• 🆕 Nespresso Jumps Into RTD Coffee
• 🏛️ An Oregon Senator's Cannabis Bill
• ⚡ Chevrolet, Erewhon Drop EV-Drink
• 🔄 Loop Adds Offset Capability
• 🥪 Decoding David & Unpacking Lunchly

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Is gut health soda doing the opposite of what it claims? That’s the latest allegation in a new class action lawsuit filed against Poppi this week, which claims that the added sugars in its prebiotic CSDs are more harmful to overall health than the benefits of its functional ingredients.

The lawsuit, filed in California, takes aim at a number of claims made by Poppi in its on- and offline marketing and packaging, including phrases on cans and boxes like “gut health never tasted this good” and “for a healthy gut.” It argues these claims are misleading due to the drinks “being full of free and added sugar,” Law360 reported yesterday.

Citing a violation of California’s Unfair Competition, False Advertising and Consumer Legal Remedies Act laws, the complaint also alleges that the low amount of fiber in Poppi’s sodas limit any health benefits, while the sugars can actually harm immunity and the balance of good bacteria in the digestive system.

"Poppi is a sugar-sweetened beverage, containing up to 100% of its calories from free and added sugar, and there is a vast body of scientific evidence demonstrating that consuming sugar-sweetened beverages harms rather than supports overall health — and digestive health in particular," the complaint states.

This is the second class action this year alleging that Poppi’s drinks aren’t as good for the gut as they claim to be. In May, a separate lawsuit was filed in California alleging that the agave inulin Poppi uses as its primary source of prebiotic fiber was far too low to have any meaningful impact on gut health.

That complaint argued that a “consumer would need to drink more than four Poppi sodas daily for 21 consecutive days” to have any effect on gut health, and similarly suggested that the effects of high-sugar intake would outweigh the benefit.

Of course, it’s worth noting that Poppi is still considered a relatively low sugar product – at least in comparison to top-end full calorie soda brands like Coke and Pepsi. Poppi’s drinks contain between 3 to 5 grams of sugar per 12 oz. can, depending on the flavor, whereas a classic Coca-Cola has 39 grams of added sugar.

These class actions come as Poppi’s popularity is at an all-time high. According to NielsenIQ, the brand grew dollar sales 171.5% to over $273.4 million in U.S. retail in the 52-week period ending September 7. 

While the health messaging may now have placed the brand under stark scrutiny, Poppi has also been considering moving away from its gut health focus in recent months. At the 2024 Beverage Forum in May, co-founder Allison Ellsworth said the company had found that most consumers simply drink Poppi for its flavor, not for functional benefits, and suggested the brand would be looking to lean away from its prebiotic preoccupation in the future.

Catch Up Quick: Lawsuit Takes Aim At Poppi’s Gut Health Claims.

Nespresso USA today announced the limited-time launch of its first canned coffee product, Master Origins Colombia, which utilizes its recently launched honey line Bloom as the drink’s sweetener. The product is part of a pilot program from the Nestlé-owned coffee giant and will be sold in four-packs of 7.6 fl. oz. cans.

☕ Nespresso is leaning into consumers’ growing preference for on-the-go cold coffee which has seen a number of new celebrity-backed entrants into the category as well as an expansion from incumbent craft coffee makers.

🧊 Cold coffee consumption increased 8% between late 2022 and October 2023 with younger consumers driving that growth, according to a survey by the World Coffee Portal. Convenience is key, and has helped drive the RTD coffee market up to $5.45 billion in total sales in 2024 and is expected to reach $7.23 billion by 2030, according to Mordor Intelligence.

💬 “This RTD sits at the intersection of functionality and sustainability as a byproduct of our commitment to regenerative agriculture efforts to protect the future of coffee,” said Nespresso North America CEO Alfonso Gonzalez Loeschen.

Legislation and regulation in the cannabis industry is flying around in a state-by-state manner but one U.S. senator is attempting to address some of the industry’s concerns head-on. 

🛡️ Oregon Senator Ronald Wyden introduced the Cannabinoid Safety and Regulation Act yesterday in an effort “to establish national standards to protect public health and safety and keep cannabis products out of the hands of children.” The proposed legislation would put regulation in the hands of the U.S. Food and Drug Administration.

❌ The bill seeks to establish a national age restriction, prohibiting those under 21 from purchasing hemp-derived cannabis products, while also requiring that all hemp-derived products are tested for and manufactured with safety processes in places.

🍬 🍬 The legislative action would also implement labeling protocols that would restrict “fun cartoons and glitzy candy wrapper packaging on cannabis products meant for adults,” Wyden said in a statement.

👍 Unlike the emergency action put into effect this week in California or in New Jersey two weeks ago, this federal bill has been endorsed by hemp industry groups like the National Industrial Hemp Council, the National Cannabis Industry Association and the U.S. Hemp Roundtable.

Hailey Bieber has nothing on Chevrolet (now that’s something we never thought we’d write). The car company is coming for Bieber’s smoothie crown after landing a limited time collaboration with L.A. cult grocer Erewhon’s Tonic Bar.

💙 Aptly named the Equinox EV: Electric Juice, the drink is crafted with Mikuna’s chocho plant-based protein powder and blue spirulina. According to Chevrolet, the tonic’s organic ingredients are designed “to energize and recharge.” 

👀 The Equinox EV: Electric Juice will be exclusively available at Erewhon Studio City in L.A. on Sept. 27. Additionally, Chevrolet will offer test drives of the Equinox EV at the location from 7 a.m. to 7 p.m. 

🚗 In other car-related food and beverage news, Volkswagen of America, Inc. announced that VW part number 00010 ZDK-259-101 (VW Gewürz Ketchup Brand) will be available in the U.S. for a limited time. The ketchup bottle launch comes as the brand celebrates its 75th stateside anniversary.  

Returns and reverse logistics platform Loop announced today the launch of Offset, a pre-purchase returns solution designed to help retailers offset the high costs of returns and reverse logistics. 

💵 With Offset, retailers can give their customers the option to pay a small fee upfront during checkout in exchange for free returns later. According to Loop, over 60% of merchants currently charge a return fee to cover the costs of managing returns. 

✌️ Merchants can choose between two Offset models based on their needs: Offset Free and Offset Flex. With the former, Loop covers all return and shipping costs and, in exchange, collects return fees from shoppers through Offset. The latter allows retailers to personalize the experience for different customer segments, regions and return outcomes. 

📈 According to Loop, merchants who tested Offset in beta saw a nearly 10% increase in net order values by giving shoppers the assurance of a free return, without increasing overall return rates. 

Go Deeper: As Circular Packaging Systems Evolve, Are Sustainable Solutions Getting Closer?

This week the podcast team discusses the debut of two new CPG brands from Peter Rahal, the decline of clean-label prioritization among fitness-focused consumers, and the message sent by PRIME and Feastables with their new joint venture Lunchly.

💪 The CPG Week hosts ponder the mystery of Hormbles Chormbles (see above for some clarity) before discussing how RXBAR founder Peter Rahal’s other new brand David is being applauded by some and fielding complaints by others.

🧃 The group moves on to discuss Lunchly, the co-branded kids lunch kits from PRIME and Feastables, that is using the clout of its influencer founders to market to children.

Listen to the episode now.

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