The Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage sector. From inaugural product lines to big investments and controversial topics, this column aims to quench the thirst for developments in the category.
Molson Coors brings back light brew as beer sales slow
As inflation maintains a stronghold in the food and beverage landscape, Molson Coors is resuscitating a light beer brand to fulfill a consumer desire for lower-priced options.
In an Instagram post last week, Miller High Life, “the Champagne of Beer,” announced a light variety of the brew will return to shelves in select markets. It was discontinued in 2021.
It’s a move that indicates a shift in strategy as beer sales decline. Molson Coors posted a 1.5% year-over-year decline in sales, with brand volume dipping 7.3% in the U.S., according to its earnings report in August.
While inflation has cooled from its peak in 2022, alcohol remains expensive.
Spiros Malandrakis, the head alcohol industry researcher at Euromonitor International, told Food Dive that trading down behavior in the alcohol industry is becoming more apparent as consumers grapple with higher prices.
“Within this context, essentially a state of permacrisis — inflationary pressures are just one part of the bigger macroeconomic cocktail — launching an economy brand with a cult following does indeed make sense,” Malandrakis said. “I see it more as a harbinger of further economical upheaval on the horizon rather than just a knee-jerk reaction to last year’s inflationary spike.”
While Molson Coors continues to prioritize beer amid the slump in the category, it is also growing its presence in other spaces, notably premium spirits. This week, the company announced a partnership with Australian nonalcoholic cocktail brand Naked Life to capitalize on the growing U.S. popularity of canned RTDs without booze.
— Chris Casey
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Courtesy of Poppi
Poppi partners with Post Malone
Better-for-you soda maker Poppi is tapping a chart-topping singer to help debut its latest flavor.
Poppi is launching a Wild Berry “Posty’s Soda,” based on a favorite flavor of pop star Post Malone. The can features a design based on Texas where both the singer and the brand originated. The soda is available exclusively at Kroger.
The singer turned to Poppi after giving up traditional soda, citing the brand’s healthier ingredient profile compared to sugary sodas. Each can has about 25 calories or fewer and 5 grams of sugar or less. Poppi said it took note of the singer’s support for the brand before it asked him for a collaboration.
By turning to a celebrity endorsement, brands in the food and beverage space can capitalize on the performer’s fanbase to grow their presence in entertainment.
The crossover between the music world and beverages has existed for decades, including famous advertising campaigns such as Pepsi’s collaboration with Michael Jackson. In recent years, Coca-Cola has turned to pop music to help launch its Creations series of limited-time sodas. It has joined with Marshmello and Spanish pop star Rosalía, along with debuting a flavor themed around K-pop.
As consumers look for healthier alternatives to sugary beverages, Poppi has reported triple-digit growth in recent years, with annual sales over $100 million according to Inc.
In May, the brand’s co-founder Allison Ellsworth said Poppi is focused on its growth and is not looking to be acquired by a larger beverage company. But the brand is also facing some pushback for its health claims. A class action lawsuit was filed in June claiming its “gut healthy” slogan amounts to false advertising because of its sugar content and minimal prebiotics.
— Chris Casey
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Courtesy of Bigelow Tea
Bigelow Tea builds for the future
Bigelow Tea is building a 265,000-square-foot facility in Louisville, Kentucky to meet growing demand for its popular beverage.
The new facility will serve Bigelow Tea’s production, packaging, storage and distribution operations. The site also includes 25,000 square feet of planned office space and a 20-acre plot. This provides an additional 75,000 square feet Bigelow could use for future expansion.
Bigelow Tea said its plans include expanding its workforce, though it did not say how many people it expects to add. The total investment for this project is estimated at more than $70 million.
The facility will include environmentally friendly features such as solar canopies over employee parking lots.
The construction project comes as tea demand continues to increase in the U.S.
Revenue is forecast at $16.4 billion in the U.S. this year, according to data from Statista. The data service noted that tea will benefit from its healthier perception among shoppers, new flavors and demand for convenience.
— Christopher Doering
