• 🌳 Seedlip Founder Looks To The Trees
• 🚚 Distribution: Blue Monkey Goes Abroad
• 🧪 Health-Ade Settles PFAS Class Action
• 💸 Slate Milk Lands New $9.5M
• 🍜 Side Hustlers, Noodle Lovers & T-Pain

Consumers want more from energy drinks—hydration, focus, mood enhancement and muscle support. Manufacturers are responding with functional ingredients like ashwagandha, BCAAs, and natural caffeine to meet the growing demand for healthier options. Learn more

Citing concerns over public health, California Gov. Gavin Newsom proposed heavy restrictions on “intoxicating hemp products” Friday. Through an emergency regulation, Newsom proposed removing food and beverage products containing hemp extract from stores within the Golden State.

“We will not sit on our hands as drug peddlers target our children with dangerous and unregulated hemp products containing THC at our retail stores,” Gov. Newsom said in a press release. “We’re taking action to close loopholes and increase enforcement to prevent children from accessing these dangerous hemp and cannabis products.”

The executive order puts very stringent regulations on hemp-derived THC products, including  delta-8 and delta-9 tetrahydrocannabinol along with 30 new cannabinoids added to the state’s list. The new regulations ban any detectable quantity of THC from industrial hemp products meant for human consumption – which includes food, food additives, beverages and dietary supplements. This means that the new milligram limit for hemp-derived THC products is zero, relegating all THC product sales to the recreational adult-use and medicinal dispensary channels.

The regulations also age-gate hemp extract products at 21 years or older with packages restricted to 5 servings. The move is intended to place harsher restrictions on the hemp extract industry. The incidence of children unknowingly buying and consuming THC-containing products has risen with the explosive growth of intoxicating hemp-derived cannabinoids like Delta-8 and Delta-9 THC, according to Newsom.

Newsom lobbied for California’s Proposition 64, or the Adult Use Of Marijuana Act which legalized cannabis in the state, as lieutenant governor in November 2016. As governor he went on to help pass the state’s Assembly Bill 45 in November 2021, which addressed the use of industrial hemp as an adulterant in food and beverage.

“None of us expected the kind of exploitation that we've experienced in the hemp industry since,” he said in a Friday afternoon press conference. “What we're doing today, as relates to emergency regulations, is because of that exploitation – because of the greed of many folks in the industry.”

BevNET Insiders can access the full story to learn how California’s new controls compare to other recent efforts to reign in hemp products by states across the country.

Many of the world’s finest spirits find their depth of flavor coming from aging in wood barrels. Ben Branson is taking it one step further by trying to harness the unique flavors of wood earlier in the process by experimenting with distilling trees. 

🆕 The Seedlip founder is seeking to create something new in dark NA spirits by bringing innovative techniques and technology to the alcohol-free category with Sylva Labs; the lab is using sonic maturation, oxygenation, pressure, vacuum kiln toasting and heat to extract the flavor, color and character of various tree species.

🌲 The model is focused on small-batch, limited releases that will only be available in the regions they are produced. The first release is called Paduak, using a West African red wood along with American oak from spent Scotch barrels and rye grains.

🐝 The new venture follows on the release of NA bitters brand Seasn earlier this year. Both Sylva Labs and Seasn are part of Branson’s Pollen Projects.

Read the full story on BevNET for all of the details.

Here is a roundup of the latest distribution news from around the beverage industry to kick off your week.

🐒 Natural beverage brand Blue Monkey is growing its global reach with new partnerships with importers and international distributors, adding accounts like Sam’s Club China, EMART in South Korea, and new plans to add U.K. and Australian locations.

🦉 Canned cocktail brand NightOwl Espresso Martini is now available via Republic National Distributing Company (RNDC) in New York, effective September 1.

🏈 GoodDays Classic Cocktails has partnered with Kennesaw State University’s Owls to be the Official RTD Cocktail of KSU Athletics, now offering the canned drinks at sporting events at the university.

☘️ Lucky Energy is now on sale in 7-Eleven stores in Orange and San Diego counties in California, CMO Hamid Saify announced last week.

At Global Organics, we’re passionate about bringing you the best organic ingredients from around the world. For over 30 years, we’ve been a trusted partner, offering reliable supply and complete transparency. We’re here to help you craft products with quality that you can count on. Learn more

Health-Ade has reached a settlement agreement on a proposed class action lawsuit that alleged its kombuchas contained forever chemicals. Terms of the proposed settlement have not been disclosed.

👩🏽‍⚖️ Law360 reported that the company came to an agreement on Thursday with the lead plaintiff in the case, and the judge dismissed the lawsuit with prejudice pending a 30 day period to refile the case should the settlement deal collapse for any reason.

❤️‍🩹 The lawsuit, filed in January, alleged that Health-Ade kombucha was found to contain measurable levels of per- and polyfluoroalkyl chemicals (PFAS), which have been linked to cancer, fertility issues and other health conditions.

Slate Milk is adding new muscle to its balance sheet with an infusion of $9.5 million of fresh capital, according to a SEC filing from last week. Slate appears to have added some new members to its board with Yasso co-founder Drew Harrington, Yasso CEO Craig Shiesley and Jonathan Rabovsky added as directors according to the SEC document.

💰 Most recently, Slate Milk had closed a $10.5 million round in January 2023 which included investment from the the family office of Boston-based venture capitalists Rob Smith, Jimmy Berylson and Brian Knez.

🏀 Along with new equity partners, Slate has leaned into its collegiate and professional athlete credentials with deals with the UFC and college basketball influencers the Cavinder twins. Slate has also delved outside of the drinkable format with a gluten-free, zero-sugar chocolate chip cookie for those preferring an edible way to pack on some protein.

Was Newtopia Now worth a visit? Why are founders flocking to San Diego? Is “Side Hustlers” the new “Shark Tank”? What’s going on with instant noodles? And, is drinking pastrami a real thing? All good questions. The hosts have answers.

Listen to the full episode now.