• 🚚 Distribution: Bored Cow Hits All 50 States, Kul Mocks Brings Variety To Walmart
• 🐄 Lifeway Moo-ves Up
• 👩🏻‍⚖️ No Drinking In Court: Updates On Legal Proceedings For Spirits Industry

A class action lawsuit filed this week is taking aim at one of the central claims behind soda brand Poppi’s prodigious rise: its purported gut health benefits.

The suit, filed yesterday in U.S. District Court for the Northern District of California, alleges that the two grams of prebiotic fiber in a single 12 oz. can of Poppi is too low to have a meaningful impact on gut health, rendering its positioning as a “prebiotic soda” null and void.   

The case hinges mainly on the effectiveness of agave inulin -- the prebiotic fiber source in Poppi -- in promoting gut health. Citing public research and media reporting, the plaintiff’s attorneys argue that “even as much as 7.5 grams of agave inulin taken daily for three weeks is insufficient to confer any meaningful prebiotic benefits.”

“A consumer would need to drink more than four Poppi sodas daily for 21 consecutive days before potentially noticing any meaningful and reliable ‘prebiotic’ effects,” at which point the harmful effects of high-sugar intake would outweigh any benefits. There’s also evidence that consuming too much agave inulin causes gas and bloating, they say.

Often mentioned alongside OLIPOP as the primary driver of the current gut-health ‘pop’ craze -- which has attracted everyone from kombucha brewers to emerging platform brands -- Poppi has fully embraced its role: per lawyers, the brand’s use of slogans like “For a Healthy Gut” and “Be Gut Happy. Be Gut Healthy” are cited as examples of misleading representations. It’s a similar approach as other fermented drinks: see Health-Ade (“Get That Good Gut Feeling”) or Lifeway (“Love Your Guts”).

For its part, OLIPOP has invested in research and collaborated with universities to produce white papers assessing their product’s impact on gut health. In clinical trials conducted with participation by Purdue University, findings indicated that consuming the equivalent of at least one can of OLIPOP (9 grams of fiber) per day for 30 days results in an increase in the intestinal bacteria Bifidobacteria, a critical part of gut function.

Could this open the door for more cases to follow? Fermented beverages have been a legal flashpoint in prior years, particularly with kombucha brands grappling over formulation techniques and testing methodology with regard to verifying alcohol content. The company has also altered its marketing approach in recent months, leaning in on the idea that it’s more of a next-gen soda than as a gut pop.

Yet none of those apparent concerns seem to have hurt Poppi with consumers thus far: the brand made news with a splashy Super Bowl ad back in February, while NielsenIQ scanner data has dollar sales for the brand +150% over the 52-weeks ended May 4. And with studies showing that as few as 5% of Americans get enough fiber in their diets, it’s easy to understand Poppi’s appeal as a better-for-you option. 

The weather is heating up and beverage brands are making moves into retail. A wide spectrum of drink categories have seen distribution gains, from alt dairy and functional RTDs to non-alc alternatives and cold brew coffee. Let’s take a sip of some of the most recent gains:

🐮 Bored Cow announced this week it is now available in all 50 states with over 2,000 stores in its network now. The precision fermentation alt dairy brand announced it now has its Original flavor in 11 oz. cartons, is offering 4-packs and has distribution in retailers like Albertsons, Safeway, Sprouts, Fresh Thyme, Central Market and Shaws, among others.

🍸 For the sober-curious consumers, NA cocktail maker Kul Mocks announced it had expanded its reach in mass retailer Walmart bringing its variety packs of Strawberry Margarita, Blackberry Lime Mojito and Moscow Mule to over 800 stores nationwide.

🌵 Cactus-water brand Pricklee has also picked up a major retail partnership finding its way onto select Whole Foods Market shelves in California, Nevada, Arizona and Idaho. The brand currently offers three flavors (Prickly Pear, Tropical Mango and Wild Strawberry) in 12 oz. slim cans.

Could kefir be the next big health drink? Lifeway Foods, the leading U.S. kefir manufacturer, is hoping it might be as it has honed its message around fitness, wellness and gut health amid a sustained period of sales growth.

📈The Illinois-based brand reported net sales in Q1 2024 grew 17.8% to $44.6 million, fueled by strong volume sales, favorable transportation costs and gross margin expansions, marking 18 consecutive quarters of growth.

🏋🏽‍♂️ Its expansion has arrived as the business explores new channels like gyms, universities and hospitality and looks to grow its consumer base by converting younger shoppers, yogurt consumers and the Hispanic demographic, according to CEO Julie Smolyansky.

🤐 But Lifeway’s growth story has also been troubled by a “family feud” after Smolyansky’s brother Edward Smolyansky and mother Ludmila Smolyansky attempted to oust her from her position in 2022. They have since left Lifeway and founded Pure Culture Organic, a competing kefir brand that debuted at Expo West.

For the full update on Lifeway, check back on BevNET.com later today.

A “major antitrust case” between e-commerce beverage-alcohol platform Provi and the country’s two largest distributors is headed into discovery. Meanwhile a ruling in Tennessee has cracked down on online liquor retailers. 

🙅🏼‍♀️Provi’s lawsuit against Southern Glazer’s Wine and Spirits and Republic National Distributing Co. (RNDC) will be able to go forward after a judge yesterday denied a motion to dismiss the lawsuit filed by the two distributors.

🥊 Provi filed the complaint in March 2022 against the two companies alleging the defendants worked to “boycott, disparage and tortiously interfere with Provi’s business.” The distributors hit back with a motion to dismiss in June 2022, but the judge ruled this week that Provi has “adequately alleged an agreement in violation” of the Sherman Ant-Trust Act. 

📫 Meanwhile Tennessee has drawn a line on DTC shipping: five online liquor stores now face penalties, after an investigation by the Tennessee Alcoholic Beverage Commission (TABC) and prosecution by the attorney general's office. We talked to lawyers when the case was filed about what it might mean for alcohol shipping elsewhere.

Read the full story on BevNET

Today is Friday and you all know what that means…it’s NPG time! We’ve rounded up the hottest new products and packaged them together in a gallery just for you. Here’s a sneak peek at what’s inside:

🥤 Jones Soda makes its first foray outside of glass bottles with the launch of 7.5 oz. mini cans in four of the brand’s most popular flavors: Root Beer, Orange & Cream, Berry Lemonade, and Cream Soda. 

🍇 Welch’s introduces Grape’ade, a new 16 oz. on-the-go “refreshing juice beverage” made with Niagara green grapes and no added sugar. Offered in three varieties – Strawberry, Mango, and Green Grape – Grape’ade will be available at all Publix locations in the Southeast starting June 1. 

🍊 Just in time for summer, Poppi (see above) unveiled its latest nostalgic flavor, Orange Cream. Each 12 oz. can has just 5 grams of sugar and 25 calories.

Check Out The Full NPG On BevNET

On this week’s podcast, the team starts off talking about the 90’s game show Supermarket Sweep. Nosh managing editor Monica Watrous proceeds to test reporters Brad Avery and Lukas Southard on their CPG knowledge from the era with some questions from the long-running game show.

🤖 The team goes on to discuss how artificial intelligence is impacting food and beverage brands. Brad explains how it has been used successfully (and less so) by CPG companies.

🥣 Is granola having a moment? Nosh managing editor Monica Watrous shares some of the data she found on the segment and why new players are coming into the category.

🍊 Lastly, the team examines the possible implications of former Pepsi soda brand Slice getting a brand makeover thanks to trademark acquisition by Suja Life.

This episode is the first in a special series in which the podcast examines the state of Black food and beverage entrepreneurship within the CPG landscape. The series highlights conversations on various aspects of the challenges felt by all entrepreneurs filtered through the experience of Black founders.