• 📈 Inside Zevia's Q4 Sales Growth
• 🛗 This Week On Elevator Talk
• 🥛 Lab-Made Cow’s Milk 
• 🥥 Vita Coco Stabilizes Supply Chain
• 🆕 What Else Is New?

With nonalcoholic booze nearing a billion-dollar business in the U.S., how are independents and multinationals battling it out for a piece of the pie? 

If you’ve followed the history of craft spirits or the evolution of ready-to-drink (RTD), it's no surprise that innovation in drinks continues to be forged by founder-led brands, including in the zero ABV category as well. 

• Nearly 100% of NA spirit and RTD sales are from independent brands, according to insights from 3Tier Beverages using NIQ data. 
• Wine is a completely different story: the majority of NA wine sales are driven by large, existing brands like Fre (Trinchero) or Stella Rosa NA (Riboli). Smaller, independent labels are growing at a slightly faster growth rate versus last year, but make up a smaller share of total category sales.
• And beer is our goldilocks. Dedicated NA craft beer Athletic Brewing is the one to beat, with major beer giants following in sales as craft brands like Sierra Nevada’s Trail Pass and independent Best Day, plus newer innovations like Hop WTR, gaining share. 

So what does all this say about the Adult Non-Alc (ANA) industry? The big takeaway is that the major players in spirits are still apprehensive about leveraging their brand equity into the space because… 

• Discovery is a major part of this trend. The future may be experiences that are different altogether, and go further than replacing a favorite classic cocktail: Things like a wood distillate, a beverage that gives you a different kind of buzz, or a bitter liqueur that makes NA spritzing easy. 
• It’s also harder to nail the flavor and taste of a spirit compared to beer or sparkling wine, and the data shows moderating drinkers may not be even looking to mix their own drinks or straight-sip something zero-proof. Non-alc RTDs are up 165% in the last 52-weeks while NA spirit bottles are up 39%. 

Read the full story for a deep dive in how independent ABV-free spirits brands are leading the charge and what pressures they may face while building momentum. 

Meet hundreds of leading beverage suppliers and sample the latest trends at Bar & Restaurant Expo, March 24-26 in Las Vegas. Discover new products, build valuable connections, and get inspired for your next best-seller. Use code BEVNET to save 20% off your pass! Learn more

After a rocky couple years of variable growth and decline, Zevia ended 2024 on a high note with 4.4% net sales growth in Q4, president and CEO Amy Taylor said in an earnings report this morning.

📉 Full year results still took a hard hit, down 6.8% to $155 million, but fourth quarter net sales of $39.5 million showed a bit of a silver lining.

🔄 Taylor credited the turnaround to execution on Zevia’s strategic growth plan and pointed to a successful viral holiday marketing campaign, new flavor and variety pack launches and new distribution in Walmart for the positive results.

🕯️ Zevia’s pitching a light at the end of the tunnel to shareholders: CFO Girish Satya issued new guidance projecting a “return to growth for the full year” in 2025, boosted by “the tailwinds that we see within the natural soda and better-for-you beverage categories.”

Kombuchade, Sky Barn, Dice Provisions, Grind with Gratitude

Watch founders and CEOs introduce their brands and provide a recap of recent news and updates. This week’s special co-host is Dr. Sebastian Dreher, the Venture Manager – North America for DöhlerGroup, who shared his thoughts, questions and feedback with the participants.

Watch the full episode now.

Here’s a tall glass of alt-dairy news from the past week:

• Boston-based food tech outfit Brown Foods has made the first lab-created whole cow’s milk. UnReal Milk was made via cell-cultured biotechnology and contains all the same essential proteins, fats and carbohydrates of traditional dairy milk – without the cow.
• Dutch ingredients startup Vivici landed a $33.7 million Series A round this week led by APG’s Netherlands Energy Transition & Biodiversity fund. Backed by multinational companies dsm-firmenich and Fonterra, Vivici uses precision fermentation to make proprietary dairy protein platform Vivitein, an isolated whey protein used in many dairy applications.

Coconut water category leader Vita Coco ended the year strong with positive sales growth and rebounded inventory per its fourth quarter earnings call this morning. 

🚢 After ocean freight issues impacted supply in Q3, Vita Coco leadership expressed optimism with volumes normalizing despite minor insecurity about the impact of potential tariffs. Although gross margins were less in Q4, the company’s full-year margins were above FY2023. Here’s a look at some of the numbers:

• Net sales increased 20% year-over-year to $127 million in Q4. Full-year net sales were $516 million.
• Q4 gross margin was 32% compared to 37% in Q4 2023. FY2024 gross margin was 39% versus 37% in FY2023.
• Outlook for FY2025 puts net sales between $555 million and $570 million with gross margin between 35% and 37%. 
• Adjusted EBITDA in the range of $86 million to $92 million

💬 “This strong momentum and much stronger inventory position from last year leads me to be very optimistic for branded growth in 2025,” co-founder and chairman Mike Kirban said in a statement.

It’s Hump Day! Here’s a taste of the new drops and activations from the first half of the week. 

🎩 Oatly’s Coffee Creamers line is getting a “fancy” new rebrand. The marketing campaign bills the plant-based coffee creamers as “The Fanciest Oatmilks on Earth” – a bold claim, surely, but we admit the packs do have a certain swagger about them.

☀️ Why should Coca-Cola Creations have all the fun with imaginary flavors? LaCroix’s latest innovation is canned Sunshine. The bright new flavor name backs a beverage whose real flavor is a “blend of citrus and tropical zest.” 

🫐 Waterloo Sparkling Water’s latest line additions debut this week with two mashup blends of fruit flavors: Guava Berry and Ruby Red Tangerine.

🇮🇹 Sanpellegrino is greeting consumers with CIAO!, a flavored sparkling water line made with real fruit juice, launching in Peach, Blood Orange, Lime and Cherry in 11.15 oz. cans.

🎤 Pop star ENISA is joining Once Upon a Coconut as the brand’s new ambassador and shareholder. She’ll be taking part in marketing campaigns, social activations and fan events.