• 🌡️ Florida Court Favors Flo Rida
• 📗 ASMW Added To The Dictionary
• 🚛 AMCON Picks Up Idaho Distributor
• 💰 One Bio Nabs $27M To Scale Fiber

The launch of another prebiotic soda isn’t such big news these days. But when Coca-Cola and Pepsi decide to weigh in – and do not (as has been much rumored) open up their checkbooks to do so – it’s kind of a big deal. We’re still awaiting further details on these, but in the meantime, we’ve got some thoughts. 

Brands That Pop. We’re not sure if anyone has a Poppi or OLIPOP tattoo, but we’re definitely sure nobody has one of the Simply or Soulboost logo. In both cases, the decision to deploy a pair of middling sub brands – rather than two of the biggest marks on the planet, or a completely new brand – as the launchpad for prebiotic soda suggests this is more of a shot in the dark than a full-blown assault on the category.

For its part, Simply has provided Coke with room to roll the dice on (for them) experimental projects, like Simply Spiked. And Soulboost – having barely existed in its prior guise as a functional sparkling water – is, for better or worse, like a new brand for Pepsi. Yet even with the soda giants’ vast resources, it’s hard to envision Simply or Soulboost taking away from Poppi and OLIPOP’s fans, many of whom have established deeper rooted connections with the brand via their social media presence and splashy activations at events; even a Super Bowl commercial is old hat. And that’s not even mentioning the independents whose grassroots support are often even more hard-won and loyal.

It’s Soda, Remember? The innovation pipeline can be slow at the big strategics, which makes us think maybe Coke and Pepsi’s prebiotic pops got stuck in development hell for a bit too long. Why? While there’s nothing wrong with juice-sweetened soda (see Culture Pop and Evolution Fresh), the initial fruit-forward flavors for both Simply and Soulboost arrive just as consumers seem to have zeroed-in on what they really want from their “modern soda”: something that tastes like “soda.”

That suggests gut-healthy claims – like those OLIPOP spent considerable energy funding research on – are less important than giving drinkers a guilt-free way to have their familiar favorites; over the past year, both Poppi and OLIPOP have enjoyed success with cola, lemon-lime, root beer, cream soda and other classic CSDs, a tactic with which LIVE Soda and NO CAP! are also embracing. Against that backdrop, it’s a bit curious to Coke and Pepsi go with fruit flavors, to start with anyway.

Distro Domination: All this talk of branding and flavor may be quickly rendered moot once the Coke and Pepsi distribution machines start cranking up to full speed. The only question is how much and how soon they release the throttle.

From what we know, both Simply and Soulboost will receive a limited release at some regional chains before deciding what comes next. Walmart has notably made a commitment to the “modern soda” set with a dedicated shelf in over 4,300 locations – would they welcome Coke and Pepsi to the mix as well? 

• The retailer’s influence isn’t to be diminished: they got Poppi to go national this spring (retaining Big Geyser in NYC) in exchange for a bigger store footprint. 
• Yet pressure from the top will likely be exerted down the chain, as smaller brands get squeezed within a consolidated competitive field, conditions that may also disincentivize distributors to help seed new products.

What questions do you have about Coca-Cola and Pepsi entering the modern soda set? Email us at news@bevnet.com

In a Low blow for Celsius, an appeals court upheld the bulk of rapper Flo Rida’s breach of contract win against the energy drink brand. However, the company has reason for Good Feeling as the court moved to reduce the amount owed to the three-time Grammy nominee.

🍊 Flo Rida, a.k.a Tramar Dillard, was initially awarded over $82.6 million in January 2023 after a jury found that Celsius failed to provide him with hundreds of thousands of shares in company stock which he was promised when initially agreeing to endorse the brand in 2014, as well as additional royalties on a sparkling orange flavor launched in 2018.

📈 While the Florida appeals court last week agreed that yes, Celsius failed to uphold their end of the bargain, it also found that the jury was more than a bit overzealous when it used the company’s stock value as of January 13, 2023 – the last trial day that evidence was presented – when determining the award.

🌫️ It’s not clear how much Celsius will actually have to pay out now, but Bloomberg Law News suggested it could be as much as a 50% discount for the company. That’s still around $41 million, not exactly pocket change, but certainly better than the alternative.

Go Deeper: Celsius Ordered To Pay Rapper FloRida Nearly $83M

American whiskey makers had something to celebrate this weekend: the U.S. Tax and Trade Bureau (TTB) released an official definition of American single malt whiskey (ASMW) on Friday, the first new spirit category to be defined in several years. 

🥃 After two years of waiting, the final rule confirms the new American Single Malt Whiskey category, a move that will help protect and promote the growing category, according to the American Single Malt Commission (ASMWC) and the Distilled Spirits Council of the United States (DISCUS). 

💬 “This is a landmark ruling from the TTB that further cements our standing on the global stage in whiskey,” said ASMWC president Steve Hawley. 

🌎 With Scotland historically dominating single malts, Americans were late to hop on the bandwagon. Now, with a recognized standard, producers are eyeing global and domestic opportunities by peeling single malt Scotch consumers away with a similar palate and premium experience. Major brands have already begun to offer the style, using it to broaden their portfolios in the growing higher end American whiskey category.

📑 The final rule is scheduled to be published in the Federal Register on December 18, and effective January 19.

Go Deeper: Within ‘Intimidating’ Category, American Single Malt Whiskey Brands Seek Education & Evolution

Midwestern distributor AMCON Distributing Company is bulking up its portfolio before year’s end with the acquisition of Idaho-based tobacco and grocery wholesaler Arrowrock Supply, buying the business from its parent company Davis-Jones Inc.

• AMCON is based in Omaha, Nebraska and also owns distributors Team Sledd, LLC in West Virginia and Henry’s Foods, Inc. in Minnesota. The combined business focuses on all manner of food and beverage distribution with a footprint in 34 states. 
• Arrowrock will continue to service its existing customers out of its Boise distribution center, which will become the 14th facility in AMCON’s network upon the closing of the deal.

Sacramento, Calif.-based biotechnology company One Bio has secured a $27 million Series A funding round led by Alpha Edison with new investment from Leaps by Bayer, Mitsui E12, Morado, ReMY, DSM-Ferminich, and Better. The food tech company aims to be an ingredient provider of anti-inflammatory, short-chain fibers.

📋 One Bio has built a proprietary catalog of plant fiber compositions called a Glycopedia used to tailor different bioactive fibers for various health outcomes.

🧁 The company cites its fibers as an “offramp to reduce the population’s reliance on GLP-1s to treat chronic metabolic diseases” and reduce the use of sugar in food and beverage.