• Chris Reed Picks Up Pa. Co-Packer
• NIQ C-Store Channel Check In
• Brands Await UNFI Cyberattack Fallout
• Taco Bell Double Down on Drinks
• Monday Moves: People & Products

BIOLYTE’s horizons are brightening up.

The “medical-grade” hydration beverage maker announced a packaging refresh this Spring – the third in the brand’s history and its first look update since 2019 – as it seeks to supercharge volume sales and grow its business in the Midwest.

Founder and CEO Jesslyn Rollins said her “Spidey senses” were tingling over the brand’s need of something new to drive momentum before a rebrand, but after a call with a QuikTrip buyer she was told that BIOLYTE lacked the premium look and feel of a brand at its price point. That call put the rest into motion.

“We wanted to make it look like this drink could be seen on a football field, on a basketball court, in your home and in a hospital,” Rollins said. “And so we think that this package really covers all of the bases of our consumers.”

It’s one part of a broader strategy to regain momentum in retail. According to Circana, BIOLYTE’s U.S. retail and MULO sales were down 19.4% to $32.2 million in 2024. But the brand has been doing well online, up over 50% to drive total company growth of around 30% YoY.

The moves to charge retail also includes promoting COO Trey Sinclair to the joint role of President and COO and an introduction of its powder stick line to drug stores to over 6,000 CVS and Walgreens this summer.

“We are being very methodical and strategic, and we’re having to turn retailers down, because we are not in a position where a retailer can just be a marketing expense for us,” Rollins said.

Insiders can read the full story BIOLYTE’s new strategy on BevNET.

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Chris Reed, the founder of ginger beer brand Reed’s, is going deeper into the co-packing business via the acquisition of the recently-shuttered Joriki Beverage aseptic beverage production facility in Pittston, Pa.

Now operating under the name Pittston Co-Packers Corp., Reed purchased the facility out of a bankruptcy court sale earlier this year with the financial backing of an undisclosed Chinese business partner.

The project involves a $30 million investment into the site from the business group, with the Commonwealth of Pennsylvania providing $1 million from its PA First program and an additional $76,100 WEDnetPA grant to train employees.

Insiders can access the full story for a complete understanding of Reed’s plans for the plant.

The retail channel often affiliated with gas station snacks and beer is evolving to meet health-minded consumers. Don’t worry, beer is still the c-store sales leader – $26.2 billion in the 52-weeks – but functional beverages like energy drinks are catching up.

🥤 The functional set has overtaken soft drinks, notching a 5% increase in the channel over the last two years, according to NielsenIQ. Cannabis beverages secured $23 million in sales, a 486% rise YoY.

🥪 While Millennials are grabbing cold drinks, Gen Z-ers are under-indexing in c-store beverage sales. Where the younger generation is spending in convenience is food, causing some retailers to expand their footprints with cafe concepts and added prepared food options.

Read the full story for more insights.

United Natural Foods, Inc. (UNFI) confirmed last Thursday the cyberattack that hobbled its national network in early June has been “contained” and that it was delivering products to grocery stores across its network at “more normalized levels.” 

• Still, brand operators say they remain in the dark and are left wondering how promotions or new product launches were affected during the period. 
• The event ultimately compounds an already fraught relationship many emerging brands have reported with the distributor – while exposing cracks in the system.

Read the full story to understand why the incident will continue to affect brands in the UNFI system.

Taco Bell is putting its tortilla chips all-in on beverage. 

After a limited test run of its new Refrescas drinks, the fast food chain is launching the six-flavor line nationwide as a permanent menu item and plans to open 30 new locations of its Live Más Café beverage concept.

• Taco Bell’s bullish take on its cafe concepts is notable, given McDonald’s attempt at a similar chain - CosMc’s – cratered after launch and are now being shut down.
• But the Bell keeps ringing for drinks: Taco Bell is doubling down on its goal to achieve $5 billion in beverage sales by 20230.

Related Reading: McDonald’s Reveals Drink-Centric Concept CosMc’s

Here’s a taste of the people and products moving around the industry to start off your week.

🔄 Dutch bottling conglomerate Refresco is gearing up for a leadership transition, announcing the retirement of CEO Hans Roelofs, effective August 1. The company’s supervisory board is searching for a replacement and expects to announce a new CEO “in due course.” 

👔 Cann named veteran beverage executive Jeff Chassner as its new VP of Sales. Chassner previously held roles at MillerCoors and BeatBox. 

💧 Perfect Hydration Alkaline Water significantly expanded its distribution footprint in Q2, securing coast-to-coast availability at more than 2,200 Albertsons Companies stores. The brand also expanded into Smart & Final, Price Chopper/Market 32 and Save Mart, among others.

🚚 Premium cocktail mixer Badger Bevs added two new distribution partners: Brescome Barton in Connecticut and Badger Liquor in Wisconsin. 

Learn more about Refresco’s leadership transition in the full story on BevNET.