• 🍹 Tilray's RTD Cocktails
• 🏭 Alkaline Water Co. Rebuilds 
• 🏈 Josh Allen, CPG Investor?
• 🌊 ICYMI: Fundraising Starts to Flow?
• 🍅 Vision & Virality — How Sauz Became One Of The Hottest Brands In CPG

From the playful rise of #WaterTok to the wellness appeal of prebiotic sodas, consumers are reshaping what they expect from a simple sip. Flavored water is leading the charge, bridging fun, function, and flavor in ways brands can’t afford to ignore. See where innovation is headed next. Learn more

Premium bottled water sales have continued to climb in recent years despite inflationary pressures weighing on consumers. The segment was valued at $36.19 billion in 2024 and is projected to grow at a CAGR of 7.5% between 2025 and 2030. But what is driving this growth?

There’s been a generation-based evolution since the category’s rise, which began nearly two decades ago. Price wars and a “race to the bottom” to sell stock cases for cheap “ripped all the profitability” out of bottled water. Now larger companies are eyeing growth through profitable, premium plays, said Kaumil Gajrawala, Beverage, Household Products and Healthy, Active, Lifestyle and Outdoor (HALO) Strategies at Jefferies. 

Last year, premium bottled water prices ranged from $22.73 (FIJI) to $33.45 (Evian) per 12-bottle case. With such a hefty price tag, the ability to sell them one at a time makes them an even more attractive proposition.

Unlike mass and value brands dependent on case pack purchases for profit, premium bottled water companies pull significant profits with fairly low volume in comparison. Gajrawala believes this gives the segment a safety net within the complicated consumer environment.

Coca-Cola-owned Smartwater has become one of the greatest success stories in the premium bottled water space. 

• When the conglomerate acquired Energy Brands (a.k.a. Glaceau), then-CEO Neville Isdell was focused on flagship Vitaminwater, labeling it the “ultimate and enduring icon of refreshment.” 
• But, nearly two decades later, Vitaminwater’s sales have slowed and Smartwater has emerged as Coke’s H2hero.
• In 2023, it usurped PepsiCo-owned Aquafina climbing 14.1% to $1.3 billion, representing an 8.8% dollar share of the category and stealing the top-selling bottled still water spot at retail.

Unlike value brands, premium waters are also built around their ability to differentiate. Just look at Essentia’s alkalinity, Smartwater’s electrolyte-tinged purity and the imported accent of Evian and FIJI as evidence. 

Of course, what’s on the outside of the bottle is equally important for capturing new consumers, as evidenced by the influx of sustainability-focused premium water formats like rPET (Waiakea) and aluminum (PATH Water, Smartwater). 

“The definition of if you’ve successfully branded yourself is whether you can charge a premium for it.” said Gajrawala. 

🆓 Get the full story in the recently released March/April issue of BevNET Magazine. 

Cannabis giant Tilray Brands can’t lay off the booze. The U.S. beverage division of Canadian Tilray Brands debuted Cruisies last week, a line of ready-to-drink vodka and rum canned cocktails. 

Tilray’s bev-alc division – nearly 30% of the company’s total business – has developed with the acquisitions of several breweries but this is the company’s first foray into the category that now makes up nearly one-fourth of total spirits volume.

The 6% ABV 12 oz. cans are now available across Long Island, New York, with plans to expand in the fall and new products expected in 2026.

Go Deeper: Tilray Hemp Drinks Hit 1,000 Points of Distribution

The Alkaline Water Co. restoration project continues, as the publicly traded company confirmed this morning it has finalized its previously announced acquisition of manufacturing equipment from FZA Note Buyers, a Florida-based LLC.

The stock-funded acquisition, announced in February, is being pitched as “another potential milestone in our company’s transformation,” per CEO Ricky Wright, who returned to the brand in December after resigning (or being pushed out?) in 2022.

However, the company will have to plot its comeback without the Alkaline88 trademark, which reverted back to copacker and chief creditor Hiru, which pivoted to mining after selling off its owned equipment.

Catch Up: Alkaline Water Co. Aims to Wright Ship

Meet Ignite+, the most affordable way to get started with SPINS. Choose your retailers and channels. Unlock brand and competitor insights. Launch data-driven strategies to accelerate sales in the first 90 days. Packages start at $250/month. Request a demo to learn more! Learn more

Will De Soi, Graza and/or IQBar soon be getting a "tush push" on sales from Josh Allen? 

• The possibility is there with the announcement today that the Buffalo Bills quarterback is joining Cashmere Fund as a partner. 
• The publicly traded VC fund uses its capital to make investments in private companies, offering distributions and twice-yearly redemption periods to its shareholders. 
• Allen will be using his platform and his cash to support portfolio companies, according to Axios' Dan Primack.

As we learned from FABID’s recent report, VC funding for CPG isn’t quite roaring back to previous highs, but the past quarter did provide some encouraging momentum in dealmaking. Those were just some of the stories we’ve been tracking over the past month, in case you missed them:

🍉 Calypso (King Juice) marked its first-ever acquisition by taking on rising canned watermelon water brand Mela, which Calypso CEO David Klavsons noted is well-positioned to benefit from his company’s supply chain infrastructure and active DSD network. Read the full story here.

💧 Hydration is hot right now, but Las Vegas-based Wet Hydration has taken measured steps towards growth since launching in 2025. The functional beverage company added $4.5 million in funding this month (on top of $1.5 million last year), but other moves —  moving to a 12 oz. can with new branding, bringing on former Celsius EVP of sales Jon McKillop — may prove even more impactful long-term. Read the full story here. 

🚚  After Sazerac’s exit in 2023, Republic National Distributing Company (RNDC) has seen more valuable brands follow it out the door. Brown-Forman and Tito’s Vodka departed earlier this year, but the loss of spirit-based ready-to-drink High Noon — the dollar-share leader (28%) among spirits-based RTDs in the 52-week period ending February 22, according to NIQ data — to Reyes at the beginning of the month is perhaps an even bigger blow. Read the full story here. 

Troy Bonde and Winston Alfieri aren’t selling your father’s ragu. Instead, the 25-year-old co-founders of Sauz, a bold, culture-forward pasta sauce brand, are reimagining what it means to build a modern CPG company from the ground up. And, it’s working.

Listen to the episode now. Also available on Spotify and Apple Podcasts.