Digimarc Corporation and BERO Brewing have announced a partnership that will launch a fraud‑resistant loyalty program for BERO’s premium non‑alcoholic beer line. The program will embed Digimarc’s digital watermarking technology into each bottle, allowing the brand to track purchases, verify authenticity, and deliver personalized rewards across physical and digital channels.
Digimarc’s financial performance in the third quarter of 2025 underscored the urgency of new revenue streams. Revenue fell to $7.6 million, a 19% decline from $9.4 million in the same period a year earlier, while annual recurring revenue dropped to $15.8 million from $18.7 million. The company posted a net loss of $8.2 million, an improvement from the $10.8 million loss in Q3 2024 but still indicative of ongoing profitability challenges. These figures highlight the pressure on Digimarc to diversify beyond its traditional banking and government customers.
BERO Brewing, founded in 2024 and co‑founded by actor Tom Holland, operates as a private premium non‑alcoholic beer brand. The company has quickly positioned itself in a rapidly growing segment of the beverage market, but its sales volume and distribution reach remain modest compared to established CPG players. The partnership gives BERO access to a proven authentication platform that can enhance brand trust and create a new customer engagement channel.
The alliance fits into Digimarc’s broader strategy to broaden its authentication portfolio into consumer packaged goods. By embedding watermarks into BERO’s products, Digimarc can generate recurring revenue from licensing and service fees while demonstrating the versatility of its technology beyond financial institutions. The partnership also signals to investors that Digimarc is actively pursuing new markets to offset the revenue decline caused by contract expirations in its core segments.
Investors have expressed caution about Digimarc’s continued revenue contraction and net losses, but the partnership is viewed as a potential catalyst for future growth. The move into the CPG space offers a new customer base and a different revenue model that could help stabilize the company’s financial trajectory, even as it navigates the headwinds of a shrinking core customer base.
The launch of a first‑of‑its‑kind loyalty program represents a significant operational milestone for both companies. While Digimarc’s financials remain under pressure, the partnership provides a tangible path to diversify revenue, strengthen brand protection capabilities, and position the company for long‑term growth in a high‑growth consumer market.
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