Not necessarily game changers, but handful of developments at top craft companies all worth highlighting here. First, biggest US craft brewer Boston Beer officially announced debut of another non-beer product: Truly Spiked & Sparkling hits shelves today (see Mar 8 issue for early notes). Bottled 6-pks of the hard seltzer debuting in about 20 US mkts in 3 flavors (Colima Lime; Grapefruit & Pomelo; Pomegranate), all at 5% ABV, 100 calories and 2 grams of carbs. Those stats highlighted on packaging that emphasizes "TRULY" in brand name and shows photo-like images of fruit on white background. Clear bottles and clear liquid suggest it's got nothing to hide. Could be Boston Beer's pathway to overall growth about as clear: new brands including Truly, Sam Adams Nitro Project, bunch of new ciders, hard teas and hard sodas, will hopefully make up for challenges faced by existing, much larger core beer brands.

"Fat Tire Flowing" in Asheville right now, New Belgium announced today. It started shipping NC-brewed packages of its flagship brand while beginning to flavor-match pair of other brands, Ranger IPA and 1554 Black Lager. NBB plans to open doors to the Asheville brewery's tasting room in about a month.

Lagunitas Installing 2d Largest Sonoma County Solar Array at its Petaluma, CA brewery, the North Bay Biz Journal reported. It hired local Westcoast Solar Energy to install 6,000-panel array, by far the largest that co has dealt with. The installations will generate about 2.1 megawatts of solar power and cost about $5 mil.  

Beer fan walks into a bar, gets a notification on her phone alerting her that ordering a beer on tap there also means a $1 donation to a local charity, orders it. No joke, that's scenario that played out in bars across St Louis over the weekend as local brewer Schlafly launched its mobile app and TapTalker program. Partnering with tech co Juxtad, Schlafly installed the "beacon technology" in a little over 50 bars and restaurants for Friday's launch, working toward rolling out to about 200 more on-premise accounts in home St Louis, MO market in coming months.

But take a couple steps back: here's how it works. Juxtad's "beacons" communicate with the mobile devices of individuals who have asked to receive the messages. The TapTalker for Schlafly is a relatively small mechanism that screws on to taps between the faucet and the Schlafly handle, CEO James Pendegraft explained to Craft Brew News. It only adds about an inch and a half to the handle's height. The co requires a "triple opt-in" for the program to insure it's only talking to folks who want to listen: users must be in the bar, have downloaded the new Schlafly mobile app and also turned on notifications from the TapTalkers. So far, companies in Europe have used the Juxtad tech, but Schlafly debuted it in the US this weekend.

Initially, Schlafly's using the beacons to amplify a program it's run for years, donating $1 from every pint sold around this time to St Louis Earth Day. But Schlafly has "a lot of flexibility with what we can do" in terms of when, what and to whom it communicates via the TapTalker beacons, James told us. First it has 3 options for distance-from-beacon that the mobile device has to be before it gets a notification: "close" setting sends notifications to users within a "few feet of handles"; "near" sends to folks between 5-25 feet away; "far" to 25-50 feet. The co's so far very conscious of these settings, looking to "make sure the people are in the bar" when receiving notifications. But it also has flexibility in terms of day parts and days as well as the specific messaging sent to "Schlafly fans." For example, if a user's been in a bar "for a number of hours," Schlafly could send a "responsible use" message, James said, like "hey, be smart, don't drink and drive. Here's a link to Uber." The co's already got lots of ideas about other potential programs, including sharing videos or other info about specific brands. As always, users can turn off notifications and Schlafly doesn't see any info on specific users, only "in aggregate." Further, Juxtad handles maintenance of the technology, making it pretty low-impact for both Schlafly and retailers.

"Refocusing On Our Backyard": On-Premise Healthy, Chain Challenges Schlafly launches this program in its home market at what James believes is "the right moment for us." Overall output for the Saint Louis Brewery (Schlafly brand's company name) has stagnated for a few years due to capacity constraints at the brewery. Now, about a year after James took over as CEO, Schlafly's "been growing like gangbusters outside of a 50-mile radius," he told us, but is basically "flat and, in certain channels, declining" closer to home. It's seen "a lot of great growth in the on-premise" and general health in c-stores. But its biz in grocery was tough last year as James believes the co "lost on our feature and display activity" to growing number of smaller or newer brands in the market. This year it's "much better prepared" there, James reports, just as it's working through projects to improve production bottlenecks at its primary facility. It "just wrapped up Phase 1" of those plans, alleviating pressure on the packaging side, and is aiming to announce plans to boost brewing/fermentation capacity late this year. In the meantime, it's "really working on refocusing on our backyard in our home market," James said. Engaging local drinkers with "very relevant information" thru the new TapTalker program is clearly a piece of that work. And considering James believes "our biggest short-term and long-term challenge is staying relevant to our consumers," it could prove an important piece of that work too.  

Chicago's Lakeshore just added about 100K cases more of Bell's to its expanding portfolio of craft beers, starting today. And in Milwaukee, Beechwood bought around 50K cases of Bell's from Beer Capitol, started selling last Friday. (Note this article appeared in INSIGHTS Express earlier today.) Lakeshore will now reportedly sell over 300K cases on annual basis of Bell's, plus it has Founder's thruout Chicagoland and it's largest Goose Island distrib, in addition to many others. It has rapidly developed a competitive craft portfolio. Recall, Lakeshore sells AB throughout Chicagoland area, totaling about 23.5 mil cases, all in. Lakeshore was founded in Jan 2014, merging 5 separate distribs owned by City Bev and River North. It is a partnership between BDT Capital and Hand Family Cos, which bought its 30% stake from AB. It has aggressively acquired non-AB brands (especially craft) in its territory, including Founders from Glunz, Bell's and Sierra from L&V, Pabst, Bell's and more from Central Dist and now Bell's from Skokie Valley.

This acquisition will make Lakeshore one of larger Bell's distribs. Last week at its distributor convention, Bell's touted several of its leading distribs for their sales accomplishments. Its first distrib, Rave in Ann Arbor, is also its largest. Rave exceeded 750,000 cases last yr (close to 800K) with a stretch goal of 1 mil cases in 2016. Rave is craft-centric distrib and Bell's by far its largest brand. Bell's 2d largest distrib is consolidated MC house Alliance in Grand Rapids, which sold over 500,000 cases last yr. Those 2 distribs alone over ¼ of Bell's biz last yr. Three more distribs were honored for selling over 200K cases: Premium (another craft-centric distrib, but in OH), Paw Paw and Tryon. Sheehan Family Cos also reportedly sell several hundred thousand cases, including addition of Milwaukee, but that's between a number of different operations. So this transaction will make Lakeshore one of Bell's top 5 distribs on annualized basis. As is Sheehan Family Cos.  

After a more than 30-year hiatus, Narragansett Lager will once again be brewed in Rhode Island. 'Gansett should start brewing as summer turns to fall at new The Guild space in Pawtucket, RI (The Guild is recent rebrand of Isle Brewers Guild; see vol 6, no 91 from last year for more on that $15-mil project). Narragansett is the first "owner-partner" in the brewing cooperative outfitted in 130K sq-ft space and, come April, a 100-bbl brewhouse, Narragansett prexy Mark Hellendrung explained to Craft Brew News. He expects that brewery to produce up to about 15,000 bbls of the 100K Mark thinks the brand will "cruise past" in 2016. It grew about 10% to 86K bbls last year. North American Breweries "has been an awesome partner and will continue to be," Mark said, as it'll still produce most of Narragansett's beer. Mark's partnered with NAB basically since he started running the company almost 11 years ago. At that time, Narragansett sold just 5000 cases a year, Mark recalls. Now it's kicking off the year up over 20%, he told us, and ready to move back home.

Bringing the original 'Gansett Lager back to its "Neighbors" in New England has been a big part of the brand's revival. And early in 2016, it's driving the co's overall volume trend, up a bit faster, Mark said. But the brand's also been stepping into more craft-like territory. Indeed the "two biggest things" outside of Lager driving the co's growth have been its Lovecraft Series, including I Am Providence Imperial Red Ale, and launch of Del's Shandy with RI-based Del's Lemonade. That collaboration with another local brand has been a "huge piece" of recent growth, Mark told us. He also pointed out that some core New England markets currently "cycling out of" Yuengling's "launch numbers," another help for core 'Gansett brands. Like Yuengling, Narragansett plays more in mainstream domestic pricing range, but Mark finds its success to be "less about price and more about occassion." Sure, plenty of bars still go through a "boatload of tall boys" at domestic prices, but "on the flip side," Mark shared, a couple years ago a NYC bar went through 2-3 bbls/wk selling "Lager for the same price as 90 Minute IPA." So it's all relative. And consumers will pay for a "compelling or interesting story."

Writing this next homecoming chapter is a key piece to 'Gansett's longer term story. Mark highlights the importance of this story in letter announcing the move to Pawtucket today. Noting some ups-and-downs and "a couple of lucky breaks" (including moment 15 years ago when Mark got out of a speeding ticket by telling the officer "I was thinking about bringing Narragansett Beer back"), he invites readers to visit new space, insisting that "you made this happen." Along with housing a handful of brands (deals with others still in works), The Guild site also has space for lucrative tasting room biz, natch, plus a planned "1890 Room," where artifacts and stories from Narragansett's 125-yr history will be on display. So in addition to brewing some smaller batch brands (many discontinued over years, like Bock and Fest Lager), the Pawtucket site offers Mark and co dedicated space to "showcase" the story he finds so crucial these days.

That isn't to say keeping 'Gansett growing isn't without its challenges. Among them, Mark noted the "sheer amount of competition in chains." Though there's "more availability than ever," as he sees a "certain race to scale or national" distribution, he finds "brands aren't making the splash that they could've or might've" just a few years ago. Narragansett is currently available in about 16 east coast states, even without "a real robust chain team" after it "grew up in independent markets." So he'll bring some chain focus this year, particularly in core Northern New England, where the brand's chain penetration is already "double what it was last year this time," Mark said. New England is still about half of Narragansett volume and on-premise sales represent about 45% of the biz, a "really great indicator" in Mark's view. Further, it's even performing "real well in North Carolina and Florida," further-flung mkts where the brand's "not in chains at all."

Narragansett's ongoing growth, as well as the entrance and early success of other, similar revivals, continue to question traditional segment lines often based largely on price. They don't necessarily fit perfectly into current premiumization trend, even within craft, and fast growth of higher-priced brands either. But they do add fuel to the broader consumer movement in support of local bizzes.

Looks like crowded ranks of RTD cold-brewed coffees are getting another entrant: modest Minneapolis coffeehouse dubbed Five Watt Coffee has teamed with coffee/tea distributor Core Beverage to plan large-scale assault on packaged cold-brewed biz. Canned entry with 16-month shelf life just hit shelves locally at about $3. According to account in StarTribune, Five Watt coffeehouse opened only in May 2014 but quickly built loyal following that brought overture from Core to collaborate on broadly marketed RTD version. So Five Watt's 2 founding partners moved quickly to bring in 3 new owners including Core, set up new entity called Big Watt Cold Beverage Co (so that potential local customers wouldn't bridle at offering cold-brew with rival coffeehouse as brand), acquired local roaster Round Table and built 5,700-sq-ft plant for RTD entry. "Two weeks ago, Big Watt cold press drinks landed on convenience store shelves in the Twin Cities," paper reported. "By mid-spring, Big Watt's taproom and cafe concept will be open. By summer, the company aims to be pumping out 22,000 cases of cold press each month, and by August, its product could be on shelves in other big markets like Phoenix and Dallas." For now, until facility is built out, co is leasing space for development and production from Burning Brothers Brewing in St Paul. Co is also eyeing cocktail bitters and sodas as future packaged-bev frontiers. Placeholder Web site so far offers no info beyond promise of "cold beverages made in the heart of cold."  

Explosive success of alcoholic root beer marketed by Pabst under Not Your Father's Root Beer moniker continues to lure new entrants, some crossing over from non-alc recipes. Latest is Louisiana's Abita Brewing, with debut of Bayou Bootlegger Hard Root Beer, touted as first item in a forthcoming "line of 'Bayou Bootlegger' hard sodas." That makes at least 8 new alc soda brands announced this year, including Coney Island (owned by Boston Beer), Wild Ginger, Mission, FX Matt, Fitz Bottling Co (teamed with O'Fallon Brewing), along with MillerCoors' Henry Weinhards and Anheuser-Busch's Best Damned lines, per tally by BBI sibling newsletter Insights Express. Also in mix are Sprecher, Root Sellers and Forbidden Root alc soda lines. As with upstate NY brewer FX Matt, Abita based its hard root beer recipe on an existing non-alc root beer, in this case one that's been produced for 20+ years. Fans have "been asking for an alcoholic version for years," said prexy/ceo David Blossman, per Abita release. "It only made sense for us to enhance our already famous root beer with this fun, new twist." Not Your Father's brand that kicked off craze is owned by Illinois-based Small Town Brewery, which enlisted Pabst to give it national presence.  

Move by new prexy/coo of coffee fruit brand KonaRed to bring sales and marketing activities in-house (BBI, Dec 16) has garnered pushback from its displaced partner Splash Beverage Group. Ft Lauderdale, Fla-based incubator sent statement to BBI late last week saying it had filed claim vs KonaRed "seeking to compel it to honor the parties' 2014 distribution and marketing agreements." Splash said it would offer no further details for now. As noted at time, move by new KonaRed coo Kyle Redfield, a former POM Wonderful exec, also appeared to signal shift away from DSD model advanced by Splash toward model based more on direct shipments to retailers.

Sparkling Ice has been one of wonders of bev biz in recent years, and a boon to many DSD houses that have carried the high-volume brand. But earlier efforts by parent Talking Rain to find an exit apparently were dogged by Ice's relatively narrow margins and a fear among potential strategic acquirers that brand's growth may sputter if consumers start to conclude that bev that's been styled as "bolder side of water" is really not so different from diet soda. Enter Japanese beer giant Asahi Group Holdings.

Asahi last night acknowledged it's considering buying Talking Rain as diversification move, for what Nikkei newspaper reported to be about 50 bil yen, or $416 mil, a modest multiple for brand that was anticipated to close 2015 books with over $200 mil in sales. But Asahi rep Takuo Soga told Bloomberg that no decision has been made, wire service reported. It's not clear whether other potential acquirers or investors are in the mix.

Move, if Asahi pursues it, would continue diversification push by #2 bevco in Japan, whose biggest such move to date was 2011 purchase of New Zealand's Flavoured Beverages Group Holdings for $1.3 bil. Bloomberg noted that Asahi has spent $4.3 bil purchasing overseas bevcos since 04 as it seeks to hedge reliance on aging, slow-growth domestic market. It's also seen as being in hunt for European beer brands that may be slated for divestment if Anheuser-Busch InBev deal to acquire SABMiller moves forward. Tho best known for beer brands like Asahi Super Dry and whiskies, Asahi also markets NA brands like Wilkinson Ginger Ale.

Under ceo Kevin Klock, Sparkling Ice has proved one of biggest bev hits of past decade, ramping from regional base surrounding co's Seattle-area hq to national player, with DSD representation in every state except for part of Montana. After formal process by Talking Rain to find buyers didn't prove fruitful (some close to co have argued that its financials, since upgraded, at time understated profitability), co has not been believed to be actively shopping itself currently, instead focusing on continuing to build Ice brand while eyeing new brands or acquisition candidates that might enable it to bring broader portfolio to its DSD partners. In meantime, it would harvest financial synergies that come of being national brand that reaches broad consumer demo and is starting to build overseas biz. With structure now in place, ramping up from $200 mil to $700 mil "drops a lot of money to the bottom line," as Klock recently told BevNet audience in Santa Monica, Calif.  

Dairy co-op that goes to retail under Organic Valley and other brands just crossed key milestone: $1 bil in sales, signaling consumers' ever-broadening adoption of organic food across multiple channels, even c-stores. The 1,800-farmer CROPP Cooperative, which hit that sales # yesterday, now is claiming to be first billion-dollar organic-only food co, thanks in part to acceptance of 2 new RTD lines, Organic Fuel, now #1 organic protein shake in grocery, and Organic Balance, both milk-based protein bevs whose strategy was outlined in BBI a coupla weeks ago (BBI, Dec 4). Other key launches from La Farge, Wis-based co-op, whose farmers are spread over 35 states, have included past summer's intro of Grassmilk yogurts and Mighty Bar organic meat snacks under Organic Prairie brand. And due in Feb on bev side is adult-targeted single-serve line called Good to Go, intro'd at recent NACS c-store show (BBI, Oct 15). Initiatives are being overseen by marketing vp Lewis Goldstein, a Sam Adams and Snapple vet. CROPP stands for Coulee Region Organic Produce Pool.  

Their entrée into biz may have come in wake of lurid murder and suicide attempt, but pair of Long Island-based newcomers to bev distribution are building portfolio of healthy snacks and bevs under name D'Alessandro Distribution that's servicing NY metro south to Philadelphia. With refrigerated warehouse and fleet, Hicksville, NY-based operation has initial brand roster that includes refrigerated Florida's Natural/Growers Pride and Zieglers Apple Cider, and shelf-stable Long Island Iced Tea, Icebox Water and Munk Pack fruit squeezes.

Co is operated by pair of high school buddies who both did well in their professional lives in subsequent decades and now have decided to team up. John D'Alessandro came from family that operated meat market and opened his own upscale deli, while Gary Strauss spent 25 years distributing pharmaceutical items. After Strauss sold his co, they decided to join in venture that combined John's specialty-food smarts with Strauss' distribution expertise. Vehicle for that was Florida's Natural OJ distributor called Tri State Citrus that became available after its owner, an ex-cop named Arthur Lombardo, in late Oct was involved in machete murder of his ex-girlfriend in NJ, per authorities, followed by attempt to take his own life by jumping in front of NY subway train that resulted in severe head and leg injuries. Tri State boasted area exclusive for single-serve Florida's Natural citrus juice items and carried larger sizes on non-exclusive basis, as well as Zieglers ciders. After taking over last May, partners renamed operation and last month relocated it from remote Bohemia location to Hicksville, closer to core of NY/NJ service territory. They've also augmented Tri State's network of single truck and 5 subs by adding 3 more trucks.

In conversation today, Gary termed bev distribution biz "very refreshing" compared to pharma side that's hemmed in by regs, and said partners are looking to pick up healthy and natural brands. They service all accounts at least once a week, numbering among them grocery chains like Stop & Shop and Foodtown and specialty retailers like Fairway, Citarella and Grace's Marketplace. Strauss said partners are flexible on contracts, seeking some degree of exclusivity but willing to carve out niches that make sense. On trivia note, D'Alessandro is not first NY distribution shop founded by ex-HS friends: that designation also applies to founders of Drink King, schoolmates from city's Staten Island boro. Info at DalessandroDistribution.com.