Coca-Cola
Coca-Cola To Pay $6 Billion in Back Taxes, Appeals Decision
Coca-Cola Co. announced it will pay $6 billion in back taxes and interest to the IRS while appealing a federal tax court decision. The dispute, dating back 17 years, involves taxes and interest the IRS claims Coca-Cola owes from 2007 to 2009. The company asserts the IRS changed its method for calculating US income based on profits from foreign affiliates, a method Coca-Cola had used for nearly 30 years. Despite the payment, Coca-Cola believes it will prevail in the appellate process and expects a potential refund if successful. The company raised its full-year sales guidance following a strong second quarter.
Danone
Danone Expects Continued Growth Despite Price Adjustments
Danone expects sustained volume growth and margin recovery in the latter half of the year, supported by further price adjustments. The French dairy giant reported positive first-half results with a 4 percent rise in like-for-like sales to €14.2 billion and a 257-basis-point increase in gross margin to 49.4 percent. CEO Antoine de Saint-Affrique and CFO Juergen Esser expressed confidence in maintaining growth, although at a moderated pace due to normalizing pricing effects. LFL sales growth in Europe was 1.7 percent in the first half, driven by pricing; North America LFL sales were up 3.7%, with volume-mix 2.9 percent; and China, North Asia and Oceania grew LFL sales 8.6 percent, almost entirely from volume.” Danone’s LFL sales guidance remains at 3-5 percent for the year, with a moderate improvement in recurring operating margin. The company emphasizes consumer-led pricing strategies to ensure sustainable growth and innovation.
Other Companies
Vybey Launches Nootropic Coffee Alternative In UK
Australian brand Vybey, known for its 'braincare nutrition,' has introduced a new nootropic coffee alternative, Braincare Smart Focus, now available in the UK and Europe. This innovative beverage, which comes in cacao and matcha flavors, is made with medicinal mushrooms and enhanced with nootropics and adaptogens. Co-founder Gordon Belch created this product in response to concerns over coffee's side effects like jitters and energy crashes. Braincare Smart Focus includes lion’s mane mushroom for concentration, maca root for energy, turmeric for inflammation reduction and chaga mushroom for antioxidants. The product aims to offer improved focus and brain health while boosting overall wellbeing. Following a three-month soft launch, Vybey is set to roll out Braincare Smart Focus to retailers and wholesalers in the UK this month.
China’s Shift Towards Healthier Soft Drinks Grows
In China, a shift toward healthier soft drinks is reshaping the beverage market. According to GlobalData, low-calorie soft drinks saw 39.6 percent annual growth in 2023, driven by increased consumer preference for low-sugar options. Conversely, traditional carbonates experienced growth of 1.5 percent, partly due to health concerns linked to aspartame. Fruit-based beverages, such as juices and nectars, also outpaced carbonates with growth rates of 9.6 percent and 11.8 percent, respectively. The trend towards health-conscious choices has been amplified by the Covid-19 pandemic. Despite an overall 5.6 percent increase in soft drink volumes, carbonates are expected to see slower growth in 2024. Additionally, iced/RTD teas grew by 18.3 percent annually, reflecting their perception as healthier alternatives. China's soft drinks market is projected to reach $5.89 billion by 2027.
Luscombe Drinks Launches Dartmoor Spring Water
UK-based Luscombe Drinks has introduced Dartmoor Spring, a new premium bottled water brand featuring both still and sparkling options. Sourced from a natural spring on Luscombe’s farm near Dartmoor National Park, the water is noted for its softness. Free from added fluoride and limescale, with a neutral pH of 7.3 and packaged in 27cl bottles, Dartmoor Spring aims to cater to the growing demand for high-quality bottled water. Gabriel David, Luscombe's founder, highlighted the brand's potential to meet market needs and enhance Luscombe's product range. With the UK bottled water market valued at £2.1 billion and expected to grow by 12 percent by 2027, Dartmoor Spring is poised to capitalize on increasing consumer preference for convenient, safe hydration. The water also serves as a key ingredient in Luscombe's premium soft drinks.
Siddhi Capital Raises $135M For Food And Beverage Innovation
US-based Siddhi Capital has secured $135 million in its second fund, doubling its 2020 first fund. The firm plans to invest in growth-stage consumer and food tech companies, focusing on fewer but larger investments. Siddhi Capital aims to unlock growth potential and disrupt the food, beverage and tech sectors through strong involvement with operational and strategy teams within Siddhi Services. Co-founder Melissa Facchina emphasizes investing in innovative solutions driven by health and wellness objectives. Siddhi has backed several notable US beverage brands, including Aura Bora, Mud/Wtr, Mooala and WellWell. Its investment in Kencko smoothies was highlighted as a top beverage investment in 2022. The firm supports emerging brands with comprehensive operational expertise, encompassing manufacturing, procurement and logistics.
12-Year-Old Creates Sports Drink With Flavorman
Flavorman, a custom beverage development firm based in Louisville, has crafted a new sports drink line called Sparklytes with 12-year-old Joey DiRocco from Massachusetts. The drink, featuring all-natural ingredients like coconut juice, lemon juice and monk fruit, will be available in flavors such as peach mango and blue raspberry. DiRocco, who was inspired to create his own drink to support Easterseals Massachusetts—a nonprofit that helped him with assistive technology—worked with Flavorman’s beverage architects to bring his vision to life. Flavorman, known for developing a variety of drinks including energy beverages and flavored spirits, says it’s proud to support young entrepreneurs like DiRocco. The venture aims to raise funds for the nonprofit and enhance DiRocco's ability to give back.
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