Beverage Companies Explore Broader Horizons with Healthier Options

It's no secret that more people are gravitating towards "healthier" products with "better-for-you" ingredients. Whether we are talking about food or drinks, the trend continues to prevail. As a result of this trend, we’re seeing major beverage players dive in head-first into this space. The opportunities are limitless and the chance to convert customers over to the brand has made these companies eager to develop new products.  

According to Euromonitor, the number one trend in regards to healthy living and beverages is "back to nature and no to sugar." Starbucks is well-known for creating many delicious and sugary coffee blended drinks but with the growing interest in plant-based protein, they recently launched a healthier and equally delicious alternative. Their new protein blended plant-based drink comes in two different flavors—Almond and Cacao. These drinks contain pea and brown rice protein and depending on your flavor of choice, it will either have almond butter and almond milk or coconut milk and cacao powder.

Starbucks is not alone in this venture. Other beverage giants such as Coca-Cola have decided that expanding their drink portfolio is the way to go. The company has developed tools, which gives the consumer more control and choice over what they are drinking. Coca-Cola has even recommitted to reducing calories from sugar by 20% by the year 2025. How do think this will affect companies that were created as “healthy” and “good for you” from the start?

Watch the video above to learn more about the healthy beverage trend and find out how healthy companies are expanding their drink portfolio to compete.

Will These Two New Fruity Coca-Cola Soda Flavors Attract the Attention of Millennials?

Will These Two New Fruity Coca-Cola Soda Flavors Attract the Attention of Millennials?

While the war on sugary beverages battles on as organizations lobby for sugar taxes in certain areas of the country, big soda brands are adapting by investing in healthier beverages like flavored sparkling waters and craft sodas.

At the end of last year, we pulled data from Foodable Labs to see what beverages millennials were drinking.

In the last half of 2016, 46.9% of millennials were drinking craft beer, 9.2% were drinking craft soda and 11.8% were still drinking major soda brands.

But in the areas with soda taxes being implemented, the percentage of major soda brand drinkers was much less. In Boulder only 3.4% of millennials were drinking major soda brands and in San Francisco it was 7.4%, versus the 11.8% of Millennials in the rest of the country.

So it’s no wonder that big soda brands are developing innovative craft products to stay competitive.

Although soda companies are launching or investing in these healthier innovative beverages, Coca-Cola isn’t giving-up on sugary beverages just yet and is focusing on building its specialty cane sugar soda portfolio in 2018. The company saw 8% growth in the specialty soda category in 2016.

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Best-Selling Mexican Tequila Brand Jose Cuervo Takes a Shot at February IPO

After postponing its IPO twice last year when the value of the peso nosedived 15 percent to record lows in the aftermath of Donald Trump's election (undoubtedly in connection to Trump's opposition to the North American Free Trade Agreement and his incitive rhetoric regarding relations with Mexico), tequila brand Jose Cuervo is taking its shot at going public.

This isn't light news to swallow, considering this 200-something-year-old company doesn't just boast 11 generations of tradition — also owning 35 percent of the worldwide tequila market share and 33 percent in the United States' tequila sector in 2013, Jose Cuervo is expected to have a highly successful launch.

In the last few days of January, it was said that the brand was formally marketing deals across multiple cities and that investors can expect a price as early as Wednesday, Feb. 8. According to International Business Times, the company is aiming to raise over $700 million in an initial public offering and is opening up 476.6 million shares between 30 to 34 pesos each, or about $1.41 to $1.60.

Since 2002, sales of tequila in the U.S. have more than doubled in volume, skyrocketing from 7.2 million cases to 14.8 million in 2015, Quartz reported, citing the Distilled Spirits Council of the United States. And with North America making up about 60 percent of Jose Cuervo's sales volumes, it's not surprising that there are lot of eyes on this IPO and a lot of hope for it to go well.

Saludos a Los Muertos! Check out the recipes for all the cocktails on our Instagram page. #diadelosmuertos

A photo posted by Jose Cuervo USA (@josecuervotequila) on

There’s #MCM, #WCW, and #TBT. So why not #TreatYoselfTuesday? Great shot by @danni_mitchell #TreatYoself #TYT

A photo posted by Jose Cuervo USA (@josecuervotequila) on

Still, despite its success with tequila, Jose Cuervo has been working on diversifying its product lines, when just a few years ago it traded its control of tequila maker Don Julio for Bushmills Irish Whiskey.

"We were a company in which 80 percent of our sales were tequila. We wanted to get rid of that independence," Juan Domingo Beckmann, CEO of Casa Cuervo, said to Latin Trade Magazine. Jose Cuervo stated the proceeds would fund its growth, expand its portfolio, and go toward the development of its Mexican hometown, Tequila, which is fitting for this tequila brand.

Yet, the day after Jose Cuervo announced its upcoming IPO, Whitehouse spokesperson Sean Spicer said that a 20-percent border tax on Mexican goods would go toward building the border wall. Later on, he clarified that this was "not a policy proposal," but an example of ways the wall could be paid for. Will the actions of the Trump administration put more salt in Jose Cuervo's shot at an IPO? Or could the 15-percent drop in the peso be a long-term advantage for Cuervo by making its products more affordable in the U.S., as Bloomberg Intelligence analyst Julie Chariell suggested? And why did the brand mark February on the calendar after the November election?

Analyst Gerardo Copca of MetAnalisis, a Mexican-based financial advisory firm, said a factor of its timing was decided on the dialogue relationship between the two countries.

"The governments of Mexico and the United States are going to dedicate themselves to negotiation that creates confidence," he told International Business Times. "Mexico's stock market has shown that recently."

Tequila lovers will soon see how this tequila titan performs when it comes to stock, but no matter which way the dice rolls, it's time to stock up on the glasses and limes. Read More