Federal Trade Commission is investigating whether baby formula makers colluded on bidding for state contracts, per agency documents cited by The Hill after Wall St Jnl broke story on effort on Wed. Probe commenced last year as agency opened probe into bidding on state contracts for Ag Dept's Special Supplemental Nutrition Program for Women, Infants and Children (WIC), which provides free formula to low-income families. The Hill cited request by FTC in late Jan of info and documents from Abbott Laboratories, one of only 3 manufacturers that have bid on WIC contracts since 1996, later denying Abbott's request to limit scope of probe, which was posted on agency website in late Apr. Commission informed Abbott that it's looking into "whether any company that manufactures, markets or sells Infant Formula Products has engaged or is engaging in any unfair method of competition." FTC Secretary April Tabor worried in her Apr response to Abbott that WIC contracts may create incentives for collusion where "incumbent WIC contract holders agree not to bid against each other so that they can continue enjoying dominant positions in non-WIC markets in their respective states." Abbot said it's cooperating with requests but isn't aware of any factual basis for the probe.

Ryl Tea, new entry backed in part by Morgan Wallen, is crediting country music star with creation of Sweet Tea extension. In keeping with brand's broader positioning, Sweet Tea is intended to offer healthy alternative to Southern classic with black tea base offering 200 mg of tea polyphenols but sweetener combo of monk fruit, stevia leaf extract and allulose as alternative to traditional heavy sugar load. The NJ-based brand, which launched in Jan (BBI, Jan 10), said development effort spanned 6 months to insure it delivered traditional flavor that Wallen would associate with his east Tenn roots. "It took time, but it was well worth the wait," per statement from Wallen, who was identified as an investor a few weeks back (BBI, Apr 17). Recall he'd earlier seen as bound for collab with Congo Brands on tea brand called Down South.

The North American actor/owners of Wrexham AFC have found another way to up-end tradition at the Welsh soccer team they've shepherded to success over past year: they're dropping afternoon tea break in favor of more highly caffeinated Stok Cold Brew, the Danone brand. At least that's the story being told in amusing video featuring co-owners Rob McElhenney and Ryan Reynolds pulling a fast one on their team, filling teapots with Stok, then letting hidden camera capture reactions of purportedly unaware players, who smash the crockery in disgust as they discover that's not tea they're drinking. (One cup is rescued by goalkeeper's diving save.) In truth, Danone has acquired naming rights to Welsh ground known as the Racecourse, which on Jul 1 segues to being called SToK Cae Ras/SToK Racecourse. (Brand is styled SToK by Danone and Cae Ras is Welsh for racecourse.) It's unusual move considering that brand isn't sold in UK, but it's way to reach the legion of American sports fans who've been captivated by Welcome to Wrexham TV series on FX. "Some may wonder why a US-based cold brew brand would sponsor a tea-drinking Welsh football team. The answer: STōK is all about bold moves," per non-explanation of Brittney Polka, vp for RTD bevs at Danone North America. Wrexham fans, who've been thrilled so far with how the two actors pulled club back from brink, backed the move via vote by Club Supporters Board. The video was shot by Reynolds' Maximum Effort co.

Bang Energy marketer VPX Sports has long self-distributed in much of its home market, Florida, but that's now come to an end as financially stressed co unwinds that arm of its biz and assigns brand to roster of Bud wholesalers in region. Word of the move comes as we hear that bankruptcy auction has suffered another delay, to Jun 2 at 10 AM, as bids are sorted thru. From what we can gather, it's diverse, if not extensive, list of bidders.

This week in 1975, INSIGHTS reported on the end of an era and beginning of new one at Anheuser Busch. Gussie, at age 76, was stepping down from ceo role to be replaced by his son August III. Gussie was still planning on remaining involved in "advisory capacity," coming into work still most days. But there was "no question about it tho" that August now makes the decisions. "August has, of course, built fantastic reputation among wholesalers and brewery execs," because of his abilities and knowledge, noted INSIGHTS.

Legislators in a handful of northeast states are working thru wide array of alcohol-related proposals with so far little clarity on how successful each bill will be. One of wonkiest ideas popped up in New Jersey, where legislators discussed possibility of jacking up state excise tax on FMBs to $4.40 per gal, up from just 12 cents and closer to the $5.50 per gal rate for spirits. But definition of products subject to so-called "White Claw tax" is overly broad, exec director of Beer Wholesalers Assn of NJ, Mike Halfacre told legislators during hearing yesterday, per NJ Monitor. Recall, last yr, beer advocates blocked essentially opposite proposal in NJ, aiming to drop tax rate of spirits-based RTDs to closer to beer rates enjoyed by competitive FMBs/hard seltzers.

While RTD spirits remain a relatively small and already overcrowded segment, their "rise in importance" present a "potential competitive threat to legacy distilled spirit companies" and "can't be ignored," Consumer Edge analyst Brett Cooper wrote in latest report. Spirit-based RTDs accounted for 1/2 of spirits growth YTD in 2023, Brett estimates, vs 1/3 in 2022 and just 15% in 2020-2021. Consumer Edge team believes spirit RTDs are poised to be "long-term winners" due to consumer demand and "the potential to see improved selling conditions via law changes." So "a lack of attention to the segment either reduces growth available to a legacy distiller…or reduces the potential growth opportunity."