Defining Ultraprocessed, Celsius Cools Off, Reinventing 7UP

0:05Monica Watrous:Welcome to the CPG Week podcast by BevNet and Nosh. I'm Monica Watrous, here with my co-host, Lukas Southard. If you're enjoying the show, please subscribe on your listening platform of choice. Here is the latest in food and beverage industry news. The U.S. Department of Health and Human Services kicked off the week unveiling its proposal for significant changes to the federal food regulatory framework that could have broad implications for packaged food manufacturers, ingredient suppliers, and brands. The reforms would increase federal visibility into ingredients used in the food supply and establish for the first time a proposed federal definition of ultra-processed foods.

0:43Monica Watrous:The proposed definition incorporates input from thousands of stakeholders, including food companies, consumer organizations, researchers, and members of the public. Establishing a federal definition could provide greater consistency for future nutrition research and potentially for how policymakers approach products considered ultra-processed. For manufacturers, a standardized federal framework could eventually influence nutrition policy, product development, reformulation strategies, and how brands discuss processing with consumers, even though the current proposal does not itself establish new restrictions on ultra-processed foods.

1:19Monica Watrous:The Consumer Brands Association, however, pushed back on the proposed definition, raising concerns about its scientific basis and potential impact on consumers and food manufacturers. The trade group said the definition could encompass roughly 80 percent of the nation's food supply, creating confusion for consumers and potentially driving up grocery costs. The initiatives are part of the Trump administration's wider Make America Healthy Again agenda and could ultimately reshape how food companies document ingredients, engage with regulators, and communicate about their products. We will continue to follow this story on Nosh.com.

1:58All is not well at Celsius these days. The energy drink maker, which now houses the Alani Nu and Rockstar brands, had its second quarter earnings report last week, and it wasn't as rosy as some investors would have liked. While revenue rose 11 % year-over-year to$817 million, it was primarily driven by Alani New and the completed integration of Rockstar Energy from PepsiCo last August. Meanwhile, the Celsius brand saw sales slip 2%, causing revenue to dip 12%. On the call, Celsius CEO John Fieldley conceded that his efforts to rationalize SKUs slow its innovation pipeline and rebalance inventory across the PepsiCo distribution network did not quite work out.

2:50Fieldley said that looking back, he definitely would not have cut as many skews within the organization through its commercial plans, but quote, the base business with Celsius is strong. It has extremely healthy consumer base and we have robust innovation plans in the works for 2027, he said. Now, that assertion did not seem to assuage investors as much as intended, because the next day, the founder of Rockstar Energy, who controls about 4.7 % of Celsius, threw his 12 million shares, called for a leadership change. Rockstar founder Russ Savage, and yes, that is a sweet name that he officially changed it to last year, told CNBC that Fieldly had lost credibility with the investment community and that Celsius needed quote, one person making the decisions, paying attention to every detail, not a circle of people in a firing squad.

3:48Fast forward to this week and Fieldly is still in the top seat at Celsius, but there have been some changes. President and Chief Operating Officer Eric Hansen is out After joining the company in March 2025, he previously served as Senior Vice President of Strategic Partnerships at PepsiCo. Meanwhile, Celsius Holdings Executive Vice President of North American Sales Tyler Bohannon has been promoted to Chief Commercial Officer and Tony Guilfoyle, Celsius' former Chief Customer Officer and newly crowned Chief Business Transformation Officer, will have a broad remit to implement, quote, enterprise-wide initiatives focused on execution and capability building, according to Fieldly.

4:39We'll see how this all shakes out, but it certainly seems like Celsius is on notice, especially if you look at Monster Energy's earnings from last week, where the category leader topped$2.5 billion in global revenue for the first time in a single quarter. Let's just say there is very little room to stumble in the energy drink category these days.

5:03Monica Watrous:the thing that you said that really caught my attention in that whole bit was this dude's changed his last name to savage yeah yeah he was born i believe russell weiner uh or wiener um his middle name was like like goldhelm or something like that so he did have a cool middle name but uh yeah i guess he officially changed it in 2025 to russ savage which I'm not going to hate the decision. I mean, I'd go by Russ Savage. It's a savage name. Sounds like an MMA fighter. It's quite fitting for someone who, you know, started the rock star brand, I believe, in like his condo in the early 2000s. So, you know, good for him.

5:47Monica Watrous:Well, from savage to Kardashian. I don't know. So, Chloe Kardashian's snack startup is betting the future of functional foods extends beyond protein. Its latest innovation, Cloud Plus, debuted this week exclusively at Walmart stores with a line of tortilla chips formulated with collagen. Available in sweet, heat, nacho, jalapeno, and buffalo flavors, Cloud Plus Collagen Protein Chips combine 17 grams of protein, including 2 grams of hydrolyzed collagen, in each 1.6-ounce bag. While collagen has become a fast-growing ingredient across beauty and wellness products, as well as the beverage category, Cloud sees an opportunity to bring the functional ingredient into an entirely new segment.

6:37Monica Watrous:The concept was developed in partnership with Walmart, where the product will launch in approximately 2 ,500 stores with prominent merchandising support, including a dedicated wellness display and a separate multi-pack placement. Conversations with Walmart's wellness merchandising team revealed an opportunity to reach shoppers seeking a more approachable and female-friendly option among established players in the set, like Wild and Quest. The launch also represents a broader evolution in Cloud's product roadmap. The collagen protein ships arrive as Cloud continues an aggressive retail expansion that began with its protein popcorn.

7:15Monica Watrous:The brand has grown to more than 32 ,000 retail doors and has become the fastest-growing popcorn brand in tracked retail channels, with more than 104 ,000 points of distribution. Cloud has also expanded its partnership with Starbucks. After initially launching popcorn in roughly 12 ,000 company-operated cafes, Starbucks added a second flavor and has since expanded distribution into licensed stores, including airports, college campuses, and Barnes & Noble locations. I think that, I don't know, just guessing here, I think we might have had something to do with this. You can take all the credit for all the success of Cloud.

7:51I'll give it to you. No. It was the Nosh interview at Nosh Live on stage that really put the brand on the map, not the celebrity behind it.

8:01Monica Watrous:No, listen, obviously, Khloe Kardashian and Jeff Rubenstein, the CEO and co-founder of Cloud, were speakers at Nosh Live last year. But so was Kristen Piper, who is the head of wellness merchandising at Walmart. And we facilitated a meeting with them after our panel. And I think that might have been where this happened, where these conversations began. Okay, then I take back my glib statement. Maybe you are responsible. Well done. Do you get a piece of the profits? I got some free chips. I don't know if that really counts. I'll take it. They were good. But, you know, I think that just goes to show that stuff happens, things get done at our events, NOSH Live, BevNet Live, and BrewBound Live.

8:42Monica Watrous:And who knows, you might be witnessing the next big partnership or innovation when you attend our events. Hey listeners, as of August 13th, lots of new jobs are live at cpgjobs.com, including from North American Sake Brewery and Topa Topa Brewing. Allagash Brewing, Serene Beer, and Owls Brew join the rush. Great companies, hot opportunities, so find your next move and apply now. Now, got a role to fill? Reach a self-selected CPG audience and cut wrong fit screening with operators, sales leaders, supply chain pros, and retail buyers who know the category. Post your job at cpgjobs.com today. Post the role.

9:29Monica Watrous:Use code TASTERADIO26. Save money on your listing. Your inbox should reflect the parts of CPG that matter to you. Choose from BevNet's seven free newsletters covering beverage, food, beer, spirits, careers, education, and more. Sign up and select your favorites at cpgmedia.com slash newsletter.

10:08Monica Watrous:are shaping the business behind the scenes. See all 50 honorees at nosh.com slash impact 50. Well, Monica, I do have a question for you. I'm imagining you've heard of lemon-lime soda, but have you ever heard of a lime-lemon soda? No. I know. It doesn't quite roll off the tongue, but 7-Up is giving the spotlight to the green-hued citrus fruit in a reformulation that has been maybe 15 years in the making. Now, I don't actually think that 7up has been working on this reformulation for 15 years, but it has been that long since they have reformulated their citrus soda. And along with it, they have refreshed their packaging to align with Lime's dominant role in the flavor profile.

10:56While it's not a complete change, the new branding does a lot of calling out to Lime and has adjusted its logo to read vertically on the can, which some here at the BevNet community might think controversial in terms of how you read a can. But it is a big change. Now, the move comes as legacy soda brands continue to be challenged from disruptor brands in carbonated soft drinks. And a lot of these disruptor brands are finding a broader consumer appeal with low sugar options and functional ingredients like protein or gut health fiber. I will remind you that Slice was acquired in May 2024 by Suja, and they have leaned not only on the nostalgic appeal of Slice for those of us who grew up in the 90s drinking it, but Suja also reformulated Slice with better for you ingredients like real fruit juice, pre, pro, and postbiotics and five grams of sugar per 12-ounce can.

12:05The brand has also leaned into trends like dirty soda, and you're seeing that reflected by many beverage strategics like Pepsi and Coke also launching LTOs and new products with kind of a dirty soda appeal. Dirty drinks and And slice aside, full sugar soda brands are seeing an insurgency from this next generation crop of brands like Olipop and Poppy, which have redefined soda for the modern consumer. Now, if you count in clear protein and creatine and even hydration sodas, brands like 7-Up are really feeling the heat to innovate and bring some newness back to these older, more recognizable sodas.

12:55Monica Watrous:Lime Lemon. Lime Lemon. It really doesn't roll off the tongue. But I will say I'm more of a lime guy than a lemon guy, so I appreciate it. Have you tried the reformulated 7-Up? I was just going to say they sent me two cans and my brother and I tried them and I couldn't really tell the difference. But I can't remember the last time I had it. Like I cracked a 7-Up. So what we really need to do is do a side by side. Yes, you do. And see if we can taste the difference. I mean, when I was growing up, I wasn't allowed to have caffeinated sodas when I was allowed to have a soda, which was few and far between.

13:34So usually 7-Up or Sprite was like my go-to when I was like on a plane. So I did kind of grow up with the citrus soda being my go-to soda as a kid. But yeah, it's been a while. I'm not really as much of a soda drinker these days.

13:48Monica Watrous:I feel like the only time I ever drank 7-Up in my youth was when I had like some kind of stomach ailment. 7-Up and saltines. Yeah, why is like 7-Up supposed to, like isn't supposed to like ginger ale be more of like a settle your stomach? It was the same thing. It was like, oh, I can drink 7-Up when I'm feeling nauseous, but why? What a terrible association to have with a brand. Yeah, I don't think they're doing that with their rebrand. That's not part of the whole new 7-Up Lime Lemon reformulation. Here are some other notable bits of news from the week. Xevia is pairing a leadership transition with its biggest ever marketing investment to accelerate growth through stronger brand awareness and improved retail execution.

14:33Monica Watrous:Once Upon a Farm is raising its full-year outlook for the second consecutive quarter since going public, as expanded retail distribution, innovation, and stronger consumer engagement continue to fuel growth. And finally, Little Spoon is embracing its mission as an end-to-end feeding platform by launching eight new offerings between June and August. For these stories and more, become an insider at BevNet and Nosh. That wraps up this edition of CPG Week by Bevna and Nosh. Thank you to our audio engineer, Joshua Pratt. Our director is Mike Schneider and our designer is Aaron Willett. If you enjoyed the podcast, please subscribe on your listening platform of choice and we will see you next time.

15:28Thank you.