• 🆕 This Week's New Products
• 🧑🏻‍⚖️ Logan Paul v Lionel Messi
• 😃 Distribution: HappyPop Takes Texas
• 🪧 Teamsters Expand Bigfoot Strike
• 🛒 Retail: Amazon Tests WFM Warehouses
• ☕ David, Decaf & Daiquiris. They’re All Trending.

Consumers want more from energy drinks—hydration, focus, mood enhancement and muscle support. Manufacturers are responding with functional ingredients like ashwagandha, BCAAs, and natural caffeine to meet the growing demand for healthier options. Learn more

Inflation might be on the decline but despite all the economists’ posturing and recent interest rate cuts by the Federal Reserve, grocery shoppers are still feeling the pinch at the till. That trend will likely impact how much grocery retail grows in the near term.

The U.S. grocery market is expected to grow 1.1% in 2024, pulling back from 3.9% in 2023, according to a recent Coresight Research report “Market Navigator: US Grocery Retailing—Igniting Unit Growth in a Low-Inflation Environment.” The data insights firm projects that retail volumes will decline 0.1% this year “as consumers remain judicious with their spending amid heightened economic concern.”

How will this shake out for brands and retailers? Coresight predicts that retailers will “ramp up promotional activities to rebuild volume sales and stimulate topline growth.” Those activities are being informed by lack of consumer appetite for high prices and aim to cushion some of the blow of a modern day grocery bill.

Price sensitivity will determine who benefits from the current environment. Discount stores and mass retailers will continue to capitalize on inflation-weary shoppers. Major mass chains have increased their share of the pot from 18.4% to 19.4% between 2017 and 2023. Retail giant Walmart remained top of the heap with 21.6% of total grocery sales in 2023.

Many major grocery chains are increasing their private label ranges to grab share; these efforts also create a more competitive environment for independent brands to operate. The focus on private brands has already begun to expand from straightforward value products into premium offerings. See Walmart’s recently launched bettergoods range as a primary example that embraces plant-based items and global flavors. 

That tougher to compete landscape could lead to more consolidation on the independent brand horizon. That could mean more smaller brand roll ups (i.e. Our Home and Ahimsa) to compete on price, scale and in-store visibility or traditional acquisitions by large strategics (we see you PepsiCo and Mars).

Where should brands be focusing investment? Even though the reliance on ecommerce has contracted from its pandemic-driven highs, online grocery sales are expected to grow. The ecommerce penetration rate in food and beverage will “increase to 6.9% by 2028, versus 2.1% in 2019,” Coresight predicted in its report. This will be driven by retailers' continued investment in delivery and online shopping platforms, efficiency in fulfillment and a general increase in consumer comfort in navigating the ecommerce channel.

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It’s Haydon’s candor and thoughtfulness around this journey that will be exceptionally instructive. As a founder and leader from an unconventional background who was able to build the resources and fortitude to take her company through key challenges into a bright future, she’s got a story that’s as insightful as it is inspirational.

Register for BevNET Live Winter 2024 today and save $100 per registration (valid through Friday, October 25th). 

This week’s new product launches feature a bitter new line from a legacy liqueur brand, LTOs and an “innovation suite” from Generous Brands, the beverage business formerly known as Bolthouse Farms.

🍸 Legacy Italian liqueur producer Luxardo is introducing a new line of aromatic-infused cocktail bitters, including Cherry, Coffee, Chamomile, Orange and Rhubarb varieties. Aimed at both pro and home bartenders, the line can be used for mixing a slate of new and classic cocktails from Old Fashioneds to Espresso Martinis.

👻 Jones Soda is getting spooktacular with a line of Halloween themed craft sodas, with names like Zombie Juice and Blood Sucker. 

🎄 Meanwhile, Laird Superfood is preparing for the December giving season with the launch of a Holiday Mushroom Bundle.

🫐 Generous Brands has announced an “innovation suite” of new products under the Bolthouse Farms, Evolution Fresh and SAMBAZON brands. They include Super Smoothies, functional sodas, and single-serve açaí juices.

Check out the full gallery on BevNET.

Logan Paul’s and KSI’s PRIME Hydration is back in the courtroom, this time defending itself against a lawsuit from Mark Anthony Brands International, which is seeking a declaration from the court that its Mas+ brand, made in collaboration with soccer icon Lionel Messi, doesn’t violate PRIME’s trademarks.

🟦 According to Law360, it was Prime that initially threatened legal action against Mark Anthony Brands, claiming that the packaging design of Mas+ was too similar to PRIME’s bottles.

📜 Mark Anthony Brands, best known as the maker of White Claw, claims that PRIME is trying to “monopolize functional design features that are commonplace” in sports drinks and accused the influencer-founded brand of “anti competitive threats.” The company is seeking declaratory judgments that it has made no trade dress or trademark infringements.

⚽ Mas+ by Messi was announced this Spring and unveiled its design in June. The brand’s perceived similarities to PRIME didn’t go unnoticed at the time – fans of Logan Paul and KSI were quick to call out the design on social media. Both companies make use of bright, saturated color schemes and PET bottles with indented ridges.

Catch up on PRIME’s legal woes: Refresco Files $67M Lawsuit Against PRIME

🙂 In the six months since HappyPop launched, it's already had an unexpected viral moment and a packaging refresh. Now, the functional energy drink brand is setting its sights on Texas, announcing it will be in 10 Central Market stores by the beginning of November

☕ Nguyen Coffee Supply announced some big moves in the Albertsons retail family with its bagged beans making their way into over 400 banner stores as well as locking in a new RTD coffee deal with Chicago-based Jewel Osco.

🌱 Kava drink maker Leilo locked in a trial run at Sprouts Farmers Market following its inclusion in the retailer’s Innovation Program.

⚡ Ketone energy drink maker KEY has also found a spot on Sprouts shelves bringing its zero-sugar, caffeinated cans to all locations.

Get the full rundown of recent distribution gains on BevNET.

The Teamsters are expanding their strike against Northwest Pepsi and beer distributor Bigfoot Beverages, setting up picket lines at all of the company’s locations this week.

💸 The strike, which began on Sept. 19, takes aim at what the union says are unfair labor practices, alleging that Bigfoot has broken the law by moving to eliminate pension benefits and transition to a 401(k) plan. The Teamsters leadership says that plan would effectively amount to a $3,300 per year pay cut for employees.

🧓 Bigfoot said its plan would provide workers with wages worth $3-$6 per hour more than “area comparables” and that it’s proposed 401(k) would be 100% vested.

👣 Oregon-based Bigfoot has several locations throughout the state, including Eugene, Springfield, Newport, Roseburg and Coos Bay.

⚖️ “We’re not going anywhere until this company comes back to the table with a reasonable offer,” said Chris Muhs, Secretary-Treasurer of Teamsters Local 324, in a press release. “Our picket lines remain strong, and these brave workers will do whatever it takes to maintain their fully funded pension plan and union protections.”

🤖 Amazon announced yesterday that it will begin testing mini, automated warehouses that will be bolted on to Whole Foods stores and would allow customers to order non-Whole Foods stocked items (think: items like Pepsi, Kellogg’s cereal and, apparently, tennis rackets); the goal is to help customers eliminate extra trips, according to CNBC.

🦊 Foxtrot has reintroduced its mobile ordering platform as its reopens select locations in Chicago. The app allows customers to order ahead for pickup and place delivery orders which will be fulfilled within one hour.

🧊 Daily Deals Food Outlet owner Natural Choice Foods announced it has broke ground on a new freezer facility that will add 30,000 sq ft. of cold storage to its operations.

🧑‍⚖️ Colorado AG Jason Slothouber questioned Albertsons’ CEO Vivek Sankaran about a 2020 presentation to the FTC where the grocery chain claimed it did not have any product overlap with specialty retailers Kings Food Market and Balducci's Food Lover's Market stores, from which it was vying to acquire more than 24 stores. Federal regulators argued the chain “flip flops” on how it views competition and will say anything to get the merger approved. 

With Taste Radio’s London meetups on the horizon, the hosts have their say on trendy brands, new products and the coming crush of seasonal LTOs. They share their respective takes on David, the high-profile protein bar brand launched by RXBAR co-founder Peter Rahal and whether decaf coffee is about to take off. They also get giddy about green cocktails and a record-breaking advent calendar.

Listen to the episode now.