Just when CBD products seem to be inching towards some sort of regulation that can finally open up the market, one of the category's biggest backers thus far is pulling out. 

As we've reported over the past few years, Southern Glazer's has been eagerly recruiting partners for its growing portfolio of hemp-infused beverages. Back in 2021, as it picked up contracts with brands like Mad Tasty, Kill Cliff and DEFY, and later with major Canadian producers Tilray and Canopy Growth, the distributor's eagerness to step into the uncertain market seemed to represent a vote of confidence for wary retailers, investors and mainstream consumers that still may be wary of the category's long term potential.

But in a press release last week, Canadian brand CENTR, distributed in California by Southern Glazer's since 2021, announced that the distributor had unceremoniously pulled out of the CBD category in the U.S. altogether. 

With no official confirmation coming from Southern Glazer's, which hasn't returned our calls, we can only speculate for the moment as to the distributor's motivations for turning away from CBD, if indeed that's what they've done. 

For a company stocked with sales reps making a living moving alcohol, spending time developing a new category with uneven traction across retail customers may not have been a great fit. Partnering with brands like B GREAT and Charlotte's Web introduced non-beverage formats like gummies and tinctures into the mix as well. Internal changes in management roles may have also come into play. 

Meanwhile, here's what we've been hearing: Speaking to BevNET yesterday, John Timar, former CEO of Kill Cliff, an early pioneer in mass-market CBD drinks that teamed with Southern Glazer's for distribution in 2021, noted that the brand had "mutually exited" its agreement as part of a strategy pivot from retail back towards e-commerce. 

He's no longer involved in the day-to-day business, but he noted that Southern Glazer's supposed exit comes at a time in which optimism is running high for a legislative solution to the persistent question around CBD. 

A bipartisan group in Congress is currently conducting requests for information (RFIs) for hemp-derived CBD products, signaling a potential legislative path around inaction by the Food and Drug Administration (FDA). ONE HEMP, a coalition of CBD brands (including Charlotte's Web) "dedicated to addressing the FDA’s concerns with a data and science-backed approach," said it made "meaningful progress" during a recent presentation of findings to Congress. 

In other words: change may be coming, but not soon enough. 

"The lack of having a regulatory framework to open it up for retailers and normalize it for consumers and allow for all the other things you need has definitely stymied the potential and growth for the industry," said Timar. "I wouldn't be surprised if there were organizations who are just fatigued at this point, and are either mitigating the risk in the near-term by not putting more capital behind it or just pulling out because their patience is over."

We'll continue to track this story as it develops.

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During the company's Q3 earnings call in August, Diageo CEO Debra Crew said the spirits giant would be making more plays in the premium RTD segment, and today's announcement of the new Cocktail Collection makes good on that promise.  

🥃 Dubbed The Cocktail Collection, the line will feature three new pre-mixed cocktails launching this fall including: the Ketel One Vodka Espresso Martini, Ketel One Vodka Cosmopolitan and Tanqueray Gin Negroni. 

🛒 They will join Bulleit Manhattan and Bulleit Old Fashioned, which are already on the market. 

📦 The Cocktail Collection will be available nationwide in four-serving 350ml (SRP $13.99) and eight-serving 750ml (SRP $25.99) glass bottles, with an average ABV of 20%. 

📊 Diageo has realigned its strategy in response to surging demand for ready-to-drink products in recent years. But net sales declined 44% in Q3, influenced in part by Loyal 9’s underperformance in certain U.S. states.

Go Deeper: Is Ready-To-Serve Crashing the Premium Party

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Liquid Death is searching for a new Chief Sales Officer after Sean Lynch announced he is moving on from the role on LinkedIn on Monday. 

After over 3 years with the canned water brand, a period which he described as "the most rewarding and challenging years of my career without a doubt," Lynch is leaving his job but staying on as an advisor with Liquid Death while "gearing up for my next run."

🏴‍☠️ In a separate post, Liquid Death founder and CEO Mike Cessario thanked Lynch for his "insane contribution to Liquid Death" and for playing "a pivotal role in building this brand to where it is today." 

"He took us from just a handful of retail doors to now over 100,000," wrote Cessario. "Sean also helped build our world class sales team who have been instrumental in making Liquid Death one of the fastest growing brands of all time. And even beyond business, Sean is one of the best humans I know."

Sports nutrition brand Optimum Nutrition is investing in its pre- and post-exercise drink Amin.O Energy by revamping the brand’s packaging, while also putting capital spend into marketing and distribution campaigns.

🏋️ The updated packaging attempts to streamline the beverage’s value propositions of increased hydration and replenishment of branched amino-acids (BCAAs) while targeting a younger demographic that is driving demand in fitness-oriented energy drinks.

🏪 Optimum has spent the first half of the year building on the drink’s success in specialty stores like Vitamin Shoppe and getting more visibility in c-stores and conventional grocery stores. It’s grown to over 25,000 retail doors, with about 7,000 added this year.

👋 While hesitant to be compared with fast-growing brands like Ghost and Celsius, Amin.O is attempting to differentiate itself in the crowded energy category by playing up its modest caffeine load and recovery benefits.

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Need we remind you it has been a tumultuous year for Bang Energy’s former CEO Jack Owoc? Still, after being ousted from the company in March and watching it end up in the hands of sworn rival Monster, at least he’ll have a new 12,700-square-foot oceanfront mansion in Florida, as reported in The Real Deal.

🏘️ The purchase builds on Owoc’s various real estate holdings and listings in Broward County, including a $7.7 million house bought in 2019 as well as the sale of an industrial development in the area for $59.8 million.

🫰 Bang filed for Chapter 11 proceedings last year and was later acquired by longtime rival Monster Energy in June; yet was still hit with another $43 million penalty awarded to Monster (on top of the $293 million already owed) thanks to Owoc’s “disrespect for the judicial process.”

🥵 Owoc was hit with a further $63,517 penalty last week for his “disregard” for court orders. 

Hibiscus and popcorn might not seem like a conventional match but sparkling beverage maker Ruby is ready to convince consumers it was the pairing they didn’t know they needed. The drink company has partnered with BjornQuorn on the snack, which features nutritional yeast and hibiscus powder to create a tangy, salty flavor.

🛍️ The 3 oz. popcorn bags are currently sold DTC on Ruby’s website in cases of six for $36 and will be released in retail exclusively in Northeastern Whole Foods Markets beginning in November.

🏝️ The partnership is using a whimsical story about a “popcorn adventurer and a Rubynaut” stranded on an island in its marketing campaign and marks Ruby’s first foray into food.