While brands are still working to reverse volume declines as they lap last year’s record inflationary period, non-alcoholic beverage sales in retail remained “healthy” but decelerated in the two-week period ending August 12, growing 6.7%, according to Goldman Sachs Equity Research’s latest analysis of NielsenIQ data.

The data set also offers a snapshot into the status of several fast-moving categories and brands. (Note that with emerging brands, less comprehensive channel coverage can sometimes leave an incomplete picture of all sales, but more than triple-digit momentum also often indicates new entry into tracked channels).

The New Cola Wars

• In the red-hot gut health soda set, Poppi has grown to over 3x Olipop’s size in terms of annual dollar sales. 
• The CAVU-backed brand reported sales of around $92.7 million, compared to Olipop’s $28.6 million. However, if their momentum continues on their current trajectories, Olipop could tighten the gap sooner rather than later – its sales were up 765.6% in the two-week period, compared to Poppi’s 198.5% dollar growth.

Believe In Blue

• Within the energy category (+12.1% dollar sales in the two-weeks) PepsiCo continues to strengthen its position, increasing sales of its owned brand portfolio by 7.2% while its exclusive distribution partner Celsius maintains its triple-digit growth at 164.5%. 
• Combined, they account for nearly $2.3 billion in annual dollar sales, still about one-third the size of Red Bull but miles ahead of the next largest players like 5-Hour Energy ($771.2 million, down -3.5%) and C4 ($442.7 million, up 72.4%).

PRIME Example

• Just how strong is Logan Paul’s beverage game? PRIME Hydration reported dollar sales up 600.2% in the two-weeks to $493.2 million, placing it as the third-largest brand in the sports drink set, ahead of Electrolit’s $348.5 million at 29.3% growth. 
• Deeper in the data set, Prime Energy was reported to be at $99.9 million in retail sales since its January launch this year.

Coffee Climbers 

• Danone’s STOK (+8.6% to $474.3 million) and Black Rifle Coffee Company (+19.2% to $138.8 million) have remained some of the strongest growth stories in the ready-to-drink coffee set. 
• However, functional player Kitu Life – maker of Super Coffee – appears to have faced some sharp year-over-year declines as dollar sales dropped -43.5% to around $39.1 million. Volume sales fell -46% against an average price increase of 4.6% in the two-week period.

Get the full category-by-category breakdown on BevNET

To go deeper into foodservice and test new products, publicly traded Planting Hope has acquired the assets of Argo Tea from Golden Fleece Beverage. 

• As part of the non-dilutive, non-cash transaction, Planting Hope has assumed a $270,000 four-year note that is owed to Argo Tea creditors. 
• “An entity related to Argo tea” will provide a loan up to one million dollars. Subject to meeting certain terms of the agreement, the lenders will, in turn, receive a percentage of the net sales from the Argo Tea business (4% in 2023, 5% in 2024 and 3% for up to 30 years)

Assets included in the deal are:

• Master contracts with Foodservice partners including Sodexo and Aramark. 
• The licenses for eight Argo Tea cafes at universities including UMass Amherst, Liberty University, Fordham University, Florida State University, and Rensselaer Polytechnic Institute (RPI) where Planting Hope will assist with menu design, operational guidance, marketing materials and product support.
• Roughly $600,000 in finished goods inventory
• A food product with “significant café industry applications” that will be rebranded under the company’s Hope and Sesame brand
• Planting Hope has also hired Candace Pappas, former president of Golden Fleece Beverages and a 16-year veteran of Argo Tea, as Planting Hope's VP of foodservice business development. 

For brief recap: Argo’s strength was primarily in cafes, but at one point its RTD business was expanding rapidly. However, in the years following founder Arsen Avakian’s exit in 2018, Argo has limited its presence to the aforementioned on-campus locations and a select group of retailers, including Walgreens, for its bottles.

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This year Brown-Forman and Coca-Cola brought two of the biggest names in beverage together for a Jack & Coke RTD. What’s next for the popular canned barcall?

• We chatted with Brown-Forman’s RTD Director about why the company has leaned in on the Jack Daniels brand equity and partnerships with beer and soft drink companies, over building or acquiring new RTD brands.
• After debuting in Mexico last fall, the RTD rolled out in the U.S. in March, now innovation is focused on quick packaging wins. 
• The opportunity to “talk to new consumers” was the driver for a Coca-Cola partnership.
• But will the RTD bring new drinkers into the Jack Daniel’s family of brands?

Read the full story on BevNET

A spirits distribution veteran is taking the reins at Lobos 1707 Tequila as the new CEO. 

• Dia Simms, co-founder of the tequila and mezcal brand, will transition from CEO to executive chairwoman of the board. No reason was given for the change, but Simms said that her new focus will be on the “accelerated expansion” of the brand. 
• Simms helped build and lead Lobos 1707 since its inception in 2020, with backing from basketball icon LeBron James. 
• Carlos Vigil, former COO, was announced as CEO. Vigil has over a decade of executive leadership at Southern Glazers, where he led the company's commercial and digital transformation across sales, service and e-commerce.
• Prior to Lobos 1707, Simms worked alongside Sean “Diddy” Combs at Combs Enterprises and led the company as president. She also co-founded Pronghorn, an investment firm focused on cultivating the next generation of Black entrepreneurs and executives in the spirits.

Watch founders and CEOs introduce their brands and provide a recap of recent news and updates. This week's special co-host is Alex Sonageri, a consumer investor with Blackstone Growth, who shared his thoughts, questions and feedback with the participants.

Watch the full episode on BevNET