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DAILY BRIEFING | Today's news & insights for the beverage industry. |
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|  | In this issue of Daily Briefing | - 💰 Reed’s Backers Re-Up
- 🆕 JuneShine Brews Into NA Kombucha
- 🧑⚖️ Monster Defends ‘Beast’ Trademark
- 🤝 Cheeky Taps Partners For Decaf Espresso
- 🛒 Online Grocery Sales Climb 7% in August
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| 📰 Today's Top Story | | | It’s election season, and as much as brands may not want to get dragged into the fray of partisan politics, consumers often have a way of forcing the issue – whether it’s last year’s Bud Light boycott or Vice Presidential nominee JD Vance’s much-memed comments on Diet Mountain Dew this summer – politics will find CPG one way or another.
But how different are Democrats and Republicans when it comes to their pantries? A new survey from data firm and political pollster YouGov last week is shining some light on how liberals and conservatives in the U.S. think about their shopping carts, tracking the most partisan and bipartisan brands across all industries. One big takeaway – if you’re a startup, you might have more luck driving trial with liberal voters. According to the report, derived from surveys with over 71,000 consumers, conservatives are 7.2% less likely to consider buying new brands than liberals, making it a step harder for new brands to reach and gain traction with right-leaning shoppers, who tend to be older and favor legacy brands. When it comes to food and beverage, that behavior may also be reflected in location and retailer preference: liberals seem to more strongly consider discovery-oriented grocery stores like Whole Foods (+9.9 basis points over conservatives) and Sprouts (+3.2), while conservatives appear to rely on regional chains like Publix (+3.8) and Winn-Dixie (+3.3). Brands have increasingly made a conscious choice to involve themselves in politics in recent years, but consumers are also split between whether they believe companies should get involved at all. Around 71% of self-described conservatives agreed with the statement “brands that express views on political or social issues are just trying to exploit them,” compared to just 44% of self-described liberals. Inversely, 65% of liberals agreed “I like brands that are willing to get involved in social issues” compared to just 25%. Liberals also appeared to favor soft drinks with lighter branding and health halos, leading conservatives with LaCroix (+7.9), Naked Juice (+5.9) and Snapple (+4.7). Meanwhile, conservatives veered toward A&W Root Beer (+10), Black Rifle Coffee Company (+8.5, with a mere 2.9% of liberals considering the brand) and Folgers (+7.5). But even if conservatives say they consider fewer brands, that doesn’t mean they never try anything new. There’s still bipartisan support for trying unexpected things as 64.1% of both demographics agreed that “Each time I go to a supermarket I end up buying things which I wasn’t intending to purchase.” About 63% of both groups also said they prefer fresh and shelf-stable foods to frozen products. Be warned, however, over 55% of both groups also said they think advertisements are a waste of their time. Catch up quick: J.D.’s Joke? (Diet) Dew Disrespect |
| | 👉🏼 What You Need to Know 👈🏼 | | | Reed’s Inc. has put $6 million back into the company via a combination of share repurchase and just under $2 million in cash from import partner and largest shareholder, D&D Source of Life Holding LTD.
💸 Hong Kong businessman Shufen Deng is the sole owner of D&D Source of Life Holding LTD, which acquired the shares rights agreement from Reed’s last May that injected $5.6 million into the company; it also provided a framework for both D&D and Reed’s to import and export beverages from their respective Asian and American home markets. 💄 According to a 2023 press release, D&D is an investor in multiple consumer goods brands including Waldencast, a “global multi-brand beauty and wellness platform that is currently valued at over $1 billion.” 💬 In a statement, Reed’s CEO Norman Snyder noted plans to leverage D&D’s market presence overseas to expand international distribution while acting to “further build our inventory levels, increase promotional activity, and expand product authorizations.” |
| | | JuneShine is bucking the trend and taking its popular hard kombuchas into the non-alcoholic set after “over six years” of consumer requests. The new line of “Classic” kombucha will be available in five flavors (Mango, Passion Orange Guava, Raspberry Ginger Lemon, Ginger Lemon, and Honeycrisp Apple), sold in 16 oz. clear bottles and sold between $3.99 and $4.29.
🏪 JuneShine’s new set is already available in Erewhon stores in the Los Angeles area and will be moving into around 300 Whole Foods Market locations nationwide starting in December. 🍻 The bev-alc business has been increasing its footprint not only in hard kombuchas and RTD cocktails with the acquisition of Flying Embers, but also in light lagers with the Easy Rider beer line. 💭 The company thinks it can “drive a ton of velocity and demand just through our existing customer base,” said JuneShine co-founder and CEO Greg Serrao. Insiders can read the full story. |
| | | Monster Energy Co. has filed a suit in California federal court alleging that Beast Bites Supplements, Inc., a Florida-based supplement company, markets and sells products that infringe on Monster’s “Beast” trademarks.
📝 In the complaint, Monster demands that the supplement maker stop using phrases like “Beast Bites,” “Unleash the Beast Within!” and “Unleash Your Inner Beast” on products such as creatine-infused gummies and protein brownies. ⏪ Monster obtained the marks for “Beast” and “Beast Mode” from USA Neutraceuticals Group, as part of promoting a line of sports nutrition supplements, according to the complaint. The energy drink maker has also been using the tagline “Unleash the Beast” on its beverages since 2002. Beast Bites began using the mark in 2023. 💭 “Defendant has caused injury to Monster’s business reputation and goodwill, caused a likelihood of consumer confusion, mistake and deception as to the source of origin of defendant’s goods [...] and has otherwise competed unfairly with Monster,” the suit reads. |
| | | Juice and syrup slinger Cheeky Cocktails announced today it has partnered up with New York-based Partners Coffee to create a Decaf Espresso Syrup for coffee lovers and mixologists.
☕ The product is made with coffee that's been decaffeinated via the Mountain Water Process, and mixed with cane sugar and gum arabic. 🍸 The shelf-stable product comes amid the espresso martini’s rise in popularity and is available in two formats: a 4 oz. bottle for $15 and 16 oz. size for $30. 💬 "Customers love our original Espresso Syrup but not everyone can indulge in caffeine after-hours. We are beyond excited to introduce a product that not only offers unparalleled convenience but also delivers exceptional quality and flavor," said April Wachtel, Founder of Cheeky Cocktails. |
| | | August eGrocery sales rose 7%, totaling $9.9 billion versus the prior-year period, according to the latest Brick Meets Click/Mercatus Grocery Shopping Survey. What’s more, all three order fulfillment methods posted year-over-year sales growth.
🚚 Delivery contributed more than half of overall sales gains for the month, growing 10.2% to $3.9 billion, fueled by a continued surge in the number of monthly active users (MAUs). Meanwhile, ship-to-home and pickup sales increased 8.9% and 3.5%, respectively. 📈 August marked the third straight month of high single-digit sales gains for eGrocery, primarily driven by strong promotional efforts for subscription and membership programs that began in May. According to the report, promotional activities have boosted delivery as a receiving method in addition to Walmart’s overall ecomm business – and smaller grocers must find ways to keep up. 💭 “Regional grocers should play to their strengths in fresh foods, private label, and convenient locations while investing in targeted promotions that resonate with existing customers. Creating stronger customer connections via relevant, personalized engagement is vital for building loyalty and competing digitally today,” said Mark Fairhurst, chief growth officer at Mercatus, in the report. |
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