The Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage sector. From inaugural product lines to big investments and controversial topics, this column aims to quench the thirst for developments in the category.
Hard tea boosts Boston Beer as Truly seltzer falters
As summer approaches, the maker of Sam Adams is seeing growing momentum for its hard iced teas as consumers shy away from the traditional beer category and seek out new flavors.
Twisted Tea, the malt-based brand Boston Beer launched in 2001, is gaining popularity amid the growth in hard tea. The Lemon and Blue Razz flavors of Twisted Tea Extreme were the second and third fastest-growing products by volume in the flavored malt beverage category in Q1, CEO Michael Spillane told investors on an earnings call. The beverages each contain 8% alcohol by volume.
Another bright spot, according to Boston Beer, is vodka tea brand Sun Cruiser, which launched last year and expanded this month with vodka lemonade. This summer, it plans to boost the brand’s national distribution and increase its marketing budget, Spillane said.
Boston Beer’s optimism about its RTD portfolio was muted by slumping sales of its Truly brand. The company pointed to the overall hard seltzer category declining 5% year over year in the first quarter of 2025. The company is boosting partnerships for Truly, including with Barstool Sports podcasts, in hopes to juice volumes and make the brand “more culturally relevant,” the CEO said. He said the company is betting Truly Unruly, which contains 8% alcohol by volume, can turn things around for the seltzer.
“We are not satisfied with our Truly performance and are increasing advertising investment behind the brand this year and refreshing our marketing strategy,” Spillane said.
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Courtesy of PepsiCo
PepsiCo pours Lipton into lemonade
Across the beverage industry, iced tea and lemonade products are having a moment. Lipton, one of the most well-known tea brands, is looking to get in on the craze with the debut of canned iced tea lemonades.
Beverage giant PepsiCo announced the launch of Lipton Fusions, a canned lemonade iced tea in two flavors: Strawberry and Pineapple Mango.
“Lipton Iced Tea has always been synonymous with the carefree joy of summer, and with the launch of Lipton Fusions, now everyone can enjoy that ‘Lipton Taste, Summer Feeling’ all year long,” said Zach Harris, a vice president and general manager of Pepsi Lipton Partnership North America, in a statement.
Through its joint partnership with Unilever, PepsiCo has sold Lipton’s ready-to-drink teas since 1991. Unilever owned the Lipton brand until selling it to a venture capital firm CVC Capital Partners in 2020. The business partnership also sells Pure Leaf tea products.
The ready-to-drink tea category is worth an estimated $114 billion globally, and is projected to see 3.7% compound annual growth through 2029, according to Statista.
Experts believe the category is seeing a boost as consumers abandon sugary sodas and carbonated alcoholic drinks in favor of teas and refreshers, which are perceived as healthier and more premium alternatives. PepsiCo said Lipton Fusions contain 50% less sugar than regular soda.
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Courtesy of Gorgie
Women-founded energy drink brand Gorgie raises $24.5M
Energy drink maker Gorgie announced it closed a $24.5 million funding round as the women-founded brand aims to gain greater market share in the fast-growing category.
Investors in the round include Notable Capital and Coefficient Capital. The company, founded in 2023, has raised $37 million to date.
The brand was founded by entrepreneur Michelle Cordeiro Grant. Its drinks contain green tea caffeine, L-theanine and vitamins B6 and B12. Gorgie is sold at stores like Target and Whole Foods.
Part of the brand’s strategy includes exclusive flavors launched with popular beauty influencers. Other brands in the category targeting women are seeing growth, including Alani Nu, which was acquired by Celsius for $1.8 billion earlier this year.
“GORGIE is executing with precision and intent in a category overdue for change,” said Hans Tung, a managing partner at Notable Capital, in a statement. “It’s defining where the next generation of energy drinks is headed—toward wellness and ‘better for you’ products created by women, built for everyone.”
Better-for-you energy drinks are driving major gains in the category, and Gorgie touts that its drinks are formulated without aspartame, sucralose, or erythritol. Beverage giant Keurig Dr Pepper reported an 11% sales bump in its most recent quarter, driven by its nearly $1 billion acquisition of sugar-free beverage brand Ghost. Celsius, which has seen exponential growth in recent years, expanded its portfolio this year with drinks and powders targeting hydration.
