Space-Age Sommelier DRINKS Brings AI Drink Recommendations ... and Boosts Sales
While 44% of consumers currently believe AI can recommend a bottle of wine or liquor for personal enjoyment, the interest in AI-powered recommendations extends to social settings as well. Over 40% of consumers would trust AI-suggested drink pairings at a restaurant, 26% would let the technology determine a cocktail order at a bar and 39% would allow it to select drinks for a party or gathering. Meanwhile, only 30% of consumers find human expert advice 'very important' to alcohol purchases.
'Consumers are looking at how technology can make their lives easier, and in this case, the insights of an AI 'sommelier' can make alcohol less intimidating,' said Barry Collier, co-founder and head of R&D at DRINKS. 'For example, the 'rules of wine' might make someone hesitate to ask questions or try a new bottle. But AI that understands their individual preferences can help pick the 'right' drink for the occasion and give the buyer confidence that they'll enjoy their purchase.'
DRINKS' patented AI-powered wine recommendation system is a step toward transforming the way people discover, select and purchase their favorite bottles.
'Our patented PAIR (Predictive AI Retailing) technology uses AI to dissect every wine label to analyze color palettes, fonts, imagery and dozens more elements of design. We use these features to predict the emotional response it will spark (like romantic, adventurous, elegant or perhaps quirky),' said Collier. 'By tailoring recommendations around these feelings, we've driven a 50-plus-percent lift in click-through rates over traditional 'You may also like' recommendations. And when you pair these insights with a virtual sommelier that allows the customer to describe their taste preferences or desires in natural language, you unlock the true power of conversational commerce.'
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Yahoo
8 hours ago
- Yahoo
Will energy drinks entrance be positive kick for Liquid Death?
Liquid Death's energy drinks entry might be just what the doctor ordered to pump up sales in the otherwise saturated soft beverages category. When Liquid Death launched on the market in 2019, it was with a single category in canned water. A quirky punk-style design, a better-for-you focus and the catchy punchline to 'murder your thirst' were expected to pull in consumers. Canned water is still the group's core product but it has also ventured into flavoured sparkling waters and iced teas. And the business has now announced another expansion into energy drinks. The Sparkling Energy line will launch in the US in January. The drinks will not have any sugar or the alternative sucralose aspartame sweetener, along with an 'unextreme' level of caffeine, founder and CEO Mike Cessario said in a statement on LinkedIn last week. In March last year, the business raised $67m in an investment round, which it said valued the group at $1.4bn. Retail sales reached $263m in 2024. Speaking to Just Drinks later that year, then-CFO Karim Sadik-Khan said that outside the US, the business was present in the UK, Ireland, Germany and Australia. Early in 2025, however, the company's growth momentum appeared to be decelerating, with reports detailing Liquid Death's pause in its international operations. As the business focuses on its domestic market for now, a move into energy makes sense given it's an area the company says its customers are already playing in. As Cessario said in his statement: 'Energy drinks are the number one item purchased with Liquid Death in a basket.' The company's chief clearly sees an opportunity to lock in loyal consumers through one of their regular drinks purchases and perhaps gain some sales momentum. Nevertheless, in an already saturated market with heavy competition, can Liquid Death stand out from the dominant brands in the segment, and will the move give the business a sustainable boost long term? Expanding audience As Cessario said last week, the business sees its current range of products being bought most frequently alongside energy drinks, so a move into an area where they know customers are already playing makes sense. As well as attracting already loyal consumers, Brent Vrdoljak, the founder of FMCG marketing firm Mind Control, also sees energy as a way for Liquid Death to expand its audience to drinkers who may be aware of the brand but just haven't seen an appeal in its current line-up. 'This probably opens them up to a whole new audience set who like their brand, like what they do, but just wouldn't really drink regularly, like drink sparkling water on a regular occasion,' he explains. 'That ability to activate their audience better gives them an advantage to enter this market because they've already established such high awareness. And now it's probably a better opportunity to convert audiences.' This probably opens them up to a whole new audience set who like their brand, like what they do, but just wouldn't really drink regularly, like drink sparkling water on a regular occasion Brent Vrdoljak, founder, Mind Control Liquid Death's energy entrance marks another attempt by the group in expanding into multiple non-alcoholic drinks categories under a single brand. And it's a move that is quite unique within the non-alcoholic category, according to Richard Wyborn, a partner at UK-based food-and-drinks consultancy Food Strategy Associates. 'To what extent do you find brands that play across non-alcoholic beverage types? You don't see that very often,' he says. 'Coke's not playing with a single brand across multiple types. Monster's not playing outside of its space. Red Bull, likewise, they're staying in their lanes.' Liquid Death is working to prove it can play in multiple areas, with the support of one brand and a better-for you and more environmentally friendly USP. The mountain water product pushes itself as a product containing water 'from real American mountain ranges' in 'infinitely recyclable cans'. The group's soda-flavoured sparkling waters and iced teas, meanwhile, also highlight having much lower sugar than other competitors, but still having the flavour that consumers are looking for. Fighting competition While Liquid Death's one-brand approach for multiple drinks categories is distinctive compared to other players in soft drinks or energy, whether its prospective energy drink is unique enough to grab consumers in a competitive category is less clear. According to Vrdoljak, the group's brand positioning could do a lot to help carry the Sparkling Energy product. 'That type of positioning is kind of unique in energy. You've got Red Bull about extreme sports and, lots of different spaces there. But is anyone a bit satirical, playing on capitalism in the way that Liquid Death do? I don't think so. And the category is really controlled by most of the big [drinks] giants, right? So being independent and breaking through, it's interesting.' Liquid Death will certainly need a strong differentiator to make it stand out, especially given the energy category has had some brands playing there for several decades (e.g. Red Bull). 'The one observation and the one caveat is that whilst water is a tired space that is ripe for disruption, that's not the case in energy drinks,' explains Wyborn at Food Strategy Associates. 'Monster and Red Bull are absolute trains. Celsius is flying. Alani Nu is flying. You know, you've got a lot of brands that are really taking off… and therefore, the question is, what is Liquid Death bringing that is new to the party?' The one observation and the one caveat is that whilst water is a tired space that is ripe for disruption, that's not the case in energy drinks. Richard Wyborn, partner, Food Strategy Associates From the initial details provided by CEO Cessario, one of the key features of the Sparkling Energy products is a lower caffeine level (100mg), which he said was an 'unextreme' amount and 'equal to a cup of coffee'. The energy line also won't contain any sugar or aspartame sweetener, nor artificial colours or dyes, but will contain vitamins B and C, L-Theanine and magnesium. It positions the Sparkling Energy drinks in the better-for-you segment of energy, where the likes of Celsius' Alani Nu and Keurig Dr Pepper's Ghost also sit. When it comes to the liquid itself, Wyborn says it is 'undifferentiated' from other better-for-you players already in energy. The 'unextreme' caffeine level is not exactly novel, he argues, with a 250ml can of Red Bull containing 80mg. He also points out that while the business may be looking to offer a healthier proposition within energy and a more moderate caffeine level, it might not be enough to grasp consumers when the category in the US is seeing levels of caffeine 'pushing higher and higher and higher'. Ivan Izus Torossian, a consulting director at Just Drink's parent company GlobalData, also notes the group's energy product is 'a smart move', but he admits the business may need to eventually feed that demand for a greater buzz. 'I feel at some point, very soon people will be asking if you want to convert people from Monster or from Red Bull to Liquid Death, they will need to have a higher caffeine option, in my opinion. That will happen sooner rather than later,' he says. Global opportunity In comparison to its other drinks categories, 'energy is a different sort of beast', says Vrdoljak at Mind Control. 'If you look at more global markets, I think it's probably a more likely winner for them given the consumption behaviour and growth in those segments. I think on that lens, it makes sense.' While the group's focus for now is on the US, a shift into energy could provide Liquid Death with a new way back into international markets, according to some. For Vrdoljak, the move into energy won't have much impact on the group's overall brand positioning because it is one that already has some global recognition. But the energy move itself, he says, could mean the brand performs better internationally. 'I don't think they'll change at all. I think they'll just keep hammering down, doing it the way they're doing it, because it seems to work,' he says. 'They have this platform, with a global social audience, it makes sense to me that they're trying to find products that are more globally appealing.' Energy could also be a slightly easier sell for Liquid Death globally than canned water, given consumers are more likely to pay slightly more for energy than water products, he explains. 'Price points are more acceptable where there's more margin in the category. Like canned water or even bottled water is in other markets, it's just not as established, so the price point plays so different," Vrdoljak says. "Whereas people are used to paying a premium for a can of energy drink, and that's why there's more margin in it. 'They could probably afford, better go-to-market plans. I think they'll be back in the UK. They took more of a soft exit, like 'we're pausing sales', so I'll be interested to see how the energy rollout goes in the US.' GlobalData's Torossian agrees with Vrdoljak, noting the launch 'could actually be their bridge to global markets'. Some issues the company faced in the UK, he explains, were retail and distribution hurdles, and a 'cultural disconnect' over the brand tone that didn't resonate in the same way as it did in the US. Another hurdle it faced was 'a can confusion', with the taller cans being seen by consumers more as 'craft beer or [a] prank product', which the company is less likely to experience with an energy drink, he says. 'It's always great, not just with this example, but in most industries or categories to make the most out of your current local market before expanding, unless you have distribution networks, which in this case, did not happen," Torossian added. Not everyone agrees that a move into energy makes it easier for a business to scale internationally. 'Everyone thinks it's super easy to grow international. It's not,' says Wyborn. 'There are a thousand energy drinks that have launched in the US and failed. Someone pops, but that doesn't mean that that pop is replicable internationally. Having said that, you've got Monster, which is one of the most phenomenal cases for possibly working. But, I mean, Monster did all of this 20 years ago. Energy didn't.' What about the core business? Liquid Death's move into energy can be seen as a positive expansion of the company's non-alcoholic beverages line-up, giving the group new avenues for customer onboarding in its home market. And, potentially, the chance to try again with more success in global markets down the line. As Torossian notes, the entry can be seen 'as a form of risk management' by 'diversifying beyond your current revenue stream… so it becomes less vulnerable to the market fluctuations'. But while diversification is healthy for drinks brands, some also wonder whether bringing in another product could divert the business away from its core product in canned waters. As Wyborn says, 'I guess a question for me is, to what extent the existing core product, the canned water, to what extent are they reaching headroom?' "Will energy drinks entrance be positive kick for Liquid Death?" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
a day ago
- Yahoo
Keurig Dr Pepper quarterly revenue beats expectations fueled by US demand
(Reuters) -Keurig Dr Pepper reported second-quarter slightly revenue above Wall Street expectations on Thursday, driven by strong demand for its energy drinks and soft beverages, especially in the U.S. WHY IT IS IMPORTANT The Snapple maker enjoyed resilient demand for its higher-priced ready-to-drink beverages, including Yoo-Hoo and Crush, and through the popularity of its majority-owned energy-drink maker, Ghost. The company's results mirror those of bigger rivals PepsiCo's and Coca-Cola's, both of which recently beat quarterly estimates on strong demand. KEY QUOTE "Though the back half will present new challenges, we are on track to deliver our 2025 outlook," said CEO Tim Cofer. MARKET REACTION Shares of Keurig Dr Pepper, which rose about 4% so far this year, were flat in premarket trading. CONTEXT Instability arising from U.S. President Donald Trump's fluctuating tariff policies and the resulting trade tensions has led to a decline in consumer spending. Keurig also faces a direct risk from tariffs on its business in Canada and Mexico, especially due to the Canadian boycott of U.S. products, and the impact of tariff-driven coffee prices. BY THE NUMBERS Net sales for the quarter rose 6.1% to $4.16 billion, compared with estimates of $4.14 billion, according to data compiled by LSEG. Keurig Dr Pepper posted an adjusted profit of 49 cents per share, in line with analysts' estimates. The Sun Drop maker's volumes grew 5% compared to a 1.8% rise a year ago, with Ghost contributing 4 percentage points to the volume growth. Net sales in the U.S. beverages segment rose 10.5% compared to a 3.3% rise in the year-ago quarter. The company continues to expect annual net sales to grow in the mid-single-digit range and adjusted profit to grow in the high-single digits. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Yahoo
Keurig Dr. Pepper earnings beat estimates as energy drinks shine, but coffee inflation lurks
Highly caffeinated energy drinks and a Gatorade rival helped Keurig Dr. Pepper (KDP) concoct a solid earnings report on Thursday. The maker of Ghost and C4 energy drinks, and Electrolit hydration products topped analyst estimates for sales and profit in the second quarter. Sales in its US beverages segment rose 10.5% from the prior year, with operating profits were up 8%. Profits for the segment were held back in part by inflationary pressures. The company's coffee business — which houses Keurig pods and brewers — missed analyst sales estimates as price increases were pushed through to help offset higher costs. Operating profit for the segment increased 2%. "Today's dynamic environment puts a premium on operational excellence, which we are demonstrating while pushing ahead on our multi-year strategic agenda. Though the back half will present new challenges, we are on track to deliver our 2025 outlook and are confident in the long-term value creation ahead," Keurig Dr. Pepper CEO Tim Cofer said in a statement on the earnings release. Investors are paying extra attention to KDP's coffee business, given its exposure to geopolitical tensions. President Trump has announced plans to levy a 50% tariff on all goods from Brazil. The country is the world's largest coffee producer and the source of about 30% of US coffee imports. That threatens to add more fuel to the already runaway train that coffee prices have become. Roasted coffee prices surged 12.7% in June compared to a year earlier, according to data from the Bureau of Labor Statistics. Instant coffee saw a 16.3% increase. The retail price for a pound of ground coffee last month was $8.13, up about $1 since January. Meanwhile, tariffs on China raise production costs for hardware such as Keurig coffee machines, analysts warn. The economic noise has weighed on KDP's stock. Shares are up 4.3% year to date, lagging the S&P 500's (^GSPC) 8.1% gain. Some on the Street think the economic factors are well understood on KDP and that investors under-appreciate top line potential. "Longer-term, we see potential earnings upside from buybacks, possible further M&A, and look forward to seeing how the firm creates value through GHOST and Bloom, as well as through partnerships with C4, La Colombe, and Electrolit," EvercoreISI analyst Robert Ottenstein said. Earnings analysis: Beats, mostly Net sales: +7.2% year over year to $4.16 billion vs. estimate of $4.13 billion US refreshment beverages segment sales: +10.5% to $2.7 billion vs. $2.66 billion estimate US coffee segment sales: -0.2% to $900 million vs. $920.3 million estimate Adjusted EPS: +11.1% year over year to $0.49 vs. estimate of $0.48 What else caught our attention: Full-year forward guidance Net sales: up mid-single-digits year over year (reiterated) Adjusted EPS: up high-single-digits (reiterated) Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
