SAVE THE DATE!

Sierra Nevada shipped about 14.6 mil cases in 2022 (1.06 mil bbls), down 3.5%, Chief Commercial Officer Joe Whitney told CBN in wide-ranging conversation. That dip steepened in soft Dec when Sierra down 10%, with 2 fewer selling days. But for most of yr, Sierra only down a skosh. It was also down 1.4% in 2021. For 5 yrs, Sierra stayed between 1-1.1 mil bbls. That's better than a lot of larger craft brewers, but it's still not growth. Yet Sierra aims to grow in 2023, expecting to be up 4%, notes Joe. And Sierra still expects to double revs in 5 yrs, in part from its new Can Do facility, which will produce other suppliers' innovative products. Hazy Passed Pale; Closing in on 1/3 of Sierra Biz; Sierra Pale Ale Down 11% Hazy Little Thing passed Sierra Nevada Pale Ale in 2022 for first time, becoming Sierra's lead horse. Hazy Little Thing depletions up 3.5% in 2022, while Sierra Nevada Pale Ale down 11%. The 2 brands combined for over 60% of Sierra's volume, with Hazy Little Thing at a little less than 1/3.Hazy and Pale Top 2 Priorities; "Simple Plan" Those are Sierra's top 2 priorities for 2023, natch, and will get a ton of focus. Sierra Nevada really aiming for a "simple plan" in 2023 to achieve its results. Hazy Little Thing still has "distribution opportunities." What's more 67% of Hazy IPA drinkers haven't tried Hazy Little Thing in the last yr. It's by far the biggest hazy. Meanwhile, Pale Ale's double-digit decline in 2022 is "unconscionable" to Joe, as it's mostly related to "distribution loss" and its "rate of sale is not declining." That should not happen as Pale Ale is essentially an "annuity" and still 1 of top 5 craft beer brands, 40 years on. So Sierra has got to "hold" Pale in 2023 and beyond.Torpedo In Trouble? Down in Teens But Improved Lots Lately; Seasonals Soft Too Torpedo not much more than 1 mil cases anymore, following another decline in mid-to-high teens. But a couple of more promising patterns just recently. Torpedo trends improved markedly in Dec in contrast to rest of Sierra biz, which had rough Dec. Down just low singles, with new packaging, tho perhaps too early for that to be the reason. Also, Torpedo's 9.2% ABV Atomic line extension did well in just 19.2 oz package, but will expand into 6 and 12 packs in 2023 in a half dozen states. Seasonals had "rough year" and "didn't do as well as expected," but will change back to Octoberfest and Summerfest beers it abandoned just last yr.Bright Spots: Sunny Little Thing, Variety Pack, Hop Splash; Tea West DC'd; NA Coming Sunny Little Thing had a really good year and Little Things Variety Pack (Party Pack) also did well, with the 2 selling 650-700K mostly incremental cases. Sierra still sees tons of upside with its Hop Splash hop-flavored sparkling water, now natl and with another coupla flavors coming. In 2d qtr, Sierra will bring its NA beer. But another experiment, Tea West, was recently discontinued.Can Do Facility Is Coming in Q2; Will "Have Some Great Partnerships When It Opens" Recall, Sierra announced it is building 250-500K bbl facility both for innovation and to contract produce. Dubbed "Can Do," this facility will "be up and running in Q2," said Joe. And tho Sierra "hasn't signed anything," it will have "some great partnerships when it opens," he promised."Other Side of Revolution": Craft "Not So Rosy" But People "Will Come Back to Quality" A self-professed "fanboy" of craft, Joe also always an astute observer of the overall craft scene. "On the other side of the revolution, it's not so rosy," Joe began, speaking of "M&A confusion," "bankruptcy" and "bad PR." But the "foundation" of craft, which Joe characterized as "making the best beers in the history of the world," is still there. And "people will come back to quality" and they "always return to things of substance&hellip;. People love those beers" and craft will always be "part of the bev-alc landscape." May take 3-5 years to work through current circumstances, thought Joe.

Sierra Nevada Down 3.5% in 2022; Hazy Up 3.5%; Expects 4% Growth in 2023

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