Coupla updates from big beer cos’ top energy bev plays this week. Anheuser-Busch-aligned Ghost Energy is makin’ waves in Kroger stores, generating $20 mil in Kroger since launch, making it 5th largest energy brand for period, an AB memo obtained by INSIGHTS highlighted. Sales were behind only Red Bull, Monster, Rockstar and Alani Nu. Ghost’s new Warheads Sour Green Apple flavor is available exclusively in Kroger stores for first 90 days and Ghost brands will be on display planner from Dec thru Feb 2023.

Meanwhile, Molson Coors-aligned ZOA Energy named official exclusive energy drink of the XFL, org announced today. Of course, just so happens that ZOA co-founders, Dwayne “The Rock” Johnson and Dany Garcia, also own the XFL. As XFL season returns Feb 18, ZOA will be “the presenting sponsor for the kickoff weekend and opening day games across the US,” and opens up oppys for “immersive activations and events” all season, per release. That includes “every end zone in each stadium…transformed into the official ‘ZOA Energy Fan Zone,’ where the most spirited fan will be honored as the ‘ZOA Energy Fan of the House,’” among other initiatives.

Canada-based Davids Tea encountered a setback in its efforts to transform itself from a tea retailer to a CPG brand, reporting a 27.1% sales decrease in Q3 to C$16.2 mil as it wrestled with economic uncertainty and cycled range of items that had been discontinued over past year as it regroups. By region, sales in Canada sagged 28.1% to $12.9 mil while those in US fell 23% to $3.3 mil. By channel, ecomm biz was off 29.5% to $10.2 mil while wholesale biz to retailers besides Davids Tea itself plummeted 41.8% to $1.6 mil. Operating loss widened to $4.6 mil from $1.8 mil, $3.2 mil vs $1.7 mil when adjusted for restructuring activities, Covid-related govt payments, etc. Recall that Montreal-based co has closed all its US stores and all but 18 of its Canadian stores as it emerged from bankruptcy protection, seeking to build CPG biz around loose leaf teas, tea sachets, RTDs and other formats. "We remain focused on our competitive advantages with a strategic retail presence across Canada, a strong wellness-driven portfolio of teas, innovative product launches and broad demographic appeal of our brand both online and in-store," said CEO and chief brand officer Sarah Segal. "We anticipate our financial results will be under pressure until the economic environment becomes more stable."

New kids' drink being incubated by LA Libations called Plezi has broken chainwide at Sprouts Farmers Market, the co has posted. Canned line is positioned as containing half the sugar of Honest Kids along with added pre-biotic fiber. Judging by online listing on Instacart, Plezi is packed in squat, full-wrap 10-oz PET bottle highlighting prebiotic fiber and electrolytes, at only 40 calories per pack. It's heading out in flavors like Sour Apple, Tropical Punch and Orange Smash. Tho Libations principal Danny Stepper was carrying a sample in his pocket at BevNet Live conference last week, LAL is being low-key about item so far, promising that "there is SOOO much more to this story we are not yet announcing yet, but stay tuned . . . IT's BIG!!" Perhaps a celeb tie, which seems to be the M.O. for bev launches these days . . . De La Calle canned line of tepache-styled bevs has cracked Whole Foods nationally as well as The Fresh Market, Target's Calif stores and over 100 Kroger stores in Houston and Dallas, merchandising partner Basemakers posted . . . Even as Lagunitas prepares to close Seattle taproom and wrestles with tuff off-premise trends, its Hoppy Refresher non-alc brand has been a bright spot, cmo Paige Guzman told our sibling letter Craft Brew News. Target "just took Hoppy Refresher 6-pack cans nationally as a mandate," she reported, and "just this week we are pushing off the lines our canned Hoppy Refresher variety packs" (with Blood Orange and Berry Lemon) . . . Planting Hope said Giant grocer has picked up its Hope & Sesame line of sesamemilk as well as its RightRice Veggie Rice in stores across Mid-Atlantic states, including Penn, Maryland, Virginia and WVa. The altmilk is heading into 148 stores in shelf-stable 32-oz cartons in Barista Blend and Chocolate . . . Alkaline Water Co has continued its gradual DSD expansion for Alkaline88 brand, now recruiting C&M Sales for all of Arkansas and Alber & Leff Foodsfor western Penn, bringing its DSD footprint to 14 states now.

After private-equity and venture capital investments in food and beverages businesses soared in 2021, they've "settled" in 2022, as S&P Global Market Intelligence report delicately put it. Thru first 11 months of this year, total # of deals was at 705 with aggregate transaction value of $9.69 bil. That's well below 1,075 deals struck in 2021 at aggregate value of $54.7 bil. Surge of 2021 deals "lines up with a broader trend in private-equity M&A, which reached record levels last year but sank quickly just a few months into 2022 as inflation, rising interest rates and a shakier geopolitical situation took their toll on deal activity," assessed S&P. Largest deal of 2022 (so far) was $950 mil for stake in meal prep biz of Illinois-based private-label food/bev player TreeHouse Foods (BBI, Aug 11). Buyer was UK-based PE firm Investindustrial.

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This week in 1990, INSIGHTS reported Gambrinus mktg dir Ron Christesson confirmed that co would not be raising its Corona price to distribs, a move that caught many by surprise. In fact, Gambrinus wasn't even going up 65 cents to cover new excise tax hike! Ron cited economic pressures on consumers from "troubled economy" and added "we don't want the consumers trading down." Another reason: "We will be in a better position over the long-term to compete with the other border brands" (Canadian and Mexican). This "bold and aggressive strategy" offers "a tremendous opportunity to help reposition the brand, given the state of the economy." The price gap between both Canadian and domestic beers "will narrow considerably, by $2-2.50 per case at retail, depending on what wholesalers and retailers do," noted INSIGHTS.

One of the world's largest brewers is making its most significant foray into North American mkt in memory. Danish brewer Carlsberg agreed to buy Canada's Waterloo Brewing in proposed all cash transaction valued at C$144 mil (~$106 mil USD). Formerly Brick Brewing, Waterloo claims to be "Ontario's largest Canadian-owned brewery" and the "first craft brewery to start up" in the province, per release. It also offers "an extensive array of contract manufacturing services" and owns Canadian rights to Seagram Coolers as well as Landshark and Margaritaville.

AB's lookin' to test its new Sales Forecasted Ordering (SFO) tool for digital b2b orders with key chain partners and distribs, including an extensive test with Kroger beginning this week. After a "successful" test run with Goose Island Bourbon County Stout and Lakeshore Bev this Nov, Kroger agreed to implement a "large-scale digital order" of select AB products the week of 12/12 in preparation for busy end-of-year holidays, according to AB deck source shared with INSIGHTS.