• 🏀 Barcode Scores New NBA Partners
• 🏆 Palm Tree Crew's Functional Soda Strategy
• 🍸 New Spirits From Hennessy, Milagro Tequila 
• 📈 Zevia Regains NYSE Compliance

From Dry January to Sober October. Whether it's simply the clever rhyme or an inclination to sober up ahead of the holiday season, either way October has become one of those times of the year many decide to take a break from booze. These sober-curious consumers are tempering their alcohol-intake but not abstaining from socializing or enjoying some form of adult beverage in the evening.

No-alcohol beverages showed continued strength in 2023, with overall volumes rising 29% in the U.S. versus 2022, according to IWSR Drinks Market Analysis data.

Despite the increased volumes, availability remains a concerning “long-term trend” with 47% of no- to low-buyers in 2023 saying availability was a factor preventing more frequent consumption, said Susie Goldspink, IWSR’s head of no- and low-alcohol insights.

Access to these products took a hit earlier this year when Boisson, one of the biggest retailers in the Adult Non-Alcohol (ANA) drink space, filed Chapter 11 bankruptcy and closed all eight of its retail stores. Brick-and-mortar is expensive to operate and, for smaller boutique businesses like Chicago-based Bendición, moving to a wholesale and ecommerce model is a cost-effective way to keep the (digital) doors open.

That’s not to say that there aren’t new players coming into the space. Just last month, a former founder of Boisson, Barrie Arnold, launched his new platform bardelia. Focused on ecommerce, Arnold is planning to leverage the data and insights from the online business with an aim to eventually open in-person storefronts.

“Consumers increasingly turn to the internet for product discovery and research, interacting with brands multiple times online before committing to a purchase,” Arnold said. “E-commerce platforms empower businesses like ours with a wealth of data - we get to know our customers and can offer tailored product recommendations and content to enhance their experience.”

For others, a more experiential approach to ANA sales has been key to keeping customers coming back for more. From New York to Indiana to foggy San Francisco, retailers are creating inclusive spaces to learn more about the category and see the wide variety of options coming into the market.

As with anything in retail though, location can be everything and finding the right place to operate can be a key determinant for success. Along with that, positioning around community and bringing more functional options to the product mix have become ways to shift the ANA category further into the mainstream.

Learn how kava slushies, lattés and “experiential marketing” strategies are fueling the ANA category forward on BevNET.

Stay ahead with our comprehensive report on innovative thirst. Learn about the latest trends, consumer needs, and product opportunities shaping the future of functional beverages. Get your free report and personalized recommendations for your brand. Learn more

Sports drink maker Barcode has always identified with professional basketball. After signing on as the official fitness water of the Brooklyn Nets, Barcode announced today it is the official performance water of the San Antonio Spurs and the Miami Heat.

⏪ Reminder: Its founder Mubarak “Bar” Malik is also closely tied to the court, having served as the director of performance for the New York Knicks and its investors include former and present NBA players like Carmelo Anthony and Victor Wembanyama.

😎 The respective five-year deals grant Barcode branding on team benches, cups, coolers, towels and other NBA-approved equipment as well as activations with each franchise.

🔥 In Miami, Barcode will also be sold as a concession in-arena and opens the brand up to a new distribution market in South Florida.

🧘 Barcode has also been exploring other ways to build awareness partnering with hip-hop artist JADAKISS and activating with wellness community groups and fitness studios.

Read the full story on BevNET.

Palm Tree Crew, which announced an investment in Cove Soda earlier this week, believes there’s ample opportunity to have “multiple winners” in the rising functional CSD category, CEO Michael Diaz told BevNET. 

🔭 Diaz said after assessing the market for the past few years it felt Cove Soda was one of the few that “checked every box in terms of taste, health benefits, real brand equity, strength of the founder and management team, and a real understanding of what the customer wants.”

🍨 Cove was founded in 2016 as a kombucha brand, rebranded in 2022 and has now pivoted to a probiotic soda line. Diaz said Cove dropped kombucha prior to connecting with Palm Tree Crew, noting the narrow focus on functional soda has led to Gen Z-friendly flavor innovations like its bombsicle-styled Ice Pop SKU.

🎉 With two functional, gut health-friendly sodas in its investment portfolio, Diaz said Cove will work to grow in similar ways to Poppi – focusing on experiential marketing, messaging focused on taste, and celebrity partnerships, including a roster of entertainers like Chris Rock and Diplo brought in as investors by Palm Tree Crew. 

🏨 The firm will also work to introduce Cove to its own hospitality properties, including restaurants and hotels: “Finding ways to organically and authentically integrate our portfolio brands into those properties as well is  a part of the strategy,” Diaz said.

As the weather continues to cool down, spirits creators are seeking to heat up the segment with an array of new product launches. Let’s take a look at the latest releases: 

🏀  LeBron James isn’t just a wine and tequila guy, at least not anymore. The Los Angeles Lakers superstar has teamed with Hennessy on a limited edition V.S. bottle that “represents a shared sense of dedication and discovery coming to life for everyone to enjoy.” 

🎤 Bartender cult favorite, Fernet-Branca has launched its first-ever limited edition offering in the U.S. market. The Record Label celebrates the grand finale of Fernet-Branca’s five-month Secret Handshake concert tour. 

👀 Milagro Tequila’s first launch in ten years is clearly trying to get in on a trending category: the 100% blue agave Tequila aged in both American and French oak barrels for 18 to 24 months is then filtered through charcoal to obtain a crystal-clear spirit. 

🍫 Just in time for sweater weather, Swiss Miss has joined forces with Hotel Tango Distillery to debut ‘Shmallow, a toasted marshmallow and cocoa-infused bourbon. Swiss Miss ‘Smallow will be available this month at select retailers for a SRP of $27.99 per 750 mL bottle. 

Check out the full gallery for all of the latest spirits launches.

Stevia-sweetened beverage brand Zevia has regained compliance with the New York Stock Exchange, having hit the minimum $1 per share stock price necessary to continue trading for a sustained 30-day period.

💸 Since going public in 2021, Zevia has regularly struggled to maintain the initial highs of its stock price following its IPO, but it reached all-time lows this summer as the stock fell below $1 per share in April and landed as low as $0.64 in July.

💲 The price rebounded past a dollar in August and has mostly remained above board since then, closing around $1.04 yesterday.

🚛 Zevia’s stock woes accompany struggles to drive sales growth. In its Q2 2024 earnings report, the brand announced net sales fell 4.3% to $40.4 million for the quarter, with a net loss of $7 million. The brand has long battled distribution and supply chain challenges.

What is the impact of PepsiCo’s $1.2 billion acquisition of Siete Foods on emerging food and beverage brands? Will the deal entice investors to make more bets on new and innovative concepts? Will everyday Americans benefit from the deal? Lots of questions, and the hosts answer them all.

Listen to the episode now.