AGP Executive Report

India Label Crackdown: FSSAI ordered PepsiCo, Red Bull, Monster and others to drop “energy drink” wording from labels, citing no defined standards and “misleading” claims; companies get 90 days, with some production paused and retailers avoiding fresh stocking. Alcohol Policy Shockwave: Boston’s Licensing Board suspended Barcelona Wine Bar’s liquor license for three days after underage service and a bartender pouring wine from a porrón into a patron’s mouth; the bar will keep the communal ritual using juice and soda. Trade Talks Watch: Canada-U.S. negotiations are “tense” with a push for favored-nation terms; sources say proposals include removing auto counter-tariffs and provincial alcohol bans, but a deal by Aug. 19 is uncertain. Food & Color Reformulation: Grocery shelves may soon show “no artificial colors” claims as manufacturers reformulate away from certified synthetic dyes, potentially changing shades, packaging and prices. Seasonal Launch: Krispy Kreme rolls out a fall lineup starting Aug. 11, including pumpkin spice and apple crisp lattes plus new doughnuts. Water-Sector Security: A new report flags remote access as a top OT risk for water systems, where long-lived equipment and safety needs make protection harder.

Food & Drink Regulation: India’s FSSAI is escalating labelling and claims enforcement, with Dabur and alcohol-beverage makers challenging “100%”/absolute claims and other flavour or label directives in court. Health & Safety: A study linking microplastics in blood to higher risk of severe heart attacks is reigniting calls to cut plastic exposure, especially around food and beverages. Trade & Policy: U.S. senators are questioning a $2m payment from Base Group to a Trump family business tied to aluminum-tariff proceedings, while China’s first-seven-month trade data shows imports outpacing exports. Beverage Business: Kirin is buying Jamieson Wellness for $1.3bn to expand in North American health supplements as beer growth stays flat; Diageo is also pushing a $1bn cost-cut plan. Industry Culture: International Beer Day spotlights Bengaluru’s craft scene, and a MONIN Cup India bartending finale crowned a Bengaluru winner for the Paris global finals. Packaging & Processing: ALLFORPACK EMBALLAGE PARIS shifts dates to June 29–July 1, 2027, reflecting changing packaging cycles and ROI expectations.

Coffee Trade: India says coffee exports hit 140+ countries in FY2025–26, with growth into emerging markets and new destinations, while highlighting GI-tagged “Wayanad Robusta” promotion. Craft Beer Expansion: Phase Three Brewing will open its first Chicago taproom in the former Metropolitan Brewing space in Avondale, adding to its suburban locations. Spirits & Policy: Canada’s PM Mark Carney says he’s “not interested” in a narrow U.S. trade deal that doesn’t cover autos, steel, aluminum and forest products—key inputs for food and beverage supply chains. Wine Risk: French winemakers warn wildfire smoke could leave a “smoky taste,” with harvest timing and grape handling under scrutiny. Hemp-THC Crackdown: Wisconsin businesses and others brace for federal limits that could ban psychoactive hemp THC drinks starting this November, while lawmakers seek a short delay. Food Safety/Regulation: FDA’s ultra-processed food definition is circulating as a white paper rather than a binding rule, signaling possible downstream labeling and policy shifts. Industry Awards: Brush Creek Creamery’s labneh wins top honors at the Good Food Awards, spotlighting university-linked milk supply. Hospitality Support: A nonprofit program is expanding mental-health access for restaurant and hospitality workers, addressing therapy affordability barriers.

M&A in bubble tea: Bain Capital is buying Gong cha from TA Associates, with the deal expected to close in Q4; Gong cha has ~2,200 locations worldwide and is pushing direct franchising and “Gong cha 2.0” automated drink-making to speed tickets and expand in the U.S. Beer demand watch: China’s beer consumption stayed sluggish in peak summer, with sales down across multiple regions in H1 and limited World Cup lift as many matches ran late at night. Workplace heat and food/beer labor risk: South Korea is seeing more heat-related workplace injuries and deaths, prompting larger employers to add rest breaks and cooling access—an issue that can ripple through hospitality and beverage operations. Wine industry pressure: Oregon’s Rogue Valley is celebrating a top U.S. Wine Region ranking, but local speakers point to drought, costs, and health-driven shifts away from alcohol. Education-to-hospitality pipeline: New Zealand unveiled nine industry-led secondary subjects for 2029, including “Hospitality, food and beverage,” aiming to align training with workforce needs. Functional coffee supplement launch: Java Burn launched its liquid, coffee-compatible metabolic serum in the U.S., targeting blood glucose and energy with an FDA/GMP-made formula.

M&A in Tea: Bain Capital Private Equity has agreed to acquire Gong cha, the fast-growing whole-leaf tea brand TA helped scale since 2019, with Gong cha now at nearly 2,200 stores across 33 markets. Convenience Retail: A new c-store forecast study points to packaged beverages and beer/malt as top growth categories, while noting traffic softness and smaller baskets tied to higher gas prices. Functional Drinks & Ingredients: Ingredion and Synergy Flavors spotlight the push to cut sugar without losing taste—using stevia-plus-sweet-protein systems and “taste modulation” to manage sweetness, mouthfeel, and aftertaste in low- and zero-sugar beverages. Food & Beverage Innovation: NaturPak is debuting pouch packaging at SUPERZOO 2026, expanding shelf-stable pet nutrition formats. Hospitality & Alcohol Culture: Top Dog Cocktails is opening vinyl-focused listening rooms in Kennett Square and Fishtown, blending RTD cocktails with the Japanese jazz kissa concept. Regional Trade & Supply Chains: The Philippines is pitching itself to Singapore firms as a Southeast Asia production and services hub, including food processing. Public Safety: South Africa prosecutors charged a Club Med staffer in a case involving alleged rape of a teenage guest, with allegations that alcohol may have been spiked.

Sustainable Packaging Push: London Packaging Week named 87 finalists for its 2026 Innovation Awards, highlighting shifts toward fibre-based materials, smarter mono-material designs, and packaging that balances consumer experience with recyclability. Beverage Retail Snapshot: Singapore retail sales rose 4% year-on-year in June, but food and beverage services fell 2.3%, with online making up 20.2% of F&B services sales. Protein-Driven Dairy Demand: US cheese production hit record levels as whey output surged, with dry whey up 12.2% year-on-year—showing how protein trends are reshaping dairy supply chains. Energy Drink Recipe Trends: A new report maps how global energy drink formulations are diverging, with GLP-1-driven demand helping fuel more artificially sweetened, caffeine-forward products. Packaging for Drinks & Foodservice: A paper cups manufacturer expanded eco-friendly packaging production for beverage, hospitality and retail clients, betting on paper-based disposables as brands move away from plastic. On-the-Ground Brewing Upgrade: A UK brewery modernised its facility with stainless drainage channels and industrial ceramic tiling designed for harsh washdown and chemical exposure.

Canada Alcohol Retail Shake-Up: Canada’s new Direct-to-Consumer alcohol sales agreement lets shoppers buy wine, beer, and spirits directly from producers in participating provinces, but grocery groups expect little impact on weekly shopping habits. U.S. Food Manufacturing Jobs: A new look at U.S. food manufacturing shows record employment levels in 2025 even as the sector’s share of the workforce keeps slipping over time, underscoring how grocery staples still depend on large-scale processing. Foodservice Promotions: Convenience operators are leaning on targeted promotions to lift basket size as trips remain below pre-pandemic levels, with clear goals for each deal becoming the difference-maker. McDonald’s U.S. Pressure: McDonald’s is appointing a new president for its U.S. business while affordability concerns and weaker restaurant traffic weigh on performance. THC Hemp Policy: The U.S. Senate moved to delay a federal ban on intoxicating hemp products, giving Minnesota’s THC drink and gummy makers a short reprieve. Wine & Climate: Wildfire and heat pressures are continuing to disrupt wine supply chains, from vineyard damage risks to harvest uncertainty. Asset Sales in Beverage: AssetBuilt is taking on major surplus-equipment dispositions tied to citrus processing and former Anheuser-Busch manufacturing sites.

Hemp Policy Shake-Up (US): Minnesota lawmakers backed a delay to a federal THC rule that would otherwise redefine hemp and effectively ban many THC drinks and edibles on shelves this November, buying time for a longer fix. Regulatory Clampdown (India): India’s FSSAI stepped up enforcement on energy drinks, seizing brands and pushing companies to rework labeling and marketing claims after regulators said “energy drink” doesn’t fit existing food standards. Sustainability Claims (UK Dairy/Alt Milk): Oatly says an updated life-cycle analysis shows its UK oat milk now has a 67% lower climate impact than chilled cow’s milk, citing sourcing and energy/transport improvements. Water & Heat Stress (Japan): A week after Kumamoto’s 7.1 quake, thousands remain in shelters with persistent water outages and extreme heat, underscoring the need for cooling and basic services. Brand Packaging Insight (UK): A London Packaging Week commentary warns that the biggest threat to iconic packaging can be internal teams “modernizing” away what consumers actually recognize. Trade & Expo (Pacific): Pacific Trade Invest will bring 15 food and beverage exporters from eight Pacific economies to Fine Food Australia 2026.

Alcohol Safety & Fraud Tech: New laser-based research says counterfeit alcohol and even methanol contamination in sealed bottles could be detected without opening them, using Raman spectroscopy—aimed at stopping fake booze and protecting consumers. Regulatory Crackdown (Alcohol): Rwanda ordered a recall of dozens of alcoholic beverages and shut eight alcohol factories after inspections found production noncompliance, directing distributors and retailers to stop sales immediately. Cannabis Beverages Trend: Michigan consumers are reportedly shifting from beer and cocktails toward THC-infused drinks, with survey results suggesting many cut alcohol or stop entirely—raising stakes for breweries, wineries, and bars. Draft Supply Chain: MicroStar Logistics added Garage Beer to its outsourced keg management program to scale draft availability as the light-beer brand expands nationally. Food Security Policy Debate: A global look at how governments are responding to food inflation—from voluntary price caps to public grocery stores—highlights pressure on supply chains and household budgets. Water Cybersecurity: Michigan joined Minnesota in reporting cyberattacks on municipal water systems, with officials saying operations continued safely while investigations proceed.

Regulatory Crackdown (India): FSSAI says it has acted against some alcohol makers over alleged external flavouring meant to mimic rum/whisky and “misleading age” claims, with lab tests triggering prohibition orders. Dairy-to-Energy Innovation (UK): Heriot-Watt University and Take Root Bio turned salty cheese whey into bioethanol, aiming to cut a major dairy waste stream (about 95,000 tonnes in the UK yearly). Protein Boom (US Dairy): A report highlights how whey has shifted from a byproduct to a mainstream “protein-maxxing” ingredient, now showing up across foods and even beverages. Spirits Business Watch (UK): Reuters flags tensions and shrinking returns in Diageo’s long-running Moët Hennessy alliance, with any breakup complicated by deal terms. Solar for Campuses (Singapore): SIM signed a 14-year onsite solar power purchase agreement with Peak Energy, targeting a 45%+ rate cut—an energy-cost pressure point for education and fast-growing demand. Wine Education (Texas): Texas Wine Growers and Hill Country Wine Academy will run a Texas Wine Ambassador Certification course in Kerrville, with proceeds supporting industry education and advocacy. Heat & Safety (Korea): Seoul is tightening heat-wave response across sectors, including worker protections and cooling-shelter operations.

Alcohol Regulation: India’s FSSAI has launched enforcement against liquor makers over alleged flavour and labelling violations, including products sold as standard rum or whisky despite lab tests finding external artificial or nature-identical flavours. Public Health & Sugar: A cardiologist in the Northern Marianas warned that added sugars and modern food marketing are driving a childhood obesity and diabetes crisis, arguing industry replaced taste and texture with sugar. Wine & Climate Risk: Wildfires near Bordeaux are raising fears of “smoke taint,” with grapes in veraison potentially absorbing compounds that can alter wine aroma and value later. Energy Drinks Policy: Health Canada’s decision to drop warning labels on mixing energy drinks and alcohol is being questioned amid “wide-awake drunk” concerns. Local Food Economy: Isabela (Philippines) is pushing cacao as a higher-value crop, highlighting cacao festivals and growth in chocolate and specialty drink production. Beverage Business Watch: De Beers reported a half-year loss and plans to cut diamond output—another reminder of how demand shifts ripple through global consumer markets.

Heat-Resilience in Workplaces: Japan is rolling out cooling portable toilets and cutting construction hours to curb heat illness as summers intensify, with firms facing penalties for noncompliance. Sake Goes Global: Japan’s government plans to apply for UNESCO Intangible Cultural Heritage status for sake brewing to boost overseas brand power, including brewery visits and toji input. Cybersecurity Meets Public Health: U.S. officials warn cyberattacks on water systems have spread beyond Minnesota to Michigan and at least seven states, prompting calls to remove internet-exposed controls and tighten OT security. Hospitality Talent Pipeline: The World Sustainable Hospitality Alliance says it’s training about 2,000 disadvantaged young people in India for hospitality jobs, expanding employability across 20 cities. Drink Industry Spotlight: A UK Gun Dog Damson Gin Liqueur won “World’s Best Gin Liqueur” at the 2026 World Drinks Awards, adding to prior Great Taste and Great British Food wins. Retail & F&B Demand Boost: Malaysia expects stronger consumer spending for retailers and small F&B operators tied to Formula 1 Gulf Air Bahrain Grand Prix visitor spillover. Food & Beverage Business Update: Jamaica-focused GraceKennedy reports recovery momentum after Hurricane Melissa, with beverages cited as supporting demand and exports.

Water Security Shock: The FBI says cyberattacks targeting U.S. water systems are widening, with Minnesota and now Michigan reporting impacts on multiple utilities; officials stress no known public health harm but warn operators to harden controls. Colorado River Pressure: The U.S. unveiled a new Colorado River management roadmap that could cut up to 3 million acre-feet annually for Arizona, California and Nevada through 2036, with effects tied to reservoir levels. Hospitality & Pubs: UK pubs get a boost from Octopus Energy’s “Watt a Save” power-savings push during the World Cup, while UK Hospitality urges longer-term VAT relief for hospitality. Soda & Beverage Retail: “Dirty soda” truck operators are gaining traction with customization, even as major beverage brands and QSRs move in with ready-to-drink and add-in options. Wine & Climate Strain: Wildfires and extreme weather are hitting wine regions, with growers facing crop and harvest disruption. Functional & No/Low Trends: Demand for sober lifestyle products and functional drinks continues to rise, pushing brands to expand assortments.

FTC & Antitrust: The FTC asked a California federal judge for more time to finalize its settlement with Southern Glazer’s Wine and Spirits, extending a rare Robinson-Patman Act fight. Alcohol Policy & Pricing Pressure: New Zealand’s beer excise is squeezing hospitality, with on-tap beer taxed at the same rate as cheaper options—linked to rising liquidations and shrinking on-premise beer share. Energy Drinks Regulation: India’s FSSAI is pushing a 90-day transition for energy drink brands to drop the “energy drink” label, despite industry pushback. Sustainability in Food & Drink: PepsiCo is entering beauty with a Pepsi-inspired line (body scrub, body wash, lip kits), showing how beverage brands keep expanding beyond the bottle. Wine & Climate Risk: Wildfires are disrupting wine regions, with Bordeaux-area damage raising fears for harvests and supply. Hospitality Demand Shifts: Bars are leaning back toward Gen X-friendly programming as younger Gen Z drinking patterns soften. Ingredient Innovation: Afyren is promoting bio-based organic acids to help food and beverage makers cut emissions while keeping performance. Local Industry Spotlight: Tasmania’s Whisky Week kicks off with nine days of tastings and export-focused promotion for the state’s spirits sector.

Wine Industry Under Fire: Wildfires near Bordeaux are threatening France’s grape harvest at the worst possible moment, with evacuations near 60,000 people and fears smoke could leave lasting “ashtray” flavors on red grapes. California Wine Shake-Up: California growers are ripping up pinot noir vines and burning vineyards as sales slump and inventories pile up, underscoring how fast demand swings can upend long-term wine planning. Water Security Meets Cyber Risk: A coordinated cyberattack hit more than 30 Minnesota water systems, prompting boil-water notices and manual operations; officials suspect Iranian hackers and warn utilities to harden exposed controls. Foodservice Loyalty Push: Yum Brands says Taco Bell is redesigning its loyalty program to deepen direct customer relationships, while KFC and Taco Bell focus on more personalized, app-driven engagement. Hospitality Digitization: Fast-food chains are trying to keep “hospitality” human as they digitize ordering, adding roles and redesigning service flows to improve the in-store experience. Distribution Expansion: KULTURA Brands says it’s building a more diversified national beverage distribution platform by adding regional partners as it navigates RNDC market transitions.

Leadership Shake-Up (Wine): New Zealand Winegrowers has appointed Anishka Jelicich as chief executive, bringing more than two decades of international wine and drinks experience across New Zealand, the UK and Europe as the sector navigates premium demand alongside global and domestic pressures. Hospitality & Branded Real Estate: Saudi Arabia’s Diriyah Company awarded a SAR 2.7bn ($723.5m) contract for a Waldorf Astoria superblock, including hotel rooms, residences, and major food-and-beverage retail space—another signal of continued investment in branded hospitality. Cybersecurity & Water Safety: U.S. and EPA/FBI warnings highlight cyber actors targeting water utilities’ control systems, with reported incidents tied to operational disruption and “boil water” style impacts. Functional/Alcohol-Free Innovation: Yorkshire’s Theakston and Equinox Kombucha launched Hopbucha, a hop-forward kombucha/ale hybrid aimed at adult alcohol-free alternatives, with an early Great Taste Award. Policy Pressure (Energy Drinks): India’s FSSAI crackdown is pushing beverage firms to change “energy drink” labeling, with a 90-day transition timeline. Trade & Value-Add (Coconut): Philippines’ DTI XI launched the Madayaw Coconut trade fair to boost coconut-based food and drink innovation and market access for regional producers.