Plus, Coco5’s latest gains, why Walmart is upping prices and the latest from CPG Week͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
May 15, 2025
Bevnet

In this issue of Daily Briefing

  • 🥥 Coco5 Ramps Up Distribution
  • ⭐ Reviews? We Got 'Em
  • 🫣 Why Walmart Is Raising Prices
  • ⬆️ RD1 Gets An Upgrade
  • 🌾 Can Fonio Be The Next ‘Miracle Grain’?
  • 🧪 Finalys Offers ‘Solutions’
  • 🥩 Meati and Beyond Meat Go From Sizzle to Fizzle. Plus, Danone's Latest Deal

📰 Today's Top Story

🍹 Inside De Soi's Margarita Move

🍹 Inside De Soi's Margarita Move

Despite De Soi’s pop star's backing (ICYMI: Katy Perry is a co-founder) the real CPG celebrities behind the business are master distiller Morgan McLachlan (AMASS) and CEO Scout Brisson (Forbes 30 Under 30). 

Since launching the brand in 2022, McLachlan and Brisson have been on an educational roller coaster ride on how to position a line of inventive zero-proof cocktails as consumers warm up to non-alc. Today’s lesson has led the non-alcoholic apéritif to take up more space on shelf with the debut of the Haute Margarita.

  • A riff on the spicy margarita, De Soi’s latest addition features lime, agave, mesquite, green mango and jalapeño flavors with an adaptogenic twist beneath the bubbles that includes L-theanine, lion’s mane, and reishi mushroom. 
  • As you may recall, De Soi debuted with abstract cocktails like the tart cherry and ashwaganda-spiked Purple Lune. 
  • But the founders learned quickly that there was still an education gap among customers, who needed to understand what their cocktail purchase was meant to taste like and replace.

Following the Très Rosé and The Spritz Italiano, this will be the brand’s third core SKU. Margaritas and Aperol Spritz were neck-and-neck for flavor requests in post-purchase surveys, said Brisson, so America’s favorite cocktail was a natural next step. 

The evolution of De Soi represents some of the growing pains for adult non-alc (ANA): How to deliver something novel and nuanced that’s also a recognizable alcohol proxy or has a clear occasion and use. 

Even bartenders are still struggling to innovate with ANA products. That may be part of why the segment is largely still a beer-heavy phenomenon, although the convenience of a can is transferring to other aisles as well: Sales for ANA RTDs rose 165% in the 52-weeks ending Jan 25, compared to ANA bottled spirits at 39%. 

Read more about how De Soi is leveraging its new lineup to go after on-premise, while using innovation to build the brand. 

 

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👉🏼 What You Need to Know 👈🏼

🥥 Coco5 Ramps Up Distribution

🥥 Coco5 Ramps Up Distribution

Coco5 is undergoing a mindset shift from a mile deep distribution, to now a mile wide as it ramps up retail commitments for its coconut water-based sports drink across the country.

🚪 The company said it has reached well north of 7,000 doors across the country as it grows in mass channel chains and independent health clubs, golf courses and resorts, among other new accounts.

🪞 A visual rebrand last year has boosted sales, particularly with female consumers, according to marketing lead Tyler Farnsworth.

🥥 Competing sports drinks like BodyArmor and PRIME have made use of coconut water, but a wide degree of functionalities has been embraced in the category, including the growth of medical-grade brands like Electrolit and other female-focused brands such as Alex Cooper’s Unwell Hydration.

Insiders can read the full story on BevNET.

 

⭐ Reviews? We Got 'Em

This week at BevNET we rounded up new wares from Culture Pop, Yuzuco, Cadence and Mind Garden.

Then, we chronicled our thoughts with each swig, highlighting aspects of the brand, liquid and product positioning that stood out and things the company could consider for next time. 

🆓 Check out this week’s review roundup on BevNET.

To submit your beverage product to BevNET for review, click here. And to browse past reviews, check the archive here.

 

🫣 Walmart Raising Prices Amid Darkening Retail Data

The largest retailer in the U.S. will be raising prices on the back of an uncertain trade environment. Despite the daunting news, Walmart CEO Doug McMillan said this morning that “the first quarter was what we expected on the top line, and better than what we expected on the bottom line.” So why the foreboding pronouncement?

📈 Simply Put:Given the magnitude of the tariffs… we aren’t able to absorb all the pressure given the reality of narrow retail margins.”

🤞While McMillan didn’t provide specifics on Walmart’s price increase plan for the coming months, he did say the retailer would do its best to keep food and consumable prices as low as possible.

⛈️ The storm clouds might be swirling over retail optimism. The U.S. Census Bureau’s monthly sales data showed retail spending slowed dramatically in April as consumers' pre-tariff purchases waned.

🛒 Meanwhile, there’s reporting that Walmart competitor Kroger is being a little less transparent about raising prices, as Consumer Reports investigated whether the company is overcharging at the register for items listed as being on sale.

Go Deeper: The Long Tail Of Tariffs’ Impacts

 

⬆️ RD1 Gets An Upgrade

As bourbon distilleries are pausing production or closing down altogether, here’s some good news from Kentucky: RD1 Spirits got an upgrade.

🏭 RD1 Spirits’ new, two-story distillery in Lexington opens this week; the new facility is located in the city’s entertainment district and is three times the size of its former home.

🤩 The larger space delivers an immersive visitor experience, including a glass-enclosed R&D lab focused on wood finishing, a VIP speakeasy tasting room, and interactive elements throughout.

💰 The opening follows an announcement by InvestBev that it closed an eight-figure financing agreement with the distillery on Tuesday.

Go Deeper: ‘95% of New Brands Fail’ – How to Be the Other 5%,’ Per InvestBev

 

🌾 Can Fonio Be The Next ‘Miracle Grain’? Yes, If There’s Enough

Yolélé’s CEO and co-founder Philip Teverow alongside chef Pierre Thiam founded their fonio-centric CPG brand on the belief the niche West African ingredient can be the next “miracle grain” if it garners enough support from a U.S. market. But the fun really ramped up when Yolélé turned fonio into a limited-edition beer.

  • Fonio is drought-tolerant, regenerative and nutrient-dense. The tiny crop is renowned for its consistent yields year-to-year in arid regions where water is scarce and farming can be risky. 
  • One-quarter cup serving of fonio contains 3 grams of protein, 160 calories, 1 gram of dietary fiber and about 37 grams of carbohydrates as well as 1.7 mg (or 10% Daily Value) of iron.

💸 The company now needs cash to build its fonio processing facility and increase production, but it also needs more capacity to show there’s a viable U.S. market for the grain to secure that capital in the first place. That’s where beer comes in. 

Insiders can access the full story to learn how Yolélé is cultivating a market for fonio across grocery aisles. 

 

🧪 Finalys Offers ‘Solutions’

Ingredient supplier Finlays is leaning into beverage development for its next phase of growth. 

  • This week, the Rhode Island-based company debuted Finlays Solutions, an end-to-end beverage innovation partner offering a comprehensive suite of services and support with a focus on coffee, tea and botanicals.
  • Finlays will be showcasing its new Solutions arm – which touts “world-class beverage labs and advanced technologies,” per a release – at the National Restaurant Association show taking place this weekend in Chicago.
 

🎙️ Now Streaming: CPG Week

🥩 Meati and Beyond Meat Go From Sizzle to Fizzle. Plus, Danone's Latest Deal

🥩 Meati and Beyond Meat Go From Sizzle to Fizzle. Plus, Danone's Latest Deal

On this episode, the CPG Week podcast team digs into the declines of two prominent plant-based brands before discussing the acquisitions of Mary’s Gone Crackers and Kate Farms

📉 What factors contributed to the downfall of Meati and Beyond Meat? We have a few thoughts.

🌶️ Next, the hosts highlight the latest celebrity to launch a coffee brand (Maybe a hot sauce would have been more appropriate?) and shout out an influential founder who can finally eat his own products.

Tune into the episode here. Also available on Spotify and Apple Podcasts.

Like what you are listening to? Please don’t hesitate to rate our show and leave a review on your podcast platform of choice.

 

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Have feedback or a tip to share? Let me know at adeluca@bevnet.com.

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