Why Beverage Brands Are Reshaping Their Portfolios To Cater To The Broader Needs Of Consumers
PALM BEACH, Fla., June 23, 2022 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - It is an exciting time to be in the beverage industry. The global beverage market is driven by consumer demand for premium/super-premium products. This is mainly due to the increase in the young-adult demographic, coupled with the increase in the spending power of millennials. As most of the popular leading retailers are coming up with their own private-label brands, private-labeled products are fastly occupying the central rows of the major retail stores. This is bringing loads of traction and growth in the private label beverage market. A report from Pipecandy.com projected that the global beverage industry is valued at USD 1813 billion for 2022 and the industry is growing at a CAGR of 4%. It's value estimations are USD 1885 billion in the year 2023. The beverage industry will further expand and be valued at USD 1961.24 billion in 2024. High disposable income, rapid urbanization, and changing lifestyles are the major factors that contribute to the growth of the global beverage industry. The report said: "The beverage industry can further be classified into non-alcoholic and alcoholic categories. The non-alcoholic beverage market includes soft drinks(soda), fruit juices, syrup, caffeinated drinks, sports drinks, coffee, and tea. While the alcoholic beverage market has categories such as brewing, distilled spirits, and wines. The global non-alcoholic beverage market size is valued at USD 1337 billion in 2022. The market is anticipated to grow at an estimated CAGR of 5.5%. It's value estimations are USD 1885 billion in 2023 and will be valued at USD 1488 billion in 2024. The largest segment of the non-alcoholic beverage market is soft drinks. The soft drinks market is estimated to be 201,103 million dollars in 2020. In addition, researchers estimate that the average revenue per person in the Soft Drinks segment amounts to be US $90 in 2020." Active companies in the markets this week include Splash Beverage Group, Inc. (NYSE: SBEV), AB InBev (NYSE: BUD), Celsius Holdings, Inc., (NASDAQ: CELH), Constellation Brands, Inc. (NYSE: STZ), The Coca-Cola Company (NYSE: KO)
Pipecandy.com continued: "The global alcoholic beverage market share was valued at USD 1559 billion in 2022. The market is expected to grow at a CAGR of 2%. APAC alcoholic beverage market size is of value USD 11.57 billion dollars in the year 2022 and the market is estimated to expand at a CAGR of 4.5%. The value of the alcoholic beverage market is estimated to be USD 12.09 billion dollars in the year 2023 and is expected to reach USD 12.63 billion dollars in the year 2024. The increase in the trend of drinking in a social gathering is one of the main factors that is driving growth for APAC's alcoholic beverage market. While beer and spirits are mostly consumed categories, consumption of wine and premium alcoholic beverages is becoming popular in recent times. The increase in the per capita income and the influence of western culture is bringing change in consumption patterns in this region. The size of the US beverage market is estimated to be USD 237 million dollars in the year 2022. The industry is growing at a CAGR of 3.7%. The US alcoholic industry comprises 80% malt-based beverages and 20% of Spirit-based beverages. Among the malt-based beverages, beer is the most consumed product while the interest in crafted beers is trending among the Millennials (the major sect of consumers in this market). With flavors driving consumer interest the local brewers and DTC brands are capitalizing this opportunity to penetrate the market. Beverage brands have realized that volume is no more the path to profitability in today's marketplace. They are reshaping their portfolio to cater to the broad needs of their new consumers. They are moving towards premium selections from their traditional core categories. This diversification in the market is happening all over the market through acquisitions."
Splash Beverage Group, Inc. (NYSE American: SBEV) BREAKING NEWS: Splash Beverage Group Enters into Agreement to Acquire 80% of Pulpoloco Sangria - Controlling Manufacturing and Distribution Process to Add Scale and Drive Revenue Growth - Splash Beverage Group, Inc. ("Splash" or the "Company"), a portfolio company of leading beverage brands, today announced that it has signed an agreement to acquire 80% of Pulpoloco Sangria in a transaction that will give Splash control over the manufacturing and distribution of Pulpoloco across the US while adding international markets, capturing the additional margin and revenue.
Splash acquired the distribution rights to Pulpoloco in 2020 and is currently the exclusive importer of Pulpoloco for the United States. Splash has overseen the dramatic growth of the brand, including a 43% increase in sales through May versus the prior year. Pulpoloco Sangria is made in Madrid, Spain following the family recipe of the founder Paul Damon with three varietals, Crisp White, Soft Rose', and Smooth Red. Pulpoloco is packaged in a highly innovative, ecofriendly paper can called the CartoCan. Splash expects to complete the transaction by the end of August.
Robert Nistico, Splash Beverage Group's Chairman and CEO, commented, "In addition to bringing Pulpoloco entirely under the Splash roof, we will benefit from the additional layer of margin AND increase our global footprint and revenue. Pulpoloco was the only brand in our portfolio where we were not directly responsible for the manufacturing. Owning the manufacturing process entirely, which includes the exclusive rights of the innovative eco-friendly packaging, not only expands those rights, but will provide us with the opportunity to ship in greater bulk and to markets with faster growth potential. We believe this will help us add scale and drive additional revenue growth while potentially improving margins."
Splash announced that Pulpoloco's founder Paul Daman will also be joining the Splash team and will manage the international business for Pulpoloco and other Splash brands as well. CONTINUED… Read the Splash Beverage full press release by going to: https://splashbeveragegroup.com/investor/press/
Additional recent developments in the markets this week include:
Anheuser-Busch InBev SA/NV (NYSE:BUD) Corona, an AB InBev global brand owned by BUD, recently announced the launch of Corona Tropical, the brand's first lightly sparkling alcoholic drink made with a hint of real fruit juice* available worldwide. An inclusive beverage for consumers who embrace the Corona lifestyle but are looking for an alternative to beer, Corona Tropical is a highly refreshing new way to enjoy Corona. The newest innovation by Corona is currently rolling out globally in China, Colombia, Peru, Panama, Ecuador and the UK, with additional markets launching later this year, starting with Canada.
According to Research and Markets, the global alcoholic infused sparkling water market size is expected to expand at a compound annual growth rate of 12% over the next several years. As more consumers around the globe look for alternative, low-calorie beverages, Corona created a product catered to consumers searching for that Corona lifestyle, beyond beer. Corona Tropical is a refreshing alcoholic beverage with no added sugar and less than 100 calories per can, available in several tropical flavors. With Corona Tropical, Corona is expanding its global beverage portfolio to offer a new, refreshing, and flavorful taste of paradise, by developing a completely unknown category in some markets around the globe.
Brown-Forman Corporation and The Coca-Cola Company (NYSE: KO) recently announced a global relationship to debut the iconic Jack & Coke cocktail as a branded, ready-to-drink (RTD) pre-mixed cocktail option.
Jack Daniel's & Coca-Cola RTD, inspired by the classic bar cocktail, will be made with Jack Daniel's Tennessee Whiskey and Coca-Cola. Jack Daniel's & Coca-Cola RTD, inspired by the classic bar cocktail, will be made with Jack Daniel's Tennessee Whiskey and Coca-Cola. The beverage will be available in markets around the world, with initial launch planned for Mexico in late 2022.
Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, recently announced it will report financial results for its first quarter ended May 31, 2022, on Thursday, June 30, 2022, before the open of the U.S. markets. A conference call to discuss the financial results and outlook will be hosted by President and Chief Executive Officer, Bill Newlands, and Executive Vice President and Chief Financial Officer, Garth Hankinson, at 10:30 a.m. EDT, June 30, 2022.
The conference call can be accessed by dialing +1-877-407-9121 and entering conference identification number 13730234, beginning at 10:20 a.m. EDT. A live, listen-only webcast of the conference call will be available on the company's website at ir.cbrands.com under the News & Eventssection. When the call begins, financial information discussed on the conference call, and a reconciliation of reported (GAAP) financial measures with comparable or non-GAAP financial measures, will also be available on the company's website under the Financial History section. For anyone unable to participate in the conference call, a replay will be available on the company's website.
Celsius Holdings, Inc., (NASDAQ: CELH), maker of the leading global lifestyle energy drink, CELSIUS®, recently announced the company had rung the opening Nasdaq bell on Friday, May 27th to celebrate the 5th anniversary of their initial listing and held a product sampling event in front of the Nasdaq MarketSite building, located at 4 Times Square, between 43rd & Broadway.
CELSIUS® President, Chairman and CEO, John Fieldly, commented, "It's an honor to celebrate our five year listing anniversary on Nasdaq and recognize the amazing milestones the CELSIUS® team has accomplished over that time, which was facilitated with our up-listing to the Nasdaq platform. Since our initial May 24, 2017 listing, the company's share price has increased over 1,400% from $4.04, to $62.44 on May 25, 2022, with a market cap increase of over 2,600%, from $170 million to $4.7 billion.
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