• This Week’s Hot New Sips
• Protein, Ozempic Set The Innovation Pace
• Pernod Ricard Restructures
• High West Lassos Luke Grimes
• Will This Deal Push Reyes To On-Prem?
• Now Streaming: Taste Radio

From the playful rise of #WaterTok to the wellness appeal of prebiotic sodas, consumers are reshaping what they expect from a simple sip. Flavored water is leading the charge, bridging fun, function, and flavor in ways brands can’t afford to ignore. See where innovation is headed next. Learn more

We’ll admit it – when we saw Keurig Dr Pepper had released its very first State of Beverages Trend Report, it felt kind of like bragging about acing the test after you wrote the questions yourself. 

And while there is some general fact-touting (coffee is REALLY popular, you guys) that shouldn’t shock anyone, there’s a few notable details that suggest the opening of little-explored frontiers – particularly in the fertile soda regions – on which KDP doesn’t yet own an inexorable claim. 

And when 53% of Gen Z say they choose beverages to “stand out,” there’s a lot of white space to work with… Here’s what we found: 

Get ‘Em Talking: 72% of Gen Z consumers try a new beverage every month, per the report, with new flavors being top-ranked amongst motivational attributes at 59%. And they’re discovering those flavors overwhelmingly on social media (74%). 

• In that context, bold flavors that “spark curiosity, drive relevance and create personal, memorable experiences” are able to break through the noise; is it any wonder brands are drawing inspiration from TikTok? 
• The good news? While the big guys leverage their big brands (see: Sprite +Tea, Pepsi’s IHOP-approved maple syrup cola) to dabble in product trends, there’s still room for independents like Perfy and Swig Drinks to generate attention and disrupt the category in their own way. If there’s one thing that social media has proven, it’s not always the biggest budget that wins the war for attention. 

Taste Over Function: 74% of Gen Z choose beverages based on their functional benefits, but 70% of consumers say they would rather drink something that tastes amazing with no benefits than something beneficial that tastes bad. 

• That’s not big news in itself, but suggests that consumers in crowded categories (like modern soda) will increasingly choose around flavor as ingredients like prebiotics become commoditized. 
• Consumers here may be more concerned with how well brands can mimic the taste of a cream soda or gummy bear, rather than how many billion CFUs they have.

Insiders can access the full analysis for more on how CSDs align with consumers’ current needs on BevNET. 

Whether it’s marrying lemonade with coffee, protein with caffeine, or soda with added benefits, this week’s new products have something to perk up everyone.

⚡ Naked Nutrition made its first foray into the energy drink space with the debut of Naked Sparkling Energy. Available in three flavors – Lemonade, Orange and Strawberry Lemonade – each 12 oz. can contains 200mg of caffeine from organic unroasted coffee beans. 

🥛  Starbucks introduced three new creamers to its at-home line, inspired by popular menu items: Irish Cream Inspired Dairy Creamer, Horchata Shaken Espresso Inspired Oatmilk Creamer and Maple Pecan Latte Inspired Oatmilk Creamer. 

🥂 Josh Cellars is rolling out a Non-Alcoholic Sparkling wine nationwide following a limited release in select markets earlier this year. The offering is crafted in Italy’s Prosecco region by a fifth-generation winemaking team

Check out the full gallery on BevNET.

Consumers are looking for food and beverage innovation even in times of economic uncertainty, a sentiment validated by Circana’s 2024 New Product Pacesetters report. This week, we broke down some of the key findings:

💪 Power of Protein: With the “Ozempic Era” in full swing and a push for high-protein products infiltrating the CPG space, Circana deemed 2024 “the year of protein.” Ready-to-drink, powder and supplements posted 18% dollar sales gains. 

🧠 Functional Flood: Energy and sports drinks have historically ranked high on the Pacesetters list, but the 2024 roster shows a focus on multiple benefits elevates them even more.

🤝 In Brands We Trust: Manufacturers and brand owners are recognizing the restaurant-to-retail advantage and making major plays with licensing and co-branding, including Jack Link’s Frito Lay Flamin’ Hot Beef Jerky.

Insiders can read the full report for all of the details.

Here’s the latest intoxicating news…

As major spirits groups struggle with slow sales, the owner of Absolut and Jameson is next to cut jobs. 

Pernod Ricard has begun an internal project to create a "more agile and simplified organization." Translation: Split brands into two primary divisions and restructure, which, in turn, leads to "departures."

• The French spirits group is not the first to buckle under declining spirits sales. Earlier this year, Brown-Forman let go of 12% of its 5,400-person global workforce and closed its Louisville-based cooperage. 
• In May, Moet Hennessy, the wine and spirit business of LVMH group, announced it will shrink its workforce by more than 10%, about 1,200 employees. 

Insiders can access the full story for a look at what we’ve learned so far.

High West Distillery is getting a little help from actor and musician Luke Grimes to champion its "Protect the West" conservation initiative.

The new partnership aims to amplify High West's ongoing commitment to preserving the American West's natural beauty, building on its $1 million contributed to nonprofit organizations committed to land preservation and environmental stewardship across the region. In 2023, the whiskey maker partnered with Olympian Shaun White on the campaign.

The owner of iconic hospitality shot Fernet-Branca is following other spirits suppliers to Reyes Beverage Group in California.

Branca USA and Reyes Beverage Group have announced a distribution partnership in California effective July 2025, a day after LALO Spirits said it would make the same move.

Meanwhile, we’re guessing Reyes will be beefing up its on-premise spirits accounts teams, although anyone in the industry knows Fernet sells itself — in its nearly 200-year history the brand has made itself the herbal darling of bartenders around the globe. 

Go Deeper: As RNDC Exits California, What’s Next For Suppliers?

Why did it take government pressure for Kraft Heinz to clean up its act? The hosts unpack the conglomerate’s pledge to drop artificial dyes from its products by 2027, and what it says about Big Food’s priorities. The episode also features interviews with the founders of two remarkable early-stage brands: Maura Duggan of Fancypants Baking Co. and Allison Elliott of Farmer Foodie.

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