AGP Executive Report

Energy & Formulation Watch: FMI’s “Power of Beverage 2026” report says shoppers are spending nearly $295B on retail beverages and increasingly want functional benefits—hydration, energy, protein, digestive health and relaxation—pushing retailers to rethink how they merchandise and market drinks. Novel Caffeine Alternatives: A new industry session spotlights “cleaner” energy ingredients beyond traditional caffeine, including paraxanthine and Alpha-GPC, focusing on how brands evaluate ingredients, handle supply chains and explain unfamiliar compounds to consumers. Packaging Innovation: Australia and New Zealand’s PIDA 2026 winners point to circular-economy design moving past material swaps toward reuse models, design-for-recovery and closed-loop recycling, with sustainability now treated as a baseline expectation. Wine Under Pressure: Reuters reports wildfires near Bordeaux are a climate warning sign as drought and heat stress vines and drive one of the earliest harvests on record. Water Security: Moldova’s PM orders immediate steps after a hydrological alert—continuous monitoring of the Dniester River and checks on wells, reservoirs and backup sources, with drinking water prioritized. Beverage Business Moves: Refresco’s Carlisle site will stay open as a reduced-staff distribution center after manufacturing ends. On-Premise Buzz: Cobra in Columbus was named Best U.S. Restaurant Bar by the Tales of the Cocktail Foundation. Food & Drink Retail: The Cheesecake Factory marks National Cheesecake Day July 30 with any slice half price and a new Brownie Crunch Choc-a-Lot flavor, plus a Feeding America donation.

Energy & Formulation Watch: FSSAI is refusing to recognize “energy drink” as a separate category and has given beverage makers 90 days to stop using the label, despite pushback from major brands like Pepsi, Red Bull and Monster. Trade & Pricing Pressure: A new U.S. 50% tariff on Canadian whisky starts Aug. 19, while Scotch was recently cleared tariff-free—creating a near-term shelf-price split for drinkers. Water Stress for Hospitality: Kodaikanal’s drinking water crisis is hitting residents and the hospitality sector hard, with municipal supply reaching many homes only once every 7–8 days. Sugar Market Shock: South Africa’s sugar industry says cheap imports are still flooding in and warns government delays could threaten local jobs and growers. Packaging as a Team Sport: Major brands are bringing broader cross-functional teams to London Packaging Week, reflecting how packaging now spans marketing, sustainability, engineering and compliance. Coffee & RTD Innovation: Nomad Coffee Group racked up 25 medals at Golden Bean Australasia, while Passion 24 launched a clean-label collagen functional juice in RTD can format. Restaurant & Community Events: New Zealand’s Visa Wellington On a Plate returns Aug. 1–31 with nearly 100 events and pay-what-you-can dining.

Cybersecurity in Beverages: Coca-Cola’s Fairlife is restarting most U.S. production after a ransomware attack that paused operations and involved unauthorized access to part of its systems, with the company still not detailing what data was taken or whether ransom demands were made. Food & Drink Regulation: India’s FSSAI has given beverage makers 90 days to drop misleading “energy drink” claims, targeting brands including Red Bull, PepsiCo’s Adrenaline Rush, Monster, and others after the regulator said no energy-drink standard exists. Health & Nutrition: A Texas audit found 4 in 5 toddler foods were ultra-processed, and nearly half failed WHO nutrient standards—just as FDA considers front-of-pack labels and child-focused marketing rules. Trade & Pricing Pressure: New U.S. tariffs on Canadian goods (including wine) are set to take effect Aug. 19, raising cost concerns for businesses and households. Coffee Research: A long-running study links higher coffee/tea intake in midlife with lower later frailty and improved liver outcomes, though researchers stress the findings are observational. Hospitality Tech: Hotel leaders say AI can help food-and-beverage operations, but only after companies fix messy data foundations.

THC Policy Shake-Up (Texas): Texas lawmakers are moving toward a broader THC ban, with Denton businesses bracing for more restrictions starting July 31—while some THC beverage sellers say they’ve already shifted to delta-9 and THCA products. Hospitality & Awards: Tales of the Cocktail Foundation’s 2026 Spirited Awards crowned Hong Kong’s Bar Leone and Argo in top international bar categories, with Singapore’s Fura taking the big honors. Water Infrastructure (Australia): WA’s Cook Labor Government and Rio Tinto are progressing talks to potentially acquire the Dampier Seawater Desalination Plant to boost water security for housing and jobs in the Pilbara. Airport F&B Tech (Turkey): Antalya International Airport’s food-and-beverage push leans on ordering tech—screen ordering now, plus QR-code ordering across terminals next year. Wine Market Signals (France): Champagne producers set a lower 2026 marketable yield to manage inventories amid softer demand and weather stress. Food Safety (U.S.): Cyclospora cases are surging, with CDC reporting thousands of lab-confirmed infections and a growing backlog of unconfirmed cases. Wine Industry Governance (Australia): Wine Australia adds two directors to strengthen leadership as the sector navigates oversupply and shifting consumer demand. Sustainability Regulation (EU): The EU moves toward sweeping PFAS “forever chemicals” restrictions, with member states already tightening rules.

Beverage M&A Watch: Delta and Varun Beverages are locked in a bid race for control of Zimbabwe’s Dairibord Holdings, with Zimbabwe’s competition rules requiring regulator approval for deals that shift control. Water & Bottled Drinks Reshuffle: Nestlé will move its bottled-water brands into a new joint venture, Peranel, with Platinum Equity, aiming for a dedicated water-and-premium-beverages platform. Trade Pressure on Alcohol: Canada’s Gordie Howe Bridge inauguration was canceled amid escalating US tariff threats that also target sectors including alcoholic beverages. Hospitality Cost Squeeze: UK pub and restaurant chains continue closing sites, with Beefeater among the latest to shut all 106 locations—another hit to the on-trade drinks channel. Direct-to-Consumer Alcohol: Canada’s provinces signed an agreement to expand cross-jurisdiction DTC alcohol sales, letting producers seek LCBO authorization for online ordering and home delivery. Beverage Business Performance: India’s Tata Consumer Products posted slightly better-than-expected profit, helped by double-digit volume growth in its India branded business that includes tea, coffee, and packaged foods. Food Safety & Health Trends: A new update from CogniHoney lists its 2026 dietary supplement ingredients (baobab fiber, L-arabinose, spermidine, konjac glucomannan), underscoring ongoing consumer demand for functional beverages and wellness-adjacent products.

NZ Beer Awards: Karamu Barrelworks, a small spontaneously fermented Waikato brewery, was named overall champion at the New Zealand Beer Awards, while Emerson Brewing took the Champion NZ Large Brewery title. Health & Food Science: A new explainer argues ultra-processed foods are engineered for overconsumption, linking them to rising health concerns and even cognitive decline. Corporate Earnings (Beverages/CPG): Tata Consumer Products beat Q1 expectations, with profit growth driven by its branded business even as margins face pressure from costs. Craft Beer + Climate Activism: A Liverpool brewery launched a CO2-pipeline protest beer, donating 50p per schooner to Action Against CCS. Hospitality & Alcohol Culture: UK pubs face continued strain as Gen Z diversifies social life and “less booze” trends gain traction, adding pressure to an already shrinking pub scene. Water & Sanitation: Namibia reports high urban water access but flags a sanitation gap and aging infrastructure needs—an issue that can ripple into food and beverage supply chains. Tariffs Watch: Multiple reports highlight how renewed geopolitical tensions and tariff threats are feeding into cost pressures across consumer goods, including drinks.

RTD & Campus Innovation: Niagara College rolled out “Campus Crush” seltzers—Raspberry Rhubarb Rosé and Lime Cucumber Riesling—built with its Teaching Winery and Food & Beverage Innovation Centre, giving students hands-on sparkling wine formulation experience. Functional Drinks Scrutiny: A new analysis of prebiotic sodas says many products overstate “gut health” claims, with some “no added sugar” labels still carrying meaningful total sugars and relatively low prebiotic fiber. Cashless Payments in Hospitality: Dollywood is moving more properties to electronic-only payments for food and beverages, citing faster, safer service; the flagship park still accepts cash. Food & Drink Safety/Standards: USDA notes that “ice cream” has a milkfat threshold; Dairy Queen’s soft-serve doesn’t meet the strict definition, highlighting how labeling can differ from consumer expectations. Industry Tech: VIP introduced “VIP Intelligence,” an AI suite for beverage pricing, orders, forecasts, and insights across the three-tier system. Wildfire Disruption Near Wine Regions: France and Spain wildfires have displaced 250,000+ people, with Bordeaux-area blazes prompting major emergency measures that could ripple through regional tourism and supply chains.

AI for Beverage Supply Chains: Vermont Business Magazine VIP rolled out VIP Intelligence, an AI suite aimed at beverage makers, distributors, and retailers, promising faster pricing, orders, forecasts, and insights built on three-tier beverage data. Hospitality Under Pressure: UK hospitality is still getting squeezed as Coventry pubs face closures amid cost-of-living strain and changing habits, while Prime Minister Andy Burnham announced a 20% business rates cut for hospitality and entertainment venues. Grocery Pricing Crackdown: New Jersey signed a surveillance pricing ban into law, targeting grocery price changes driven by shoppers’ personal data. Delivery Fees in Flux: DoorDash is changing how it calculates delivery and service fees, with distance and order size driving some fees up or down. Coffee Innovation: Cofermenting is emerging as a specialty coffee trend, using wine yeast and other ingredients to create fruit-forward flavors without adding calories. Beer & Events: All Pints North Summer Brew Fest is moving from Duluth to Bemidji for 2027, reflecting shifting festival demand. Spirits & Trade: US tariffs on Canadian alcoholic beverages remain a live wire, with industry watching for knock-on effects.

AI for Beverage Supply Chains: VIP (Vermont Business Magazine VIP) rolled out VIP Intelligence, an AI suite that turns beverage data into pricing, orders, forecasts, and actionable insights across the three-tier system. Wine Investment: New York Gov. Kathy Hochul announced Vine Enterprises will invest at least $47M to modernize the historic Pleasant Valley Winery in Hammondsport, supported by $12M in state funding and aimed at boosting Finger Lakes grape demand and jobs. Food Safety & Traceability Pressure: Coca-Cola said a ransomware attack halted all US production at Fairlife, while a Food Exec Brief highlights ongoing traceability and traceability-rule push after the Taylor Farms-linked Cyclospora outbreak. Spirits & Travel Retail: Lakrids by Bülow is expanding into UK travel retail via Avolta, adding Heathrow and other airports to its liquorice-and-chocolate lineup. Local Hospitality Shakeups: A Boston-area operator will close Bar Mezzana, No Relation, and Shore Leave on New Year’s Day, citing lease strain and business-financial realities. Policy Watch (Beverage Taxes): Ghana plans to remove a 20% excise duty on locally produced fruit juices to spur agro-processing and tackle excise collection gaps.

AI for Beverage Supply Chains: VIP (Vermont Business Magazine VIP) rolled out VIP Intelligence, an AI suite meant to turn beverage data into pricing, orders, forecasts, and actionable insights across the three-tier system. Shrinkflation Rules: Kenya’s Competition Authority says manufacturers can resize products, but must clearly label and disclose changes to avoid misleading shoppers. Low/No Beer Quality Push: Cask Marque added Lucky Saint and Ossett Brewery as corporate members, expanding its Perfect Pint Promise accreditation for alcohol-free beer standards. Hospitality Cost Pressure: UK pubs got a 20% business rates cut, but operators say it’s a “first step” and want broader relief like VAT changes. Trade-Tariff Shock: Canada’s PM Mark Carney warned retaliatory measures are on the table after new US tariffs, keeping pressure on beverage and other exporters. Mango Drink GST Fix: India’s panel recommended 22–25% mango pulp for concessional GST on mango beverages, aiming to stabilize Totapuri prices for farmers. Menu Upgrade + Food Safety Watch: Salad and Go launched Menu 2.Go with new proteins and combos while monitoring a Midwest cyclospora-linked produce concern. Beer/Spirits Industry Tech & Finance: South Carolina’s liquor liability crisis is driving interest in captive insurance models to cut coverage costs for bars and venues.

AI for Beverage Supply Chains: Vermont Business Magazine VIP rolled out VIP Intelligence, an AI suite aimed at beverage makers, distributors, and retailers, built on its three-tier data to power pricing, orders, forecasts, and operational insights. Food Safety Recall: The FDA issued a voluntary recall alert for eggs from Midwest Poultry Services after potential salmonella contamination was found on Texas farms; affected Kroger store-brand cartons span multiple states with specific sell-by/use-by ranges. PFAS Health Update: EFSA cut the acceptable daily intake for trifluoroacetic acid to 0.014 mg/kg/day and added an acute exposure reference dose, citing new science tied to thyroid hormone changes. Startup Funding (Snacks): Smash Foods secured $18M led by L Catterton to scale chia-fortified fruit spreads and Jammy Protein Bites, reporting growth past 10,000 doors and profitability. Beer/Brand Spotlight: American Rebel Holdings’ AREB shares jumped as CEO Andy Ross headlined Parx Racing’s Country Night finale, highlighting expanding Pennsylvania distribution. Coffee Prices: Coffee futures jumped above $3/lb amid renewed buying activity and El Niño-linked concerns, with next moves tied to Brazilian harvest and farmer selling decisions. UK Hospitality Policy: England’s 20% business rates cut for pubs, clubs, and live music venues drew mixed reaction—welcomed as a start, but operators want deeper VAT relief and longer-term cost help.

Alcohol Crackdown: Nigeria’s NAFDAC has launched a nationwide enforcement drive to seize and remove banned sachet and sub-200ml PET alcoholic drinks, warning manufacturers, importers, retailers and transporters to surrender remaining stock or face sanctions and prosecution. Excise Duty Shift: Kenya expanded excise duty remission beyond beer to qualifying wine and spirits, aiming to cut costs for compliant producers and boost use of locally sourced inputs, with added compliance steps. Direct-to-Consumer Alcohol: Canada’s premiers agreed to allow direct-to-consumer alcohol sales across most provinces, reshaping how wineries, distilleries and breweries reach customers. Tariff Pressure on Drinks: The U.S. announced 50% tariffs on certain Canadian goods, with industry groups warning it could hit Canadian spirits and wine exports. Packaging & Foodservice: A new forecast puts the global foodservice paper bag market on track to reach $8.9B by 2036 as restaurants and delivery operators shift away from single-use plastic. Festival & Hospitality: Australia’s KegLand On Tap will debut in Melbourne in September with a producer-first model, while South Africa’s retail trade grew 2.3% in May, supported by online demand.

Franchise Expansion: HTeaO says it opened 10 new stores in Q2 2026—nine in Texas plus one in Oklahoma—while also landing on Inc. 5000 and Fast Casual’s Movers & Shakers lists, signaling continued momentum in the beverage-and-café franchise lane. Trade Pressure on Drinks: U.S. coffee prices could rise further if Washington responds to Nicaragua’s election ban, with coffee traders warning of possible restrictions or tariffs on a key Nicaragua export. Tariff Shock for Alcohol: Canada’s beverage sector is bracing after Trump’s 50% tariffs on Canadian imports, with the list explicitly including wine and other alcohol-related goods and taking effect Aug. 19. Direct-to-Consumer Alcohol: Canadian premiers have agreed to expand direct-to-consumer alcohol sales across most provinces, reshaping how wineries, distilleries, and breweries reach customers. Food Safety & Compliance: eHACCP.org is promoting accredited online HACCP training aimed at helping beverage and food operators meet regulatory expectations. Sustainability Packaging: ACE Ireland is urging €3.5M for upgrades to materials recovery facilities so beverage cartons can be sorted more effectively as EU packaging rules tighten.

Trade & Pricing Shock: The U.S. move to impose 50% tariffs on many Canadian goods is set to hit alcohol and dairy, with beer and sparkling wine among the listed products—raising fresh questions about higher prices for consumers and ripple effects across beverage supply chains. Brewing Tech: GEA is pushing an integrated approach to lautering high-gravity wort under its SUD-2030 project, aiming for higher concentrations to cut energy and water use and make brewhouses more compact. Beer Cost Pressure (Australia): Australia’s beer is flagged as the world’s priciest, as industry groups warn the “beer tax” on bottled and canned beer is due to rise next month. Market Growth (Malaysia): Food and Drinks Malaysia (FDM) in Kuala Lumpur is targeting sales above last year’s US$265M despite supply-chain friction and higher transport-driven food costs. Foodservice Demand: Technomic says restaurants are still struggling with traffic as consumers stay cautious on spending. Water & Infrastructure: Federal officials are launching efforts to speed up water infrastructure grants, targeting administrative delays that slow small and rural drinking-water projects. Nightlife & Jobs (Australia): Melbourne’s night-time economy is growing fastest, with food driving most new venues and jobs.

Trade Shock for Alcohol & Dairy: The U.S. is moving toward 50% tariffs on many Canadian goods, including wine and liquor, with no CUSMA shield—prompting Canada’s premiers to push back and keep alcohol bans in place as leverage. Policy Pushback: Ontario Premier Doug Ford calls the U.S. a “bully” and says any lift of the U.S. booze boycott depends on broader tariff relief. USMCA Review Starts: Mexico and the U.S. kick off the first annual USMCA review, with talks covering autos, steel, agriculture, labor, and electronic payments. Wine Supply Chain Risk: San Diego County warns Costco shoppers (June 24–July 3) that Desert Willow plants may carry invasive sharpshooter pests linked to Pierce’s disease. Hospitality & Drinks Industry: Tales of the Cocktail opens in New Orleans, while South Florida’s World Cup hospitality results come in uneven—spikes on match days, weaker longer stays. Industry Moves: Del Taco wins top honors in USA TODAY’s 10Best; Andrew Peller advances its going-private process; DeJong Consulting buys Metallum Welding to strengthen sanitary food plant buildouts.

US-Canada Trade War: Trump unveiled new 50% tariffs on nearly $20bn of Canadian imports, with alcohol and dairy included alongside items like wine and even ice hockey gear, citing alleged “discrimination” under Section 338; Canada’s PM Mark Carney says the move violates USMCA and signals readiness to intensify talks. Packaging & Supply Chain: Angola inaugurated “Cristal Azul,” a $45m glass container plant in Bengo with 60,000 tons/year capacity to serve food, beverage and pharma packaging needs. Circular Materials Milestone: Carbios hit its 100th successful batch at its Clermont-Ferrand demo plant, validating its fiber-to-fiber enzymatic biorecycling and expanding licensing to PET-rich textile waste. Beverage Capital Markets: Coca-Cola appointed JPMorgan and Citi for a planned 2027 IPO of majority-owned India bottler Hindustan Coca-Cola Holdings, as multinationals monetize stakes in India. Food & Beverage Tech: HunterLab launched Vista® L2 with an extended 710 nm measurement range for color analysis. Craft Beer Stress: Coldwater Mountain Brewpub filed for Chapter 11 bankruptcy amid a downturn in US craft beer sales. Water Policy for Industry: Malaysia’s PETRA will study an Industrial Water Reclamation Policy for sectors including food and beverage, aiming to boost reclaimed-water use.