• 🆕 Spirits Execs Launch DioniLife
• 💰 Diamond Creek Water Raises for M&A
• 💻 Flaviar Acquires Bev-Alc Provider
• 🆕 Distribution: Töst Goes To Vegas
• 💻 eComm News Alert
• 🍄 Four Sigmatic Had Its Doubters. Now Millions Are Drinking Its Mushrooms.

Consumers want more from energy drinks—hydration, focus, mood enhancement and muscle support. Manufacturers are responding with functional ingredients like ashwagandha, BCAAs, and natural caffeine to meet the growing demand for healthier options. Learn more

The U.S. Securities and Exchange Commission (SEC) announced this morning that it has charged Keurig Dr Pepper (KDP) with making inaccurate statements about the recyclability of K-Cups after finding that two of the largest recycling companies in the country had “significant concerns” that those tiny plastic pods could not be efficiently processed.

The heart of the SEC’s claim stems from KDP’s annual reports for 2019 and 2020, where the company claimed it had “validate[d] that [K-Cup pods] can be effectively recycled,” but failed to disclose that major recycling companies voiced concerns “regarding the commercial feasibility of curbside recycling” for the pods and refused to accept them for processing.

To be clear, the SEC is slapping KDP with a fine for inaccurate filings – not for anything related to sustainability issues – and KDP has agreed to pay a $1.5 million civil penalty to settle the charge (for context, the company reported $14.8 billion in net sales last year).

But the allegation once again raises the sustainability question for the company’s signature coffee and tea format. If nothing else, it recalls comments from one K-Cup creator, John Sylvan, back in 2015 where he claims to regret his invention and laments the environmental waste it has created.

Last month, a consumer poll of 1,231 American voters by Data for Progress and the Center for Climate Integrity found that a majority want the plastics and fossil fuels industries held responsible for misleading the public on what products are actually recyclable. About 70% would support a lawsuit against these industries for deceiving consumers.

"Regardless of your politics, no one is really OK with a corporation lying to consumers," Davis Allen, a CCI researcher, said in a statement.

In 2023, KDP reported that coffee pod revenue fell 3.6% as shipments declined 5.1%. Citing Circana data, the company said that U.S. retail dollar consumption of its official K-Cups were down 4.5%, although sales fared better in untracked channels. Brewer sales also fell 10.3% from 2022 to 2023.

Even as it leans more into putting forward premium coffee brands into its pods – most recently adding Black Rifle Coffee to the mix – the company’s K-Cup sales have continued to decline this year, down 2.1% to $1 billion for Q2 2024. In comparison, KDP’s U.S. liquid beverage sales were up 3.3% to $2.4 billion in the same period, and the business has begun expanding its energy drink offerings partnering with, well, Black Rifle to manage the DSD rollout of its new RTD energy line in Q4.

Go Deeper: KDP and Black Rifle Unite

Spirits industry innovators from Diageo, Stoli Group, Guinness and Heineken have come together to launch a new non-alcoholic beverage company DioniLife in the U.S. and U.K. The company will innovate internally and grow through M&A. It has already made its first acquisition: NA beer brand Mash Gang. 

🥃 The team includes former Stoli Group Global CEO Damian McKinney and Diageo's former head of global innovation Steve Wilson, among others. 

🍺 Mash Gang launched in the U.K. in 2020 by head brewer Jordan Childs; the company has developed over 200 NA beers but its distribution has remained limited and new market expansion will be a primary focus with its new ownership. 

🗣️  "We are using the lessons we've learned from decades of brand-building experience to contribute to the betterment of the world, both through spreading our company philosophy and improving consumers' beverage experience," said McKinney.

Accredited Solutions, the parent company of Diamond Creek Water, announced this week it has filed a Regulation A registration statement to raise a $3.6 million offering that will fuel its acquisition-driven growth plan.

⏩ The capital raised will also be used to complement organic growth initiatives and redeem certain outstanding convertible securities at a lower cost of capital, per the announcement. 

💭 “This capital will allow us to execute on our acquisition strategy while strengthening our balance sheet and delivering value to our shareholders. We are confident that the future holds great potential for Accredited Solutions,” said Eduardo Brito, CEO of Accredited Solutions, in a press release. 

Whether you are an emerging brand scaling your operations or an established business looking for an edge in the market, BevSource has the resources, relationships and expertise to help. Stop by our table at BevNET Live to learn how. Learn more

Alcohol eCommerce fulfillment business Speakeasy Co. has been acquired in a cash and stock deal by Flaviar to bolster the latter’s B2B business. The deal will fold Speakeasy into the Flaviar Checkout platform bringing more value to its digital advertising services.

🤝 Over the past two years, Flaviar has acquired Wine-Searcher and Barcart (now Flaviar Checkout) in addition to partnering with bev-alc distributor RNDC on Shopify.

🚚 The deal will bring more value to Flaviar including faster delivery, lower shipping costs and added experiential services to clients. Speakeasy’s team will stay on to run the day-to-day operations.

🥃 Founded in 2015, Speakeasy Co. launched with a focus on craft spirits brands and has transformed into a consulting and agency working with larger clients like WhistlePig and Constellation.

🥥 100 Coconuts founder Gregory Lowe II announced on LinkedIn that his canned coconut water brand had landed a partnership with The Walt Disney Company. Details remain limited but it appears the partnership could increase 100 Coconuts’ reach in Florida where it is already the sponsor of the Inter Miami FC soccer team.

🥂 The city of sin is getting the alcohol-free treatment with sparkling NA beverage brand Töst announcing it was now available at MGM Resorts’ T-Mobile Arena in Las Vegas. The drink maker will be offering both its glass and in 8.45 oz. aluminum cans at the event center.

The online grocery sector continues to advance and bring upgrades to how it services its customers. Here’s a look at recent moves made by Hungryroot, Thrive Market and Instacart today:

🛒 Grocery delivery service Hungryroot has introduced SmartCart, an AI system designed to help consumers live more healthily. The service integrates 10 machine learning models that find the best food and supplements for consumers based on their goals, lifestyles and budgets. Hungryroot claims that 90% of SmartCart customers reported progress in their health goals since joining the service. 

🤝 With more than 1.5 million members signed on, Thrive Market announced a partnership with Instacart today that will leverage Instacart’s Carrot Ads to create a more personalized member experience. Brand partners will now be able to target specific campaigns to consumers shopping on Thrive Market to drive further growth.

Tero Isokauppila, the founder and CEO of Four Sigmatic, a pioneering brand of mushroom-infused coffee, tea and supplements, talks about navigating an ahead-of-its-time trend, how he overcame “making every mistake a founder can make,” and how the company aligns category insights and innovation.

Listen to the episode now.