CPG Week Podcast: Hemp Gets a Reprieve, Kodiak Climbs and Faith-Fueled Energy Drinks

Episode 186

Hosted by:

Aug. 6, 2026 at 10:30 am

In this episode:

This week on the podcast, Nosh managing editor Monica Watrous and senior reporter Brad Avery break down a possible reprieve for hemp beverage makers, a high-profile sports drink acquisition backed by NBA star Victor Wembanyama, Kodiak's remarkable growth story under private equity ownership and the emerging wave of Christian-themed energy drink brands betting that faith can help carve out a niche in the increasingly crowded functional beverage market.

Show Highlights:

0:20 - Hemp beverages may have earned a temporary reprieve from upcoming federal restrictions after the U.S. Senate passed a continuing budget resolution over the weekend that extends the deadline until December 11.

2:20 - Hydration sports drink Barcode has been acquired by Axum Capital Partners, in partnership with investor and NBA star Victor Wembanyama.

5:30 - Kodiak has emerged as one of the fastest-growing brands in center store, more than doubling its business since private equity firm L Catterton acquired a majority stake in 2021.

7:30 - There’s been an emergence of Christian-themed energy drink startups that are putting their faith front and center. Brands like Agape Energy, 4GVN and Praise Energy have all sought to use their religious faith as the basis for their businesses.

Episode Transcript

Note: Transcripts are automatically generated and may contain inaccuracies and spelling errors.

[00:00:05] Monica Watrous: Welcome to the CPG Week podcast by BevNET and Nosh. I'm Monica Watrous, here with my co-host, Brad Avery. If you're enjoying the show, please subscribe on your listening platform of choice. Here is the latest in food and beverage industry news. Hemp beverages may have earned a temporary reprieve from upcoming federal restrictions after the U.S. Senate passed a continuing budget resolution over the weekend that extends the deadline until December 11th. The provision attached to the draft resolution, expected to go to a vote this week, would delay hemp prohibition by 30 days from its original November 12th deadline. Synthetic cannabinoids that aren't naturally occurring in cannabis will still be banned in November. Should it pass in the Senate, the resolution would still need approval from the House of Representatives and then the president. Industry advocates celebrated the news over the weekend as a signal that lobbying efforts were producing results and as a sign that lawmakers see a path towards codifying a permanent and comprehensive regulatory structure for legal THC beverages, if not all hemp products. The US Hemp Roundtable stated in a press release, quote, this action provides Congress with additional time to develop a thoughtful long-term approach to hemp policy, rather than allowing a sweeping ban to take effect without fully considering its impact on American agriculture, small businesses, and consumers. The budding industry has been under pressure since new legislation passed in late 2025 that would undo portions of the 2018 Farm Bill, which allowed for hemp-derived THC beverages to legally enter the market. In the meantime, multiple bills backed by various interest groups have circulated through Congress, each proposing different regulatory and taxation schemes for legal hemp products. As debate continues on Capitol Hill, hemp beverage makers have sought to both seize the moment and prepare for the future. Consumer demand for infused drinks remains high. The category grew 133% year over year between 2024 and 2025, according to a recent report by the Hemp Beverage Alliance. We will continue to follow developments on BevNET.com.

[00:02:19] Brad Avery: Hydration sports drink brand Barcode has been acquired by Axum Capital Partners in partnership with investor and NBA star Victor Wembanyama. The controlling stake in Barcode is Axum Capital's first investment into the brand, and the deal is expected to close in the third quarter this year. Charlotte, North Carolina-based Axum recently became a strategic investor in Kevin Hart-backed protein shake and supplement brand VitaHustle after closing a $300 million fund in September. And Wembanyama first became a Barcode investor in July 2023, soon after being drafted by the San Antonio Spurs as one of the most hotly anticipated rookies in recent memory. Barcode was founded in 2021 by a former New York Knicks trainer, and after sponsoring the Brooklyn Nets in 2023, the brand signed deals with the San Antonio Spurs and Miami Heat before the 2024-2025 season. However, the brand has been burning capital for too long, according to several sources, and seem to be disappearing from some shelves in retailers like HEB and Walmart. The brand also stopped posting on its Instagram feed in early December, and all of its products are currently unavailable on Amazon. So we haven't heard the exact nature of this deal, but it does seem to be potentially a rescue for a otherwise distressed sports drink brand.

[00:03:45] Monica Watrous: And this is happening against a backdrop of a lot of developments in the sports hydration category that we've been covering on BevNET lately.

[00:03:53] Brad Avery: Absolutely. The category is in a really unique place at the moment because it's been able to grow and expand with new brands coming in. When you look at say Electrolyte, the Mexican enhanced hydration formula brand that has continued to grow enormously and becoming a strong number three player behind Coke and Pepsi in this space. But we've also seen Prime jump to a explosive opening and then start coming down cratering. And there's various reasons behind why some of these brands are able to have a quick early success and then come down. But I do think that we're seeing an opening up of white space and opportunity in hydration in part because the category has just expanded beyond being sports drinks and is really embracing this turn as an all around hydration need. You can look at smaller startups like Leisure Project that have positioned themselves as hydration for the person sitting down like we are right now recording a podcast. It's a wider need state. And I do think this is an exciting category. I think Barcode is a brand that still has potential if leadership with Axum can turn it around. And I think that there's just some individual cases where like Prime, you have a lot going on behind the scenes that is less about the category, more about the company.

[00:05:27] Monica Watrous: Well, of course, insiders can read more about that deal on BevNET.com. Kodiak has emerged as one of the fastest growing brands in center store, more than doubling its business since private equity firm Elkaterton acquired a majority stake in 2021. Under CEO Val Oswalt, who joined in 2022, The protein focused brand has grown retail sales from $216 million in 2020 to $580 million by the end of 2025, while increasing household penetration by more than 75%. Once concentrated in three breakfast categories, Kodiak now competes across seven with frozen breakfast, snack bars, granola, baking mixes, and overnight oats, complementing its legacy pancake mix business. The expansion has helped the company take share from entrenched competitors, including Eggo, Quaker, and Bisquick, while its pancake mixes now lead the category with a 21% market share. Executives credit the growth to a combination of disciplined innovation, strong product quality, and Elle Catterton's brand building approach. The investment firm has doubled Kodiak's headcount, expanded its research and development capabilities, and provided access to consumer insights and operational expertise across its portfolio, while allowing management to retain control of the business. Kodiak has also increased its marketing investments, including athlete partnerships with Joe Burrow and my guy, Travis Kelsey, and a sponsorship of U.S. Ski and Snowboard, with athlete feedback even influencing new product development. Despite the added resources, both Oswalt and Elkaterton managing partner, Andrew Taub, argue the company's success ultimately comes down to consistently delivering products consumers want, allowing Kodiak to grow both its core business and new innovations simultaneously. Our colleague Adrianne DeLuca had a great interview with Taub and Oswalt, and insiders can read all about that on Nosh.com.

[00:07:29] Brad Avery: And they say Jesus saves, but does he sell? Or rather, can he help you sell an energy drink brand? In the past two years, there has been an emergence of Christian-themed energy drink startups that are putting their faith front and center, and a couple of them are starting to gain some traction. I took a look at this phenomenon last week in a feature on Bethnet, where I featured brands like Agape Energy, Forgiven, Yahweh Energy and Airlion alongside Praise Hydration and its new Praise Energy line, a brand founded by popular Christian influencer Bryce Crawford. What all three of these brands have in common is a strong and in-your-face approach to putting religion on their product. I spoke with founder and CEO of Agape Energy, Tanner Maddox, who is a 24-year-old Villanova graduate who began his brand because he believed that there wasn't enough out there in the culture that was putting forth Christianity. Now, market research will show that there is a rising market for global religious and spiritual products. One study I saw said it's expected to grow at 11.2% CAGR between 2025 and 2033. However, when it comes to energy drinks, it's still a niche and it's a deep niche. But with Agape, the brand has over 200,000 followers on social media and is now rolling out into ShopRite stores in New York and New Jersey. Jim Dorey, the president and CEO of Insera Supermarkets, which owns and operates 30 of those stores, told me that he believes that there's a opportunity not just in the better for you energy market but in the fact that there's a melting pot and across the country. He said there's so many cultures and religions and people coming from everywhere. There's a large population of people so no matter what group you're going towards there's probably a lot of them. It's an addressable market. More interesting from the entrepreneurial side the founder of Forgiven Dave Wolf told me that he thinks this is a story about entrepreneurs asking themselves if you're going to spend your life building something why not build something that advances what he believes God has called on him to do.

[00:09:52] Monica Watrous: It's really fascinating to me and I can't say I've seen a lot of food or beverage products aligned with a specific religion. So the fact that there are three brands in this energy drink category that are aligned with Christianity is really interesting. I wonder why energy and why Christianity and how that need state and that market combine and meet in the middle.

[00:10:17] Brad Avery: Well, I counted five, although one of them seems like it's not really as strong at the moment, and several of them are still pretty small in niche. Don't be mistaken. I do believe some of the brands are making use of specific ingredients, but for the most part, these are following the trend of the better for you energy drink. you know, they're pretty comparable to Celsius or to Ghost or a lot of these other brands we've seen in recent years that are zero sugar, but still use alternative sweeteners. They're, you know, roughly 200 milligrams of caffeine a can. It varies by the brand, varies by the product, but Largely these are just on track with the energy category in some of the flavors are even just energy drink flavors. Forgiven in particular just launched an LTO rocket pop and they have a Shirley Temple so they are following all the flavor trends but they're also putting Bible verses front and center. Holy water that wasn't a Christian energy drink. No I don't think they were Christian. I don't think so. I mean they might be but I don't think the brand was intended to be religious. Yeah yeah I think you're right. Tanner Maddox from Agape he told me that he loves liquid death or that he admires what they do and liquid death is a brand that once gave away cans by buying consumers souls with a contract you know. When I talked to him at Summer Fancy Food Show in July, he told me that he may not be a liquid death consumer himself, but he recognizes that they turned heads. And he's saying that agape is able to turn heads. People would walk by their booth at the show, or they walk by on a store shelf, and they're like, what is this? Whether or not it personally resonates with them, it's still something that's able to grab attention. And that is a marker of a strong brand, for sure. Absolutely. It's not always a guarantee, but it's definitely what you need to get your foot in the door.

[00:12:17] Monica Watrous: Here are some other notable bits of news from the week. Beef tallow fried tortilla chip brand Vodka Chips has secured a $1.5 million funding round led by BAM Ventures. Australian beverage startup Noon is betting liquid breakfast can earn a spot in consumers routines. And finally, cheese manufacturer Sargento announced it has entered into a definitive agreement to acquire Dipp's, Spread's, and Quiche's producer, La Terafina. For these stories and more, become an insider at BevNET and Nosh. That wraps up this edition of CPG Week by Bevhna and Nosh. Thank you to our audio engineer, Joshua Pratt, our director is Mike Schneider, and our designer is Aaron Willette. If you enjoyed the podcast, please subscribe on your listening platform of choice, and we will see you next time.

About CPG Week

CPG Week is the podcast that explores the latest happenings in the consumer packaged goods industry. Join our seasoned reporting team as they dish out the week’s stories in quick, easy-to-digest episodes. Catch up on the top headlines of the week, dive into exclusive insights with the BevNET and Nosh teams, and set yourself up to make more informed business decisions. Tune in to stay up-to-date on the latest developments in the dynamic world of packaged food and beverage.

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