• ❤️‍🔥 Co-Man Fire Tests Startups
• 📊 Pepsi Bev Volumes Slip, KDP +8%
• 🛗 Up Next On Elevator Talk
• ☕ Bean-Free Goes B2B
• 🤠 Johnson Brothers Head To Texas
• 🍬 Sweet Treat Trends

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

Earlier this week FDA Commissioner Marty Makary, alongside Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., proclaimed a desire to phase out the use of eight synthetic food dyes by the end of 2026. But is that really feasible? We checked with the experts.

It is important to note that the announcement was more-so a request to manufacturers, and fell short of an official ban. The press conference, held Tuesday, also offered little detail on how these requests would be implemented.

FDA did say it would first revoke authorization of two little-used colorants in the coming weeks: Citrus Red No. 2 and Orange B. 

John Johnson, FDA-focused senior counsel at D.C.-based firm Shook, Hardy and Bacon, added some color to that mandate, explaining that Citrus Red No. 2 hasn’t been used in ages because it has one single purpose: “To color the outside of oranges that are intended for consumption, not for processing.”

🗣️ What Johnson said: “We know the administration's desire. How they will seek to effectuate that is unknown. [This] may also be part of the larger regulatory [motivation], where the administration has expressed the desire to revoke 10 regulations for any new one added. Removing a colorant that's not really used anymore may free up space for other desired goals, but that's pure conjecture.” 

Check out the full story for all of the details.

Even when things are going well, operating an early-stage beverage business takes plenty of problem-solving prowess. After a fire two weeks ago at an unnamed Los Angeles-based co-manufacturer, two brands have been forced into unforeseen pivots.

🔥 Canned kava brand Melo had been readying to launch at Bristol Farms, BevMo and 70 Fresh Thyme locations next month when founder Amy Bett learned that an air conditioning unit caught fire at its co-packer and destroyed all of the brand’s inventory (no one was injured thankfully).

💻 The fire destroyed about 50,000 units and Bett anticipates that DTC and independent wholesale revenue will be disrupted for about four to five weeks.

💪 Toronto-based smoothie brand todo was also impacted and was preparing to launch a new shelf-stable line of canned Fiber + Protein smoothies, designed as a GLP-1 companion product.

💸 Although todo hadn’t started production, it lost “thousands of dollars of ingredients” and is still waiting to hear if anything was salvaged, said founder Nekit Soni.The fire set back the brand’s launch between four-and-six months.  

Go Deeper On Lessons Of Resilience: Hurricane Helene’s Impact On CPG

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The spring quarterly earnings season is in full bloom this week. Here’s a quick briefing on what we heard from PepsiCo and Keurig Dr Pepper (KDP) this morning: 

🔵 Strong numbers from overseas helped Pepsi offset a 3% drop in beverage volume (organic revenue +1%) and a 1% decline in food (organic revenue -2%) in North America.

• The company highlighted zero sugar, functional hydration and sports nutrition as growth spots, with “zero”  products from Pepsi and Gatorade helping those brands gain share in CSDs and sports drinks, respectively. 
• But the specter of faltering consumer confidence and tariff-induced cost increases across the supply chain darkened the forecast for the months ahead: earnings are no longer expected to rise. 

📈 Over at KDP, its widely diversified beverage portfolio helped deliver the company 4.8% net sales growth for Q1.

• In U.S. Refreshment Beverages, net sales jumped 11% ($2.3 billion) against an 8% increase in volume and 3% rise in pricing. 
• Within that mix, KDP’s soft drinks are leading the way, but the company is eyeing plenty of runway ahead for energy drinks – led by GHOST, but also including C4, Black Rifle and Bloom – and sports hydration via Electrolit. 

The latest installment of Elevator Talk features leaders from Corpse Reviver, MAA • TE, The NA Beverage Company and Big D Energy Drink.

Founders and CEOs introduce their brands and provide a recap of recent news and updates. This week’s special co-host is Courtney O’Brien, the founder of The Outlier Initiative, who shared her thoughts, questions and feedback with the participants. She is joined by Ray Latif, the editor and producer of the Taste Radio podcast.

🆓 Watch the episode now.

After several starts and stops with its Minus Coffee brand, Compound Foods is shifting tactics yet again, this time setting up a B2B platform to market its proprietary beanless coffee and cocoa ingredients.

🌏 The shift comes at a time when global supply chains are roiling from uncertainty around U.S. economic policies, with the press release noting “CPG leaders are actively seeking alternatives to maintain product quality and consistency while reducing risk.”

🌿 Compound’s pitch of a more eco-friendly alternative to coffee has helped it raise over $10 million from Lowercarbon Capital, Ulu Ventures, Collaborative Fund, FoodLabs and others.

🛒 After pulling the plug on RTD coffee, the company introduced an instant version of its bean-free brews in January, which still looks available to order as of today.

Go Deeper: Beanless Brew Alternatives Ditch RTDs

Spirits and wine distributor Johnson Brothers is taking on new territory. Johnson Brothers announced its entry into the Texas market this week through a purchase agreement to acquire the Texas, Arizona, Colorado, and Florida operations of Maverick Beverage Company, a leading distributor of wine and spirits.

• The acquisition will scoop up approximately 400 Maverick team members.
• Johnson Brothers is the fourth largest wine distributor in the U.S., serving 22 states. 
• The move comes as other distributors are seeing their books contract and as Texas moves closer to allowing spirits-based RTDs in grocery channels.

The podcast team is satisfying its sweet tooth this week with an episode full of confectionery indulgence. Nosh managing editor Monica Watrous and senior reporter Lukas Southard were joined this week by reporter and “senior candy correspondent” Shauna Golden to discuss the trends she is expecting to see at next month’s Sweets & Snacks Expo.

😙 The team taste tests Rotten’s Gummy Cruncheez before a discussion about the launch of plant-based jelly brand Oddball.

🍬 Shauna explains the growing opportunity for freeze-dried candy and how high protein callouts are creeping into the confections category.

🤔 What does Jeni Britton’s second act look like? High-fiber fruit bar snacks. Monica explains how the ice cream brand founder is targeting gut health with her new brand, Floura.

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

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