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MrBeast Beverage Biz? 🍹
CPG WIRE
January 25, 2023
GM and Happy Wednesday, friends. Here's what we're covering this morning:
Guayaki Yerba Mate lands $75m 🍹
Bill Ackman backs a luxury watch brand ⌚️
LVMH makes history 📈
Tyler Haney gets into energy drinks ⚡️
Champagne sales are booming 💰
Also congrats to Hugh Thomas on becoming CEO of Top of the Mornin Coffee.
The Big Story 📰
Popular Youtuber MrBeast could be launching a beverage brand in the near future. This is all speculation, of course, but as Mark Gallo pointed out in a tweet, MrBeast was recently seen hanging out with Danny Stepper of L.A. Libations.
To the layman, the name Danny Stepper means nothing, but to CPG nerds he's an unstoppable force in the beverage space. Brands associated with Stepper include BODYARMOR, Core Hydration, ZICO Coconut Water, ZOA Energy, and Athletic Brewing. Most "successful" CPG founders have one or two exits linked to their name, but you'd need two hands to count Stepper's.
MrBeast mingling with Danny Stepper obviously means nothing at this juncture, but if he were to launch a beverage brand, Stepper is the best imaginable partner. Collaborating with Stepper wouldn't guarantee success — the beverage space is expensive and cutthroat — but he would be able to open doors and mitigate mistakes.
The categories that MrBeast would be most likely to enter, energy or hydration, have been competitive for decades, but they've become even more competitive as other Youtubers and streamers have launched their own brands. Logan Paul & KSI have turned PRIME into a hydration and energy juggernaut. The popular streamer Nadeshot seems to be doing well with Juvee too.
MrBeast is an extremely capable entrepreneur with massive reach, but I wonder if that's enough for the ultra competitive beverage space. I bet we'll find out pretty soon and it'll be a fun ride.
Deals 💰
Mergers & Acquisitions
Beverage firm Patco Brands acquired KYLA Hard Kombucha, an Oregon-based producer of hard kombuchas and canned cocktails. Patco owns a number of alcoholic beverage brands like Rancho La Gloria, TX Ranch Water Co., and Gran Agave. Link
This is going to be a mouthful...General Mills sold tortilla chip brand Food Should Taste Good to Powered by Real Food From the Ground Up, a portfolio of salty snack brands. In December they acquired Popchips. Link
Fundraising
Per Douglas Yu of Forbes, Guayaki Yerba Mate raised $75m in fresh funding. Details are scant but according to a recently filed Form D, Emily White of Anthos Capital and Robyn Rutledge of SBG Growth joined the company as directors. Guayaki was founded in 1996. Link
UK-based sparkling water brand DASH Water secured $10.7m in funding. Beringea, who earlier this month invested in non-alc brewer Lucky Saint, led the round. I haven't tried their products yet but they certainly look great. Link
Edgard & Cooper, a premium pet food brand from Belgium, raised over $21m from The Craftory and DLF Venture, the family-owned consumer investment firm from Frederic de Mevius (Verlinvest founder). Link
London-based sustainable chocolate brand Love Cocoa raised just over $5m from author and investor Richard Koch. Love Cocoa was founded in 2016 by Cadbury scion James Cadbury. The funding will be used to shore up the executive team and open a number of retail stores. Link
Billionaire investor Bill Ackman and Hellcat LP invested $59m in British luxury watch brand Bremont. Bremont was founded in 2002 by brothers Nick and Giles English. Link
Australian tennis player Nick Kyrgios invested in probiotic soda brand ALIVE. The brand was developed by Melbourne-based Gen U Brands. Link
Actor/hunk Miles Teller increased his stake in The Long Drink Company, a producer of the popular Finnish long drink. Teller first became involved in 2019. Link
What's New 😍
London-based non-alc brewer Lucky Saint will open a pub in March. The venue will sell both alcoholic and non-alcoholic beverages. Love it. Link
Fruit-infused water brand Hint launched a new product line: Hint+ Vitamin. Link
There's a new low alc beer brand from Austin, TX — Rick's Near Beer. Rick's was founded by Hops & Grain co-founder Josh Hare. Link
New kefir water brand from the UK, PiQi. Pretty good-looking bottles, especially the 750ml ones. Link
Kristen Bell's CBD skincare brand, Happy Dance, closed down. Her other CPG brands — baby care brand Hello Bello and nutrition bar brand This Saves Lives — are seemingly doing very well. Link
CBD wellness brand Joggy has been developing an energy drink with its community. Joggy was founded by Tyler Haney of Outdoor Voices fame. Link
Iconic cheap beer brand Natural Light received a vintage brand refresh. They knocked it out of the park. Link
Equilibra — the consumer investment firm from KIND founder Daniel Lubetzky — rebranded and relaunched as Camino Partners. Camino has backed a number of CPG startups including Belgian Boys, Somos, and Prose. Link
There's a new "braincare" brand called Parable. Link
Data 🖥️
Distribution News 🚚
Cereal brand OffLimits rolled out nationwide at Target.
Haircare brand Pardon My Fro to launch at Walmart.
UK plant-based fried chicken brand VFC now available at Raley's.
Custom skincare brand Proven will launch at Sephora.
Twentynine Palms, Jared Leto's skincare brand, is now available at Goop.