Beer Marketer's Insights
Back in Jul, President Trump suggested that Coca-Cola Co would be transitioning from HFCS to cane sugar for its core sparkling trademark. KO offered no confirmation of that at the time and, as it turned out, had no intention of dropping HFCS from big moneymaker. But it is moving forward with cane-sugar-sweetened addition that will offer same perceived benefit that's sent some consumers scurrying to sugar-sweetened Mexican Coca-Cola. Even that debut will be limited, what CFO John Murphy described to Bloomberg this wk as a "measured rollout," with cane sugar availability the gating factor.
CANNABIZ: Rhinegeist Launching Fuzzy Bones Sparkling D9 Bevs, Despite THC Flak from Guvna DeWine
Yet another sizable regional craft brewer is launching a line of hemp-derived THC bevs. But this may be a bigger bet than most of regional entrants so far. After "deeply studying THC beverages" for past 2 yrs, visiting markets across US, trying different products and talking with suppliers, distribs, retailers and consumers, Ohio's Rhinegeist is diving in with Fuzzy Bones sparkling THC bevs, co announced yesterday.
Fast-growing THC brand Brez has pulled in another $5 mil of sought-for $20 mil capital round, its first, adjusting post-money enterprise valuation down to $150 mil from $250 mil as it pursues remaining $10 mil at what it expects to be $200 mil post-money valuation, founder Aaron Nosbisch has posted on LinkedIn. He said revision was made "to reflect market conditions and re-engage early supporters." He sketched what has proved a challenging past qtr in which co had to navigate "brief cash flow crunch and partial revenue pullback as we reorganized to meet the scale of what's next." With streamlined operations and major debt partner, it's ready to go back to scaling nationally, he wrote. Despite headwinds, brand is in over 5,000 doors now. In offering these periodic updates, Nosbisch has adopted unusually transparent approach for privately owned and operated co . . . Clean Cause, the yerba mate-based energy brand, raised $2.3 mil of Series C funding from undisclosed investors on Oct 15, putting its pre-money valuation at $25.7 mil, Silverwood Partners reported in its latest financing roundup. It came via tilting of convertible note to equity . . . LA Libations has invested undisclosed amount in Happy Coffee, the brand launched by Robert Downey Jr in collaboration with exited Hello personal care founder Craig Dubitsky, via its Taste Tomorrow Ventures arm. Venture firm's premise is to invest up to $2 mil in early-stage firms that typically are pulling in less than $20 mil in annual revenues.
Energy and hydration vet Mark Sherer, who managed distribution of Alani Nu and Prime Hydration brands at Congo over past coupla years, has segued to Raw Nutrition and its Bum Energy brand as it prepares to build out national DSD network. Mark told us this morning his formal title is chief strategy officer for beverage, tho he'll mainly just go with head of beverage. "First project is to get the DSD network built out for our upcoming national retail launches," he advised. Like other players from Bang to C4 to Ghost, Bum Energy was launched out of parent, Raw, that already played comprehensively across supplements thanks to efforts of founder Chris Bumstead (the "Bum" in Bum Energy). Sherer is a 7-yr Red Bull who'd gone on to roles at Bang and Clean Cause energy brands, Liquid Death water and then Congo Brands, where he ascended to vp/gm role. At Congo, Mark had challenging role of navigating relations between demanding owners and distributors who'd seen Prime quickly descend from its extraordinary rollout even as robust Alani Nu brand was sold to Celsius and migrated to Pepsi system. At Liquid Death he'd been key exec in assembling natl distribution network during brand's rapid buildout, similar role to his new assignment.
Simply Good Foods shares cratered today, dropping 17% today after co reported "solid" fiscal Q4 but warned of softness early next year as it continues to rationalize Atkins biz while dealing with fallout from quality issue that may have soured some shoppers on its acquired OWYN plant-based brand. It anticipates fiscal 2026 sales will come in somewhere in range of 2% decline and 2% gain, after co grew by at least high-single-digits over past 5 years. Gross margin is anticipated to contract 1-1.5 pts, with rising cocoa costs and tariffs partly to blame. Pricing action that was announced to trade in Aug and is due to go into effect in Jan was in mid- to high-single-digit range but should only stunt sales briefly, in category that's proved over years to be highly resilient to increases, prexy/CEO Geoff Tanner reassured investors this morning.
The Beer Insights Seminar is coming right up Nov 9-10 at the New York Athletic Club in New York City, and the meeting agenda is now available. So sign up today to reserve your spot! We have a stellar speaker lineup at the 2025 Beer Insights Seminar.
Yet another sizable regional craft brewer is launching a line of hemp-derived THC bevs. But this may be a bigger bet than most other regional entrants so far. After "deeply studying THC beverages" for the past 2 yrs, visiting different mkts across the country, trying different products and talking with suppliers, distribs, retailers and consumers, OH's Rhinegeist is diving in with Fuzzy Bones sparkling THC bevs, co announced yesterday.
"A Mile Deep" In PA, New Trail Shares the Secrets and Strategies Behind Its Continuous Growth
"We've failed, and we fail quickly," New Trail owner and director of brewing ops Mike LaRosa told CBN this wk, catchin' us up on how co that reported 6.7K bbls produced in 2020 was all the way up to 46.7K bbls last yr and is expecting 10K more in 2025, up more than 20%. Founded in 2018, the Williamsport, PA-based co wanted to get to 3K bbls produced/yr within 5 yrs but managed it in less than 2, which they attribute to sticktuitiveness, business savvy and kismet. "Luck is the intersection of preparation and opportunity," Mike said, echoing common saying and acknowledging co's good fortune: "We saw the opportunity, and we had lightning in a bottle here in Pennsylvania."
Fiddlehead Brewing's transformational growth since Covid is one-of-a-kind in craftland and still goin' strong in 2025. Volume is on pace to grow around 13%, 14K bbls to 122K bbls vs yr ago, founder Matt Cohen shared with CBN. That's approaching 100K bbls gained since 2019. Among craft brewers, only New Belgium and Athletic added more bbls in that time. So Fiddlehead is the #2 indie craft gainer going by Brewers Assn's standards, despite selling in just 10 full states plus part of MD, providing max 15 days of inventory on hand to distribs and mandating cold storage thruout the supply chain process. And it's growing in 29 outta 30 distribs this yr.
Private Label Manufacturers Assn will host its annual Store Brands Marketplace trade show on Nov 16-18 at Donald E Stephens Convention Center in Rosemont, outside Chicago. Event will feature 35K+ food and nonfood items, 3,000 booths and 1,900 exhibitors, with Lidl US CEO Joel Rampoldt among keynote speakers. Among show's features will be special section for Wine & Spirits as well as Idea Supermarket showcasing product and packaging trends from around world. Registration info here .