For the beverage industry, and frankly all of society, 2020 was a year of upheaval. Even as we say goodbye and good riddance, there’s plenty to look back on. As is tradition at BevNET, we present you with our Top 10 Most Read Stories of the year.
10. PepsiCo Announces Bang Energy Distribution Partnership
Though the agreement is now mired in litigation, the distribution partnership between Bang and PepsiCo was touted as a blockbuster when it was announced in April, suggesting an upheaval of the energy drink category with major implications for the entire beverage industry. The billion dollar performance energy drink brand has since seen declining sales, which it blames on Pepsi’s mishandling, but the conglomerate has said it plans to hold Bang to its end of the deal through 2023.
9. PepsiCo Acquires Rockstar Energy for $3.85 Billion
Before Bang could enter PepsiCo’s system, however, another landmark deal needed to be inked. PepsiCo’s $3.85 billion purchase of Las Vegas-based Rockstar Energy in March set the stage for Bang by ending an exclusivity clause in the two companies’ prior distribution agreement. The deal also formally positioned Pepsi as one of the top energy drink producers in the U.S.
8. Whole Foods Issues Merchandising, Receiving Changes & Mask Policy
The beginning of the COVID-19 pandemic might feel like it was years ago, but it was only April when businesses were learning how to adapt to the changing environment. Whole Foods’ mask policy for employees and shoppers is ubiquitous now, but in the spring the safety measures were among the most read stories on BevNET and NOSH.
7. Monster Preps for Coke Energy Launch, Reign Expansion in 2020
On the other end of the energy drink spectrum, Monster came into 2020 ready to tackle Bang head on through its Reign line of performance beverages. The company also had to adjust after its own scuffle with a strategic partner, as The Coca-Cola Company (which distributes Monster and has a minority ownership stake in the brand) launched its Coke Energy line this past winter. Despite entering arbitration last year when the company accused Coke of violating a non-compete clause, Monster CEO Rodney Sacks said in January that “[Coke sees] the products as being incremental to the category and not something that will take space away and share away from Monster.”
6. Coca-Cola Acquires Full Ownership of Fairlife
Coke began the year by making it official with dairy milk maker Fairlife, in which it previously held a 42.5% stake. Despite the headwinds faced by dairy beverages as plant-based alternatives rise, Fairlife has been among the fastest growing brands in the category. The brand reported over $500 million in retail sales last year, according to Nielsen.
5. Mother Beverage Rebrands as Poppi
Looking back on a year of trends and innovations, 2020 was the year of pop. Functional soda brands with pre- and probiotics were a fixture of beverage industry headlines this year, from Olipop’s $10M Series A raise to the launches of Health Ade Booch Pop and Culture Pop. Even Molson Coors got in on the game with its new probiotic seltzer Huzzah! However, it was the announcement in January that apple cider vinegar drink maker Mother Beverage had rebranded to become prebiotic soda Poppi that helped set the stage for the wave of gut health news that would follow.
4. Keurig Dr Pepper Acquires Limitless
Keurig Dr Pepper (KDP) positioned itself as a leading player in the sparkling water category this summer, when it inked a long-term manufacturing and distribution agreement with Massachusetts-based Polar Beverages. But its acquisition of caffeinated sparkling water brand Limitless six month earlier showed the strategic’s intent to become a dominant competitor in the space. For Limitless, which was founded in 2016, the deal marked an early and exciting exit.
3. Quick Reaction: Pepsi Takes on Bang
Hindsight is, as they say, 2020 (we had to do it). But immediately after Pepsi and Bang announced their partnership, there was a lot of uncertainty in the air. For example: what would happen with Anheuser Busch DSD houses, for which Bang had been a key driver? The answer: Super Coffee swept in with a master distribution agreement in June, while energy drinks like C4 and Celsius also helped fill the void.
2. Oatly Kicks Off 2020 Expansion Plan with Starbucks Partnership
We didn’t know in January that Oatly would become our Brand of the Year winner. Their partnership with Starbucks to place oat milk in select cafes was just one of many developments that helped get it there. The company also raised $200 million in July and CEO Toni Petersson announced global expansion plans shortly thereafter.
1. New Hope Network Postpones Expo West 2020
As global COVID-19 cases rose and the virus was first identified in the United States, the days leading up to Natural Products Expo West 2020 were, to undersell it, tense. In the week before the four day trade show, set to attract over 85,000 attendees from around the world, was scheduled to begin, New Hope was beset by calls to cancel the event and refund tickets. Over 100 companies pulled out of the show before it was finally postponed on Wednesday, March 2. It was officially cancelled two weeks later. Many in the industry praised New Hope for doing the right thing in postponing the event, but what the future of trade shows will look like remains unclear even nine months later.
It seems fitting that this news break was our most read story of 2020. But despite the unprecedented challenges the beverage industry faced this year, there’s plenty to look forward to in 2021. So crack open an RTD cocktail, set aside a hangover shot for the morning and toast to a Happy New Year.