Today is Day 1 of BevNET Live! Tune into the free livestream to watch presentations on innovation, financing, brand growth, DTC sales, and more. Tune in.

At PACK EXPO Las Vegas, September 11-13, you’ll find more packaging and processing solutions for beverages than anywhere else—more processing exhibitors (350+) than at a dedicated processing show! Explore ideas from nearly 700 exhibitors with beverage solutions. The possibilities are countless! Learn more

Non-alcoholic beverage sales accelerated sequentially, growing 10.8%, while volume decline softened to -2.4% in the two-week period ending June 3, according to an analysis of NielsenIQ data by Goldman Sachs Equity Research. 

• Average pricing was “heightened” and “broadly stable” at +13.3%.
• CSD sales grew 13.5% in the two-week period with volumes down by -3.4%. Coke and KDP outpaced the category, up 14.4% and 14.3% respectively, while PepsiCo grew 10.1%.
• In energy drinks (+16% overall), PepsiCo’s portfolio of Rockstar and MTN Dew passed the billion dollar sales milestone, growing 11.7% in the two-week period. Its exclusive distribution partner, Celsius, was up 148.6% to $958.7 million.
• Still flavored water (+9.9%), sports drinks (+7.9%) and bottled water (+6.5%) were also among the top growing categories by dollar sales.

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The online grocery market may be losing its appeal with $6.9 billion in total sales for May – a 3.4% drop compared to last year, according to the latest monthly Brick Meets Click/Mercatus Grocery Shopping Survey. However, not all online order receiving segments saw equal fates.

• Pickup has emerged as online grocery’s golden child and was the only segment to see year-over-year growth in May. Pickup sales jumped over 9% and captured nearly 51% of total eGrocery sales. 
• Elsewhere, Ship-to-Home and Delivery recorded double digit sales declines y/y, dropping 17% and 11.7%, respectively. 
• Interestingly, though monthly active users (MAU) and those user’s ordering frequency are tracking downward, overall spend per order rose 8% in May y/y, but analysts say that increase can be attributed to higher grocery prices and not bulkier basket sizes.
• The final (virtual) dagger in eGrocery’s growth – repeat intent rates. That metric dropped 270 basis points compared to May 2022 and marked the third month in a row consumers said they are less likely to use the same online ordering service again.

Chobani has expanded its Zero Sugar lineup with the launch of a new drinkable format designed for on-the-go consumers. Available in four flavors at launch – Mixed Berry, Peaches & Cream, Strawberry Cheesecake and Milk & Cookies – the yogurt beverage is sweetened using natural sugar alternatives and will retail for a SRP of $1.99 per 7 oz. bottle. The brand made its first foray into the drinkable yogurt category in 2016 with Mixed Berry, Strawberry Banana, Apple Cucumber Spinach and Mango varieties in 10 oz. bottles. According to a recent report by Mintel, yogurt drinks are projected to own 21% of category sales over the next five years. Last spring, Danone released a drinkable yogurt product under its Activia brand. Activia+ Multi-Benefit Probiotic Yogurt Drinks are offered in Strawberry, Peach and Raspberry flavors and pack 9 grams of protein per 3.1 oz. bottle.

Callisons wants to make the flavor process simple. Come visit us at IFT 2023 in Chicago between July 17th and 19th to taste some of the great flavors we’ve got brewing in our lab! We’ll be located at Booth S2003 just inside the main entrance to the show! Learn more

The Illinois Liquor Control Commission (ILCC) announced an emergency rule to control retail placement of crossover products, according to press release last week. Under the new regulation, stores with sales floors over 2,500 square feet cannot display crossover alcoholic products “immediately adjacent” to non-alcoholic offerings like soft drinks, fruit juice, bottled water, candy, or snack foods with cartoons or other youth-focused imagery. Smaller retailers have the option to either separate co-branded beverages like larger stores, or post clear signage on any displays placed near products typically appealing towards children. The ruling comes when soft drink and juice companies like Sunny D are angling for a share of BevAlc, concerning regulators and health experts. Virginia enacted similar legislation earlier this year. 

Butter coffee and supplements maker Bulletproof 360 is oiling up its finances through a senior debt investment from family-office backed lender SG Credit Partners, through its SG Consumer Products division. The Seattle-based creator of the “Bulletproof Diet” announced the financing in a press release yesterday, but did not say how it intends to apply to investment. Founded in 2011, Bulletproof 360 produces a variety of coffees as well as supplements, creamers, collagen powders and oils which are sold in Whole Foods, Kroger, Public, Sprouts and Target stores across the country.

Bulletproof most recently announced a $13 million capital round in 2020, which brought its lifetime funding to around $83 million. That year the brand also launched a canned cold brew coffee line, alongside a visual refresh. However, according to the brand’s website, its ready-to-drink line has now been discontinued and the company is only offering dry coffee products online. Market research firm Circana reported retail dollar sales of Bulletproof’s cold brew offerings down -41.4% to around $652,000 in the 52-week period ending February 26, 2023.

While coconut water’s taste may be polarizing amongst American consumers, Alan Cohen, the founder and CEO of Mexican brand Kokomio, is hoping a simple change in sourcing can make a big difference in people’s perception of what a coconut should taste like. The startup brand, which is expanding into Sprouts stores nationwide this month with its pressed coconut juice line, sources its coconuts from near Acapulco, a differentiation Cohen says gives Kokomio a unique taste from the primarily Asian-sourced coconut waters that dominate the U.S. market. The brand is now adding its own coconut water line and recently introduced two new tropical themed flavors for its pressed line: Guava and Guanabana.

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What happens when you take a red velvet almond milk latte with extra sugar and two extra espresso shots, freeze it, stuff it in a box and ship it across the country? Tech entrepreneur Balaji Krishnan is in the process of finding out: his six-month-old startup Frazy offers customizable made-to-order coffee, mocktail and boba teas delivered in defrostable cups. So after a strong start, why is the company planning a future away from the format, and how? We explore. 

Non-alcoholic cocktail brand AF Drinks is the latest zero proof elixir to get a boost from a global spirits company. Pernod Ricard’s venture arm, Convivialité Ventures, has invested in the New Zealand-based brand which entered the U.S. earlier this year. The company, which offers takes on classic full-proof cocktails, joins Ghia and non-alc retail chain Boisson in the Convivialité portfolio. The news comes on the heels of other non-alc investments by major spirit companies: last month Constellation Brands acquired a minority stake in TÖST, an alcohol-free sparkling beverage brand, and Stoli invested in The Pathfinder Hemp and Root, a fermented and distilled non-alcoholic amaro. The no- and low-alcohol category surpassed $11 billion in value in 2022 growing 8%, and is expected to continue at 7% growth annually until 2027, according to The IWSR.

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It’s almost time for BevNET Live Summer 2023! If you’re unable to join us in-person, you still have the opportunity to listen to the important conversations happening on the main stage and in the Taste Radio Studio - we will make a free livestream available on June 14th and 15th. Read the story.