• 🚢 Tariffs To Return?
• 👹 Monster's Mixed Earnings
• 3️⃣ Freebrook Takes On 3-tier System
• 🧑‍⚖️ It’s ‘JUST’ A Name
• 👻 GHOST’s Hydration Revamp
• 🐂 Red Bull’s Spring Flowers
• 🔀 Monday Moves

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Lucky Energy (f.k.a. Lucky F*ck Energy) may have eliminated the expletive from its name, but that doesn’t mean it’s lost its edge. 

On the heels of its $11.75 million oversubscribed Series A in September, the better-for-you energy drink maker unveiled its latest ad campaign today, “Shangry,” which uses bathroom humor to underscore its clean ingredient deck. 

• What is “shangry”? It’s the anger you feel when you urgently need to use the bathroom but can’t get to one in time, according to the company.

The new short (read: shart) film follows a visibly shangry woman who has an embarrassing accident in front of her family after downing a traditional energy drink. A Saved-by-the-Bell-style timeout then shows that had she consumed Lucky Energy instead, the accident would’ve been avoided.

The spot – developed in-house – is meant to playfully highlight that Lucky Energy is cleaner, simpler and has 33% fewer ingredients, on average, than the major energy drink players, according to CMO Hamid Saify. 

“We heard a lot of [consumers] that have had digestive issues from X, Y and Z energy drink brands, which is a common thing with caffeine consumption. But they haven’t had that with Lucky,” said Saify. 

Along with the short film, Lucky Energy will have five wrap trucks “mobbing around” New York City – one of the brand’s priority markets – featuring an image of a faux personal injury attorney with the message, “Sharted? Have you been hurt by bad energy drinks? Visit Shangry.net to get free Lucky Energy.” 

Lucky Energy’s marketing tactics may be playful, but they’re also strategic. Since launching in 2023, the brand has landed distribution in over 10,000 stores nationwide, including select 7-Eleven, Circle K and Speedway stores. Its marketing efforts have also directly spurred a deal with Big Geyser (which distributes competitors Celsius and C4). 

“[Big Geyser] candidly told us, ‘We didn’t need another energy drink, but based on the branding and marketing that we’re seeing, and the relationships that you have, we want to take you on,’” said Saify. 

Insiders can check out the full marketing roundup on BevNET.

Last month, bev-alc importers got a brief reprieve when Trump delayed his first round of tariff threats: A 25% levy on imports from Mexico and Canada. On Sunday, Commerce Secretary Howard Lutnick said tariffs will move forward starting Tuesday, but details depend on negotiations. 

💸 Suppliers, particularly tequila importers, have been preparing for hits: Last week the parent company of Jose Cuervo warned that it could face an $80 million loss due to the tariffs. 

🍸 Meanwhile, Diageo will be in a tighter spot than its competitors with nearly half (45%) of the group’s U.S. sales coming from Mexico and Canada – a potential $200 million hit from tariffs.

🪙 U.S. spirit and beer companies are also bracing for the potential impact of a 25% charge on all steel and aluminum imports set for 12 March.

📍 Of course, the tariffs could be pushed off again, in which case we’ve covered some actions bev-alc suppliers can take to mitigate the impact.    

Get the full playbook here.

Monster ended 2024 strong with a 4.9% net sales boost, reaching $7.49 billion and record fourth quarter earnings of $1.81 billion. Nevertheless, as U.S. energy sales growth levels out, category leader analysts had some concerns.

• Despite strong dollar sales, analysts flagged that Q4 operating expenses rose significantly to $621.2 million – forced by impairment charges and payroll increases.
• Pricing action helped the results, with a 5% increase in the U.S. across its product lines excluding Bang, Reign and Reign Storm, beginning November 1.
• Alcohol sales also slumped, falling 0.8% year-over-year in Q4 to $34.9 million.

📈 The Upside? Monster says it has negotiated increased shelf space for 2025 and has a “robust” innovation pipeline with early launches such as Ultra Blue Hawaiian doing well out the gate.

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

A veteran of the craft spirits industry is aiming to shake up distribution options for emerging companies. Sonoma Distilling Company founder Adam Spiegel sees his next step as opening up paths to market for craft spirit brands that have faced difficulty getting in the door with distributors.

• Spiegel has launched Freebrook Imports, a boutique spirit distribution and import company that will initially operate in Northern California. 
• The business is a follow-up to his second enterprise – Corning & Company – an industrial services program that takes on production, packaging and warehousing for other spirits suppliers. 
• Simmering tensions over distribution have come to a boil in recent years, as slower spirit sales pile the pressure on all tiers, and half of craft spirit suppliers looking for distribution saying they’ve been turned down, according to the American Craft Spirits Association. 

Insiders can read more how this new distributor is working to revitalize “a broken three-tier system.”

What’s the difference between “JUST” and “Just”? A little over half a million dollars, in the case of Eat Just. 

⚔️ The vegan egg startup’s decade-long tussle with actor Jaden Smith, co-founder (with father Will Smith) of sustainable packaged water company JUST Water, over the “Just” trademark took another turn when a U.S. District Judge ruled that Eat Just and founder Josh Tetrick must pay $575,000 for violating an agreement governing its use of capitalization on the word “Just.”

💰 The latest update comes after Judge William Orrick issued a $5,000 per day per diem fine on Eat Just for selective use of capital letters in 2023; that total now stands at over $2.8 million, an amount Orrick deemed “excessive.”

📝 The new total was determined after Eat Just provided financial information to the court and in consideration of the company’s “financial resources and… seriousness of the burden.”

Now neatly nestled into the Keurig Dr Pepper portfolio, GHOST Lifestyle is relaunching its RTD Hydration beverage line this week online and in retail.

• Ghost first introduced Hydration products in 2023 and the refresh promises to be “lighter” and “more chuggable” iteration with an updated visual design, according to the company.
• The refreshed flavors include Kiwi Strawberry, Orange Squeeze, Strawbango and a co-branded Welch’s Grape variety.
• The drinks can be found on Amazon and GoPuff and in brick-and-mortar via GNC, CVS and Meijer.

Catch Up: KDP to Acquire Ghost

It’s that time of year: When the seasons change and Red Bull rolls out its latest LTO. 

🌸 The energy drink brand is launching its’ first-ever “Spring Edition” – a Grapefruit & Blossom flavor nationwide this week. It will be available in lilac-colored 8.4 oz. (80 mg of caffeine) and 12 oz. cans.

🗓️ Red Bull’s seasonal “Editions” have been driving the brand’s innovation strategy for several years. It has previously timed Summer and Winter releases. 

Here’s a taste of the people moving around the industry to start off your week. 

⚡ Celsius Holdings Inc. appointed former PepsiCo SVP of Strategic Partnerships Eric Hanson as president and COO, effective March 24. The news comes less than two weeks after Celsius announced its $1.8 billion acquisition of rival Alani Nu. 

🛒 Kroger CEO and chairman Rodney McMullen has resigned after a board investigation deemed his personal conduct “inconsistent” with the grocery company’s policy on business ethics. Lead director Ronald Sargent will serve as chairman and interim CEO while the board searches for a replacement.

🌵 Caliwater, the hydration brand co-founded by actress Vanessa Hudgens, has added fellow former Disney star Demi Lovato as an investor and brand partner.