
Beer Marketer's Insights
Bleak Depletions Trends in Aug Darken Outlook Further: Wine Cases -16%, Spirits -11%, SipSource Sez
Not to be a broken record, but another major industry data source shared especially rough results for Aug this wk. Wine depletions (sale-to-retailers) declined a disastrous 16.3% for the mo, WSWA's SipSource shared. And spirits dropped double-digits, too, down 10.7%. Yikes. With these results, looks like beer STRs still likely outperforming traditional spirits, at least. But unclear extent to which competitive dynamics within wine & spirits distribution tier may be impacting these stats (i.e. lots of RTDs go thru beer distribs these days and shuttering of RNDC in CA led to departure of other brands to houses that may not report to SipSource).
Halo Effect? Pairs of AB, STZ Brand Extensions, Established Entries Lead YTD Growth Brands in NIQ
Might need to squint to see them sometimes amid generally cloudy industry trends, but the beer biz does have bright spots. And a bunch of 'em are relatively large established brands, often sitting right alongside new extensions. Pairs of large brands and new entries within the same brand family make up 6 of the top-10 growth brands by $$ in NIQ off-premise data yr-to-date thru Sep 20. All 3 pairs come from either AB or Constellation, which dominate top growth brands with 8 of the top 10 between them. Together, the 10 top growers picked up 1.8 share of industry $$ to 14.5 thru the first 9 mos or so of the yr.
With its core premise of an elevated non-alc beer experience so far looking to be on track, the Tom Holland-fronted Bero has moved into org-building mode, lately recruiting creative director, natl accts mgr and lotsa regional sales mgrs to support DSD network that stands at 170 houses now. With recent additions like Reyes in Florida, the only remaining voids remain in heartland states like Missouri and the Dakotas, reported CEO John Herman.
Coca-Cola's Powerade brand is trying again on its Power Water extension, this time with a more robust electrolyte payload that comes in at twice the level of PepsiCo's market-leading Propel, KO is saying. The zero-sugar line is relaunching in Mountain Berry Blast, Strawberry Kiwi, Tropical Pineapple and Watermelon flavors. After pandemic-era effort didn't fare well, revived brand contains 520 mg of sodium per 20-oz bottle vs Propel's 270 mg and 150 mg of potassium to Propel's 70 mg, per comparison offered on Power Water website. "50% more electrolytes," prominent black patch on label heralds. It's being offered in half-liter and 20-oz bottles. Sweetener is sucralose/ace-K combo. New line will edge into retail this month headed toward full national availability next year.
Is the window opening again for IPOs in CPG? Just after Black Rock Coffee Bar has headed to public markets, children's food/bev player Once Upon a Farm fronted by actress Jennifer Garner has made its move, in the process disclosing that its sales ignited at 68% clip to $110.6 mil for 6 mos ended Jun 30. Net loss widened to $28.5 mil from $4.2 mil a year earlier. Reuters had been among outlets to spot in Jun that Berkeley, Calif-based co was headed toward an initial offering. The co had been founded a decade ago by Cassandra Curtis and Ari Raz when Curtis desired better options for her daughter. A coupla years later they enlisted former Annie's CEO John Foraker to direct day-to-day as well as "Alias" star Garner, who issues steady stream of Instagram posts about her family farm in Locust Grove, Okla. Co claims to be sold in over 13K US retailers now. Product mix includes range of organic snacks, meals and bevs like Toddler Oat Milk Smoothie that employ organic fruits & veggies while eschewing fillers and gums. OUAF plays in same space as Little Spoon, whose entry into Target we profiled yesterday. With Goldman Sachs, JP Morgan, Bank of America and William Blair among underwriters, co will trade on NY Stock Exchange under OFRM symbol.
Lifeway Foods seems to have buried the hatchet with its longtime minority investor Danone, agreeing to governance changes in exchange for Paris-based CPG giant promising to stay its litigation vs kefir king and to not back a dissident slate led by alienated family members of CEO Julie Smolyansky.
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Add NY to the list of states where beer distribs are banding together to sell spirits more effectively. Lofted Spirits, parent co of Bardstown Bourbon and Green River Whiskey brands, announced a realignment of its NY distribution to be represented by the "newly formed New York Wine & Spirits Collective, a partnership of leading Molson Coors distributors that span the entire state, from Long Island to Buffalo." The collective includes Manhattan Beer & Bev, DeCrescente Distributing, McCraith Beverages, High Peaks Distributing, AL George and Wright Beverage Distributing. Bardstown was previously represented in NY by Empire Merchants and move takes place beginning this mo.
MRI-Simmons released its "State of the Hispanic American Consumer" report yesterday and it featured a buncha facts and figures relevant to the beer biz. Cautioning that "observers must be careful not to paint Hispanics with too broad a brush," the report digs into the discrete segments into which the younger-than-average demographic falls; notably, 35% of American Hispanics are age 18-34, compared to 22% of Non-Hispanics, while only 16% of American Hispanics are aged 55 or over, compared to 36% of Non-Hispanics. Tho not alc-specific, there's still a lot to parse here.
The beer category as a whole is struggling and it's not just 1-2 suppliers this yr, New Belgium ceo Shaun Belongie shared to open up co's natl distrib meeting yesterday in Fort Collins, CO. Each of the top 10 brewers by volume are down in scans for last 52 wks, he pointed out. That now includes Kirin-Lion (NBB, Bell's, Kirin, LightStrike) at #10, still rising in the ranks, ahead of FIFCO USA this yr. It's also the largest craft brewery in US scans. But while it's not down as much as some others, it's "feeling the same" challenges as the rest of the industry, Shaun acknowledged.