Plus, a roundup of ‘Pop’ news ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetAugust 14, 2024
DAILY BRIEFING
Today's news & insights for the beverage industry.
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In this issue of Daily Briefing

  • 🎉 ‘Pop’ News Alerts
  • 🥤 Review: Nutcase
  • 🥊 Lifeway’s Family Feud Fights On
  • ❌ Circuit Court Says Company Can’t Patent Coke Zero Sweetener

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📰 Today's Top Story

🥃 Dispatch From The Tequila-Soaked Hollywood Streets

🥃 Dispatch From The Tequila-Soaked Hollywood Streets

Last night on a Hollywood rooftop, another tequila brand was born into the world. 

Loca Loka, spearheaded by a Bollywood film star and a composer, made its L.A. debut in the first stop of a four-city tour aimed at earning Indian-American support for the new brand. Entrepreneur and co-founder Harsha Vadlamudi said that they’re “trying to open up a new market segment altogether” by targeting the Indian-American diaspora, versus competing against big names for the general tequila drinker. 

But can Loca Loka make people loca for its tequila? The celebrity tequila template is nothing new (I’ve seen cameras follow around stars launching their products on that very same rooftop before) but Vadlamudi’s plan to appeal to a demographic with limited representation on the American backbar might stand out. The tequila name combines the Spanish loca (crazy) and the Sanskrit loka (world).

“If it’s South Asian then I’m supporting it,” said actress Sharmita Bhattacharya, who was invited by a friend to the party. 

Bhattacharya and two friends said they drink tequila, mostly in margaritas, and are brand-agnostic (Don Julio? They said to each other while trying to remember the name.) 

That’s the exact demographic Vadlamudi sees an opening with. 

“Indians as a diaspora are mainly Scotch or whiskey drinkers, but the younger generations who have been living in America, I think they have a different perspective towards the drink category,” he said. 

To reach them, Indian film star Rana Daggubati and musician/composer Anirudh Ravichander will first launch the brand and host events in major metros including New York, Chicago and Houston. Ravichander is also embarking on a separate four-city concert tour to arenas in Oakland, Chicago, Dallas and New York. When we first spoke, Vadlamudi had closed two deals to offer Loca Loka at each arena, and was negotiating for the other two. 

Vadlamudi, who is also the managing partner of India-based brewery Ironhill, sees the U.S. and other mature markets (London, Dubai) as training grounds for eventually bringing the brand to India, where tequila is quickly gaining popularity. Tequila is projected to grow globally at a compound annual growth rate of 7% between 2021 and 2026, per the IWSR.

“In America, I don’t need to advocate for the product,” he said. “Just for my own brand.”

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👉🏼 What You Need to Know 👈🏼

🎉 ‘Pop’ News Alerts

🎉 ‘Pop’ News Alerts

There is news pop-ing up everywhere today (and that’s not even including a certain ownership change for Pop-Tarts). 

✨ GoodPop has reformulated and refreshed the look of its kid-positioned sparkling water. The new recipe features more fruit juice and the bolder branding is paired with an exclusive 15-can club pack that is launching in Costco locations in Los Angeles and the Northeast.

🇨🇦 The land of maple is finally getting a taste of poppi. The next-gen soda brand has crossed the northern border with four flavors – Strawberry Lemon, Orange, Classic Cola and Doc Pop – and is now available in Canada hitting shelves of retailers including Loblaws, Real Canadian Superstore, Metro, Save on Foods, Maxi, Safeway, and Costco. The modern soft drink will launch additional varieties in the coming months.

🥤 Just three months after its debut, Happypop has repackaged its better-for-you soda, tapping consultant Fred Hart to rework the label design to better communicate the brand’s mood-boosting, energy-inducing value proposition. The no-added sugar drinks contain 90 mg of velvet bean (L-Dopa) adaptogens and 100 mg of caffeine.

Go Deeper: Read how a TikTok mix-up led to an unexpected sales boost for Happypop

 

🥤 Review: Nutcase

🥤 Review: Nutcase

Nutcase has entered the beverage landscape with a 3-SKU line of canned cashew milks, which are positioned as “nostalgic, healthy and delicious.” As the brand’s name suggests, all three flavors – Vanilla, Chocolate and Strawberry – are made with nut milk (a blend of water, cashews, agave syrup and dates). 

Do these RTD single-serve milks successfully showcase the unique flavor of cashews? Find out in the full review on BevNET

 

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🥊 Lifeway’s Family Feud Fights On

The family drama at Lifeway Foods has shown no signs of abating anytime soon. Former board members Edward and Ludmila Smolyansky, respectively the brother and mother of CEO Julie Smolyansky, announced yesterday they have filed a consent statement with the U.S. SEC seeking to replace the company’s existing board.

❌ The Smolyanskys have strongly disagreed with Julie’s leadership, with Edward claiming in the release that “Lifeway has been on autopilot” and has missed “critical market opportunities due to a lack of strategic vision.”

⭐ Earlier this year, Edward and Ludmila launched a campaign called “Life Back to Lifeway” which aims to highlight their “commitment to revitalizing the company with a clear vision and strategic plan.”

📈 Despite the family feud, it’s worth noting that, according to its most recent earnings report this week, Lifeway has been experiencing a period of record growth for five straight quarters, including a 25.3% net sales increase in Q2 2024.

 

❌ Circuit Court Says Company Can’t Patent Coke Zero Sweetener

Coke Zero’s secret sauce is not so secret anymore… at least for Celanese, the Texas-based chemical company that developed the product’s alternative sweetener. U.S. Circuit Judge Jimmie Reyna pointed to a precedent set in 1829 and told the company that “Ace-K,” the sugar substitute used in Coke’s zero-calorie soda, cannot be patented since it has already been used in a formulation.

🧑‍⚖️ Celanese brought its case against over 20 rival ingredient makers; the U.S. International Trade Commission initially rejected the suit in 2022.

🤷 Judge Reyna’s decision stems from a concept called “on-sale bar” which asserts that people (or companies) cannot patent something that has already been sold in some capacity, even if those ideas were kept secret while being sold.

🏛️ The 1829 ruling cited by Reyna was Pennock v. Dialogue and concerned a new fire hose invention; the more recent Helsinn Healthcare SA v. Teva Pharmaceuticals USA ruling in 2019 helped secure the status for Reyna’s decision against Celanese.

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