• 🏛️ Texas Amends Hemp Bill 
• ⚖️ PepsiCo Must Pay In Tax Case
• 💰 SBA Installs New Grant Program
• 🇮🇹 Brown-Forman's Italian Distribution
• 🔀 Monday Moves

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The impact of celebrity associations on a beverage business can span a wide spectrum – from helping spur sales to exposing a shallow (or controversial) relationship. When Spider-Man swung by last week’s Beverage Forum event in California, his stance was clear: maybe a star-studded figure head doesn’t have to do it all. 

The L.A.-based event was already poised to go deep into an area that L.A. Libations CEO Danny Stepper holds near and dear: brands’ relationships with celebrities. 

• Famous brand founders like racer Lewis Hamilton, wrestler/Gawker slayer Hulk Hogan, and podcaster/author Jay Shetty had each been previously announced as panelists or speakers who would share insight into brand strategy.

But Stepper had a mild surprise in store (given last year’s pop-in by Robert Downey, Jr. on behalf of coffee brand happy), when BERO co-founder, actor and Zendaya consort Tom Holland showed up to join a discussion between Stepper and BERO CEO John Herman. BERO, launched in October, is backed by investor Imaginary Ventures.

Holland, currently best known for his work in the Spider-Man franchise, was nothing if not humble.

Throughout the conversation, he continued to downplay his work on the business side – at one point noting that he doesn’t really make any “financial decisions,” although he made it clear that he was more useful when it came to marketing and creative ideas, as he’s been acting since he was 13 years old.

“Tomorrow we have our board meeting, and I’m really looking forward to being confused for an hour,” Holland said, adding that he’s been asking for a key during slide presentations to help him understand the acronyms that are frequently thrown around by beverage executives.

Check out the full story for all of the insight and full scoop on celebrity surprises at the Forum.

The hemp beverage industry dodged a potentially deadly pitfall in the Lone Star State last week as the Texas House committee on State Affairs revised a bill regulating retail distribution for hemp products. 

✅ The current version of Senate Bill 3 will allow the sale of intoxicating hemp beverages to continue in the state.

🥴 The revision restricts sales to Delta-9 THC in low-dose beverages, tinctures, edibles and other consumables “as long as they do not resemble a common snack marketed to children.”

🙈 The bill is not out of the weed(s) yet: it still needs to be passed by the House assembly and then will go to the governor’s desk, who has expressed opposition to allowing intoxicating hemp sales to continue in Texas.

Go Deeper: Breaking Down Bev-Alc’s Hemp Beverage Stance

PepsiCo will still have to pay $2.1 million in penalties for attempting to avoid state income taxes by categorizing expatriate Frito-Lay employees working outside the U.S. as foreign payroll, so ruled a three-judge Illinois Appellate Court panel last week.

• Pepsi had created a shell company called PepsiCo Global Mobility LLC that claimed to employ numerous American team members working internationally. The panel disagreed, saying “it is clear” the shell was not the expatriates’  true employer.
• Through this model, PepsiCo excluded around $2.5 billion annual Frito-Lay profits from business income calculations between 2011 and 2013, taking its tax liability to zero.
• Despite previous attempts to challenge the decision, this latest ruling affirms that PepsiCo’s penalty will stand at $2.1 million.

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The Small Business Administration (SBA) opened applications for a new $1.1 million grant program as part of its Made in America Manufacturing Initiative.

• Funds will be allocated to three organizations for training and technical assistance purposes
• The grants fall under SBA’s Empower to Grow Program, originally known as the 7(j) Management and Technical Assistance Program
• Applications are open until May 12; Businesses must be at least three years old and have regional or national manufacturing experience. 

🤔 The news comes as the SBA upped fees and rolled back underwriting standards on all 7(a) loans allocated through the agency, ended hardship extensions for the controversial EIDL program and cut 43% of its 5,931 full-time employees headcount. 

Go Deeper: SBA Cancels EIDL Loan Hardship Accommodation Program

American liquor giant Brown-Forman Corporation is expanding its European distribution network into Italy with the launch of a new distribution wing based out of Milan.

🥃 Italy is a top five spirits market in the European Union and Brown-Forman has had success in the country with Jack Daniel’s and Gin Mare. But owning and controlling its own distribution will be a major strategic shift, the company said.

📣 Take the word of Yiannis Pafilis, the company’s EVP and President for Europe, Africa and Asia Pacific: "[We] can deepen our collaboration with Italian trade partners, accelerate growth for key super-premium brands … and further strengthen the presence of our iconic American Whiskey portfolio”.

🇪🇺 Italy’s not unique though. Brown-Forman has already made similar distribution moves across Europe including the U.K., France, Germany and Spain among other countries.

Catch Up: Brown-Forman To Focus On Revamping El Jimador, Jack Daniel’s Activations Amid Tariffs

Here’s a taste of the people and products moving around the industry to start off your week. 

🥤 Minneapolis, Minn.-based Bizzy Cold Brew has expanded its presence across the Northeast after landing at Hannaford Supermarkets.

🌵 Caliwater is rolling out to select Costco stores nationwide this month with its new 15-pack variety case featuring Wild Prickly Pear and Watermelon flavors. 

🍹 Non-alcoholic RTD cocktail maker Parch launched a new Superbloom Sampler Variety Pack exclusively at Sprouts Farmers Market featuring three flavors: Prickly Paloma, Spiced Piñarita and Desert Margarita. 

🫖 JUST Ice Tea is now stocked at more than 1,700 CVS Health stores nationwide. 

☔ Sparkling Ice maker Talking Rain Beverage Company appointed Lisa Holcomb VP of Brand to help find new ways to create connections with consumers. 

Secure more distribution updates from around the industry on BevNET.