“Four investor parties and their attorneys vied for the roles of lead plaintiff and lead counsel in Colorado Federal court” yesterday, wrote Law 360, in attempted class action suit against Molson Coors over “stock-drop”  following accounting errors. And 3 of 4 motions filed “included a request to consolidate known cases” as each also argued that they had largest financial interest in the suit. Yet MTA (Metropolitan Transportation Authority) funds claim a $3.16 mil loss. Others claimed losses that totaled less than $500K, reported Law 360.  Other attys represented Electrical Workers Pension Fund, Iron Workers Local 580 Joint Funds and other pension funds.

Separately, MC issued statement following AB’s legal response in Corngate suit: “We are very confident this routine motion will be denied, in part because an executive of Anheuser-Busch has openly admitted their campaign was designed to mislead the public. We are looking forward to making our case in court to stop Anheuser-Busch from confusing consumers by fearmongering over a common beer ingredient – one they actually use in a number of their own beers.”  Also re MC tweets on Miller Lite outperformance and AB ads as a “gift”: “Just because Anheuser-Busch’s efforts to mislead the American public haven’t yet paid off for them doesn’t make it right, and it doesn’t make it legal.”  Hearing on MC’s motion for preliminary injunction set for mid-May.

Mike’s Hard Lemonade co’s growth in grocery channel, where hard seltzers are most prevalent, is eye-popping to whole ’nother degree. Co accelerated to 72% volume gain, 69% $$ gain in grocery for latest 4 wks thru Apr 13. Snagged additional 0.9 share of beer volume and 1.2 share of $$ for period. Now at 2.2 share of total beer volume and 3 share of $$ in grocery.

White Claw sales more than tripling in grocery, accelerating for 4 wks, and make up over half of Mike’s grocery biz. Indeed, White Claw franchise has 1.7 share of beer $$ and 1.2 share of volume in grocery. It also has 3 of top-10 growth brands in grocery, including White Claw Assorted (+224%) sporting 2d largest volume gain among all beer brands, ahead of Modelo Especial (+13.5%) and only behind Mich Ultra (+10%). White Claw Black Cherry (+225%) and new White Claw Mango are #5 and #8 growth brands.  Mike’s $$ sales up 50% in Nielsen all outlet for 4 weeks and 44% yr-to-date.

Of the three megabrands duking it out in media-land (and court-see below), Miller Lite sales remain healthiest and improved in natl scan data this yr. In fact, Miller Lite eked out 0.1% volume gain for latest 4 wks thru Apr 13, as $$ grew 0.6% in Nielsen All Outlet data. Good enuf to gain 0.1 share of total beer volume for period. Volume now off just 0.4% and $$ up 0.3% YTD. Meanwhile, Bud Light softened; volume down 7.5%, $$ down 6.4% for 4 wks. And Coors Light cases down 5%, $$ down 4% for 4 wks; about the same as YTD trends. Is Miller Lite winning the media bash, or is this just continuation of trends prior to Corngate? Either way, total MC biz has shown little improvement. MC volume still down 3.1% for latest 4 wks vs -3.6% YTD. And AB slipped further, down 2.3% vs -1.9% YTD. 

 Constellation Brands shipments grew 2.2 mil bbls, 70% in CA last 5 yrs and gained 9.2 share to 22.9 to become #2 supplier, over 5 share ahead of MC.  AB dropped 1.48 mil bbls, 17%  and lost 7 share same period to 30.5.  MC lost 1.045 mil bbls, 20% and lost 4.9 share to 17.6.  So AB and MC went from combined 60 share to 48 share.   They each dropped 4-5% each of the last 4 yrs, while Constellation jumped 8-14% depending on the yr. For example, Constellation up a half mil bbls, 10% to 5.3 mil bbls last yr.

Meanwhile, Heineken USA also struggled in CA same period.  Dropped 417K bbls, 24% last 5 yrs and lost 2 share to 5.6.  That included 182K-bbl, 12% drop in 2018 alone.  Interestingly, All Others, mostly craft, gained 1.2 mil bbls and nearly 5 share over last 5 yrs.  But stalled in 2018.  All Others actually fell 0.3% last yr.  This follows  scan data and anecdotal reports that craft segment softened in its largest mkt, CA, last yr.

Look at San Francisco for window into how much CA craft scene has changed.  Total craft segment volume down 2.8% last yr in IRI multi-outlet + convenience, tho $$ up 1.8%.  Nine of top 10 craft brands in SF lost volume in 2018 and 6 of top 7 down double digits by volume, including Lagunitas IPA and Sierra Pale.  But Lagunitas total cases down 4%, Sierra down 5%. Firestone Walker and 21A each up high teens. 

Get more info on the fast-moving craft platform that just brought on another well-known industry leader, straight from the horse’s mouth by joining us for the Beer Insights Spring Conference, May 15-16 in Chicago. CANarchy prexy Matt Fraser will discuss CANarchy’s rapid recent growth, collective strategy, the hiring of Tony Short, its latest acquisitions, hard seltzer launches and more in wide-ranging interview with Craft Brew News senior editor, David Steinman. Plenty more insights to gain from other up-and-coming industry voices and longtime observers alike. Don’t miss this exclusive oppy to learn from top-notch content and connect with top industry execs. Check out our full line-up of speakers and register today. Discounted room rates at the Ritz-Carlton Chicago available thru Wednesday, April 24^th.

Underscoring the close ties between Kraft Heinz and Anheuser Busch InBev (they each have some of the same large shareholders), troubled Kraft Heinz just named ABI’s ex-chief marketing officer Miguel Patricio as its new ceo.  Miguel was ABI’s cmo from 2012 until last yr.   Current Kraft Heinz ceo Bernard Hees will step down on Jun 30 after 6 yrs.  Recall, in Feb Kraft Heinz wrote down its brands by $15 bil, cut its dividend and disclosed an SEC investigation. Stock subsequently tanked and is less than half peak value amidst critiques that Kraft Heinz’s cost-cutting too severe.  “I bring a very different profile,” Miguel told CNBC. “My profile can help the future. It’s not about liking what happened, it’s about understanding the future.  We need to lead, not follow.”  He told CNBC that his “focus will be on improving Kraft Heinz’s speed, organic growth, brand building and making the company more consumer focused,” wrote CNBC.  While some discuss potential brand divestitures, Miguel wouldn’t discuss that with Wall St Jnl, rather he “wanted to focus on improving the quality of the company’s products first.  ‘Some are a bit dusty and we have to rejuvenate them,’” he told the Jnl.

Total Wine has just a single store in New York.  It would like to open more, natch.  In 2017, state liquor board nixed its attempt to open 2d store on Long Island, about 30 miles from current location in Westbury, ruling proposed location too close, NY Post reports.  In Dec ’18, liquor board nixed Total’s attempt to open store in Westchester County.  Total’s appealing that decision and ramping up for May 10 hearing, Post notes.  Aligned against Total: New York State Liquor Store Assn and Metropolitan Package Store Assn, powerful groups that represent mom and pop liquor stores.  One source told the paper: “level and manner in which the opposition was activated” vs Total “unprecedented.”   Then again, Total rarely gives up, whether goal is expansion, changing price laws, residency requirements, etc.

You would never have known that beer category is struggling watching the NBA playoffs this past weekend.  Beer ads ubiquitous on those games.  They came in many different flavors including Bud Reserve (tho interestingly not Bud Light), Coors Light and Miller Lite, Modelo Especial and Corona, Heineken 0.0, and of course the Microsoft ad that features Carlsberg (seemingly in heavy rotation).  NBA ratings, recently on a roll, down so far this yr.  AB’s ad agency for Bud Light, Wieden & Kennedy, just won Ad Age’s agency of the year.  The mag cited Wieden’s Bud Light ads as “culture-leading work,” tho article focused far more on other Wieden campaigns and did not mention Bud Light’s accelerated declines in 2018. 

Somewhat unwieldy yet fast-growing amalgamation of craft brewing assets known as CANarchy on a roll so far in 2019 and shoring up its exec ranks too.   Indeed, CANarchy just hired ex-AB veep of wholesaler and biz development Tony Short to become its ceo, starting next week.  (Tony also served stint as prexy of distrib Major Brands.) “I always had an affinity” for craft, Tony told INSIGHTS.  He worked for AB for 24 yrs, served on board of Craft Brewers Alliance for about a decade and helped put Widmer and Redhook together to become CBA.  Tony is close to CANarchy part-owner (and former AB distrib) Keith Klopcic.  Tony said he will “help lead culture” and strategy, while prexy and chief oper officer Matt Fraser leads “day-to-day” as well as “operational” matters. “Tony’s pedigree is a perfect complement” to CANarchy team, Matt said in release. “Tony’s stewardship will allow us to accelerate CANarchy’s growth trajectory.” 

CANarchy’s size and strength in current scan data is somewhat surprising, especially considering how much tuffer craft space has generally gotten.  Its $$ sales are up 30.5% in IRI multi-outlet + convenience yr-to-date thru Mar 24.  It’s bigger than Stone, Firestone Walker and Bell’s in scan data, and also getting more $$ growth than any other craft brewer except Founder’s so far in 2019. Much of its strong growth driven by Cigar City Jai Alai IPA. It’s up 71% YTD. While Jai Alai about 37% of total CANarchy sales in IRI MULC, it’s 2/3 of growth. CANarchy is also fastest growing craft brewer among top 50 in IRI YTD, co sez in release.        

Recall, CANarchy is craft play of private equity firm Fireman Capital, which started with the purchase of Utah Brewers (Wassatch and Squatters).  What is now called CANarchy climbed nearly 400K bbls, from 44,000 bbls to 421,000 bbls between 2013 and 2018, thru combo of M&A and organic growth.  CANarchy is comprised of Utah Brewers, Oskar Blues, Cigar City, Perrin and the 2 it bought last yr, Deep Ellum and Three Weavers.  While CANarchy has “great team,” Tony coming in to “leverage” existing strengths and “take this to the next level.”  M&A is part of DNA and while seemingly nothing imminent, Tony did note “lots of interest in what we’re doing because of the success we are having as a platform.”  CANarchy chief oper officer Matt Fraser will be featured at our Beer INSIGHTS Spring Conference in a few weeks (see below for more details).

Combo of Easter timing and fewer sale days blunted control state spirits growth in Mar. Topline volume -3% for the month, control state assn NABCA reports.  And $$ sales dipped 0.6%.  But a dozen fewer selling days across states skewed numbers, NABCA notes.  So, after adjusting for fewer days, volume +1.2% and $$ +4%.  And while raw-data slowdown brought running 12-mo volume growth back below 3%, after selling day adjustment, control state volume still +3.2% for 12 mos, $$ +6.1%.  Meanwhile, IRI natl off-premise scans, showing more positive trend than Nielsen these days, reports 12-mo beer volume +0.1% for 52 wks thru Mar 24, $$ sales +2.3%.

Enjoy the holidays!