The consumer packaged goods industry continues to showcase its resilience and adaptability with a flurry of new developments. This week's roundup features a mix of innovative product launches, strategic acquisitions, and market expansions that are shaping the future of CPG. From non-alcoholic beverages to snack foods, companies are pushing boundaries and responding to changing consumer preferences. Let's examine the top stories making an impact in the industry.
The Coca-Cola Company and Bacardi Limited have announced a new partnership to launch BACARDÍ rum and Coca-Cola as a ready-to-drink (RTD) pre-mixed cocktail. This product will initially be available in select European markets and Mexico in 2025. The collaboration aims to tap into the growing alcohol RTD market, leveraging the iconic status of both brands to offer a convenient, high-quality cocktail experience.
Seed Health, a leading microbiome science company, has announced its expansion into Target stores across the United States. This move marks Seed's first entry into mass retail, featuring their award-winning DS-01® Daily Synbiotic and PDS-08® Pediatric Daily Synbiotic. Additionally, Seed is launching an exclusive product, DS-01® 14 Day Gut Reset, designed for rapid gut recovery. This expansion follows Seed's successful entry into Amazon earlier this year.
Nutrabolt, the owner of C4, has partnered with The Hershey Company to introduce a range of energy drinks, pre-workout supplements, and protein powders inspired by Hershey's iconic confections. The collaboration will feature flavors like Jolly Rancher Candy, Bubble Yum Bubble Gum, Reese's Peanut Butter, and Hershey's Milk Chocolate. The new products will roll out this fall, with additional flavors planned for 2025.
The popular prebiotic soda brand, poppi, has partnered with musician Post Malone, who has recently made a lifestyle change by giving up traditional soda. poppi is launching a custom 12oz can of Wild Berry flavor, labeled "Posty's Soda," exclusively at Kroger stores. This partnership aims to revolutionize soda for the next generation, offering a healthier alternative with only 5 grams of sugar and 25 calories per can.
Campari Group has acquired a 14.6% stake in Capevin Holdings, the owner of CVH Spirits, for EUR82.6 million (US$91.8 million). CVH Spirits is known for its single malts like Bunnahabhain, Deanston, Ledaig, and Tobermory, as well as blended brands like Black Bottle and Scottish Leader. This acquisition enhances Campari's presence in the scotch whisky market, complementing its existing portfolio, which includes The Glen Grant single malt.
The USTA announced that it sold 556,782 Honey Deuce signature cocktails during the 2024 U.S. Open, generating more than $12.8 million in revenue. This represents a 26% increase over 2023. The Honey Deuce, a Grey Goose vodka-based cocktail made with lemonade, Chambord, and honeydew melon pieces shaped like tennis balls, has become synonymous with the U.S. Open fan experience. The drink's popularity has soared, with sales nearly doubling from 2017 to 2022 and continuing to rise.
The partnership between Coca-Cola and Bacardi, along with Campari's acquisition, underscores the continued growth and sophistication of the alcoholic beverage market. Consumers are seeking high-quality, convenient options, creating opportunities for brands to innovate in this space.
Campari's acquisition and Nutrabolt's collaboration with Hershey demonstrate how companies are leveraging partnerships and acquisitions to expand their product offerings and production capabilities. This trend is likely to continue as brands seek to diversify and scale quickly.
Seed Health's expansion into Target and Poppi's partnership with Post Malone reflect the growing consumer demand for functional beverages with health benefits. CPG companies that can offer products with added nutritional value or specific health claims may find increased opportunities in the market.
Seed Health's entry into Target and Poppi's exclusive launch at Kroger highlight the importance of exploring different retail channels for growth. Brands that can successfully navigate various retail environments, from specialty stores to mass retailers, may be better positioned for long-term success.
The introduction of new formats, such as Seed Health's 14 Day Gut Reset and Poppi's custom Wild Berry can, shows how packaging can play a crucial role in product differentiation and market expansion. CPG companies should consider how packaging innovations can help them reach new consumers or occasions.
As the CPG industry continues to transform, companies that can adapt to changing consumer preferences, leverage strategic partnerships, and innovate across products and packaging will be well-positioned for growth. The stories highlighted in this roundup demonstrate the dynamic nature of the industry and the exciting opportunities that lie ahead for brands willing to push boundaries.