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| DAILY BRIEFING | | Today's news & insights for the beverage industry. |
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|  | In this issue of Daily Briefing | - 🇺🇸 Electrolit Moves Manufacturing North
- ⛲ Snapple Goes to Fountains
- 🤿 Dyla Dives Into “Flavor Lab”
- 💗 Loverboy Falls For THC
- 🥡 Wonder Bags Grubhub for $650 Million
- ✨ Bedazzled Beverage Packages Anyone?
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| 📰 Today's Top Story | | | The largest private-label fermented beverage manufacturer in North America is brewing up something other than kombucha.
FedUp Foods is careening into coffee, launching a line of Regenerative Organic Certified (ROC) cold brews this week. They’ll be produced out of its recently opened Wilmington, N.C. facility. The Wilmington site is the North Carolina-based company’s third manufacturing facility and became operational on Oct. 1. The facility adds capacity of roughly 70 million bottles annually, part of the company’s three-year plan to move into cold coffee production. In Wilmington, FedUp is also able to produce its flagship fermented beverages such as kefir soda, kombucha, tepache and probiotic drinks. Coffee extends the mission-driven company’s impact innovation model to create environmentally and nutritionally sustainable beverages, said co-founder Zane Adams. “We are brewers and fermenters by trade and by passion,” he said. “Coffee is one of those places in our food chain that is always pretty sexy. But also has a history where impact can be substantial by just changing a few things in how it is grown and processed.” Although it is just beginning its journey as a private-label coffee manufacturer, Adams said he expects to extend the capabilities with a Buchi-branded version of cold brew in the next 12 to 18 months. The recent devastation incurred by Hurricane Helene in FedUp Foods’ Asheville, N.C. hometown made the brand’s mission to support healthy and sustainable food systems even more imperative, Adams said. BevNET Insiders can access the full story to learn how FedUp is working to carve out sustainability-minded space in the crowded coffee category. |
| | 👉🏼 What You Need to Know 👈🏼 | | | Mexican pharmaceutical company Grupo PiSA has been riding the rocket ship of its Electrolit hydration drink brand over the last decade, culminating last year when it landed a major distribution deal with Keurig Dr Pepper (KDP). Now the brand is laying down roots in Texas after announcing plans to construct a production facility in Waco, set to open in 2026.
🏭 The “state-of-the-art” 600,000 sq. ft. site is described as a “highly automated production and distribution facility” that will employ “over 200 skilled professionals and technicians” when it comes online. ♻️ With an eye towards sustainability, it will have the capacity to incorporate non-virgin and recycled packaging materials, and will use rail infrastructure for outbound distribution to reduce its carbon footprint. 📈 In addition to the current scarcity of aseptic beverage copackers, the move reflects Electrolit’s importance within KDP’s family of distributed brands: the company’s most recent earnings report cited the sports drink’s role in driving 4% volume growth within its U.S. Read the full story on BevNET. |
| | | Keurig Dr Pepper-owned Snapple will soon add fountain beverage to its résumé. For the first time in its over 50-year history, the RTD tea and juice brand will be available in a fountain format after inking a partnership with 7-Eleven, Speedway and Stripes stores nationwide.
🍑 The c-store banners’ beverage fountains will dispense Snapple’s Zero Sugar Peach Tea, which, according to Circana data, has been the number two best-selling zero sugar tea in the convenience channel for the past three years. 💭 “Retailers are looking to offer a variety of beverages for consumers on fountains that satisfy both impulse treat and better-for-you occasions,” said Sheila Bonner, SVP of Foodservice Solutions at Keurig Dr Pepper, in a statement. “Introducing an iconic brand like Snapple to this format, particularly in the Zero Sugar variety, hits on that need on the go.” |
| | | Chasing trends can be a risky proposition in the fast-moving beverage business – unless you happen to be built for speed. That’s the idea behind the creation of Dyla Brands’ new 10,000 sq. ft. “Flavor Lab,” designed to allow the drink mix maker to quickly tap into demand for unique custom co-branded flavors and packaging inspired by social media influencers.
🆕 Founder and CEO Neel Premkumar said the New Jersey-based facility – operating with about 10 employees – will allow Dyla to come up with new products, but also create small batch, custom orders for individual purchase or co-branded corporate events. Read the full story on BevNET for all of the insights. |
| | | Upstart beverage brand Loverboy is making the move into non-alcoholic drinks, but not maybe in the way you think. Kyle Cook’s (known for his part on Bravo’s Summer House series) company already produces boozy hard teas, spritzes and cocktails. Now it is releasing three zero-sugar, hemp-derived THC drinks (5 mg each) in 12 oz. cans.
🌷 The new line, dubbed Flowerboy, is billed as a “social soda” and comes in Classic Cola, Grape Soda and Orange Soda flavors. Tweleve-packs will sell for $32.99 online, with retail availability yet to be confirmed. 💒 As for the name? Per some Bravo fans, it’s a nod to the role offered to Cook in his best friend’s wedding. |
| | | Wonder is acquiring food ordering and delivery platform Grubhub from Just Eat Takeaway.com in a transaction valued at $650 million. The deal is expected to close in Q1 2025.
🍴 Founded by serial entrepreneur (and former Walmart exec) Marc Lore, Wonder is working to create a “super app” for mealtime featuring exclusive offerings from top chefs and restaurants that are delivered in less than 30 minutes. (ICYMI: Wonder also acquired distressed meal kit company Blue Apron last year). 🤑 In addition to the Grubhub deal, Wonder announced today it has raised an additional $250 million in capital from new investors. Earlier this year, the startup secured $700 million, at the time bringing its total funding to $1.5 billion. |
| | | | On the list of things we didn’t know we needed until now: check out Massachusetts-based artist Linda Dolack’s mixed media art collection, which prominently features discarded food and beverage packaging that has been recycled (could we call this upcycled?) and repurposed with glittering glow-ups.
For all of you CPG aficionados out there, we are here to let you in on a secret: you can be the proud owner of a bedazzled carton of Hood Heavy Cream for a measly $3,300. Adding this one to our holiday gift lists! |
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