The Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage sector. From inaugural product lines to big investments and controversial topics, this column aims to quench the thirst for developments in the category.
Dogfish Head splashes into summer with margarita
Beer maker Dogfish Head is expanding its lineup of ready-to-drink canned cocktails with the help of a tropical spirit.
The Delaware-based brewer is launching Strawberry Lime Tequila Margarita cocktails, made with 12% alcohol-by-volume, which combines tequila with real fruit juices, according to a press release.
The new beverage joins its existing spirits-based drinks, which include Pineapple Orange Rum Mai Tai, Passion Fruit Citrus Vodka Mule, Strawberry Honeyberry Vodka Lemonade, Blood Orange Mango Vodka Crush and Grapefruit Pomegranate Vodka Crush.
Sam Calagione, Dogfish Head’s founder, said the brand was drawn to launching a margarita-style cocktail because it is the most common type of higher-ABV cocktail on menus.
“Our goal with this launch, and the expansion of our award-winning RTD cocktail portfolio, is meeting drinkers where they are. That’s why we’re innovating not only with new flavors, but with ABV levels,” Calagione said.
In the RTD beverages space, tequila is flourishing, with hard seltzer giants White Claw and Truly both launching cocktails made with the spirit. Tequila soda brand Casa Azul and distiller 818 Spirits are also seeing growth in the category. The tequila market is poised to grow at a compound annual growth rate of 11.1% by 2032, when it is projected to be worth $42.5 billion, according to Research And Markets.
— Chris Casey
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Courtesy of Suntory Global Spirits
Suntory sets forth with new name and approach
Suntory Global Spirits has announced a new brand identity, dropping the name Beam Suntory and charting a path forward with a focus on growing its international spirits and ready-to-drink offerings.
The company is the spirits arm of Japan-based Suntory Holdings, which first acquired whiskey maker Jim Beam in 2014. Since then, the company has more than doubled its worth to $5.5 billion through the growth of Jim Beam, Maker’s Mark, and Japanese whiskies like Yamazaki and Hakashu, according to the company. It has also launched RTD offerings like -196 hard seltzer and On The Rocks Premium Cocktails.
“Now is the right moment to deepen our shared passion for the innovation and artistry that deliver incredible experiences through our products and fully unlock our unified advantage across our leading spirits portfolio,” said Tak Niinami, Suntory Holdings president and CEO, in a statement.
Suntory Global Spirits CEO Greg Hughes told Forbes the intention behind its new name is to elevate “what makes us distinct as a premium spirits business,” and allows flexibility for expansion into new categories in the future.
The company made its latest move in the RTD space last month with the launch of Jim Beam Kentucky Coolers, malt-based offerings that aim to compete with White Claw. The ready-to-drink category is projected to be worth $40 billion by 2027, according to IWSR data.
— Chris Casey
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Courtesy of Health-Ade
Health Ade’s Sunsip refreshes lineup for the summer sun
Just in time for the summer heat, Sunsip by Health-Ade launched its latest prebiotic soda flavor in Whole Foods on Wednesday.
Its new Lemon Lime offering adds to the brands existing line up of Raspberry Lemonade, Cherry Cola, Strawberry Vanilla and Root Beer.
The brand is hoping to “transport consumers back to sweet summer days,” as it continues to innovate in the probiotic soda space.
Kombucha maker Health-Ade was looking to expand its lineup in the functional beverage space when it launched Sun Sip in February.
Health-Ade is the second best-selling kombucha brand in the U.S., hitting $113 million in sales last year, according to Statista data.
By entering soda, the kombucha company wanted to cater to consumers who felt “too daunted” to try the acidic flavor profile of fermented black tea, according to Charlotte Mostaed, Health-Ade’s chief marketing officer.
The sodas are free from artificial sweeteners such as stevia, aspartame and erythritol.
Better-for-you soda alternatives have been climbing in popularity in recent years — with soda brands Poppi and Olipop leading the charge.
These brands are already established in the prebiotic beverage space and have seen exceptional sales growth since launching.
Consumers have demonstrated a desire for less sugary alternatives to drinks like colas and ginger ale. Zero sugar soda brand Zevia has also experienced significant growth since 2020.
SunSip is one of the few prebiotic sodas on the market that includes vitamins, minerals, and is sweetened with Monk Fruit — instead of stevia — according to the company. The sodas also include nutrients such as Vitamins C, B6, and B12 and 10% of the daily value of zinc and selenium.
— Elizabeth Flood