BMI Archives Entry
Troegs Sticks to Slow and Steady, +13% to 78K Bbls in 2015, Including "Uplift" from Brand Refresh
This year, Troegs has a new year-round brand Solid Sender Ale in the mix. It "evolved" from the first beer Troegs brewed, its Pale Ale, Chris explained. As Troegs nears its 20th year in biz (it opened July, 1997) and completed its first major brand refresh, Chris and brother/co-founder John figured it was a "nice time" for the co "to reinvent that beer." Though the "basics of the beer are the same," Solid Sender is a totally new offering. It clocks in at just over 5% ABV but doesn't call attention to its sessionability except through the "subtle" implication of "the name itself," referencing "something you can fall back on." The beer started sneaking out into Troegs' home markets late last year, but hits its full 10-state plus DC distribution starting now. And the co is "not really looking to add" new markets this year, Chris said. It will fill out North Carolina, launching in Asheville and Western NC as well as the Outer Banks in early spring.
While Troegs, at almost 80K bbls last year, may fit right into the target-range some folks cite in conversations about "who's next" (that is, which brewery will do the next deal), you may also notice that it's kept "Independent" in its company name. The inclusion of the word dates all the way back to 1998. And Chris notes that he and his brother see no end to the co's independence in sight. They're both in their early 40s so "plan on continuing" to run the company for a while. Sure, they get "rapid emails" from folks "fishing" for a deal, but Chris suggested that it may not be as common as we've heard from others. He also reminded that Troegs doesn't have any other original investors looking to be paid. They do have a bunch of debt from the brewery, but that's why it's "necessary to do things in steps," Chris said, and "have sales to help cover" it.
Boston Beer's Coney Island Hard Root Beer also made its mark, reachin' $24 mil in total sales, mostly from August onward. That's large enuf to be 16th top craft brand in scans, ahead of Bell's Two Hearted Ale (+35%), Redhook Longhammer IPA (flat) and Stone IPA (+24%) among others. It helped drive Boston's Alchemy & Science unit to become top-25 vendor separate from Boston Beer. So as rest of Boston Beer portfolio (Sam Adams, Cider, Tea) collectively down 3% for final 13 wks, adding in A&S boosts $$ trend to +5% for same period. Altogether NYFRB and CIHRB have close to 0.4 share of MULC $$ YTD and have well over 1 share in supers for latest 13 wks.
Meanwhile, three other craft brands zoomed onto top-30 list. Fastest of 'em all was AB-owned Goose Island IPA. It more than tripled sales for the full yr, +260%, (more than quadrupled sales every 4 wk period since July) propelling the brand to 23d best-selling IRI craft brand and 8th largest IPA brand by $$ (6th largest by volume). And guess where it's been pushin' most - c-stores. Goose IPA was up a whopping 570% in craft's most underdeveloped (and AB's most developed) channel YTD and up over 800% for last 13 wks. Already the 15th largest craft brand in c-stores thru 2015. Think AB smells c-store oppy?
Lastly, Firestone 805 Blonde Ale and Founders All Day IPA each more than doubled to make the top-30 brand list in IRI MULC. We've talked about these two brands' impressive growth all year. Firestone 805 ranks as 26th largest craft brand all from sales in CA, and Founders All Day IPA found its niche with a canned 15pk driving sales. Indeed, Founders All Day 15pk more than quadrupled sales in scans with lowest pricing among top craft packages, at $27.36 per case. Both brands were among the top-10 largest share gainers in foodstores for the last 13 wks now too. Honorable mentions: Lagunitas Seasonal (+28%) snuck back into top-30 IRI MULC craft brands as of November; and Ballast Point Sculpin IPA (+94%) jumped into top-30 craft brand list in supers. These brands ousted Magic Hat #9, Goose Island 312 Urban Wheat, Dogfish Head 60 Min IPA, Harpoon IPA and both Deschutes Seasonal and Mirror Pond Ale for a spot in the top-30 MULC brands this yr. While we don't have these brands' total trends, we know each of them markedly slowed in 2015. Should be interesting to see how this list changes again in 2016.
Lookin' at top cos, Lagunitas again finished yr as fastest growing craft co in scans. Tho trend slowed down a bit at the end of the yr, it still finished with $$ up 49%, +$44.7 mil. Sierra Nevada finished with similar total gain, $44.4 mil, up 20%. No other top craft company came anywhere near those total $$ gains. Boston Beer up $86 mil, +11% altogether including A&S, tho that's all Cider, Tea and Root Beer (see below for more on Sam Adams). Next closest was AB's Goose Island, up $13.3 mil, +33%. Stone (+27%), Bell's (+20%), SweetWater (+25%) and New Glarus (+35%) were other top trends in 2015 among craft cos in IRI's top-25 vendors. Excluding New Glarus, each of those cos trends decelerated vs 2014. And SweetWater slowed to single digits (+8%) for second straight 4wk period. Meanwhile, Deschutes accelerated in final mos to close out yr up 12%, better than 2014 trend. And Gambrinus sustained 7% gain, same trend as last yr, with steady growin' Shiner Bock (also +7%) leadin' the way. Now ahead of Boston Lager as 3d largest craft brand in scans (excluding root beer).
Yet final numbers for the yr weren't as pretty for several top cos. Sam Adams top-4 brands finished the yr down 6% collectively. That's Sam Seasonal (-8%), Boston Lager (-6%), Sam Variety Pk (-13%), Rebel IPA (+15%). And each of those brands saw considerably steeper declines thru latter part of the yr: combined down 12% for final 13 wks. Altogether they make up about 88% of Sam Adams total sales in IRI MULC. Then too, New Belgium eked out a 2% gain, with Fat Tire (-1%), Ranger IPA (-2%) and NBB Seasonal (-13%) down for the yr. And Craft Brew Alliance ended up +3% amid a particularly tuff year for Redhook brand family.
Several sizable cos have already announced new distribution territory to begin in Jan. Yuengling officially enters MS. Founders enters SoCal with Reyes Group and AB house, Pacific Beverage. Duvel USA's Boulevard enters Ariz with Hensley and KY with Beer House Distributors. Another Duvel co, Firestone Walker just announced it'll officially expand 805 Blonde Ale outside of home-state Calif for the first time (see above). Oskar Blues just launched UT with M&M Dist this mo and plans to be fully national by first half of 2016; only ND, SD, OK, MT to go. Interestingly, Oskar Blues partnered with UT-based Utah Brewers Co-op (owned by same PE firm, Fireman's Capital) to create a new session beer called Utah Blues that will be available at select locations, co announced. The first collaboration we've seen (at least publicly) between the two cos with the same PE owner. Then too, a few smaller cos announced new distribution in TX starting in Jan. AleSmith is largest of the bunch, entering Dallas Fort Worth area with Andrews Dist. Another CA brewer, Knee Deep Brewing enters Austin area with Austin Specialty Beverage. And TX-based Ranger Creek Brewing signed on with Glazer's for San Antonio area. In Fla, local MIA Brewing switched to Cavalier Dist from its own distribution unit, Most Wanted Beverages. Recall, MIA just partnered with Brew Hub to help out with production, which will help it launch cans in coming mos. It's also expanding its own facility to 21K sq-ft by summer 2016, via Miami New Times. In NC, local brewer Lazy Hiker partnered with Skyland Dist for Western NC. And a Ontario, Canada-based Nickel Brook Brewing enters northeast OH with Esber Beverage, reported cleveland.com. That's co's first US distribution point. It also has alc soda line with Babbling Brooke's Root Beer and Naughty Nick's Ginger Beer.

