• 🌼 Owen’s THC-Infused ‘Social Soda’
• 🐮 Oatly Closes Singapore Site
• 🥤 A Saucy New Brick-and-Mortar Play
• 🚚 Distribution Quick Hits
• 🤡 No Joke, This Comedian’s ‘Basic’ Brand Gives Modern Consumers What They Want

It might seem like coffee brands are rushing to enter canned cold brew, but for “beanless” varieties, RTDs seem to be falling out of fashion.

San Francisco-based food tech company Compound Foods, the makers of Minus Coffee, have abandoned their initial innovation – a 2-SKU line of 7.5 oz. single-serve cans – for an instant alternative. 

• The company has unveiled a new powdered oat milk latte, now available on pre-order for $35 per 9.7 oz. bag to subscribers; it will officially launch DTC on January 2. 
• The instant beanless coffee touts 50 mg caffeine, 100 mg L-theanine and 6 grams of pea protein per serving.

The shift away from RTDs also brought a reformulation and rebrand with a “design that encourages women to be bold and ambitious but also to look and strive for the balance they desire in their lives,” said Compound Foods founder and CEO Maricel Saenz. “As a female-led team, we are excited to bring to the market a product that prioritizes women's health, is designed for women by women and brings this critical conversation to the table.” 

While “instant coffee is having a moment” and coffee drinkers are “more comfortable with the format,” she said the new product also adds to Minus Coffee’s sustainability mission. 

• The powdered format takes less water and materials to produce, creating a “convenient and sustainable” solution for consumers that also addresses the climate impact of coffee cultivation, Saenz said. 
• The pivot follows a similar trajectory of aligning alt-coffee with wellness-driven consumers’ newfound affinity for caffeine reduction.

The format was also central to early alt-coffee pioneer MUD/WTR, which helped spawn an explosion of instant coffee alternatives ever since as innovators work to replicate the taste and effect of coffee using a range of base ingredients – from matcha to functional mushrooms and inputs like mesquite or figs.  Mesquite, as we discussed yesterday over on Nosh, is working its way into a few alt-categories.

Another early beanless coffee adopter, Atomo Coffee, has also pivoted away from cans, moving into bagged, bean-free espresso blends last October. That shift out of RTD seems to be paying off, including a “multi-million dollar” investment from Suntory, the opening of a new roastery and a partnership with café chain Bluestone Lane all in the past year.

That’s not to say there isn’t an opportunity for canned coffee alternatives. Oakland-based Voyage Foods is betting on being a supplier of bean-free RTD coffees by offering its product as a private-label or foodservice option for brand partners.

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

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If you’re make a living from mixers, the trend towards alcohol moderation could be source of either anxiety or opportunity; for Owen’s, it’s definitely the latter, as the fast-growing, well-connected brand is expanding into hemp THC-infused drinks with the launch of Daizy’s Social Soda.

🗣️ “Our goal was to create a brand for the health-forward consumer – offering products made with real ingredients and crafted to the highest standards of production and certification,” said Owen’s co-founder Joshua Miller on LinkedIn, also crediting “invaluable partnerships” with family-owned distributor Johnson Brothers of Minnesota and Empire Distributors.

🍹 The “social soda” embraces its callouts for “zero alcohol” and “zero hangover,” with four flavors (Passion Fruit, Grape, Strawberry Lemonade, Tropical Punch) containing 10 mg THC and between 20 to 25 calories per 12 oz. slim can. 

📥 So far it looks like a primarily online play, but we’re reaching out for more details. 

Oatly has decided to shutter its Singapore production facility in a move aligned with its shift toward an “asset-light supply chain strategy,” that aims to reduce expenses and course correct its cost structure, the company said today in an announcement.

• The Singapore facility is considered a part of the Swedish brand’s Europe & International segment. Its existing production sites in Europe will be used to sub-in supply for the Asian market.
• It will sting before it starts to heal: The company said closing the site will lead to non-cash impairment charges of between $20 to $25 million for Q4 2024 and an additional $25 to $30 million in net cash outflows through 2027. 
• But, proceeds from selling equipment will offset the immediate hit and the move should lead to bigger savings in the long run.

First there was CosMc’s and we figured “sure, why not?” Then came Live Más Café, and we thought “well, alright I guess.” Now, it is apparently Kentucky Fried Chicken (KFC)’s turn to expand with a new restaurant concept, dubbed Saucy. We aren’t sure what to expect any more…

🍗 The first Saucy location will open in Orlando, Fla. on December 20 and will focus on chicken tenders with 11 sauce options and 11 beverages, including teas, freezes and “Refresher” drinks with flavors like Hot Honey Watermelon and Peach-Mango Lemonade. (No, 11 isn’t a strange thing for KFC to spotlight… the number is an ode to the company’s secret seasoning blend featuring 11 spices)

🍹 It’s a curious trend in fast food as legacy brands like McDonalds, Taco Bell and KFC (the latter two both owned by Yum Brands) look to modernize and premiumize their offerings with these experimental brick-and-mortar spots that place a heavy emphasis on beverage. CosMc’s leans into McD’s reputation for a hot coffee seller, while both Saucy and the Live Más Café have tailored their offerings around non-alcoholic refreshment.

👀 There don’t appear to be any major beverage brand partnerships with these concepts yet, at least none that have been publicized, but we’ll be keeping an eye on where things head should these new restaurant expansions continue to flow.

Trucks are always on the streets, so here’s a quick snapshot of the latest beverage distribution news from across the industry:

• Seven Teas is partnering with Power Full Energy Distribution to launch its canned teas into Canada, as well as expanding its business across the U.S.
• SoCal kombucha brewer Better Booch is now launching in Safeway stores in Northern Calif. and Nevada.
• Low-alc spirits brand Quarter Proof is rolling into Total Wine & More stores in Florida.

Being “basic” has long been a theme of Trey Kennedy’s popular standup routine and sketch comedy. He recently introduced the perfect pairing for his humor, Basic Cellars. In this episode, Trey talks about how the upstart wine brand presents itself as both an accessible and premium option and how he attempts to authentically incorporate the brand into his social media content.

Listen to the episode here.