• Malibu Mixes With Dole
• From I.V. to RTD?
• Soda Trends Shaping Big Corp. Strategy
• Target CEO Shakeup
• CPG Week: Clean Labels, Dirty Sodas & Soylent’s Struggles

“Total beverage” is a phrase that’s been tossed around with abandon by global beverage conglomerates in recent years. But could we be watching it play out in New York City? 

As the city prepares for a potentially watershed moment in mayoral politics, there’s a seismic shift already underway with Wednesday’s news of wine/spirits powerhouse Southern Glazer’s acquiring Anheuser Busch’s wholly owned distributor (WOD) servicing four of the city’s five boroughs (minus Brooklyn). 

It’s a big deal for beer (there’s Brewbound for that, folks), but when the transaction closes later this year, it will have implications for non-alcoholic beverages as well: 

• The deal bridges New York’s divide between wine/spirits and beer/FMB/non-alcoholic distribution, which are required to move separately to exclusive channels. Under the newly created Southern Glazer’s Beverage Company of New York, it will act as “total beverage” operator across bev-alc and non-alcoholic categories. 
• This comes after A-B raised eyebrows in May by shifting Cutwater and Nutrl RTDs to Southern Glazer’s in California and Hawaii, and suggests more portfolio realignment could be in the cards. 

Free rein to play across categories doesn’t necessarily mean a full portfolio, though. While all eyes will be on energy drinks as A-B’s Phorm Energy begins rolling out, a more nimble on-the-ground presence in NYC might inspire A-B to push the throttle on in-house innovation, M&A or joint ventures. 

• Non-beer volume growth (+0.3%) was one of the positive notes from A-B’s Q2 earnings last month, which saw total volumes fall 1.9% YoY and beer drop 2.2%.
• Recall A-B’s WOD in California also picked up Yerba Madre (formerly Guayaki) for DSD coverage in January, and Southern Glazer’s President and CEO Wayne Chaplin even gave the beer giant a shoutout as “an emerging leader in spirits and energy drinks.” 
• On its own, Southern Glazer’s has pursued expansion in non-beer NAs, most recently signing a national distribution agreement with Owen’s Mixers as part of a “broader strategy to grow its presence in the non-alcoholic beverage space.” 

There’s also some question around non-alcoholic spirits: Southern Glazer’s distributes some of Diageo’s most popular brands, but not the zero-proof versions that sell outside wine/spirits outlets. Now they could try to bring them back into the fold, but terminating existing relationships may be expensive. 

For more on this major distribution deal, read the full story on BevNET.

Brothers International delivers premium fruit ingredients from the world’s finest growing regions. We supply juices, purees, concentrates, and IQF fruits to top food and beverage brands, backed by decades-long grower partnerships for consistent quality, exceptional service, and scalable solutions. Learn more

A favorite poolside duo just got a convenient upgrade. 

Pernod Ricard is continuing its strategy of pairing its brands with brand names well known on the other side of the fridge – up next is a Malibu and Dole ready-to-drink (RTD) cocktail line coming early 2026. 

The collaboration was inspired by the popular pairing of Malibu and Dole pineapple juice – mixed together, it’s the top way consumers enjoy Malibu – according to both children of the 1990s and drinks research firm IWSR. 

In its last quarterly earnings report, Pernod Ricard noted that Absolut sales were improving in the U.S., led by the collaboration with Ocean Spray, which launched last year.

Read the full story on BevNET.

Is stick pack extraordinaire Liquid I.V. finally embracing ready-to-drink? 

The powdered beverage producer posted a teaser to Instagram this week showing a blurry image of an aluminum can, which can only lead an astute viewer to presume a canned line is on its way.

The video included the slogan “Prepare to Glitch” and was accompanied by a vague comment: “okay wait...did you see that too or nah? 👀” We’re not sure what glitching has to do with hydration but they have our attention!

Acquired by Unilever in 2020, Liquid IV is a leading better-for-you powdered hydration brand - sales are approaching $1 billion - and produces dozens of flavors of functional drink mixes in single-serve stick packs.

Extending into RTD could be one means to expand the brand’s presence in stores and it’s a move that’s been tested by smaller powdered brands in the past, such as SOS Hydration.

Go Deeper: Four Questions With Liquid I.V.’s VP of Impact

When Poppi came out swinging with its first Super Bowl commercial in 2024, it told America “this will be the last moment you ever think of ‘soda’ as being a dirty word.” But ‘Dirty’, it would appear, is exactly what the people want…

• After emerging from the soda shop channel (frequented by Utah’s alcohol- and coffee-averse Mormon plurality), the dirty soda trend became a social media sensation via TikTok
• The trend is reshaping menus at mainstream restaurant chains all across the country, while also capturing the attention of Coke and Pepsi.

Introducing Drips: A new “Insta-worthy” line by Pepsi featuring colorful fruit- and candy-flavored sodas that will roll out to Regal movie theaters. It seems Pepsi wants a slice of the social media hype that’s been boosting the soda shop chains like Swig and FiiZ Drinks.

• Even Poppi is getting Dirty via a new collaboration with New York restaurant Cool Sips, which has introduced new flavors made with the prebiotic brand’s canned soda offerings.

Insiders can access the full story for a complete look at the trend’s influence on CPG.

Target CEO Brian Cornell submitted his resignation this week, effective February 1, following quarter after quarter of dropping share prices and flagging store performance. 

• COO Michael Fiddelke is lined up to assume the chief executive position.
• Cornell spent 11 years at Target and will remain as executive chairman. 
• The end of his time as CEO comes amid declining sales and consumer protests over the retailer’s embrace of – and later retreat from – DEI standards.

Culture war is only one part of the picture though. Target’s sales have been struggling for years and the departure announcement came as the retailer simultaneously reported its third straight quarter of sales declines.

• Whether Fiddelke can right the ship is TBD. As it stands, some analysts believed an outside executive should be brought in instead of an existing face.
• But Fiddelke is aware improvement is needed and told investors the company is not living up to its potential at the moment.

Related Read: The SBA is Also Eliminating DEI Programs to Appease the Trump Admin

In this episode of CPG Week, the hosts discuss why Saffron Road is aligning with growing anti-seed oil sentiment, how the TikTok-driven dirty soda trend is influencing beverage innovation, Keychain’s latest fundraise, and the recent struggles of one-time Silicon Valley darling Soylent.

Click here to listen to this week’s episode. Also available on Spotify and Apple Podcasts.

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