Need working capital quickly? Try a PIPE transaction (standing for a Private Investment in Public Equity). Ginger beer maker Reed’s announced this morning it had closed $4.1 million in PIPE issuance led by Hong Kong private investment group D&D Source of Life Holding (Reed’s existing investor Union Square Park Capital Management and Chairman of the Board John Bello also participated). The company also secured $1.5 million in convertible notes bringing the capital infusion to roughly $5.6 million. The strategic investment and new partnership with D&D will give Reed’s some working capital and financial cushion as new investment opportunities have become scarce. The PIPE issuance offers new shares to institutional and private investors at a lower cost than market price. The new shares were offered at a purchase price of $2.58 per share. As of the time of publication, shares for Reed’s were up 4.92% on the day trading at about $3.20 per share.

Reed’s has been making moves to get back to profitability recently after watching supply chain issues and inflationary pressure impact the company’s margins. In its FY2022 Q4 earnings call in March, CEO Norman Snyder said the brand is approaching break-even cash flow and is expecting double-digit growth in the second half of this year.

Stay tuned for coverage of tomorrow’s Q1 earnings call as see if Reed’s gives any further information about its new investment partnership overseas.

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Grocery industry veteran Bob Mariano (the former head of the Roundy’s and Mariano’s chains) opened his latest venture in the Chicagoland area, Dom’s Kitchen and Market, two years ago and has ambitions of having 15 stores by the end of next year. Backed with over $50 million in investment, the concept builds on the idea that the specialty/natural channel is evolving into an experiential type of food shopping. Dom’s leadership believes the natural grocery store of the future will be smaller, offer full-service dining options and lean into digital connectivity to provide shoppers a true omnichannel experience.

Allison and Stephen Ellsworth, the co-founders of Poppi, spoke about the reasons behind better-for-you soda brand’s explosive growth and how the company is maintaining its torrid pace. They also discussed their transition into new roles, Poppi’s remarkable trial conversion and repeat purchase rates, Amazon as a key part of the company’s marketing strategy and why video is king on social media. Listen to the full episode. 

Go Deeper: Poppi's Post-Raise Growth Plans 

Apparently for today's generation, the wait for a Keurig-style coffee pod machine to do its thing is just too damn long. At least, that's the thinking behind the decision to move Dunkin' (via CPG partner J.M. Smucker) into the suddenly-hot-again cold brew concentrate space, per Food Dive's interview with coffee GM Joe Stanziano. Unlike small-format, next-gen "super-concentrates" from Jot, Pop & Bottle and Nu Range, Dunkin' is rolling out in 31 ounce bottles this July in unsweetened black and pumpkin spice flavors.

Go Deeper: Cold Brew’s Evolving Role in the Iced Coffee Craze.

It's always nice to see brothers getting along, and even better when it means good coffee. Matt Tilley, Head of Coffee Operations at Verve Coffee Roasters, and Jacob Tilley, founding member and guitarist for the band Young the Giant, are doing just that with "Same Folk Blend," a new medium roast blend tarting this month on Verve.com, YTG.com and for concert-goers attending Young the Giant’s summer tour. All proceeds from the product sales of this coffee will go towards supporting music education at Venado Middle School.

Go Deeper: Influencer-Fronted Coffee Brands Seek to Make Specialty Coffee More Accessible 

Almost a year after creating an unregulated hemp-derived THC food and beverage market, Minnesota has now become the 23rd state to legalize adult-use marjuana. That means the state’s craft brewers (many of whom have been slinging hemp-derived THC beverages since last summer) will be subject to oversight from the state’s Office of Cannabis Management, a newly-created state agency that will also monitor recreational and medical cannabis products. Legislators had been grappling with how to handle the regulation and sale of hemp-derived THC products within a legal cannabis space, since hemp-derived products have been available everywhere from MN c-stores to farmers markets, and, well, it seems they decided to grapple no more. Instead they’ve pushed those responsibilities onto the new agency which will write the new rulebook for commercial cannabis activities. 

Based on 2020 census data, the leading trade spirit organizations have updated their advertising guidelines. With 73.8% of the U.S. population now 21 years old or older, DISCUS, the American Craft Spirit Association and the American Distilled Spirits Alliance recommend that spirits ads only be placed in media outlets where 73.8% of the audience can be expected to be over 21. Still, it's unlikely companies will need to revamp their marketing strategies: the previous demographic standard was 71.6%, which was based on 2010 Census data. The guidelines come as large spirit companies are clearly aiming to appeal to younger drinking demographics with campaigns like Snapchat lens offerings and as regulators and health experts express concerns over big soda's move into beverage alcohol. 

While the Tilley bros do their coffee thing, another pair of CPG players (both Chicago-based) are set for their own special collaboration. Functional sparkling water brand heywell and c-store chain Foxtrot are teaming up for an exclusive LTO flavor, Cherry Limeade. The new release from the woman-owned, wellness-focused beverage brand brings the nostalgia (not personally, but maybe for some) and sensory experience of drinking an ice-cold soda on a hot day with the functional benefits of ashwagandha, ginseng, schisandra, amla berry, lemon balm and L-theanine in a caffeinated energy drink. 

While state-by-state cannabis legalization has opened the market for all sorts of infused beverages and edibles, strict regulations have still limited what manufacturers can sell: namely, no mixing with alcohol. But that hasn’t stopped winemakers and connoisseurs from developing a taste for “Weed Wine,” as the New York Times called the trend this month. In California, wineries are now allowed to produce wines containing both alcohol and cannabis, so long as they don’t sell them, opening the doors for innovation and an “in the know” scene. Although there are many cannabis-infused wine brands on the market – such as CannaVines, House of Saka and more – these products are all dealcoholized, which the Times argued makes them wines “in name only” in the eyes of many Weed Wine aficionados. We'll gladly investigate further. 

Join Sarah Foley of Swat Equity and Ryan Williams of FABID as we discuss finding the right valuation including the risks of going too high or low and how to get to the right number. Register to ask your own questions LIVE with the experts. Register.

As founders fight to find funding in this current investment environment, a panel of early stage startup beverage entrepreneurs who’ve closed or are raising financing rounds over the past year will speak at BevNET Live Summer 2023 in New York to discuss their strategies and advice for seeking capital amidst the market madness. Read the story.