SAVE THE DATE!

In its first year as an AB "megabrand," Kona Big Wave smashed "records in every region" and grew 100K bbls in 2023, AB's High End Prexy Andy Thomas declared at SAMCOM this week. That likely puts the brand around 330K bbls all channel, we estimate, as Big Wave eyes "bold ambition" to eventually "break the craft ceiling" of 1 mil bbls. Last yr Big Wave launched a revamped look and campaign to chart its course as an "aspirational lifestyle brand," betting on Kona's "potential to transcend its craft roots and compete against mass premium lagers." And "the results speak for themselves. We have momentum," said Andy. Big Wave finished the yr up 42% by volume in Circana MULC scan data, up ~56% in last 12 wks, he noted. It broke the 1-mil case mark in both the Midwest and West regions on the same day in 2023. Plus "most importantly, we led the way in the on-premise, closing in on a full share point" with 0.74 share in that channel during peak summer mos of July-Aug.Impressively, while Big Wave grew strong double-digits across all regions last yr, the Midwest is the brand's biggest region despite being one of the coldest parts of America. Yet it's "still a low awareness brand," Andy added, as a "significant portion of the population doesn't yet know" the brand. So AB will increase Kona's media investment by nearly 3x in 2024, taking brand's "Bring the Aloha" campaign on air for 10 months while tapping resort destinations for brand building (see below). Co will invest with "patience and discipline to grow the right way," doubling down on same goals as 1 yr ago: build awareness and drive trial.Consistency is Top Priority; Year 2 of "Bring the Aloha" Campaign Big Wave's #1 priority this yr is to consistently evoke "the Aloha Spirit in everything we do," Andy highlighted. "Bring the Aloha" first launched last May featuring new visual identity, pack design and a "powerful new equity platform." That campaign is driving "tangible impact," mktg veep Chris Jones added, with awareness, perception as a social brand and consideration "all up considerably." Tripling Big Wave's media investment will extend the campaign well beyond key summer season, complemented by a "dedicated grass roots plan" to "authentically embed Big Wave in surf, skate and water sport culture." Big Wave will continue to scale its experiential platform nationwide, notching collabs with partners "representing some of the most loved brands in our world.""Own Resort Markets"; Getaway Sweepstakes to Win Stay at New Kona Aloha Houses But a key strategic prong for Kona this yr is to "own resort markets," making Big Wave "synonymous with the places we go to disconnect and break from routine." Specifically, brand aims to be "ubiquitous in oceanfront, lake, and mountain resort towns," planning to "overinvest in these places to be omnipresent." AB will debut the first-ever "Kona Aloha Houses" in Park City and Key West, designed to embody the brand while offering consumers chances to win getaways. That includes national sweepstakes led by the off-premise all summer long, with chance at a week-long stay as well as "thousands of other travel related prizes." C-store shoppers can also get national gas rebates to fuel their weekend getaways.Cross-Merch Partnerships with Kettle Chips and King's Hawaiian Also on retail side, brand will debut new cross-merchandising partnership with Kettle Chips, a "beloved brand built by same founder who created Kona Big Wave." Those chips have "massive distribution" and pair "perfectly with Big Wave." And starting in Mar, Kona will renew its "successful partnership" with King's Hawaiian rolls, a top-selling food item in all of grocery for many months of the year, according to Chris. "As a challenger brand, nothing will dictate our success more than execution at the point of sale," he emphasized.

Kona Big Wave Grew 100K Bbls in 2023; 3x Media Investment in 2024 as Brand Looks to Build Awareness

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