• 🌡️ Celsius: Pepsi Cuts Slice Q3 Results
• 🆕 Distribution: G Spot Makes U.S. Debut
• 🥛 SunOpta's Strong Growth Crosses Segments
• 💊 Vitamin Shoppe Owner Files for Chapter 11
• 📈 Zevia Underperforms Q3, Projects Q4 Growth 

On the nation’s hellish version of Christmas eve, what beverages did Americans turn to in hopes of soothing their nerves? While some of our staff hit the Malort, your spirits editor went off-brand and wandered over to the dispensary. Voters in Los Angeles had other ideas. 

While the bev-alc industry has been put on notice by moderating Gen Z and Millenials, rest assured that despite our differences, Americans are still enjoying the traditional pastime of drinking their feelings. Last midterm election in 2022, blue and swing states saw the biggest uptick in orders, with notable sales increases coming from Ohio, Florida, Arizona, California and New York compared to the previous four Tuesdays.

In L.A., where we did some field research at a few liquor stores on Tuesday afternoon, retailers said it was still early and they expected that as the election results clarified they would see more traffic. But as for the preliminary results? 

Champagne if it’s good, whiskey if it’s bad, said one customer to the folks at HI-LO Liquor Market in Culver City as she checked out. Customers were indeed double stocking on whiskey or something “heavier” and bubbles. At Stanley’s Wet Goods, that meant red wine for the “bad” and again, sparkling wine as the alternative. Same thing at Bar & Garden, lots of bubbles for the optimistic drinkers. 

Based on California politics, we’re guessing there were no corks flying. However, Gopuff reported that Champagne orders nationwide were up 93% and alcohol orders increased 37% compared to average Tuesday night demand. 

That somewhat tracks with last election’s results: Longtime champ Tito’s Vodka was Drizly’s top-selling brand overall, but champagne Veuve Clicquot took the number two spot. Spirits finished first among bev-alc segments, ringing up 46% of sales, followed by wine with 40% and beer at 12%. 

But a possibly newer trend? At HI-LO, customers stocking up on booze also went for Adult Non-Alc products to offer their abstaining friends, and particularly ready-to-drink with adaptogens or other functional benefits. We all needed something!

Yesterday, SipSource analysts said they expect downward spirits trends to continue into 2025, but guess it’s nice to know hard liquor still holds a unique role in surviving American politics? 

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Celsius suffered a 33% year-over-year drop (or a decline of $123.9 million) in North America revenue during Q3, thanks in part to previously announced inventory cuts by distribution partner PepsiCo, putting it just slightly above estimates from analysts at Jefferies.

📣 In a statement, Celsius CEO and chairman John Fieldly acknowledged the move had an “outsized and adverse impact on our operating results” while voicing confidence that conditions have “largely stabilized.”

💬 “We remain focused on our long-term growth strategy of expanding our consumer base, broadening our availability, and being the preferred beverage for more occasions,” he said.

📉 Total revenue declined 31% from the same period last year, falling to $265.7 million. The company reported retail sales rose 7% in U.S. MULO Plus with Convenience, citing data from Circana. International sales increased 37% year-over-year, and Amazon sales jumped 21% with Celsius holding a 20% share on the site. 

Read the full recap on BevNET.

🪴 Cannabis beverage brand hi Seltzer launched its new line of delta 9 THC-infused drinks at Total Wine & More. The THC drinks will be available in the retailer’s California, Texas, Arizona and Florida stores with plans to expand into other locations in 2025. 

🍹 After debuting a seasonal Cranberry Sangria Luna Zero flavor at Trader Joe’s this summer, Luna Bay is bringing the variety to The TJX Companies, Inc. and Homegoods next week. Along with Cranberry Sangria, the brand will bring more NA options and variety packs to the retailer’s locations.

⚡ Caffeine- and sugar-free energy drink Update has made moves in Texas with a roll out to all Central Market locations; the chain will carry its Berry, Lime and Peach flavors for $3.49 per 12 oz. slim can. 

😘 Gillian Anderson’s functional wellness brand G Spot has crossed the Atlantic and made landfall in the U.S. at Pop Up Grocer! and online. G Spot is available in four varieties — Arouse, Lift, Soothe and Protect.

Check out the full story on BevNET for more distribution news. 

Plant-based aseptic beverage, broth and fruit snack manufacturer SunOpta reported strong volume-led revenue growth across all segments of its portfolio during an earnings call yesterday. Let’s take a look at the numbers:

• Revenue 15.5% to $176.2 million driven by 20.6% volume growth; that was partially offset by a 2.8% price reduction in commodity pricing 
• Gross profit increased 16.4% to $23.6 million 
• Adjusted EBITDA grew 12.6% to $21.5 million, compared to $19.1 million in the prior year period.

🗣️ What they said: “Volume again drove our revenue growth reflecting the strength of our competitive position. Our growth remains broad based across our customers, channels and product portfolio and we continue to have a substantial pipeline of new business opportunities. We continue to make short-term investments in our supply chain to support our growth and implement processes and controls.” - Brian Kocher, CEO

Stay tuned for the full look into SunOpta’s earnings and insight on the expected impact of Starbucks’ non-dairy surcharge change.

The future of The Vitamin Shoppe is uncertain as its parent company, Franchise Group Inc., filed for Chapter 11 bankruptcy protection on Sunday; the business said it fully intends to keep the specialty channel chain store open along with its other retail properties.

• The filing was a long time coming. Franchise Group had accrued months of revenue losses following a $2.8 billion buyout by its backer B. Riley Financial that took the company private last year. 
• B. Riley took on $600 million in debt to underwrite the deal and has since come under scrutiny from the SEC over potential wrongdoing.
• B. Riley has begun selling off assets to cut its debt and co-founder Bryant Riley said the company expects debt related to the Franchise Group deal to drop to $125 million by the end of the month.

Despite underperforming net sales expectations for Q3, zero sugar soda brand Zevia is projecting a return to growth in Q4 thanks to its expansion to 4,300 Walmart stores during the previous quarter, the company said in its latest earnings report this morning.

📊 Net sales were down by $6.7 million in Q3 to $36.4 million, but the company has lowered its adjusted EBITDA loss to $1.5 million, down from $9.1 million in Q3 2023. Net loss was $2.8 million.

💪 CEO Amy Taylor told investors and analysts that the brand is making “strong progress” in its DSD initiatives focused in the Pacific Northwest, with grocery scan data showing stronger performance in the region during the quarter thanks to increased merchandising and service levels.

🆕 Zevia is also focusing on new marketing campaigns that aims to reinforce an image of the brand as “a great tasting, zero sugar, clean label soda in a world awash with fake and artificial,” Taylor said.