Beer Marketer's Insights
NJ Deal: Cape May to Acquire Flying Fish
Sign o' the times in NJ craftland. Newer #1 in-state craft co Cape May Brewing struck deal to acquire longstanding NJ craft brewer Flying Fish, a company that's operated since 1995 but sold majority stake to new owners in 2016 and faced tuffer trends in recent yrs. Deal expected to close next mo. Cape May plans to combine the two brands under one company while utilizing Flying Fish's brewing capacity, manufacturing capabilities and warehouse space "to support the expansion of its product portfolio," per release. "As part of the agreement," Flying Fish will maintain its current distribution footprint in NJ (and PA and DE) rather than look to consolidate the brand into its Cape Beverage NJ distrib operation, co assured.
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Molson Coors went with wine and spirits distrib Breakthru statewide in FL for its Five Trails Whiskey brand, not its Molson Coors distribs. One distrib "disappointed," but another noted that beer distribs basically don't sell much in way wine and spirits in FL and so it would be a heavy lift for them. Then too, Five Trails starts off as a small proposition in a sea of spirits brands.
Non-alcoholic beer, wine and spirits grew 26% to $462 mil for 52 wks thru Apr 8, 2023 in NielsenIQ channels, amounting to 0.5% of total alc bev $$ sales, Nielsen shared with INSIGHTS via NA deep dive deck. The category is still dominated by NA beer, which grew 25.5% and made up 85.2% ($394 mil) of total NA sales for period. Spirit NAs grew fastest, up 88%, but remain just 2.4% of total NAs while NA wine grew 19% but lost share of NAs to 12.3%.
FL Dept of Biz Filed Administrative Complaints Against Blue Cloud Alleging Violation of 2 Statutes
Another state is pushing back against Pepsi's Blue Cloud Distribution. But this time it's coming from a state where Blue Cloud's been licensed for quite some time, one of initial 3 mkts where Hard Mtn Dew launched. Florida Dept of Biz and Professional Regulation (DBPR) filed administrative complaints against FL Blue Cloud alleging violations of 2 statutes, INSIGHTS understands. First count alleges that Blue Cloud submitted "material misstatements" on its application for licensure as an alc bev distrib in the state, regarding "disclosure of all parties holding a direct or indirect interest" in its biz. Second asserts that Blue Cloud violated "prohibited interests" FL statute "by being an affiliate of Pepsi, an affiliate manufacturer of Hard Mountain Dew." (Recall, Blue Cloud sez that Boston Beer is sole mfr of Hard Dew while Blue Cloud is only the distrib.)
In interview with Financial Times, ABI ceo Michel Doukeris discussed how he prioritizes organic growth over the long term. "Rather than looking five years ahead," FT wrote, Michel "is pushing colleagues to plan for what suppliers, retailers and consumers may want in a decade." Michel stressed: "I'm here for the long term. I will not rush through decisions…We will do things that will last." No surprise that interview addressed Bud Light boycott situation too. "Doukeris says it is 'outdated' to think companies such as his can remain insulated as societies' expectations of them get louder." FT added: "he has so far managed to avoid being the face of the Bud Light story and says he and his company try to avoid taking sides on too many potentially polarizing issues." Michel walked same non-committal line as AB ceo Brendan Whitworth as he told FT: "I might have an opinion, but it's not necessarily [the case that] the company should be out there talking about everything. I am a little bit shy, let's say, as a CEO, so I don't talk a lot."
AB increasingly soft in scans across the board amid continued toxic Bud Light/Dylan Mulvaney situation and volume seemingly going to several key competitor brands. AB volume slipped 6% for 4 wks thru Apr 15 in NielsenIQ channels. Now down 4.5% YTD. Dollars still much healthier, down just 2% for 4 wks and up 0.4% YTD with avg price/per case up 4% for 4 wks and +5% YTD. Tho AB starting to get less of a bump from pricing vs other top suppliers as MC avg price/case rose 5.4% for 4 wks, Constellation +4.5% and Mark Anthony, Boston and HUSA each +5%. Something to keep an eye on: INSIGHTS already hearing about current and upcoming pricing activity in several states.
Good human interest beer story and we need those right now. NBWA chair Gordon Green (who is a Molson Coors distrib in OK) kicked off NBWA board meeting yesterday, prior to NBWA Spring Legislative Conference, by noting that NBWA board always checks "brand hats at the door." And in keeping with that tradition, he offered his friends in the Red network a Bud Light toast, and he was joined by NBWA officers. Gordon said "we stand with you," calling attacks "misguided." He also noted that in today's age of social media, such attacks could pivot to another co "in a flash." And so all distributors needed to toast together and stand together. Nice moment of unity in fractious times, which set a good tone for the upcoming Spring Leg Conference.
Join us for the 2023 Beer Insights Spring Conference, coming up May 17-18 at the Four Seasons Chicago. Our jam-packed agenda will feature a "Blunt Talk on Non-Alc Bevs" panel including: Chris Hall, CEO, Poppi; Ken Sadowsky, Executive Advisor, "The Beverage Whisperer"; Tom Hicks, CEO, Zico Rising; ex-Monster Bev along with BBI Editor Gerry Khermouch.
Gut pop Olipop has landed significant foodservice operator: Sweetgreen fast-casual chain, which has picked up its Lemon Lime and Vintage Cola flavors, which sit alongside bev array that also includes SG private-label bottled teas, Spindrift seltzers, Health-Ade Kombucha and Proud Source aluminum-bottle water . . . Icelandic Glacial has entered all 27 stores operated by Gelson's in Southern Calif. Retailer is picking up its half-liter, 1-liter and 1.5-liter bottles . . . Defy, the performance line launched by NFL great Terrell Davis, has placed its Boost + Immunity and Alkaline Water entries into John Lenore house in San Diego . . . Plezi kids' drink incubated via LA Libations has entered 1,800+ Target stores . . . Bizzy Cold Brew bottled line has entered Kroger stores in Atlanta, Cincinnati and Columbus . . . Under its new owner Bolthouse Farms, Evolution Fresh cold-pressed juice brand is entering Canadian market via presence at Canadian Produce Marketers Assn show. Bolthouse, itself reacquired from Campbell Soup, acquired Evo Fresh from Starbucks, another strategic disaffected by complexities of cold-chain juice brand.