Beer Marketer's Insights

Beer Marketer's Insights

Interbrew’s gotta sell Bass, ruled UK govt today, following lead of its antitrust Competition Commission (CC).  Interbrew’s Bass buy, which would have given it over 30% of Brit beer mkt and made it #2 brewer in world, would be against public interest and reduce competition in UK, CC said.  Purchase would have created “an effective duopoly,” govt official said, which would increase wholesale prices, hurt independent distribs and retailers.  Dismissed Interbrew argument that efficiencies resulting from buy would keep prices down.  Interbrew’s gotta sell to govt-approved buyer, but govt didn’t say who’s on the list.  Interbrew’s response: CEO Hugo Powell said decision “defies logic and is clearly disproportionate to the competition issues at stake.”  Mkt’s response: Interbrew lost 25% of its mkt cap, $3.85 bil. Ouch!  Analysts’ response: “Unfair…. draconian….  They stand to lose on the deal now.”   Competitors’ response: Heineken is “keeping options open”; Carlsberg “ready to pounce.”   

It's been a tuff coupla weeks for Maryland's craft beer scene. On top of Flying Dog and DuClaw both planning to close their production facilities, now a separate MD up-and-comer is opting to open its 2nd outpost in Virginia after the state "successfully competed with Maryland for the project," VA gov Glenn Youngkin announced on Mon.

A new beer distrib in Florida aims to operate with a fundamentally different model, using a central warehouse and digital retail-focused platform to help more small brands reach the market. The brain-child of biz partners Phil Guana and James Williams, with over a decade of friendship and experience selling hi-end imports, cider and craft brands, BevPort leverages the warehouses and logistics expertise of partner Country Malt Group, a major ingredient supplier to small US brewers. CMG's cautious approach means BevPort is not only taking time to perfect its digital portal, but also to ensure all its regulatory t's are crossed and i's dotted. All that work is nearing completion and co aims to launch sales thru its portal in FL this summer or fall, Phil and James explained to CBN with prexy of warehouse and distribution for CMG parent co United Malt, Bryan Bechard.

In past coupla years, contemporary bluegrass guitar shredder who goes by Billy Strings has become bona fide pop phenomenon, riding blend of newgrass and jam band styles to Grammy Award, sold-out tours and frequent appearances on late-night TV. It hasn't worked out too badly for Short's Brewing, either. The Bellaire, MI brewery, where Strings played open mic shows in his early days a decade ago, collaborated with musician a year ago on hopped sparkling water with the Liquid Death-style name Thirst Mutilator. (This article also appeared in sibling pub Beverage Business INSIGHTS.)

Flurry of craft brewer acquisitions continue to come up as challenging craft landscape is rapidly evolving before our eyes. Houston-based Bayou City Hemp Company, which describes itself as the "largest cannabis operator in Texas," struck deal to acquire Houston-based craft brewer, distiller and cannabis co, 8th Wonder. Co joins Tilray as the only other sizable cannabis co actively acquiring into the beer and bev space.

So far so good for Sapporo USA, not yet a yr after acquiring Stone Brewing, co reported this wk. Combined, co's off-premise volume grew 5% yr-to-date thru May 27 in NielsenIQ scans, co shared. Total beer down 3% same period. Sapporo volume up 3%, in-line with import gain in this all outlet + convenience data. And Stone cases jumped 6% in a craft segment that's down 4% by volume.

Bell's is suddenly roarin' up double-digits again in latest tracked off-prem data, thanks in large part to sizable new brand launches and new mkt rollouts. Its $$ grew 16% to $9.9 mil with volume up 14% to 244K cases for latest 4 wks thru May 28 in Circana multi-outlet + convenience data. So Bell's is back among top-50 beer brand families and #7 craft family overall by $$ in scans for period. Recall, Bell's Hearted Variety Pk and Hazy Hearted brands are #3 and #4 new launches in craft so far this yr (see May 26 issue). And Bell's rolled out 5 new states in April including WA, OR, UT, ID and AK.

Jeff White will step away this summer as CEO of Sierra Nevada Brewing. Sierra owns 4th largest craft portfolio, behind AB, Boston and Kirin-Lion, and 3d largest craft brand family behind only New Belgium and Sam Adams, CBN estimates. Jeff is first outside CEO following the long tenure of Ken Grossman, who founded the company back in 1980. Ken will now "step in as CEO in the interim." Jeff will be retiring after 4.5 yrs in role, nearly 10 yrs at company, and 38 in beer biz (including long stint at Boston Beer too). "Search for a new leader has already begun," Sierra said in statement. (This is an expanded version of an article that first appeared in sibling pub INSIGHTS Express.)

Fed drug czar Gen Barry McCaffrey continues to take tuff shots at alc bevs.  His latest: “The worst problem college students face is a combination of beer and pot.  That’s why they end up dropping out of school, don’t play sport, fail to learn, end up pregnant and vulnerable to assault or commit criminal behavior.  It’s pot and beer.”  

    

August Busch IV on cover of Forbes this week in feature on wannabe CEOs of family-run public cos.  August sez  he wants to be next AB CEO, but adds:  “I’m young—with time on my side.”  Article puts Aug IV in context of changing biz world where “corporate heirs are being held back.”  Promotion of prexy Pat Stokes to intl chairman could be “sign that a more battle-hardened executive is being positioned” to step in when August III leaves.  Tho AB board a “fairly clubby bunch” with close ties to August III, he owns only 1% of AB stock.  Forbes questions whether institutional investors who own 63% of AB will accept August IV.  Problem with article is not a single quote from an AB board member, August III or anyone else who knows what board’s really thinking.  Best part for AB: cover features new ad tag line: “Whassup?”