Beer Marketer's Insights

Beer Marketer's Insights

Oatly reported further progress in Q1 on its road to breakeven operation while announcing that it's easing out longtime ceo Toni Petersson in favor of global prexy Jean-Christophe Flatin, a former Mars exec who brings greater operational credentials to role. For Petersson, who segues to co-chmn role with Eric Melloul of early investor Verlinvest, it marks end of 12-year run that saw Swedish-based co expand beyond Europe by constructing global network of extraction plants and forge public listing, only to find himself swamped by abrupt shift in investor sentiment to favor profitability over growth. Toni professed to be fully aboard with change at top, citing Flatin's 30+ years of "delivering both top- and bottom-line growth while also nursing collaborative cultures." Flatin, who arrived at OTLY a year ago, takes new role on Jun 1. So this morning's quarterly earnings call was Toni's last. He'll stay in mix advising on Asia market and trying to maintain co's unique corporate culture.

Stay up-to-date on the latest trends and forces shaping the fast-changing US beer biz at the Beer INSIGHTS Spring Conference, May 17-18 at the Four Seasons in Chicago. You'll hear informative and engaging "fireside chats," thought-provoking presentations, informative panel discussions and more. You'll also get unparalleled opportunities for Q&A and networking. View the agenda here and register today!

After 114+ yrs brewing beer, Spoetzl announced its "pushing the boundaries of its Shiner family of brands" to intro a new line of craft spirits including Vodka, Gin and Moonshine called "Shiner Shine" and will add barrel-aged spirits down the line. "The town of Shiner and surrounding areas have a colorful history of distilling that dates back to before Prohibition and ties into Shiner's rich brewing heritage," said Tom Fiorenzi, dir of Brewery and Distillery Operations. The new distillery will be open to visitors 7 days a week to sample and purchase to take home.

While spirits advocates proudly proclaim legislative wins on drinks-to-go and other issues, beer has quietly succeeded in warding off efforts to lower tax rates and expand access to spirits-based RTDs. After some early wins for liquor a couple yrs back, team beer is "batting a thousand this year," Brewers Assn genl counsel Marc Sorini explained during annual govt affairs review at Craft Brewers Conference in Nashville yesterday. RTD bills haven't moved forward in 7 states so far in 2023, while bills remain active in 5 others, Marc showed. Of course, this "fairly colossal fight…between liquor and beer," that's also "global," ain't ending anytime soon.

Looking at Mar-Apr scan data, Consumer Edge's Brett Cooper sez Constellation Brands scan data volumes up about 6% with "underlying depletions up mid-single digits or about 4.5%," an estimate based on historic relationship between STRs and scan. Avg prices still up 3.25%. So "underlying trends consistent with the company's outlook." Meanwhile, Modelo Oro got 0.2 share in latest week of Circana data, "with distribution about ½ of that of Constellation's beer portfolio." Got about 0.4 share in CA. Natl data implies Oro adding over 1 point to STZ growth rate, "modest in the short term."

AB and Bud Light trends vary widely in different parts of country. But one Southern distrib shared stark reality of how hard hit a distrib's biz can be in latest week of Circana stats thru Apr 30. Bud Light fam down well over 40% in this distrib's mkt. That's about worst trend INSIGHTS has seen yet. But even more shocking: total AB down about 30% as Ultra and Bud both down more than 25%.

Five yrs after acquisition of Glenwood Beer Dist in Erie, PA that jumped across state lines in non-contiguous territory (see Vol 20, No 95), OH's Bonbright Dist will acquire PA's Edinboro Bev, ceo Brock Anderson III shared with INSIGHTS. Edinboro is a craft distrib under 500K cases in Erie, PA territory led by Yuengling, Sierra Nevada, Pittsburgh Brewing, and Erie Brewing brands. Deal's expected to close by end of mo and will put its PA biz around 3.5 mil cases annually and total biz near 10.5 mil cases, INSIGHTS estimates.

The Mike Repole we know from Vitaminwater and Body Armor is same Mike Repole that national audience of thoroughbred racing fans on NBC got to know better on Sunday. After his horse Forte, the favorite to win the Kentucky Derby that day, was a late scratch because of a bruised right front foot, network posted his statement that "the hardest adversity often leads to the greatest moments of your life. Keep fighting, keep going, never surrender, never give up, never stop, keep grinding. The toughest situations build the strongest people & horses in the end.

TreeHouse Foods is claiming to be enjoying the benefits of its stripped-down range of activities, with Q1 sales rising 15.8% to $894.8 mil on strength of its private-label snack and bev ops after divestment of pickle-making activities. But the topline pop reported today was entirely the result of pricing, +16.7%, with volume/product mix edging down 0.6%. Gross margin strengthened to 17% from 12.8% a year earlier but still was hindered by need to invest in supply chain and warehouse capacity, Chicago-area co said. Operating line moved into the black, $39.3 mil, reversing $56.3 mil loss in year-earlier period.

Val Stalowir, a hard-driving bev, food and fast-food journeyman who had visible stints running brands like Boylan and Reed's, passed away abruptly Fri evening after what had seemed to be just a bout with flu, we've heard from several of his friends and former business contacts. Tho details were scarce today, the Easton, Conn-based exec had parlayed soft drink expertise picked up early in his career at Coca-Cola into eventful runs on Boylan's, Reed's and Stewart's brands. Val had begun his career with brand mgmt jobs at Quaker Oats, his LinkedIn profile indicates, then headed to Coke for 5-year run as GM for Eastern Europe, where his ethnic roots lay. After jobs at bev container recycling outfit Tomra Systems and at Latex Int'l, he'd joined Emigrant Bank as exec partner at time it was making extensive foray into private equity via holdings in Boylan Bottling, Jolt Cola, Detour Bar, Zola Superfruit and smoothie chain Robeks. He later moved to Global Restaurant Group, KFC's largest franchisor in Ukraine, and then food maker Int'l Harvest before landing back in bevs running Reed's as ceo. He left after taking heat for production snarls that proved to persist for years after his departure. A subsequent stop was Stewarts Enterprises, which has been extending KDP-owned soda brand into alcoholic segments like hard seltzer.