SAVE THE DATE!

Cult craft lager Montucky Cold Snacks keeps on growin', finishing last yr with shipments up ~21% to just over 63K bbls, CEO and co-founder Chad Zeitner shared with CBN. It expanded distribution significantly of late, adding 7 states last yr with plans to launch another 4 in 2023, soon to bring footprint to 35 total. But after just over a decade in mkt, the Bozeman, Montana-based company continues to grow beyond what it ever initially envisioned. Recall, Chad and co-founder Jeremy Gregory decided to start a brewery in 2012, aiming to be the "PBR of Montana" with a charitable twist. (Co pledges to give 8% of profits back to local causes.) But the banks "literally laughed at us" when they asked for a loan, said Chad, so Montucky found a contract producer for less up-front capital and stayed contract-brewed ever since. Co's remained without an outpost of its own even as it's expanded across much of the country. But that could soon change, as Chad and Jeremy have a "passion project" in the works to open a hometown taproom.Just 4 SKUs; Cold Hard Seltzer Discontinued Cold Snacks are sold in just 4 packaged SKUs: 24oz singles, 16oz 6pks, 12oz 12pks and 12oz 30pks. And even tho the brand does about 30% of its biz on-prem, that's essentially all in cans as well, with kegs only available in CO. Montucky's Cold Hard Seltzer was recently discontinued, "hard to break through" swimming in a sea of seltzers, Chad acknowledged. But winding that down allows more focus on beer, he added, as Montucky is "staying the course" with no big innovation in 2023.16 Employees; "Doubling Down" on Resources Co mainly contracts with City Brewing, plus other partners depending on geography. But its lack of physical presence allows for lean operations: Montucky has 16 employees, along with a handful of shared sales reps in certain states. It plans to add 4-5 new hires this yr, including new director of chain sales coming aboard soon. And co's looking to "double down" on its resources in 2023, said Chad, still sitting on some "dry powder" from minority investors.Beginning to Fill Out East Coast Distribution Montucky's dist footprint stretches pretty much across the west coast (including AK and HI with Odom) as well as much of the middle of the country. Yet it only recently began adding east coast mkts. That includes NC starting this wk, MA and RI beginning March 3rd and AL launching later this yr with no date set yet. Those 4 states will round out its network in 2023, with no other expansions currently on the docket, Chad noted.Early distribution depended largely on indie craft houses. But many of those have since transitioned to bigger distribs as co's expanded its chain presence. Being a small team, they "rely a lot" on distributors to build the brand (along with an ardent consumer base). So while Montucky has no particular preference for AB or MC network, they want partners that understand the brand's ethos and are willing to invest behind it.Tight Margins, Price Hikes and Domestic Beer Competition Montucky operates on tight margins "across the board," so it was forced to take price last yr given its cost increases. But price hikes put it in line with premium lights, typically $6-$8 per 6pk depending on mkt. While Montucky considers itself craft given its humble roots, charitable/community-oriented efforts and small company culture, it's mainly competing against domestic light lagers, said Chad. And it's typically placed next to them on shelf, as opposed to in the craft aisle. A cold snack is "beer flavored beer" and they're "not trying to reinvent the wheel on that." But Montucky prides itself on playing in the "space between," he added.Bozeman Taproom "Passion Project" Shortly before the pandemic, Chad and Jeremy bought a 17K sq-ft warehouse in Bozeman in hopes of opening a hometown taproom. That became much harder once Covid hit, so they opted to lease it out instead. But they're still planning to open their first ever branded location - even if it's "slow rolling" with no firm timeline. It may feature a production component to help supply MT or surrounding states, Chad figures, tho the focus will be the taproom.

Montucky Cold Snacks Managed 21% Growth in 2022 Amid Expanded Distribution

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