• 🆕 This Week's New Products
• ✨ Elevator Talk: Pecana, KEY and more
• 📊 Data Dive: Beverage Loyalty Trumps Prices
• 🍷 Pernod Ricard Ditches Wine Portfolio
• ✨ The Kids Love Nostalgia. Ask Hal’s. Plus, Celebs With Cred.

In 2022, writer Kyla Scanlon put forward the idea that America was experiencing a “Vibecession” – the sense that consumers’ feelings about the economy was contrary to its actual strength. There were, of course, some reasons for people to feel this way: rapid inflation hit pocketbooks hard, especially at the grocery store, and financial media was frequently touting the probability of a recession that never came to pass.

Two years later, the disconnect between market and mindset appears to be ongoing, even as inflation has fallen to just 3% as of June 2024 (compared to heights of 9.1% in June 2022). 

According to The New Consumer and Coefficient Capital’s new Consumer Trends 2024 Mid-Year Report, 40% of Americans said rising prices are one of the most important problems facing the country today, more than any other issue – including illegal immigration (28%) and reproductive rights (15%).

That could be because although inflation has fallen to just 3% year-over-year, the cumulative effect has lodged a 19% increase in prices from January 2021 through May of this year, slightly outpacing a 17% cumulative increase in wages in the same time.

So what does this mean for food and beverage? Well, according to the report, consumers may be upset about the market’s state of play but they’re still paying. Or as the report frames it, “The new consumer economy is strong in an otherwise fragile world.”

• Through the trailing 12-months ending in Q1 2024, Shopify stores reported a 23% increase in gross merchandise volume and online grocery reported gross transaction volume up 11%. 

The Vibecession is, as we’ve noted, also helping to boost private label sales, as retailers across channels, from Target to CVS, have rolled out revamped store brands that embrace modern flavors and category trends. In response, CPG giant General Mills is now updating its own portfolio to improve flavor and remain competitive with the store brand sector.

Sales are strong, but where consumers are spending has shifted. Nowhere is that more apparent than in THC and alcoholic beverages. According to the report, more Americans now have a positive perception of cannabis (42% positive vs. 35% negative) than alcohol (just 32% positive and 36% negative).  

Dive Deeper Into Data: Check out our latest Q2 Data Report in Partnership with SPINS

The way in which consumers incorporate their favorite beverages into their day-to-day lives is ever-changing, especially in the coffee and tea space. Our capabilities in coffee and tea can offer you the flavors and ingredients that can shape your products into what consumers desire. Learn more

It's Friday, and that means it's time to round up all of this week’s new product creations and brand collaborations. Here’s a sample of what’s in-store:

🏁 Jones Soda is off to the races with Nitrocross, announcing the upcoming introduction of Jones Craft Cola and Jones Craft Zero Cola through a new partnership with the rallycross racing series. 

🍋 Pressed Juicery teams up with Grammy award-winning music legend (and workout fiend!) Lenny Kravitz to unveil its new limited edition Blue Electric Light Lemonade as a homage to the singer’s latest album. 

⭐ Functional beverage maker Illicit Elixirs joins forces with actress Bella Thorne to launch its Naughty Behavior Citrus Flavor, marking the brand’s first engagement with the entertainment industry. 

☕ Blue Bottle hopes to transport consumers to The Big Easy with its latest offering, the New Orleans-Style Coffee and Roasted Chicory Kit. The kit includes one 12 oz. whole bean bag and one 1 oz. roastery chicory bag, allowing consumers to make their own NOLA cold brew at home.

Check out the full new products gallery on BevNET.

The latest installment of Elevator Talk features leaders from Pecana, KEY, Vigie Limoncello, (parentheses) and Water Plus Supplements.

Watch founders and CEOs introduce their brands and provide a recap of recent news and updates. This week’s special co-host is Adam Louras, a partner with Mercenary, who shared his thoughts, questions and feedback with the participants. He is joined by Ray Latif, the Editor and Producer of the Taste Radio podcast.

Check out the full episode on BevNET.

Even amid a high inflationary period, a good brand still conquers all. At least that was the sentiment from Kroger’s data tracking arm 84.51°. In a recent interview with Consumer Goods, 84.51° insights director Melissa Myres reported that even though 73% of consumers noticed an increase in drink prices, “only 48% were willing to switch to a lower-cost brand.”

💪🏾 Though it might come as little surprise to BevNET readers, 84.51° reported that beverage growth is coming from the functional set with protein, water enhancers and digestive health drinks moving the needle.

📈 The report also unpacked the growth in non-alcoholic beverage alternatives with sales up 28% in the last 52-week period and 32% of respondents saying they are consuming more of NA drinks than in the past.

The world’s largest bev-alc groups have been decluttering as of late and Pernod Ricard has become the latest to offload slower-selling brands. 

📉 The French company is disposing of most of its wine brands to focus on premium spirits and champagne. The wine portfolio over the past 10 years has declined by 6.5%, echoing the dip in global wine consumption in recent years. 

💸 The sale to Australian Wine Holdco Limited, a consortium of international investors, includes ten brands including well-known labels like Jacobs Creek, Stoneleigh and Campo Viejo. 

Sweet. Savory. Celeb. The hosts check all the boxes in an episode that looks at how consumers evaluate authenticity between brands and celebrity endorsers. We also feature an interview with Stephanie Reda, the director of brand development for fast growing snack and seltzer brand Hal's New York.

Listen to the episode now.