Celebrity brand launches, better-for-you alternatives and Bang Energy were top of the mind for BevNET’s readers this year. With the final week of 2022 nearing an end, here is our annual Top 10 Most Read Stories of the year.
10. Russell Wilson, AJ Vaynerchuk Team Up On Hydration Beverage Local Weather
NFL quarterback Russell Wilson and digital media guru AJ Vaynerchuk garnered high attention in March when they announced their new nootropic hydration beverage brand, Local Weather. The functional sports drink – which features electrolytes, ashwagandha, L-theanine and L-tyrosine – is geared towards Gen Z consumers and also leaned into the growing web3 trend with plans to launch a limited number of NFTs granting holders exclusive perks.
“Throughout my career I’ve found the high-sugar and artificial sports drinks we all know prevent me from achieving my best,” Wilson said in the press release. “As a professional athlete and father, I truly believe we owe it to the next generation to provide a better option that suits their performance needs and speaks to their creative pursuits. It’s time to start a new conversation and change the dialogue around sports hydration forever.”
According to the brand’s website, the products are expected to launch sometime in 2023.
9. Better-For-You Brands Form ‘Alliance’ to Reduce Sugar Consumption
It’s no surprise by now that consumers are continuing to turn away from sugary foods and beverages in favor of healthier alternatives. In January, a coalition of better-for-you brands – led by Super Coffee co-founder Jimmy DeCicco – announced the formation of the Alliance to Control Excessive Sugar (ACES) to help educate consumers and promote CPG companies offering low sugar products.
In addition to Super Coffee, the inaugural group included mini cookie maker HighKey, prebiotic soda Olipop, lemon water brand Lemon Perfect, protein drink Koia, ice cream and cookie mix brand Enlightened, and low-sugar cereal Three Wishes. Since the publication of our story, more companies have joined the project including Shaka Tea, Chomps, True Made Foods, Remedy Drinks, MUSH, IWON Organics, BHU Foods and NuSkool.
8. Liquid Death To Launch Iced Teas, Begin Shift to U.S. Production In 2023
Liquid Death made a lot of noise in 2022, bringing in $145 million in financing across two funding rounds with a $700 million valuation. With its canned water business firmly established, the three-year old startup announced in October it was seeking new territory to dominate with the launch of an iced tea line.
In this story, Liquid Death co-founder and CEO discussed the decision to move into the tea category – which gives the brand an opportunity to make caffeinated drinks without going the obvious energy drink route – as well as plans to move production to the U.S. in the new year.
“When your brand is called Liquid Death, if you were to create an energy drink with 300mg of caffeine, and a kid could drink five in an hour and actually die, it’s not funny,” Cessario said. “I think what makes us successful is taking something that is completely safe and having fun branding it as something extreme where it is very tongue-in-cheek and fun because it’s sort of two different worlds at odds with each other coming together. That’s what makes it interesting.”
7. VPX Files for Chapter 11 Bankruptcy Protection
Feeling the brunt of numerous legal and distribution setbacks this year (more on that below), Bang Energy parent company VPX filed for Chapter 11 bankruptcy protection in October, leaving the future of the number-three energy brand uncertain.
While founder and CEO Jack Owoc presented an optimistic outlook in the announcement, and the company received a $100 million loan to keep operations going, Bang has continued to see its sales decline as key staff leave the company and it works to rebuild its national DSD network. Still, despite the massive challenge ahead of him, Owoc as an entrepreneur has a long history of re-emerging from the depths and he’s shown no signs of slowing down yet.
6. PepsiCo Announces $550M Investment, Exclusive Distribution Deal with CELSIUS
Following the dissolution of its distribution agreement with Bang this summer, PepsiCo shook up the energy drink landscape once again in August when it announced a $550 million investment and 8.5% ownership stake in CELSIUS. The Florida-based performance energy brand has been among the fastest growing energy drinks on the market over the past year and the agreement is poised to greatly expand its presence in channels like foodservice, universities and convenience and gas.
5. Monster Awarded $293M in False Advertising Suit Against Bang
A precursor to VPX’s bankruptcy filing, in September a California federal court delivered a powerful blow to the company when it ruled in favor of Monster Energy in its false advertising lawsuit challenging the efficacy of Bang’s “Super Creatine” ingredient, finding the company in violation of the Lanham Act. VPX was ordered to pay Monster $293 million in damages and the company is now in the process of redesigning its cans to remove Super Creatine from its labels.
The trial was particularly notable for Owoc’s in court appearance, in which it was reported he regularly “sparred with Monster’s counsel,” leading much of his testimony to be stricken from the record, while also praising Super Creatine as “the greatest invention in the history of supplements.”
4. Bang: Judge Confirms $175M Arbitration Award, 5% Royalty on Future Sales
The September court ruling was Monster’s second legal victory over Bang this year, following a $175 million arbitration award in July which found VPX had violated the trademark of beverage company Orange Bang. Despite Owoc’s attempts to challenge the decision, including public remarks that it was the work of a “rogue arbitrator,” VPX was also ordered to pay a 5% royalty on all future sales of Bang Energy to Orange Bang and Monster as well as $10 million in attorney’s fees.
3. Logan Paul’s PRIME Hydration Looks to Powders, Energy & International Expansion
Sports drink brand PRIME Hydration has been one of the fastest growing beverage launches of the year, having only begun sales in January before executing on a rapid retail growth strategy. PRIME was co-founded by YouTubers Logan Paul and KSI – in partnership with Kentucky-based CPG company Congo Brands, and our interview with Paul showcased his big ambitions for the brand, including a global expansion.
“I think it’s a challenge that is exciting for us,” Paul told BevNET in October. “Just like anything that I’ve done online, and in my career, when I’m standing at the bottom of the mountain, I’m excited to climb it. I think with PRIME, we’ve begun our ascent up that mountain, and we look forward to taking on the big dogs in the category.”
2. Bang Energy CEO Jack Owoc: Company “Not For Sale,” Pepsi Planned to “Destroy” Brand
It appears that Bang captured BevNET readers’ attention like no other this year, especially our August interview with Jack Owoc a month after the company formally ended its PepsiCo partnership (but prior to the false advertising lawsuit decision). Answering questions via email, Owoc declared that Bang and VPX were “not for sale” and alleged that “Pepsi had a 12 step plan to destroy Bang Energy,” detailing the brand’s sales woes under the partnership.
Owoc also doubled down on his position against the arbitrator in the company’s trademark infringement lawsuit with Monster, telling BevNET VPX had appealed the ruling, and discussed another legal dispute with Universal Music Group (UMG) which sued the energy brand for unlicensed use of copyrighted music in its social media marketing.
1. Bang Announces Split from PepsiCo
Concluding this reverse retelling of Bang’s turbulent year, our most read story of 2022 was the June announcement formally ending Bang and PepsiCo’s distribution agreement. The deal, signed in 2020, was originally set to end in October 2023, but had been ill-fated from the first year when VPX attempted to terminate the agreement early in November 2020.
On stage at BevNET Live Summer 2022, Owoc called the agreement a “learning experience” but refused to say he regretted entering the relationship. The company now heads into 2023 with a growing DSD network and a mission to survive bankruptcy, but only time will tell what’s in store for the company in the new year.