Table of Contents
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.
Boston Beer’s Hard Tea Surges While Truly Seltzer Struggles
With summer on the horizon, Boston Beer, the maker of Sam Adams, is witnessing a surge in popularity for its hard iced teas as consumers pivot away from traditional beer and explore new flavors.
Twisted Tea, the malt-based brand introduced by Boston Beer in 2001, is experiencing a rise in demand amidst the growth of hard tea. The Lemon and Blue Razz flavors of Twisted Tea Extreme were among the top three fastest-growing products by volume in the flavored malt beverage category in Q1, as CEO Michael Spillane revealed during an earnings call. These beverages boast an alcohol content of 8% by volume.
Another success story for Boston Beer is the vodka tea brand Sun Cruiser, which debuted last year and recently expanded its offerings with vodka lemonade. The company plans to increase the brand’s national distribution and enhance its marketing efforts this summer, according to Spillane.
Despite these positive developments in its RTD portfolio, Boston Beer faced challenges with declining sales of its Truly brand. The overall hard seltzer category experienced a 5% year-over-year decline in the first quarter of 2025. To revitalize Truly, the company is ramping up partnerships, including collaborations with Barstool Sports podcasts, in a bid to boost sales and enhance the brand’s cultural relevance. The introduction of Truly Unruly, featuring an 8% alcohol content, is expected to help turn the tide for the seltzer brand.
PepsiCo Introduces Lipton Fusions in the Lemonade Market
The beverage industry is currently witnessing a surge in popularity for iced tea and lemonade products. Lipton, a renowned tea brand, is seizing this opportunity with the launch of canned iced tea lemonades.
PepsiCo, the beverage giant, recently announced the debut of Lipton Fusions, offering canned lemonade iced tea in two flavors: Strawberry and Pineapple Mango.
“Lipton Iced Tea has always been associated with the carefree spirit of summer, and with the introduction of Lipton Fusions, everyone can now enjoy that ‘Lipton Taste, Summer Feeling’ year-round,” stated Zach Harris, Vice President and General Manager of Pepsi Lipton Partnership North America.
Through its partnership with Unilever, PepsiCo has been selling Lipton’s ready-to-drink teas since 1991. Unilever previously owned the Lipton brand before selling it to CVC Capital Partners in 2020. The joint venture also offers Pure Leaf tea products.
The global ready-to-drink tea category is estimated to be worth $114 billion and is projected to experience a 3.7% compound annual growth rate through 2029, according to Statista.
Experts attribute the category’s growth to consumers shifting away from sugary sodas and carbonated alcoholic beverages towards teas and refreshers, which are perceived as healthier and more premium alternatives. Lipton Fusions, for instance, contain 50% less sugar than regular soda.
Gorgie, a Women-Focused Energy Drink Brand, Secures $24.5 Million in Funding
Gorgie, a women-founded energy drink company, recently announced the completion of a $24.5 million funding round as it aims to expand its presence in the rapidly growing category.
Notable Capital and Coefficient Capital are among the investors in this funding round. Since its inception in 2023, Gorgie has raised a total of $37 million.
Founded by entrepreneur Michelle Cordeiro Grant, Gorgie’s energy drinks contain green tea caffeine, L-theanine, and vitamins B6 and B12. The brand is available in retailers such as Target and Whole Foods.
As part of its strategy, Gorgie collaborates with popular beauty influencers to launch exclusive flavors. Other brands targeting women in the energy drink category are also experiencing growth, with Alani Nu being acquired by Celsius for $1.8 billion earlier this year.
“GORGIE is leading the way in a category that is ripe for innovation,” stated Hans Tung, Managing Partner at Notable Capital. “It represents the future of energy drinks, focusing on wellness and ‘better for you’ products created by women, for everyone.”
Better-for-you energy drinks are driving significant growth in the category, with Gorgie emphasizing that its products are free from aspartame, sucralose, or erythritol. Keurig Dr Pepper reported an 11% increase in sales in its latest quarter, driven by the acquisition of sugar-free beverage brand Ghost for nearly $1 billion. Celsius, known for its exponential growth, expanded its portfolio this year with beverages and powders catering to hydration.