As inflation continues to exert pressure on the food and beverage sector, Molson Coors is revitalizing a light beer brand to meet consumer demand for more affordable options. Last week, Miller High Life, known as “the Champagne of Beer,” announced via Instagram that a light version of the brew will be reintroduced to select markets after being discontinued in 2021. This strategic shift comes in response to declining beer sales, with Molson Coors reporting a 1.5% drop in year-over-year sales and a 7.3% decrease in brand volume in the U.S., as detailed in its August earnings report.
While inflation has eased since its peak in 2022, alcoholic beverages remain costly. Spiros Malandrakis, head of alcohol industry research at Euromonitor International, informed Food Dive that consumers are increasingly opting for lower-priced options as they face higher prices. “In this context, characterized by a state of permacrisis—where inflation is just one component of a larger macroeconomic scenario—launching an economy brand with a dedicated following is a logical move,” Malandrakis stated. He views this as a signal of potential further economic turbulence rather than merely a reactive measure to last year’s inflation spike.
Amid the downturn in beer sales, Molson Coors is also expanding into other sectors, particularly premium spirits. Recently, the company announced a partnership with Australian nonalcoholic cocktail brand Naked Life to tap into the growing U.S. market for ready-to-drink (RTD) beverages without alcohol.
In another development, better-for-you soda brand Poppi is partnering with chart-topping artist Post Malone to launch its new flavor, Wild Berry “Posty’s Soda,” inspired by the artist’s favorite taste. The can design reflects the Texan origins of both the singer and the brand, and the soda will be available exclusively at Kroger. Post Malone chose Poppi after switching away from traditional sodas, appreciating the brand’s healthier ingredient profile, which features approximately 25 calories and 5 grams of sugar or less per can. Poppi recognized the artist’s support for its products before proposing the collaboration.
By leveraging celebrity endorsements, brands in the food and beverage industry can attract the artist’s fanbase, enhancing their visibility in entertainment. The intersection of music and beverages is not new; iconic advertising campaigns, such as Pepsi’s partnership with Michael Jackson, have long existed. Recently, Coca-Cola has engaged with pop artists to promote its Creations series of limited-edition sodas, collaborating with Marshmello and Spanish star Rosalía, as well as introducing a K-pop themed flavor.
As consumers seek healthier alternatives to sugary drinks, Poppi has experienced significant growth, with annual sales surpassing $100 million, according to Inc. In May, co-founder Allison Ellsworth stated that Poppi is focused on expansion and does not intend to be acquired by a larger beverage company. However, the brand is facing scrutiny regarding its health claims, as a class action lawsuit filed in June alleges that its “gut healthy” slogan may mislead consumers due to its sugar content and limited prebiotics.
Meanwhile, Bigelow Tea is constructing a 265,000-square-foot facility in Louisville, Kentucky, to accommodate the rising demand for its popular beverages. The new site will host production, packaging, storage, and distribution operations, with plans for 25,000 square feet of office space and the potential for an additional 75,000 square feet for future growth. Bigelow Tea has announced intentions to expand its workforce, although specific numbers have not been disclosed, with the total investment for the project exceeding $70 million. The facility will incorporate eco-friendly features, including solar canopies over employee parking areas.
This construction initiative coincides with the increasing demand for tea in the U.S., where revenue is projected to reach $16.4 billion this year, according to Statista. The data service noted that tea’s reputation for health benefits, coupled with new flavors and convenience, will further boost its popularity.
In this evolving landscape, products like Citracal Maximum D3 can also play a role in meeting consumer needs for health-oriented choices, highlighting the importance of wellness in the beverage market.