Plus, this week’s hot new sips͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetJune 07, 2024
DAILY BRIEFING
Today's news & insights for the beverage industry.

In this issue of Daily Briefing

  • 🆕 This Week’s Hot New Sips
  • 🐮 Bird Flu Update: Infected Cows Have Died
  • 🥃  Why Rémy Shrunk Its Cognac Bottle
  • 🍇 Welch’s Will Relocate to Waltham
  • 🛒 Canned Cocktails Close In On Grocery in PA
  • ✅ How She Got Walmart To Say ‘Yes’ In The Pitch Meeting

📰 Today's Top Story

☕ Branding Beans: Why Bones Coffee Co. Uses Major IP Holders For Innovation

☕ Branding Beans: Why Bones Coffee Co. Uses Major IP Holders For Innovation

If you’ve never tried coffee flavored like milk that’s been soaking in a mountain of Fruity Pebbles, now is your chance. 

That sentence may be enough to kill a refined coffee snob, but it’s clearly working on a lot of other people, according to Bones Coffee Co. CEO/founder Travis Rule and co-owner/creative director Tyler Nelke. The Florida-based brand has been thriving online thanks mainly to its winning blend of creative flavors – besides the aforementioned Electric Unicorn flavor, think stuff like Sinn-O-Bun (cinnamon bun) or S’Morey Time (s’mores) – and design flair. 

The result is something a bit like Liquid Death; not just a shared love of skull imagery and jokey product names, but a brand with a clear aesthetic that looks good on a package and a t-shirt. Bones’ approach has been to create unique art for each individual SKU that connects to the core visual theme, placing the mascot in a different context to reflect the flavor. That’s all being done by an on-staff team of artists who have been with the company since its early days, Nelke explained. 

That approach has opened the door for licensed collaborations with major IP holders across the world of entertainment – but that in itself isn’t so rare in coffee these days. Beyond the growing galaxy of celebrity or influencer-affiliated startups, you can find bagged coffee emblazoned with the logo of your favorite NBA team, comic book hero or 1980s movie franchise, just to name a few options. When compared to the slapped-on logos of some of its competitors, Bones’ hand-drawn designs and artistic interpretations stand out. 

That’s an opportunity for Bones to play to its strengths: rather than partnering with something like the UFC (Nelke claims he backed off interest), think IPs steeped in decades of pop culture history; more specifically, think Disney. After initial teaming on a limited edition release tied to Tim Burton’s “The Nightmare Before Christmas,” Bones’ relationship with the Mouse House has yielded flavors based on “Indiana Jones” and “The Haunted Mansion,” and now with a three-flavor release celebrating the original “Star Wars” trilogy. 

Getting to play in the Star Wars sandbox was a “dream” for the company, but also an opportunity to draw new consumers into the brand. As decades of spending on licensed Star Wars merchandise attests, fans of the franchise are eager to indulge when tempted. 

“Every time we've launched a [limited edition] like Star Wars, we see a pretty large spike in new customer acquisition,” said Rule. “It’s been great for opening doors, like with Walmart. I think that exposure and people seeing that we're working with a brand like Disney gives us more credibility.” 

It’s unclear if the “Star Wars” flavors or other licensed flavors will make the jump into RTD, but Bones isn’t waiting around: over a year in the making, its reformulated ready-to-drinks are a major piece of its plans to grow offline in grocery retail with the likes of Albertsons and Walmart. The latter chain has notably been eagerly recruiting next-gen coffee makers like Throne and Happy to its shelf, among others. 

Those products all have their own differentiated takes on coffee, and Bones clearly has its own. 

“I think from a product development standpoint, we love that challenge,” said Nelke. “ We love [thinking] ‘what can we do now?’ That keeps us innovating in this space. And I think that's really important for us as a brand, not only for us to keep things fun around here, but to keep people interested because that's what they've come to know from us is ‘Look at bones and all their wacky interesting flavors. I gotta try that.’”

Go Deeper: Read up on the latest celebrity coffee launch on BevNET.

 

👉🏼 What You Need to Know 👈🏼

🐮 Bird Flu Update: Cows Infected With Virus Have Died in Five States

🐮 Bird Flu Update: Cows Infected With Virus Have Died in Five States

As the avian flu outbreak continues to wreak havoc across the country, infected dairy cows in five states have now died or been slaughtered by farmers because they didn’t recover, as reported by Reuters

💵 The farm belt economy is facing a greater threat than previously anticipated due to the deaths. Though farmers have long dealt with having to cull poultry due to bird flu, dairy cows cost a great deal more to raise, making each death more of a hardship. 

👀 According to Reuters, a 1,700-cow dairy in South Dakota sent a dozen animals to slaughter after they failed to recover, and killed another dozen that contracted secondary infections. Elsewhere, a farm in Michigan had to eliminate roughly 10% of its 200 infected cows after they also failed to recover. 

💭 A U.S. Department of Agriculture (USDA) spokesperson told Reuters that the agency knew of a few deaths but said “the vast majority” of cows bounce back from the virus. To date, bird flu has infected dairy cattle in more than 80 herds across 10 states since March.

 

🆕 Gallery: This Week’s Hot New Sips

The weekend is almost here and this week’s new beverages already have your whole Saturday filled to the brim. Here’s a small sip of what's in store:

🌹 Everything’s coming up roses for Clevr with the rerelease of its limited edition Rose Matcha SuperLatte. The powdered beverage mix features a vegan collagen blend along with the brand’s hero ingredients like tremella mushroom extract, tocotrienols and hyaluronic acid.

🌈 In celebration of Pride Month, Brew Dr. Kombucha is rolling out a limited edition Love Wins rainbow-wrapped bottles and cans, marking the sixth consecutive year of the brand’s partnership with the Trevor Project. 

🍫 Koia is making its first foray into shelf-stable drinks with the introduction of plant-based Nutrition Shakes in Cacao Bean, Vanilla Bean and Chocolate Banana flavors. Each 11 oz. carton features an almond milk base and boasts 20 grams of plant-based protein and 6 grams of fiber.

Check out the full NPG on BevNET later today. 

 

🥃 Appealing to Downtrading Consumers, Rémy Shrinks Its Cognac Bottle

Rémy Cointreau’s troubles continue as the major cognac player reported net sales were down 22.9% for the fiscal year ending in March, during an earnings call yesterday. 

  • Rémy has been hit with declining cognac sales in the U.S. against “fierce promotional pressure” and a “sluggish environment.” Globally its cognac sales fell 25%.
  • To meet that challenge, the group is focusing on its VSOP brand, and offering promotions in key U.S. states as well as a new 375 mL bottle for consumers who are down-trading. 
  • The group shared that it was implementing a more “efficient sales structure” and had reduced U.S. staff by 10%.

The Big Picture: Cognac, which makes up 4% of spirits dollar share off-premise, was down 10.4% at the end of the last year, according to NIQ and is one of the main categories struggling to rebound after post-pandemic highs.

 

🍇 Welch’s Will Relocate to Waltham, MA

Fruit-based food and beverage giant Welch’s today announced it will relocate to Waltham, Mass., next year from its previous headquarters just 10 miles down the road in Concord, Mass.

🏭 The new Waltham headquarters will include 60,000 sq. ft. of office and lab space, which Welch’s claims will be the largest office relocation in the Boston suburbs in 2024. 

🔨 Renovations on the new space will begin this summer, with the full relocation slated for next spring. 

💭Welch's is at a pivotal point in our journey where we are driven by ambitious growth and innovation goals as an organization. Moving into this new space in the thriving business community of Waltham will offer unparalleled opportunities for our company,” said Trevor Bynum, president and CEO, in a statement. 

 

🛒 Canned Cocktails Close In On Grocery in PA

The Pennsylvania state senate has passed a bill allowing low-ABV RTD cocktails to be sold in beer, grocery and on-premise venues. Bill 688 now heads to the house. 

📜 The bill is part of the spirit industry’s ongoing campaign to allow equal access for spirit-based RTDs into channels where beer and wine can be sold. Bills in Alabama and Maryland have also been introduced this year to open up more RTD channels or reduce taxes.

🧊 The battle for the coldbox is expected to continue with RTDs a major bright spot for spirits, and global volume and value forecast to grow at a CAGR of +3% between 2023 and 2028, according to IWSR’s latest report.

 

🎙️ Now Streaming: Taste Radio

✅ How She Got Walmart To Say ‘Yes’ In The Pitch Meeting

✅ How She Got Walmart To Say ‘Yes’ In The Pitch Meeting

How did Harken Sweets, an upstart brand of better-for-you candy bars, land placement in the checkout aisles of thousands of Walmart stores just months after its debut? Founder & CEO Katie Lefkowitz explains how she secured and prepared for her pitch meeting with Walmart and why the category buyer said “yes” almost immediately.

Listen to the episode to understand her strategy.

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