Amazon is refining its wholesale business model and, in the process, forcing thousands of brands to transition to its consignment-style platform, known as Seller Central, by Nov. 9. That may sound daunting but we tapped a couple of Amazon experts and they believe the switch may actually lead to long term benefit for these businesses. 

Quick rewind: In September, the e-commerce retail behemoth notified a selection of companies selling through its wholesale-style, Vendor Central platform that they would be kicked off. They were left with two options: transition to Amazon’s Seller Central platform or quit selling on Amazon entirely.

“Amazon Guru” Betsy McGinn, founder of McGinn Ecomm, said she wasn’t astonished by the move, pointing out that the retail giant made the same style of cuts about five years ago. 

• The change largely targets brands doing less than $5 million on the platform, but McGinn emphasized that “Amazon has a lot of metrics” and likely factored in how profitable a brand is, the category it plays in and a handful of other categorizations while deciding who would stay and who would go.  

“Any brand could be affected by this,” said Stephen Gary, co-founder and CEO of Amazon marketing, consultancy and management firm Acclerazon. “Although I do expect that food and beverage brands are more likely to be cut as the resources required for forecasting, storing and shipping expirable items is greater than non-expirable items.”

Overall, the forced transition isn't necessarily bad news, McGinn and Gary emphasized. They both believe brands of this size and selection are better suited for Seller Central because they can control pricing, inventory, assortments and the experience with the end customer.

What should brands keep in mind as they work through the transition and why is Amazon doing this in the first place? 

Insiders can access the full story for all of the insights. 

The popularity of flavored beers is on the rise. From fruity sour beers to barrel-aged stouts, the flavor choices are wide-ranging. And, if you have questions about creating a successful and delicious new brewery product, the Product Development team at Allen Flavors has the answers you need. Learn more

Sports stadiums and arenas are huge opportunities for beverage brands to get ‘cans in hands’ of thirsty consumers, but those deals are not only hard to land but also not easy to manage. Olipop is taking a nuanced approach as it locks in partnerships at the L.A. Clippers new Intuit Dome, the N.Y. Liberty’s Barclays Center, and with a couple professional men’s and women’s soccer franchises.

🥤 Competing with Big Soda in these venues is expensive and challenging from a supply chain perspective, but Olipop is utilizing unique naming rights — think Prebiotic or Functional language — to land sponsorships without having to go head-to-head with the larger beverage strategics.

⚽ Chasing emerging sports leagues like the WNBA and professional soccer are ways to get in early with teams and fans.

🫰 The trade-off is fairly simple: Arenas and teams offer more choice with in-stadium concessions leading to more sales revenue and drink brands get a big stage to introduce themselves to new consumers.

Keurig Dr Pepper (KDP) today posted a net sales increase of 1.3% year-over-year to $3.89 billion in Q3, fueled by solid growth in U.S. refreshment beverages and momentum in its international segment. Here’s the top-level view: 

• Net sales in U.S. refreshment beverages grew 5.3% to $2.4 billion, driven by a volume/mix growth of 4% and higher net price realization. Meanwhile, net sales in the U.S. coffee segment slipped 3.6% to $1 billion. 
• Net sales in the international segment increased 0.4% to $0.5 billion.
• Diluted EPS climbed 21.6% to $0.45

💭 “In Q3, we were encouraged by further improvement in our volume/mix performance despite a muted operating environment, and also demonstrated building cost discipline throughout the organization. Both are important elements underpinning our confidence as we focus on a strong finish to 2024,” said Tim Cofer, CEO, in a prepared statement. 

⏩ Looking ahead, KDP reaffirmed its fiscal 2024 guidance for constant currency net sales growth in a mid-single-digit range and adjusted diluted EPS growth in a high-single-digit range.

🤝 Leading the news was this morning’s announcement that, KDP agreed to acquire energy drink and sports nutrition business GHOST, bringing one of the category’s fastest growing brands into its expanding energy portfolio. 

Keep an eye out for a full earnings recap, and more M&A analysis, on BevNET later today.

American whiskey sales growth is stalling under the impact of inflation, with volumes falling 2% from January to August this year, according to a new report from IWSR US Navigator.

📉 Between 2019 and 2022, American whiskey volumes in the U.S. had a 5% CAGR. But volumes dropped by 1% from 2022 to 2023, and this year has seen the decline worsen.

🥃 The slide is “almost entirely driven by losses in the Standard-and-below” price tier of products under $22.49 per 75cl bottle – which has a 59% share of the category. Fewer new brands and variants entering the space have also exacerbated the issue.

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Mateína, the Canadian yerba mate maker backed by podcaster and health influencer Andrew Huberman, is launching a dry take on the energizing tea category with its latest innovation: Yerba Sticks, an on-the-go powdered line launching online this month.

🧠 Mateína launched in 2019, co-founded by the husband and wife team of CEO Nicolas Beaupré and Elodie Simard, and launched with an RTD yerba mate line. Earlier this year, the brand announced an investment from podcast star Huberman in conjunction with investment firm Tiny, which acquired a majority stake in the brand.

🍋 The Yerba Sticks come in Lemon Lime and Orange Mandarin flavors, containing zero sugar, 100 mg of caffeine and an electrolyte blend in each stick. They are now available on the brand’s website for $24.90 per 15-pack.

🇺🇲 The innovation follows a launch into the U.S. market this year where it is looking to quickly expand its presence, including a brick-and-mortar rollout in May beginning with Erewhon stores.

For the full story, check it out on BevNET.

Functional beverage brand TRIP is joining forces with consumer mental health company Calm on a co-branded can featuring a proprietary blend of botanicals to promote mindfulness and relaxation – and to drive consumers to Calm’s website via a QR code printed on the can.

🧘 Consumers who scan the QR code on TRIP’s Mindful Blend and will be offered a free three-month premium membership trial to Calm’s platform of guided meditation videos and sleep aids. As of November 2022, the company reported it had around 4 million subscribers.

😀 TRIP’s relaxation drinks contain functional ingredients such as Lion’s Mane, ashwagandha, L-theanine and 120 mg of magnesium per can. It’s currently sold in the U.S. on Gopuff and in retailers like Bristol Farms and Mother’s Market.

💬 “TRIP is all about helping people find balance and prioritize their mental well-being in today’s fast-paced world," said TRIP founder Olivia Ferdi in a press release. "We’re so excited to partner with Calm on this game changing product, and to truly transform daily health for millions of people.”

This week, senior reporters Brad Avery and Lukas Southard were joined by BevNET managing editor Martín Caballero. The group starts the podcast with a conversation about how actor Simu Liu sparked a viral conversation about cultural appropriation centered on bubble tea. The podcasters chat about Jack Owoc’s new caffeinated beverage Ai Energy. Marty goes on to discuss some of the trends he was tracking at this year’s NACS show in Las Vegas.