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Duvel Moortgat USA appointed "longtime company veteran" Jeff Krum as "president of Duvel Moortgat USA, Boulevard Brewing Company and Brewery Ommegang," co announced earlier this week. Jeff initially joined Boulevard in 1994 "serving as chief financial officer for 20 years before transitioning to vice president of corporate affairs for the combined companies in 2014." He replaces Simon Thorpe, who "will continue in an advisory capacity through the end of August." Simon served as Duvel USA's prexy since 2009; previously worked for InBev USA (prior to ABI) as global M&A veep and headed Labatt USA before then. Indeed, Simon played key role in Duvel's M&A strategy in US to this point, helping build top-10 US craft brewer with Boulevard, Firestone Walker and Ommegang, plus Belgian imports. As we noted in our INSIGHTS Express letter yesterday, Simon's departure follows in wake of top exec team abruptly leaving Ballast Point/Constellation. Simon not only brought M&A experience from his InBev role, but also a sharp focus on high end of the high end and margin implications of that niche. Indeed, among handful of lead voices in craftland, Simon among most articulate on wide range of topics. Back at our 2012 High End Conference, Simon spoke about importance of consumers' "luxury expectations," connecting high end craft beer to upscale coffee choices, smart phones and other products spreading beyond urban centers. At same mtg, he pointed out that gross profit earned by distribs on just 6 cases of Duvel required 25 cases of mainstream beer, and 16 cases of craft. Even then, highest end of craft was growing faster in scan data than big-volume craft brands, a trend consultant Bump Williams cited again in recent missives to clients. Simon on Resets, Valuation, Winners & Losers Last yr, Simon among first to note that "pivotal resets" coming at retail that would "force a number of brewery brands out of the equation," referring to brands without "viable rates of sale." That's happening and will continue with next reset, we keep hearing. Earlier this year, Simon elaborated to CBN that retailers leaning toward "more regional sets" with more emphasis on local, natch, but he also saw increasing simplification down the road and need for "enduring" brands as well. "Winners and losers" are emerging, Simon said, and ain't that the truth as scan data now showing month by month. Finally, Simon's M&A experience gave additional resonance to his blunt description, in wake of Lagunitas, Ballast Point and other craft deals, that "valuations are ridiculous" and "it's hard to see how they're ever worthwhile." That may have changed already, as MillerCoors prexy Gavin Hattersley told us recently that "valuations are coming down," noting each deal MC makes has to be a "win-win" since "paying too big a multiple makes it difficult to get a decent return." Change comes as Duvel Moortgat US biz strugglin' a bit. After fast start, DMUSA trends slowed markedly to volume up 4% and $$ up 6% thru Apr (see May 9 issue). In more recent scans, DMUSA volume actually down 1% and $$ up 1% YTD thru Aug 7. Boulevard brand family sales down 2-3% in foodstores thru Jul 10. Tho keep in mind, several of Boulevard's new mkts this yr aren't scan states. But Firestone, counted separately, still flyin', $$ up 53%, volume up 62% thru Aug 7. If included in total DMUSA biz, co growin' strong double-digits and would be 10th largest IRI-defined craft vendor, ahead of Deschutes.

Duvel USA Appoints Jeff Krum New Prexy; Simon Thorpe, Out by Sep, Saw Craft Biz Sharply

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