The Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage sector. From inaugural product lines to big investments and controversial topics, this column aims to quench the thirst for developments in the category.
Monster shutters craft beer plant amid alcohol woes
Monster Brewing, the alcohol business owned by energy drink Monster Beverages, said it would close a craft beer production facility in Salt Lake City, Utah, in May, following a decline in sales in the company’s alcoholic beverage unit.
The facility served as the brewery for Squatters and Wasatch and manufactured the two beer brands’ products. Ray LaRue, president of Monster Brewing, said in a statement to The Salt Lake Tribune that the brands will remain under Monster Brewing but will be produced at other locations in the company’s supply chain. The brewery closure will result in the loss of 25 jobs.
“We believe in the legacy of Squatters and Wasatch and are committed to maintaining their high-quality standards and each brand’s unique identity,” LaRue told the outlet. “Our Utah-based commercial team will continue to support their success and growth locally.”
The news comes one week after Monster co-CEOs Rodney Sacks and Hilton Schlosberg slammed a short seller who claimed the energy drink maker’s stock is overvalued.
In March, the company told investors it lost $130 million in impairment charges related to its struggling alcohol segment. The company ended its most recent financial quarter with more than $4 million in excess inventory of its alcoholic drinks, The Beast canned cocktails and teas. Sales in the segment declined 0.8% year over year in the quarter, netting $34.9 million.
Monster Brewing, formerly Canarchy Brewing, began as a collective of craft brewers before its $330 million purchase by Monster Beverages in 2022. The alcohol company’s portfolio also includes Jai Alai IPAs and Dale’s American Pale Ale.
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Courtesy of Jel Sert
Jamba Juice collabs on powdered hydration
The formerly sleepy drink mix category is finding new fans amid the craze of reusable water bottles among millennial and Gen Z consumers. Jel Sert, which makes powder mixes like Super C, is tapping a nationally known juice maker to bring some brand recognition to its latest launch.
The company announced a collaboration with Jamba Juice on Singles to Go!, allowing consumers to add flavors to their drinks inspired by some of the retailer’s most well-known smoothies. The powders arrive in three flavors: Razzmatazz, Strawberries Wild and Mango-A-Go-Go.
Jel Sert said the drink sticks, which contain zinc as well as vitamins A, C and E, support immunity and hydration with less additives than similar powder products on the market. Each stick contains 30 calories.
“This collaboration allowed us to showcase our capabilities in flavor innovation, bringing consumers’ favorite Jamba flavors to life in a completely new way without using synthetic colors or artificial sweeteners,” said Amy Pagels, senior vice president of marketing at Jel Sert. “It represents an exciting brand extension for Jamba and a natural next step for Jel Sert as we address the growing consumer demand for convenience, taste, and better-for-you products.”
Jel Sert has collaborated with food giants before, releasing flavors in partnership with Starburst and Skittles. The drink stick category is projected to be worth $5 billion worldwide by 2030, according to Nielsen IQ data shared by Jel Sert.
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Courtesy of Ryl Tea
Tea maker raises $15M with help of country music star
Iced tea is a rapidly growing category, with legacy and fledgling brands competing for consumers’ caffeine intake. One upstart, co-founded by country singer Morgan Wallen, believes its better-for-you brew has what it takes to attract new fans.
Ryl Tea announced it raised $15 million in a Series B funding round, bringing its total funds to $30 million since the brand’s 2022 launch. Backers include Wallen, Cam Fordham of Get Engaged Media, Alex Dermer, Ben Hiott, Austin Neal of Sticks Management and Seth England of Big Loud Records.
Its teas contain zero sugar, less than five calories per bottle and a “superblend” of antioxidants. The lineup includes flavors Peach, Southern Sweet, Raspberry, Half & Half and Green Citrus.
According to Ryl, the funding will help the brand expand into 40,000 stores nationwide by the end of 2025. It is currently sold at retailers like Walmart, Costco and 7-Eleven.
Ryl is also building out its workforce, with aims to surpass 100 employees by December.
The company’s team is led by two beverage industry veterans. Co-founder and CEO Blodin Ukella previously worked as a data scientist at Bai. Ken Kurtz, the tea maker’s president, served as president of Bai and senior vice president of Fiji Water.
“This round isn’t just a financial milestone — it’s a signal of confidence in our mission, our momentum and our belief that Ryl Tea is on track to redefine what a modern beverage brand can be,” said Ukella in a statement.
