Keurig Dr Pepper (KDP) has a large portfolio of dry coffee partners; the conglomerate, after all, is the home of the K-Cup. And it’s certainly played with other liquid brands: High Brew, Forto, even fellow JAB stablemate Peet’s have all been part of its ready-to-drink push.

But now it’s making an even more significant move into the RTD coffee set by investing $300 million in Philadelphia-based La Colombe, taking a 33% stake in the brand (it would appear at a $900 million valuation).

The long-term licensing, manufacturing and distribution agreement gives KDP a new player in the $3.8 billion RTD coffee set, while offering the coffee roaster a strategic partner in the K-Cup category – which La Colombe will be taking full advantage of, it appears.

Here’s what we know so far:

• The capital infusion makes KDP the second largest investor in La Colombe behind majority owner and chairman Hamdi Ulukaya.
• KDP will begin its distribution of La Colombe’s RTD coffee in “late 2023, while the launch of La Colombe branded K-Cups will happen during 2024,” according to the press release.
• La Colombe is vertically integrated, owning its entire production from sourcing to roasting to packaging. But there’s no word yet if the brand will offer up its canning capabilities to its bagged KDP stablemates like Tully’s or Newman’s Own.
• The investment will be used by La Colombe to accelerate growth and pay off debt. KDP's investment in the brand represents a multiple of approximately three times its estimated 2024 consolidated net sales.
• In October 2020, La Colombe signed a 10-year distribution agreement with Molson Coors only to have that partnership end rather abruptly this year. The beer and beverage distributor announced in November 2022 that it was phasing out its interests in both ready-to-drink coffee and CBD beverages. The partnership officially ended March 31, 2023.
• La Colombe founder Todd Carmichael has been out of leadership for about two years – the company is majority-owned by Chobani founder Hamdi Ulukaya. 
• Deal was run by Guggenheim Partners and Skadden, Arps on the KDP end and Blank, Rome, LLP for La Colombe.

Stay tuned for more on the announcement on BevNET.

It was only on January 2 this year that Buffalo Bills safety Damar Hamlin nearly died after suffering cardiac arrest on the field during a Monday Night Football game. Now, as the 25-year-old prepares to suit up again for the upcoming NFL season, he’s bringing that ‘don’t quit’ attitude to, well, Don’t Quit!

• Hamlin has joined Don’t Quit!, a sports-focused protein and energy brand, as an equity partner. The deal is his first official beverage brand partnership.
• Don’t Quit! was launched in 2020 by celebrity fitness trainer Jake Steinfeld in partnership with L.A. Libations and KDP.
• Earlier this year, Don’t Quit! merged with “clean sports energy” brand X2, bringing on its CEO Mark French to lead the brand. The company also raised $10 million in March.
• The company plans to release a series of videos beginning this fall, in time for the start of the NFL season, featuring Hamlin interviewing “everyday athletes” who have come back from tragedy, such as a woman who survived a car crash and was told she would never walk again who later recovered and ran a 5K.
• “My focus every day is making a positive impact on the world,” Hamlin said in a statement. “DON’T QUIT’s mission, to help everyone persevere through life’s peaks and valleys, and to never give up, is aligned with who I am and what I stand for and exactly what I want to be a part of.”

Check back later today for the full story on BevNET.

Alani Nu – the performance energy drink, powder and snack brand founded by fitness influencer Katy Hearn – may be exploring a full or partial sale of the company at a valuation of over $3 billion, Reuters reported this week, citing four people “familiar with the matter.” The company is said to be working with JPMorgan Chase & Co. “as it studies its options,” but no deal is certain.

• Alani Nu has been among the fastest growing brands in the better-for-you, performance energy set and over-indexes with women. According to NielsenIQ, retail dollar sales for the company’s energy drinks have grown 55.4% to over $368.3 million in the 52-week period ending July 1.
• The brand is operated by Kentucky-based Congo Brands, which also runs PRIME. Congo owns a “significant stake” in the company per the report. 
• While Alani Nu has been one of the fastest risers in energy, finding a strategic beverage buyer without a stake in the energy category may be a challenge. Coke is aligned with Monster (which is poised to soon take Bang under its wing); PepsiCo owns Rockstar and MTN Dew and is also partnered with Starbucks and Celsius; KDP invested in Nutrabolt’s C4; AB InBev has backed Ghost, and Molson Coors has ZOA.
• That’s not to say there’s zero options. Perhaps Constellation Brands could be interested? The alcohol conglomerate was reported to be in talks last year about a merger with Monster, but that seems to have fallen by the wayside. Alani Nu’s broader portfolio – which also includes protein drinks, protein and pre-workout powders and snacks – could, perhaps, also make it more attractive to a less beverage-centric strategic. That’s all just speculation on our part, though.

Throughout the years, plenty of beverage brands have made the leap into the frozen aisle, from Coca-Cola attempting a Powerade Freezer Sports Bar to the 2005 frozen Snapple debacle. Better-for-you popsicle and ice cream bars GoodPop has decided to go the other way around, with the launch of a kids’ sparkling juice drink this week. 

• It is part of the brand’s strategy to “clean up the classics” by offering a zero sugar added alternative to soda or juice that is also packaged in BPA-free aluminum cans.
• The drinks come in 7.5 oz. mini-cans and are available in three flavors: Fruit Punch, Lemon Lime and Orange.
• So far, distribution is limited to select Costcos in the Northeast with Midwest locations coming soon and its DTC business online launching this week.
• Cracking a cold mini-can seems preferable to letting a popsicle melt in a cup and adding carbonated water, but everyone has their own way of doing things.

Read the full story on BevNET.

Embracing one of the more popular policy changes put into effect during the COVID-19 pandemic, Michigan yesterday became the 23rd state to make cocktails to-go orders from bars and restaurants permanent.

• Since the beginning of the pandemic, 23 states and the District of Columbia have enacted laws to permanently allow cocktails to-go, while 10 others have enacted laws that allow cocktails to-go on a temporary basis.
• DISCUS has made the campaign a priority since the pandemic shut downs sparked cocktails-to-go legalization, and numerous states are still considering making their laws permanent.

Most people over the age of 35 might not be too familiar with LSU Gymnast and social media influencer Livvy Dunne, but the kids love her! Now, energy drink maker A Shoc is hoping that her addition to its brand ambassador team will help it to vault higher in the category.

• Dunne has over 7.5 million followers on TikTok and recently participated in Sports Illustrated’s 2023 Swimsuit Edition.
• She joins a sizable list of professional athletes and influencers representing A Shoc’s Accelerator energy drink, including New York Yankee Aaron Judge, Super Bowl champion Travis Kelce and Peloton’s Tunde Oyeneyin, among many others.
• While A Shoc has compiled an All Star team of athletic ambassadors, the brand is still struggling to gain traction in the crowded energy category. NielsenIQ reported sales down -21% in the 52-week period ending July 1.

Haven’t had enough caffeine yet? In more energy drink news, gamer-focused brand G Fuel announced a new collaboration with virtual pet website Neopets for an exclusive, limited time product line only available at San Diego Comic Con from July 19-23.

• The G Fuel x Neopets merchandise collection features mini 15-serving tubs of three fan-favorite flavors (Snow Cone, Hype Sauce and Clickbait), a Slushie Cup and three “Doodlez Charms” collectibles. 
• Wait, what the heck is Neopets? Founded in 1999 and still going today, Neopets is a child-friendly “virtual pet” website where kids can adopt and care for digital pals, play games, and learn firsthand about the economic woes of hyperinflation.
• Maybe you had to be there: At its peak in the mid-2000s Neopets had around 25 million users, but that had fallen to just around 100,000 daily users by 2017. For the millennials who grew up playing the game, however, there’s certainly a nostalgia factor to mine.
• Is there a comeback in store? This week, Neopets announced it has closed a buyout deal from its parent, NetDragon, and will again become an independent company for the first time since 2005. The new business has secured $4 million in financing.
• That makes G Fuel’s LTO well-timed to the tech business news cycle. But it’s all part of G Fuel’s M.O.; the brand has released numerous video game themed, co-branded products in the past, including Sonic the Hedgehog and Mega Man, among others.