How does a brand position itself as a “super premium” functional non-alcoholic spirit? 

For Aplós, the process began by targeting fine-dining and high-end cocktail bars. With a recent infusion of $5.5 million led by McCarthy Capital and a slew of alcoholic beverage industry veterans -- including Drinks Sherpa co-founders Shilen Patel and Andy Fennell, former Diageo director of innovation Helen Michels and former Pabst Brewing executive Matt Bruhn -- coming onboard as strategic investors, the Miami-based brand is now trying to patiently expand its retail presence while maintaining its sophisticated appeal. Aplós is currently available in “under 500” retail locations from specialty and natural groceries to “curated” package stores, and is seeing “traction across the board” in New York, California, Texas and Florida, according to co-founder David Fudge. But to truly unlocking the market opportunity, the brand needs to secure on-shelf placements next to its full-alcohol counterparts, which means investing in distribution partners and educating retailers.

The upstart brand, which currently offers two SKUs, will face an increasingly competitive landscape in the category. After Seedlip paved the way for high-end NA spirits when Diageo acquired a majority stake in the brand in 2019, more zero-proof spirits brands have followed suit. Ritual received a minority investment from Diageo in 2020 and, recently, Drink Monday landed a “substantial investment” from Decathlon Capital Partners in November to fuel its growth, while TOST linked with Constellation Brands.

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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

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Grab a drink with us in New York City! After Day 1 of BevNET Live, we’ll host a networking happy hour to allow you to continue your conversations over beverages and snacks. Check out the list of registered companies and start planning your conversations. Learn more.

Last October, we reported that relaxation drink maker Leilo had secured a deal to be acquired by vertically-integrated Australian kava producer Fiji Kava in a share-swap arrangment set to close the following month. However, per an email this week from founder/CEO Sol Broady, that has not come to fruition -- Leilo is currently operating as a private entity (and back to raising funds). No details yet on why things fell through, though Broady indicated more news coming soon. Watch this space. 

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A “loud, abrasive and polarizing” brand needs someone who captures that spirit – for Chicago-based RTD cold brew maker Loud Brew, that person is RiFF RAFF. The mullet-haired, rainbow-hued rapper was announced today as a co-founder and strategic investor in Loud Brew, which launched in 2021 and is currently distributed in around 500 doors in the Chicagoland area as well as online. According to Loud Brew co-founder and CEO Zachary Rudd, this is the first of a number of partnerships with music artists to be announced in the next year. Looking for a more mellow vibe? Try Snoop Dogg’s Indo. 

CPG investment firm Selva Ventures announced the close of a $34 million second fund this week. Speaking with BevNET, founder and managing partner Kiva Dickinson shed light on how it will put that round to use, including an aim to increase its average check size from $500,000 to $1-$2 million and an emphasis on adding more beauty and personal care brands to its portfolio. As well, Dickinson said that despite today’s difficult investment landscape, Selva’s mission has stayed strong as the consumer demand for innovative, healthier products “has not gone away.” Read the full story on BevNET.

With premium tequila on the rise, Brown-Forman Corporation is pouring $200 million into expanding its historic Casa Herradura tequila distillery in Jalisco, Mexico. The multi-phase project will include expansion to distillery operations, bottling, maturation and processing areas, as well as sustainability efforts. Herradura sits in the segment of higher-end tequilas that have been driving spirit sales in the U.S. Brown-Forman’s growth is driven by its major whiskey brands like Jack Daniel’s but the company reported double-digit growth for Herradura and El Jimador, which is made in the same distillery. Read the full story on BevNET. 

Constellation Brands CEO Bill Newlands shared that the company would “broadly speaking” play within spirits in a more meaningful way, while presenting at the Bernstein 39th Annual Strategic Decisions Conference yesterday. The majority beer and wine group also houses High West whiskey and Mi Campo Tequila, and has made venture investments skewed towards the spirits arena. Noting the venture arm's acquisition of Austin Cocktails last year, and pre-made cocktails with Mi Campo and High West, Newlands underscored the ability of those products to meet consumer needs. “I think that's kind of what spirits has done particularly well, is they've given that sort of optionality,” he said. The CEO said the company will “do some minor M&A, most likely just bolt-on” as part of its strategic priorities and would consider spirits as a white space for "small bolt-ons." Last week Constellation bolstered its non-alc portfolio with a minority stake in TÖST.

Community Call is a recurring series of discussions addressing timely topics within the food and beverage industry. This month, we welcome a range of guests covering topics such as demand planning, event marketing, and finding the right valuation of your business for fundraising. Read the story.