With 11 new SKUs that have entered the alc soda segment (and counting), it’s “our job to stay in front of the curve” and “bring innovation,” said Small Town prexy Greig DeBow at Pabst mtg last week. Small Town still has “dominant” 46% share of alc sodas, despite changing landscape, he pointed out. But it also has “solid innovation platform to move this needle forward” with 10.7% root beer variant, Vanilla Cream ale and Variety pk comin’ later this yr. And Small Town has “several really cool innovation platforms” coming in 2017, he assured, tho not ready to share quite yet. “We’ve got to innovate, we’ve got to come to market quickly and we’ve got to execute.” Greig’s main asks of distribs: increase distribution, have in-store presence “with the look of a leader,” and “aggressively invest joint marketing dollars to grow the brand.” “Let’s keep the ride alive!” Asked separately about how Pabst and co expect to match gargantuan launch of Not Your Father’s Root Beer, Pabst ceo Eugene Kaspher told INSIGHTS that he expects new varieties to be “kicking a--” while competitors brands already will be “coming off the shelf” by end of the yr. Admittedly NYFRB “lost the display momentum” in the off-season but now that “we have supply,” Eugene is confident that it’ll be successful. Then too, “[brand] awareness is still under 2%” since this brand has “much wider age group” than typically perceived. Goal is to have “a slow build” from here, he said, referencing steady growth of Mike’s Hard franchise over the yrs. They were a “first mover” with an “idea that’s theirs and they own it.” And that’s how he views Not Your Father’s. All in, it’s “really about growing the beer category” and “ending up with a disproportionate share of that growth.” Pabst “Moving Immediately to Rectify” NYFRB 6pk Can Inventory Issues Amidst rapid rise of Not Your Father’s Root Beer, Pabst chief sales officer Bruce Meunter admitted to “making mistakes” along the way, referencing what Eugene said earlier in the program. Specifically, he addressed issues with inventory of NYFRB 6 pack cans. “I know many of you are still with inventory,” but “apologizing doesn’t make the problem go away.” So “we’re moving immediately to rectify and remove and rebalance the proper level of inventories,” he assured.

News broke late last week that AB will offer retailers 12-pack pricing at $13.20 per case of Bud/Bud Light in Calif. That’s down from discounted price of $15 (front line $18.20), and lasts for at least two 2-week periods surrounding each of Memorial Day and 4th of July. That low price will enable AB to get “buy 2 get 1 free” ads in Ralphs, Staters and other big chains. This price point lower than in many yrs, sez source. Current price-to-consumer (PTC) is $9.99, notes AB sell-sheet to retailer that INSIGHTS saw. But this price 34% below that, AB adds. That’s $19.80 for three-12s as sell sheet notes or 55 cents per can. Compare to $21.45 price for 36-packs now. Under this scenario, consumer could buy two 12-packs for $9.99 each and get a 3d free, while retailers would still make a small profit (1%). That would be six 6 packs at $3.33 each. Many indy retailers may just elect to sell a 12-pack for $7.99 and make a little extra. Even that would be about the same for a case of Bud/Bud Light as everyday retail pricing for a sixpack of Ballast Point Sculpin. Yikes! Buy 2 get 1 free pricing will also be offered in key midwest mkts like Chi and Milwaukee over Memorial Day, INSIGHTS hears. In Chi, Jewel-Osco chain will reportedly offer $13.99 pricing to retailers on Bud/Bud Light and on hot Michelob Ultra brand. Recall, AB also offering “Buy 2 Get 1 Free” in Publix chain in Fla, as INSIGHTS Express first reported 2 weeks ago. It has since become clear that this program or some variant will be available in a number of large mkts. What’s AB up to here? It seems as if AB is attempting to give value, disrupt the marketplace, with low prices as part of its long-running effort to get back to share stabilization. But MillerCoors and perhaps other competitors likely to match this pricing. MC already did so in Fla. And if past is prologue, everyone will sell roughly same amount of beer they would have before, but make less money. In available data, AB is reducing its share losses so far this yr. But not by as much as earlier in yr and also less than it would like. Down 0.8 share of volume in Nielsen all outlet yr-to-date thru 4/9, including 0.9 for last 4 weeks. Lost 1 full share in Nielsen last yr. In GuestMetrics on-premise data, it is basically holding share, but total mkt down 3%. Could another objective be to put extra pressure on MillerCoors and therefore Molson Coors in advance of it becoming sole owner of MillerCoors? Recall, after deal to buy rest of MillerCoors, MC biz will become 70% of Molson Coors biz. And Molson Coors debt to EBITDA ratio will go from 2x to 5x. With much higher than its historic debt levels, extra pressure on MC profits from lower pricing could be acutely felt by Molson Coors. Of course, in Calif, key competitor is Constellaton. But will this pricing have any effect on Modelo Especial trends? “It’s not a pricing issue. It’s a Mexcian beer issue,” said a distrib who also noted that AB’s Estrella Jallisco launch off to fast start.

Issue earlier today included statement about MC’s above-premium biz for 6 mos that reflected an older time period not most recent 6 mos thru Mar. SAB Miller only commented on 12 month trends thru Mar 2016. During that period, MC’s above-premium STRs “were marginally up,” with both Blue Moon and Leinie “up low single digits for the full year.” MC will provide greater detail when it reports in a couple weeks.

MillerCoors continues to make several ad agency changes across its portfolio, this time officially replacing TBWA\Chiat\Day with 180LA for Miller Lite, reported Ad Age. While 180LA is still part of broader TBWA Worldwide, this marks the 5th ad agency for Miller Lite since 2012. So “TBWA as the holding company is still actively working on the Miller Lite business, but Chiat\Day is not,” MC spokesman Jonathan Stern explained. Recall, back in Feb, MC opened up oppy to work on Miller Lite to broader range of TBWA agencies just before its distrib meeting, when Chi Biz Journal suggested new work would appear “as a placeholder of sorts” before full campaign finalized (see Feb 26 issue). The Mar debut of 15-second Lite spots with slogan, “the original light beer: spelled different because it’s brewed different,” done by TBWA\Chiat\Day, seemed to fit that bill. Now, following this move, “the strategic, creative approach will be the same as it was with Chiat,” Jon said. “We will continue to show pride in our beer and its brewing credentials with the ‘Spelled Different, Brewed Different’ campaign,” he added, tho 180LA “expected to create a new campaign,” sez Ad Age. Finally, it was MC’s switch to Chiat\Day back in late 2014 that first re-focused Lite ads on quality with initial 15-second “placeholder” spot highlighting a recent GABF win. So about 18 months after MC brought back original white Lite packaging and 16 mos after move to Chiat\Day with quality-centric ads, Lite’s 12-mo trend (thru Mar 2016) got back to flat, as we reported this morn, as MC taps another agency to carry on same theme.

Volume declines for Sam Adams and Angry Orchard continued throughout 1st qtr for Boston Beer so total depletions down 5% for 13 wks thru Mar 26. Shipments down slightly steeper 6% to 834,000 bbls. That was “significantly below our expectations,” ceo Martin Roper said in release, so Boston lowered its full-yr depletions guidance to between -4% and +2%, from “mid-singles” increase. Twisted Tea and Coney Island still growing, but didn’t quite offset declines from bigger brand families. Boston “working hard to improve the Samuel Adams brand trends,” while it creates “programs to reverse the cider category decline,” as execs believe Angry Orchard softness “largely” due to total category difficulty, according to Martin. That could be result of drinkers “testing hard sodas and other new alternative beverage options.” Unsaid, but Boston clearly working in those alternative categories too. Further, volume hit came at same time as increased spending and lower capacity usage which “significantly impacted our financial results for the quarter.” Boston revs took 5% hit too to $202 mil, while both oper income cut almost in half. Gross margin down 1.5 pts to 48.5% compared 50% in 1st qtr 2015, and Boston lowered full-yr guidance there too: now at 51-53%. Means Boston now taking careful look at its spending plans “so that we direct funds to the highest growth initiatives,” Martin said.

US beer biz may have had pretty good qtr overall, but on-premise still remains a challenge. Beer biz down 3.1% for first 13 weeks of yr, said Bill Pecoriello of GuestMetrics. AB down 3.2%, so it basically held share in GM data. But MC down 5.4%. Premium lights still getting hurt in this channel. Down 6.7% for 13 weeks, while premium regular down 4.9%. Imports also soft overall, down 3%, but held share. And craft also down a bit, -0.8%, but gained share. Only premium plus in positive territory, up 1%, led by Mich Ultra (+6%). Wide Variation in Import Trends Imports had “significant variation between brands” as Mexican imports overall continued strong. Corona up 3.5%, Modelo Especial up 29% and total Constellation up 8.8% said GuestMetrics. But HUSA’s top 2 brands had tuff qtr in GM data. Heineken brand down 7% and Dos Equis down 4%. Guinness also down 7.2%. But Stella up 3.7%. Craft Down Slightly; Ballast Point Up 42%, Boston Beer Down 11% While craft off 0.8% overall, Blue Moon brands down 3% and Sam Adams down 13%, while Goose Island +18% and Ballast Point up 42% in GM data. Total Boston Beer down 11%, in GM data as Angry Orchard off 14%. Guest Metrics didn’t provide trends for other craft brands, but with segment down, many undoubtedly found growth a challenge. Then again, GM data doesn’t really capture what’s happening in tasting rooms.

MC took step on road back to volume growth with best shipments trend since JV formed in 2008. Indeed, shipments up 1% in Q1 2016, SABMiller reported this morn. Depletions down 1% selling day adjusted, tho it looks like with extra day, STRs were even. Shipments and depletions each running down 2% for 12 mos. Still, that’s improvement. SABMiller parsed the language more this qtr than usual, shading trends and time periods. For example, while Coors Light continued down low-single-digits for 12 mos, it “improved” in Q4. And for Lite, “growth momentum improved in the 2d half [6 mos thru Mar 2016] to end the full year in line with prior.” So Lite was even for 12 mos thru Mar 2016. In above premium, STRs “marginally up” for 12 mos; Henry’s Hard rollout in Q1 offset Fortune decline last yr. Redd’s up high singles for the yr, tho down in Q1 as it cycled “strong comparatives.” Blue Moon/Leinie’s up low singles for 12 mos. For 6 mos thru Mar 2016, above premium biz even, with Blue Moon/Leinie’s each up mid-singles. Got that? Net-net: MC still gaining share in premium light (4 qtrs in a row, it sez) and building above premium volume, but not gaining share of above premium. MC also losing share in below premium, with biz down mid-single-digits. Keystone Light and Mil’s Best down high-singles, High Life off mid-singles. While Heineken provided big upside surprise on volume yesterday, SABMiller announced “increased momentum in the second half,” again a more mixed bag across bevs and measures. Revs up solid 5% for 12 mos, volume +2%, lager +1% and soft drinks +6%. The shading: lager +3% in 2d half of Q4.

Cigar City brewmaster Wayne Wambles took issue with the way CBN characterized his comments at the recent Brewers Assn James Beard House event in NYC (our March 25 issue). These comments came about, he said, in the context of talking about the pending Anheuser Busch InBev deal to buy SABMiller. Following that, according to Wayne, some small brewers could be "potentially locked out" by "controversial policies" that "macro distributors have implemented as incentives in order to sell more macro products vs craft beers." (Editor's note: Perhaps Wayne was talking about issues small brewers raised with Justice Department and at Senate Hearing regarding AB's VAIP). It is some of those smaller brewers who might "get pushed to the wayside" that could potentially benefit, if there move to "abolish the 3-tier system," he had said. Not Cigar City. "I'm not naïve enough to think that we would be best served by being allowed to distribute our own beer," Wayne added, feeling that CBN "painted me in that way…. In no way," Wayne said, was he "insinuating" anything "negative" about Cigar City distribs. "I have great respect for what they do for us and I am grateful to have them as partners."  

Need to know how much share of US shipments craft has gained since 2005? Get it in the 2016 Craft Brew Guide. Wonder how top craft players have fared against smaller competitors? Find out in Craft Brew Guide. Want to know how craft performed at retail nationally and in over 10 key markets? How small suppliers took share of shipments in every region in the last 5 years? How the segment's landscape continues to morph due to mergers and acquisitions? Turn to Craft Brew Guide. Available later this month as a pdf and handy 100+-pg book, it's the only standalone publication to pair important data on the growing craft segment with the in-depth analysis you expect. Order your copy today.

Scaling up and shipping out at least in part due to partnership with Oskar Blues last year, Michigan's Perrin Brewing is prepping to double its output this year, owner Keith Klopcic told Grand Rapids Biz Journal. The co shipped about 14K bbls last year. Just about 1,000 of them were packaged, as Perrin started shipping cans just in 4th quarter. Three 150-bbl tanks arrive soon and 4 more are on order. That'll help it sell an estimated 27,500 bbls just in its home state in 2016. That's before counting additional volume from shipments to Colorado and Indiana (starting this month), and Ohio in May. But that'll be all for now, Keith said. "Once we open those, we'll pull the reins back and catch up to ourselves and figure out the next step," he told the paper.