• 🛒 Whole Foods CEO To Lead Amazon Grocery
• 🥤 Simu Liu Comments On ‘Bobba’ Controversy
• 🆕 New Products: Distilled Beer Cocktails?
• 🏭 Nestlé's New Beverage Facility
• 🙋‍♂️ Philly Whole Foods Wins Union Bid
• 🍧 Frazil Buys Trident Beverage

A handful of years ago, the extensive array of alternative milk options was meme-able – what else could we milk? How does one even milk an almond? (scroll to the bottom for some of our favorites). 

The nuts, seeds and at times, alternative solutions precision-fermented in stainless steel bioreactors, seemed like they were spearheading the growth and adoption of an established, but niche category. (Let’s not forget the OG alternative, soy milk, which saw its first wave of popularity in the 80s). 

By the mid-2010’s, everyone was drinking almond or oat milk. If you were still sipping cows milk, you might as well have just crawled out from under a rock.

But then, around the end of 2022 plant-based dairy began to decelerate. Over the course of 2024, refrigerated plant-based dairy milk sales fell further, down 4.9% while units dropped 4.5%. The conventional dairy industry has followed a similar pattern. All the while, a relatively unknown subsegment – A2 milk – was on its way up.  

“The thing that's been surprising is how quickly it's growing,” said Alec Jaffe, founder and CEO of A2 dairy-based brand Alec’s Ice Cream. “It feels like it's really poised to, in the next two years, even next year, really take off. It feels like there's this kind of groundswell building around it.”

A2 dairy (also known as A2/A2 or A1-protein free milk) comes directly from the cow, making it a natural alternative to often-complex plant-based concoctions. Its main draw, however, is that it is easier-to-digest (No, it is NOT lactose-free). Typical dairy milk contains both A1 and A2 proteins – it is the A1 component that makes milk hard for humans to digest. 

But A2 can’t be created via processing, cows must be selectively bred to produce A2/A2 milk. That is a long slow process, said Blake Alexandre, co-founder of the only commercial scale A2 dairy in the U.S.. Alexandre Family Farm has been working to convert its herd since 2008 and 20% of the cows still do not produce A2 milk. 

But CPGs have caught on in the meantime, sourcing the Alexandre’s milk to make everything from ice cream to kids shakes and RTD lattes. That exposure is raising awareness and demand. Can the supply chain keep up?

BevNET Insiders can access the full scoop for a complete understanding of the state and scalability of the A2 dairy space.

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Amazon announced on Tuesday that Whole Foods CEO Jason Buechel will serve as its new leader of Worldwide Grocery stores while maintaining his role at WFM. 

👀 Buechel will oversee the ecommerce giant’s collective grocery options across Amazon Fresh, Whole Foods Market, Amazon Go and grocery partnerships to provide consumers with a simpler, faster and more affordable shopping experience.

⏪ Buechel succeeds Tony Hoggett, who served as SVP of Amazon Worldwide Grocery stores before departing the company on November 1. 

🗣️ What he said: “Customers are increasingly turning to Amazon for their grocery and everyday essential needs because of our unmatched selection, great prices and convenient shopping options – be it fast delivery, easy pickup, or in-store shopping.” - Jason Buechel

In other people moves news: Spirits industry investment and diversity platform Pronghorn named Ron Cole, a CPG veteran and former leader at Nestle Purina, Kerry Foods, and Reckitt, as the company’s new president. The appointment follows a significant year of growth that saw the platform make 28 new brand investments. 

It has been about four months since actor and CPG investor Simu Liu’s headline-topping appearance on Canada’s ‘Dragon’s Den.’ Now he is speaking out about the controversy that ensued after he declined to invest in boba tea brand, Bobba. 

😡 Liu said he believes “he was set up for a viral moment” by the show’s producers, explaining in a LinkedIn post yesterday that he declined because the boba tea brand lacked any reference or acknowledgement to the product’s origins.

• He also said the producers were “constantly in my in-ears, urging me to get angrier” escalating the moment.
• Liu said he felt obligated “to speak up” about the lack of representation but didn’t want to be the “police of all boba.”
• The moment became a talking point about the appropriation of ethnically significant products by other cultures.

There’s no end to innovation. Here’s a sample of just some of the most recent beverage announcements from across the industry.

🍺 Miami craft brewery Cervecería La Tropical is debuting what it calls “The World’s 1st Distilled Beer Cocktail” with La Tropical Mixología, an RTD canned cocktail line that triple distills La Tropical beer to create a unique “beer spirit” in Pasióntini (Passion Fruit Vodka Martini) and Havanito (Blanco Rum Mojito) varieties.

🥣 Oatly and Nespresso are joining forces for a co-created Oatly Barista Edition Coffee, launching in 15 countries this week.

🍊 Coke is taking another stab at a permanent new line addition with Coca-Cola Orange Cream, a creamsicle-esque orange and vanilla flavor blend, launching in the U.S. and Canada on February 10 in regular and Zero Sugar varieties.

Nestlé USA is opening a new beverage facility and distribution center in Glendale, Ariz., today that will produce creamers for several of its brands including Coffee-mate, Natural Bliss and Starbucks. 

👀 The new plant is Nestlé’s 20th food and beverage factory. It is also the latest move from the CPG giant’s commitment to invest over $3 billion to enhance stateside manufacturing capabilities. 

💧 According to Nestlé, the 630,000 sq. ft. facility has water management tools to recycle and repurpose up to 75% of its treated processed water. The factory is also a zero waste for disposal facility. 

🗣️ What they said: “Coffee culture is booming across the U.S. as consumers seek more options for customization and experimentation at home. This new facility was built with the flexibility needed to support innovation and will play a key role in helping us deliver for our customers and consumers.” - Daniel Jhung, president of Coffee & Beverage at Nestlé USA

Whole Foods Market is waking up to a potential watershed moment, as workers at a Philadelphia location voted to become the chain’s first unionized store. 

🧨 Leaders of the effort hope to spark more of the chain’s 500-plus locations to follow suit. Issues on the table include improvements to benefits, staffing and starting wage of $16 per hour. 

☑️ The pro-union side took around 57% of the ballot (130 votes for, 100 against) and is now set to join a local chapter of The United Food and Commercial Workers International Union (UFCW), opening a path to collectively bargain.

⚖️ The decision comes against the backdrop of reported union-busting efforts by Amazon, which is facing unfair labor practice charges from the UFCCW Local affiliate for dismissing one worker in retaliation for union activities. 

• Other allegations include supervisors promising employees pay increases if they voted against joining the union. 
• Welcome to your first headache, Mr. Buechel.

Slushie giant Frazil is expanding its frozen empire with the acquisition of Trident Beverage, a producer of 100% juice slushes for K-12 schools. Wait, K-12 schools have slushie machines? Where were those when we were kids? 

• Well, Frazil will be extending its c-store-derived expertise into the K-12 frozen beverage market with this latest acquisition.
• Two-decade-old Trident Beverage makes the Juice Alive brand with a focus on nutrition in order to be a “healthy and profitable option for schools looking to enhance their beverage offerings,” the company claims.