| | | | | In this issue of Daily Briefing | - Diageo CEO Steps Down
- UNFI Sustains $75M Loss
- Woman Claims To Find Dead Mouse in Monster
- What Else Is New?
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| 📰 Today's Top Story | | | | Depending on your personal feelings about rhinestone trucker hats, these words may cause either celebration or a shudder: Von Dutch is back. The iconic fashion brand that Paris Hilton helped make “hot” in the early 2000s was acquired last year by holding company White Space Group (WSG), and has enjoyed an organic lift in awareness thanks to fans like Charli XCX. Now it has its sights set on CPG with an ambitious slate of releases that include hard soda, vodka and kava tonics. - Mock-up images provided with the release showcase a ready-to-drink hard soda (4.5% ABV) in a one-pint can in various colors.
- Copy on the back of the can references the brand’s history (“A Legendary Y2K Delicious”) though the front of the can notes it was “Est. 2023.”
- The drinks were created in partnership with California-based Flavor House and are set to be released through a new venture called Von Dutch F&B.
Von Dutch’s ambitions extend beyond CPG: the release notes the brand will launch a “vibrant cafe-lounge hybrid” concept in New York and Los Angeles within the next 12 months. Von Dutch’s licensing model – where manufacturing is handled by 25 regional partners across five continents – has helped keep its fashion business asset-light, allowing it to avoid some of the direct effects of President Trump’s global tariff policies. That approach may be a strong fit in beverages, where iconic pop culture brands from the past (think: Death Row Records) have been retrofitted on products for modern consumers. ⏩ For more details on Von Dutch’s plans – including a premium hydration product aimed at music festivals – read the full story on BevNET. |
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| 👉🏼 What You Need to Know 👈🏼 | | | Diageo CEO Debra Crew has stepped down after two tough years on the job, as the spirits giant struggles with slowing alcohol consumption and tariff uncertainty. - The decision for Crew’s immediate departure as CEO and as a board director was by mutual agreement, according to a statement.
- Crew steered the company through the challenging post-pandemic slump, but her tenure was marked by pressure from investors after a shock profit warning in Latin America and general sales slowdown.
- Chief Finance Officer Nik Jhangiani will assume the role of CEO on an interim basis, with a search already underway for a new leader.
💡 Insiders can read the full story on BevNET. |
| | | UNFI’s ordering systems and distribution centers have nearly returned to normal operating levels, but the company believes last month’s cybersecurity breach will result in a loss between $65 million to $75 million across revenue, adjusted EBITDA and operating costs, said CEO Sandy Douglas in a call with analysts this morning. - In a revised fiscal 2025 update, the company now expects a “modest increase” (+0.6%) in net sales and lower midpoint expectations for adjusted EBITDA and adjusted EPS while emphasizing that it does not believe the cyberattack to have a material impact on its results beyond Q4.
- The company spent approximately $5 million in direct costs on cybersecurity, legal and governance experts, and faces $20 million in “unusually higher [operating] costs” due to the manual workarounds it implemented while servers were offline
💡 Insiders can access the full story on Nosh to understand how the recovery could impact UNFI suppliers. |
| | | In what might be a rather putrid quality control slip, a woman from Grand Rapids, Mich. is suing Monster Beverage Corp. after claiming she found a dead mouse inside her energy drink can. The woman said she bought the cursed can last year and only discovered the stowaway vermin after consuming the drink and noticing the can was still unusually heavy, per the complaint. She is seeking damages for medical expenses and for the “severe emotional distress, trauma, and physical illness” she suffered. ⏪ It wouldn’t be the first time something like this has happened. Back in 2011, a Washington man made the same exact claim against Monster in a lawsuit. Monster has not yet responded to the allegation. |
| | 🆕 What Else Is New? | | It’s Hump Day! Here’s a taste of the new drops and activations from the first half of the week. ⚡ Pickleball ain’t going away and PRIME Energy is relishing a taste. The brand this week partnered with indoor pickleball franchise The Picklr as its Official Energy Drink. 🪖 Monster’s REIGN Total Body Fuel is seeking 100 “Reign Warriors” for its grassroots ambassador army. The program is designed for athletes and fitness enthusiasts “who embody the grit, drive and authenticity” of the brand. ✈️ Hemp THC-infused beverage brand Flyers is getting higher with the launch of a 10 mg line of its infused House Cocktails. 🎶 Speaking of hemp THC, cannabis brand RYTHM is launching a line of non-alc, infused ready-to-drink beverages available in Sativa and Kush varieties. 🛗 How about one more for good measure? Upstate Elevator has introduced a Ruby Red Ranch Water THC Spritz containing 10 mg of hemp THC, functional mushrooms and grapefruit. Check out the latest beverage marketing trends here. |
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Have feedback or a tip to share? Reach out to Adrianne (Assistant Managing Editor, Newsletters) at adeluca@bevnet.com.
That's all for today's Daily Briefing. We'll be back in your inbox tomorrow. |
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