GT’s Kombucha (GT’s Living Foods) is no stranger to a courtroom tussle — recall its multi-year class action battle over mislabeling claims that ended in a settlement — but a Superior Court of California ruling last week threatens an even more serious stain on its reputation.

On Thursday, the Court ruled in favor of a group of 11 plaintiffs alleging a wide range of labor violations at the company during the early to mid-2010s, including failure to pay overtime compensation, failure to provide meal and rest periods, failure to pay wages upon termination and unlawful retaliation. 

The documents paint a portrait of an undocumented, poorly educated and vulnerable workforce of Central American immigrants — on average, employees had received no more than six or seven years of formal Spanish education — that was easily abused and intimidated by company management into working for long hours (sometimes 12 to 14 hours per shift) and under dangerous conditions. The Court found that GT’s failed to accurately record all hours worked by the 11 Plaintiffs, including pay rates, start and end times for work shifts and meal periods, and total wages paid each payroll period. 

One former employee, who alleges he was punished by the company after suing them in 2013, told The Los Angeles Times that working at the GT’s plant was “the worst experience of my life.”

What does this mean for the future of GT’s? At very least, per court orders, they’ll be required to pay out almost half a million dollars in restitution and damages to the plaintiffs, with the largest award coming in at $180,416. There’s also another, as-yet unscheduled phase of the trial coming up which will cover alleged labor code violations affecting the around 3,600 workers who were employed at the plant at some point since 2012. 

As for GT’s founder and namesake GT Dave, Judge William Highberger described his testimony, along with that of COO Ramon Cenak, as demonstrating a “total absence of credibility.” In case that wasn’t clear enough, he apparently told one of Dave’s attorney’s: “I, frankly, found that Mr. Dave lied through his teeth and is not in any way, shape, or form credible.” For his part, Dave responded to those claims in a statement to the Los Angeles Times: “I did my best to speak truthfully, accurately, and sincerely. It is important to recognize that this case is over ten years old. Therefore, it can be difficult to specifically remember every detail, date and event.” 

Check BevNET later today for more coverage.

Say hello to our latest craft beverage canning line: the CB100R continuous motion rotary counter-pressure machine pairs 12-head rotary filling with a 3-spindle rotary seamer for filling speeds of more than 100 CPM. Experience precision filling and the lowest dissolved oxygen levels in the industry! Learn more

The canned tea revolution is here and Seven Teas is capitalizing on it. After slow-building the brand in glass bottles since 2017, the Santa Monica-based brand launched a 7-SKU line of iced teas and lemonades in cans fueling its growth into new regions and distribution channels.

• In January 2022, Seven Teas launched canned varieties of five iced tea flavors (Georgia Peach, Uptown Half & Half, Maui Mango, Rojo Raspberry and Golden Honey) and two lemonades (Southern Strawberry and Classic Roadside)
• Seven Teas maintains its core line of 8 Traditional Teas in glass bottles (White Peach, Wildflower Honey Matcha, Moroccan Green, Spot O’ Honey Earl Grey, Guava Mango Guayusa, Berry Hibiscus Rooibos, Himalayan Rose Tulsi and Ginger Berry Yerba Mate).
• The cans have expanded its DSD network and grown its distribution in all Whole Foods Markets as well as Publix. Additionally, the company has partnered with Raley’s, Fresh Market and Weis among others.
• The company has capitalized on opportunity in RTD tea left when Coke discontinued Honest Tea as well as the rise of interest in the canned format seen with other brands like Weird Tea, Equitea and Space Tea.

Read more about Seven Tea’s mission to “honor tea traditions” across both the country and the world.

It’s been a hot summer for labor activity (and literally) between the ongoing Hollywood strikes and a narrowly avoided UPS workers strike that could have had massive economic ramifications. But on a smaller scale, Twin Cities retail grocery chain Kowalski’s Markets nearly avoided a strike of its own, the SFA News Daily reported Monday.

• Kowalski’s and UFCW Local 663, which represents over 600 Kowalski’s employees across six stores, reached a tentative agreement for a two-year contract, preventing a strike that was otherwise slated to start on August 4.
• The union is now organizing info meetings for members to review the terms of the agreement and a ratification vote will be held next week.
• In a statement, Jacob Stromquist, a produce manager for Kowalski’s Lyndale store, said the union had secured its healthcare plan, “won historic wage increases, pay equity, and secured our retirement.”

In other labor news, UNFI warehouse workers in Connecticut voted to unionize last month, joining with Teamsters Local 493 in Uncasville, Conn.

Korean pear beverage brand Seoul Juice is working to support college athletes with a new Female NIL (name, image and likeness) Fund which will be run by basketball players and social media influencers Hanna and Haley Cavinder, better known as The Cavinder Twins.

• The twins have come on board with Seoul Juice as equity partners and as the brand’s “Head of Partnerships,” overseeing the new fund which will help female college athletes to benefit from their own brand partnerships.
• "Less than 30% of total NIL funding goes to female college athletes and NIL deals have only been around for two years,” Seoul Juice founder Luis Manta told BevNET. “We were extremely disappointed when we heard that statistic and wanted to do something to help change it. We will be the first brand to start a Female NIL focused campaign where we help partner with and support female collegiate athletics.”
• The NCAA began allowing college athletes to benefit from their name, image and likeness in 2021. The Cavinder Twins quickly became among the most notable collegiates to take advantage of the new rules, partnering with brands such as Boost Mobile, the WWE, Gopuff and more.
• Last month, Dwayne Johnson’s ZOA Energy announced its own annual NIL program, called “The Rock’s Warriors,” which brought on seven college athletes to work with the brand in marketing campaigns and social media promotions.

As a startup brand, Seoul Juice has leaned into an athletic positioning, also partnering with Washington Commanders quarterback Sam Howell and pro soccer player Jordan Morris.

If the brand’s rapid market expansion wasn’t fast enough, Liquid Death is feeling the need for speed. The canned water brand is now an official event partner for the Formula 1 Heineken Silver Las Vegas Grand Prix 2023.

• Liquid Death’s still and sparkling waters will be available at all “fan zones” at the upcoming race this November with a trackside presence.
• “Both Formula 1 and Las Vegas Grand Prix, Inc. are devoted to sustainability and the use of only recyclable and compostable materials at our event, so it was a natural fit to partner with a like-minded brand,” said Las Vegas Grand Prix CEO Renee Wilm in a statement.
• For a brand that has a history of trailblazing unusual partnerships (if anyone reading this bought that Travis Barker enema kit please let us know) but Formula 1 is a tried and true event for beverage marketing. For instance, Red Bull owns and operates an entire F1 team and there is, of course, the beer brand with naming rights to the event itself.

2023 is a slower start for the maker of Jose Cuervo, the world’s largest producer of tequila.

• Becle, or Casa Cuervo, recorded a sales decline of 2.4% in its quarterly earnings presentation last Friday
• Net sales of the company’s flagship brand Jose Cuervo increased 1.6%
• Brands labeled other tequilas, which includes 1800 Tequila, the “fastest growing tequila” according to Brand Finance, saw sales increase 0.8% 
• Consumers are trading in their shots for sips these days: premium-plus brands are driving the agave category, and gaining traction at bars and restaurants at the expense of value and mid-tier segments.

Read the full story on BevNET

Today, August 1 at 1 PM ET, join us for our first Community Call of the month with Sara Brooks, co-founder of Goldilocks and founder and CEO of Covet PR. Registration is free! This month, we’re introducing an added benefit for our Insiders. Join us for two Insider-only calls where we’ll dive into financial insights with a CPG investor and talk with Thrive Market about how the retailer curates brand partners. As an Insider, simply register in advance and mark your calendar!