Also, tequila industry's troubling new numbers͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetJanuary 29, 2024
DAILY BRIEFING
Today's news & insights for the beverage industry.

In this issue of Daily Briefing

  • 🏪 In the Corner: Is This Dispensary the Future of CannaBev?
  • 🤔 Recover 180 Does A… 180?
  • 🧃 Ocean Spray Gets “Wildly Uncommon” With Rebrand

📰 Today's Top Story

🏪 In the Corner: Is This Dispensary the Future of CannaBev?

🏪 In the Corner: Is This Dispensary the Future of CannaBev?

In a small shopping center just off Interstate 93 in Medford, Massachusetts, about a 10 minute highway drive from downtown Boston, there’s a liquor store that sells hemp-derived delta-9 THC drinks. A sign o’ the times for sure, but not as much as what you’ll find just around the corner in the same parking lot. 

There, in a large building that was once part of a car dealership, an even bolder experiment is taking place: the Hi-5 Beverage Dispensary, a first-in-the-nation venture in the burgeoning cannabev industry that kicked off last week. 

The concept is as brave as it is simple: inside a separate, standalone location that shares a wall (but no door) with a full-service recreational cannabis (21+) dispensary, multi-state operator Theory Wellness has created a beverage-exclusive store: walk in and you’ll find industrial-size glass door refrigerators stocked (to start) with cold cans of low-dose infused drinks from Cann, Good Feels and its in-house brand, Hi-5

Unlike a modern dispensary, in which broad product variety is highly valued, Hi-5’s store aims to serve drink fans directly, with a corner store-type experience built around convenience and value: individual units are priced at around $2 and 4-packs at around $6 to $7, or about the cost of a single can in many dispensaries. 

Agreeing to hit that lower price -- and take away another potential barrier to entry for curious consumers -- is an essential piece of getting new brands on board, said Theory’s chief marketing officer Thomas Winstanley, as the company looks to defend its claim of guaranteeing the best prices and selection in the state. 

“We wanted to keep it really streamlined, because I think the beverage users who are coming to buy beverages, they know what they want. And if we can create an experience where we're showing all the product on these big floor-to-ceiling coolers on the back wall, they're going to be able to visually see exactly what's there.”

And that takes us back to the liquor store around the corner, which is now direct competition for Hi-5. If customers can pick up THC-infused drinks alongside their other beverage buys -- and if enough of them aren’t deterred by price -- then why should they make an extra stop at Hi-5? On the other hand, as adoption spreads, shouldn’t the new dispensary’s selection, price structure and capacity of inventory appeal to that audience as they embrace the category?  

At this point, Winstanley noted, the store is a “jumping off point” for a bigger conversation around the future of THC drinks. If nothing else, the company is sure to emerge from the experience with a deep and growing knowledge of the complex and potentially massive category. 

“What we really want to do is to just give everybody the opportunity to try,” he said. “I love the Steve Jobs quote: ‘give the people what they want, but introduce them to things they didn't know they needed.’”

Stay tuned to BevNET for more on Hi-5’s ambitious new concept

 

👉🏼 What You Need to Know 👈🏼

😟 Tequila Trouble? We Check the Numbers

😟 Tequila Trouble? We Check the Numbers

Tequila exports fell for the first time since 2009, illustrating how the rising category may be losing a little steam after rapid growth. 

📉 Exports came to 401.4 million liters in 2023, a decrease of 4.2% compared to 2022, according to a new report from the agave spirit’s regulatory body. The U.S. remained the largest destination for tequila exports, but decreased 5% compared to the prior year. 

🇺🇸 The decline was blamed on lower dynamism in the U.S. economy, competition in distribution channels and the rising price of agave (however, prices have recently started to fall). 

🔮 Since consumers began trading down last year analysts have been asking if the tequila bubble has popped, but a more interesting question might be what’s the next tequila? Will a spirit like rum leverage premiumization intro popularity or will other agave spirits like mezcal find broader appeal?

Read the full story on BevNET

 

🤔 Recover 180 Does A… 180?

Having made a blockbuster with BodyArmor, how could serial beverage entrepreneur Lance Collins resist trying his hand at a sequel, of sorts? This week he’s officially back in the sports drink game with the relaunch of organic hydration brand Recover 180.

1️⃣ The brand was originally launched in 2018 by real estate developer Mike Meldman with different packaging, formulation and flavors. Beverage Business Insights reported in October that Meldman recruited Collins to help develop the brand in 2022.

🏆 Collins is now acting as founder of the revamped brand, and is being backed by a roster of pro athletes including NBA stars James Harden and Austin Reaves, retired Super Bowl champs Rob Gronkowski and Drew Brees, and NFL hall of famer John Elway, among others.

🛒 The 16 oz. drinks are launching nationwide in Sprouts and QuikTrip stores, as well as regional retailers King Soopers, Fred Myer and Smiths, priced at $2.49-$2.79 per bottle. It is also sold online via Amazon for $29.99 per 12-pack.

 

🧃 Ocean Spray Gets “Wildly Uncommon” With Rebrand

For a 95-year-old company like Ocean Spray, reimagining its branding can mean getting a little “wild.” Today, the cranberry juice cocktail maker launched its first “significant” brand change in over two decades which pays homage to the co-op’s nearly 700 family farmer network while bringing a bold look to the brand with new label imagery, typography and tone.

💭 Ocean Spray partnered with Stone Strategy & Design for the rebrand that reimagined the co-op’s familiar wave and cranberry fruit visuals. The refreshed labels have already begun to roll out across Ocean Spray’s beverage lines and is featured on new Chocolate Dipped Cranberry Bites.

😏 “Guided by the desire to show up in wildly uncommon ways and be unapologetically offbeat, allowed us to lean into what makes the co-op so unique” and "shepherds us into the next generation while remaining true to our legacy," said Ocean Spray head of brand elevation Eliza Sadler.

🍹 The company recently launched its first Zero Sugar beverage, released a LTO Cran x Dragon Fruit blend on Amazon, and partnered with Absolut on a Vodka-Cranberry product line.

 

🎧 Now Streaming

🎙️ Taste Radio: Gen Z’s ‘Natural’ Power Is Vast & An Early Take On Expo West

🎙️ Taste Radio: Gen Z’s ‘Natural’ Power Is Vast & An Early Take On Expo West

Ray shared takeaways from a recent event hosted by private equity firm Manna Tree, including a shift in most important product attributes for consumers of natural brands, and how Gen Z and Alpha’s current spending patterns can inform brands about where to invest their resources. Read the story.

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