Turns out not much deliberation or negotiation was at hand after all: with approval from Quebec court to implement bankruptcy restructuring plan, Montreal-based Davids Tea has moved quickly to shut down 124 unprofitable stores, including all 42 in US, as it bets future on ecomm and fledgling CPG biz. Closures will leave 100 remaining stores in Canada, many of which could also go if negotiations for concessions from landlords are unsuccessful. "We are fully committed to continuing to serve our loyal tea-loving customers with passion and ensuring that their favorite blends of tea are available online and in grocery stores and pharmacies, both during and after this restructuring process," per statement from coo/cfo Frank Zitella. In US, DTEA said US Bankruptcy Court for District of Delaware entered order under Chapter 15 of bankruptcy code that "provisionally recognizes the proceedings" in Quebec "and enforces the initial order issued yesterday by the Quebec Superior Court, in effect providing protection to Davids Tea and its US subsidiary from creditor action against its US assets." In filing restructuring plan, DTEA had indicated it would be engaging with landlords in order to preserve retail footprint, but apparently had already written off US stores as lost cause. Co had suffered declining revenue for several years, even before Covid caused shuttering on Mar 17 of all its stores. Those closings now look to be permanent for most of network.

A bit slow out the gate because of pandemic lockdowns, Flow Alkaline Spring Water finally is ready to activate its new alliance with Soul Cycle, starting tomorrow with Soul Outside class in Hamptons mecca where affluent New Yorkers vacation. Flow, which succeeds Fiji Water as packaged water partner, will host events every weekend thru Aug 2 at Barn and WTML locations where participants get sanitized headset, towel and Flow water.

Golden Road founder Meg Gill has been promoted to marketing vp of entire Anheuser-Busch Brewers Collective effective next Wed, A-B announced internally and our sibling newsletter Insights Express reported earlier today. Meg will report directly to Brewers Collective prexy Mika Michaelis. This marks first time an acquired brewery founder rose in exec ranks within A-B beyond "founder/advisory" role. Meg will oversee "all marketing efforts for Brewers Collective's 13 craft breweries + 'Beyond Beer' brands," including "brand strategy, insights, media, experiential, innovations and in-house creative," co wrote. Meg also will continue within same founder/advisory role for Golden Road. Recall, Brewers Collective includes 11 acquired craft brewers - Elysian, Goose Island, Golden Road, Karbach, 10 Barrel, Four Peaks, Breckenridge, Devils Backbone, Wicked Weed, Blue Point, Platform - plus acquired Virtue Cider, in-house Veza Sur brand. It also includes LQD line of flavored malt bevs (FMBs), which officially launched this spring (Mar 9), and new Maha organic hard seltzer created separately by Meg Gill and A-B.

Back in Mar, when pandemic started hittin' NY metro area hard, Albany/Saratoga distrib DeCrescente (150 miles up river from NYC) faced closure of over half of its customers and prospect of laying off lots of its 400 employees. "You still really [didn't] know how bad this was going to get," ceo CJ DeCrescente told Albany Biz Review. "What if we weren't deemed an essential business and I have over 400 employees that I don't have work for anymore? In those early stages we had to try to have a plan that what if we had to close." CJ applied for and got a $5.3 mil PPP loan on Apr 11, enough to pay staff for 8 wks. With on-premise lockdown distrib could have laid off 30-40 sales people. But once distrib biz deemed essential, DeCrescente redirected resources to off-premise and kept everyone working. On May 15, DeCrescente returned the loan. "We looked at what was going on around us, particularly with our customers who were struggling, and decided it did not fit for us." CJ said. "We were lucky. We chose to keep people going and things have worked out OK thus far. I'll be glad to go to a bar and restaurant again when things get to be the way they were." Salute CJ and the other distribs who have done the same!

As an early canned player in cold-brewed coffee 6 years ago, Austin-based High Brew needed any help it could get to make identity unmistakable at the shelf. Coffee is brown, so that dictated brown cans. Now, with 10 or more rivals likely to be lurking nearby, time has finally come for a rethink. So as current inventories are depleted, co will be bleeding into market in coming months a new look with vibrantly colored palette that pops off the shelf more, while opening up more of the precious real estate of core 8-oz cans for key messaging.

Goldman Sachs' Bonnie Herzog is lookin' bullish on Keurig Dr Pepper, seeing ample growth avenues, sufficient cash flow to pay down debt and good chance of significant M&A in future. "We see a favorable risk/reward ahead of Q2 result results as we expect a beat-and-raise," she wrote in announcing upgrade of KDP shares to "buy" rating from "neutral." Bonnie is raising her topline estimate by 1 pt to ~4% compound annual growth rate (CAGR) thru fiscal year 2025, "above KDP's 2-3% topline growth algorithm." Among key reasons for Buy rating, KDP's coffee biz is accelerating, with GS expecting revenue growth of +5.5% CAGR thru 2025. KDP's packaged bev biz has "a long runway" as well, and is expected "to continue to outperform during the recessionary period as downtrading pressures could increase, and KDP's portfolio typically sells at below average retail price points," per Bonnie. Another positive: "KDP's earnings visibility is strong relative to peers" and "we wouldn't be surprised if management increases FY20 net sales guidance to the high end of its 3-4% range and EPS guidance to $1.40-$1.42," she added. Not least, KDP has "a clear path to further deleveraging" its high debt load following DPS acquisition given its strong cash flow. This provides KDP "with significant optionality to undertake a number of value-accretive strategies (including a step up in tuck-in M&A or share repurchases)," wrote Bonnie. "We continue to view KDP as a platform company that will be well-positioned to pursue M&A down the road."

Austin-based SKU accelerator is in aggressive expansion mode. After teaming with consultancy BeyondBrands last fall to launch BeyondSKU accelerator for natural CPG brands, the operation cofounded by local lawyer Shari Wynne Ressler and Sweet Leaf Tea and Deep Eddy Vodka founder Clayton Christopher in innovation-rich city next month is slated to kick off program called ImpactSKU Preview in Minneapolis with Finnovation Lab to support purpose-driven startups. (It's the precursor to broader edition slated for summer 2021, and has participation from General Mill's 301 Inc venture arm.) Then this fall SKU will expand into Dallas/Ft Worth with program tailored to later-stage startups that have crossed $500K revenue threshold, recruiting 5 cos for 8-week program kicking off Sep 10. That effort is backed by DFW CPG, local networking group founded last year by Richard Riccardi and Rick Jordan to connect food/bevcos. Riccardi is attorney who long ran frozen entrée maker Food Source while Jordan co-chairs Venture Capital & Emerging Growth Companies practice at Polsinelli. While global pandemic period might not seem optimal for expansion, "one of the common themes that has come up from entrepreneurs is the need for guidance weathering these uncertain conditions," per statement from SKU exec dir Kirstin Ross. SKU's bev alumni over the years have included likes of Austin Eastciders, Bhoomi Cane Water, Sway Water, Shade Tree Lemonade and Whynatte Lattes, all of those brands with roots in Austin or New Orleans.

The dollars just keep rollin' in for altdairy protein maker Perfect Day. The Emeryville, Calif-based co, which uses fermentation process to make casein- and whey-based proteins with same nutritional properties as those derived from cows, said it's extending its Series C raise to $300 mil after pulling in $140 mil last Dec, per Crunchbase report. Earlier part of round was led by Singapore-based Temasek Holdings; latest tranche is led by Canada Pension Plan Investment Board, Crunchbase reported. CPPIB has made food-related investments in Jimmy John's chain and Ferraro Foods as well as in familiar names like Univision, Waymo and Neiman Marcus. By adding milk genes to microflora, fermentation process can convert plant sugar into whey and casein for use as alternative to dairy-sourced ingredients. Among uses for capital is to build out network of protein producers to ease supply constraints that co claims has been thrown into high relief by pandemic.