Beer Marketer's Insights
"A New Era of Beverage Alcohol" at Beverage Forum; Spirits Winning; NA Coming On; Light Beers Fading
In last 5 yrs, alc bevs have entered a "new era," proclaimed Bev Mktg managing director Brian Sudano kicking off yesterday's Beverage Forum in Chicago (for alc and non-alc bevs). One key trend is the emergence of Alternative Adult Bevs (AABs), as Brian calls them, across beer, wine and spirits. Those brands (including hard seltzers, FMBs and RTDs) are now 11 share of all alc bev "servings," said Brian. They have "transformed the industry." And they're still growing 7% per yr (even with seltzer declines, which Brian thinks will reverse). In "beer," FMBs grew from 4 to 13 share last 5 yrs (as seltzer exploded), Bev Mktg estimates. Spirits have continued to gain share of broader alc bev mkt and RTDs are up to 12 share of spirits. Could they someday be as much as ¼ of spirits mkt, Brian wondered. Meanwhile, servings of "standard" beer have declined 6% a yr in recent yrs. Yikes. That "leaky bucket still has a ways to go," Brian added. Light beers dropped from 43.6 share to 36.5 share in last 5 yrs, according to Bev Mktg estimates.
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Settling Fed Suit, OR Agrees to Keep Hands Off DTC Beer, Permit Out-of-State Brewers to Distribute
Out-of-state brewers can begin direct shipping and self-distribution of their beers to Oregon after settlement of federal lawsuit, plaintiffs announced in release late last wk. OR regulators agreed to settlement with 3 WA breweries, ending suit brought last Jul. State agreed not to enforce current law that blocks direct shipments from breweries in states that don't allow shipments from OR breweries. It will also begin permitting out-of-state brewers for self-distribution to OR retailers. Recall, parties telegraphed this resolution in late March filing alerting court to pending agreement. (This article appeared in sibling pub INSIGHTS Express earlier today.)
Another sign that Athletic Brewing (and by extension NA beer) has already arrived on a bigger stage. This morning, Athletic and Jet Blue announced Jet Blue will be "first ever major airline to sell non-alcoholic beer at 35,000 feet." Jet Blue has 775 flights per day, 270,000 annually serving 30 mil domestic passengers. Starting today, Athletic's Upside Dawn will be available on all domestic flights. (This article appeared in sibling pub INSIGHTS Express yesterday.)
Less than 2 years after hiring Mike Parks as its first-ever outside CEO (see Aug 17 issue), Rhinegeist announced that CCO Adam Bankovich would step into interim CEO role as Mike left the co. Recall, co-founders Bob Bonder and Bryant Goulding hired Mike as they stepped back from day-to-day leadership roles, hiring him after a 4-mo search involving a "creative interview process engaging nearly 30 employees across departments and levels." Mike's background was in pizza and spirits, previously as CEO of TNT Crust pizza co and in different roles with Brown Forman and Diageo.
Spring Resets Expanded RTDs, Craft Reductions Vary by Retailer, Gavin Sez; MC Craft -8% in Scans
Retailers largely expanded shelf space for RTDs in spring resets, Molson Coors CEO Gavin Hattersley commented during co's 1st qtr earnings call this morn. But much of that space came "directly" from hard seltzers, he thought. Craft saw "some reduction," too, he said, tho that's "very dependent" on specific retailer strategies, so was "not consistent" across the board. He and other MC execs offered little other commentary on craft segment during today's call, when co offered more color on its 1% US shipments gain (driven by inventory build) and 1.2% depletions dip (-2.8% when adjusted for selling days) in Q1.
Founders Hit with Another Discrimination Lawsuit; Permanently Shutting Down Detroit Taproom
Founders Brewing abruptly closed its Detroit taproom yesterday, just hours after getting hit with a new racial discrimination lawsuit. But the brewer maintains that the decision was made after a "several year evaluation" and announced the closure to employees before it knew of the filing. Late Monday afternoon, a Black former employee named Naeemah Dillard filed a complaint alleging that she was subjected to "egregious racial harassment" while working at the company's Detroit taproom. Founders, of course, faced a similar suit in 2019, resulting in widespread backlash and promises of cultural change. But in lawsuit filed yesterday, Naeemah alleged that after 2 yrs working at Founders, "the work environment became so objectively racially hostile that she had no choice but to resign" last wk.
Tho global dairy giant Danone is deep in plantmilks via its acquisition of WhiteWave Foods, its venture arm has made its initial foray into animal-free dairy protein via minority investment in precision fermentation specialist Imagindairy. Israel-based co was founded in 2020 by Dr Arie Abo, who serves as chief technical officer, and Dr Eyal Afergan, its ceo, as AgFunder Network Partners summarized, and has raised $28 mil to date. Terms of the investment by Danone Manifest Ventures weren't disclosed.
Oatly took another step into American mainstream with announcement that it's signed multiyear partnership with Minor League Baseball that will have its frozen desserts and other items sold in 50+ ballparks and its branding viewed across all 120 parks. Oatly's whimsical marketing clearly was viewed as completely in synch with crowd-pleasing hijinks of minor league teams. "From bat dogs to iconic mascots, Minor League Baseball is all about fun, and Oatly is a perfect partner for us with their irreverent and fun brand personality," said Uzma Rawn, svp of global partnerships of Major League Baseball. In keeping with that shtick, Oatly has taken role as "the official oatmilk from Sweden that started like 35 years ago but is now all over America where it's promoting various kinds of frozen dessert products in one of those first-ever plant-based sponsor deals you know the kind we're talking about of minor league baseball." Oatly N Amer prexy Mike Messersmith promised that brand's activation will be completely in character. "Don't expect your average static logo in stadium, we're here to play ball," he vowed. "We'll see you in the oatfield." Signature offering at some stadium concessions will be non-dairy frozen dessert bars in Vanilla and Chocolate Fudge flavors. Recall that Oatly already is available at some Major League Baseball venues like Yankee Stadium, Wrigley Field and Globe Life Field in DFW area.
Little Saints, which has plied a canned CBD + mushroom cocktail range over past year and change, has made its first move into uninfused sector with St Mezcal, non-alc mezcal whose notable ingredients include robust 100 mg of lion's mane mushrooms along with Peruvian palo santo wood that first came on bev radar when harnessed by Dogfish Head Brewing years ago. Like the wine brand Proxies that we recently profiled (BBI, Apr 18), St Mezcal doesn't offer a de-alcoholized version of conventionally made mezcal but rather seeks to replicate effect and consumption experience by rethinking ingredient bill. Founder Megan Klein has enlisted newly established distribution arm of Boisson retailer to distribute both lines; they're also going into Boisson's stores. Given expensive ingredients, St Mezcal goes out at premium price of $49.99 per 750-ml glass bottle.