• 🚰 Inside Flow's Q1 Growth
• 🦍 Gorilla (Beverage) Warfare
• 💰 GrubMarket Raises $50M
• 🪝 Hooked Coffee Shuts Down
• 🏝️ Corona’s Got an Island
• 🌺 Wild by Nature, Strategic by Design. It’s Why Wildwonder Is Surging.

From cost-effective solutions for citrus flavors, to supply reliability for raw materials, to support for formulation challenges, and more, ADM has the expertise, portfolio, and technology to help you innovate grapefruit products bursting with authentic, fresh-from-the-grove flavor. Learn more

We hate to make Tariff Tuesday a tradition, but here we are, still grappling with how the spirits industry can weather 25% to 200% tariffs. 

Last week, President Donald Trump threatened to tariff European wine, spirits and other alcoholic products by 200%, putting bev-alc companies, once again, in the middle of a trade war. 

• As we’ve seen with Canada and Mexico, what Trump says he’ll do and what he actually does are two different things. 
• Plus, that kind of tariff would be sure to upset Trump’s buddy Bernard Arnault, the billionaire behind Europe’s most valuable champagne and wine brands.

Still, even the potential of tariffs is already affecting the industry. Despite Trump’s claim that the 200% tariff on goods from the EU will be “great for the Wine and Champagne business in the U.S.,” the impact is more complicated as importers, restaurants, and retailers all depend on the sale of European products to survive. 

• Plus, there aren’t any champagne businesses in the U.S. because champagne can only be made in France – so get ready for “sparkling wine brunch” instead.

So how are companies dealing? With tariffs on Canadian and Mexican goods potentially returning, many tequila importers – particularly those who have been frontloading cases – are planning to withstand price increases for now. 

• Others have already been slapped with invoices for crossing their products over in the two days the tariffs were in effect. 
• Importers of European goods may shake up their portfolios 

American exporters are also facing whiplash in Canada, where American products were stripped off the shelf. That’s another blow for smaller distillers, which advocates say the craft sector just can’t withstand right now. Meanwhile, the 50% tariff on whiskey to the EU may return April 1, which was devastating to U.S. spirit exports when unfurled in Trump’s first term. 

All this comes as consumer spending and confidence is at an inflection point, meaning bev-alc shoppers may reach for higher volume purchases or pick up that cheaper tequila bottle. Marketers say companies should get their “tariff relief” strategies together, including revamping messaging to focus on value. 

Insiders can access the full story for a complete understanding of how tariffs are impacting the spirits sector.

Co-packing has kept Flow Beverage Corp’s turnaround on pace, with double-digit consolidated net revenue growth announced in its Q1 2025 earnings report today. But the branded side of the business saw sales slip during the quarter.

• Consolidated net revenue was up 38% year-over-year to $11.4 million in Q1
• Flow brand net revenue fell 5% to $6.2 million.
• Co-packing revenue jumped 216% in the quarter, proving the business has benefited from its increased focus on manufacturing and scaling its production facilities.

CEO Nicholas Reichenbach said the company is working to “close the gap” on the Flow water brand’s prior year results, “which included unprofitable contracts that have since been exited.” The “foundation for continued improvements” has been established, he added.

The company behind Gorilla Mind (GM) and Gorilla Mode is suing Gorilla Drinks (GD) over trademark infringement after the latter also launched its energy beverages in the U.S. in December. The complaint, filed in the U.S. District Court for the Central District of California, alleges that GD is “capitalizing off of [GM’s] recognition and success.”

🏛️ GM contends it has pending applications to register its trademarks and has also tried to reach a settlement with GD over opposing trademark applications.

🫴 GM argues that GD is lying to consumers and is seeking a preliminary and permanent injunction in addition to damages.

💭 "[GD's] conduct is intentionally fraudulent, malicious, willful and wanton. Defendants' continued use of their infringing mark after notice and direct communications with plaintiffs' counsel about the GORILLA marks reflects a clear, intentional scheme to unlawfully benefit from willful infringement of plaintiffs' intellectual property and to unfairly compete with plaintiffs," GM claims.

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Food technology company GrubMarket has raised approximately $50 million in a Series G funding round from Liberty Street Funds, 3Spoke Capital, ROC Venture Group, Portfolia, Pegasus Tech Ventures and Joseph Stone Capital at a valuation of $3.5 billion. 

⏪ The fresh capital will be used, in part, to scale its AI tech innovations. GrubMarket released what it claims to be the first Enterprise AI software solution for the U.S. food supply chain industry last year. 

🛒 The platform counts “almost all of the nationwide grocery chains,” as customers as well as restaurants, hotels, schools, government facilities, online food delivery companies, farms and individual consumers. 

💭 “GrubMarket has rapidly grown into a major food technology company by leveraging best-in-class AI-powered software solutions and strong operational discipline,” said Kevin Moss, managing director of Liberty Street Advisors, in a statement. 

Single-serve pour-over kit maker Hooked Coffee is closing down after four years, per a LinkedIn post from founder Natalie Ma. 

• The Kickstarter-funded brand was sold online and had partnered with specialty roasters like Equator Coffee and Sightglass to produce the sachets, which fit over a coffee cup for a pourover-style brew. 
• Ma did not share details behind the closing.

Corona’s marketing is rife with imagery of sitting on the beach, sipping a cold Mexican lager. So why not own the beach? The Anheuser-Busch brand has opened Corona Island, an “eco-protected natural paradise off the coast of Colombia.” 

• Initially opened in 2021 as an “invite-only getaway,” Corona Island is now accepting bookings from travelers looking for a beer-themed tropical vacation.
• Guests can stay in waterfront bungalows and have access to a “full suite of Corona products.” Perhaps they can bring the bottles home to cash in on that five cent deposit.

Rosa Li, the founder and CEO of fast-growing functional beverage brand Wildwonder, explains how a focus on steady, incremental growth has been key to maintaining integrity. She also discusses how the brand aligns its expansion with core values, its unique position at the intersection of kombucha and soda, and the power of social listening in shaping the company’s future.

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