Beer Marketer's Insights

Beer Marketer's Insights

Almost exactly 5 mos after 1st asking TTB for 90 more days to comment on potential new set of federal trade practice rules, the same 8 major alc bev biz trade orgs asked for another 90 days. Recall, TTB granted first request, pushing initial Mar 9 deadline to Jun 7. Now, just like they did in Dec, BI, NBWA, DISCUS, WSWA, ABL, WineAmerica, Wine Inst and American Distilled Spirits Alliance filed joint comment earlier this mo urging TTB to push deadline back to Sep 5.

Tho Bud Light's share slippage mainly shifted to other cos' mainstream brands so far, Roth MKM's Bill Kirk upgraded Constellation and Boston Beer stock to "buy" this morn on belief that both will benefit from biggest brand's fallout this summer. "Substitution should shift seasonally into STZ's favor (i.e. Corona and Bud Light overlap more in summer than the spring)," Bill wrote, adding that "as weather warms, we expect the share gains for Modelo Especial and Corona to accelerate." And he now believes both the hard seltzer segment and Truly "will benefit in the summer from Bud Light share losses," as occasion overlap increases. Tho hard seltzer segment and Truly sugar-based hard seltzer declines continued to steepen in May.

Constellation is fully wiping the slate clean with its craft endeavors and chocking it up to a loss, all while its total beer biz hasn't really skipped a beat. In classic bury-the-news fashion on late Friday of Memorial Day weekend, co announced it will sell Funky Buddha back to its original founders Ryan and KC Sentz and Four Corners back to George Esquivel and co. It's also sunsetting Two Lane brand made in partnership with country singer Luke Bryan, STZ shared with INSIGHTS separately.

Bud Light declines continued apace in scans with $$ down 26% for 1-wk thru May 20 in NielsenIQ channels, according to data shared by Bump Williams Consulting. Lotsa distribs still down 20-30% on Bud Light thru Memorial Day weekend too, INSIGHTS hears. And Bud (-11%), Mich Ultra (-4%), Busch Light (-5%) and Natty Light (-5%) each still residually impacted by boycotts in latest week of scans.

A different sort of policy proposal popped up this month as a pair of firearm-focused, public-health aligned groups released a report on the intersection of "Alcohol misuse and gun violence." Unsurprisingly for a report springing from the Johns Hopkins Bloomberg School of Public Health, it endorses familiar alcohol policies designed to limit any alcohol use, like restrictions on outlet density, hours/days of sale and higher taxes. But that's not its focus. Instead, as the title suggests, it focuses on "alcohol misuse," urging policies designed to reduce gun violence by looking at the overlap between folks convicted of alcohol-related and gun-related crimes.

Some view NY's array of papaya-juice-&-hotdog joints as city's first juice bars. Certainly, the health claims implied for the bland, chalky drinks from their start 90 years ago predated those of new-age bevs. Partly with that history in mind, the passing last Fri of owner of mainstay Gray's Papaya, Nicholas Gray, at age 86 after suffering from Alzheimer's Disease has prompted burst of local reminiscences of quirky institutions. Lengthy NY Times obit heralded Gray's operation "whose culinary eccentricity, competitive prices, clever sloganeering and apparent immutability earned the affection of New Yorkers young and old, rich and poor." The store, on Upper West Side, isn't going anywhere, with Gray's much younger second wife Rachel assuring local news outlets that store has years left on lease and enjoys friendly relationship with landlord. Their 18-year-old sons will be behind the counter this summer.

London-based Distill Ventures, the alc and alc-alternative incubation co that's played key role in Diageo innovation strategy, has elevated Heidi Dillon from running US biz to ceo. She succeeds founder Frank Lampen, who'll stay involved from chmn's perch. Under his leadership over just shy of a decade, co has grown to employs 500+ people across US, Japan, Europe and Australia.

For those nostalgic for the days before inflation reared its ugly head, this year's Memorial Day grocery fliers are providing a bit of succor, with throwbacks like 10-for-$10 deals on Body Armor. 79-cent bottles of Sparkling Ice and big cans of AriZona, and 4-for-$5 deals on Rockstar Energy and Vitaminwater. Overall, tho, promo environment seems reasonably restrained, judging by our perusal of grocery fliers from around US, with healthiest segments, like energy, showing no deep deals that we spotted. We also offer here a smattering of online deals that have hit our inbox.

Yesterday, bipartisan group of 10 US representatives reintroduced USPS Shipping Equity Act, allowing USPS to ship alc bevs in states where it's legal. "This bill is critical in leveling the playing field and increasing consumer and manufacturer choice while bringing in millions of dollars in revenue per year," according to release from lead sponsor, Republic Rep from Central WA, Dan Newhouse. "The outdated prohibition on shipping alcohol through the Postal Service is bad for consumers and bad for small businesses—imposing unnecessary costs and hassle," added co-sponsor Rep Jennifer Wexton, Democrat of VA.

Small brewer-backed franchise reform is back on the docket, as expected following 3-yr lull when pandemic-related provisions took precedence. Small brewers in Ohio joined the fray this wk, launching campaign at statehouse seeking support for a carve out to state's beer franchise law, Columbus Post Dispatch wrote. Advocates for small brewers and distribs in OH offered familiar talking pts to the paper. Long road ahead likely, tho at outset Ohio Craft Brewers Assn seeks carve out for brewers under 250K bbls. To aid in its advocacy, org formed Brewers Freedom Alliance, emphasizing legal change to "reflect the current reality of the craft brewing industry" and expecting expansion of consumer choice. (Sibling pub INSIGHTS Express reported on these developments yesterday.)