Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage industry. From early product lines to major investments to controversial topics, this column aims to quench your thirst for developments in this category.
Diageo leans towards luxury portfolio
Diageo is focusing on growing some of its highest-priced products as many consumers cut back on alcohol spending due to high inflation.
The company announced a new division, Diageo Luxury Group, focused on brands that retail for $100 or more. These include Scotch whiskeys Johnnie Walker, Brora and Port Ellen, and fine wines Justerini & Brooks.
Diageo pointed to IWSR data showing this price point has been the fastest growing in the spirits market since 2020, amid a growing desire for luxury goods among “young and diverse” consumers. . The Guinness maker’s luxury strategy will focus on collaboration between brands and strengthening its innovation pipeline, the company said. We also help manage the visitor experience for world-class distilleries such as Johnnie Walker Princes Street in Edinburgh, Scotland.
The division will be led by Julie Bramham, who previously served as global brand director for Johnnie Walker.
“We are honored to own Diageo’s finest assets – a collection of outstanding brands and talent that can combine tradition with forward-thinking initiatives,” Mr Bramham said in a statement. “Diageo is incredibly well-positioned to deliver for our clients and customers by integrating our wide range of luxury products, with a focus on expanding luxury-based experiences.”
Diageo is best known for its iconic beer products, but it recognizes how lucrative fine wine and spirits are as high-income consumers demand premium experiences. The category was valued at $867 billion this year by Market Research Future and is expected to grow at a compound annual growth rate of 5.2% through 2030.
The alcohol industry is adapting to changing trends as consumers from all walks of life expect different things from their beverage purchases. Earlier this year, an executive at rum maker Bacardi told Food Dive that consumers are looking for cocktails that offer variety and a bit of luxury. Coors Light maker Molson Coors has also prioritized premium spirits such as whiskey in recent years to offset losses in beer.
— Chris Casey
optional caption
Provided by Cheerwine
Cheer wine with alcohol
Family-owned soda brand Cheerwine is partnering with NoDa Brewing to launch Cheerwine Holiday Ale. This launch builds on Cheerwine Ale’s previous collaboration, which was announced in 2023 and quickly became one of the top brands in NoDa’s portfolio.
“Partnering with Cheerwine to create a holiday ale is a great opportunity to reunite two iconic North Carolina companies,” said Jacob Virgil, Director of Strategic Development, NoDa Brewing Company. “We are excited to introduce Cheerwine Holiday Ale to our fans and continue our commitment to creating great locally inspired beverages.”
The drink is reportedly 5.2% alcohol by volume and combines Cheerwine’s classic cherry and pineapple flavors with an American wheat ale base.
Founded in 1917, Cheerwine has collaborated with mixologists and chefs on recipes and cocktails to highlight the versatility of its drinks. Exposure helps increase brand awareness in the culinary field.
Alcohol is a common way for beverage companies to attract new consumers and drinking occasions to their brands.
For example, Coca-Cola introduced Topo Chico and Fresca to alcoholic beverages through partnerships with Molson Coors and Constellation Brands, respectively. SunnyD launches SunnyD Vodka Seltzer and PepsiCo and Boston Beer team up to debut Hard Mountain Dew alcoholic products.
— Christopher Doering
optional caption
Provided by Rangers
Langers cracks a craft coke that’s good for you
A juice brand is moving into the carbonated beverage market in response to consumer demand for healthier cola alternatives.
Langer’s introduced Craft Cola and Craft Cola Zero. Standard soda contains cane sugar, but sugar-free versions contain stevia leaf extract as a sweetener. The product’s caffeine is sourced from tea.
Los Angeles-based Langer’s believes its products are better than big cola brands because they don’t contain high fructose corn syrup, sodium or aspartame, which are considered “weird.”
“Our father started Langer’s Juice after running a small healthy juice shop in San Diego with our mother in the 1960s. Our family has long been steeped in many soda brands. “We want to bring back the nostalgic real sugar experience of Coke without the harmful and unhealthy ingredients,” company president Bruce Langer said in a press release. “We want people to enjoy an ice-cold can of Coke with their friends and know that they are drinking something clean and natural.”
Langers Coke is available for purchase on their website and on Amazon. The fruit-based beverage market has faced declining sales in recent years due to concerns about sugar content, so a move into soda could be an additional revenue stream for juice makers.
Aspartame, which is used in Coke Zero and Pepsi Zero Sugar, has proven controversial in recent years due to health concerns. In July 2023, the World Health Organization’s Cancer Research Division declared the sweetener to be “possibly carcinogenic” after considering “limited evidence”, and many consumers and This shocked those in the industry. The intergovernmental organization said the ingredient is safe to consume within certain limits.
A 12-ounce can of Coca-Cola Zero also contains 40 milligrams of sodium, which is 2% of your daily recommended intake.
As more consumers seek healthier alternatives to soda, a variety of brands promoting gut-healthy beverages are gaining traction, including Poppi, Olipop, and Health-Ade’s SunSip. But the nutrition labels on these products have sparked outrage as well, leading to a lawsuit earlier this year accusing Poppi of misleading consumers with its “prebiotic” label.
— Chris Casey
