Beer Marketer's Insights
Clark Bev Building $100 Mil New DC in Miss
Kentucky-based Clark Beverage Group is investing $100 mil in new sales facility and distribution center facility in Madison County, Miss, per local reports. Clark will close its Jackson location as part of expansion, but transition won't be completed until 2025 and all of the 300+ workers there will be offered a chance to work in Madison plant about 15 miles away. Co told Clarion-Ledger paper that expansion will will help support more local suppliers. A Coke bottler since 1903, Clark also distributes Dr Pepper as well as Molson Coors and Heineken beer brands via Clark Distributing arm.
Roar Organic has signed on as official hydration partner of Professional Pickleball Assn Tour for 2023 season. Partnership kicked off last month at OGIO Newport Beach Shootout in Calif, with 25 events set for this year . . . Guru Organic Energy has become official energy drink partner of Canadian Elite Basketball League (CEBL) and the CEBL Championship Weekend for 2023 season. Deal includes in-arena branding, media and broadcast brand ads and various activation efforts at CEBL arenas in Vancouver, Edmonton, Calgary, Saskatoon, Winnipeg, Niagara, Brampton, Ottawa and Montreal. Sponsorship was driven by awareness that hoops is top sport that Guru demo watches, plays or follows, Montreal-based co indicated . . . Nestle-owned Blue Bottle Coffee has teamed with The Weeknd and his record label XO to celebrate his Ethiopian roots with new brand called Samra Origins, named for mother of singer whose birth name is Abel Tesfaye. Effort starts this month with limited online release of Exceedingly Rare Ethiopia Wolde Faye Koricha COE #7 (priced at $65 per 100-g tin), followed this summer by a Summer Blend available online and at some Blue Bottle stores.
Coca-Cola's new revenue streams chief Dan White articulated co's emphasis on bigger, more focused bets these days while shedding further light on new directions being taken by acquired Topo Chico mineral water brand, including move into mixers and fruity seltzers on NA side. The idea is to broaden reach of brand, sometimes via extensions that don't necessarily rely on liquid that has to be brought in from Mexico. Dan views brand as "the beloved sourced water that's bigger than its source," opening it up to expressions that don't draw upon Mexican source, tho the bottled mineral waters will always be at its base. On alc side, of course, Topo Chico Hard Seltzer and then Topo Chico Spirited canned cocktails, both via partner Molson Coors, have drawn broad interest from retailers in early days. Tho sales are declining this yr vs national rollout year ago.
Struggling Bai brand is receiving new investment and riding partnership with Sydney Sweeney as it tries to get back on strong growth track, Keurig Dr Pepper execs indicated at Bev Forum in Chicago yesterday. Asked by moderator Michael Bellas about Bai, cmo Andrew Springate was careful to note that was legacy acquisition prior to merger that created current company, but said he's still optimistic about brand's future. After all it plays in broad water segment that's booming and enhanced flavored water segment that's growing and it's a half-bil-$ brand. So plenty of reason for KDP to make needed course corrections adding marketing support and in recent weeks unveiling multiyear partnership with actress and producer Sydney Sweeney via campaign dubbed "Bai: It's WonderWater." ("Wow at first sip" is another slogan in campaign.) Also in mix are 14-oz 6-pks, including in new flavor Pilavo Pineapple Mango. So Springate said he expects trajectory to change.
On first earnings report on watch of new ceo Laxman Narasimhan, Starbucks reported strong revenue growth, +14% to $8.7 bil, as same-store sales popped and China showed further signs of regaining momentum. Same-store sales rose 11%, driven by 6% gain in same-store transactions and 4% increase in average register ring. That revenue growth occurred despite 2% hit from foreign currency translation.
Vita Coco continued to score strong volume gains in its branded biz in Q1 as relatively modest price increases closed the gap with rival health & wellness categories and allowed brand to continue to boost retail presence and household penetration. And with ocean freight and other transportation costs finally easing, it's able to do so in profitable way, too. Indeed, Vita Coco is "one of few profitable companies our size," as cofounder and exec chmn Mike Kirban reminded investors on call this morning. Separately, co filed S-3 shelf registration to lay groundwork for offering of as much as $200 mil in new shares on undetermined time frame that might offer wherewithal to do significant M&A deals, tho nothing is imminent on those lines.
DE the 22nd Adult-Use Cannabis State with MN, OH in Offing as SAFE Act Re-Intro'd in Congress
April ended with one of newsiest weeks for legal adult-use cannabis mkt in recent memory. Just after Delaware gov allowed bills decriminalizing possession and establishing a legal mkt to become law without his signature, the Minnesota House and Senate each passed different versions of an adult-use bill. Advocates in Ohio are poised to put a proposal before voters in Nov, too. And mid-wk, 40 US senators and 10 reps re-introduced a standalone SAFE Banking Act that would ease access to capital for the budding cannabiz.
Pernod Ricard USA and Ocean Spray are the latest cos to combine well-known brands from across bev aisles to enter the RTD alc bev space. "Absolut Vodka and Ocean Spray Vodka-Cranberry Range" marks a new RTD "line" for Absolut in partnership with Ocean Spray in the US, "inspired by the classic combination of Absolut Vodka and Ocean Spray Cranberry Juice," cos announced. Brand will be available by "early 2024" in variety 8pks with 4 different flavors, two individual flavor 4pks and single cans. These brands "have already been working together on integrated programming, co-packaging, innovation, and new offerings that will start rolling out in exciting ways this summer," per release.
Twisted Tea Launching Rocket Pop LTO in Party Pack; Americana Makeover, New Tea Drop TV Spots
Twisted Tea is gearin' up for several new summer initiatives. Following similar entries from other leading FMB brands, nation's #1 hard tea/FMB brand will tap into nostalgia with limited-edition Twisted Tea Rocket Pop - serving up the "bold, iconic flavors" of the classic red, white and blue popsicles - available exclusively in Twisted Tea's Party Pack this summer. "Fan feedback so far has been wildly positive," a Boston Beer spokesperson shared. And the Party Pack is in for "an all-American makeover," per release, featuring Rocket Pop alongside Twisted Tea Original, Half & Half and Peach.
With all of the mkt shifts amid Bud Light declines over the last few wks, total premium light segment trends haven't changed much. Premium light volume declined 4.6% and $$ grew 0.2% for latest 4 wks thru Apr 22 compared to volume -5% and $$ up 0.4% YTD. The segment shed a bit more share of total beer for period than YTD; -0.6 share of volume and -0.5 share of $$. Bud Light volume dropped 16% and lost a whopping 1.7 share of total beer volume to 11.9 for 4 wks. Coors Light (+6%) and Miller Lite (+9.5%) each gained 0.6-0.7 share of volume to 6.9 and 6.3 respectively. Easily their best collective share gains in the MC era. But net-net, premium light segment's downward trajectory was unchanged for 4 wks.