Plus, Yerba Madre Summer SKU, Reed’s rebuilds, more updates from Uncle Arnie’s͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
August 14, 2025
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In this issue of Daily Briefing

  • Yerba Madre Teases Seasonal Strategy
  • Reed’s ‘Challenging’ Path To Rebuild
  • More Details On Uncle Arnie’s $7.5M Raise
  • Good Boy’s Golden State Swap
  • CPG Week: A Daring Deal and Danone’s Dogged Pursuit of Lifeway

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📰 Today's Top Story

🗽 New York’s Kava Krackdown

🗽 New York’s Kava Krackdown
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Brad Avery

Senior Reporter

Just two years ago, The New York Times was printing lengthy exposés on the latest craze in the sober-curious movement: kava bars. A year later, the city went to work on shutting them all down.

This week that campaign got the greenlight from a Manhattan judge, who ruled that New York City public health and safety officials have the authority to close bars and restaurants serving drinks made from kava, the psychoactive plant from the Pacific Islands traditionally and socially used for relaxation.

The case in question involved a tiki-themed cafe called Kavasutra, with the owners arguing that steeped kava drinks count as single-ingredient foods, per the FDA. But the judge harshed their mellow, declaring kava an illegal food additive – one with a reported history of dangerous side effects at that.

While kava itself – that is, the plant – is not banned in NYC, kava-based beverages are formally forbidden. This latest ruling paves a path for even more kava bar closures in the Big Apple.

Industry group The Kava Coalition strongly opposed the decision, claiming it relied on “discredited allegations” around kava’s supposed impact on the liver.

What’s more: the Coalition cited a March 2025 FDA letter that confirmed steeped kava drinks count as single-ingredient foods, suggesting that New York’s laws may actually conflict with federal policy.

Reminder: Kava has emerged in the beverage industry via brands like Melo, Leilo, White Rabbit, New Brew and Mitra9, but there’s still questions around regulatory approval in the U.S.

Brands have also found themselves tangled up in the increasingly popular – and allegedly addictive – blend of kava and kratom, another plant with euphoric effects existing in a legal gray zone.

Also this week, the FDA announced it will begin a crackdown of its own on concentrated, synthetic kratom products. That move will likely impact bars in Florida, where kratom and kava have similarly enjoyed on-premise success.

There’s little word right now on how these regulatory moves might affect CPG brands, but it does signal that prospective kava and kratom purveyors should proceed with kaution.

Insiders can read the full story on BevNET to understand what this means for CPG brands.

 

👉🏼 What You Need to Know 👈🏼

☀️ Yerba Madre’s New Summer SKU Teases Seasonal Strategy

☀️ Yerba Madre’s New Summer SKU Teases Seasonal Strategy

Guayaki’s rebirth as Yerba Madre was unveiled back in May, but a new name and design is just the entry point for a new innovation strategy to take root, as we learned this week.

The RTD yerba mate category leader is riding momentum from its revamp to release a new core SKUWatermelody – that also serves as its summer seasonal flavor. 

We have the full scoop right here from Jennifer Brush (Yerba Madre’s VP for Product Innovation & Brand). Click the link to learn how consumers played a role in creating the product, where Watermelody fits into the portfolio and what this means for future seasonal releases.

 

📉 Reed’s Q2 Highlights ‘Challenging’ Path To Rebuild

After losing some key retail placements, Reed’s is trying to “earn its way back in,” said CEO Cyril Wallace on an earnings call Wednesday. 

  • The comment was reflected in the results with the company posting declines across the board in net sales, gross margin and elevated net loss.
  • Margin was affected by inventory write-offs as Reed’s optimizes its portfolio and “rebalances” across its sales regions.
  • The company said it will prioritize its recent move into the modern soda set with its “multifunctional,” 4-SKU line of prebiotic and adaptogenic carbonated soft drinks.

Learn more about how Reed’s is rebuilding, including a renewed focus on foodservice and c-stores on BevNET.

 

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💰 More Details On Uncle Arnie’s $7.5M Raise

BevNET caught up with Uncle Arnie’s CEO Theo Terris on Wednesday to learn more about how the hemp beverage company is planning to use its fresh $7.5 million investment.

While the company launched as a high-dose, marijuana-infused shot and drink maker in the dispensary channel, its move into intoxicating hemp last year has opened up huge growth potential in markets like Minnesota, New Jersey, Florida and others.

Uncle Arnie’s is infusing itself with more sales and marketing team members as it targets long-term adoption by larger retail chains in mass, club and conventional grocery channels.

Read all of the updates in the full story on BevNET and catch-up on other recent raises from HD9 brands.

 

🚚 Good Boy’s Golden State Swap

Another big ready-to-drink brand is switching up its distribution in the Golden State. 

Good Boy Vodka will move its distribution to California Beverage Solution (CBS) this month, a network of primarily Anheuser-Busch InBev (A-B) distributors

The move follows Patco Brands, the producer of Rancho La Gloria and Big Sipz, to CBS as Republic National Distributing Company (RNDC) winds down operations in the Golden State. 

Good Boy Vodka’s John Daly-backed vodka iced tea carved out a niche on golf courses, bleeding into national retail demand elsewhere – and even made a recent cameo along with Daly in Netflix’s Happy Gilmore 2.

Read the story on BevNET for the full scoop.

 

🎙️ Now Streaming: CPG Week

💰 A Daring Deal and Danone’s Dogged Pursuit of Lifeway Foods

💰 A Daring Deal and Danone’s Dogged Pursuit of Lifeway Foods

An acquisition, an acquisition attempt and an acquisition target. 

In this episode of CPG Week, the hosts dive into the latest deal news surrounding Daring FoodsLifeway Foods and Bachan’s. Plus, the podcasters discuss why artificial intelligence is no replacement for an attorney…Just ask Jack Owoc.

Click here to listen to this week’s episode. Also available on Spotify and Apple Podcasts.

Like what you are listening to? Please don’t hesitate to rate our show and leave a review on your podcast platform of choice.

 

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Have feedback or a tip to share? Reach out to Adrianne (Assistant Managing Editor, Newsletters) at adeluca@bevnet.com.

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