Meat Snack Mania, Celsius In Hot Water and Tom Brady's Good Nut

0:05Monica Watrous:Welcome to the CPG Week podcast by BevNet and Nosh. I'm Monica Watrous, here with my co-host Brad Avery. If you're enjoying the show, please subscribe on your listening platform of choice. Here is the latest in food and beverage industry news. Jerky and meat sticks have emerged as one of the fastest growing segments in center store, fueled by consumers' increasing focus on protein, convenience and portion-controlled eating. A new report from financial services company CoBank shows shifting dietary habits, including the growing influence of GLP-1 weight loss medications, are accelerating demand for meat-based snacks and prompting manufacturers to invest heavily in production capacity.

0:45Monica Watrous:In the latest 52-week period, tracked retail sales of dried meat snacks rose 11.8 % to more than$6.6 billion, with jerky accounting for roughly$2.5 billion in sales and all other dried meat snacks generating$4.2 billion in sales per Sercana data. The category's rapid growth has sparked a wave of manufacturing investment. CoBank estimates that more than$1 billion in meat snack processing investments have been announced since 2020, representing a significant share of the roughly$8 billion invested across the broader animal protein processing industry during the same period. Among the largest projects, Jack Links announced a$450 million facility in Georgia, while Chomps is building new production facilities in Missouri and Nebraska that are expected to double its manufacturing capacity.

1:37Monica Watrous:Archer has also expanded aggressively, supported by a$100 million credit facility from JPMorgan Chase. Eugene Kang, founder and CEO of Archer, said that the financing will fuel additional capacity as the company is on track to surpass$500 million in sales in 2026. While beef jerky and beef sticks continue to dominate the category, CoBank sees growing opportunities for pork and poultry-based snacks as cattle supplies remain constrained. The trend is also reshaping the category's consumer base. Brands are increasingly marketing products towards females, families, health-conscious shoppers, and young consumers.

2:14Monica Watrous:GLP-1 medications are an emerging catalyst for category growth, according to the CoBank report. Consumers using the drugs often seek foods that deliver high levels of protein in smaller portions to help preserve muscle mass while reducing calorie intake. Research cited in the report found that GLP-1 users are spending more on categories such as meat snacks and protein bars, even as they reduce overall grocery and restaurant spending.

2:37Brad Avery:On the celebrity founder front, NFL legend Tom Brady is continuing to push further into the beverage industry with a new collaboration with GoPuff on a line of premium coconut waters called Goodnut. Goodnut comes in three shelf-stable varieties, original, chocolate, and sparkling in 11.8-ounce cans, and are launching exclusively on GoPuff starting this week of June 8th. Brady said that hydration has always been a big part of my routine, and while coconut water has been a staple for me, I knew we could take it to a completely different level by teaming up with GoPuff. The seven-time Super Bowl champion has previously been involved in the CPG space.

3:18Brad Avery:He launched his own nutrition supplement brand, TB12, which produced protein powders and electrolyte drink mixes. The brand later merged with Mike Rapoli's No Bowl in 2024. Brady has also previously been featured in ads for Coca-Cola, Smart Water, and Dunkin'. Despite once calling soda poison, Brady has also appeared in ads for brands like Pizza Hut and Candy Maker Ferrero that seemingly contradict his optimal wellness ideal. But in an interview in March with CNBC, he defended his stance. Quote, I think there's probably been people who have gone overboard with the kind of rigidity of my lifestyle or diet, Brady said.

3:54Brad Avery:I have kids and I have Halloweens and birthday parties and we're like a normal family.

3:57Monica Watrous:I don't think there's a whole lot that's normal about the Brady family, but right on.

4:01Brad Avery:It's a pretty unusual household, I got to imagine, but maybe it's normal in his head. So, you know.

4:06Monica Watrous:I just want to know what's behind the name Good Nut. And I get it. It's catchy. It's eye-catching. But technically, coconuts are droops or droopacious fruits, not nuts.

4:17Brad Avery:You're getting Tom Brady on the um-actuallys? I'll do it. Yeah. I'm not afraid. You can read more about the story on BevNet.

4:25Monica Watrous:Moving on to the mochi category, Morinaga & Co.'s recent acquisition of MyMochi gives the company a ready-made vehicle in the fast-growing frozen category, as well as greater distribution muscle to scale its high-chew ice cream product into more households. Our colleague Shauna Golden caught up with Terry Kwabi, president and CEO of Morinaga America, at the Sweets & Snacks Expo in May to learn more about the strategy behind the transaction. Morinaga's expertise spans popsicles, ice cream bars, chocolate-coated ice cream, and ice cream cups. The company extended its Haichu candy brand into the U.S.

5:01Monica Watrous:frozen dessert aisle last spring at Costco locations. And early feedback from sampling and social channels has been positive, suggesting there's a strong consumer appetite for both unique texture and bold flavor combinations. On the Maimochi front, Morinaga plans to enhance the brand's product development capabilities with its own brand building and commercial expertise. Together, the companies hope to accelerate innovation and unlock new growth opportunities in the frozen snack category. In the 52-week period ended January 25th, MyMochi generated$80 million in sales, according to Spins data, reinforcing its position as a category leader in Mochi ice cream.

5:37Monica Watrous:Looking ahead, Morinaga hopes to leverage MyMochi's distribution capabilities to expand the footprint of its other brands, including Haichu. In March, Morinaga announced plans to strengthen stateside production capacity with a second factory slated to open in 2027. Additionally, Morinaga believes the deal may enable it to introduce more of its portfolio to the U.S., including the Choco Monaca Jumbo waffle-style ice cream product currently available in convenience stores across Japan.

6:04Brad Avery:Texas Attorney General Ken Paxton has launched an investigation into Celsius Holdings, the parent company of Celsius and Alani New Energy Drinks, alleging that the Florida-based beverage maker improperly marketed its products to minors. According to a press release from the AG's office this month, the state is seeking to tamp down on youth-facing energy drink marketing, following what it says are multiple national incidents of children and young adults reporting adverse health effects after consuming energy drinks, including a 17-year-old Waslaco, Texas resident who died last year of an enlarged heart, allegedly after drinking an Alani Nu.

6:42Brad Avery:The investigation seeks to find whether or not Celsius has misled consumers regarding the safety of its products in violation of the Texas Deceptive Trade Practices Act. In a statement provided to BevNet, Celsius says it disagrees with the allegations and characterizations in the AG's announcement, but it plans to cooperate with the investigation fully. Alani News' 12-ounce energy drink line features 200 milligrams of caffeine per can, which can potentially be dangerous for children and adolescents to consume, according to the U.S. FDA. Paxton, a firebrand Republican who is currently running for the U.S.

7:16Brad Avery:Senate, claims that Celsius utilizes, quote, colorful packaging, playful design elements, and youth-oriented branding strategies that appeal directly to younger consumers.

7:25Monica Watrous:Even if this company is not directly marketing its energy beverages, social media influencers are making it cool to drink Alani Nu and Celsius. And that's out of the company's hands.

7:37Brad Avery:Absolutely. We've seen more concern about this in recent years, especially as candy flavors have come in. I remember a complaint against Ghost because of their candy flavors. The argument was that they were appealing too much to children. Now, Alani and Celsius don't use those co-branded flavors, but they are part of this new wave that has embraced a lot of more fun flavor innovation and colorful packaging. And there's an argument to be made that this marketing, whether intended or not is appealing to minors.

8:10Monica Watrous:Well, insiders can read more about that case at BevNet.com. Here are some other notable bits of news from the week. Long Weekend is modernizing instant soup using freeze-dried technology as it positions itself as a better-for-you convenient meal option. Refreshers, the fruit-forward functional drinks often with moderate caffeination, is expanding from quick-service restaurant chains into the beverage aisle. And finally, Better For You Sour Candy Maker Joyride has become one of Target's top-selling candy brands with a playbook built for modern consumers. For these stories and more, become an insider at BevNet and Nosh.

8:46Monica Watrous:That wraps up this edition of CPG Week by BevNet and Nosh. Thank you to our audio engineer, Joshua Pratt. Our director is Mike Schneider, and our designer is Erin Willett. If you enjoyed the podcast, please subscribe on your listening platform of choice, and we will see you next time. Thank you.