Nutrabolt in Bloom and Money For Magic Mind

0:04Welcome to the CPG Week podcast by BevNet and Nosh. I'm Monica Watrous, here with my co-host, Lucas Southard. Now here is the latest in food and beverage industry news. Nutribolt has taken a majority stake in Bloom Nutrition, positioning the parent company as a major platform across wellness categories, including energy drinks and powdered supplements. The Texas-based company, best known for its C4 brand of energy drinks and pre-workout supplements, led a$90 million investment round in Bloom last year for a 20 % stake. That served as the springboard for the successful launch of Bloom's first ready-to-drink beverage, Sparkling Energy, in 2024, with a second line, Prebiotic Soda, Bloom Pop, added this summer.

0:51Both products are distributed through Nutribolt's partnership with Keurig Dr. Pepper. Nutribolt did not confirm its ownership in Bloom, but verified its total investment as over$200 million, which would bring its stake to over 50%. Amidst a wave of digital native wellness supplements that have emerged over the past decade, female-focused Bloom has found staying power thanks to, in part, its active social media following and organic support from TikTok creators. One thing that I'll be tracking as a result of this news from Nutribolt is how that affects their partnership and the investment that KDP has taken in Nutribolt.

1:30A couple weeks ago, KDP announced it was acquiring JDE Peets for$18 billion and would in the process separate its coffee business from its refreshment soft drinks. KDP's refreshment soft drinks include not only the legacy brands like Dr. Pepper, Snapple, 7-Up, but also a lot of distribution partnerships with various brands like Electrolit, Nutribolt, and Black Rifle Coffee. So how KDP works with these brands that it is aligned with, both with investments and as a distributor through its DSD network, will be really interesting to track now that NutriVolt is the majority owner of one of the higher growth next-gen brands out there.

2:22Insiders can read more about that deal at BevNet.com. It's not sober October yet, but the adult non-alcoholic category has established that alcohol reduction is a year-round exercise these days. One of the early trailblazers of the category, Toast, has secured over$1 million in bridge funding. In the next few weeks, the round will close and will total somewhere closer to$1.5 million, according to Toast founder and CEO Brooks Addington. The Vermont-based wine alternative brand launched in 2017 and has taken a slow and steady approach to innovation up until this past year. At the beginning of the year, Toast launched canned RTDs of its sparkling wine alternative in white tea and rosé varieties, and it followed that launch up in May with a sangria option in its signature 750 milliliter glass bottle.

3:19Toast received a minority investment from Constellation Brands in 2023, further proving that non-alcohol alternatives were more than a passing fad, but a growing subcategory of adult beverages. At the beginning of the year, non-alcohol RTD maker Hyo also received a minority investment from Constellation Brands, solidifying the Bev Alk Company's interest in alcohol alternatives. Just this week, the Stoli Group led a$3.6 million round for NA Spirits maker, the Pathfinder. All of these investments back up recent Gallup polling that reported that only 54 % of U.S. adults consume alcohol, representing an all-time low in Gallup's 90-year history.

4:02Piling onto the data, TBD Ventures founder Trevor Haig wrote on LinkedIn that according to NIQ brand bank data, NA Spirit sales just hit$925 million, representing a 22 % year-over-year growth. As part of that data, about 92 % of NA alternative shoppers are also buying alcohol, showing that this isn't really about abstinence, but trading out some alcohol drinks for adult non-alcohol alternatives. Well, that makes sense. And you could draw parallels to the flexitarian movement. There's a lot of people who eat meat and they also buy plant-based meat alternatives as they look to reduce their consumption.

4:46And it appears there are similarities in this burgeoning adult non-alc market. What'll be interesting to see is who the winners and losers are and how it shakes out because I expect there'll be a lot of consolidation in the future like there was in the plant-based meat alternative category. Speaking of evolving categories, the meal kit market is in transition. This week, ready-to-eat meal delivery business Factor announced its largest menu overhaul as it works to elevate science-backed nutrition via more than 100 new weekly offerings designed to appeal to a variety of consumer demands, including high-protein, GLP-1 support, and globally-inspired flavors.

5:27Alongside the overhaul, the company appointed registered dietitian, influencer, and cookbook author Kylie Cicada to the newly created role of no BS officer. And BS in this case stands for bad science. The menu realignment comes five years after Factor, formerly Factor 75, sold to German owned HelloFresh for$277 million. The updates will double the brand's high protein options, extend its existing GLP-1 support line, and bring additional Mediterranean diet inspired recipes into the fold. These changes come on the heels of competitor Blue Apron's unveiling of a quote major evolution that includes a new identity, expanded product lineup, and subscription-free shopping options.

6:16Nearly two years after its$130 million acquisition by Wonder Group, Blue Apron has more than doubled its assortment to more than 100 meals, most of which can be customized. In addition to its signature meal kit offering, the menu now includes pre-made meals and one-pan meals featuring pre-chopped and prepared ingredients. Mental performance shot brand Magic Mind has raised$12.4 million of a nearly$16 million Series A round led by BFG Partners with additional funding from existing investor Ro Khanna Venture Partners. This is BFG Partners' first investment in Magic Mind and brings managing partner of the firm Dayton Miller to the brand's board.

7:03Magic Mind told me at the beginning of the year that they had been raising new capital last year, and this appears to be a follow-on to that. Founded in 2020 by tech industry entrepreneur James Beshara, the brand grew its base online until the beginning of 2024, when it launched into Sprouts as well as high-profile grocers like Erwan. In the last year and a half, the brand has opened up additional regions in the conventional and natural channels, spreading from its base in Southern California into the Southwest, Texas, and Florida. Magic Mind has also launched a few new varieties of its matcha-laced energy shot.

7:40The two new SKUs bookend its OG focus shot with a higher caffeinated max variety and a quote, stimulant-free version called free that has no caffeine. In addition to the three shots that are available in retail, Magic Mind also has a caffeine-free gummy and a sleep aid shot that are available online. The brand is a growing contender in a subcategory of energy and performance shots and drinks that use cognizant, L-theanine, B vitamins, and other plant-based ingredients to improve mental function. Many are using the trend towards caffeine reduction to bring new consumers to the category. On a lighter note, Liquid Death is dialed up to 11.

8:28The Canned Water brand unveiled a limited edition 11-pack signed by the members of the fake rock group Spinal Tap. There are 11 of these 11-packs in existence, and they sell for a very reasonable$1 ,100. wait first of all you're telling me spinal tap was not a real band i thought the documentary that was made about them was about a real hair metal band i mean that's one of my favorite documentaries i thought it was all true story as a mockumentary lucas mockumentary didn't catch that bit well either way i am excited to watch spinal tap too but i don't think i'm ready to shell out$1 ,100 for a 11 pack.

9:13Just not a true fan of Spinal Tap or Liquid Death. No, but I am a true fan of 80s hair metal. I also wanted to shout out a brand that I'm quite fond of. I met them this past year at Fancy Food in New York called Valor Energy. I highlighted them as part of a feature I did this week about run clubs. And Valor was one of the brands I talked to who has done activations with various run clubs as it has launched its nitrogen infused energy drink, which I found really enjoyable. And I plan to buy some for my running because what I like about it is it's an energy and hydration beverage, but it also is not carbonated, which is kind of the selling point for them.

10:05It doesn't give you that bloaty feeling. You and I are both endurance athletes or marathon runners. And I know I am a very brand loyal runner. Runners are sort of the best evangelists for things that we like. We want to tell everybody about what we love, including running. And not everybody wants to hear about it, but how do you know if somebody is a marathon runner? Don't worry, they'll tell you. Oh, I haven't heard that one. Here are some other notable bits of news from the week. After years of challenging earnings releases and high losses, the company behind beverage manufacturer and water brand Flow Water was foreclosed on last month by two of its creditors.

10:49Food and beverage innovation firm JPG Resources is expanding its capabilities and its West Coast presence with the acquisition of food product development consultancy Cullinex. And finally, Celsius Holdings has appointed seasoned marketing executive Rishi Daing as chief marketing officer. For these stories and more, become an insider at BevNet and Nosh. And if you're enjoying the show, please subscribe on your listening platform of choice. 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 Aaron Willett.

11:28If you enjoyed the podcast, please subscribe on your listening platform of choice, and we will see you next time.