• This Week’s New Products
• Sprouts Touts Growth in Q2
• Uncle Nearest Distillery Faces $100 Million Lawsuit
• Starbucks Goes “Back” To Consumer Connection
• Ayr Wellness Ceasing Operations

• Hey, Pepsi. We Remain Perplexed. But These Brands Slapp.

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Forget pumpkin spice; nothing tastes better than coffee during tariff season. 

Really, what else could stoke deeper appreciation for your previous morning cup as headlines like “A 50% Tariff On All Brazilian Imports Would Be A Disaster For Coffee”? As the impending reality of President Trump’s latest round of tariffs – highlighted by an eye-watering 50% levy on Brazil, the top coffee exporter to the U.S. – set in, here’s what you need to know before things kick off for real (we think) on Wednesday: 

Already facing headwinds from global drought, Brazil’s coffee industry has been sweating the prospect of losing its biggest trading partner for weeks, as a 50% tariff would effectively “shut down” that business. 

U.S. Commerce Secretary Howard Lutnick sparked optimism of a possible exemption for coffee (OJ got one to remain at 10%) during an interview earlier this week, but it currently remains in place, along with other major U.S. food imports like beef. 

With Brazilian harvests already under pressure from climate change, U.S. coffee producers like JM Smucker (Folgers, Dunkin’, Café Bustelo) have already raised prices this year before the tariffs; as the impact sets in over the coming months, things could look even more different by the end of the year. 

• Brazil will likely have eager new customers in China and other countries where coffee demand is spiking; U.S. customers, meanwhile, will turn to smaller countries to supply Arabica beans. That could help spark interest in robusta beans from Vietnam, as popularized in recent RTDs from Sang and Ngyuen Supply Co.
• The average retail price for a cup of coffee in U.S. cities has already increased 9% year-to-date, according to the U.S. Bureau of Labor Statistics.

Consumers can also expect a healthy hike on the cost of açaí juice and bowls, most of which enters the U.S. as pulp imported from Brazil. The head of Amazon Açaí Producers Association assessed the export situation in an ominous quote: "Right now, we still don't know how to do it.” (We reached out to acai specialists Sambazon for comment, but no word yet).  

Insiders can access the full report. 

The summer months are heating up with new hemp THC drinks, watermelon-flavored thirst crushers and more. Here’s just a quick taste of what’s inside the latest new product gallery…

🛣️ THC social tonic brand Cann is stripping bare with its new Naked Roadie, an unflavored, zero sugar version of its 5 mg hemp THC-infused portable drink pouch line that can be added to any beverage without changing the flavor.

🍉 WTRMLN WTR is making LMNDE. The watermelon juice brand has launched its ADEs line in Watermelon Lemonade, Strawberry Lemonade and Watermelon Limeade varieties, available now in Whole Foods and Target stores. Also on the watermelon front, functional soda Slice also introduced a Watermelon flavor this month.

💧 Gatorade is chilling out. The sports drink leader has launched Relax Hydration Booster in a powder packet, containing vitamins, L-theanine and magnesium to support relaxation. 

Sprouts Farmers Market touted “excellent results” in its Q2 2025 earnings report this week as it experienced a 17% jump in net sales to over $2.2 billion for the quarter.

• CEO Jack Sinclair credited the company’s focus on “operations, self-distribution, customer personalization, and team member development” with the strong performance and a bright outlook for the future.
• The company opened 12 new stores in the quarter, bringing its footprint to 455 total locations in 24 states as of June 29.
• Sprouts ended the quarter with $261 million in cash and cash equivalents and no balance for its $700 million revolving credit facility.

Insiders can read more about how these results reflect a transformation across the natural products industry. 

One of the most prominent voices in spirits is the center of a new lawsuit, with a storied Tennessee distillery on the line.  

Farm Credit Mid-America, a primary agricultural lender, is seeking the emergency appointment of a receiver to take control of operations at Nearest Green Distillery – the business founded by Uncle Nearest CEO Fawn Weaver, according to court documents filed Monday in the U.S. District Court for the Eastern District of Tennessee in Chattanooga. 

• The suit alleges that the company has failed to meet its financial obligations for more than a year, resulting in debts totaling an estimated $100 million.
• Farm Credit Mid-America is requesting that the court immediately install a third-party receiver to manage the distillery’s finances, real estate, and operations. 

Insiders can access all of the details.

After announcing a lackluster third-quarter earnings, Starbucks CEO and chairman Brian Niccol discussed how Starbucks is working to bring more “human connection” to its stores.

• The company will discontinue its mobile order and pickup-only concept in 2026, which totals between 80 and 90 locations.
• While the revitalization plan is counter to the convenience and quick-serve attributes of competitors like Luckin and Costa Coffee, Starbucks is focused on an experiential coffeehouse branding, which includes ceramic cups and comfortable seating.
• Niccol also spoke about integrating high-protein menu options and even bringing written messages on to-go cups as a way to “connect” with consumers.

Catch-Up: Starbucks Touts Improvements Under Turnaround Strategy in Q3 Earnings

Medical and adult-use cannabis company Ayr Wellness is entering into a restructuring support agreement, which will include selling off its assets and an “orderly transition of the company’s core business under new ownership,” according to a Wednesday press release.

• Ayr Wellness manages cannabis products in various formats, including Massachusetts-based brand Levia infused seltzers.
• After the asset sale, Ayr will be part of a court-supervised liquidation and “wind-down of operations” in the U.S.
• The business operates dispensaries in Virginia, Florida, New Jersey, Connecticut, Massachusetts, Pennsylvania, Nevada, Illinois and Ohio.

What’s the point of PepsiCo’s new sub-line of prebiotic colas? Is it addressing genuine consumer demand for functional ingredients, or just riding the wellness wave? The hosts once again weigh in. They also highlight emerging shot brands gaining traction and take a closer look at how the viral “WaterTok” phenomenon may have influenced Keurig Dr Pepper’s acquisition of Dyla Brands.

Tune into the episode here. Also available on Spotify and Apple Podcasts.