looking far beyond food and beverage development and NotCo and Cramer said they are currently in talks with beauty brands about bringing these new products to the market.

 

💰 Real Water Sinks $5 Billion Deeper

​What’s another $5 billion to an already bankrupt company? Real Water is about to find out: this week, a Nevada jury awarded that exact sum in punitive damages to a group of 15 plaintiffs who suffered liver damage after consuming “alkaline” water tainted with the chemical hydrazine.

🤯 The same jury awarded the plaintiffs $230 million in compensatory damages earlier on Tuesday. That’s on top of the $3 billion and $129 million in damages already awarded from prior cases.

😭 Defense counsel argued that the punitive damages were “astronomical” and more appropriate for a global corporation like Coca-Cola rather than Real Water and its 30 employees, according to a report in Law360.com.

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