Non-alcoholic beverage volumes rebounded at the beginning of February alongside “healthy” dollar sales growth, according to the latest NielsenIQ data analysis by Goldman Sachs Equity Research.

📈 Overall dollar sales grew 3.2% in the two-week period ending February 10, according to the report, up from 1.9% in the four-weeks. Volumes rose by +0.4%, versus a -0.8% decline in the four-weeks.

🥂 CSDs (+4%), Sparkling Water (+4.4%) and Coconut Water (+7.1%) were among the best growing categories by dollar sales.

⚡ Although slowing slightly from double-digit 52-week growth (+10.1%), energy drink sales growth stayed elevated at +6.1% in the two-week period and +4.3% in the four-weeks. 

Sales of category leader Monster (excluding Bang) were up 1.5% in the two-weeks to over $7.3 billion, a turnaround from a -0.3% decline in the four-week period. Meanwhile, second place competitor Red Bull posted +5.1% sales growth in the two-weeks, up from 3.1% in the four-weeks.

Celsius’s growth has slowed from the consistent triple-digit performance it saw last year, but the energy drink retained its position as the fastest growing brand in the category, up 8.3% to over $1.7 billion, with volume growth of 84.9% and a -3.6% cut in pricing. Its distribution partner, PepsiCo, however, saw its owned portfolio of brands (Rockstar and MTN Dew) fall -16.8%, worsening from -15.4% in the four-weeks, with a volume drop of -18.1%.

Rising brands like Nutrabolt/C4 (+62.6%), Alani Nu (+46.5%) and Ghost (+31%) also saw strong two-week growth, however PRIME (-24%) and A Shoc (-30.9%) reported declines.

Read the full recap on BevNET.

Marking its first steps outside of the hemp space, functional products maker CBD Living unveiled last month Melting Forest, a new brand of energy and relaxation beverages made with a blend of adaptogenic mushrooms, which is now rolling out to retailers across the West Coast and Colorado.

🪵 It may be way too soon to declare 2024 the year of the mushroom, but there’s no doubt activity in the fungi beverage set is picking up. Earlier this month Odyssey closed a $6 million funding round as it expands its mushroom energy drink offerings and in January coffee alternative brand MUD\WTR opened up its first brick-and-mortar cafe.

🌲 As consumer awareness for functional mushrooms rises, Melting Forest is hopping in on the trend, targeting consumers across channels from natural grocery to smoke shops. 

🧓 The brand will look to steadily expand from West to East over the next two years, and although Gen Z and Millennials are its main targets the company said it sees opportunity to resonate with older demographics as well.

Get the full scoop on BevNET.

Coca-Cola reveled in the continued growth of its flavored sparkling beverage portfolio during its presentation this morning at the annual Consumer Analyst Group of New York (CAGNY) event -- held in Boca Raton, Florida, for those keeping track.

📈 CEO James Quincey positioned Coca-Cola as being “still at the beginning” of its potential global reach, pointing towards “huge opportunities” in emerging markets where non-commercial beverages still dominate.

🫧 Coke’s flavored sparkling portfolio continues to defy expectations both on the sugar and zero-sugar divide: Trademark Coke (+4-5% CAGR through 2027) and ‘Sprite, Fanta & Friends’ (also set to grow 4-5%) are both on a positive trajectory, with zero-sugar value share increasing +14.1 points from 2017-2023 within the latter segment.

🚚 President and CEO John Murphy sounded the expected positive notes on top-line performance, citing volume growth in 16 of the last 20 quarters, expanding margins and higher EPS growth. ‘The proof is in the P&L,’ he mused.

🤔 As for what they didn’t say? Not much on Costa Coffee’s current or future plans, nor for the company’s “measured approach” to beverage alcohol, though Quincey noted that Coke’s brand collective in the category has generated over $1 billion in dollar sales.

💰 After spending big on BodyArmor and Costa Coffee, what will it take for Coke to dip back into M&A? "Higher probability for scalable impact," said Murphy, meaning an opportunity to go beyond "meeting the needs of one or two markets."

Brands undergo makeovers for many reasons, in the case of Plantation Rum’s recent switch to Planetary Rum, the company shifted away from a name linked to a painful past. But how did the rename land with branding experts?

🌾 After acknowledging the “hurtful connotation the word ‘plantation’ can evoke” the brand embarked on a name change in 2020, and last month unveiled its new name that pays homage to the sugar cane plant and the sun’s rays, essential ingredients for rum production.

⏪ Renaming is one way companies can confront their history, and the branding experts we interviewed agree there can be more efforts beyond or instead of a rename to share what a company represents with consumers. Emerging owners in rum are reframing the category through the lens of their own cultural heritage or as a sustainable spirit, and those brands may attract shoppers who are looking to make purchases that align with their values.

🪐 Planteray underwent a laborious (and we suspect costly) trademark process to change their name, should consumers expect them to continue the conversation further about a spirit’s dark history?

Read the full story on BevNET

The owner of Jim Beam faced a slowdown in the U.S. during FY 2023 but reported 7%  sales growth overall in its latest earnings report released last Friday. As a privately owned company Beam Suntory isn’t required to release financial statements, but info shared in a statement echoes other spirits companies who are hoping the long-term premiumization of spirits and RTDs holds up. Here’s the overview:

🥃 Sales declined -2% in the U.S. compared to 2022, blamed on the consumer slowdown following the pandemic. Brands Jim Beam (+3%) and Maker’s Mark (+10%) performed well alongside double-digit growth for the company’s Japanese whiskies. 

✈️ RTDs delivered around 12% sales growth, fueled by Lemon Sour, Jim Beam, Kakubin RTDs, and the global expansion of -196, which has moved into the U.S., Europe and Southeast Asia. The company has prioritized travel channels for its premium RTD, On The Rocks, but is positioning -196, a fruit-forward RTD, as an antidote to seltzer fatigue. The company debuted Jim Beam Kentucky Coolers last year and will continue to expand that proposition, according to an interview last year with the managing director of RTDs.

🎩 The company said it will continue to advance its premiumization strategy and focus on key priorities including premium-plus American whiskey, tequila, Japanese spirits and RTDs. Part of keeping that focus was passing the Courvoisier to Campari last year for an initial price of $1.2 billion.

Big Grove Brewery has acquired a majority stake in Climbing Kites, an Iowa-based maker of Delta 9 THC- and CBD-infused, non-alcoholic sparkling water. Iowa City-headquartered Big Grove acquired a 51% stake in the business last September. Financial details were not disclosed. The deal was not made public until now.

Read the full story on BevNET

Jason Burke, founder/CEO of clean ingredient meat snack and sauce brands The New Primal and Noble Made, spoke about how he navigates constant shifts in how retailers measure traction and determine metrics for success, and how to demonstrate incremental value during pitch meetings.

Listen to the full episode of Taste Radio