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The Weekly Sip is Food Dive’s column focused on breaking news in the fast-changing and growing beverage sector. From first product lines to big investments and controversial topics, this column aims to quench your thirst for developments in the category.
Molson Coors Relaunches Light Brews Amid Slumping Beer Sales
With inflation holding sway across the food and beverage industry, Molson Coors is reviving its light beer brand to meet the needs of consumers seeking cheaper options.
In an Instagram post last week, Miller High Life, the “Champagne of beers,” announced that the light variety will be returning to select markets after being discontinued in 2021.
The move signals a shift in strategy as beer sales decline. Molson Coors reported a 1.5% year-over-year decline in U.S. sales, with brand volume down 7.3%, in its August earnings report.
Inflation has cooled from its 2022 peak, but alcohol prices remain high.
Spiros Malandrakis, senior alcohol industry researcher at Euromonitor International, told Food Dive that the price cuts within the alcohol industry are becoming more pronounced as consumers struggle with rising costs.
“In this context, it’s essentially a permanent state of crisis. Inflationary pressures are just part of a larger macroeconomic cocktail. It really makes sense to launch an economic brand with a cult following,” Malandrakis said. “I see it as a harbinger of more economic upheaval on the horizon, rather than a knee-jerk reaction to last year’s inflation spike.”
Molson Coors is prioritizing beer despite the slowdown in the sector, while also expanding its presence in other areas, including premium spirits. This week, the company announced a partnership with Australian mocktail brand Naked Life to capitalize on the growing popularity of canned RTDs in the United States.
— Chris Casey
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Courtesy of Poppi
Poppy partners with Post Malone
Healthy soda maker Poppi has hired a celebrity singer to debut its latest flavor.
Poppi is launching Wild Berry “Posty’s Soda,” based on the popular flavor of pop star Post Malone. The cans feature designs based on the singer and the brand’s Texas origins. The soda will be available exclusively at Kroger.
The singer turned to Poppi after giving up traditional soda, citing the brand’s healthy ingredient profile compared to sugary sodas—each can has about 25 calories or less and five grams of sugar. Poppi said she reached out to the singer for a collaboration after noticing her support of the brand.
With celebrity endorsements, food and beverage brands can leverage the celebrity fan base to expand their presence in the entertainment industry.
The crossover between music and beverages has been around for decades, and includes famous ad campaigns like Pepsi’s collaboration with Michael Jackson. In recent years, Coca-Cola has turned to pop music to launch its limited-edition Creations series of sodas, collaborating with Marshmallow and Spanish pop star Rosalía, and introducing K-pop-themed flavors.
As consumers look for healthier alternatives to sugary drinks, Poppi has experienced triple-digit growth in recent years, with annual sales surpassing $100 million, according to Inc.
In May, the brand’s co-founder, Allison Ellsworth, said Poppy was focused on growth and wasn’t considering acquisition by a major beverage company. But the brand has also faced backlash over its health claims. A class-action lawsuit was filed in June, claiming the “gut health” tagline constitutes false advertising due to 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 accommodate growing demand for its popular beverage.
The new facility will house Bigelow Tea’s production, packaging, storage and distribution operations. The site also includes 25,000 square feet of planned office space and 20 acres of land. This will provide Bigelow with an additional 75,000 square feet of space for future expansion.
Bigelow Tea said it plans to expand its workforce, but did not say how many people it would add. The total investment in the project is estimated at more than $70 million.
The facility will include environmentally friendly features, including a solar canopy over the employee parking lot.
As demand for cars continues to grow in the United States, construction projects have begun.
According to Statista data, sales are expected to reach $16.4 billion in the United States this year. The data service notes that tea will benefit from healthier perceptions, new flavors and a demand for convenience among shoppers.
— Christopher Dohring
