| | | | | In this issue of Daily Briefing | - ⚡ Caffeinated Cufflinks?
- ⭐ Aisha Tyler Introduces Losophē
- 🪁 Climbing Kites Flies Forward
- 🥃 Cognac Looking Up?
- 🧑⚖ Kroger Receives FTC Case Extension
- 🏅 Cherbundi's Team USA Partnership
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| 📰 Today's Top Story | | | What do college kids want on tap more than white claws, beer and bottom-shelf vodka these days? Apparently, plant-based milk.
Today, Califia Farms announced it has acquired Uproot Inc., the maker of a plant milk dispenser system designed for food service. The plant milk dispensers have gained widespread distribution in the college and university arena, with partnerships with 150 campuses as well as other dining locations across the U.S. For Califia, the deal helps bolster its “Away from Home” business with a sustainable and dining-hall ready solution that reduces excess packaging; the alt-milk is loaded into the dispenser via a shelf-stable, bag-in-a-box format. Uproot has previously produced its own line of plant-based milks, including oatmilk, chocolate-flavored pea milk and soymilk, which were stocked in the dispensers. "The founders of Uproot have developed a turnkey solution for dispensing plant-based milk and have achieved impressive distribution in just five years. We look forward to building on this foundation, connecting with consumers in new ways and providing our plant milks to more people." said Dave Ritterbush, CEO of Califia Farms. Per terms of the deal, Uproot’s team, including founders Kevin Eve and Jacob Conway, will join Califia. Uproot alt-milk products, which are non-GMO and contain 8 grams of protein, have previously been stocked by major foodservice distributors including Sysco and US Foods; the announcement did not specify if those products will all be transitioned over to Califia’s liquids. The move signals yet another strategy in line with Ritterbush’s objective to strengthen the brands’ core business. Califia has gone deep on innovation in recent years under Ritterbush’s direction, from new flavors and product formats to transitioning to 100% recycled plastic bottles in the U.S. and prioritizing products that are free from gums and oils. Elsewhere in the plant-based milk world: Oatly reported strong volume gains during an earnings call this morning with its first full quarter of positive adjusted EBITDA. Notably, the oat milk pioneer (and major proponent of the foodservice channel) also shared that volumes for its liquid alt-milks grew across both retail and foodservice during the quarter. Go Deeper: Watch Ritterbush talk plant-based innovation. |
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| 👉🏼 What You Need to Know 👈🏼 | | | In a prime example of ‘how did we get here’… 5-Hour Energy is attempting to outdo its caffeinated BBQ sauce launch with yet another off-the-wall marketing campaign.
👔 Introducing the 5-Hour Energy cufflinks, which hold 1.5 oz. of liquid and have the ability to take anyone’s best suit to some other level. The promotion was unveiled at a dinner in honor of the U.S. Women's Water Polo team’s sendoff to Paris for the Olympics hosted by…wait for it…Flavor Flav. Why? Why not? Who else is best equipped to measure a 5-Hour boost? 🤯 The brand is selling a limited number of the 14K gold-plated, Sterling silver, black enamel and stainless steel accessories for only $1,000 each. Don’t worry, it’s batteries are included: they come with two bottles of Grape Flavor Extra Strength 5-Hour Energy. 🤦 Paired with its formal attire promo, 5-Hour Energy is also giving away enough product to last the entire summer to one lucky fan, as part of the brand’s “Summer of No FOMO” sweepstakes. |
| | | Is there more room on the celebrity RTD cocktail shelf? That remains to be seen, but there’s certainly still interest: actor/director/comedian Aisha Tyler (Lana Kane in Archer) is throwing her name in the ring with losophē (pronounced like “philosophy”), a large-format RTD organic margarita.
- A press release lauded Tyler and business partner James Kim’s (formerly of Scottish spirits group Edrington Group) devotion to quality and premium ingredients, but details on the release itself were sparse.
- What we do know is that it’s made from 100% Blue Weber agave tequila blanco sourced from a small farm in Jalisco.
While most celebrity-backed RTD ventures have embraced cans and single-serving formats, losophē is set to compete with glass-bottled releases from 1800, Rancho La Gloria and On the Rocks, among others. |
| | | After being stuck in limbo for much of July following the passage of regulations on THC-infused beverages in Iowa, Iowa City-based Climbing Kites is pushing new products into retailers this week.
🪴 The return to retail in Climbing Kites’ home state follows a portfolio reshaping to adhere to a law that went into effect July 1 and lowered the allowed THC dosage in beverages. In addition to that law, the Iowa Department of Health and Human Services (DHHS) issued follow-up guidance that limited dosages to up to 4 mg of THC in a 12 oz. beverage container. 🧑⚖️ Climbing Kites and Field Day Brewing, maker of THC-infused beverage brand Day Dreamer, are now embroiled in a lawsuit against the state and the DHHS, seeking an injunction to block enforcement of the law. ⛔ A recent review of the law by an Iowa legislative committee did not provide relief, leaving the guidance unchanged, which paved the way for the DHHS to enact the 4 mg dosage limit. Although this isn’t the outcome Climbing Kites’ leaders were hoping for, they now have a path forward, albeit a more limited one. BevNET Insiders can get the full scoop in the full story. |
| | | Cognac challenges for Remy Cointreau are not going away, meanwhile troubles for Hennessy in the U.S. seem to be easing.
- French firm Rémy Cointreau reported a -15.6% dip in sales for Q1 of 2024-2025, with cognac dropping from $168.2 million in sales to $147 million (-12.2%).
- The liqueurs and spirits division recorded a 20.4% drop, due to continued destocking in the Americas.
- Meanwhile, sales fared better for luxury goods group LVMH, thanks to a return to growth for Hennessy in the U.S.
- Spirits and cognac were down 2.3% in Q2 compared to -16% in Q1. Retailers are finally reordering, although the group was still cautious on yesterday's earnings call.
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| | | The judge overseeing the FTC’s case against Kroger and Albertsons’ proposed merger has given all parties a two day extension on two filing deadlines after Friday’s worldwide Microsoft outage left several counsel laptops “completely unusable.”
👀 On Monday, chief administrative law judge D. Michael Chappel said the outages were “good cause” to push back deadlines for a pair of pretrial findings, as reported by Law360. 🗓️ The FTC has until today to file its pretrial brief, while Kroger and Albertsons have until July 31 to respond. ⏪ The update comes after the two grocery chains were “granted in part” a request to delay the FTC’s case, putting the case on pause until after a hearing for a preliminary injunction against the deal in Oregon federal court wraps on September 13. ⏸️ Meanwhile, negotiations between Kroger and Colorado regulators appear to have stalled as the grocery stores try to avoid an injunction hearing in the state’s challenge against the mega-merger; the grocers have begun to pitch a state judge on other options to avoid the proceeding. |
| | | Sports nutrition maker Cheribundi has partnered with the U.S. Olympic team in anticipation of the Paris Games starting this week.
🏊 The tart cherry drink and supplement maker has added five members of Team USA, including swimmer Ryan Murphy, beach volleyball player Chase Budinger, diver Delaney Schnell, triple jumper Keturah Orji and sprinter Courtney Lindsey. 🏃 The five athletes join ultramarathoner Jes Woods, pro skater Neen Williams, and a number of sports dieticians and coaches as brand ambassadors for Cheribundi’s recovery products. 🍒 The brand has partnered with over 475 professional and collegiate teams over the course of its 20 years in the tart cherry concentrates and functional shakes business. 🤝 Last year, Cheribundi merged with NextFoods, the maker of food and beverage brand GoodBelly, to exploit synergies between the two functional businesses. |
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