Pernod & Coca-Cola Collab on RTD 🍸

Welcome back to This Week in CPG, folks. Here’s what we’re covering this morning:

• Vista Outdoor sells division 🏹

• Proximo Spirits takes control of Icon 🥃

• LIHA Beauty lands funding 🕯️

• Flamingo Estate unveils new collection 🍅

• Chamberlain Coffee x DEUX 🍩

Shout-out to Rivo for making loyalty and retention on Shopify so easy 💰

Pernod & Coca-Cola Join Forces 🍸

Coca-Cola and Pernod Ricard are joining forces to launch Absolut & Sprite, a new line of ready-to-drink cocktails featuring Absolut, the world-renowned premium vodka, and Sprite, one of the world’s best-selling soft drinks.

“This very promising and pioneering project brings together two leading companies who are committed to offering their consumers new experiences around premium products,” said Alexandre Ricard, CEO of Pernod Ricard.

Starting in early 2024, consumers will be able to purchase Absolut & Sprite in two varieties: one featuring your typical Sprite, and the other featuring Sprite Zero. The initial plan is to roll out the brand in the UK, Netherlands, Germany, and Spain.

From a very high level the collaboration between Coca-Cola and Pernod Ricard makes a lot of sense. Vodka remains one of the top-selling spirits across the globe — even more popular than tequila in key markets like the U.S. and Europe — and Sprite is a common, no-brainer mixer that’s often purchased with it. The RTD cocktail category is growing fast, too. According to IWSR, a leading source of beverage alcohol data and analysis, the category is expected to expand by an impressive $11.6B by 2026.

Independent of Absolut & Sprite, both Coca-Cola and Pernod Ricard have been busy trying to capitalize on surging consumer demand for RTDs. Earlier this year, Coca-Cola partnered with Brown-Forman to launch a canned version of the iconic Jack & Coke, and soon thereafter they announced Red Tree Beverages, their federally licensed alcohol subsidiary.

Pernod has been aggressively focused on RTDs as well. They invested $22M into their first-ever RTD canning line in Arkansas, then spent over $100M on Ace Beverage Group, a leading Canadian manufacturer of RTD beverages.

If Coca-Cola’s previous partnership with Brown-Forman is any indicator — Brown-Forman CEO Lawson Whiting described Jack & Coke as the most successful U.S. launch in company history — then Absolut & Sprite is poised for immediate and immense success. At the end of the day, Absolut Vodka and Sprite are both globally recognized, warmly regarded brands, and Coca-Cola and Pernod Ricard have the distribution chops to ensure that Absolut & Sprite is on shelves and properly merchandised.

A Message From Rivo

What if you could increase your repeat purchase rate by 20% or more? If that sounds enticing, check out Rivo, the ultimate loyalty and retention platform for Shopify stores.

Brands like Hexclad, Way of Wade, and Rareform trust Rivo to help design stellar loyalty and repeat purchase experiences.

Interested? Schedule a demo right here.

Deals 💰

Mergers & Acquisitions 

• Vista Outdoor (NYSE: VSTO) agreed to sell its sporting products division to CSG for an enterprise value of $1.91B. The all-cash transaction is expected to close in early 2024. Included in the sale is Vista’s guns and ammunition division. Reuters

• Proximo Spirits, the spirits distributor and owner of Hanger 1 Vodka, Proper No. Twelve, and Stranahan’s Colorado Whiskey, became the sole owner of Icon Spirits — its Spanish joint venture — after buying out Maison Villevert. Icon Spirits will be dubbed Proximo Spain moving forward. Just Drinks

Fundraising

• LIHA Beauty, a British beauty brand that merges English aromatherapy with West African ingredients and traditions, closed a £1M funding round led by a private equity firm. The black-owned brand sells a variety of natural skincare and home fragrance products that are recyclable and reusable. WWD

• Cultivated seafood startup BlueNalu secured $35M in Series B funding from new and existing investors. Details are scarce but the company will use the funds to scale production. Food Business News

What’s New 🤩

Apparel, Cosmetics, and Wellness

• Flamingo Estate, the luxury lifestyle brand founded by Richard Christiansen, has launched a new collection of products based on its best-selling tomato candle. The new collection features hand soap, lotion, room spray, surface cleaner, and a handful of other products. The packaging is gorgeous ⬇️ Flamingo Estate

• London-based feminine care brand Daye officially launched in the U.S. Daye sells a variety of products including sustainable tampons, balms, pads supplements, etc. The brand plans to launch on Amazon in the coming weeks. Beauty Independent 

• Swiss luxury goods firm Richemont is taking Milan-based leather goods brand Serapian to the U.S. and beyond with a new pop-up boutique in NYC. Serapian has been crafting accessories in Milan since 1928. Glossy

Food, Beverage, and Alcohol

• Chamberlain Coffee and DEUX launched a new cinnamon sugar donut hole line. Beautiful packaging and I can confirm that DEUX’s vegan and gluten-free donut holes are delicious. Both companies are really good at brand collabs ⬇️ Chamberlain Coffee

• Issa Rae, the talented actress and producer, partnered with E. & J. Gallo Winery to launch a new wine brand called Viarae Prosecco. Viarae is available nationwide at Target at a SRP of $19 ⬇️ PR Newswire

• Canadian design studio BANGBANG has been doing some terrific work lately. Worth a gander. Twitter

• Yolele Foods is parting ways with its longtime supplier and distribution partner Woodland Foods in order to take greater control of its CPG line. Yolele now controls sales and distribution of all its CPG products. NOSH

Data 🖥️

• Charlotte Tilbury, the British beauty brand now owned by Puig, has been on an absolute heater. FY revenue surged 38% to £310.3M and EBITDA jumped 29.1% to a modest £11.7M. The Industry

Distribution News 🚚

• Gen Z skincare brand Skin Proud launched at CVS.

• Organic kelp snacks brand 12 Tides launched nationwide at Whole Foods Market.

• Stumptown Coffee is now available on Alaska Airlines.