Kirk Santos will lead Constellation's "newly created end-to-end Global Talent function," co announced this morn. As new sr veep of global talent, Kirk will be responsible for enhancing co's talent attraction and retention strategy in line with STZ's 2030 "Diversity, Equity, and Inclusion (DEI) initiatives," per release. He'll also manage co's talent development, talent acquisition and employee experience teams. Kirk comes from most recent stint at shipping and mailing co Pitney Bowes, but also held roles at CPG cos such as Pepsi North America Bevs unit and L'Oreal, among others.

AB agreed to pay the US Environmental Protection Agency $537K and to carry out a 3rd party safety review of all 11 of its major breweries, EPA announced yesterday. Settlement stems from EPA inspections of co's NH, CO and CA facilities between 2016-2019 and a 2018 incident at its Fort Collins, CO plant, when an accidental release of ammonia injured 2 employees. Issues all stem from handling of anhydrous ammonia, widely used in refrigeration. "Many of the EPA's allegations for all three facilities are related to Anheuser-Busch's failure to comply with recognized and generally accepted good engineering practices," agency wrote.

At same time that stock of largest global brewer under lotsa pressure (see above), there are many far-from-rosy reports on largest distiller lately too. CITI and Jefferies each downgraded their Diageo North America estimates yesterday to -2% and -3% revs respectively for its fiscal 2d half (Jan-Jun). CITI wrote about "Diageo's more downbeat outlook." Jefferies cited "some share loss within spirits…. As we enter a period of hiatus" for Diageo's US growth, "we see a risk that the shares tread water until growth returns." Both talked of inventory "adjustments" and CITI also cited "weaker consumer depletion trends."

ABI (BUD) stock is now down 18% since end of Mar, and pair of reports over last 2 days see that as oppy to buy. Reaction to Bud Light backlash is "overdone," Bernstein believes, noting "attractive entry point ahead, as raw material inflation eases and translates into better margins." But it likely won't be without headaches.

The problem of cycling launch numbers continues to be widespread for vast majority of new brand intros. Add White Claw Surf Variety Pk and Topo Chico Margarita Variety Pk to list of last yr's launches down steep double-digits in 2023 scans. Surf sales suddenly sank 43% for 12 wks thru May 21 in Circana multi-outlet + convenience data including down 50%-plus each of the last couple 4-wk periods. Topo Chico Marg Variety Pk slipped 20% in the latest 4 wks tho still up 80% YTD. Those were the #3 and #8 biggest launches of 2022. Now each of the top-4 launches from last yr - Truly Margarita, Bud Light Hard Soda Seltzer, White Claw Surf, Bud Light Next - and 6 of top-8 new brands from last yr (including Hard MTN Dew and Topo Chico Marg) are down steep double-digits vs last yr in latest periods. Tho NBB Voodoo Ranger Juice Force continued to grow 80% for 4 wks and Simply Spiked Variety Pk still incremental YTD thru May 21.

Goldman Sachs surveyed 57 distribs that service ~35% of total US retail outlets and found ~60% said Memorial Day wkend volumes "met or exceeded" expectations. Of that group, ~45% said "holiday trends were somewhat to much stronger than expected." Survey found 52% of distribs reporting STZ volumes "were up significantly," followed by TAP (48%) "as it continues to benefit from the fallout on Bud Light." Yuengling also showed strong growth. Conversely, no surprise that 64% of distribs indicated AB volume "down significantly" over Memorial Day wkend and 26% said SAM volume declined. For AB, "this compares to 1% in 2022 and 3% in 2021, which shows how impactful the Bud Light boycott has been," noted managing director Bonnie Herzog.

JM Smucker rode higher pricing to 7% sales gain to $692.5 mil in its US Retail Coffee segment in its fiscal Q4, as 10% net price realization offset 3% volume/mix decline. Segment's operating profit rose 22% to $200.1 mil thanks to lower marketing spending and those higher prices. Segment comprises Folgers, Café Bustelo and licensed Dunkin' brand, within co that's prioritizing for growth such brands as Uncrustables sandwiches and Milk-Bone dog treats . . . Splash Beverage reported a 48% gain in net revenues to $5.82 mil in its first qtr but said its planned launch last month of Tapout Energy canned extension to its bottled sports drink suffered a delay.

Recall that Oleato olive-oil-infused coffee was purported game changer that departing Starbucks ceo Howard Schultz bequeathed to his successor, Laxman Narasimhan, to commercialize. Well, Laxman's runnin' with it, today adding 11 new states for Oleato range at select company-operated units in Alaska, Ark, Conn, Fla, Mass, Maine, NH, NM, RI, Texas and Vermont, including such metros as Austin, Boston, Dallas and Miami. SBUX also has expanded Oleato's availability in markets where items launched in Mar, in NY, Ill, Calif and Wash State. As reported, the drinks using Italy's Partanna olive oil brand are available in trio of non-alc versions as well as Golden Foam Espresso Martini. The olive oil itself also is for sale at participating stores. On last earnings call in May, Narasimhan termed Oleato "one of the top 5 product launches in the last 5 years in terms of brand awareness and excitement," tho much of the consumer response on social media has been tinged with skepticism and occasionally even disgust.

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, Mich, 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. It was brewery's first non-alc item after what founder Joe Short claims in new video was 10 years of his urging. Mutilator was logical match, not just because of partners' long association but because Strings' career ignited only after he kicked alcohol and drug issues a few years ago to adopt "California sober" lifestyle, per title of musical collaboration he just did with Willie Nelson to celebrate that musician's 90th birthday. ("I don't get to acting mean when I keep my buzzes clean," as they sing, referring to pot as their only acceptable stimulant these days.)