• 📝 Did Diageo Deceived 21Seeds?
• 📉 The Case Against Monster
• 💸 Tilray Grows Bev-Alc 2.3%
• 🆕 What Else Is New?

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There’s a drink for every need-state these days.

From Gillian Anderson’s libido-boosting G Spot to drinkable sunscreen, the functional drink set is catering to every ailment and value proposition.

So, it might not be surprising that Erha, one of the newest category entrants, is claiming it can help allergy sufferers with seasonal histamine reactions. 

• The brand launched this week with three, non-carbonated varieties – Relax, Digestion and Allergy Support – all offered in 8.4 oz. cans.
• Erha is currently sold as a subscription (not prescription) product DTC as well as in Erewhon and at the over 450 Sprouts Farmers Market locations nationwide for $4.99 each.

The “Herbal Rx” Allergy Support variety claims to be an “industry-first wellness RTD,” using quercetin and nettle to suppress histamine responses in the body and reduce inflammation, said a brand spokesperson.

For over 20 years, Erha’s founder Brooke Blashill has worked as a marketing executive for various beauty, wellness and luxury goods companies like LVMH, Gucci and Unilever. Bashill suffered from severe environmental allergies for years and decided to try to develop a wellness solution to address her struggles.

Yet, when consumers are faced with a wall of functional drinks at the grocery cold case, do these niche options make an impact?

An argument could be made for taking a nuanced approach to an established category. Whether it's a snake venom-infused energy drink like Fang or a KetoneAid’s zag into multiple sets including adult non-alc and recovery, bringing a differentiated ingredient to a surging and broad-reaching category is one way to carve out a new corner.

Other segments of functional beverage have seen similar approaches. Relaxation drinks using CBD, kava and even low-dose hemp-derived THC cropped up along with adaptogenic products using ingredients like L-theanine, ashwagandha and magnesium. Cognition enhancement has also experienced a bump with ketones and functional mushrooms claiming to offer new ways to support brain function.

Even a brand like GOOD IDEA, founded in Sweden in 2016, is seeing a lift as consumers are thinking more about aiding metabolic function. The brand’s “scientifically backed” research tailored to lower post-meal blood sugar spikes is an obvious complement to GLP-1 drugs.

What remains to be seen is whether the market is big enough for a health supplement option like Erha that addresses an individual and highly seasonal need. 

What do you think: is this innovation a disruptor or set to drop off? Send thoughts to lsouthard@bevnet.com.

Go Deeper: Ketone RTDs Seek Place Within Emerging Functional Set

A spicy new lawsuit against Diageo was filed last week. 

🧚 A three-year journey of startup to exit may seem like a fairytale, but a lawsuit on behalf of shareholders of flavored tequila 21Seeds now alleges Diageo’s 2022 acquisition was a product of “fraud from the outset.”

🌶️ The complaint argues Diageo concealed plans about Casamigos Jalapeño, a direct competitor of 21Seeds’ leading product while putting 21Seeds “in mothballs, where the company remains to this day,” undermining its ability to hit the sales targets tied to earn-out milestones.

💡 With earn-out deals common practice, we talked to some legal minds about how companies can negotiate the best deals and possibly avoid getting burned. 

Read the story on BevNET for all of the insights.

Is Monster Energy not as strong an investment as it once seemed? Spruce Point Management sure thinks so as the firm dropped a report this week arguing the case to short the energy drink leader’s stock.

🪨 The firm says it believes Monster is “under more pressure than most realize,” citing increased competition in the energy space from brands like Celsius and Ghost, supply chain woes and alleged poor financial planning.

👹 Monster shot back this morning, claiming the report is filled with “false and misleading characterizations … from non-credible sources.” 

🤯 You may remember Spruce Point as the firm behind the 2021 short report on Oatly, which at the time had recently IPO’d. The report against Monster, however, goes against mainstream sentiment as analysts have traditionally been bullish on the company.

Catch up on Spruce Point’s past predictions.

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Canadian cannabis giant Tilray Brands recorded a 1% YoY net revenue decline across all its business ventures in Q3, but the latest financials are simply growing pains as the company continues to streamline and consolidate its business, per an earnings call today.

💸 Net revenue $185.8 million for the quarter (ending February 28), increasing to $193 on a constant currency basis; Gross profit grew 5% year-over-year to $52 million.

↗️ Tilray’s bev-alc division – nearly 30% of the company’s total business – posted slightly stronger results, recording a nearly 2.3% increase in net revenue, from $54.7 million in Q3 2024, to $55.9 million in Q3 2025. 

📈 Tilray’s previously announced 2025 strategic initiative Project 420 has increased its cost savings target for the initiation to $33 million, with $20.6 million completed so far. 

⏩ The next stage of Project 420 will see the consolidation of the beverage division’s network of more than 700 distributors, which includes a mix of Molson Coors, Anheuser-Busch InBev (A-B) and independent distributors. 

Insiders can read the full story for all of the details on the company’s intoxicating hemp business.

It’s Hump Day! Here’s a taste of the new drops and activations from the first half of the week.

🍸 Perrier is staying in vogue with NA trends, launching the Maison Perier Chic line of premium flavored sparkling waters modeled after classic cocktails like Daiqui’red, Peach Spritzer, Piña Fizz and Citrus Fizz.

⛰️ Legally, they can’t “Do the Dew,” but Poppi has a new caffeinated citrus flavor, Alpine Blast, bearing a “vibrant green hue.”

🥥 Liquid Death is wishing consumers sweet dreams (no nightmares here) with its new “Coconut Scream,” a collaboration mixing its mountain water with MaryRuth’s Liquid Nighttime Coconut Dream sleep supplement.

🔥Seattle’s Best Coffee is joining forces with entertainer Joel McHale for a new Campfire S’mores Flavored Coffee.

🕜 Rum-based liqueur maker Malibu is also forging a celeb partnership with award-winning actor Brian Cox, launching a campaign to highlight the pressure of overtime work across the world.

Catch up on the latest new product news on BevNET.