For those of us in Boston, this weekend's Hurricane Lee thankfully fell flat. But with tropical storm season hopefully now passed, we can see clear skies ahead for fall CPG trade show season, starting this week with Natural Products Expo East in Philadelphia. When you see the BevNET edit team roaming the convention center halls this week, eyes tuned up from too much caffeine or too few post-cheesesteak TUMS, these are a few of the things that will no doubt be pinging through our brain. 

Non-Alcoholic Brands Take Center Stage

Much like we're seeing in retail, at Expo East the emerging class of 'adult' non-alcoholic beverage brands is trying to carve out a section where it can thrive. The trade show's Adult Non-Alcoholic Beverage Pavilion, a partnership with the Adult Non-Alcoholic Beverage Association(#1026), features names that should be familiar to BevNET readers: Mingle Mocktails (1027), PARCH (1025), DRY (1014), KUL MOCKS (1020), Hella Cocktail Co. (1013), just to name a few. While momentum isn't in question, the proliferation of players doesn't immediately resolve issues in the space: namely merchandising, the subject of an ANBA-sponsored education session on Thursday. Outside of the pavilion, brands like Mockly (1017), HOP WTR (817), Gruvi (1016), TOST (1942) and Mocktail Club (4293) will make their case for relevance in the burgeoning market, but there's also some notable absentees in the form of fast-risers Athletic Brewing and Hoplark, the latter of which has turned success at Whole Foods into an eye-catching partnership with Brooklyn Brewery. 

Chill Or No Chill? 

Beverages across categories are dealing with price inflation, high ingredient costs and persistent labor issues, but what does that mean specifically for cold-chain drinks? Those refrigerated categories that helped drive natural channel sales in past years -- think premium HPP juice, cold brew and glass-bottle kombucha -- are relatively underrepresented at this year's Expo, and once-favorable trade winds (see: immunity, e-commerce) have died down. That makes us even more interested to hear from brands working exclusively in cold-chain categories like juice shots (KOR - 1648), premium wellness drinks (Remedy Organics - 2005) and premium juice (Natalie’s - 723, Sofresco - 4468) about what levers they and their retail partners are pulling in the engine room, be they pricing, innovation, a tweak in channel strategy, or otherwise. The opportunities for growth in the cold chain are still there -- but are they in the natural channel? 

Challenges Forge Creative Solutions 

The numbers don't lie: consumers have been relatively forgiving of price hikes from their favorite CPG brands, but that won't last forever. Under the specter of an uncertain economic forecast and a healthy private label market, and with manufacturers and retailers less eager for more price hikes than they were in January, brands will likely need to look towards other strategies to attract increasingly price-sensitive shoppers: think off-shelf merchandising, digital couponing and aggressive promos. We're eager to hearing the various approaches deployed by brands fighting for their place on the shelf, whether its a massive chunk -- Topo Chico (821), Guayaki (2313) -- or a toehold on which to scale – 100 Coconuts (4102), Machu Picchu (4295).

Stay Tuned to BevNET & NOSH for Expo East 2023 coverage throughout this week. 

Download the BevNET & NOSH Expo East Booth Planner here.

Whether it’s traditional staples of roasted turkey, buttered mash & pumpkin pie or more trendy options like fried turkey, cranberry bourbon sauce & jalapeno chili mash, flavor is the key element. A new holiday flavors guide from the flavor experts delivers tasty inspiration for the holiday season. Learn more

They'll be plenty of new products to check out this week at Expo East in Philadelphia, but in the meantime drink in this past week's NPG (that's New Product Gallery for those of us who type too much), which features, among other highlights:

• Aura Bora holds on to the remaining bits of summer with its Peach Honeysuckle flavor,
• BLNC launches two new THC-infused mocktails ahead of Sober October
• Levo makes its debut in the energy shot space.

Check out the full gallery on BevNET

Pressed with increasing category competition, Molson Coors-backed energy brand ZOA is leaning harder into fitness with its first powdered product, ZOA+ Pre-Workout. Similar to its pre-workout RTD version, this one is launching online and on Amazon; $49.99 per 25-serving tub in three flavors: Cherry Lime, Fruit Punch and Wild Berry. 

• ZOA+ Pre-Workout Powder is made with 200 mg of natural caffeine, 800 mg of tyrosine, 400 mg of alpha-GPC and 60 mg of gingko, alongside other functional ingredients. The line is NSF Certified for Sport.
• Initially billed as a plant-based brand, the pre-workout powders further establishes ZOA’s placement within the fitness energy segment of the energy drink category. Competing brands like Bang, Ghost, Alani Nu and C4 have also offered powder tubs alongside their ready-to-drink formats and Celsius also makes powders in a to-go stick format.
• Last week, top ZOA backer Molson Coors Beverage Company announced it has increased its investment in the brand and will continue to support it as ZOA’s exclusive distribution partner. Following the recent rebrand and reformulation of its RTD line, the brand is projecting confidence in its ability to turn around declines and is now reporting increased retail velocities.

Buffalo native and RYSE founder Nicholas Stella recently inked a partnership for the brand’s energy drink with his hometown NHL team, the Buffalo Sabres. Similar to category competitor Ghost Energy, RYSE used licensing deals with recognizable brands like Sunny D, Kool Aid and Smarties candies to penetrate the category.

• The energy drinks will now be the team’s official drink brand of choice for players at training sessions and in games.
• Currently RYSE energy is available in more than 30,000 locations including select Walmart, GNC and Circle K stores as well as all Vitamin Shoppes and QuikTrip retailers.

Not to be confused with Rise or RISE.

With agave spirit growth rates soaring, one Mexican distillate has begun to build a U.S. audience. In a recent data analysis the IWSR asks: is sotol the next mezcal?

• While often confused as an agave spirit like mezcal or tequila, the traditional Mexican distillate is actually made from the desert spoon plant or Dasylirion, a shrub commonly referred to as sotol. 
• Tequila dominates the agave-based spirits category growth but the IWSR says its success has lifted the fortunes of agave-adjacent spirits too: sotol volumes grew by +17% in 2022, and the data company forecasts CAGR growth of +6% for the category between 2022 and 2027, albeit off a smaller base.
• Brands like Nocheluna, a joint venture between Pernod Ricard, Casa Lumbre and musician Lenny Kravitz, could help bring attention to the category. 
• Confusion around sotol as an agave spirit is a double-edge sword, according to the report. While mezcal and tequila drinkers are a clear audience, the category needs to distinguish itself in different cocktails and opportunities. 
• While sotol’s growth trajectory is positive, the report noted that volumes of sotol remain tiny in comparison with tequila and mezcal – and, according to IWSR growth projections, this is unlikely to change in the foreseeable future.

Last week was a busy one for spirit investments. Here’s what you may have missed: 

• Italy’s Illva Saronno Holding has taken a majority stake in rye whiskey distillery Sagamore Spirit, adding its first American whiskey to its small portfolio. 
• The group looks to be building on the U.S. footprint of its amaretto, Disaronno, and said the acquisition was in line to support its portfolio strategy to “acquire high growth, attractive margin brands.”
• William Grant & Sons is bringing in U.K-based Silent Pool to complement its gin portfolio, which also includes Hendrick’s. The purchase echoes Brown-Forman’s move to add an ultra-premium gin to its portfolio with last year’s purchase of Gin Mare. 
• MadaLuxe Group, a luxury fashion distributor, is moving into the spirits business with a tequila that’s also made a reputation in the U.K. The group announced Thursday that it acquired a majority of Tequila Enemigo, a brand that has extended its luxury reputation across the pond by partnering with private jets in California. 
• But in the U.S., which leads in tequila sales, Enemigo certainly has some hungry new competitors in its segment, including from ex-Diageo tequila veterans and beverage innovators with major track records of success.

Read the full story on BevNET

While many of the new high-end tequila debuts are buzzing about sustainability or being additive-free, Pepe Hermosillo, founder and Master Tequilero of Casa Noble has been building a premium organic tequila since before it was cool. We chatted with Hermosillo about:

• How sustainability goes beyond organic certification, including packaging and biodiversity.
• Innovation as an anchor of the brand: the company has used single-barrel and French oak to expand from its <$50 blanco to its $1,000-plus extra añejo aged in Robert Mondavi wine barrels.
• Also, fun fact: George Clooney may get most of the credit for kicking off the celebrity tequila craze, but Casa Noble was also one of the first brands to recruit an A-lister: musician Carlos Santana became part-owner in 2011, but his stake was bought three years later when Constellation Brands acquired the company.

Read the full interview on BevNET

Amid a spate of high-profile investments and acquisitions, the hosts assessed Brooklyn Brewery’s alignment with Hoplark and what it means for the emerging segment of hop-centric beverages and also discussed the timing of Smuckers’ $5.6 billion purchase of Hostess Brands. This episode also features an expansive interview with Adam Crocini, the SVP and global head for food and beverage brands at Hilton.

Listen to the full episode of Taste Radio