Jim Morano

Diageo doubles down on non-alcoholic spirits with the acquisition of Ritual Zero Proof & now owns three of the five world's largest non-alcoholic spirit brands Ritual Zero Proof was founded in 2019, and became the #1 non-alcoholic spirits player in the US after joining Diageo’s accelerator program in 2020. Five reasons why this deal makes sense: 1) Fast growing: The US non-alcoholic spirits has been the fastest growing category with +31% L5Y CAGR. 2) Incremental: 94% of non-alc buyers in the US also purchase alcoholic beverages, spending on avg $292 more than households exclusively purchasing alcohol demonstrating the incrementality of the category to beverage alcohol. 3) High Right-to-Win: Ritual is already a #1 non-alcoholic spirits player in the US, with a strong market position and tailwinds 4) Synergistic: being a #1 player globally in both alcoholic and non-alc spirits Diageo is well positioned to build on Ritual’s current success and scale it up further leveraging its GTM muscle and category expertise 5) Close to the Core: being a part of Diageo’s accelerator (Distill Ventures) since 2020, Ritual already knows what it takes to make cooperation with a spirits giant successful, limiting risks of integration challenges Exciting times for Diageo 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: FF&A solves the most complex strategic problems of the world's largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (eCommerce, DTC, and eB2B) and M&A. 14 out of the world's 20 largest FMCG companies are repeat Clients 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲, 𝗰𝗳. 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗙𝗠𝗖𝗚 𝗠&𝗔 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗯𝗲𝗹𝗼𝘄: https://lnkd.in/efD5RNWX 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #cpg #mergersandacquisitions https://lnkd.in/dXAZQ242 Pernod Ricard The HEINEKEN Company AB InBev Carlsberg Group Campari Group William Grant & Sons The Coca-Cola Company PepsiCo

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Tequila!   Many large players such as White Claw, and The Boston Beer Company (maker of Truly) are expanding their offerings and releasing tequila-flavored ready-to-drink (RTD) cocktails as consumers are increasingly turning to tequila offerings in the beverage alcohol sector.   I had the opportunity to share my insights and thoughts on this surging trend with The Food Institute. In the article, I emphasized how innovations in ready-to-drink (RTD) formats, including tequila-based seltzers and margaritas, are meeting consumer demand for novel flavors. Additionally, I pointed out that tequila production has remained stable despite global supply chain disruptions and highlighted the increasing consumer preference for high-quality artisanal spirits.   Read the full article here: https://lnkd.in/gB9f-3Ci   #Tequila #BeverageIndustry #MarketTrends #ConsumerInsights #RTDCocktails

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Agave Abundance vs. Agave Anxiety: Why Tequila Brands Boom While Agave Fields Bust Tequila, the spirit synonymous with good times and possibly questionable decisions. But behind the seemingly endless rows of celebrity-endorsed brands and overflowing shelves lies a surprising truth – there just aren't that many agave plants, the key ingredient in tequila production. So, how can so many brands exist with a limited supply? The blue agave plant, the heart and soul of tequila, takes a leisurely 7-8 years to mature. This slow growth cycle can't keep pace with sudden surges in tequila demand; particularly as Tequila regulations dictate a minimum agave content is at least 51%; 100% for premium brands. Some brands might use various techniques to make the most of their agave. This could include using more neutral alcohol alongside the agave or harvesting younger, less flavorful plants (which can lead to a harsher taste and the need for additives). Those additives, particularly those used in the mixto category (containing less than 100% agave), might add coloring, sweeteners, or artificial flavors to mimic the taste of a high-quality tequila. The key to a good tequila experience lies in understanding the label. Look for 100% agave tequilas for the purest expression along with aged tequilas, particularly those aged for several years that often use higher quality, mature agave plants, resulting in a smoother and more complex flavor. Its also a good idea to seek out smaller, artisanal producers that prioritize quality agave and traditional production methods, offering a unique and potentially more sustainable approach to tequila. While the abundance of tequila brands might seem at odds with the limited agave supply, it's a story of adaptation, innovation, and sometimes, a dash of creative stretching. By understanding the challenges and making informed choices, you can navigate the tequila landscape and find a bottle that reflects your taste and values.

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Check out Modern Retail's most recent article, where Jocelyn Florence discusses the bubbly waters of retail and regulations when it comes to NA beverages (pun intended)!

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In light of Goldman Sachs Equity Research's recent analysis of NielsenIQ retail scanner data, some interesting insights about the non-alcoholic beverage industry emerge. Here are the key points to note: •   The industry's overall dollar sales grew by +3.5% in the two-week period, although these figures slowed down from +4.2% in the four-week period. •   Carbonated soft drink sales grew by +3% in the two-week period, with a slight drop in volume sales at -2.9% and a spike in average pricing by +6%. • Energy drinks faced declines, with dollar sales down by -1.1% while volume sales fell by -2.3%, and average pricing remained consistent at +1.2%. •   Bottled water saw noteworthy growth of +5.2% in the two-week period with fairly consistent volume sales at +6.1% and a decline in average pricing by -0.9%. •   Sports drinks emerged as a positive area with an increase of +9.1% and growth in volume sales by +6.3%. The average pricing also saw a significant rise of +2.6%. •   The coconut water category sustained robust growth, up +24.4% in the two-week period, supported by a rise in volume sales and a decrease in average pricing. A few brands that stood out: Vita Coco is leading the fast-growing coconut water category and grew +21.7%. Keep your eyes out for 100 Coconuts. They are making some impressive waves. Spindrift Beverage Co, Inc. was up +24.2% in sparkling water sales. Hydration-focused products are doing well as a category. Electrolit USA +35.9% and PRIME -29.7% Energy Drink leaders Red Bull and Monster Energy were down, while many others are still experiencing nice growth. CELSIUS Holdings, Inc. I +15.9%, Nutrabolt +21.1%, Alani Nutrition +57.1%. poppi is not slowing down at all +154.5% and Zevia also grew their sales by +8.2% The non-alcoholic beverage sector reflects fascinating patterns in sales and pricing across different beverage categories and subcategories. These trends pose potential implications for competitive strategies, branding, and product offerings within the industry. I look forward to your valuable input as we collaborate to comprehend the evolving dynamics of the non-alcoholic beverage sector. What stands out to you? #BeverageIndustry #NonAlcoholicBeverage #IndustryTrends #Insights #InnovationInBeverages #MarketTrends

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Price of 16oz Pack Bread Goes Up As of today, the controlled price of a sixteen-ounce loaf of bread is up by thirty-five cents. The wholesale cost now stands at one dollar and eighty-five cents, while the retail cost now stands at two dollars and ten cents. But it is not the only bakery product that is seeing a hike in the price. Products such as burger bread, hot dog bread and dinner rolls will also see an increase. It is a decision that the majority stakeholders of bakeries across the country say had to be made, because the cost of raw materials and packaging have increased by eight percent. News Five’s Paul Lopez took a closer look at the price increase, by speaking with residents, stakeholders and one government agency that had the final say on these increases. Here is that report.

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GLOBAL RUNNING DAY! Your physical well-being is important, give it the focus it deserves. 10 benefits of running. Benefit 1. Running adds years to your life and life to your years. Benefit 2. Running helps you sleep better. Benefit 3. Running can improve your knees and back. Benefit 4. Running helps you lose weight and keep it off. Benefit 5. Running improves your immunity. Benefit 6. Running improves cognitive function and reduces cognitive decline and Alzheimer's. Benefit 7. Running reduces the risk of many cancers. Benefit 8. Running improves mental health and reduces depression. Benefit 9. Running improves glucose regulation and lowers the risk of diabetes and pre-diabetes. Benefit 10. Running lowers your blood pressure. Bonus Benefit: Running builds your self-esteem https://lnkd.in/gbPMU5PA

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The Double-Edged Sword of On-Premise Sales for Small Liquor Brands The on-premise market, while offering significant potential for small liquor brands, comes with unique challenges related to time, cost, and inventory turnover. Securing on-premise placements often requires extensive relationship building with bar owners, managers, and beverage directors. This can be a time-consuming process involving networking, cold calling and attending industry events. To introduce a new product to on-premise establishments, brands often need to invest in sampling events, cocktail competitions, and other promotional activities including a huge investment in time make account visits. These can be costly, especially for smaller brands with limited marketing budgets and employee resources. To address these challenges, small liquor brands should consider targeting specific bar segments or regions, leveraging social media and content marketing as well as collaborating with influencers, bartenders, and other industry professionals to accelerate brand visibility and drive sales. By understanding the time and cost associated with on-premise placements, small liquor brands need to develop effective strategies to navigate this competitive market and achieve long-term success. Alternatively, a targeted spend and off premise strategy might prove more effective to meeting corporate revenue objectives.

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