Beer Marketer's Insights - FX Matt Has Minority Stake in Friday Beers; FX Matt & Brooklyn Formed JV with Tune THC & CBD Bevs; Utica Club Lite Return

As FX Matt bolsters its roster of RTD brands and continues to increase its contract production capabilities across bevs, it also partnered with upstart beer brand, Friday Beers, founded by LA-based media co Almost Friday Media that's got over 7 mil followers across platforms. Even with relatively small sales to start, Almost Friday Media background helped bolster Friday Beers Instagram page to over 2.4 mil followers to date with brand taglines like "They Just Hit Different" and "Commence Suckdown" clearly targeting younger LDA drinkers. FX Matt owns part of Friday Beers now, Fred told local radio show on WIBX in recent interview. Almost Friday still "control[s]" sales but FX Matt helps "guide it," not looking to roll it out "too quickly." From Being "Approached" by a Big Brewer to Moving on with FX Matt, Formulating with Utica Club Initially, Almost Friday was "approached" by an unnamed "big beer company" to make what's now Friday Beers, as Friday Beers founders tell the story in separate promo video. But there "became a misalignment" and "too much red tape" for what Almost Friday wanted to position as a "fast-growing startup comedy brand." Co found entrepreneur Will McDonough, who joined as a partner in Friday Beers, and brought in FX Matt prexy Fred Matt and Jay Harman of Cisco Brewers, and the product formed from there. Ultimately, co ended up formulating Friday Beers using FX Matt's Utica Club as its "north star," reducing the ABV to 4.2% and "tweaked" the flavor profile for "a little sweetness," said Fred in the video.FX Matt & Brooklyn Formed JV with Cannabis/Hemp Co, Created Tune THC and CBD Bevs FX Matt and its biz partner Brooklyn Brewery quietly invested in the cannabis and hemp bev biz too, Fred shared with WIBX. Cos formed JV with owner of Head and Heal cannabis to create THC and CBD bev brand called "Tune." Tune THC-infused seltzers come in 12oz slim cans with 10mg THC per can, available in black cherry, lemon & rose, and raspberry lime flavors, according to its website. But they're only available at NY state dispensaries, and there were only ~55 open at the time of Fred's radio interview with 125 expected to be open by end of year, he noted, emphasizing the importance of selling thru legal channels.Contract Brewing is 50% of FX Matt Biz; Beer is Just 62% of Production Mix; Making Long Drink & Lots More FX Matt's contract biz is now 50% of the total mix, Fred shared. Co's invested $56 mil in production capabilities over the last 4-5 yrs to further enable its growth in this arena. Long Drink and Trader Joes organic NA seltzers are among some of the more notable contract partner brands Fred listed. "The way the world's drinking" is "how the brewery looks" these days, said Fred. The company is in good position with "no debt" and broad range of products, equating the brewing campus to a smaller version of AB's St. Louis facility, akin to the centuries-old European breweries where they "don't just knock down and build," but "build on the same footprint" over generations.Utica Club is "Growing Like a Weed" in NY and Beyond; "Big Push"; Utica Club Lite Coming Next Yr At same time, Utica Club is "growing like a weed" across NY state and in "microburst areas" across the country like DC, CO and PA, Fred told WIBX radio. Utica Club is getting a "big push" as FX Matt will focus on the brand at GABF this yr with a "much bigger booth" and presence. Admittedly, "the margins are terrible," Fred quipped. But "if you have the hot hand, play the hot hand," then sell other things like Saranac/Flying Dog, soft drinks, McKenzie hard cider and RTDs "behind it, and that works." Next year, FX Matt will bring Utica Club Lite back to market by Mar, Fred shared.

FX Matt Has Minority Stake in Friday Beers; FX Matt & Brooklyn Formed JV with Tune THC & CBD Bevs; Utica Club Lite Return

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