Unit sales and volumes for Zevia were down during Q3, with more drops expected to come as the better-for-you beverage company seeks to solve its supply chain issues. 

Here are the top-level numbers: 

• Net sales: -2.6% YoY ($43.1 million)
• Unit volume: -8.2% YoY (3.3 million equivalized cases)
• Gross profit margin: +2.1 points YoY (45.4%)
• Net loss: $11.3 million, including $1.9 million of non-cash equity-based compensation expense
• Adjusted EBITDA loss:  $9.1 million ($2.1 million in Q3 2022)

The company's Q3 performance didn't come as a total surprise: during the company's last earnings release in August, CEO Amy Taylor acknowledged that supply chain disruptions would continue to impact the bottom line in the near future. Those "short-term supply chain logistics challenges" were blamed for depressing volumes in Q3, which more than offset price increases. 

The brand refresh from earlier this year has also contributed to higher inventory losses, per a release, along with consolidating its network of warehouses from 27 to nine. 

Elsewhere, higher freight and freight transfer costs, plus increased handling and storage costs from holding more inventory, were cited as the cause for a massive jump in selling and marketing expenses during Q3, soaring from $12.9 million (29.2% of net sales) in Q3 2022 to $20.5 million (47.5% of net sales) in Q3 this year. 

The pain is expected to continue at least a little bit longer, as the company is predicting Q4 net sales in the range of $36 million to $39 million. Full year 2023 sales guidance is narrowing to the "high-end" of the range of between $165 million and $168 million. 

On the positive side, Zevia is still in-demand, Taylor said; though household penetration fell from 6.2% to 5.5% YoY, velocities rose 16.2% during the quarter despite challenges with inventory and promotions falling by 26%. Over the past 12 months, households increased their total brand spend and spend-per-trip by 13% each. 

For more on Zevia’s Q3 earnings report, including its deepening ties with a major retail chain and Q4 & Full Year 2023 sales guidance, read the full story on BevNET

Whether it’s traditional staples of roasted turkey, buttered mash & pumpkin pie or more trendy options like fried turkey, cranberry bourbon sauce & jalapeno chili mash, flavor is the key element. A new holiday flavors guide from the flavor experts delivers tasty inspiration for the holiday season. Learn more

Fitness beverage company NOOMA is updating its branding for the first time in ten years to better showcase its drinks’ functionality and use occasions and align with its active lifestyle and fitness-oriented consumer base.

🧃 NOOMA launched in 2013 as a coconut water-based sports drink and has since expanded with a clean energy beverage, a functional soda and a hydration powdered product. All four lines have revamped packaging featuring visual cues and text to guide consumers through each drink’s flavors and value propositions.

🧐  The drink maker also added a new tagline to the front-of-label and changed the name of its functional soft drink from “Recovery” to “Wellness” to give consumers a clearer picture of the brand’s mission.

💻  Along with the new visuals, NOOMA is prioritizing its ecommerce and online distribution strategy as it tries to build more brand awareness before it expands further in brick-and-mortar retail.

Read the full story on BevNET

Dr Pepper is turning up the heat with the launch of its newest LTO, Hot Take. Described as a “fiery take on the original 23 flavors,” the new offering harnesses the power of bold, spicy peppers. 

🏈 Hot Take is the latest edition of the soft drink maker’s annual college football season release. According to the announcement, this year’s flavor pays homage to “all the hot takes” that come with the college football fandom. 

🥃 In 2022, Dr Pepper rolled out its limited edition Bourbon Flavored Fansville Reserve beverage inspired by the tradition of tailgating.

🎫 Starting today, fans can get their hands on Dr Pepper Hot Take in two ways – by logging into or enrolling in the Pepper Perks program and playing a scratch-and-win for the chance to score the LTO or by redeeming 3,000 rewards points.

Keurig Dr Pepper has named current GM of Coffee Operations and eight-year company veteran Patrick Minogue as its new U.S. Coffee president.

✔ ️ Before coming to KDP, Minogue worked in bev-alc serving for five years as a brand manager at MillerCoors and for more than four years at Bacardi in marketing. The news came in a wave of executive appointments within KDP including the elevation of Andrew Archambault to U.S. Refreshment Beverages president.

📉 In the company’s Q3 earnings call last month, leadership reported its coffee category had dragged down numbers with CEO Robert Gamgort emphasizing a focus on club and ecommerce sales to reinvigorate its at-home coffee business.

There’s never been a better time to talk to BevSource about your Can needs! We’ve leveraged our purchasing power to give you unbeatable 2024 rates and supply assurance while providing the support beverage brands have come to expect from us. Net 60 terms, no dunnage fees and hassle-free transitions. Learn more

With regenerative becoming a buzzword in CPG, one company is bringing the movement to spirits. 

🌏 On the heels of launching canned cocktails in April, yesterday Anytime debuted Farmhouse Vodka and Gin, the first spirits to earn regenerative organic certification. 

👩🏼‍🌾 There are a few different regenerative certifications, and Anytime isn’t the first spirit company to use regenerative grains or work with regenerative farms. But the founders, a duo with a combined 15 years of experience in sustainable supply chains for food companies, claim that the certification guarantees a clear message to consumers increasingly looking for sustainable callouts. 

🤑 But Anytime Farmhouse Vodka and Farmhouse Gin have SRPs of $39.99 and $44.99 respectively, making them expensive cocktail additions and about $10 over most organic vodkas and gins — how much of a premium will drinkers pay for a regenerative certification too?

Read the full story on BevNET

The nominees for BevNET’s “Best of 2023” Awards, presented by Zuckerman Honickman, showcase the diversity and profound talent within the beverage industry. These nominees stand out for their contributions, whether it's redefining established categories with innovative products, captivating consumers through compelling marketing campaigns, spearheading ethical ingredient sourcing and business practices, or crafting irresistible beverages that we just can't get enough of.

See the full list of nominees on BevNET.

Mari Llewellyn and Greg LaVecchia, the co-founders of wellness brand Bloom Nutrition, spoke about why it's important to “let the creators create” on social media, how they measure the return on investment on social platforms, why hiring young talent has been key to success on TikTok and how they’ve supported Bloom’s relationships with Target and Walmart.

Listen to the full episode on BevNET