• 🆕 This Week’s New Products
• 🙋🏼‍♂️Mark Rampolla, Executive Coach
• 💻 Marketing Moves
• 👹 Monster Closes Utah Facility
• 💰 Kroger's $1 billion Bill
• 🚚 Campari Ditches Canada Self-Distro
• 😣 TreeHouse Cuts 150 Jobs
• 🚂 The M&A Train Keeps Rolling. And, How 'Jovi's Hampton Water Got Hot.

Rising interest in protein drinks, coupled with new innovation, helped Quest and OWYN (Only What You Need) offset the faltering Atkins brand for parent company The Simply Good Foods Company (SGFC) during the second quarter.

Simply Good is leaning on the performance of OWYN, which it acquired for $280 million in June 2024. The brand’s net sales increased 57% to $33.8 million in Q2, contributing 10.8% to overall growth.

Simply believes it’s “still in the early innings of OWYN’s growth story,” according to president/CEO Geoff Tanner, who’s targeting 2x sales over the next three to four years. Why the optimism?

OWYN has emerged as the leader in plant-based protein RTDs, per Tanner, which are “turning 50% faster” than its nearest competitor (4-packs are also +DD) – and that’s with just an average of seven SKUs per store and brand ACV of 60%. The powder business (~$25 million) also has room to run.

The company is pegging sales for OWYN at $140 million to $150 million for the full fiscal year, at which point it will have repaid close to all of the $250 million borrowed to finance the  acquisition.

Around half of OWYN’s growth is coming from new doors and SKUs, with the other half coming from increased velocities.

What Tanner Said: “To deliver on the targets we set, we need mid-20% growth. And we believe this is very, very doable. And that's without even thinking about any other vectors, whether it'd be expanding into bars.”

OWYN and Quest – whose second attempt at a high-protein (45 grams) milkshakes last month has been a “bullseye for the Quest consumer,” per Tanner – now represent 70% of the total business. That’s been particularly good news as Atkins – around 30% of the business – hits a rough patch.

At one of the company’s “largest customers,” a 70% cut to display space for Atkins was offset with some gains for OWYN and Quest; “Where we see opportunities to switch out underperforming SKUs on Atkins with faster turning Quest and OWYN SKUs, we will do this,” said Tanner.

Protein sublime Atkins Strong (30 grams per serving) has been a bright spot, and will be supported with new packaging and marketing as retailers “try to figure how to take a leadership position in weight wellness” amidst soaring use of GLP-1 drugs. 

Go Deeper: ‘Mainstreaming of Consumer Demand for High Protein’ Boosts Q2 Earnings

It’s a big week for innovation so here’s a small taste of this week’s super-sized new products gallery:

☕ Pop & Bottle and Bones Coffee Company each launched new RTD canned coffees, while Community Coffee gave home baristas a fresh flavor option with its ice cream styled Vanilla Waffle Cone ground beans.

⛰️ Mountain Dew introduced the limited edition tangerine-lime flavored Baja Cabo Citrus flavor this month, while better-for-you soda Poppi (now stablemates with the Dew in the PepsiCo portfolio) offered its own low-sugar take on the classic soda with Alpine Blast.

⚾ Japanese baseball phenom Shohei Ohtani partnered with Tokyo-based tea maker ITO EN for a new limited edition bottle of its Oi Ocha brand unsweetened green tea, available in mass, local, specialty and Japanese-affiliated retailers in the U.S.

Check out the full gallery on BevNET.

Mark Rampolla, founder of Zico Coconut Water (now Zico Rising) and GroundForce Capital, is preparing to share his industry wisdom with emerging brand leaders in a seven-week “Guide To Freedom” accelerator course.

💲 The course is being offered at a 90% discount for $997 features one-on-one coaching with Rampolla along with weekly 2-hour virtual courses.

🤔 The details remain sparse on what topic and subject areas will be covered but the website promises a “5-10x ROI” on the investment in the new accelerator program.

Go Deeper: Hear Rampolla’s thoughts on the new exit environment

Beverage makers are sprucing up their marketing efforts as spring sets in and we’re on top of all the latest activations. Here’s a look:

🧖 Halfday wants consumers to take its name literally and ditch their desk jobs even for just a day. The brand is sending $100 to 100 people so that they use their PTO and, presumably, use that free time to enjoy a can of the brand’s tea.

🤌 S. Pellegrino reunited Sopranos actors Michael Imperioli and Steve Schirripa for its “With Love, Italy” campaign, which promotes the brand’s new CIAO! Line.

🎸 Celsius is on tour with the Breakaway Music Festival, serving not just as the fest’s official energy drink, but also as an exclusive hydration partner via its electrolyte powder sticks line.

Get the full scoop on these and other new campaigns on BevNET.

BevNET’s New Beverage Showdown returns to New York this June, and applications are now open. Presented by Coca-Cola’s New Revenue Streams unit, this pitch competition gives early-stage, non-alcoholic beverage brands the chance to present in front of investors, retailers, a live audience, and thousands watching via livestream at BevNET Live. Past finalists include now-household names like Liquid Death, Health-Ade, Poppi, and MALK. Now it's your turn! The deadline to apply is Friday, May 2. 

Apply now. 

Monster Brewing will cease operations in Utah late next month, the company announced Thursday.

• Production of its Utah-based brands Wasatch Brewing and Squatters Brewing will shift to other facilities within Monsters’ bicoastal network
• The company’s Salt Lake City brewery, taproom and retail location will close on May 27.
• The brewery closure will eliminate 25 jobs; employees have been offered “a separation package and have been encouraged to apply for available positions within the company,” Monster said in a statement. 
• Chairman and co-CEO Rodney C. Sacks said in February that the company would be taking additional measures soon to “optimize our personnel and facilities” to support the company’s current portfolio demands. 

Insiders can access all of the details on BevNET.

Kroger spent more than $1 billion during the three year period it pursued a merger with grocery competitor Albertsons, per a recent SEC filing. 

• It racked up $684 million in merger-related expenses in 2024 alone, per a report in Mergers & Acquisitions
• Those annual bills steadily ratched up with $316 million spent in 2023 and $44 million in 2022
• Now, the grocer faces the prospect of paying out a $600 million termination fee to Albertsons alongside a $125 million fee to C&S Wholesales, who had agreed to buy divested stores to support the deal with regulators
• Both Albertsons and C&S have sued Kroger for the fees, but Kroger argues neither acted in good faith and thus, they are not entitled to the payments

Go Deeper: Listen to the CPG Week team dish out details on the Kroger/Albertsons break up.

Campari has ditched its own distribution network for Southern Glazer’s Wine & Spirits in Canada. 

🚤The Italian spirits company said working with the powerhouse distributor would “accelerate” its growth in the country. 

🇨🇦 The Americas account for 45% of Campari’s company sales, with Canada among the top five sales markets for Campari’s Wild Turkey whiskey brand and the second-largest market for Grand Marnier.

❌ The distribution move comes as Canadians are boycotting American liquor, and with Canada a contributor to rising Italian aperitif Aperol sales in 2024, Campari may be laying the groundwork for a spritz summer.

Go Deeper: FTC Sues Southern Glazer’s Over ‘Unlawful Price Discrimination’

Private label food and beverage maker TreeHouse Foods is eliminating about 150 roles at the company, including its EVP, business president and CCO Scott Tassani as part of “planned actions” to drive profitability.

🫖 The company acquired Harris Tea at the beginning of the year in a deal that added two new manufacturing facilities in Moorestown, N.J., and Marietta, Ga., along with 300 employees.

📉 The food and beverage maker reported a “challenging” FY2024 in February with CEO and president Steve Oakland saying he was “unsatisfied” with its Q4 and full-year results.

📊 TreeHouse reaffirmed its 2025 financial guidance on Thursday, with adjusted annual net sales between $3.34 billion to $3.4 billion and adjusted EBITDA between $345 million to $375 million.

Go Deeper: Despite ‘Challenging” FY24, TreeHouse Optimistic On Private Label

Is 2025 the year of the acquisition? The hosts highlight two more headline-grabbing deals announced over the past week: Hershey’s $750M purchase of BFY snack maker LesserEvil and the sale of watermelon water brand Mela to King Juice. We also speak with Jesse Bongiovi, who alongside rockstar father Jon Bon Jovi co-founded Hampton Water Wine, a rosé brand that’s taken the industry by storm.

Listen to the episode now. Also available on Spotify and Apple Podcasts.