This Week in CPG - Bang Energy Implodes

Author

CPG WIRE
October 12, 2022

Good Morning, folks. Due to the Federal Holiday on Monday we're a little light on news but there's still plenty to cover, including one rather enormous story. 

The Big Story

It's been an eventful week for Jack Owoc and his well-known beverage brand, Bang Energy. Soon after celebrating its 10-year anniversary, Bang Energy filed for Chapter 11 bankruptcy protection. The long and short of it is that the company owes a lot of money to a number of disgruntled parties. Here's a breakdown of Bang's largest liabilities: 

  • $293m to Monster Energy for falsely advertising the benefits of "Super Creatine"

  • $215m to Orange Bang (another beverage company) for trademark infringement

  • $115m to PepsiCo for terminating their distribution deal without cause

In addition to the legal liabilities mentioned above, Bang is dealing with other pressing issues, namely slowing sales and declining market share. In short, what made Bang so unique at first — a better-for-you energy drink with low sugar and calories — is no longer so novel. Monster, Red Bull, Rockstar, and a slew of newcomers all offer products that fulfill that same promise. 

One thing that people seem to be forgetting, though, is that Bang Energy isn't dead yet. While things certainly don't look good, much of the premature grave dancing and schadenfreude directed toward Jack Owoc is just that, premature. 

Turning around Bang Energy is going to be an expensive, taxing, and relatively thankless exercise. But if there's one person capable of completing this monumental task, it's the aggressive, ambitious, eccentric, and uncompromising Owoc.

Deals

  • UK-based wellness brand Motion Nutrition was acquired by its co-packer, Metabolics. An exciting exit for Joe Welstead who co-founded the company in 2016. Link 

  • The Rounds, a zero-waste online grocer that launched in Philadelphia in 2019, raised $38m in Series A funding led by Redpoint Ventures and a16z. Link

  • L Catterton & Temasek reportedly led a $50m round in Sociolla, a fast-growing omnichannel beauty retailer that operates throughout Southeast Asia. Catterton previously invested in the company last year. Link

  • San Diego-based effervescent wellness brand Pureboost raised over $2m on crowdfunding platform WeFunder. Link

  • Getir, the Turkish rapid grocery delivery startup, is in advanced talks to acquire Gorillas, a cash-strapped competitor in need of a long-term home. Link

Distribution Quickfire

  • Tepache brand De La Calle launched at all Target stores in CA.

  • Sauce brand TRUFF will be available at all Taco Bell locations in the U.S. Pretty amazing awareness opportunity for the youngish brand.

  • Plant-based collagen brand Copina Co is now available at Whole Foods in select regions (NorCal, Northeast, and North Atlantic).

  • Peach Slices, a skincare brand and sister brand of Peach & Lily, launched at Walmart.

  • RTD hydration brand BIOLYTE added 1,000 more Kroger stores.

  • Hibiscus water brand Ruby hit shelves at Erewhon. This comes on the heels of their launch at Whole Foods Northeast region.

  • Non-alc spirits brand Monday launched at Anthropologie.

  • London-based CBD beverage brand Goodrays is now available at Tesco.

What's New...

  • Feastables, the chocolate brand founded by Super YouTuber MrBeast, collaborated with fellow YouTuber Corpse Husband on a limited edition Feastables bar. Link

  • Canned sports drink Sap's officially launched. Curious how this will perform given that it looks just like a beer. Link

  • Asian-inspired sparkling water brand Sanzo partnered with Jeremy Lin on a super cool limited edition flavor to commemorate Linsanity. All profits to be donated to the Jeremy Lin Foundation. Link

  • Stripes, the menopausal wellness brand from Naomi Watts, launches on 10/18. Link

  • Iconic potato chip brand Zapp's (owned by Utz) is going after Dot's Pretzels (Hershey) with the launch of Sinfully Seasoned Pretzel Stix. Could see this doing very well. Link

  • Relevant Skincare, the skincare brand co-founded by Thirteen Lune founder Nyakio Grieco, unveiled six new products. Link 

  • The first RTD bone broths to hit the market, Broya. Link

Thanks for reading along. See you again on Saturday morning. 

All the best, 

Robbie @ CPG Wire