Latest news with #PowerBrands
Daily Mirror
02-08-2025
- Health
- Daily Mirror
Brits 'ditching coffee' for 'bizarre' caffeine-free health drink
Brits are swapping flat whiles for mushroom coffees - but what's really in the fungi brew, experts warn the wellness buzz may be more about the 'clean' branding than proven health benefits. Mushroom coffee has become the latest trend, packaged in pastel tins and praised by people for its supposed 'clean energy.' Behind the buzz, mushroom coffee has become a booming industry, now worth over £2.5 billion globally, according to Power Brands and it's not just wellness girls jumping on the fungi wave - UK cafés, legacy supermarkets and big-name online brands are all cashing in. But while people are ditching their flat whites, many customers don't understand what they're sipping and mushroom coffee makes its way from niche wellness trend to supermarket shelves, we've put together all you need to know. It comes after a man claimed 'I lost 10st in a year without jabs, surgery or going to the gym'. READ MORE: 'Painless' hair removal device that works in 'weeks' and saves on waxing is £140 off Mushroom coffee blends are typically made from ground coffee mixed with powdered medicinal mushrooms like lion's mane, chaga, reishi or cordyceps and are classed as 'functional mushrooms.' - 'It's important to remember that functional mushrooms aren't regulated like medicine. Some brands include such small amounts of active ingredients that the effects are negligible.' says Branding Expert, Darin Ezra from Power Brands. They promise smoother energy, sharper focus, and less of that caffeine crash; we all dread. Some blends are totally caffeine-free, while others include espresso or instant coffee and people are calling it the wellness world 's answer to overstimulation. What people often get wrong It's not psychedelic Despite the name, mushroom coffee contains no hallucinogenic compounds. It's made with functional mushrooms long used in traditional medicine. That said, the branding can confuse consumers, especially younger ones looking for a mind-altering twist. It's not always caffeine-free While some blends are promoted as alternatives to coffee, many mushroom drinks still contain caffeine. Always check the label. Otherwise, that promised 'calm focus' might still come with the jitters. It's expensive Premium mushroom coffees often cost twice as much as regular coffee, with price tags reflecting perceived wellness value rather than proven results. Packaging plays a huge role here, especially in Instagrammable tins and TikTok-ready sachets. It's not a magic bullet Studies suggest that lion's mane may improve cognitive function and reishi may support immunity, but the evidence is still emerging. Many products use buzzwords that overpromise benefits not yet backed by robust clinical trials. Why is it trending now? Between burnout culture, sober-curious living, and the rise of self-care routines there is a shift in how we drink, shop, and manage stress and mushroom coffee seems to be the answer. Curious meets wellness culture With more Gen Z consumers avoiding alcohol and looking to wellness for daily rituals, mushroom coffee is positioned as a health-positive substitute. It's marketed like a modern tea ceremony: spiritual, sleek, and self-optimising. Aesthetically "clean" TikTok-friendly packaging, pastel powders, and buzzwords like nootropic, clean energy, and biohack appeal to younger audiences. This demographic values transparency, minimalism, and mental health, and brands are tailoring their messaging accordingly. Eco and ethical positioning Many mushroom brands position themselves as sustainable and cruelty-free, aligning with Gen Z values around ethical consumption and plant-based alternatives. Is it actually worth it? According to Branding Expert Darin Ezra from Power Brands, mushroom coffee isn't just a drink - it's a lifestyle brand in disguise. 'Mushroom coffee isn't harmful, and in some cases, it may offer benefits. But it's also a masterclass in branding: selling calm, focus, and 'clean energy' to a generation overwhelmed by modern life. As always, consumers should read the fine print before buying into the buzz,' says Darin Ezra 'Consumers today, especially Gen Z, are buying more than just ingredients; they're buying identity. Functional coffee blends play into self-improvement narratives while offering the illusion of control over stress, energy, and productivity.' she adds 'This category thrives on the language of biohacking, and many mushroom coffee brands market themselves as science-backed, even if the research is preliminary. What makes them successful is the packaging and social proof: wellness influencers, TikTok reviews, and sleek visual branding.'
Reuters
24-07-2025
- Business
- Reuters
UK's Reckitt raises revenue outlook after second quarter beats expectations
July 24 (Reuters) - Consumer goods company Reckitt (RKT.L), opens new tab raised its annual revenue forecast on Thursday after second-quarter net sales growth topped expectations as strength in emerging markets offset weakness in North America and Europe. Shares jumped 10% to their highest level since early 2024 and were headed for their biggest one-day percentage gain since 2000. Reckitt, the maker of Durex condoms and Lysol cleaning products, is pivoting to focus on its 11 so-called "power brands" under CEO Kris Licht, as the sector grapples with weak demand and intense competition. The company reported like-for-like quarterly net revenue growth of 1.9%, compared with 1.7% forecast in a company-compiled consensus. Reckitt also announced a new share buyback programme of 1 billion pounds over the next 12 months. Growth in North America and Europe fell short of expectations, dragged by a challenging consumer backdrop and the expected shelf reset of its flu relief medicine Mucinex due to reformulation. But strong sales in China, India and Latin America made up for weakness in those key markets. Among Reckitt's other well-recognised brands are Strepsils throat lozenges and Harpic bathroom cleaning products. "We delivered excellent growth in emerging markets and navigated a challenging consumer environment in our developed markets," Licht said in a statement. Reckitt raised its 2025 like-for-like net revenue growth forecast for its core business to above 4%, from between 3% and 4% expected earlier. It now expects overall group like-for-like net revenue growth between 3% and 4% for the year, compared with an earlier forecast of 2% to 4% growth. The company last week sold a majority stake in its Essential Home business to private equity firm Advent for $4.8 billion. It is also looking at strategic options for its Mead Johnson division, which is the subject of a number of baby formula lawsuits in the U.S. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, beating analysts' average expectations of 1.66 billion pounds. ($1 = 0.7368 pounds)
Forbes
09-07-2025
- Business
- Forbes
National Beverage Banks On Innovation And Marketing To Boost Volumes
LaCroix, National Beverage's flagship product, a leader in the sparking water category (Photo by ... More Smith Collection/Gado/Getty Images) National Beverage Corp. (NASDAQ: FIZZ) stock price rallied to almost $47 per share, up 5% last week when the company posted better-than-expected 4Q 2025 and full year 2025 performance. The market reacted positively to the news of volume gains in both the company's flagship Power+ Brands and carbonated portfolio during 4Q, breaking its declining volume streak over the last two quarters. The company posted 4Q revenue at $313.6 million, up 5.5% y-o-y because of volume gains from the newly launched LaCroix flavors during the quarter. The full year revenue came in at $1.2 billion, marginally higher compared to last year as the price increase was largely offset by volume declines during the period. However, the reduction in shipping and handling costs and lower marketing spend resulted in higher annual earnings at $2.00 per share, up from $1.89 per share a year ago. The FIZZ Story National Beverage is a leading non-alcoholic beverage company in the U.S. catering to active and health-conscious consumer (Power+ Brands) through sparkling waters, energy drinks and juices. Its portfolio offers sparkling water products under the LaCroix brand, energy drinks and shots under the Rip It brand, juices and juice-based products under the Everfresh brand and carbonated soft drinks (CSDs) under the Shasta and Faygo brands. The company changed gears in 2010 when it started focusing on the needs of the health-conscious consumers that are moving away from high-sugar sodas towards zero or low-calorie alternatives. Accordingly, FIZZ pioneered into the sparkling water category with its LaCroix brand, which is now its flagship product, accounting for more than 80% of its revenue. The company has 26 refreshing flavors under its LaCroix brand with creative names and modern bold tastes that appeal to the younger consumers. The beverage company rolled out some new variants of LaCroix in Q4 2025 – Sunshine, Cherry Lime, Blackberry Cucumber – that received very encouraging response from the customers, hinting at the brand loyalty that the company has built over the years. At the end of FY 2025, FIZZ had operating lease liabilities of $72 million against a cash balance of $194 million. Its operating cash flow for the year increased to $207 million, from $198 million a year ago. Also, the company, through its subsidiary, maintains an unsecured revolving credit facility with banks aggregating to $100 million, most of which remains available for borrowing. For FY 2025, the company's return on equity, which demonstrates the efficient utilization of shareholder's capital, was 42%, up from 32% in FY 2024. The return on invested capital (excluding short-term liabilities), a ratio that tells about the company's financial health, was around 35%, higher than 28% compared to last year. Industry leading margins and returns, coupled with an asset-light zero debt balance sheet, validate that the company's ability to preserve or rather grow shareholder value. Besides, one cannot rule out the possibility of a special dividend in FY 2026, similar to the one paid in FY 2025 at $3.25 per share, or $304.1 million. This serves as another potential upside for the shareholders. Innovation: A Key Differentiator The Florida-based company's key differentiator is its ability to innovate while maintaining its brand uniqueness and authenticity. The company has been consistently launching new flavors of LaCroix and has tapped into newer categories to capitalize on the changing trends in the beverage industry. However, the company's high-margins and returns have enticed the 'cola giants' as well as private labels to enter the sparkling water and healthier beverage market. As a result, FIZZ is now facing stiff competition for shelf space from large conglomerates such as PepsiCo and Coca Cola. Due to large-scale operations, these companies enjoy economies of scale and can easily manipulate prices to stifle competition. However, FIZZ has control over most of its production, distribution and marketing, which provides flexibility to quickly adapt to the evolving tastes of its customers, unlike the bigger players who have legacy production and distribution channels and complex cost structures. Further, the company has been prudent in allocating its resources towards innovation and marketing focused on its flagship product, unlike big conglomerates who despite having deep pockets are unable to focus on a particular niche. Marketing: The Game Changer FIZZ continues to develop healthier beverages that are tailored to dynamic consumer habits and is consistently investing in innovative marketing, packaging and consumer engagement. The company's primary focus market continues to be the US, while it is exploring possibilities of expansion in some international markets. As part of its marketing campaign, FIZZ recently launched a multi-city bus tour showcasing vibrant and captivating graphics of LaCroix's Sunshine flavor that rolled through Austin, Nashville, and Miami. Meanwhile, the company has also cemented strategic sports partnerships to further amplify LaCroix's visibility among sports-centric consumers. The company has signed a multi-year partnership with the Indiana Fever Women's National Basketball Association (WNBA) team. More recently, it has also become a sponsor for Dallas Wings WNBA team as part of its broader strategy to engage with sports fans and promote its diverse portfolio of beverages. Furthermore, National Beverage's partnership with the Florida Panthers has been fruitful in enhancing its brand awareness with the LaCroix logo being prominently displayed on their winning jerseys (Stanley Cup) for two consecutive years. Lastly, FIZZ has several ongoing promotional campaigns such as creative in-store BrandED tasting and MerchCMX representatives that help in optimizing shelf space, building displays, placing point-of-sale materials to promote sales. The Way Forward Building on its innovative flavors and unique packaging, National Beverage Corp has established itself as a leading healthy refreshment company over the last decade. However, the beverage industry is a cyclical one and is vulnerable to dynamic consumer needs. Thus, the ability to innovate, a flexible cost structure and a loyal customer base are important for a company's success. National Beverage has been on top of product innovation and marketing initiatives to maintain its brand identity. However, higher input prices and contraction of volumes due to rising competition could pressure the company's margins in the coming quarters. Hence, its innovation capabilities and execution on the newly launched products will be crucial in driving its growth in the competitive beverage market. Also, the company's cost management efforts and return on the ongoing marketing campaigns will be instrumental in maintaining its margins and in turn its financial advantage over its competitors.
