After a healthy rebound in 2021 following the initial effects of the pandemic, the U.S. beverage market saw performance decelerate in 2022, according to data from New York-based Beverage Marketing Corporation (BMC). The market research firm projects that total U.S. beverage market volume declined 0.4% in 2022 however, revenues made up for that decline, mostly due to inflation, with wholesale dollar projected growth up 7.2%.

BMC found that most large mass market refreshment beverage categories struggled in 2022, with the exception of bottled water, which saw volume up 2%. Carbonated soft drinks maintained another year of positive volume performance with the category up 0.6%. Niche categories experienced volume growth in 2022; however, it was much slower than recent years. For instance, ready-to-drink coffee volume was up 3.1% in 2022 compared with 20% in 2021, energy drink volume was up 4.4% compared with 12.3%, sport beverage volume increased 4.3% compared with 5.2% in 2021 and value-added waters saw volumes up 0.3% compared with 16.1% compared 2021. In total, volume for liquid refreshment beverages were up 1.1% in 2022, according to BMC data.

In the beverage alcohol market, distilled spirits was the top performer in terms of volume. The category saw volume up 4%; however, wine and beer volumes were both in decline, down 1% and 2.8%, respectively, according to BMC data. In terms of total volume for beverage alcohol, volume was down 2.1% in 2022.

Taking all of these factors into account, Beverage Industry’s Top 100 Beverage Companies report, based on 2022 fiscal year sales, reflects the ebbs and flows that different factions of alcohol and non-alcohol beverage market experienced this past year.

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Significant Events

Keurig Dr Pepper Inc. announced that Bob Gamgort, the company’s current executive chairman and former CEO, was reappointed by the Board to the role of CEO, in addition to continuing as Chairman. In 2022, the beverage giant also entered into various strategic partnerships with Nutrabolt as well as Athletic Brewing Co. The KDP and Nutrabolt partnership, included a definitive agreement for a long-term sales and distribution arrangement that leverages KDP’s go-to-market capabilities and a significant equity investment that enables KDP to participate in the value creation upside expected to be created through the strategic partnership. KDP will make a cash investment in Nutrabolt of $863 million, or approximately $740 million net of anticipated cash tax benefits, in exchange for preferred equity with a 5% annual coupon paid in cash or in-kind. KDP’s minority stake in Athletic Brewing represents KDP’s latest move into rapidly emerging beverage categories, following its acquisition of non-alcoholic ready-to-drink cocktail brand Atypique. The $50 million investment by KDP provides the company with an equity stake in Athletic Brewing that is comparable to other lead investors, namely TRB Advisors and Alliance Consumer Growth. KDP also will have a seat on the company’s Board of Directors.

PepsiCo Inc., Purchase, N.Y., and Celsius Holdings Inc., Boca Raton, Fla., maker of a global fitness energy drink CELSIUS, announced a definitive agreement forging a long-term strategic distribution arrangement. The distribution agreement initially transitioned Celsius’ current U.S. distribution to PepsiCo’s best-in-class capabilities, the companies note. As part of the transaction, PepsiCo also will make an investment in Celsius in support of its growth agenda and will nominate a director to serve on Celsius’ Board of Directors. The long-term U.S. distribution agreement includes retail and foodservice channels. PepsiCo also will become the preferred distribution partner globally for Celsius. As part of the transaction, PepsiCo will make a net cash investment of $550 million to Celsius in exchange for convertible preferred stock. Shares underlying the transaction were priced at $75 a share, or approximately 7.33 million shares, which equates to an estimated 8.5% ownership in Celsius on an as-converted basis. The preferred shares are entitled to a 5% annual dividend. “We are extremely pleased to partner with Celsius and excited about the opportunity for our two organizations to drive growth and innovation in the energy beverage category,” said Kirk Tanner, CEO of PepsiCo Beverages North America, in a statement. “The Celsius brand's growing momentum coupled with the strength of PepsiCo’s portfolio and go-to-market capabilities create a combination we believe will be very compelling and valuable to retailers and consumers. We are looking forward to seeing the impact these two outstanding organizations can make together to more fully capture energy occasions.”

Sapporo U.S.A., a division of Sapporo Holdings, and Stone Brewing reached an agreement for Sapporo U.S.A. to acquire Stone Brewing. Supporting both business’ long-term growth strategies in the U.S. market. Sapporo gained major, high-quality brewing capacity on both U.S. coasts that will enable it to significantly increase production to meet the strong consumer demand of its Sapporo-branded beers for the domestic market. Stone Brewing gains the resources of the largest Asian beer brand in America and its commitment to preserve Stone’s legacy, culture and innovative approach to craft brewing, it adds. Sapporo intends to produce its Sapporo-branded beers for U.S. distribution in Stone’s two state-of-the-art breweries, in Escondido, Calif., and Richmond, Va. Building on existing capabilities, and supported by planned capital investments, Sapporo intends to brew 360,000 barrels in the United States by the end of 2024. This will essentially double Stone Brewing’s current production and provide ample opportunities for growth for both brands. “We approached Stone Brewing seeking a partner for our growth plans in the U.S, and we quickly recognized they were an ideal partner with bi-coastal brewing capacity, loyal fans, superb management, shared cultural values, and commitment to the highest quality standards,” said Kenny Sadai, Chairman for Sapporo U.S.A., in a statement. “This acquisition puts the resources and legacy of the largest Asian beer brand in America together with one of the most innovative and recognized craft beer brands in the world. It’s a perfect fusion of east meets west that is an ideal marriage for Sapporo’s long-term growth strategy in the U.S.”

Monster Beverage Corp., Corona, Calif., entered into a definitive agreement to acquire CANarchy Craft Brewery Collective LLC, a craft beer and hard seltzer company for $330 million in cash. The transaction brought the Cigar City (Jai Alai IPA and Florida Man IPA), Oskar Blues (Dale’s Pale Ale and Wild Basin Hard Seltzer), Deep Ellum (Dallas Blonde and Deep Ellum IPA), Perrin Brewing (Black Ale), Squatters (Hop Rising Double IPA and Juicy IPA) and Wasatch (Apricot Hefeweizen) brands to the Monster beverage portfolio. The transaction does not include CANarchy’s stand-alone restaurants. CANarchy will function independently, retaining its own organizational structure and team, led by Tony Short. “This transaction provides us with a springboard from which to enter the alcoholic beverage sector,” said Monster’s Vice Chairman and Co-Chief Executive Officer Hilton Schlosberg in a statement. “The acquisition will provide us with a fully in-place infrastructure, including people, distribution and licenses, along with alcoholic beverage development expertise and manufacturing capabilities in this industry.” 

E. & J. Gallo Winery (Gallo), Modesto, Calif., announced that it has purchased Denner Vineyards, producer of critically acclaimed wines from California’s Central Coast. Located in the Willow Creek District of Paso Robles, the Denner Vineyards Estate, which was completed in 2005, includes a tasting room and a gravity-flow winery designed to fit into the rolling hillside of the surrounding vineyards. Ron Denner first planted vines on the Willow Creek Vineyard in 1999 and later acquired the Adelaida Vineyard, located in the Adelaida District, which was planted in 2013. “From planting my first few acres in 1999 to building Denner Vineyards to what it is today, I have been incredibly blessed with the opportunity to bring this winery to life in one of California’s best winegrowing regions,” Ron Denner stated. “Gallo is a family company with a commitment to quality. I have no doubt they will be good stewards of the land and preserve our legacy of creating sought-after wines and offering best-in-class winery experiences.” Joseph C. Gallo, vice president and general manager of Gallo’s luxury wine business, added: “For 20 years, Ron Denner has stayed true to the land and his vision to produce great wines from the acclaimed Paso Robles region, cultivating an authentic, diverse portfolio. We look forward to drawing inspiration from and working with Ron and winemaker Anthony Yount.”

Primo Water Corp., Tampa, Fla., announced that Primo Water North America (PWNA), a wholly-owned subsidiary of Primo, has acquired substantially all the assets of Crystal Spring Water Co., a bottled water company based in Rhode Island. Crystal Spring Water Co. manufactures and distributes spring water to customers in Rhode Island and Southeastern Massachusetts. The company was founded in 1907 in Middletown Rhode Island. The acquisition will add approximately 2,500 customers to PWNA, strengthening its footprint in the Northeast region. “Crystal Spring Water Co. offers high-quality spring water solutions and delivers superior customer service that aligns with our mission of inspiring healthier lives through water your way,” said Tom Harrington, CEO of Primo, in a statement. “We are excited to welcome these customers and associates to our Primo family.” The company also acquired Highland Mountain Water, Atlanta. Highland Mountain Water is a leading independent distributor of Primo's Mountain Valley premium water brand. “With more than 2,500 customers and a service area that includes a population of more than 4 million residents, Highland Mountain Water will fit seamlessly into the Primo family and align with our mission of inspiring healthier lives through better quality water,” Harrington stated. “This acquisition fits within our existing footprint, expands distribution of our Mountain Valley premium water brand and furthers our vision of providing water solutions whenever, wherever and however our customers want them. Customers should expect the same great level of service they've been accustomed to, and we are excited to welcome these customers and associates to our Primo family.”