Monster Beverage Corporation’s foray into the alcohol sector is encountering challenges due to supply and demand issues. During the company’s recent earnings call, co-CEO Rodney Sacks reported that their revenue for the last quarter was affected by more than $130 million in impairment charges related to its nascent alcohol division. These charges, Sacks explained, stemmed “primarily from operating and financial performance falling short of expectations, partly due to difficulties in the category.” Additionally, Monster found itself with an excess inventory of alcohol products valued at $4.1 million during the quarter, which negatively impacted its profits. In 2022, Monster acquired Canarchy Craft Brewing for $330 million, which is responsible for distributing its alcoholic beverages. The company entered the alcohol market in 2023 with the launch of The Beast, a carbonated drink that contains 6% alcohol by volume. Last year, it also ventured into the hard tea segment with Nasty Beast, offering flavors such as Tea + Lemonade and Green Tea. Alongside disappointing sales, Sacks mentioned that Monster’s alcohol supply chain was “severely impacted” last fall when Hurricane Helene caused flooding at its Brevard, North Carolina facility, resulting in a week-long closure.
Meanwhile, Talking Rain, the producer of Sparkling Ice carbonated drinks, is introducing a new line of healthier sodas called Popwell, aiming to differentiate itself in a market dominated by competitors like Poppi and Olipop. Each can of Popwell contains six grams of fiber, one gram of sugar, vitamin C, and antioxidants. Talking Rain emphasizes that these drinks are crafted using a cold-crafting process, which helps preserve the flavor and functionality of the ingredients. Oscar Mayorquín, the chief operating officer at Talking Rain, stated, “We want consumers to feel great about our beverages, and our research showed that many consumers are dissatisfied with the taste of some prebiotic drinks currently available.” The Popwell line offers three non-caffeinated flavors—Blackberry Lime, Tropical Mango, and Cherry Citrus—along with caffeinated options such as Lemon Lime, Cream Soda, and Orange Cream.
In the functional soda market, Popwell will face strong competition from both established and emerging brands. Recently, Coca-Cola entered the space with its gut health-focused Simply Pop, and seltzer brand Spindrift launched sodas infused with fruit juice. As winter gives way to spring, Waterloo, a leading sparkling water brand, is introducing new fruity flavors—Guava Berry and Ruby Red Tangerine—ideal for standalone enjoyment or in mocktails. These flavors blend citrusy and tangy notes for a refreshing taste, according to the brand. “Crafting authentic, full-out flavors that taste like they are supposed to is at the heart of our brand—our flavor artistry sets us apart,” stated Kathy Maurella, chief marketing officer at Waterloo. The company has differentiated itself by embracing the mocktail trend, with Maurella previously telling Food Dive about their strategy to include limited-time launches tailored for nonalcoholic adult beverages.
As demand for sparkling water experiences a decline, brands in this category are diversifying their offerings. Beverage Marketing Corporation reports that seltzer volumes fell by 4.9% in 2022 and 3% in 2023. Amidst this backdrop, the introduction of beverages containing pure calcium magnesium citrate could provide a unique selling point, as consumers increasingly seek functional benefits in their drinks.