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DAILY BRIEFING | Today's news & insights for the beverage industry. |
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|  | 📰 Today's Top Story | | | Marking its 125th year in business in 2023, Pepsi is sprucing up its diverse mega-brand portfolio with new products, packaging and positioning, all of which were on display at the NACS trade show this week. Rockstar has been tweaking its positioning and messaging in recent years to find a foothold in a category that has shifted to broader functional propositions. At this year's show, the featured innovation was Rockstar Focus, a zero-sugar, 12 oz subline promising "Energy & Mental Boost" via 200mg of caffeine and the functional benefits of Lion's Mane mushrooms. The non-carbonated Rockstar Recovery line is also getting a pair of new flavors with unique ingredients -- biotin, magnesium and zinc, specifically -- that existing SKUs will not. Both are set to launch in January 2024. In Starbucks-Pepsi RTD coffee news, Frappuccino is embracing oat milk (the most popular alt-milk choice in Starbucks cafes) for the first time with a pair of new SKUs, Caramel Waffle Cookie and Dark Chocolate Brownie, each clocking in at at least 270 calories per 13.7 oz glass bottle. And in a move that perhaps reflects the category's evolution from specialty item to commodity, Starbucks Cold Brew (updated to be "smoother" and "more coffee-forward") is moving from 11 oz squat glass bottles into 12 oz sleek cans in Vanilla, Chocolate and Caramel. Then there’s MTN DEW, the legacy CSD brand that has served as a platform for everything from energy to alcohol SKUs. This year’s innovation is strictly around flavor, as the long-running Baja Blast subline (aligned with Taco Bell) gets two new LTOs: Baja Point Break Punch and Baja Laguna Lemonade. Elsewhere, Gatorade has emerged as one of the drink maker's primary innovation platforms: last year it was with energy drink Fast Twitch, and this year with the less flashy introduction of Gatorade Water, which reps emphasized as a "big bet" for Pepsi going forward. Expect more robust marketing on Gatorade Water in the coming weeks, we were told. Other lines are still going along as well: naturally positioned G Fit will introduce a new flavor, Passionfruit Citrus, next year, and samples of rapid hydration line Gatorlyte’s latest flavor were also being poured at the booth. But there’s still more water to come: meet Bubly Burst, an extension that takes the flavored sparkling water line from cans to 16.9 oz PET bottles and into the naturally sweetened, low-calorie zone (10 per serving) as a Sparkling Ice competitor. Muscle Milk, which is marketed under the Gatorade banner, is also receiving an update with the launch of Muscle Milk Plant next year in the core line’s three most popular flavors, Caramel, Chocolate and Vanilla, each with 30 grams of protein. |
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| | | Michael Zuckerman, president of beverage packaging provider Zuckerman Honickman, is preparing to exit the company co-founded by his great grandfather, effective January 1. - Based in Pennsylvania, Zuckerman Honickman offers packaging solutions for beverage companies, including printed and unprinted aluminum cans, hot- and cold-fill plastic bottles, and glass. The business has serviced brands such as Honest Tea, Vita Coco and Hint among others.
- Last year, the company was acquired by global packaging conglomerate TricorBraun, which has also announced plans to acquire at least eight other packaging businesses worldwide.
- Michael Zuckerman told BevNET he intends to stay with the company as a consultant following his January 1 departure. The business will still be connected to the family; Jon Zuckerman remains as VP of Operations.
- “I have been totally immersed in the business for virtually my entire adult life, and I am looking forward now to my consulting role with ZH and to spending more time with my family,” Zuckerman said.
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| | 👉🏼 What You Need to Know 👈🏼 | | TGIF! It’s that day of the week when we drop our weekly new products gallery, giving you a taste of the newest innovations on the market. Here’s a sneak peek at what’s inside: 🥤 Minneapolis-based hemp brand Simply Crafted transformed a classic autumn dessert, apple crumble, into a THC-infused seltzer. Each 12 oz. can contain 10mg of THC and 5mg of CBD. 🥣 Koia expanded its portfolio of plant-based protein shakes with the launch of three nostalgic, cereal-inspired flavors – Fruity Cereal, Cocoa Cereal and Cinnamon Cereal. 🔪Energy drink maker G Fuel kicked off spooky season with its new Hack ‘n Slash Collector’s Box, inspired by none other than slasher icon Jason Voorhees from Friday the 13th. Keep an eye out for the full new product gallery on BevNET later today. |
| | | | From a small East Coast business to two national distribution deals this year – With Co Cocktails (a.k.a. With Company Cocktails) is quickly finding new drinking buddies. The Nashville-based brand is rolling out at Sprouts stores nationwide this week following a launch at all 1,800 Target stores earlier this year. “This [new] partnership is a cornerstone of our retail expansion efforts,” said founder Joshua Ellis. In more distribution news: 🧠 Illicit Elixirs is targeting expansions in Nevada, Tennessee, Michigan, Wisconsin and Southern California brick-and-mortar stores with its “dopamine supporting” functional sparkling drinks after an online launch earlier this year. 🫚 Fever-Tree’s new 3-SKU cocktail mixer line is heading to Whole Foods where it will be on shelf next to the brand’s tonics, gingers and sparkling flavored soda products. 🍄 Shroomi announced a slate of new distribution this week including a nationwide launch at Sprouts, Thrive Market, New Seasons Market and Raley's. Check out the full rundown of distribution updates on BevNET. |
| | | Snoop Dogg has dropped RTD coffee brand INDOxyz 🎵like its hot🎵 (apologies but we couldn’t help ourselves). After joining the brand in March as an investor and spokesperson, Snoop reportedly “quietly stepped away at the start of the summer,” according to initial reporting from Page Six. There is little information as to why the hip-hop artist is moving on from RTD coffee but his online representation on INDOxyz’s website seems to have been scrubbed since at least mid-June. Additionally, both INDOxyz and Snoop’s Instagram accounts have removed nearly all traces of the partnership. 📺 The legacy rapper has been investing more heavily in CPG food and beverage brands since his partnership with Martha Stewart in 2016. 🍷 Snoop has partnered with a variety of beverages from his strawberry-flavored gin Indoggo to a 19 Crimes Wine collaboration to bringing his recently-acquired Death Row Records label to Happy Dad Hard Seltzer. 🥣 Along with beverages, the recording artist has jumped into food with his Uncle Snoop’s Snazzle Os cannabis snacks, Broadus Foods (breakfast cereal line in partnership with Post Consumer Goods) and, earlier this year, he released ice cream under his pseudo-identity Dr. Bombay. |
| | | | 🥤 Non-alcoholic beverage sales remained “healthy but decelerated” in the two-week period ending September 23, reflecting somewhat weaker volumes and broadly stable pricing growth, according to Goldman Sachs Equity Research’s latest analysis of NielsenIQ data. 🔍 Here’s the top-level view: dollar sales were up 2.2% in the two-weeks, compared with 4.3% for four-weeks and 10.2% for 52-weeks while volume declines worsened, down -3.4% in the period versus a -1.2% drop in the four-weeks. Overall, pricing growth “remained healthy and broadly stable sequentially,” according to the report, up 5.6%. 🥥 Coconut water again saw the largest dollar sales growth among the major beverage categories, growing 14.2% in the two-week period (+16% for four-weeks and +13.7% for 52-weeks). Category leader Vita Coco (+14.6%), as well as Harmless Harvest (+15.4%) and C20 Pure Coconut Water (+17%), all outpaced the category. |
| | | Virginia Artesian Bottling Company is preparing to expand its warehouse space and production capabilities at its Mechanicsville, Va. facility, according to a release by the Virginia Economic Development Partnership this morning. 💲The water bottler is set to invest $3 million into the expansion, which is expected to create 13 new jobs. 🏭 Founded in 2002, Virginia Artesian is a family-owned business that sources water from aquifers in Hanover County. The products are produced for “various entities from universities to hotels” nationwide. |
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