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July 27, 2023
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📊 Earnings: KDP Rides RTDs

📊 Earnings: KDP Rides RTDs

Keurig Dr Pepper (KDP) raised its full year net sales outlook from 5% to 6% growth following a strong Q2 performance in its quarterly earnings report this morning.

  • Net sales in Q2 grew 6.6% to $3.79 billion, with year-to-date sales up 7.7% to $7.14 billion.
  • U.S. RTD beverages helped to fuel the performance, with net sales up 11.8% and market share gains across multiple categories.
  • CSDs, seltzer, coconut water, energy drinks, apple juice and fruit drinks all saw strong sales performance, with brands like Dr Pepper, Squirt, Evian, Mott’s and Hawaiian Punch leading the pack. 
  • Independent brands with which KDP is aligned for distribution partnerships also performed particularly well, including Polar, C4 and Vita Coco.
  • In its Keurig business, K-Cup Pods fell -2.3% in the quarter while total at-home coffee trends were “impacted by greater consumer mobility versus the prior year,” as the cultural impacts of the pandemic subside and shoppers make a return to on-premise buying habits.

Read the full recap today on BevNET.



 

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🤼‍♂️ Super Slam: C4 Unleashes New Collab with WWE

🤼‍♂️ Super Slam: C4 Unleashes New Collab with WWE

Nutrabolt, the maker of C4 Energy, and World Wrestling Entertainment have expanded their multi-year partnership with the debut of their first ever co-branded product line. The new collection, set to launch exclusively at GNC stores ahead of WWE SummerSlam in Detroit on August 5, features five limited edition flavors. 

  • The C4 Ultimate Energy Drink x WWE will be available in the new Ruthless Raspberry and Berry Powerbomb Flavors. Like the rest of the brand’s energy drink varieties, the two new additions boast 300mg of caffeine per 16 oz. can.
  • Meanwhile, the C4 Ultimate Pre-Workout Powder x WWE will feature a revamped formulation with 300mg of caffeine and come in Pomegranate PileDriver, Bare Knuckle Blood Orange and Nectarine Guava Knockout flavors. The product contains ingredients such as CarnoSyn beta-alanine for peak performance and citrulline nitrate for increased nitric oxide production. 
  • In celebration of the launch, C4 is debuting its “Not Safe For Work” campaign that explores the right (and wrong) ways to consume C4 Ultimate Energy and utilizes WWE brand ambassadors Seth “Freaking” Rollins, Bianca Belair and Street Profits. 

According to an analysis of NielsenIQ data by Goldman Sachs Equity Research, Nutrabolt/C4 saw a 65.2% increase in dollar sales during the two-week period ending July 15.

 

🍹 Who’s Winning Top Cocktail Placements?

🍹 Who’s Winning Top Cocktail Placements?

As the leaders in the spirits industry gather for Tales of the Cocktails, a new report reveals what brands are dominating the menus at the country’s most influential cocktail bars.

  • Findings highlight the rise of Campari, which is the leading brand by venue presence found in 46.7% of venues, meanwhile the group’s brands are found in 70.4% of the venues included in the analysis.
  • Shake ups in presence and cocktail mentions put Maker's Mark on top for bourbon, El Tesoro leading tequila, and Plantation and Bacardi tied for rum’s top place.

Read the full story on BevNET

 

🆕 New Brand: Kelia Offers Sweet, Spicy Cannabis Sips

We caught the story of a new low-dose cannabis beverage brand coming out of Wayland, Mass. called Kelia

  • Per the article, founder Sarah Patel, a long time cannabis user who stopped during her pregnancy, came up with the idea while seeking a smoke-free way to return to the plant after she stopped breastfeeding. 
  • The drinks themselves come in two extra-enhanced varieties, each with 5mg of THC and 5mg of CBD per 12 oz can: Watermelon Coconut (‘Hydration’ with electrolytes) and Pineapple Jalapeño (Immunity with vitamin c and zinc). A third flavor, Grapefruit Ginger (fiber and prebiotics), has 2.5mg THC. 
  • The product is being manufactured in Easthampton, Mass. using a THC distillate.


 

🆙 Campari: Broadly Positive First Half of ‘23

Italian spirits group Campari reported organic growth of 14% in the first half of the year, boosted by aperitifs, premium bourbon and tequila. But sales slowed in Q2 compared to the first quarter of the year, while price hikes failed to offset rising inflation costs.

  • In the group’s largest market, the U.S., sales grew by 11.7%, or 3.3% in the second quarter. Performance in the first half was mainly driven by the growth of Aperol, Espolòn, Appleton Estate, as well as Russell’s Reserve. 
  • Aperol delivered strong double-digit growth (32.4%) thanks in part to positive pricing, driven by triple-digit growth in the U.S. (122.5%) 
  • Campari delivered solid growth of 13.2%.
  • Espolon showed continued strong momentum in its core U.S. market too (30.8% in Q2).

Read the full story on BevNET

 

🍸 Entrepreneur Frankel is Ready to Mingle

Celebrity tequilas might still be the rage, but ironically next-gen non-alcoholic drinks are where much of the buzz is now thanks to Blake Lively, Katy Perry and others. Next up? TV personality and Skinnygirl founder Bethenny Frankel, who announced this week she’s teaming up with Mingle Mocktails, a line of sparkling mocktails launched in 2017.

  • Frankel, who created the RTS margarita line in 2009, has joined Mingle as a strategic advisor, innovator and ambassador.
  • Skinnygirl Cocktails sold to Fortune Brands' Beam Global (now a part of Suntory) in 2011 for what was rumored to be over $100 million, but likely dramatically less.
 

🖤 Breakthru Beverage Group Founder Dead at 70

Rocky Wirtz, co-chairman and founder of North America’s third-largest distributor, Breakthru Beverage Group has died at the age of 70.

  • Wirtz, also the owner of the NHL’s Chicago Blackhawks ice hockey franchise, died July 25 at NorthShore Evanston Hospital in Illinois following a brief illness, according to a statement.
  • Breakthru was formed in 2015 after the merger of family-owned distributors Wirtz Beverage Group and Charmer Sunbelt Group.
  • “Through his competitive spirit, business acumen and strong leadership, Rocky helped to build many iconic spirits brands over the years and played an important role in the spirits industry’s success,” said Chris Swonger, president and CEO of DISCUS in a statement.


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