• KDP Buys Mix Maker Dyla
• Reyes Adds Four Roses Bourbon, Japanese Imports
• Badger Prepares For Canned Innovation
• RTD Cocktail Yoju Nets $1.4M
• Pricing Powers Non-Alc Bev Sales
• Bev-Alc Drop Continues
• Now Streaming: CPG Week

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Black Rifle Coffee has a big target on its back.

Since going public in 2022, the veteran-owned coffee business has been a magnet for lawsuits, with at least seven cases involving the company filed between 2022 and 2024. We took a look back at some of the notable cases this week and dug into their status.

Most of Black Rifle’s legal woes are now behind them, but a good soldier always knows to watch their six, with at least one seemingly settled case coming back with an aggressive appeal.

• We did find that the company peacefully settled a discrimination case filed by a former company executive.
• But they just can’t seem to shake their ongoing dispute with consulting firm Strategy and Execution Inc. (SEI) over unpaid royalties; SEI is still claiming a right to post-termination royalties for Black Rifle’s RTD portfolio.

Legal challenges that arose from Black Rifle’s 2022 merger with a SPAC, leading to alleged mismanagement of a warrant process, are still ongoing. One case, filed by a group of shareholders, seemed to come back to life this month after nearly two years of minimal updates, suggesting the lawsuit is not dead yet.

Insiders can get a full breakdown on the company’s legal woes in the story on BevNET.

Keurig Dr Pepper (KDP) has acquired drink mix manufacturer Dyla Brands, which produces Stur and a growing portfolio of co-branded liquid and powder mixes.

• KDP was previously a minority stakeholder in Dyla and held a seat on the company’s board of directors. 
• The acquisition now gives KDP 100% ownership of the business and a bigger stake in a multi-billion category.

ICYM the breaking newsletter report this morning, read the full story on BevNET here.

Reyes Beverage Group (RBG) has scooped up more major spirit brands in California. Kirin Beer and Spirits of America Inc.’s (KBSAI) Four Roses Bourbon and Fuji Japanese Whisky are the latest to join the total beverage distributor in the lead-up to Republic National Distributing (RNDC) exit. 

RGB already works with KBSAI’s beer portfolio (New Belgium Brewing, Bell’s Brewery and Kirin Ichiban), so the move makes sense considering Reyes’s rapid transformation into a total-bev distributor. 

The newcomers join a growing spirits book including Kōloa Rum Company and Infinium Spirits (whose portfolio includes Seagram’s Vodka and Templeton Rye), LALO Tequila, Fernet Branca USA, and two of the largest global spirit companies, William Grant & Sons and Brown-Forman, not to mention top-selling spirit Tito’s Vodka.

Read more on the moves here.

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Badger Bevs launched its premium, glass-bottled mixer brand in 2022, building distribution primarily among on-premise accounts. 

While the Connecticut-based company has focused on upscale restaurants, bars, hotels and country clubs with an “exclusive, high-end aesthetic,” said founder David Vogel, it recognizes that “there are use cases that you really need to have the can.”

• Badger Bevs plans to release single-serve cans of some varieties by the end of the year along with a multiserve bottle to broaden its reach in retail and behind bars.
• After expanding to Northern California, the Midwest and Tennessee, the brand also signed on with distributor Brescome Barton to service its home state and Badger Liquor in Wisconsin.
• The business is backed by investment from the Bishop family (founders of Sobe Beverages and Blue Buffalo pet food) and is partnered with award-winning bartender Jillian Vose.

Learn how Badger Bevs is strategizing a move into new formats.

Yogurt soju RTD cocktail maker Yoju has raised $1.4 million in a round led by Top Shelf Ventures and No Sleep Beverage. 

• The 2024 BevNET Cocktail Showdown winner has landed distribution in Whole Foods Market, Trader Joe’s, Costco, 7-Eleven and Kroger, among others.
• Yoju comes in 12 oz. cans with 7% ABV and is available in four varieties (Original, Mango, Lychee and White Peach).

The July 4th holiday – or rather the two-week period ended July 12, including Independence Day – was one to celebrate for non-alcoholic beverages, as sales went up on the back of higher prices and lower volumes. 

• Overall dollar sales growth ticked up 4.2% during the period (+4.1% 4-wks/+3.9% 12-wks) as pricing increased 4.6% (4% 4-wks) and volume declined 0.4% (+0.1 4-wks/-0.3% 12- wks), according to the latest analysis of NielsenIQ data by Goldman Sachs.

For the full category breakdown – including surging energy drinks and slumping sports bevs – read the complete recap on BevNET.

Bev-alc volumes continued to decline in the two-week period ending July 12, but July 4 may have given spirits and mixers a summertime boost. 

• Ready-to-drink beverages are continuing to drive growth for the category with sales picking up slightly (+21.8% 2W/ 18.8% 52W). Mixers also saw a healthy jump (+3.6% 2W / +2.4% 4W).
• We’re also watching the spiked ice tea wars: In the case of Boston Beer’s Sun Cruiser and Surfside, sales velocity is where we see the larger gap, with Surfside down 21.8% versus Sun Cruiser at  -31.7%.

Insiders can get all the insight on BevNET.

On the CPG Week podcast, Nosh managing editor Monica Watrous and senior reporter Brad Avery discuss the acquisitions of Tia Lupita and Health-Ade Kombucha, new directions for the biggest beverage makers, and how Hero saved the day when Whole Foods ended its supply agreement with BetterBrand.

Click here to listen to this week’s episode. Also available on Spotify and Apple Podcasts.

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