• 🫧 Levia Co-founder's New Gig
• 🎣 Culture Pop and Ryl Reel It In 
• ▶️ Spirit Market Access Update
• 🍵 The Problem with Poda?
• 🥃 Devil's River Distillery Auction
• 💰 60 Startups. $7 Million. How Ignite20 Is Funding The Future Of CPG.

Consumers are eager for beverages with little to no added sugar… but not all sweeteners are considered equal. Cargill beverage experts offer targeted insights and solutions, including understanding consumer expectations, which sweeteners are finding favor, and Cargill's approach to sugar reduction. Learn more

Zero-sugar soda brand No Cap! is seeking an edge in the hyper-competitive new world of “modern soda,” and taking tips from the energy drink set after signing an exclusive licensing agreement with family-owned candy maker Albanese Confectionary Group.

Expect to see Albanese’s popular gummy flavors merged with SoCal-based No Cap!’s modern soda selection.

Launched last year by former Bang and Congo Brands sales executive Sam Wilson and his son Vinny, the three-year licensing agreement grants No Cap! exclusive rights to use Albanese’s gummy flavors in better-for-you soda. The first two limited-time offerings will arrive in July. 

The licensed candy trend has already helped propel C4 and Ghost to major success. The likes of Sparkling Ice and Victor Allen’s have also dabbled in branded SKUs within flavored sparkling water and coffee, respectively. But it’s yet to be tested in “modern soda.” 

The two parties aligned on their desire to appeal to younger consumers, said the Wilsons, and will collaborate on merchandising opportunities in retailers like specialty discount chain Five Below.  

The Albanese deal builds on a series of tweaks the company has made to better align with its core proposition and target audience of “three to 30.” That includes dropping fiber (while keeping callouts to immunity benefits and postbiotics), moving from a 12 oz. to a 16 oz. can, and steering sponsorships towards youth athletics and action sports. 

Those steps have helped prepare No Cap for the current distribution landscape, which is flush with young, fresh brands eager to stake a claim to DSDs with a Poppi-sized hole in their portfolios after the category co-leader made its $1.95 billion exit to PepsiCo last month.

What Wilson Said: “We like to work fast, and we were aspirational about the licensing deal getting done by summer, but the minute we sign that contract, that just levels us up again.”

Read the full story on BevNET for more details on how the Albanese partnership will shape No Cap’s strategy.

Troy Brosnan secured early success in THC-infused beverages with Levia Seltzer. Now, he’s bringing that expertise to Rhode Island-based cannabis and hemp processor Monarch Emulsions as the CEO of new division Monarch Beverage.

💡 The new, vertically-integrated beverage development and production house will specialize in infused and non-alcoholic drinks. 

🏭 Brosnan’s beverage experience is part of the suite of services Monarch Beverage offers, alongside low-MOQ co-packing and in-house brand development. 

📊 Before the hemp-infused drink craze really took off back in 2021, Levia generated enough momentum to achieve a $60 million exit via multistate cannabis operator Ayr Wellness after just nine months on the market. 

🗣️ What Brosnan Said: “With such a massive boom in hemp-infused, non-alc, and functional beverages, we now have a collective venture that can provide unparalleled, cost-effective solutions to new, emerging, and established legacy brands.”

Read the full story on BevNET.

Double the funds, double the fun. On Monday, The Ryl Company and Culture Pop both announced the close of their own $15 million funding rounds.

🍀 Ryl founder and CEO Blodin Ukella told BevNET the canned tea brand is preparing to 4x its national footprint this year, reaching over 40,000 doors. Ryl’s celeb backer Morgan Wallen has also played a key role in opening doors for event activations.

Check out the full story on BevNET for all of the details.

Meanwhile, Culture Pop CEO Tom First said the brand is working to close the gap between itself and BFY soda leaders Poppi and Olipop.

🗣️ What First Said: “We’ve experienced almost 100% growth every single year and we expect to do that again this year,” First said.

Read more about Culture Pop’s raise on BevNET.

👉 Key Takeaway: While investment dollars may be hard to come by in today’s climate, money is still moving for challenger brands with clear paths to scale up and move into mainstream channels.

Work with the team behind hundreds of successful beverage launches. From formulation to production, BevSource provides the strategy, insights and execution you need to move faster, avoid costly missteps and scale with confidence. Let us turn proven know-how into first-time-right execution for you. Learn more

It’s one step forward, one step back for spirits suppliers looking to open up new channels. 

In Texas, another attempt to sell spirits-based ready-to-drink cocktails (RTDs) in grocery and convenience stores is pushing its way through the legislature, with a hearing conducted in a state Senate committee on Monday. 

• If passed, spirits RTDs under 17% ABV could be on shelves in time for the Texas football season.

Meanwhile in Colorado, a new liquor law has put a stop to spirits sales in future grocery and big-box stores. 

• The law came in response to the expansion of wine and beer sales in larger channels hurting independent liquor stores – now the number of grocery stores able to sell liquor in the state will remain capped at 36.

Go Deeper: Industry Battles Tariffs Uncertainty, Anti-Alcohol Trends at DISCUS.

Startup matcha paste brand Poda is starting off under fire. In a Kickstarter pitch video the founder declared traditional tools for preparing Japanese matcha a lot of “crap” and claimed “most matcha is a scam,” leaving consumers feeling burnt rather than inspired to buy in. 

🟢 Poda is a line of matcha pastes intended to be a convenient, squeezable and smoother alternative to traditional powdered matcha. So far this all sounds fine, right?

😡 Well, founder Mujtaba Waseem’s comments upset a lot of people, particularly those of Japanese descent who took offense to the insults against historical matcha preparation and accused Waseem of cultural appropriation.

👎 The brand has since replaced the video, though the controversy has led to some negative press and poor reviews.

Catch Up On A Similar Case: Simu Liu Comments On ‘Bobba’ Cultural Appropriation Controversy.

The property of a distillery in San Antonio, Texas is up for auction. Devils River Distillery will be sold for parts with virtual bidding paddles in the air on May 5.

• The auction is being held by LSD Lending LLC to repay the debts of the distiller, using its personal property as collateral including anything from machinery to barrels.
• The distillery relocated from Dallas in 2018 to San Antonio, opening a 16,000-square-foot-facility a few years later. 

🚚 Known for its whiskey, Devils River was the first nationally-distributed brand to call downtown San Antonio home. There's no mention of a shut down on the distillery's socials but as independent producers are struggling with limited market access and softer sales, the rate of closures of craft distilleries has accelerated.

Ignite20 isn’t just cutting checks. The new $7 million venture capital fund and hybrid accelerator is lighting a fire under the next wave of CPG innovators. Gabriela Morales, Ignite20’s co-founder and managing director, talks about how the fund is rethinking early-stage investing. 

Listen to the episode here. You can also tune in on Spotify or Apple Podcasts.