Plus, a new Taste Radio episode and updates in the Lifeway Family feud.͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetFebruary 04, 2025
DAILY BRIEFING
Today's news & insights for the beverage industry.
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In this issue of Daily Briefing

  • ⚡ Investment: Tru Adds Cash
  • 🇨🇦 Canada's 30-Day Reprieve
  • 💰 New PE Fund For Bev-Alc
  • ⏩ PepsiCo To Create "More Intentional" Products
  • 🥣 Smolyanskys Bite Back
  • 🚪 Intentional Growth. An ‘Accidental’ Exit. How Nona Lim Found Its Buyer.

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📰 Today's Top Story

🪴 Cannabis Beverage Brands Explore Higher Doses

🪴 Cannabis Beverage Brands Explore Higher Doses

How high is too high? This is the question that many hemp-derived THC drink makers are exploring as the category expands deeper in retail.

For Cann, a trailblazer in the microdosed category, increasing the payload is all part of meeting consumer demand; especially, in the retail markets where THC drinks are growing fast.

“We're seeing a shift entirely in how folks consume THC,” said co-founder Jake Bullock. “In the Southeast or the Midwest, where there are no dispensaries or only medical dispensaries, we're finding there is a high-potency consumer that has no access to high-potency products.”

  • Cann is meeting consumers where they are with its latest portfolio extension, HI’ER Boy with 10mg THC and zero CBD.

Ten milligrams is not new territory in the canna-bev set, but there has been a move towards offering higher doses (more than 5mg THC) as brands flock to the expanding retail market in Southeastern states like Florida, Tennessee, North Carolina, Alabama and Texas.

For many brands, lower doses (5mg or less) sell better online, whereas the stronger options are winners in retail. That's because value-per-milligram becomes a bigger part of the decision-making process in-store.

In the dispensary channel, low-dose drinks have struggled to compete in a value-per-milligram proposition with edibles, flower, vapes or 100mg shots, but at a local liquor store or wine shop, the equation shifts, Allen said.

“There is a lot of curiosity about what a consumer is looking for in the specialty liquor distributor channel,” he said. “Are they willing to embrace this in the same way they've embraced high-dose RTD alcohol, FMBs (flavored malt beverages), triple IPAs or these 19.2 oz cans?”

Learn how canna-bev brands are diversifying doses to meet a wider swath of cannabis users.

 

👉🏼 What You Need to Know 👈🏼

⚡ Investment News: Tru Adds Runway

⚡ Investment News: Tru Adds Runway

Fresh off a packaging refresh and expansion into gut health, functional beverage brand Tru has raised a $4.6 million Series A2 round, led by Polar Beverage with existing investor Btomorrow Ventures also contributing. 

  • The round will go towards further expansion into the Northeast, according to co-founder and CEO Jack McNamara.
  • The company last raised $6.5 million as its Series A round led by BTomorrow Ventures at the beginning of 2023.

More deal news to know:

🗓️ No Days Off Rakes In “Strategic Investment.” The Miami-based hydration brand has secured an undisclosed sum from 9.58 Ventures – a firm with strong connections in the sports and entertainment worlds – intended to help expand the brand’s launch into Southeast retail accounts with its still and sparkling products. 

🥛 PlantBaby Bags B2 Partners. The plant-based nutrition company (maker of Kiki Milk) has closed a seed equity round led by B2 Partners, netting the business a post-money valuation of $20 million

 

🇨🇦 Canada Also Secures 30-Day Reprieve

Soon after we sent yesterday’s Daily Briefing, a lot of the tariff panic temporarily dissipated as Canada also secured itself a 30-day reprieve after a phone call with President Trump. 

  • But that just means brands and businesses have one more month to prepare for the possibilities of an impending trade war. 

ICYMI: All of the insight in our Tariff Tuesday preparation guide still stands.

 

💰 New PE Fund Focused On Mexican Bev-Alc

With Mexican beer and spirits driving industry growth, a new private equity fund is putting its focus on early-stage Mexican bev-alc companies. 

🤝 Aguileros Beverage Group has three bev industry founders, one of whom was also part of the founding team of Ole Cocktail Co. before it was acquired by Mark Anthony Group

  • Advisors include names like Taylor Foxman of the Industry Collective and Alan Mulvihill of top bar El Gallo Altanero.  

🔎 The fund, which promises to grant early access to brands before they hit the mainstream, is looking to raise $5M with a $10M hard cap, with $2M in commitments secured thus far.

 

⏩ PepsiCo Aims To Improve North America Performance

PepsiCo posted mixed fourth-quarter results this morning driven by subdued category performance in North America, the continued negative impacts of its Quaker recall and business disruptions “due to geopolitical tensions in certain international markets.” 

  • Net revenue was $27.8 billion, compared to $27.9 billion in Q3 2023
  • Net income was $1.52 billion, versus $1.3 billion in the prior year period
  • Organic revenue for PepsiCo’s Frito-Lay North America business dropped 2% as the “salty and savory snacks categories underperformed broader packaged food.” 

💬 “We’re very confident our North America business will accelerate [in 2025]. We see opportunities, especially away from home, with billions of occasions on a daily basis,” CEO Ramon Laguarta told shareholders during today’s call. “We need to capture [consumers] with much more intentional products.” 

Stayed tuned for a full earnings recap later today. 

 

🥣 Unhappy Smolyanskys Bite Back Against Family CEO

Edward and Ludmila Smolyansky, the brother and mother of Lifeway Foods chief executive Julie Smolyansky, yesterday requested the company’s board of directors force Julie to withdraw her most recent lawsuit, filed on January 23, against Edward, the company's largest individual shareholder.

  • The mother and son, who exercise voting control with approximately 28% of the outstanding shares of Lifeway’s common stock, stated a $2 million retention bonus awarded in December was “yet another desperate leverage tactic to enable Julie Smolyansky to continue to fund her war against the Founding Shareholders.”
  • The pair also claimed that its activist campaign launched in 2022 has helped increase the value of Lifeway’s share price, “yet Julie and her Board seem determined to obstruct the ability to monetize these assets and prohibit making significant charitable contributions.”

Go Deeper: Danone Slams Lifeway, CEO Smolyansky For ‘Value-Destroying’ Share Move

 

🎙️ Now Streaming: Taste Radio

🚪 Intentional Growth. An ‘Accidental’ Exit. How Nona Lim Found Its Buyer.

🚪 Intentional Growth. An ‘Accidental’ Exit. How Nona Lim Found Its Buyer.

Nona Lim, the founder of Nona Lim Foods, a trailblazing brand of convenient Asian-inspired meals, reflects on the journey of building and eventually selling her company, the importance of generating retail velocity without heavy marketing spend and why having a well-organized data room is essential for raising funds or preparing for an exit.

Listen to the episode here. It is also available on Spotify and Apple Podcasts

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