Also Jack Owoc might be heading to court...again͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetJanuary 22, 2024
DAILY BRIEFING
Today's news & insights for the beverage industry.

In this issue of Daily Briefing

  • 👋 Meet Minisocial: The On-Demand UGC Platform Pairing CPG Brands With Micro Influencers
  • 🐄 Is Fairlife Making Consumers Sick?

📰 Today's Top Story

🤔 ‘Cannabis’ or ‘Weed’? Just Put Some Respect On the Name

🤔 ‘Cannabis’ or ‘Weed’? Just Put Some Respect On the Name

When I started working at BevNET as a reporter in 2016 (I was 30), nobody used the word “cannabis.” Back in those innocent days, before we all became fixated on the source or the configuration of molecules of our precious THC, it was still just “weed.” 

But “cannabis” sounds a lot more respectable, and, seemingly against all odds, that’s exactly what it has become, specifically in the context of CPG. 

For the most part, what I’ve witnessed over my time at the company (I was previously a music journalist) has been hugely encouraging. The call to move beyond typical ‘stoner’ stereotypes -- a major topic of discussion during our first Cannabis Forum event in 2018 -- has been emphatically answered by thoughtful, authentic innovation in low-dose drinks from brands like Klaus, Cann, Keef and countless others. What we’re witnessing now in states like Minnesota is a real-time stress test of how this category, with regulatory oversight, can compete directly with other drinks outside of the dispensary channel, and the response so far has been encouraging.

At the same time, high-dose products like Uncle Arnie’s aimed squarely at experienced cannabis users (I am one) have emerged as top performers in markets like California and Washington, suggesting plenty of runway to evolve with each region’s unique needs. 

Now as BevNET’s managing editor, my interest in the space goes beyond personal affinity; what happens in cannabis will have an impact on other CPG categories as well, not to mention the economy at large. Just look at how infused beverages have inserted themselves into the conversation around Dry January (try ‘High January’) and the soaring demand for non-alcoholic alternatives. The number of independent craft brewers who have recognized a growth opportunity in THC tells a story in itself, while the expanding field of cannabinoid research is leading to  a better understanding of their interplay. These ingredients beckon years worth of innovation. 

And if you think cannabis is still a dangerous third-rail for a major strategic like Anheuser Busch – or a hit-making operation like Congo Brands – just wait until the U.S. Drug Enforcement Administration (DEA) accepts the Health and Human Services Department recommendation to reclassify marijuana from a Schedule 1 to a Schedule 3 controlled substance, a move that would put it on equal footing to many over-the-counter medications. 

But amidst the potential economic bonanza, the cultural significance of that shift shouldn’t be underplayed. Thousands of Americans have been and remain incarcerated, or are carrying the burden of a criminal record, on marijuana-related charges, and an industry that doesn’t reckon with the past failures of our treatment of this plant and its stewards isn’t one that will last. 

Basically what I meant to say was it’s a party now, but it wasn’t always. As we travel that road to respectability, from ‘weed’ to ‘cannabis,’ let’s make sure we remember what it took to get here. 

Martín Caballero (mcaballero@bevnet.com) is the managing editor for BevNET.

 

King Kongin expands its distribution with the latest release Enter Queen Kongin

Sponsored message from King Kongin
King Kongin expands its distribution with the latest release Enter Queen Kongin

''A new drink was also much needed for the queens. So, we decided to launch its other half, Queen Kongin. Expect it soon.'' King Kongin is available on Amazon in different flavors. It is also available for the distributors. Learn more

👉🏼 What You Need to Know 👈🏼

🧑‍⚖️ “Garbage” Seller Owoc Faces New Legal Fight

🧑‍⚖️ “Garbage” Seller Owoc Faces New Legal Fight

The courtroom troubles for Bang’s ever-controversial former CEO and founder Jack Owoc are far from over, as last week the Chapter 11 liquidating trustee for the company named him in a lawsuit seeking at least $80 million in clawbacks and real estate.

👎 According to Law360, the complaint filed by VPX Liquidating Trust accuses Owoc of creating a “self-dealing regime” during his tenure as CEO, leading to the company’s ultimate demise.

🚚 The complaint, which claims Owoc sold “garbage to the public” for decades, alleges the Bang founder acted improperly during a number of major incidents that ultimately led to the business’ bankruptcy, including the dissolution of its PepsiCo distribution deal, the trademark infringement case of beverage maker Orange Bang, and the false marketing of “Super Creatine.”

💸 As well, the lawsuit accuses Owoc of “funneling hundreds of millions of dollars out of the company” for his personal expense.

🚪 Owoc was removed from VPX in March 2023 amid the company’s bankruptcy process. Bang was later sold to Monster Energy during a court-supervised liquidation.

 

👋 Meet Minisocial: The On-Demand UGC Platform Pairing CPG Brands With Micro Influencers

👋 Meet Minisocial: The On-Demand UGC Platform Pairing CPG Brands With Micro Influencers

Over the past few years, CPG brands have accelerated their use of user-generated content as social media and ecommerce continue to converge in efforts to raise brand awareness and grow their audiences. Minisocial is a New York City-based platform seeking to seamlessly pair brands with like-minded micro influencers – creators with under 100,000 followers – to produce on-demand UGC that increases a brand’s ROI. 

Founded in 2018 by Kirsten Baumberger, minisocial’s platform uses a two-pronged approach that generates the same reach as traditional influencer activations while creating a library full of licensed photo and/or video assets. To date, she estimates minisocial has worked with 1,000 different CPG brands – including names like Olipop and Sunwink spanning the food and beverage, health and wellness and lifestyle industries. 

📱 Why micro influencers? According to Baumberger, there are two primary reasons: it’s more cost-effective for startups and emerging brands and micro influencers’ audiences are often more engaged with the content. 

💭 “[Micro influencers’] content feels more authentic. It feels like less of an ad when you’re scrolling through your feed,” she explained. 

Read the full story on Nosh

 

🐄 Is Fairlife Making Consumers Sick?

Social media users are claiming en masse that they’ve become ill from recently purchased Fairlife brand lactose-free milk products, including allegations that the milks smell like “poop.”

📰 The New York Post reported the claims last week, citing 103 complaints since December from users of food-born illness tracking website iwaspoisoned.com.

💻 Consumers have also taken to Reddit, TikTok and Facebook to allege the drinks – ranging across product lines from whole and skim milks to protein shakes – caused diarrhea, vomiting and stomach pain.

🚫 Thus far there has been no recall issued on any Fairlife products. In a statement to The Post, the Coca-Cola-owned brand denied there are any food safety issues with its products.

🧑‍⚖️ Fairlife has come under fire in recent years over allegations of animal abuse at its dairy farms, ultimately paying out $21 million in a legal settlement in 2019. Last year, animal rights group Animal Recovery Mission (ARM) released a report alleging the company was continuing to source milk from farms that abused its livestock.

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