Beer Marketer's Insights
Monster's new Beast Unleashed FMB brand family surged in limited distribution to become the top innovation so far in 2023 in tracked off-prem channels, tho Modelo Oro is ramping up too. Beast Unleashed hit $11.1 mil in sales from over 292K cases and Modelo Oro at $8.1 mil from 226K cases YTD thru Apr 16 in Circana multi-outlet + convenience data. Avg prices around $38/case and $36/case respectively. In each of the latest 4 wks, both brands were at very similar $$ levels: Oro posted $986K, $1.16 mil, $1.44 mil and $1.56 mil vs Beast Unleashed at $1.07 mil, $1.16 mil, $1.45 mil and $1.59 mil for weeks ending Mar 26, Apr 2, Apr 9 and Apr 16. Beast Unleashed category weighted distribution ramped up from 19% to 26.4% in that period as Oro's CWD rose from 34.5% to 44.7%.
Since the beginning of April, Bud Light volume drops have steadily worsened from -11% in the week thru Apr 8 to -21% in the week thru Apr 15 and a whopping -26% thru Apr 22. That's about 1 mil cases lost in just the latest week in tracked channels. All figures are NielsenIQ data from Bump Williams Consulting. Talking to distribs last week, week 4 of this crisis not really any better.
Gallo Buys Fishers Island Lemonade RTDs
The #1 vintner's Spirit of Gallo unit is on the march in RTD space, announcing acquisition of Fishers Island Lemonade "a female-founded beverage brand" that was "trailblazer" in RTDs and "one of the first premium craft cocktails packaged in a can." This small premium brand with its "one-of-a-kind full-flavor taste profile of barrel aged whiskey and premium vodka," has a suggested retail price of $15.99 per 4pk. It is currently available in 14 states, according to Jan release that said it expanded to VT with Farrell Dist. Unknown how it did in untracked channels, but Fishers Island got $6 mil of revs, down 20% in 2022 in NielsenIQ data shared by Bump Williams Consulting. It was #24 RTD spirits brand fam overall in 2022. Some of its Northeast mkts big in non-tracked channels.
Indie UK Brewers +5% in 2022, But Many in "Survival Mode"; Consumer Trend Upsides, Downsides
The average indie brewer in the UK increased production 5% to a bit below 3,700 hectoliters (just over 3,100 bbls) in 2022, the Society of Independent Brewers (SIBA) reported this mo. But that's still 11% below avg 2019 volumes and down closer to 20% from 2016. SIBA counted 1,828 total breweries in the UK, and SIBA membership dipped 3% from 702 to 684, it reported. While over 60% of the org's members expect to increase overall sales in 2023, an identical 63% also said that "survival" is one of their top priorities at the moment.
With over 40K bbls of capacity and its 11th taproom on the horizon, Asheville, NC's Hi-Wire Brewing will soon expand into spirits as well. The regional brewer is launching a speakeasy-style tiki bar as a licensed distiller, serving in-house brands of rum, gin, vodka and bourbon, Asheville Citizen Times reports. Co's "Tiki Easy Bar" is slated to open behind its South Slope facility this July, after Hi-Wire bought the building last yr (which it previously leased). And it's considering selling spirits at retail, article notes. "I think a lot of breweries out there are starting to see that you should be diversifying," said co-owner Chris Frosaker, adding that "to stay relevant as a company and going forward in this crazy beverage environment" Hi-Wire must "continue to modify and push the envelope."
A "first-of-its-kind organization," The National Black Brewers Association (NB²A), officially formed late last year with the purpose of promoting and building up the Black brewing community in the US. The org was uniquely spearheaded by former NBA star point guard and former Sacramento Mayor Kevin Johnson, who's owned Oak Park Brewery in Sacramento for 4 yrs. (Goin' out on a limb and guessing KJ's the only beer industry member who's dunked on Hakeem Olajuwon!) Kevin caught the "beer bug" in Sacramento even tho "I don't even drink," he told CBN in recent chat. As he traveled around the country seeking out more Black-owned breweries, Kevin determined "my contribution" can be to "spearhead this organization for a year" and "really hand it off" to more people "doing great work."
Lost Abbey Lands Alt-Prop with Mother Earth Brewing in CA; 2 Yr Agreement Offers Long-Term Oppy
The Lost Abbey has found a new home. After announcing plans to scale back operations and exit its San Marcos facility, co entered into an alternating-proprietorship to brew and open tasting room at Mother Earth Brewing Co (MEBC) in Vista, CA, San Diego Beer News reported. That location was MEBC's headquarters until 2016, when it opened an outpost in Idaho with a larger brewing component. But co upgraded "nearly every facet" of its Vista brewery earlier this yr, "making it a particularly attractive landing spot for The Lost Abbey."
BrewDog USA hired John Graham, a former Dutch Bros Coffee chief marketing officer, to take over CEO role as Jason Block, who held the role for over 3 yrs, left the company to pursue other oppys, Columbia Business First and other media outlets reported. Notably, Jason Block was paid $228,563 in 2022, according to co's annual filing.
Urban South +15% YTD; Juvie Juice Hard Iced Tea #4 SKU; Perfect Plain & New Distribution Boosts
New Orleans-based Urban South Brewing surged 15% YTD as several newer initiatives and continued growth of core brands and in home mkt more than offset tuff hard seltzer/longer tail drops, co-founder Jacob Landry shared with CBN. Between just-launched Juvie Hard Iced Tea, new distribution in Houston and Florida panhandle and its acquisition of Perfect Plain, plus "continued growth in New Orleans" and Paradise Park lager, that's added up to a strong start to the year, he noted. On-premise sales continue to grow but remain well behind pre-Covid mix. Currently at 25% draft and 75% packaged vs closer to 40% draft pre-Covid, Jacob added. But net-net, if this pace keeps up, Urban South would reach 23-24K bbls for the year. Co's in the process of a 40% cellar increase to bolster capacity too, giving the company runway to make 30-40K bbls/yr.
Sam Adams & Dogfish Down in Q1; But Sam Adams "Holding Its Own"; NAs +66%; Dogfish RTDs +70%
Both Sam Adams and Dogfish Head brand fams saw depletions and shipments decline in Q1 2023, Boston Beer shared on its Q1 conference call yesterday evening. Yet Sam Adams is "holding its own in a difficult craft beer category" and co will "continue to invest behind our new remastered Boston Lager campaign and our Seasonals." Plus, non-alc portfolio is collectively up 66% with Just the Haze and new Gold Rush pils. And Dogfish Head Canned Cocktails grew 70% all-channel in Q1, CEO Dave Burwick shared.

