• 🆕 This Week’s New Sips
• 🚨 Poppi-Pepsi Deal Incoming?
• 🫧 Bye Bye Bubbles?
• 📸 Expo West Product Tweaks
• 💰 Santatera Stands By U.S. CPG 
• 😣 Hawaiian Bottler Deal Controversy
• 📩 Did Expo West Actually Deliver? It Depends On Who You Ask.

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Californians hoping to see hemp-derived THC drinks return to store shelves will need to wait a little longer. This week, the state has extended its ban on “intoxicating hemp products” for three more months.

The news did not surprise most stakeholders. Remember: the industry is battling similar regulation in multiple states. Yet, the expected readoption of the state’s emergency measures (first implemented in September) does not make it any less disappointing or concerning for the category’s long-term goal of sensible oversight, regulation and enforcement.

For the Coalition of Adult Beverage Alternatives (CABA), the announcement is “unfortunate” but provides a “real-time case study” of the “ineffectiveness” of bans, said CABA chair Diana Eberlein. 

Eberlein contends that California’s six-month enforcement does not make an adequate case for prohibition, but instead moves consumer demand from an age-gated framework to a black market: “Bans hurt the good actors, not the bad ones,” she said.

The battle for hemp-based beverages is playing out coast-to-coast. Currently, Texas, Florida and Georgia – three of the biggest markets for hemp-derived beverage retail sales – have bills moving through statehouses that would severely limit or effectively ban the products from stores.

From a legal standpoint, the readoption is “procedurally normal” but the ban was “wildly inappropriate from the start,” said cannabis industry lawyer Eric Postow, managing partner at Holon Law Partners.

Hemp drink brands contend that a lack of sensible regulation similar to beverage alcohol is the problem. It creates a patchwork of distribution and deprives the state of needed tax revenue.

“Instead of a sweeping ban, the state and Governor Newsom should have pursued a narrowly tailored solution to address specific concerns,” Postow said. “This move underscores a failure to legislate effectively, leaving businesses and consumers caught in regulatory uncertainty.”

The ban will remain in place until June 24, when it can be readopted for one more three-month period, before regulatory legislation must be introduced.

Insiders can access the full story for a complete understanding of what comes next.

Before we head into the weekend, we rounded up all of the hottest new products and sorted for our latest new product gallery. Here’s a preview of what was stocked this week:

🤠 Actor Cole Hauser’s Free Rein Coffee Company launched its first light roast blend: Buckskin. The 100% arabica coffee blend features tasting notes of brown sugar and citrus.

🌸 Red Bull has dropped its first ever U.S. Spring Edition flavor, Grapefruit & Blossom, in full-sugar and sugar-free formats. The LTO is packaged in lilac-colored 8.4 oz. and 12 oz. cans and is now available at select retailers nationwide.

🍵 San Francisco-based coffee producer Pop & Bottle has unveiled its latest ready-to-drink creation, Strawberry Matcha Almond Milk Latte. The new offering is crafted with premium Japanese matcha and sweetened with real strawberries and coconut sugar. 

Check out the full gallery on BevNET.

The future of modern soda giants Poppi and Olipop has been a wellspring of speculation for the last several years, but could an exit finally be happening? 

🐝 That was the buzz last week across Expo West, and today Bloomberg reports that Pepsi is in advanced talks with Poppi to close on a $1.5 billion-plus acquisition for the prebiotic pop brand, citing sources with knowledge of the matter. 

🔌 No other details or quotes were offered in the story, but Bloomberg confirms that Pepsi has pulled the plug on its bid to enter the prebiotic soda space through the Soulboost brand, as we reported back in December. 

🏷️ If that price tag proves correct, the acquisition would dwarf Pepsi’s $1.2 billion layout for Siete Foods last October. 

Stay tuned to BevNET for updates on this developing story.

New Beverage Showdown Winner, Recoup, will be sampling their delicious, sparkling "Gut Healthy Hydration" beverages at booth #N1529. Crafted with electrolytes, prebiotics, and ginger with no added sugar or stevia, Recoup delivers restorative refreshment with a ginger kick. Learn more

There’s a time for reinvention and revolution – but that’s probably not Expo West, at least not this year. 

A lack of truly ground-breaking products, however, doesn’t mean there wasn’t plenty of fascinating tweaks, iterations and progressive takes on the familiar categories that have dominated for the past decade. That includes a potentially potent format from Pop & Bottle, gazpacho in a bottle, a renewed take on kombucha and so much more.

Check out the full gallery on BevNET.

With a fresh threat from President Donald Trump to tariff European wine, spirits and other alcoholic products, bev-alc companies are once again pawns in an escalating trade war.

• Trump threatened a 200% tariff on champagne, wine and other alcohol products from the European Union on Thursday, and doubled-down that he “is not going to bend at all.” 
• However, the Distilled Spirits Council of the U.S. (DISCUS) said it was, “encouraged by reports that EU commissioner for trade and economic security Maroš Šefčovič and U.S. secretary of commerce Howard Lutnick will discuss the proposed escalation of tariffs on U.S. and EU spirits and wine [Friday].”
• The tariff saga escalated after the U.S. began imposing 25% tariffs on all steel and aluminum imports from all trading partners on Tuesday, prompting retaliatory measures from the EU that would include a 50% tariff on American whiskey. 

As we’ve seen with Canada and Mexico, what Trump says he’ll do and what he actually does are two different things. Plus, a report from Bernstein analysts reminded readers that the family behind French luxury group LVMH – which houses the most valuable wine and champagne brands in the world – is “very friendly with President Trump and attended his inauguration on the podium.”

Early-stage CPG food and beverage businesses often bring narrow margins and a high degree of operational complexity to the table. Add in the current, on-and-off trade war, along with the associated supply chain challenges, and any international investment firm would likely press pause on new ventures. 

🏃 But Santatera Capital is not slowing down, recently investing $1 million into better-for-you gum maker Refresh and backing the newly launched $7 million venture fund and accelerator program, Ignite20.

🗺️ The Mexico-based asset manager focuses specifically on U.S CPG food and beverage companies, or international businesses in the CPG sector looking to enter the U.S. market. Its advisory board includes plenty of industry heavy hitters while the existing portfolio is stocked with success stories.

⚔️ As the trade war between the U.S. and Mexico looms, starts and stalls, Santatera believes its strategic support is more important than ever. 

Insiders can access the full story to understand the full scope of Santatera’s investment strategy and glean all of the details about Ignite20.

Bottling company Eco-Growth Strategies, Inc. may have jumped the gun when it announced it had executed a $4.5 million merger agreement to acquire embattled Honolulu bottler Hawaiian Springs Water Company on Wednesday. 

• Eco-Growth said it plans to acquire all assets of Hawaiian Springs, including seven acres of leased facilities in Hawaii with a 33,000 sq. ft. main bottling site. 
• Hawaiian Springs corrected the record this morning, stating that Eco Growth Strategies referenced an older agreement, made before February 1, 2024, when a receiver was appointed over the company’s assets amid an ongoing lawsuit with lender, Leonite Fund I.
• In 2023, Hawaiian Springs was sued by its landlord alleging it had defaulted on a power purchase agreement. Leonite said it loaned the business cash to help it become current on rent, but sued in January 2024 over concerns that it would continue to default.
• It appears that any acquisition will need to be approved by the District Court for the District of Colorado, which is overseeing the suit from Leonite.

We're not exactly at odds, but there's definitely some healthy debate among the hosts around how to assess Expo West 2025. And it turns out, we're not alone. The biggest question on everyone's mind: how do we truly evaluate innovation, and what does it mean for the future of the food and beverage industry in the near term?

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