Non-alcoholic beverage sales slowed in the two-weeks ending January 27, with volume declines worsening in the period, according to the latest analysis of NielsenIQ data by Goldman Sachs Equity Research.

💲 Dollar sales were up just 0.4% in the two-week period, versus +1.3% in the four-weeks

🐌 Meanwhile, volume declines dropped by -2.2% (-0.8% for four-weeks) while average pricing was up just 2.6% (+2% in four-weeks).

⚡ Energy Drinks, which has been one of the strongest performing categories in recent years, were up just 1.8% in the period. CSDs (+1.8%), Sparkling Water (+2%) and Coconut Water (+7.6%) all reported positive, albeit decelerated, dollar sales growth.

Sticking with energy, frontrunner Monster Energy Company – including Bang – saw dollar sales declines remain relatively flat, dropping to -6.8% (-6.7% in the four-weeks). Still fighting for the top spot, Red Bull sales rose 1.2% in the two-week period (+1.2% in the four-weeks) while volumes fell -4.1%. 

Rising better-for-you star Celsius grew dollar sales 67.6% accompanied by +73.6% volume growth and a -3.5% pricing decline. PepsiCo, the brand’s primary distribution partner, saw its own portfolio of Rockstar and MTN DEW drop -13.9% against a -17.8% volume slide and a +4.7% price increase. Meanwhile, sales of Starbucks slid a steep -38.5%. 

Other emerging brands saw double-digit gains in the category including C4 maker Nutrabolt (+55.3% sales and +47.9% volume), Alani Nu (+18.7% sales and +29.8% volume) and GHOST (+34.2% sales and +33.3% volume).  

Read the full recap on BevNET

Call it the Oatly effect 2.0. As consumers increasingly lean into food-away-from-home occasions and plant-based producers look for ways to differentiate and diversify their businesses, they’ve landed on foodservice. 

But this time around, the purpose is a bit different than when oat milk was popularized by way of the barista bar. Reminder, the Swedish alt-milk maker lost a significant share of that business due to production issues as it tried to take its new fanbase with it into retail. Plant-based brands today are instead eyeing the channel to help drive sustainable, incremental sales and pressure test product concepts and manufacturing capabilities ahead of larger retail rollouts. 

For more on how and why plant-based brands are battling it out to build in foodservice, read the full story on Nosh.

For once, there’s a new drink that won’t get you high. Meet MTN Ready, a new brand of functional drink powders created by a team of ingredient industry figures (including Bob Bloom, formerly of Wild Flavors) designed to offer a broadly appealing, versatile solution to treating the negative effects of high elevation. 

🤔 MTN Ready is looking to claim a niche within the functional drink space that has been left relatively untouched; its direct competitors include Colorado-based Acli-Mate, which markets single and multi-serve powder formats, and Oxyfix. But that hasn’t stopped electrolyte drink mixes like Liquid I.V. and DripDrop from associating their products with helping consumers adjust to high elevations, while being careful about making explicit callouts on their respective packaging.

💲 Under the umbrella of parent company Peak Brands, MTN Ready is targeting becoming a broadly accessible travel staple a la Airborne: the product comes in 5-count stick packs priced at $19.99 ($4.99 per stick) and is available online now.

Read the full story on BevNET

In spirits distribution news, we checked in with caffeinated cocktails Bold Move Beverages and NightOwl Martini, newcomer Lodestar Whiskey, and flavored tequila Madam Paleta.

 ☕With the espresso martini still trending at a millennial bar near you, NYC-based NightOwl Martini is pushing into new states as part of its aim to “own the coffee and alcohol” space. The caffeinated martini, which comes in vodka and tequila bases, is now in Tennessee and Connecticut after making its debut last year in New York, Florida and New Jersey. 

🛒 Speaking of getting your double buzz on, whiskey and cold brew “Cold Brooze” cocktail landed at five Total Wine & More locations across Texas right in time for the holidays, leading the startup to its best sales month on record. The founder also added some sales help and an advisory board member who has some success himself taking a Texas brand national. 

🇲🇽 Staying in that geography, we also checked in flavored-infused tequila Madam Paleta, which has made some progress in its pilot market of College Station, Texas. The brand is differentiating from the flavored spirits segment with a more cultural approach, offering quality tequila infused with natural flavors inspired by Mexican paletas (popsicles). After signing with RNDC, expect the brand to keep pushing neighborhood-by-neighborhood into the rest of Texas. 

For the complete report, including an update from a Distill Ventures’ brand and big news from Dirty Shirley, read the full story on BevNET

Who is winning the milk wars? According to the Wall Street Journal, it's something of a stalemate for now. The newspaper laid out the marketing battle being waged across the country between plant-based milk and dairy derived from cows.

 🍼 Although much of what was discussed in the story might be old news to BevNET readers, the WSJ piece did lay out how the lobbying effort by dairy milk and plant-based producers is pulling in everyone from the cookie monster (a “multifaceted individual” who dunks in almond milk sometimes) to politicians from both sides of the aisle.

💭 Plant-based may be where the growth is coming from but the category’s $2.5 billion in sales last year was still dwarfed by dairy milk with $15.8 billion, according to Circana data presented in the story.

🫣 Despite the best efforts of lobbyists for the dairy industry, it appears that plant-milk is here to stay with investors continuing to finance an ever-growing list of brands that are taking up more shelf-space in retail coolers and shelves.

If third time's the charm, what happens on the fourth go-round? CPG focused Encore Consumer Capital is soon to find out following today’s announcement of the closing of its fourth fund, totalling $258 million in commitments. 

🎯 The fund will continue to invest in “lower middle market companies with between $10 million and $150 million of annual revenues targeting attractive and underserved segments of the consumer staples industry,” per a press release. 

3️⃣ Encore IV has already made three investments from the fund thus far: frozen pastry maker Banneton Bakery, seasoning specialists Twang, and General Produce.

📂 The San Francisco-based firm has previously backed companies such as Caterina Foods, 4505 Meats, Lion Beverage and ISOPURE.

This month, explore Ghia's smart out-of-home strategy that conquered the non-alcoholic market, The Fresh Market, Goodles, and Pocket’s Chocolates share tips for attracting buyers and decision-makers at Expo West, get updates on Expo West with the event team, and Gerry Khermouch and Ken Sadowsky share insights on how to optimize resources during fundraising challenges. Read the story.