Beer Marketer's Insights
While Kirin-Lion's US biz keeps soaring to new heights fueled by New Belgium, it's making significant cutbacks in Australia following significant losses there. Co expects to cut ~300 jobs primarily from its Australia unit out of 2K total in Australia and 4K globally, reported Financial Review. Plans follow recent "review of the business" by Lion ceo Sam Fischer, co confirmed with paper, and cuts are "focused" on more administrative roles "with limited change in sales, brand teams and breweries." Notably, co recently incurred $300 mil impairment charge on its Australia unit after posting a $168-mil net loss in 2022. "While we'll be making significant investments, particularly in data, analytics and growth-orientated functions, unfortunately some roles will be made redundant," a spokesperson told paper.
Top US wine supplier and #1 spirits RTD co is making its 2d bolt-on acquisition in the last mo. E&J Gallo acquired Bev, a woman-led brand with portfolio of "premium canned wines and spritzers," co announced today. Deal terms weren't disclosed, tho Gallo already got brand's exclusive US distribution rights 2 yrs back. Bev is "first ever TTB-approved 'zero sugar' canned wine on the market," per release, with gluten-free offerings at 3 carbs, 100 cals and 11.9% ABV per serving. Founded in Venice, CA by Alix Peabody, Bev products are all from Cali and available in 4pks of 250ml cans priced at $15.99-$17.99. Alix will "continue her involvement in the vision, expansion and development of the brand," which promotes "empowerment and inclusivity in beverage and beyond." Recall, Gallo also recently bought Fishers Island Lemonade RTDs (see May 1 issue), suddenly getting more acquisitive as High Noon brand continues to bolster co to new heights.
Tho not the additional 90 days requested by set of 8 trade orgs last mo, TTB did extend comment period on current review of trade practice rules another 30 days, agency announced today. Deadline now July 7. Still no word on other coming label-focused rulemakings.
Heineken Extended Global Partnership with F1; Heineken Silver Official Partner for Vegas Grand Prix
Heineken and Formula 1 extended their global partnership after working together for last 7 yrs as Heineken continues to utilize F1 platform amid its rising popularity. "Extended partnership will usher in a new phase" in their relationship focused on "engaging Formula 1's growing fanbase in meaningful and creative ways," including as "official Title Race Partner for the inaugural Formula 1 Heineken Silver Las Vegas Grand Prix 2023" later this yr, per release. Co will also continue to emphasize "responsible consumption" messaging with F1 thru Heineken 0.0.
NBA and ABI's Mich Ultra extended their marketing partnership globally, marking "first-ever global beer partner" with the NBA, orgs announced. This will give Mich Ultra "bolstered" presence across NBA, WNBA, NBA G League, NBA 2K League, team USA and Basketball Africa League. Recall, Mich Ultra has been all over NBA broadcasts for yrs now, especially since inking "Official Beer Partner of the NBA" deal in 2020. Co also partnered with NBA Finals-bound star Jimmy Butler and WNBA star Nneka Ogwumike among other ambassadors, including ad currently airing, and new ad featuring Jimmy Butler set to air during the finals.
Spirits Depletions Down 5% in Q1, Wine Off 7%, WSWA Shows; Control State Sales Slip in April
While trends look much better in off-premise scans, total alc bev volumes are soft in early 2023. Spirits joined wine and beer in the red early this yr, a pair of sizable sources showed this morn. US spirits depletions dropped 5.1% in Q1, WSWA's SipSource data shows, while wine declined 7.4%. So for 1st 3 mos of 2023, total wine & spirits distrib sales to retailers declined 6.3%. Even softer than current estimates for US beer shipments and depletions in Q1, tho spirits in particular faced notably tougher comps than the other 2 categories
Each of the top-5 industry growth brands are traditional beers in yr-to-date NielsenIQ scans thru nearly first half of 2023, with AB's Mich Ultra and Busch Light both still in the mix. But recent dynamics are beginning to change the landscape, Bump Williams Consulting's latest monthly update shows, looking at which brands added most incremental $$ YTD thru May 20 across Total US off-premise data.
MC Supply Chain "Keeping Up" and "By and Large in a Really Good Place" for Summer, Sez Gavin
Molson Coors execs still unable to say much about the wild mkt shifts benefitting its core brands publicly while in quiet period. But production team continues to cope "well" with massive increases in demand, ceo Gavin Hattersley underscored alongside cfo Tracey Joubert at Bernstein's Strategic Decisions Conference. Combo of SKU rationalization over last couple yrs, additional time spent with supply chain/procurement teams to devise "plan B, C and D" in case something unforeseen came up, and decision to enter 2023 and finish Q1 with "high inventory levels" proved helpful, Gavin noted. "Our supply chain team did an amazing job" among "sudden elevated demand," and "by and large we are in a really good place" and "keeping up." Upstream suppliers are also "keeping up" and meeting requests for "higher than original forecasts."
Folks want "actionable and practical advice that is relatable and culturally relevant" when assessing the risk of everyday decisions like "what to eat, playing a sport, sunbathing, or driving a car." And when it comes to drinking, the assertion that there's "no safe level" of consumption, "doesn't help people understand the risks associated with one drink versus four drinks." So wrote Henry Ashworth, CEO and president of global alc bev producer org, Intl Alliance for Responsible Drinking, in sponsored post on Politico this wk.
No and low alcohol beverages ("NoLos") present a familiar conundrum to public health advocates: "an expanding market" and "a lack of evidence," as the World Health Organization outlined in a recent policy brief. But WHO didn't let the admitted "scarce" or "relative dearth" of research stop it from throwing lots of cold water on the globally growing cross-category segment. The report emphasizes a series of broad concerns, chief among them skepticism that NoLos could encourage more alcohol consumption, not reduce it.

