The Latest Beverage Industry News & Coverage, Delivered Daily͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetJuly 11, 2023
DAILY BRIEFING
Today's news & insights for the beverage industry.

📰 Today's Top Story

🔊 Sound Tunes In To Chain Retail

🔊 Sound Tunes In To Chain Retail

New York-based Sound's journey has taken it from glass bottles to cans, from an emphasis on tea to a pivot towards sparkling water, but the essential proposition — unsweetened, organic teas flavored with high quality natural ingredients — has remained consistent. That approach has helped fuel and sustain Sound's growth, but having achieved solid footing (and landed new financing), Sound is beginning to turn up the volume on awareness. 

With a strong visual presence on-shelf, the brand’s current priority is boosting in-store marketing and driving velocities within existing retailers. That meant making moves “that would put us in a better position” relative to COGS, CEO Tommy Kelly told us in June, including a 10% price hike. That money is being redirected towards deeper investments in supporting its chain retail business, but with the benefit of a sharper focus on effective tactics: less podcast ads, more work building community with existing customers.

“We’ve pulled back on a lot of the top-of-the-funnel brand marketing initiatives that have a longer payback period to focus more on lower funnel marketing at the retail shelf, whether that’s off-shelf placements, or a gift with purchase," said Kelly, noting the chain business is up 400% this year with an emphasis of cans-in-hands. “Things that we can control this sort of cause and effect and have a better understanding and a shorter feedback loop.” 

It’s a chance to grow, but also a second chance to crack the channel: having previously gotten into Target only to be discontinued, Kelly said “there's a big difference between a great headline and a great sales opportunity.” With healthy P&L and some formidable names joining the cap table (including The Honest Company co-founder Christopher Gavigan), Sound’s time in the spotlight may be coming soon. 

Read the full story today on BevNET

 

👉🏼 What You Need to Know 👈🏼

🥃 Spirits People Moves: Stoli, Lyre’s Name New CEOs

🥃 Spirits People Moves: Stoli, Lyre’s Name New CEOs

Reshuffles at spirit companies point to more possible acquisitions for the Stoli Group, amped up production from Lyre’s, and a continued focus on the U.S. from Campari Group.

  • After NA spirits brand Lyre’s banked nearly $22.9 million last week, the company has appointed former chief marketing officer Paul Gloster as its new CEO. The Australian brand said nothing about the departure of founder Mark Livings, who grew the company into a leading non-alc spirit brand amid the category’s boom.
  • Stoli Group announced a reshuffle in leadership roles yesterday, including the appointment of former CFO Chris Caldwell as its new global CEO. The new executives will play pivotal roles as the company looks “to further diversify through acquisitions and brand expansion,” said the owner and founder. The group made its first non-alc investment in May by backing The Pathfinder Hemp and Root
  • Building on momentum in the U.S., the Campari Group promoted two key executives in the Americas, Melanie Batchelor and Ugo Fiorenzo, last week.

Read the full story on BevNET

 

PARCH: Non Alcoholic Agave Cocktails Powered by Adaptogens are Inspired by the Sonoran Desert

Sponsored message from PARCH
PARCH: Non Alcoholic Agave Cocktails Powered by Adaptogens are Inspired by the Sonoran Desert

PARCH combines organic Blue Weber agave, cactus fruit, desert botanicals to create unique flavor pairings inspired by their motto “if it grows together, it goes together”. PARCH’s blend of functional adaptogens is designed to center your mind and body for a modern social drinking experience. Learn more

🚰 High Speed: Fmr. Mtn. Valley Water Chief Turns to Cannabis

Former Mountain Valley Spring Water exec Breck Speed continues to expand his business interests: in addition to backing volcanic artesian water startup Splendor, Speed’s next beverage venture is Arkansas-based cannabis processor High Speed Extracts, which opened for business last month. The company markets low-dose Delta-9 THC drink Lark, which is sold in around 400 locations across the state, along with Texas and Georgia, via liquor houses Moon Distributors and Central Distributors, per Arkansas Times. The company also sells a THC/CBD cocktail called Ave. However the market is yet to take off in Arkansas; Ave is still not on shelf due to “regulatory confusion” over hemp-derived THC, but Speed and partner David Owen voiced confidence that newly enacted restrictions on hemp products will not impact them. 

 

➕ Minus Coffee Adds Investment

“Beanless” coffee startup Minus Coffee has a new backer: Mexico City-based VC fund Amplifica Capital, according to a report in Sprudge. The size of the investment was not disclosed. While still just a drop in the massive RTD coffee category bucket, the new capital — coming on top of $4.5 million raised in September 2021 — suggests there’s some growing enthusiasm for climate-conscious coffee in a can: recall that rival Atomo Coffee raised $40 million ahead of its e-commerce launch a year ago. 

Go Deeper: Can Beanless Coffee Solve The Industry’s Sustainability Problems?

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