Also, Deion Sanders gets energized with ownership stake in Redcon1͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetFebruary 07, 2024
DAILY BRIEFING
Today's news & insights for the beverage industry.

In this issue of Daily Briefing

  • 🔴 Coke’s Splashy Event for Spicy New Products
  • 🔔 BellRing: Premier Protein Proves Potent in Q1
  • 🚔 Bev Founder Arrested In Multi-Million Dollar Fraud Scheme
  • 🗺️ New Hope Shares Newtopia Now Details After Move To Denver
  • 🏊‍♂️ Diageo Dives Further into RTS/RTD

📰 Today's Top Story

🪞 Brad's Brand Identity Crisis

🪞 Brad's Brand Identity Crisis

I started covering the industry seven years ago, during an interesting shift: social media had entirely upended traditional marketing rules and more brands than ever were launching by the day. 

With that influx has come a lot of noise. But I’ve always liked noise, particularly loud, fast music and I’ll take the thrill of a mosh pit at a punk show over a big stadium pop concert any day. So it should come as no surprise that, back in 2019, I instantly took an interest in Liquid Death

🛹 Liquid Death spoke a language I was fluent in – horror movies, skate culture, hardcore punk. And while it faced a lot of skeptics within the beverage industry, I knew there were a lot of people out there who thought like I did. After all, the successes of the Ramones, Jordan Peele, Tony Hawk’s Pro Skater and Adult Swim were not all random flukes.

But I don’t know that the key to success is to play “me too” and make Slasher Juice. Rather, I’m seeing a lot of the same qualities that have worked for Liquid Death in completely different kinds of brands, ones that aren’t necessarily speaking personally to me, but are speaking, with personality, to some other version of me, or you, or another real person. Ghost and G Fuel have immersed themselves with gamers, Barcode and G.O.A.T. Fuel are rising from within the world of pro sports. 

👏 “Authenticity” has to be more than a buzzword. Strong brands will frequently reflect the entrepreneur with all their idiosyncrasies. Like a good piece of art, it’s the quirks that make something stand out. The first time I talked to Liquid Death CEO Mike Cessario I joked they could be the official water of the band Pig Destroyer. He told me they were a favorite and was shocked I knew them. That, to me, proved Liquid Death walked the walk.

I even look at the next gen of AAPI-led brands like Omsom or Sanzo who are putting their heritage and cultural identities at the forefront of their message – I may not celebrate Tết, but I feel like Sang’s Instagram videos are welcoming me to join them in their traditions.

☮️ For the brands that grow and cross over, we’ll often forget they were ever considered niche. Ben & Jerry’s was born from the ashes of the hippies, but almost 30 years after his death we’re still buying ice cream named for Jerry Garcia.

At BevNET Live last winter, Weird Tea co-founder and CEO Jason May offered a word of advice that I loved. Sure, go to Erewhon and see what other brands are doing, but don’t just copy them. Go to a museum and look at art, go to the beach, bring something from outside the world of CPG into your brand and that will help make it unique. That’s something all of the brands I’ve just mentioned have done.

Most people have a sense for when they’re being sold something and know if you’re earnest. Consumers are not horses who need to be brought to water in hope that they’ll drink, they’re human beings looking to connect with something meaningful to them. I love learning how other people see the world, so share something meaningful to you.

I’ve never started a company or been on a marketing team, and I could be clouded by my own taste. I, for one, love the idea of naming a spirits company after a Walter Benjamin essay, but I’ll confess that one might be very niche.

But remember, it’s always a risk. It may not work. There’s plenty of companies who have done exactly what I just described and failed. But the ones that stick can leave a big impact.

Do you agree? Is there something to be said for the brands that keep it tried and true? Let me know, reach out anytime at bavery@bevnet.com.

 

👉🏼 What You Need to Know 👈🏼

😎 Redcon1 Goes “Prime Time” With Deion Sanders

😎 Redcon1 Goes “Prime Time” With Deion Sanders

Whether you know him as “Neon Deion,” “Coach Prime” or just Deion Sanders, the football icon has entered the energy category with an undisclosed minority investment in sports nutrition company Redcon1, a move that the brand is expecting to help expand the brands’ footprint in convenience and grocery retail channels.

🥤 Along with bringing awareness to Redcon1, the company is aiming to use Sanders’ clout to grow its drinks business with a new energy flavor called “PrimeTime Punch” launching soon while also building new partnerships for its other beverages: a protein shake and pre-workout product.

💥 The self-proclaimed “fastest growing sports nutrition brand” recently hired former Bang Energy COO Gene Bukovi as its chief growth and operations officer to help build out its beverage portfolio.

🪖 Based in Boca Raton, Florida, Redcon1 was founded in 2016 and aligns itself with the armed forces with nearly all of its branding tied to military jargon. 

Read the full story on BevNET

 

🔴 Coke’s Splashy Event for Spicy New Products

The Coca-Cola Company announced its latest permanent addition to its flagship Coke line: Coca-Cola Spiced, which features raspberry and “spiced” flavors.

🛒 The new SKU is rolling out on Feb. 19 in original and Zero Sugar varieties in a variety of formats including 12 oz. sleek cans and 20 oz. bottles, as well as multipacks.

🥹 As well, Coke unveiled the latest LTO for its Coca-Cola Creations line: Happy Tears. The zero sugar cola will be available in a limited edition “hype kit” containing two 12 oz. cans and a silvery can design featuring an embossed “drop of joy.” The offering will be available for purchase exclusively through TikTok in the U.S. beginning Feb. 17.

🗽 The new flavor announcements were made during Coke’s “Real Magic Uncapped” event in New York City yesterday. During the event, a panel of Coke leaders discussed the company’s evolving strategy around innovation and marketing, and noted that it has streamlined its R&D process in recent years with new products now going from concept to launch in as little as two months, compared to the 12-18 month development periods of the past.

 

🔔 BellRing: Premier Protein Proves Potent in Q1

🔔 BellRing: Premier Protein Proves Potent in Q1

BellRing Brands – the producer of Premier Protein and Dymatize brands – this week reported Q1 2024 net sales of $430.4 million, up 18.7% year-over-year, as it continues to grow and diversify its portfolio of protein shakes and powder supplements.

💪🏼 Operating profit for the quarter ended December 31 was $73 million and net earnings were $43.9 million. Premier Protein saw net sales climb 18.9%, fueled by a 19.5% increase in volume and a -0.6% decrease in price/mix.

🥤 RTD sales led the convenient nutrition category, up 16%. Increased supply and distribution expansion lifted RTD growth in Q1, while growth in ready-to-mix remained healthy despite lapping “significant” price increases, according to the brand. 

For more on how Bellring’s business is diversifying by channel and an update on the company’s supply chain issues, read the full recap on BevNET.

 

🚔 Bev Founder Arrested In Multi-Million Dollar Fraud Scheme

The founder and CEO of She Beverage Co. Inc, Lupe Louise Rose, was arrested on Monday and charged with 38 counts of securities fraud and one count of making false statements to federal investigators. 

😡 The U.S. Attorney's Office for the Central District of California alleges Rose defrauded more than 1,000 investors out of more than $13.5 million. Rose first came under fire from the SEC, alongside the company’s CFO Sonja Shelby and COO Katherine Dirden, back in 2021. 

💧 The prosecution claims Rose misled investors about the company’s revenue, intentions for utilizing investor funds and falsely represented the products themselves, including claiming its bottled water formula could cure cancer.

💰 Rose pleaded not guilty and was released on a $20,000 bond. The trial is set for March 19.

 

🗺️ New Hope Shares Newtopia Now Details After Move To Denver

Natural Products Expo East’s replacement has already been relocated. The new trade event, Newtopia Now, was originally scheduled for an early August debut in Savannah, Ga. but has since been moved to the Colorado Convention Center in Denver, and pushed out to run from August 25 to 28.

🏘️ Event organizers shared early details about two of the new event’s “neighborhoods” concepts, Thrive and Regenerate, naming a handful of brands featured in each segment on LinkedIn earlier this week.

🆕 Thrive will be centered around new ideas and innovations “shaping human health;” supporting companies include LiquidIV, Freestyle Snacks and UNFI, among others.

🌱 Regenerate (you guessed it) is for “eco-friendly CPG champions and advocates of regenerative agriculture and community sustainability;” Partners include Flavorganics, Non-GMO Project and Solely Inc., among others.

 

🏊‍♂️ Diageo Dives Further into RTS/RTD

Diageo has added another cocktail to its lineup of ready-to-serve classics and a new ready-to-drink from flagship vodka Smirnoff, joining other canned cocktail releases from major BevAlc players this month.

🍸 The Astral Margarita now joins the Cocktail Collection, a premium lineup of brand extensions which launched last October and includes two Ketel One and Bulleit cocktails, and the Tanqueray Negroni. Cocktails come in two large sized formats: 350ml (SRP: $13.99) and 750ml (SRP: $25.99), serving four and eight cocktails per glass bottle.

📶 Those price points put them in the higher tiers of the RTS category, which have been driving growth for a category that reached new highs in 2020. While RTS as a whole is down 1.5% in off-premise channels, super premium is up 140% in the last 52 weeks ending Jan 27 according to NIQ data.

✈️ The Astral was part of Diageo’s acquisition of Davos Brands (like Aviation gin) in 2020 and was repackaged and launched in the U.S. as a super premium tequila in 2022.

ALSO: Yesterday Diageo launched the Smirnoff SMASH Vodka Soda, the first-ever RTD vodka soda from the brand arriving at 4.5% ABV in four flavors and sold in a variety packs, including the 12-pack at SRP $17.99 or $8.99 per 6-pack. As the official vodka of the Super Bowl, the new RTD will be debuting in Las Vegas but in a sponsored pickleball tournament before the big (actual) game.

Diageo isn't the only spirits maker attempting to cash in on RTS. Pernod-Ricard dropped two new RTS product lines to complement its Vodka Cran RTD partnership with Ocean Spray launched in January. Read the full story on BevNET

 

📞 BevNET & Nosh Community Calls This February

📞 BevNET & Nosh Community Calls This February

This month, explore Ghia's smart out-of-home strategy that conquered the non-alcoholic market, The Fresh Market, Goodles, and Pocket’s Chocolates share tips for attracting buyers and decision-makers at Expo West, get updates on Expo West with the event team, and Gerry Khermouch and Ken Sadowsky share insights on how to optimize resources during fundraising challenges. Read the story.

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