CPG Connect // Vol. 4: Functional Sips, Founder Stories & Snack Scale
Ever think your daily soda could do more than just taste good? This time out, we’re exploring how beverages are getting functional, how founders are building brands that stick, and how clean snacks are scaling across continents. Let’s dive into what’s really moving the CPG landscape right now.
Events coming up:
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As an agency partner (Lunar Solar Group) to both Phlur and Health‑Ade Kombucha, I'm thrilled to highlight how these client wins reflect broader industry momentum and why every brand should be ready to move with intention.
Phlur × TSG Consumer Partners
TSG Consumer has acquired Phlur, the thoughtful fragrance brand rooted in emotional storytelling. Think influencers, masstige positioning, TikTok buzz, and triple-digit growth through Sephora and Space NK. Founder Chriselle Lim stays on as Creative Director, keeping brand integrity intact. The deal underlines how buyer interest in creator-led beauty brands continues to surge
Health‑Ade Kombucha × Generous Brands
Health‑Ade, the LA kombucha brand championing gut health since 2012 and found in 65,000+ doors, is being acquired for $500 million by Generous Brands. This brings it into a powerhouse portfolio with Evolution Fresh, Bolthouse Farms, and Sambazon, showing how functional beverages are commanding real scale
What This Means for Brands
- Creator & purpose-fronted brands are high-value targets. Authentic story and community = differentiation.
- Functional/niche CPG is a fast track to acquisition, health benefits + mainstream distribution is a winning combo.
- Strategic alignment matters. Buyers want brands that fit both their portfolio and consumer trends, Phlur’s emotional storytelling, Health‑Ade’s gut-health positioning are exactly that.
Want to Scale Like Them?
If you're a brand looking to grow through:
- Paid ad strategy
- Creative execution
- Lifecycle marketing
- Web/e‑commerce buildouts
Grab time with me 👉 Book here
Jack Link’s Acquires Australian Snack Brand KOOEE!
- What happened: Jack Link’s, via its Link Foods APAC division, has acquired KOOEE! Snack Foods. The Tasmanian-origin brand behind 100% Australian grass‑fed beef sticks and added it to its Asia–Pacific portfolio.
- Why it matters:
- Natural + protein-forward = consumer gold. KOOEE!’s clean‑label positioning aligns perfectly with today’s better‑for‑you snacking trends
- Scaling smart: The brand keeps its identity, while gaining global-scale manufacturing, distribution, and R&D muscle
- Brand backstory: Founded in 2015 at Launceston’s farmers’ market by Shaun Malligan and Andy Fist, KOOEE! has grown into a national fixture, available at Coles, Woolworths, and health retailers
- What’s next:
- KOOEE! will maintain its unique voice and operations post-acquisition
- Expansion plans include Australia, NZ, Japan, Korea, and possibly the UK, powered by Link Foods’ existing global infrastructure
TL;DR: Jack Link’s isn’t just grabbing another meat snack, it’s buying into a clean, protein-rich brand with strong local roots and big APAC upside.
Sun Bum’s Loyalty Program Gets Real, No More Punch Cards
What’s new: Sun Bum launched The Bum Club with Rediem, moving past boring points systems by rewarding “bananas” for fun, brand-aligned actions (think sunset selfies, skin cancer quizzes, scavenger hunts, even doing nothing).
Impact so far:
- Nearly 14,000 sign‑ups in soft launch
- 85% of engagement via mobile
- Rich UGC, deeper data (SMS opt‑ins, challenge participation)
Why it matters for CPG:
- Community beats coupons – Actions drive emotional loyalty, not only transactions.
- UGC = free content – Members create marketing assets effortlessly.
- Mobile-first, no app needed – Easy integration, low tech overhead.
- Zero-party data goldmine – Meaningful insights from engagement, not just purchases.
Bottom line: The Bum Club shows modern loyalty is about experiences, emotions, and mobile simplicity, not just wallets and receipts. That’s the kind of loyalty CPG marketers should be chasing.
Shoutout to my friends at www.rediem.co for this one!
Pepsi Drops Prebiotic Cola, A Bold Reset
What’s happening: PepsiCo is launching Pepsi Prebiotic Cola this fall online (in stores early 2026), in Original and Cherry Vanilla formats. Each 12‑oz can has 3 g prebiotic fiber, 5 g cane sugar, 30 calories, and no artificial sweeteners, a rare tweak to its flagship soda in 20 years
Why it matters:
- Follows Pepsi’s $1.65 b Poppi acquisition, giving instant gut-health credentials
- Targets the $262 M prebiotic soda market (growing ~7.6% annually), now entering mainstream cola aisles
CPG Takeaway
- Legacy + Functional = Reinvention – Instead of launching a side brand, Pepsi infused its flagship cola with real benefits.
- Acquisition as R&D shortcut – Poppi brings expertise and credibility without starting from scratch.
- Functional meets familiar – Easy-to-digest fiber aligns with wellness trends while keeping classic taste.
Bottom line: Pepsi Prebiotic Cola proves legacy brands can stay relevant by marrying nostalgia with function, no new SKU needed. Time for all CPG players to consider upgrading existing stars with added purpose.
Liquid Death Enters Energy Drink Market
What’s up: Liquid Death is rolling out Sparkling Energy in January 2026, offering four flavors (Murder Mystery, Orange Horror, Scary Strawberry, Tropical Terror). Each 12 oz slim can delivers 100 mg caffeine (natural coffee‑bean source), no sugar or artificial sweeteners, sweetened with stevia + allulose, plus B12 and vitamin C
Why it matters:
- Targets the $23.9 b energy drink category with “sane” caffeine, around a coffee, not an extreme jolt
- Consistent with Liquid Death’s health‑forward line: water, flavored seltzers, iced teas, now energy
- Leverages viral, comedic marketing (Tony Hawk, Ozzy Osbourne) rather than traditional ad buys
CPG Takeaway
- Smart dose > caffeine overload – Healthier pick in a hyper-caffeinated biz.
- Built-in brand synergy – Extends rebellious identity across categories.
- Marketing as product – Viral content continues to be its advantage.
TL;DR: Liquid Death’s Sparkling Energy keeps its edgy persona while delivering a caffeine level that’s bold but balanced. A strategic play that shows growth through targeted innovation, not just louder marketing.
Zach x Nate: Unwrapped
1. Intro & Origin
Q: What did you see happening in CPG that made you need to speak up?
Honestly, it started with curiosity. I’ve always been drawn to consumer brands and retail, but when I joined a CPG brand during the pandemic, I started seeing a disconnect between what people were saying publicly and what was really happening behind the scenes. I started collecting insights, writing Twitter threads, and posting on LinkedIn. Eventually, I realized I had a perspective that wasn’t being talked about, especially across the entire ecosystem, so Express Checkout became the outlet. It was part curiosity, part accountability to stay up to date, and part wanting to spotlight brands and ideas that weren’t getting enough attention.
2. Trend Spotting & Trend Fatigue
Q: Which buzzwords are past their prime? What’s still charging ahead?
Functional foods are feeling bloated, pun intended. There are just too many out there, and while some ingredients like creatine, protein, and caffeine have real efficacy, most of these other functional stacks are over-engineered. I live with a doctor, so maybe I’m biased, but clean eating still goes a long way.
From a marketing standpoint, founder-led content is still surging, but I think we’re seeing a shift in tone. The most successful ones aren’t ego-driven or just trying to impress other founders on LinkedIn. They’re building real community on TikTok and Instagram and talking to customers. Brands like Good Girl Snacks, Sour Milk, and She’s the Sauce are doing it right, it feels personal, but not performative.
3. Distribution & Formats
Q: You’ve said DTC is a testing sandbox, but retail drives real scale. How does that tension play out?
DTC is where you tell your story and learn from your audience. You control the experience, get the data, and build the brand narrative. Retail is where you scale, but you only get 3 seconds on the shelf to make an impression, so your packaging has to be on point.
A creative play I love right now is brands getting into office fridges or snack bars. That kind of placement turns into product discovery at scale, especially at companies like Meta where employees will try something in the office, then go home and buy it. And airline distribution? Total sleeper hit. You land in someone’s hand mid-flight, that’s a powerful touchpoint.
4. Brand Building & Operator POV
Q: What are too many founders getting wrong right now?
They over-invest in aesthetic too early. Don’t get me wrong, great branding matters, but if you drop all your cash on design before you’ve nailed product-market fit, distribution, or your customer base, you’ve just built a really pretty problem.
Packaging can always be updated. What you can’t fix as easily is the lack of traction or insight into your core customer. I always say: test it in the real world, print it out, put it on shelf, stand back, and really compare it. Don’t design in a silo.
5. Looking Ahead in 2025
Q: What do the latest moves signal: AG1 in retail, Rhode’s acquisition, Impossible’s pivot, David’s $75M, etc.?
What all of these have in common is mass-market familiarity. None of them reinvented the wheel—they just executed better. Dr. Squatch didn’t invent soap, but they nailed the marketing. AG1 has been around for a decade and is finally going retail because they built a real fanbase.
The lesson? It’s not about hype. It’s about building for the long haul with staying power. Trends like clean label, protein-forward products, and functional wellness aren’t going anywhere. But the brands that win are the ones that consistently show up, stay community-driven, and build something people want to rep, not just consume.
Tech shoutout:
www.rapid-ads.com - RapidAds offers a comprehensive, user-friendly platform to bulk-upload Meta ads lightning-fast, with smart automation, protection from algorithmic interference, and robust multi-account support, earning praise from power users and media buyers alike.
Brand shoutout:
www.bodyofworkvitamins.com - Body of Work is built on smart positioning: clean, clinically anchored vitamins tailored for young women, debuting with a sharp $25 monthly multivitamin. For DTC wellness brands, it's a case study in focused product-market fit and trust-first branding.
Thanks for sticking with us. Whether you're exploring functional beverage innovation, founder success stories, or snack-scale strategies, I hope you’re walking away with fresh ideas and momentum. Also, samples of the hat you all voted for are coming!!
Whether you're launching your first SKU, scaling into Walmart, or trying to stay ahead of what’s breaking through, CPG Connect is here to help you keep pace.
See you next week✌️
— Zach
P.S. If this was helpful, feel free to pass it along to a friend, teammate, or founder in your orbit. And hit reply anytime, I read every note.