PepsiCo has launched Pepsi Prebiotic Cola, a significant innovation in the cola category that combines traditional flavours with functional benefits. Pepsi Prebiotic Cola features 5g of cane sugar, 30 calories and 3g of prebiotic fibre, positioning it as a healthier alternative within the traditional soda market. Available in Original Cola and Cherry Vanilla variants, this product aims to deliver the classic Pepsi taste while meeting the increasing demand for functional ingredients. The cola will be available in 12oz single cans and 8-packs of 12oz cans, with distribution expected to begin online this fall and in retail outlets by early 2026. The timing of the Prebiotic Cola launch is significant, particularly in light of PepsiCo's recent acquisition of Poppi , which specialises in prebiotic sodas made with fruit juice and apple cider vinegar. This acquisition, finalised in May 2025, enhances PepsiCo's portfolio of functional beverages and aligns with its commitment to meet evolving consumer demands for healthier options. The integration of Poppi’s innovative approach and strong market presence positions PepsiCo to leverage emerging trends in the beverage industry. Ram Krishnan, CEO of PepsiCo Beverages US, noted that Poppi’s rapid growth and consumer engagement make it a valuable addition to PepsiCo’s offerings. The expertise gained from Poppi is expected to inform the development and marketing of Pepsi Prebiotic Cola, enabling the company to scale its functional beverage segment effectively. "From the iconic blue can, to the consumer-preferred Pepsi Zero Sugar, our portfolio has always adapted to the needs and flavour preferences of the consumer," added Krishnan. "Pepsi Prebiotic Cola represents the next leap forward in giving consumers choice, optionality and functional ingredients in their cola experience, without sacrificing the iconic Pepsi taste we're known for delivering." The introduction of Pepsi Prebiotic Cola comes at a time when the beverage industry is witnessing a shift towards health-oriented products. Consumers are increasingly favouring beverages that offer nutritional benefits alongside traditional flavours.

Barry Callebaut has teamed up with the Zurich University of Applied Sciences (ZHAW) to research the potential of cocoa cell culture technology. The initiative aims to explore new ways of producing chocolate while strengthening supply chain resilience. The collaboration will combine Barry’s expertise in chocolate manufacturing with ZHAW’s research led by professors Tilo Hühn and Regine Eibl-Schindler, both recognised for their work in cell culture technologies. Cocoa cell culture, still in early development, could allow for the creation of chocolates with "unique flavour profiles" or "enhanced health benefits" and provide an alternative cocoa source to complement traditional farming. Dries Roekaerts, president customer experience at Barry Callebaut, said: "This partnership reflects our proactive approach to building innovation capabilities that will shape the future of chocolate. We are not replacing cocoa from farms, but rather preparing for a future where we can offer consumers additional choices and ensure long-term supply security." Professor Hühn and Eibl-Schindler, added: "Our research into cocoa cell culture technology opens up exciting possibilities for sustainable innovation in the chocolate industry. With Barry Callebaut’s support, we’re able to accelerate our scientific exploration and bring academic insights closer to real-world applications." The project forms part of Barry Callebaut’s broader strategy to pursue disruptive technologies that enhance sustainability and expand product possibilities.

Gatorade is making waves in the hydration market with the launch of its latest product, Gatorade Hydration Booster Relax, designed specifically to support athletes and active consumers beyond traditional sports scenarios. This innovative drink mix aims to provide a functional solution for relaxation and recovery, tapping into the growing demand for products that cater to wellness and daily hydration needs. Gatorade Hydration Booster Relax features a unique formulation that combines electrolytes with functional ingredients such as L-Theanine and magnesium. These components are well-regarded for their ability to promote relaxation and help mitigate stress, making this drink mix an ideal choice for consumers looking to unwind after physical activity or a long day. Available in a refreshing Raspberry Lemon flavour, the product is crafted without artificial flavours, sweeteners or added colours, aligning with the increasing consumer preference for clean label products. Gatorade's commitment to science-driven innovation is evident in the development of the Hydration Booster, which is supported by research from the Gatorade Sports Science Institute. This backing not only enhances the product's credibility but also positions it as a serious contender in the functional beverage category. By focusing on hydration that goes beyond performance, Gatorade is addressing a broader spectrum of consumer needs, particularly among those who prioritise both physical activity and mental wellbeing.

In a strategic pivot that could reshape its brand portfolio, Kraft Heinz is reportedly exploring the possibility of spinning off several of its slower-growing brands, including Velveeta and Oscar Mayer, as part of an effort to reverse the fortunes of its underperforming grocery division. In recent years, consumers have shifted towards healthier and more affordable options, leaving traditional packaged foods struggling to maintain market share. By divesting these slower-growing brands, Kraft Heinz aims to concentrate on its more profitable and innovative lines, such as condiments and sauces, which are experiencing robust demand. This potential move, first reported by the Wall Street Journal , could create a new entity valued at approximately $20 billion , making it one of the largest deals in the consumer goods sector this year. Kraft Heinz, formed from a $45 billion merger in 2015 backed by Warren Buffett's Berkshire Hathaway, has seen its stock plummet by nearly two-thirds since the merger. The company’s challenges have been exacerbated by changing consumer behaviours post-pandemic, with many shoppers opting for cheaper private-label alternatives over traditional name brands. In particular, the rising costs of packaged foods have led to a decline in sales, prompting a reevaluation of the company’s strategic direction. The potential spinoff comes as Kraft Heinz’s leadership acknowledges the need for significant changes to unlock shareholder value. In May, the company indicated it was evaluating strategic transactions, coinciding with the exit of Berkshire Hathaway executives from its board, signalling a potential loss of confidence in the current trajectory of the food giant. Market analysts suggest that while the spinoff may provide some immediate financial relief, the real challenge lies in attracting buyers for the newly formed entities. The success of this strategy heavily depends on Kraft Heinz's ability to find acquirers willing to pay a premium for either the grocery-focused business or the more lucrative condiments division, which includes well-known brands like Heinz ketchup and Philadelphia cream cheese. The condiments segment generated $11.4 billion in sales last year and is seen as having substantial growth potential, particularly in international markets. In contrast, the legacy brands, which contributed $14.5 billion in sales, face intense competition and declining market share. Investment bankers have drawn parallels between Kraft Heinz's situation and the recent successful spinoff of Kellogg's cereal business, which was sold to Ferrero for $3.1 billion. Such examples highlight the potential for value creation through strategic divestitures, although analysts caution that the current landscape for food and beverage acquisitions is fraught with challenges. Industry watchers are speculating on potential acquirers for Kraft Heinz’s brands, with companies like McCormick & Company, Unilever and Nestlé emerging as possible candidates. As Kraft Heinz navigates this complex landscape, the implications of a spinoff remain uncertain. While the company seeks to rejuvenate its brand portfolio and improve financial performance, the path forward is laden with risks that could impact its standing in the competitive food and beverage market. Kraft Heinz has not yet confirmed the spinoff plans, and further details regarding the potential restructuring remain to be seen. The company’s next moves will be closely monitored by industry stakeholders as they assess the viability of its strategies in a rapidly evolving marketplace.

LWC Drinks has launched Black Gold XO Café, a new coffee tequila brand aiming to fill the gap left by the discontinuation of Patron XO Café in the UK market. The British independent drinks wholesaler aims to provide a premium coffee tequila that can offer consumers the same flavour profile and ‘luxury experience’ as the popular Patron XO Café, at the same price point. Bacardi -owned Patron XO Café was discontinued back in 2021 and reintroduced in the US earlier this month. LWC said that Black Gold XO Café has been crafted with a ‘meticulous attention to detail,’ resulting in a coffee tequila that is ‘silky smooth, rich and full-bodied’ with a subtle hint of roasted coffee beans and a ‘warm, lingering finish’. Available now across all LWC depots, the 34% ABV beverage is packaged and branded in a bold gold, amber and black colourway, designed with a ‘luxurious’ aesthetic in mind. The bottles are made from post-consumer recycled glass, also featuring a biodegradable closure and a stopper made from recycled materials. Nic Ponticakis, spirits category manager at LWC Drinks, commented: “With social media posts and petitions demanding ‘Bring back Café Patron,’ we know that there remains a gap in the UK coffee tequila market that needs filling, and with Black Gold XO Café, we are confident that we have done it”. He added: “We also have confidence in where the market is heading, with CGA data showing that coffee-flavoured spirits sales totalled £20.9m in the fourth quarter of 2022 – that’s 54% higher than in the same quarter in 2019. And we see this trajectory continuing.”

With lawsuits challenging the authenticity of some of the world’s most recognisable tequila brands , industry veteran and DeLeón and Tequila Purisima founder Brent Hocking argues that true quality can only be achieved by returning to tequila’s roots. From misleading labels to the rise of mass-produced spirits, Hocking reflects on what’s been lost – and what must be reclaimed – to protect the future of this globally beloved drink. In recent months, the purity of alcohol has found itself in the headlines, especially tequila. Legal disputes, including the Diageo lawsuit over allegedly misleading claims regarding Don Julio, Casamigos and additive-free tequila, have reignited a conversation around transparency, regulation and authenticity in our category. While the legal process will take its course, it’s clear to many of us within the industry: quality and authenticity have been lost in favour of mass consumption, celebrity branding and market-driven versions of perceived luxury. From Mexico to the rest of the world Tequila is now a global spirit, embraced far beyond Mexico, and increasingly seen as a symbol of luxury. But as demand has grown, so too has the temptation to cut corners. I’ve seen it first-hand. The label might say '100% agave,' but that doesn’t always tell the full story. Additives are often used to soften harsh distillates or mimic the effects of time, terroir and proper ageing. And while these additives may technically comply with regulations, they obscure the essence of what tequila can – and should – be. My journey in tequila began well before additive-free was a marketing term. In 2007, I created the original DeLeón Tequila with a simple mission: to elevate tequila by removing what didn’t belong. No colouring. No sweeteners. No artificial enhancements. Instead, I leaned into what I had learned from my background in wine – how patience, purity and process could define a spirit. That philosophy continues today with Tequila Purisima, which uses only natural spring water, a proprietary fermentation method and no additives. But purity in tequila isn’t just about ingredients. It is also about intention and a true understanding that if the tequila blanco isn’t perfect, nothing is. No true tequila exists without a perfect blanco. No shortcuts, no additives. It is a distiller’s blanco that goes into every Reposado, Anejo and Extra Anejo that one will ever drink. The blanco is not a stage, it is the standard. How to balance mass marketing with quality Today, many tequila brands are made in contract facilities, producing dozens of labels on the same equipment. The question then becomes: how is quality maintained? How is flavour protected? How is consistency achieved? These are valid concerns for any producer, and the answers often point to cost-efficiency, not craftsmanship. When the same distillery is used for 30 or 40 brands, when fermentation tanks are reused without dedicated cleaning, the results blur the lines between individuality and industrialisation. How is it that these multiple brand factories are making each person “their own special blend“? The CRT (Consejo Regulador del Tequila) and TTB (Alcohol and Tobacco Tax and Trade Bureau) both play critical roles in certification and labelling. But neither body can fully account for the growing complexity of production models or marketing language. This is where producers must be accountable to higher standards than the minimum required. It is our responsibility to push for clarity, not just compliance. There is no denying that the tequila category has changed. But the question is: how do we protect its future? How producers can shape the future of alcohol production First, we need to recognise that technical compliance is not the same as consumer trust. The average consumer doesn’t know what Bagazzo or Glycerin or Oak Extract means when they read a label – if it is even disclosed. Industry professionals must push for better education around what "additive-free" truly implies and advocate for greater disclosure, including voluntary transparency beyond the regulatory baseline. Second, brands should embrace vertical integration where possible. Producing at a dedicated distillery with dedicated equipment allows for control that co-packed or contract brands simply can’t guarantee. That doesn't mean every tequila must be made this way – but those that are should be transparent about it, and consumers should understand the distinction. Finally, there must be a rebalancing between heritage and innovation. Modern consumers demand both craft and clarity. They want to know where their tequila is made, how it’s made and what it contains. That demand isn’t going away, and it shouldn’t. It is an opportunity for serious producers to rise. The allegations against major brands serve as a wake-up call. But they also offer a moment to lead. If we want tequila to remain respected at the highest levels of global spirits, we must protect the foundation it was built on: agave, water, fermentation, time, and trust.

Ohly, a global supplier of yeast-based ingredients and culinary powders, has debuted two new hot sauce powders: ProDry Chipotle Puree Powder and ProDry Aged Red Jalapeño Sauce Powder. This latest introduction aims to support food manufacturers in responding to the growing consumer demand for complex and authentic flavours. The new products expand Ohly's existing line of ProDry culinary powders, which includes offerings such as Louisiana Hot Sauce Powder and Brined Jalapeño Powder. These innovations come at a time when the food and beverage industry is witnessing a significant shift towards intricate flavour profiles that blend heat with other taste dimensions. According to market analysis, consumers are increasingly favouring unique sensory experiences in their food choices, prompting manufacturers to explore diverse flavour combinations. Daria Pashkova, product and marketing Mmnager at Ohly, noted that current trends reflect a consumer preference for complex flavour pairings. "Current hot sauce trends reflect a growing preference for complex and contrasting flavour profiles, particularly the combination of sweet and spicy taste sensations, like honey-chipotle or mango-habanero," she said. She continued: "Unconventional pairings continue to gain popularity, emphasising a broader shift in consumer curiosity. Chipotle stands out as an ever-popular example, favoured for its rich, smoky undertones, while jalapeño offers a bright, vibrant heat". These trends indicate the industry’s move towards more nuanced flavour compositions that balance heat and flavour in new and exciting ways. To gain attention and stay competitive, manufacturers are finding new ways to incorporate these flavour trends into their product formulations. Chipotle Puree Powder is designed to impart a rich, smoky flavour across various culinary applications, such as sauces and marinades. Its free-flowing powder form allows for easy integration and precise control in large-scale production, ensuring consistent flavour delivery. It is perfect for use in sauces, marinades or snack seasonings. Meanwhile, Aged Red Jalapeño Sauce Powder offers a Sriracha-style flavour profile with zesty heat, suitable for a wide range of applications, from glazes to snack seasonings. These innovations are particularly relevant as manufacturers strive to differentiate their products in a competitive marketplace. The ability to deliver complex flavours with natural colour and long-lasting impact is becoming increasingly important. The versatility of these powders allows for seamless incorporation into various formulations, making them an attractive option for companies looking to enhance their product offerings.

PepsiCo says it is intensifying its productivity initiatives as the company seeks to enhance operational efficiencies and integrate its North American operations. During a recent earnings call, CEO Ramon Laguarta outlined a strategic focus on leveraging technology and data analytics to optimise costs across the organisation, particularly within its two major business segments, each generating nearly $30 billion in revenue. Laguarta highlighted the importance of integrating the value chains of these businesses to streamline operations. “With the investments we've made in technology and the new data systems, we can start looking at those businesses in a more integrated way,” he commented, noting the potential for improved performance through collaborative value chain management. The company is particularly optimistic about growth opportunities in the away-from-home channel, which has shown higher margins and the potential for incremental sales. Additionally, PepsiCo is expanding its permissible snack portfolio, with plans to relaunch brands such as Lay's and Tostitos to better align with consumer preferences for healthier snacking options. Executive vice president and CFO James T Caulfield mentioned that the second half of the fiscal year is expected to deliver approximately 70% more productivity than the first half. This increase will be driven by various initiatives, including workforce optimisation, plant closures and procurement savings, all underpinned by enhanced technology investments, particularly in enterprise resource planning systems. PepsiCo's management reiterated its commitment to achieving sequential top-line improvement and returning to the lower end of its long-term organic growth algorithm in the coming quarters. Laguarta also indicated that the company's success metrics would include improved market share and overall revenue growth. Internationally, PepsiCo reported mid-single-digit growth across its food and beverage segments, with notable strength in Latin America, Europe, the Middle East and India. However, performance in China has been softer following the Chinese New Year, presenting challenges in that market. The away-from-home business segment, particularly in PepsiCo Beverages North America, has been performing well, with high single-digit growth reported in the latest quarter. This segment is viewed as margin accretive, further supporting the company's overall growth strategy.

Arla Protein has introduced a new ready-to-drink milkshake designed for busy consumers seeking convenient and indulgent snack options. This launch marks the brand's first foray into the ready-to-drink protein category, offering a product that combines taste and nutrition in a portable format. Arla Protein Milkshake, available in 200ml cups, features a creamy texture and delivers 20g of protein per serving. It is lactose-free, contains no added sugars and is under 182 calories, making it an appealing choice for health-conscious consumers. The milkshake comes in two flavours: Vanilla Fudge and Chocolate Brownie, which are positioned as satisfying treats for afternoon breaks or evening enjoyment. Notably, this product is the first protein shake to use a cup-and-straw format, enhancing its convenience for on-the-go consumption. The packaging allows consumers to easily extend the straw and enjoy the milkshake anywhere, meeting increasing demand for portable meal solutions for fast-paced lifestyle. Amy Punchard, brand manager for Arla Protein UK, highlighted the product's alignment with consumer preferences for indulgent yet health-oriented snacks. “This indulgent milkshake offers active consumers a permissible treat that fits seamlessly into their health goals,” she said. The product is currently available at Asda and is set to launch at Sainsbury's on September 3.

SIG has introduced an innovative 1-litre aseptic carton pack that eliminates the aluminium layer traditionally used in such packaging. This innovation, known as SIG Terra Alu-free + Full barrier, is now available, marking an advancement in sustainable packaging practices. The new carton packs are designed to provide full barrier protection without the environmental drawbacks associated with aluminium. By transitioning to a packaging material composed of over 80% paper, SIG aims to reduce the carbon footprint of its multi-serve cartons by up to 61% when combined with forest-based polymers. This move not only addresses consumer demand for more sustainable packaging but also aligns with stricter environmental regulations across Europe. Key features include: Aluminium-free design: The material replaces the aluminium layer with an ultra-thin polymer coating that safeguards against oxygen, light, moisture and aroma loss, ensuring product integrity for up to 12 months. Sustainability impact: The reduction of raw materials from three to two simplifies the recycling process, requiring only the separation of paperboard and polymers. This change is expected to streamline recycling efforts and enhance the overall sustainability of aseptic carton disposal. Rapid transition for manufacturers: The new packaging solution is compatible with existing SIG filling lines, allowing manufacturers to switch between aluminium-free and standard materials with minimal adjustments. This plug-and-play capability is particularly appealing for brands looking to adopt more sustainable practices without significant capital investment. Aldi has already adopted this packaging, launching a grape juice under its Rio d'oro brand in select regions of Germany. This partnership underscores the growing trend among retailers to seek sustainable packaging solutions that resonate with environmentally conscious consumers. José Matthijsse, president and general manager for Europe at SIG, highlighted the company's commitment to sustainability. “Our goal is to increase the paper content in our aseptic cartons to at least 90% by 2030. This breakthrough innovation not only reduces carbon emissions but also contributes to a regenerative food packaging system,” he said. Since its initial foray into aluminium-free packaging in 2010, SIG has sold over 4 billion packs, demonstrating a strong market demand for sustainable options.

Mars has launched new products under its Ben's Original brand, aimed at enhancing convenience and nutrition for busy consumers in Canada and the US. The introduction of Single-Serve Rice Cups and an expanded Street Food line reflects the company's commitment to meeting the evolving needs of today's on-the-go lifestyle. The Single-Serve Cups offer a quick and nutritious meal option, addressing consumer demand for accessible and healthy snacks. These cups come in four flavours: Jasmine Rice, Mexican Style Rice, Fried Rice and Roasted Chicken Flavour. Each option is designed to provide a wholesome meal base without added salt, catering to health-conscious consumers looking for convenient solutions. Derin Bello, general manager at Mars Food & Nutrition Canada, said: “We understand that busy lifestyles can make healthy eating a challenge. By infusing global flavours into our latest innovations, we're celebrating Canada's rich cultural diversity while delivering on our commitment to provide food that fits today's fast-paced lives.” In addition to the Single-Serve Cups, Mars is expanding its Street Food line, which was first introduced in 2024. The new offerings include Honey BBQ Flavoured Rice with Chicken and Teriyaki Style Rice with Chicken. Both products are designed for quick preparation, ready in just 90 seconds, and provide a balanced meal option with up to 13g of protein and 8g of fibre per serving. The launch of these products aligns with broader trends in the food and beverage industry, where convenience and health are increasingly prioritised by consumers. With more than half of Canadians expressing a desire for healthier snack options, Mars aims to capture this market segment by providing flavourful and nutritious meal solutions.

Liquid Death, the edgy beverage brand renowned for its bold, metal-inspired marketing and canned water, is poised to make an entry into the energy drink market. According to the Wall Street Journal , the company plans to launch its new product, Sparkling Energy, in January 2026 – a move that appears to be a natural extension of its brand identity. With its distinctive packaging and rebellious, metal-inspired image, Liquid Death has long seemed well-suited for the energy drink category. The upcoming Sparkling Energy will be packaged in 12-ounce skinny cans, a shift from the brand's signature beer-style cans, and will contain 100mg of caffeine –similar to established players like Red Bull, which offers 114mg. This level of caffeine is notably lower than many recent entrants, such as Celsius and Prime, which often feature higher caffeine content. Liquid Death founder and CEO Mike Cessario told the Wall Street Journal that the brand’s intention to provide "a sane level of caffeine," akin to a cup of coffee, caters to a growing consumer preference for healthier options. The energy drink sector has seen remarkable growth over the past decade, now valued at approximately $23.9 billion in the US. Liquid Death's entry into this market aligns with a broader trend where consumers are increasingly seeking better-for-you beverages. According to Mintel's analysis, options that balance lower sugar with moderate caffeine have gained significant traction, making this an opportune moment for Liquid Death to introduce its product. Liquid Death's marketing strategy for Sparkling Energy will mirror its successful approach with its water and flavoured beverages. The company plans to use humour in its advertising, producing online content that pokes fun at traditional energy drink marketing clichés, which often lean towards hypermasculine themes. This approach is expected to resonate with consumers looking for authenticity and relatability in brand messaging. The pricing for Sparkling Energy will range from $2.59 to $3.00 per can, placing it competitively within the market. This pricing strategy is consistent with Liquid Death's previous products, which have typically been positioned at the higher end of their respective categories. By positioning itself as a more balanced choice in an otherwise high-octane market, Liquid Death is strategically leveraging its existing brand identity to capture a unique niche. With a valuation of $1.4 billion following its latest funding round, Liquid Death's confidence in its new offering underscores the potential for innovation within the beverage industry.