Plus, Kroger/Albertsons amend divestiture plan͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetApril 22, 2024
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👉🏼 What You Need to Know 👈🏼

📊 Data: THC Taking Down Alcohol?

📊 Data: THC Taking Down Alcohol?

The relationship between alcohol and cannabis continues to evolve, but new data from Numerator suggests that marijuana’s move into the mainstream has come at a cost for some categories (booze) and to the benefit of others (snacks). 

🔍 The research comes from a survey conducted this month of nearly 6,000 present and past self-reported THC & CBD users, as well as an analysis of the verified buying behaviors for these same individuals. 

🍸 In terms of alcohol, it’s true that around 36% of THC users surveyed report reducing their alcohol consumption since they began to use cannabis products, but also that users are more likely to buy alcohol than non-users. Daily THC users spend 15.3% of their grocery dollars on alcohol, infrequent users spend 18.1%, and non-users spend 14.3%.

🛒 It’s cliche, but true: cannabis users are in a snacking mood at grocery, outspending the general population on sports & energy drinks (1.7x), beer (1.3x), frozen sandwiches (1.3x), spirits (1.1x), frozen pizza (1.1x), and frozen appetizers (1.1x). Daily users, meanwhile, show an outsized love for candy, frozen potato snacks and packaged sweet snacks.

🥡 More THC users is good news for limited-service restaurants and food delivery apps: users are 61% more likely to have ordered from Doordash and 35% more likely for Uber Eats. 

  • What are they munching on? 31% for Little Caesars Pizza, 28% for Jersey Mike’s Subs, 22% for Taco Bell, 22% for Jack in the Box, 19% for Pizza Hut, 19% for Dominos, 17% for Wawa, and 16% for Popeyes.
 

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🤝 Kroger/Albertsons Update Divestiture Plan With C&S

🤝 Kroger/Albertsons Update Divestiture Plan With C&S

Two months after the Federal Trade Commission (FTC) completed a review of Kroger and Albertsons’ proposed supermarket mega-merger and filed a lawsuit to block the deal, the grocery chains have added more store locations and assets to an updated version of their definitive divestiture agreement with C&S Wholesalers.

  • The new agreement is valued at approximately $2.9 billion
  • Kroger and Albertsons have added an additional 166 stores to the deal, bringing the total planned store divestments in relation to the merger up to 579. 
  • The retailers also ramped up the amount of support assets, including access to larger distribution facilities, transition services agreements and a new dairy facility.

Check out the full story for all of the details.

 

6️⃣ Six Questions With New Riff Distilling Founder Ken Lewis

6️⃣ Six Questions With New Riff Distilling Founder Ken Lewis

“Hire the best people, define the mission clearly, give them the best tools, get the hell out of their way.” That is just one piece of wisdom we gleaned from New Riff Distillery founder Ken Lewis, who retired last month after 50 years in BevAlc. 

🎉 Lewis set out to create one of the greatest small distilleries of the world, and he’s also the man behind The Party Source, Kentucky’s largest spirits retailer. But at one point the chain became too corporate, and he sold five of his six stores (and turned out as much of a profit in two years with just the one store). 

💸 That’s part of why Lewis stands by his mission to create great small distilleries, and deliberately eschew the sole pursuit of profits. “Pick a side, he said. “You can’t make great whiskey and price it so ordinary whiskey lovers can afford it and maximize profitability.”

💬 Before he hung up his hat, we chatted more with Lewis about how remaining small benefited the business, what became the distillery’s “slingshot” versus the Goliaths, and how the bourbon boom’s consequences have caught up to producers. 

Check out the full interview on BevNET.

 

⛔ Pepsi Faces Trouble With Teamster Chapters Across Three States

A total of five Teamster unions spanning Illinois, Indiana, and Iowa have filed complaints against Pepsi with the National Labor Relations Board (NLRB) due to a rule from the soda giant that prohibits workers from discussing their wages, hours and terms of employment. 

  • The unfair labor practice charges come as three of the chapters – Local 727 and Local 673 in Illinois and Local 135 in Indiana – are amid new contract negotiations
  • The teamster-backed complaint also alleges that Pepsi’s policies discourage workers from joining a union or filing charges with the NLRB. 

💬 "While Pepsi should be at the bargaining table to reach an agreement that rewards the hardworking Teamsters who keep operations moving, the company is subjecting our members to antiquated and illegal work rules that violate their basic rights," said Jeff Padellaro, director of the Teamsters brewery, bakery, and soft drink conference.

 

🧊 Obey Your “Chill”? Sprite Launches New Flavor

Spring has sprung which means Summer limited-edition flavors are on the horizon. Coca-Cola’s Sprite is shaking things up with the launch of its new “Chill” innovation. The Cherry-Lime flavor offers a cooling sensation that claims it will be the “coldest-est” (whatever that means) Sprite ever.

🥶 Announced at NACS in the fall, Sprite Chill is packaged in 12 oz. slim cans and rethinks the CSD’s previous branding with a light blue color palette and typography. The innovation follows Coke’s latest innovation: Coca-Cola Spiced.

🏀 The new soft drink has locked in a partnership with NBA’s Atlanta Hawks point guard “Ice Trae” Young to serve as an ambassador. The alignment with basketball could be a response to PepsiCo’s Starry Lemon-Lime soda that launched last year.

 

🆕 Nude Beverages Acquired By Pernod Ricard Subsidiary

Pernod Ricard’s Canadian subsidiary added another RTD maker to its portfolio with the acquisition of Nude Beverages this weekend. 

  • Pernod Ricard-backed Ace Beverage Group (ABG) has agreed to acquire Canadian RTD brand Nude for $8 million ($11 million CAD).
  • Ace was scooped up last year in a $124 million deal by Corby, Canada’s second largest marketer and distributor of spirits and wines, which is majority owned by Pernod Ricard.
  • The current transaction gives the group access to more market share in Western Canada via the low-ABV, sugar-free brand.

💭 In the U.S., Pernod Ricard’s RTD strategy has shied away from acquisitions and leaned on using recognizable names for its RTD and RTS offerings, like its partnerships with Sprite and Ocean Spray, and RTS extensions of its major spirit brands.

Stay tuned for the full story on BevNET.

 

🍹 Review: Aplós Cocktails

🍹 Review: Aplós Cocktails

Capitalizing on the growing popularity of hemp-infused beverages, Aplós has entered the RTD realm with its 2-SKU line of non-alcoholic cocktails. Both flavors – Ume Spritz and Chili Margarita – feature 20 mg of broad spectrum hemp per 8.5 oz. can. Are Aplós Cocktails a welcomed addition to the rapidly expanding non-alcoholic cocktail segment? 

Find out by reading the full review on BevNET.

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