Here's the latest CPG news happening right now on April 3rd, 2025 including Trump Tariffs Goes Into Effect, Huge Series A with Lucky Energy, Acquisitions Galore with Lesser Evil and Mela, and More Investment Action

On April 2nd, (yesterday) Trump has announced reciprocal tariffs on essentially all goods, unless otherwise noted. Some details will emerge on what is exempt. For food and beverage people, this will deeply impact cost of goods sold for bottles, caps, labels, cans, and just about every type of packaging that is manufactured outside of the United States, typically in Asia. Also, companies sourcing raw materials and ingredients will be subject to tariffs. This will undoubtedly affect brands and their margins, forcing them to raise their wholesale pricing to retailers and distributors. And ultimately will affect the everyday consumer, paying more for goods, even more than the inflationary costs right now.

We will watch this closely, but our opinion is this will disrupt the market, cause margin compression, and force manufacturers to re-think how they source their product.

Lucky Energy, a simpler, better-for-you energy drink, announced today that it has successfully closed a $14.2 million oversubscribed Series A1 round, bringing its total funding to over $40 million. The round is led by Maveron, with backing from DMG Ventures, Second Sight Ventures, and existing investors: Imaginary Ventures, Brand Foundry Ventures, Sapphire Ventures, and Sugar Capital. The capital secured will fuel the brand's growth, enabling it to accelerate distribution, introduce new products, support strategic partnerships, and recruit in key business areas. Additionally, the company welcomed Dan Ginsberg, former Chief Executive Officer of Red Bull NA and CEO of Dermalogica®, to its Board of Directors.

Lucky Energy has experienced explosive growth, entering 10,000 new doors with plans to expand to an additional 15,000 before the end of the year. The brand has also surpassed 400,000 followers across its social channels. The product is designed for individuals seeking to enhance performance with a natural, functional drink. It is currently available in six flavors: Son of a Peach, Orange Drizzle, Red Ryder Punch, OG Luck, Tropical Thrill, and Bodacious Berry. It has zero sugar and zero calories, ensuring a healthier choice for consumers.

Nixie, the better for your sparkling water and now has a soda line that debuted in 2024, has secured $27M in fresh funding to help expand their product nationwide. Wet hydration has also raised $4.5M and brought on the former EVP from Celsius

Hershey has agreed to buy the organic popcorn giant LesserEvil for about $750 million, a figure that could increase if the brand meets certain performance benchmarks, The Wall Street Journal reports, citing anonymous sources. The deal accelerates Hershey's expansion into salty snacks, and aligns with a broader rush by food giants to snap up smaller, more nimble competitors to reach new customers.Last but not least, Mela has been acquired by the beverage company Calypso. Which is under the umbrella company King Juice Holdings - a platform company backed by Mason Wells - a $2B PE firm out of Milwaukee that owns businesses across the CPG value chain

This week we are featuring emerging and fast growing brands on our show in all different categories including hummus, chocolate bars, and energy drinks.

We are bringing on:

Nick Wiseman - Founder and CEO of Little Sesame

Carla Spiruoulo - CEO of Nelly's Organic

Hamid Saify - CMO of Lucky Beverage Co.

We are excited to talk with these brands, hear their stories, and they will share insights and tips on how they have scaled.

We are doing something new and taking 'No Script, Just Chat!' to the next level. Alex and Wade have no subject matter, no topic.

They are going to show up and talk about anything and everything including CPG.Can we fill an hour with random babble?

What will we talk about? Come and find out and join us for the very first volume of the Random Babble Series.This episode is sponsored by Robert Cogan and Power Full Energy Distribution.

Here's the latest CPG news happening right now on March 19th, 2025 including Poppi Acquisition By Pepsi, Poppi Lawsuit Settlement, Trump Tariff Update, New Brand Mark's Snacks Launching

PepsiCo just announced it is acquiring prebiotic soda brand Poppi for $1.95 billion, a major accomplishment for a brand founded less than ten years ago. This transaction echoes the year-on-year growth of the functional drink market, especially the better-for-you soda category, with competitor Coca-Cola launching Simply Pop just a few weeks ago and Olipop raising a $50 million Series C, valuing the rival prebiotic soda brand at nearly $2 billion.

These industry moves might finally convince skeptics that gut-friendly and other healthier soda alternatives are here to stay, forcing traditional players to evolve and adapt to growing demand for less sugary drinks.

As Pepsi was closing the deal on its $1.95 billion acquisition of Poppi (VNGR Beverages), the prebiotic soda maker is wrapping up another deal, this one with a class action group of consumers alleging they were misled by the drink’s gut-health claims.

The group asked the California federal judge presiding over the case to confirm a proposed $8.9 million settlement, a result it described as “exceptional compared with similar misleading beverage cases” in its motion for preliminary approval filed last Friday.

In a statement shared with BevNET this morning, Poppi stated: “The class action suit filed against poppi in May 2024 has been settled. poppi acknowledges no fault, liability, or wrongdoing, and instead, we are focused on bringing consumers the innovation they expect from the brand they love. We’re excited to move forward and continue our passion to modernize soda for the next generation.”

The total settlement, according to the filing, breaks down to 0.75 cents per single 12 oz. can, $3 per 4-pack, $6 per 8-pack, and $9 per 12-pack or 15-pack. The class includes anyone in the U.S. who purchased Poppi between Jan. 23, 2020, and the settlement notice date.

The three complaints lodged against Poppi last year, which were consolidated in September, take aim at one of the brand’s core pillars: gut health, as reflected in slogans like “gut health never tasted this good” and “for a healthy gut.”

The filings argued that the agave inulin Poppi uses as its primary source of prebiotic fiber was far too low to have any meaningful impact on the gut, and that the presence of sugars harms the balance of good bacteria in the digestive system.

President Trump said last week he is doubling tariffs on Canadian steel and aluminum in response to Ontario adding a surcharge on its electricity exports to the U.S., hitting Michigan, Minnesota and New York. The latest increase, which brings levies on the goods to 50%, will go into effect Wednesday morning, the president wrote in a social media post. Trump also vowed to “substantially increase” tariffs on Canadian auto parts on April 2, if dairy and other tariffs are not dropped.Mark Samuel, Previous Founder of IWON Organics, is launching a new brand, suitably called 'Mark's Snacks.

On Linkedin, he debuted the news and said "I said I’d never do it again. At the same time, I said I’d never live with regret. So, I’m diving back into CPG, making it even more personal this time around, please follow the journey at MARK'S SNACKS, it should be one heck of a ride!" Go to www.markssnacks.com and sign up for their e-newsletter for more updates on product, packaging, launch date, and more

Another Expo West is in the books. It was a 4 day bonanza of talking, sampling, meeting, and walking to see everything we wanted to get to.

Wade and Alex will recap what we saw at the show, brands to look out for, events, happy hours worth mentioning, and more.We will also discuss the state of CPG.

As it gets harder and harder to operate a CPG brand in this environment, what do we think the future holds for this industry for new and emerging brands?

This episode is sponsored Power Full Energy Distribution.

We will discuss it all. It's truly: No Script, Just Chat!

Here's the latest CPG news happening right now on March 9th, 2025 including New Malk SKUs, Sweet Loren's Meteoric Rise, Expo West Recap

Malk has released two new SKUs in multi-serve format: Coconut Malk and Soy Malk. These are both available in 32 oz bottles.Coconut MALK is hitting shelves nationwide

Soy MALK is exclusive to Whole Foods Market and with 3 Simple Ingredients and 6g of naturally occurring protein per serving fills a much needed niche.

They debuted both at Expo West this past weekThe cookie dessert brand Sweet Loren's is now on track to achieve $120M in revenue in 2025Loren Castle is the CEO and Founder. The then 22-year-old New York City native got a degree in communications and knew she liked health, wellness and business, “but I had no idea what I was going to do with my life,” she says. Post-graduation, she went back to New York but planned to move to L.A. permanently to see where life took her.

Just months after graduating, however, Castle was diagnosed with stage 2 Hodgkin’s Lymphoma, a cancer that attacks the immune system, and had to undergo six months of chemotherapy. Depressed, she began seeing a therapist who helped her see the moment as empowering and an opportunity. There were still ways in which she could take control.

One such way was her diet — she could make sure to eat healthy even after her treatment. Castle began taking nutrition and cooking classes, but she quickly discovered something was missing: dessert. “I have a huge sweet tooth,” she says, and she couldn’t find baked goods made with more whole foods that didn’t use ingredients like bleached white flour, corn syrup and artificial chemicals.

So Castle started trying to make healthier desserts for herself.

Expo West 2025 is in the books. There were over 65,000 attendees. This was the first year where every exhibit hall opened at the exact same time. According to recent information, Expo West 2025 featured around 3,600 exhibitors (an increae from 3,000 last year) showcasing a wide range of natural and organic products across various categories like food, beverage, packaging, and wellness items.

We broadcasted live from Expo West 2025 at the Melting Forest Booth #5719 in Hall E (basement in the main conventional center).

Enjoy!

This week is our Expert Series and we are bringing on two dynamic female entrepreneurs in the health and wellness space. Females have undoubtedly become a driving force in the growth of CPG brands across the country, many starting their own CPG brands, raising capital, and having successful exits.

Ashley Rogers is a serial entrepreneur who started and built the brand Spudsy and raised a Series A and now the CEO of Sprinkles CPG, and founder of Shelfmade, a community for CPG professionals and entrepreneurs.

We are also being joined Ashley Kleckner. She has been a sales professional in the CPG arena for nearly 10 years including Impossible Foods (Head of Global Sales) and now at Terviva. This episode is sponsored by Robert Cogan and Powerful Energy Distribution.

Here's the latest CPG news happening right now on February 23rd, 2025 including Celsius Acquires Alani Nu / Hiyo Investment/Coca-Cola Takes on Olipop and Poppi

Celsius Holdings said on Thursday it would buy health and wellness drinks brand Alani Nutrition in a $1.8 billion deal through a combination of cash and stock, boosting its portfolio to build on the growing demand for sports and energy beverages.

Alani Nutrition, a female-focused brand that delivers functional beverages and wellness products, was founded in 2018 and will be acquired from its co-founders, Katy Schneider and Haydn Schneider, and its operator, Congo Brands, Celsius said.According to Yahoo Finance:

The venture capital arm of Constellation Brands has acquired a minority stake in Hiyo, a nonalcoholic “social tonic” containing a blend of functional ingredients, including adaptogens, nootropics and botanicals.

Constellation’s senior vice president of new business ventures, John Utter, said in a statement the Hiyo investment aligns with the aims of beverage giant’s VC group, which is to capitalize on emerging categories.

The Modelo brewer’s investment could help the brewer expand its presence in the growing category. Hiyo’s health halo could also help it stand out in the crowded ready-to-drink category, as consumers seek out beverages that give them more of a nutritious benefit.Posted on CNBC: Starting in late February, consumers on the West Coast and in the Southeast will be able to try Coke’s iteration of the trendy drink.

Soda consumption has broadly fallen in the U.S. over the last two decades, hurt by health concerns and an increase in alternatives on the market, from cold brew to energy drinks to water. But in the last five years, sodas containing prebiotics have taken off, thanks to industry newcomers Olipop and Poppi.

Olipop recently raised $50 million at a valuation of $1.85 billion, the company announced Wednesday. And Poppi made its second straight Super Bowl appearance in this year’s game, shelling out up to $8 million to reach the game’s record audience.

Digestive health soft drinks have grown from a $197 million category in the U.S. in 2020 to one of roughly $440 million in 2024, according to Euromonitor International data. Still, it’s a fraction of the overall soda market, which is worth billions of dollars.

Simply Pop’s first product lineup leans fruity, in a nod to Coke’s Simply juice brand. Flavors include pineapple mango, lime, strawberry, fruit punch and citrus punch.

“We went out and really listened to consumers. They love this space, they’re really looking for stuff that tastes good, and that’s something we know how to deliver on at Simply and at Coke,” said Becca Kerr, CEO of Coke’s North American nutrition unit, which includes its Simply and Fairlife brands.

Simply Pop drinks have no added sugar and contain 25% to 30% real fruit juice, the company said. They also contain vitamin C and zinc, which can boost the immune system.

This week is back to our classic format of Alex and Wade chatting it up about all areas of CPG. This week, we are focusing on key reasons why brands fail and how CPG brands can avoid these landmines and ultimately be successful in this tough environment.

We are also covering brands that we love, including up and coming brands that caught our eye with fantastic branding and a great founder team.

Co-Hosts Alex Bayer and Wade Yenny with a combined experience in the CPG space of 35 years, chat about all things food and beverage in the market and share what’s going on in their lives and any current events.

They also do shout-outs and answer questions live from viewers & listeners during their show. This episode is sponsored by Rich nuts and their crowdfunding campaign now live at www.wefunder.com/richnuts