• Equitea Pivots To Café Concept
• LaCroix Marketing Boosts National Beverage’s Growth
• Alkaline Water Acquires Distributor
• RNDC Lays Off 1,700 Employees
• Collective Project THC Beverages Land In U.S.
• Family Dollar and Dollar Tree Break Up
• Now Streaming: Taste Radio

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Keurig Dr Pepper’s mission to control its own distribution is continuing apace.

The beverage giant was cleared to sever ties with West Coast bottler Reyes Coca-Cola last week after a Texas judge ruled that KDP had the right to not renew a long-term agreement which was set to expire in October.

Reyes hoped to force KDP to renew its deal, which includes bottling and distribution of the name brand Dr Pepper line, under a California state law that dictates such agreements can only be ended due to poor performance. But with the deadline fast approaching, the courts found that KDP is free to go its own way.

And it makes sense, given that KDP picked up its own Western U.S. manufacturer, Arizona-based Kalil Bottling, last year.

The plan now (pending an appeal) is for KDP to bring Dr Pepper into its own DSD network, which it’s been talking about expanding ever since Dr Pepper Snapple Group and Keurig Green Mountain merged back in 2018.

The move for more control also could have something to do with just how strong the Dr Pepper brand has been performing of late. 

• Last year, the soda passed Pepsi as the number-two CSD in the U.S. 
• The conglomerate’s total CSD portfolio has easily leapfrogged Coke and Pepsi in dollar sales growth over the past year, up 7% in the 52-weeks ending May 31, per NielsenIQ, compared to Coke’s 4.9% and Pepsi’s mere 1.4%.
• Innovation is also a pillar. Dr Pepper has been quick to roll out the LTOs and it's been extra-responsive to social media trends.

For instance, as Fortune noted last month, Dr Pepper has capitalized on the rise of Dirty Soda – which began out in Utah as a popular alternative to alcohol and hot drinks within the state’s Mormon communities, and has since picked up steam nationwide thanks to the TikTok bump and reality TV hype. 

With Dr Pepper soon to be moved from Reyes onto KDP’s own trucks, having total control is looking like a mighty good prescription.

Insiders can read the full story on BevNET.

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Equitea is reframing its future in the beverage business through hospitality. After the adaptogenic tea brand lost its sole co-packer and walked away from a VC deal, it pivoted to open a “matcha studio” pop-up in Baltimore’s Remington neighborhood in February. 

• The success of the project has now pushed the brand to lease out a permanent home and focus on “intentional growth” as a café.
• Amid successful growth in Sprouts Farmers Market locations and an opportunity to move into Walmart, the brand faced supply challenges in 2024, leading it to refocus around its core mission of community empowerment.

💭 “Our desire from the beginning has always been to be more than just a product. We want to create a holistic brand experience that lives beyond just the product,” said founder Quentin Vennie.

Read how Vennie is transforming Equitea to serve the Baltimore community on BevNET.

National Beverage Corp. wrapped up Q4 and fiscal year with positive sales gains, citing innovation and marketing from its portfolio leader, LaCroix. 

LaCroix’s recent flavor additions – Sunshine, Cherry Lime and Blackberry Cucumber – “provided a growth stimulus in a challenging consumer environment,” according to the company. 

National Beverage also highlighted LaCroix’s national bus tour featuring a branded vehicle advertising for its Sunshine flavor and new pro sports partnerships, including men’s and women’s soccer teams and deals with WNBA teams Indiana Fever and Dallas Wings. 

Insiders can read the full earnings recap on BevNET.

The makers of Alkaline88 intend to acquire an unnamed “regional wholesale distributor and logistics platform located in the central U.S.” Terms of the deal were undisclosed. 

• After a challenging period, the publicly-traded company has been rebuilding through acquisitions as it works to vertically integrate.
• The unnamed acquisition platform generated sales of over $17 million in 2024, with a portfolio that includes beverages, snacks, and tobacco products.
• In April, The Alkaline Water Co. acquired manufacturing equipment from Florida-based FZA Note Buyers.
• CEO Richard Wright (who resigned from his post in June 2022) returned to the brand in December, sharing an open letter to investors on his plan to rebuild the company.

Related Reading: Alkaline Water Co. Rebuild Underway With Equipment Buy

Republic National Distributing Company (RNDC) is laying off more than 1,700 employees as it withdraws from California.

• The distributor's departure has left more than 2,000 wine and spirits brands in search of new wholesalers to reach the country’s largest spirits market. 
• Meanwhile RNDC is attempting to shore up business in another major market and reinvest in its Texas operations.
• But in California, paperwork was filed July 1 to layoff 1,756 employees across eight locations, making it one of the biggest slashings the middle-tier or spirits industry has seen in years. 

We’ve been covering the fallout with updates rolling in nearly every week, click here for a quick listen.

Read the full story for more on the layoffs.

Canadian cannabis beverage brand Collective Project is now available for DTC shipping to 25 states across the U.S. 

• The brand was acquired by fellow Canadian cannabis business Organigram in April. At the time, Collective Project had a retail presence in Minnesota, the Carolinas and Indiana.
• The brand will be launching Fetch, a new line of intoxicating hemp sodas, later this summer.

Related Reading: THC Drinks Crush It Online – But For How Long?

Family Dollar and Dollar Tree have officially parted ways. 

Brigade Capital Management and Macellum Capital Management acquired the Family Dollar business segment from Dollar Tree for an aggregate purchase price of $1 billion in cash.

• Net proceeds from the sale are estimated to total approximately $800 million. 
• As a standalone company, Dollar Tree will focus on expanding its assortment, driving new store growth, and attracting new customers. 

Related Reading: Are Consumers Moving Past Inflation? The Answer is Complicated.

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