Also, a brand new episode of the CPG Week podcast͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
March 22, 2024
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🍋 New Flavors, New Flights: Owen’s Steps Toward “Premium” Brand Vision

🍋 New Flavors, New Flights: Owen’s Steps Toward “Premium” Brand Vision

As zero-proof, ‘adult’ non-alcoholic drinks continue to proliferate with no end in sight, the traditional role of a “mixer” is in something of a paradox -- if you mix a mixer with itself, is it still a mixer? That kind of thing.

But for its part, Owen’s Craft Mixers isn’t shying away from its original approach of giving bartenders and mixologists a faster, more convenient way to quickly make high-quality cocktails, most recently with its Espresso Martini Mix and now with the launch of a backbar staple, Club Soda. The brand is a predominantly an on-premise business, and there’s still ample runway ahead via major partners like Live Nation, which co-led a $10 million investment round alongside NBA star Jimmy Butler last summer.

Fueled by growth, Owen’s has arrived at something of an inflection point, per a conversation with ever-ambitious founder and CEO Josh Miller earlier this week. The company continues to run lean (20 employees), but several key sales positions have been filled as it gears up to support a new batch of big name partners, headlined by JetBlue and Chili’s. The former represents Owen’s first time as an in-flight option, with Classic Lemonade (more on that one later) and Margarita Mix being added to all domestic and international JetBlue flights. Meanwhile, Chili’s is integrating Owen’s Espresso Martini Mix to its beverage program in 1,100 restaurants.

At retail, past gains are being validated: Owen’s is moving from 5 to 9 SKUs at 8,100 CVS stores. The next target is the natural channel, where the brand’s clean ingredient deck (along with the aforementioned interest in differentiated non-alc options) has helped score the likes of Sprouts (500 stores) and Wegmans Food Markets.

And while Miller noted that Owen’s has always invited drinkers to “enjoy on its own” on the cans’ labels, the introduction of Classic Lemonade represents the most overt step yet towards a broader audience. The 8.2 oz can line is sweetened with 100% agave nectar and comes in at 35 calories, but though it shares an identical branding architecture to Owen’s existing drinks, it will be the first to be marketed outside of the mixer set, in 4-packs for $5.99.

So is it a mixer or not? Both, says Miller, who said that in testing Lemonade has been equally popular with kids as it has with budding coffee impresario Jimmy Butler, who uses it with espresso and tonic water. Either way, it’s a step towards becoming the “ultimate premium beverage brand... that can appeal to any demographic,” a decidedly different approach to category peers like Q Mixers and Fever Tree. Instead, Liquid Death and Good Culture are cited as reference points for their ability to create “clean and easy-to-understand” products. 

Lemonade worked for Beyonce and Barbie – we’ll see how Owen’s compares.
 

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🆕 Gallery: More Hot New Sips From Expo West

🆕 Gallery: More Hot New Sips From Expo West

Continuing with our Expo West 2024 coverage, here's a look at some of the hottest new products and trends we spotted on the show floor last week, including Bored Cow's take on drinkable yogurt, KOR's new Hydrate line and much, much more.

🐮 Bored Cow has been earnestly working to break down barriers to entry for its animal-free “milk,” and moving to other dairy analogues seems to be the next step. The brand’s drinkable yogurt comes in 7 oz bottles in three flavors: strawberry, vanilla and passion fruit mango. 

🍊 Malibu-based cold-pressed juice shot brand KOR is literally getting bigger: its new three-SKU Hydrate line – available in Orange Ginger, Citrus Refresh and Superfood Quench – still use 30% cold-pressed juice per bottle, but get an added boost of electrolytes (potassium, magnesium) and B vitamins.

🥤 Having differentiated itself as a rare organic option within the flavored sparkling water space, Nixie is now seeking to stand out in another saturated category: soda. At the show, the brand unveiled its new line of organic Zero Sugar Sodas featuring Classic Cola, Root Beer and Ginger Ale varieties. 

Check out the full gallery on BevNET.

 

🍷 Explore The Growing Overlap Between Winemaking and Spirits

🍷 Explore The Growing Overlap Between Winemaking and Spirits

As wine sales continue to slide, some winemakers are seeking greener pastures in spirits (literally). 

While it’s nothing new for larger wine suppliers to cross into new categories, in the last year some small winemakers have looked to spirits for growth. Some are pivoting into another class of luxury products, like agave, while others see the move as a push towards sustainability

🌵 El Negocio Tequila is one of them, which made a splashy $10,000 entrance at auction late last year (it was a one time thing although the blanco runs on the luxury end at $90). The brand comes from a wine label with a cult following in Napa, but how will that transfer over into a category that’s much more restricted in direct-to-consumer sales? We talked to the founder about the obstacles he’s facing.

🚜 Another winery is turning to spirits after its harvests were tainted by wildfires. The team at Newberg, Oregon-based Patricia Green Cellars bought a local distillery to produce its first whiskies and will begin sourcing other local crops for spirits, which they say is a way to develop other streams of sustainable revenue in a changing climate.

Read the full story on BevNET
 

🤝 TRU And Polar Tighten Partnership

Enhanced sparkling water brand Tru has completed its first manufacturing run with Polar Beverages strengthening the two beverage companies' synergy. Tru has been in the process of transitioning fully into a DSD network that includes Honickman, Heidelberg, Wright Beverages, DeCrescente Distributing, High Grade Beverage and McCraith Beverages.

🏪 Through this new approach to distribution the brand has lined up retail partnerships with Wegmans, Market Basket, Tops, Price Chopper, Stop and Shop and ShopRite as well as select stores Walmart, CVS and Target stores.

💵 Tru raised a $6.5 million Series A funding round led by existing investor BTomorrow Ventures in February 2023.

🏭 Polar first invested in the Massachusetts-based functional drink maker on a $3.6 million round in December 2021. The two beverage companies’ history stretches back even further with Polar executives acting as informal advisors to Tru for years.
 

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🍵 Harmless Harvest CEO Goes to Guayakí

As Guayakí Yerba Mate sees its sales blossom, the fast-growing brand is getting a new chief executive. Yesterday, the company named Harmless Harvest leader Ben Mand as its new CEO, replacing interim CEO Robyn Rutledge in the role.

🥥 Mand served as CEO of Harmless Harvest since 2018, in that time overseeing the brand’s expansion with Danone North America and growing the product portfolio to feature a variety of refrigerated, organic coconut-based products.

👩🏼‍💼 Rutledge had served as interim CEO of Guayakí since November, after the sudden exit of prior head Stefan Kozak. She will remain with the company as Board Executive Chair.

💵 Guayakí has been on the rise, dominating the RTD yerba mate category with 9.7% retail dollar sales growth to over $155 million in 2023. The brand now has a 3.35% share of the RTD tea category.

Read the full story on BevNET

 

🎙️ Now Streaming: CPG Week

🤑 Food and Beverage Funding Roundup

🤑 Food and Beverage Funding Roundup

On this episode of CPG Week, Nosh managing editor Monica Watrous and senior reporters Brad Avery and Lukas Southard discuss the latest twist in Kellogg’s cereal drama involving an activist letter urging the Battle Creek, Michigan-based company to make good on a previous pledge to remove artificial dyes.

💰 Lukas unpacks snack pack maker Sunnie’s strategic funding round, Brad spills details on Liquid Death’s recent raise, and Monica sheds light on a new minority investment in Serenity Kids

🤩 The team highlights additional food and beverage brands snagging elusive growth capital. (Hint: A sparkling water brand has added some star power to its cap table).

Listen now on Nosh.com and subscribe to get a fresh episode every week.

Like what you are listening to? Please don’t hesitate to rate our show and leave a review on your podcast platform of choice.

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