CPG Industry News Roundup: February 14 - February 20
The consumer packaged goods (CPG) industry is undergoing significant transformations, with major brands making strategic leadership changes, launching new product categories, and securing critical funding to fuel expansion. This week, we examine the latest developments—from beverage giants doubling down on prebiotic sodas to high-profile partnerships reshaping the retail space. We also break down what these moves signal for the future of the industry and how businesses can position themselves for sustained growth in an increasingly competitive market.
Mel Landis Named President of Olipop
Olipop has appointed Mel Landis as its new President. The prebiotic soda brand, which recently secured a $1.85 billion valuation, is looking to scale operations and expand its footprint in the functional beverage space. Landis brings extensive experience from his tenure at major beverage companies and aims to solidify Olipop’s position in the category.
Oatly Projects First Full Year of Profitability in 2025
Oatly reported strong revenue growth and anticipates its first full year of profitability in 2025. The oat milk company has faced significant operational challenges in recent years but has streamlined its production and distribution network, leading to increased efficiency and financial stability.
Nike and Skims Join Forces for New Brand
Nike is collaborating with Kim Kardashian’s Skims to launch a new brand. This strategic partnership aims to blend Nike’s expertise in performance apparel with Skims’ reputation for comfort and inclusivity. The move highlights the growing intersection of athleisure, shapewear, and mainstream apparel.
Coca-Cola Introduces Simply Pop Prebiotic Soda
Coca-Cola has entered the prebiotic soda market with Simply Pop, a direct competitor to Olipop and Poppi. The product aligns with increasing consumer demand for gut-health-focused beverages, signaling a potential shake-up in the functional soda space.
Megan Thee Stallion Launches Premium Tequila Brand
Megan Thee Stallion has introduced Chicas Divertidas, a new premium tequila brand offering Blanco and Reposado varieties. The move follows the continued trend of celebrity-backed alcohol brands and aims to position itself within the high-end tequila market.
Truff Appoints New CEO to Lead Growth
Truff, known for its luxury hot sauces and truffle-infused condiments, has named a new CEO. The appointment is expected to drive expansion efforts and product innovation as the company continues scaling its presence in the premium food segment.
Aura Bora Exits Amid Tough Market Conditions
Aura Bora, a sparkling water brand, is exiting the market, citing challenging conditions for food and beverage startups. Despite building a strong niche following, the brand struggled with funding and scaling efforts in an increasingly competitive industry.
Olipop Hits $1.85 Billion Valuation in Funding Round
Olipop secured a new funding round, bringing its valuation to $1.85 billion. The investment underscores the explosive growth of the prebiotic soda category and positions Olipop for further expansion.
What These Moves Mean for the CPG Industry
Functional Beverages Continue to Dominate
The launch of Simply Pop and Olipop’s funding success confirm that functional beverages—particularly those focused on gut health—are more than a trend; they are now a core category in the beverage industry. With Coca-Cola entering the space, expect increased competition, broader consumer awareness, and innovation in probiotic and prebiotic formulations.
The Celebrity Play in Alcohol Keeps Growing
Megan Thee Stallion’s tequila launch follows a well-established pattern of celebrities investing in premium spirits. With past successes like Casamigos (George Clooney) and Teremana (Dwayne “The Rock” Johnson), Chicas Divertidas will need to differentiate itself through branding, taste, and distribution to carve out a niche.
Plant-Based Brands Are Shifting to Profitability
Oatly’s projected profitability in 2025 marks a turning point for plant-based brands, many of which have struggled with supply chain inefficiencies and operational hurdles. Investors will likely be watching closely to see if other plant-based companies can follow suit, making financial sustainability a top priority.
Retail Partnerships Are Expanding Beyond Apparel
Nike and Skims’ collaboration reflects a broader trend where traditional retail giants are aligning with digitally native brands to capture new audiences. These partnerships offer legacy brands access to younger, engaged consumers while allowing modern brands to scale faster through established distribution channels.
The Mid-Tier Market is a Tough Place to Be
Aura Bora’s exit highlights the struggles mid-tier beverage startups face. Without deep pockets or legacy backing, brands must secure significant funding or establish strong retail relationships early to survive in a category dominated by large players like Coca-Cola, PepsiCo, and Nestlé.
Leadership Shifts Indicate Strategic Pivots
Both Olipop and Truff’s leadership changes signal strategic shifts aimed at navigating growth and potential market challenges. As brands scale, experienced leadership will be critical in guiding expansion, securing retail partnerships, and maintaining product differentiation.
Final Thoughts
This week’s news reinforces key themes in the CPG industry: the rapid rise of functional beverages, the growing influence of celebrity-backed brands, and the intense pressure on mid-sized startups to either scale fast or face acquisition or closure. With new funding rounds, leadership changes, and market expansions happening at a fast pace, the industry is set for another dynamic year.
For companies looking to stay competitive, the focus should be on innovation, strategic partnerships, and understanding shifting consumer preferences. Stay tuned for more updates as the landscape continues to evolve.