Plus, Heritage Distilling aims for $6.75M IPO͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetNovember 25, 2024
DAILY BRIEFING
Today's news & insights for the beverage industry.

In this issue of Daily Briefing

  • 🔔 Heritage Distilling's  $6.75M IPO
  • 🚛 GURU Returning To Direct Distribution
  • 🥂 TÖST's AI-Powered Toast Generator
  • ☕ $344 For A Flat White?

📰 Today's Top Story

🧑‍⚕️ Langers Jumps in on Cola

🧑‍⚕️ Langers Jumps in on Cola

The family behind Langers Juice Company never imagined it would get into the soda category when it founded the health-minded business back in 1960. But in 2024, up is down and soda is good for you (well, better-for-you to be completely accurate). 

As the clean soda segment has blossomed into a mainstream market force, the California-based business is finally jumping into the segment with the introduction of Langers Craft Cola in both a full calorie version (made with 36 grams of real cane sugar) and Zero (sweetened with stevia). While the colas are caffeinated, they’re otherwise non-functional – avoiding direct competition with gut health focused brands like Olipop and Poppi – but still seeking a slice of the growing better-for-you CSD pie.

The core inspiration for the launch, according to Langers president Bruce Langer, wasn’t so much the new wave of functional brands but more the old school of natural soda brands (think Hansen’s and Blue Sky) that delivered on full flavor but with a cleaner ingredient label than the high fructose corn syrup-laden mainstream brands.

“Our feeling was that it’s a good niche with a lot of sales, and the consumer appreciated it, but it’s no longer available – so why don't we enter?” he said.

Langers Craft Cola is making that differentiation clear on the front of the label, with a call out for “No Phosphoric Acid,” along with a long list of other No’s: no aspartame, no acesulfame potassium, no sodium, no GMOs, and no BPA can lining either.

But as brands like Poppi are discovering, consumers are gravitating towards their products less for purported bonuses like prebiotics, and more simply for flavor and lower sugar. Does a callout like “No Phosphoric Acid” mean as much to the average shopper? Langer believes it will – at least with a certain segment of health-conscious consumers – while others may learn about potential health impacts of phosphoric acid through the brand’s messaging.

“As a kid, there were experiments where we’d take a tooth and drop it into soda, and the tooth gets eaten away,” Langer said, referencing a popular belief with a little more complicated science behind it. “Well, we don't need that. We don't need to do things that way.”

BevNET Insiders can access the full story later today for all of the details.  

 

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🔔 Heritage Distilling Aims For $6.75M IPO

🔔 Heritage Distilling Aims For $6.75M IPO

Craft distiller Heritage Distilling has gone public, aiming to raise about $6.75 million as it expands its operations.

🤑 Heritage Distilling is now publicly traded on the NASDAQ index under the ticker symbol CASK. The initial public offering started with more than 1.6 million shares available at $4 per share, and is expected to wrap up today.

🚀 The distiller is looking for a boost as it plans to develop or acquire additional brands or products, expand sales and marketing efforts, hire staff and expand R&D. 

🏞️ Since Justin and Jennifer Stiefel opened Heritage Distilling in 2011, the company has expanded offerings across a variety of craft spirits and accelerated its distribution strategy with the creation of the Tribal Beverage Network, a collaboration with Native American tribes developing Heritage-branded distilleries across the country. 

🚚 Heritage is now one of the largest regional distillers in the Pacific Northwest and with the recent acquisition of another regional craft distiller, has added more distribution across the country.

Go Deeper: Heritage Distilling Builds the First Network of Tribal-Owned Distilleries

 

🚛 GURU Returning To Direct Distribution After Pepsi Deal Ends

Canadian energy drink maker GURU will return to a direct model when its distribution partnership with PepsiCo Bottling Group, a subsidiary of PepsiCo Canada, concludes in May 2025. The Montréal-based brand signed its Pepsi deal in June 2021, before that, GURU operated in a direct distribution model for 22 years.

🤝 The company announced today it will scale up its sales team as it works to connect directly with consumers and distributors, said GURU president and CEO Carl Goyette.

💬 “This change will provide greater flexibility, stronger brand control and the ability to reinvest in growth opportunities,” Goyette said.

🙁 GURU reported that reduced volumes and declining c-store foot traffic led to falling net revenue during its Q3 earnings report.

 

🥂 TÖST Launches AI-Powered Toast Generator

Non-alcoholic beverage maker TÖST announced today the launch of “TÖST Maker,” a microsite that uses AI to help consumers write the perfect toasts for special occasions. The launch marks the brand’s first interactive digital marketing campaign and will be available to consumers year-round. 

💻 When consumers go to the site, they can enter the relationship, occasion, and tone for their toast, as well as any personal touches they wish to include. From there, AI does the “heavy lifting,” according to TÖST. 

💭 What they said: "We believe this initiative will solve a major pain point for consumers when it comes to blending creative flair with public speaking. We created TÖST so all people can come together and celebrate moments of joy. The TÖST Maker is a fun and thoughtful new way to do just that.” - Jess Daponte, CMO of TÖST

 

☕ $344 For A Flat White?

A Scottish dairy farmer is claiming to sell the U.K.’s most expensive cup a’ Joe, charging $344 for one flat white, according to the Associated Press. While the double espresso, steamed milk-topped concoction comes complete with a bit of foam art, that’s not the only draw.

  • The coffee is actually just a perk of a crowdfunding campaign to support Mossgiel Organic Dairy’s aim to expand its sustainable operations.
  • Any individual who buys at least 34 shares will receive a certificate for a flat white which they can redeem at any of the 13 coffee shops in Scotland that use the dairy’s milk.

So readers what do you think: does this spell gimmick or innovative marketing idea to drum up investment?

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