This week, we’re breaking down the latest shifts in food and beverage—starting with the future of kids’ drinks. Experts say water and milk should be the default, but does that leave room for innovation? Meanwhile, Ferrero just made a big move into protein snacks, and it’s no coincidence given the GLP-1 effect on consumer habits. And if you haven’t heard of Aji Amarillo yet, you’re about to—McCormick’s 2025 Flavor of the Year is already showing up everywhere.
And for the podcast of the week? Let’s just say Terry Crews drops a mindset shift worth stealing. Let’s get into it.
Water and Milk? That’s It? The Future of Kids’ Beverages Is Wide Open
Another day, another set of rules. Public health experts just put out new recommendations: kids under 18 should mostly drink water and plain milk. No flavored milk. No sugar-sweetened drinks. Juice? Limited. Even plant-based milks are getting side-eyed unless they’re fortified soy.
Sounds great on paper. But here’s the thing—kids (and parents) aren’t about to settle for a lifetime of just milk and water.
These guidelines come from heavy hitters like the American Academy of Pediatrics and the American Heart Association. And their concern is the explosion of new drink categories—flavored waters, functional juices, plant-based milks—that don’t fit neatly into past nutrition advice (I guess PRIME played a huge role in this). Instead of figuring out how to regulate them, they’re drawing a hard line: keep it simple, keep it sugar-free, keep it cow’s milk.
But this creates a massive gap in the kids’ beverage market. Parents aren’t just looking for “less bad” options—they want drinks that are actually good for their kids and something their kids will actually drink.
We’re already seeing brands like Plezi, Loom, and the new naturally flavored, zero-sugar milk brand Jubilee stepping up. But the opportunity is way bigger than just a handful of brands.
What Needs to Happen Next
1. Juice Needs a Smarter Playbook
Kids love juice. Parents love juice. The new guidelines…not so much. Juice is now on a strict ounce-by-ounce recommendation based on age.
But here’s where things get interesting: packaging innovation could turn this into a win. Right now, most juice options go from tiny 4 oz kids’ boxes to oversized 16 oz bottles—there’s no in-between. Where’s the 8 oz juice that actually aligns with the guidelines? What about juice blends with fiber to slow sugar absorption? There’s a way to rethink juice without throwing it out completely.
2. Plant-Based Milks Need to Step Up
Plant-based milks are the biggest losers in this report.
The panel basically said, unless it’s fortified soy, it’s not a real alternative.
For brands in this space, that’s a wake-up call. Parents want actual nutritional value. So either reformulate to hit the right nutrient levels or double down on making the case for why your product deserves a spot in the lunchbox.
3. The Next-Gen Kids’ Beverage
Here’s the real opportunity: creating new drinks that actually solve the problem.
Parents don’t want a milk-and-water-only world. They want fun, functional drinks without the sugar overload. Electrolyte blends made for kids? Nutrient-dense flavored milks that actually stack up to dairy? Functional hydration that’s more than just watered-down juice?
This isn’t going to change overnight, of course. Kids will still want more than water. Parents will still want better choices. The brands that figure out how to balance both will own the next wave of kids’ beverages.
Ferrero’s Power Move: Why the Snack Giant Just Bought Power Crunch
The company best known for Nutella, Ferrero Rocher, and Tic Tacs has acquired Power Crunch, a brand specializing in protein-packed wafer bars and crisps. And if you’ve been watching the snack industry lately, this move makes total sense.
If you’ve been anywhere near the food industry in the past year, you already know: GLP-1 drugs (like Ozempic and Wegovy) are changing consumer eating habits. Appetite suppression means less mindless snacking, and when people do reach for something, they want it to count: high-protein, high-fiber, and other functional ingredients.
That’s why we’re seeing a wave of acquisitions in the better-for-you snacking space. Big players can’t afford to wait and see how consumer behavior evolves; they have to act now.
The protein bar category is crowded, but Power Crunch stands out for one simple reason: form factor. Most protein bars are dense, chewy, and honestly, a bit of a workout to eat. Power Crunch flips the script with its wafer-based structure, giving it a light, crispy feel that’s more snackable than the typical protein brick.
And for Ferrero, that format differentiation is key. The company has spent decades perfecting indulgent, layered snacks (hello, Kinder Bueno), and Power Crunch’s wafer structure fits right into that playbook.
Now imagine the possibilities: a protein-packed Kinder Bueno? A Nutella-inspired Power Crunch bar? Ferrero has the branding firepower and R&D expertise to take this acquisition way beyond the existing product line.
Aji Amarillo Is Everywhere—And It’s About Time
McCormick just named Aji Amarillo their 2025 Flavor of the Year, betting that this bright, fruity, and moderately spicy pepper is about to take over menus and grocery shelves.
If you’re not familiar, Aji Amarillo is a staple in Peruvian cuisine, with a heat level sitting between jalapeño and cayenne (30,000–50,000 Scoville). But what really makes it stand out is the flavor—think mango and passion fruit with a slow-building burn. It’s already a go-to for sauces, ceviches, and salsas, and now it’s creeping into snacks, seasonings, and even beverages.
McCormick is leaning in with an Aji Amarillo seasoning blend, but they’re not alone. Datassential predicts this pepper will grow 59% on U.S. menus over the next four years. And it makes sense—spicy foods are bigger than ever, especially with Gen Z leading the charge.
If you’ve been in the hot sauce world (like I have), you know heat trends don’t just happen. Back when I was running my own hot sauce business, growing everything from Chocolate Ghost Peppers to Carolina Reapers, I saw firsthand how a single ingredient can explode in popularity once it gets the right exposure. First, it was Sriracha. Then ghost peppers. Now? Aji Amarillo might be next.
Podcast of the Week: 3 Questions That Determine Who You Really Are by Mel Robbins
This episode really makes you pause and reflect. Mel Robbins lays out three questions that cut straight to who you are, how you make decisions, and what really matters in your relationships.
The part that stuck with me most was the first question with Terry Crews. He walked away from an NFL career, moved to LA with his family to pursue his dream, and took whatever jobs he could while working on it—janitor, security guard, you name it. But he had one rule: If I were getting paid a million dollars to do this, how would I show up? That mindset shift changed everything for him.
Jeff Bezos’ regret minimization framework also hit differently this time. I’ve heard it before, but in the context of this episode, it really clicked.
And then there’s Viola Davis on relationships—unexpected, but completely on point. I’ve been leaning into a similar approach the last couple of years, but I don’t think I would have articulated it the way she did.
If you’re figuring out what’s next or just want a fresh perspective, this episode is worth your time.
That’s it for this week
The food and beverage world isn’t slowing down, and neither should we. Innovation moves fast, but the real game-changers are the ones who see the shifts before they happen.
Got thoughts? Questions? Just hit reply—I’d love to hear what’s on your mind.
And if you’re looking for the right co-manufacturer or supplier to bring your next big idea to life, Chapter Foods has got you covered. We connect brands with vetted partners who can deliver on quality, efficiency, and innovation. Let’s build something great—reach out anytime.
Until next time, stay sharp and keep looking ahead.
Can Koyuncu – Co-Founder & CMO