Beer Marketer's Insights

Beer Marketer's Insights

Soft craft trends in 2022 stuck so far in 2023, with segment $$ sales off 2.2%, -0.7 share of beer in NielsenIQ off-premise scans YTD to Apr 1. Brewers Assn-defined craft production held essentially flat at 24.3 mil bbls last yr, org reported this wk. (That's materially better than our estimate for craft shipments, a different measure of a different set of brewers & brands.) BA counted 9,552 operating craft breweries for all or part of 2022, org's chief economist Bart Watson shared, noting just over 500 openings and over 300 closings. While he keeps expecting the closing rate to rise above 3% of operating breweries, "brewers keep defying" that. Reports of closings and sales to new owners picked up early this yr, tho, with a growing number of equipment and facility auctions. Lotsa excess capacity still sitting around.

Heineken USA volumes declined by a mid-single-digit in Q1, co reported this wk. That's roughly same pace as FY 2022, in which co was hampered by supply chain disruptions. But net revs and brand Heineken's depletions both grew by low-single-digit in most recent qtr. Premiumization and pricing pushed net revs positive, while Heineken depletions growth driven by 0.0 up "mid-teens" and launch of Heineken Silver. Several large distribs say Silver got good distribution out the gates. Remains to be seen how much it can sway HUSA's trends in the long run, but in Mar Nielsen data, Heineken Silver's incremental $1 mil more than made up for Heineken Light's 18%, $425K drop.

Distribs left AB's SAMCOM meeting in Jan feeling more hopeful than they had in years. AB was finally going to devote resources (5x last year) to its biggest brand Bud Light, after a long drought, with a campaign aimed at elevating the brand and expanding its audience. The Super Bowl ad with Miles Teller marked a fresh start, a new and better direction, almost all believed. Early results were at least somewhat encouraging. Bud Light posted a better trend and lost less share than last year in Q1. Volume down 6% yr-to-date thru Mar 26 in IRI multi-outlet +convenience, compared to 9% last yr.

A day after we wondered whether Minnesota offers a glimpse of what the future might look like for cannabevs, Cannabis Beverage Assn chair Diana Eberlein weighed in with her own account of a current trip to Gopher State. No question, Diana (whom we quoted yesterday from a convo earlier this year) is a biased observer, selling cannabis extracts for Sorse Technology and lobbying for regulatory opening. But account she posted on LinkedIn offers an idea of what texture of social life might be like if THC-infused items were freely available. As we noted yesterday, Minn regs allow only for low-dosage items using Delta 9 hemp variant, and Eberlein admits she has "mixed emotions" on that feature.

Maybe most moving part of BevNet Live agenda this past Dec was when entrepreneur Quentin Vennie described how he and his wife Erin created recipe for Equitea as a way to ease their son's struggles with ADHD. At event, it was revealed that actor and wellness guru Gwyneth Paltrow has been key partner in launch (BBI, Dec 6). Today, BevNet editor Jeff Klineman posted that their son, Chris, has died tragically at age 17. Friends and associates have launched GoFundMe drive to help family with expenses.

Olipop has signed its first pro sports sponsorship, aligning with women's soccer team Kansas City Current, a small step on way to challenging CSDs in all the arenas they play in. "Our goal has always been to go toe-to-toe with legacy soda brands in places like sports stadiums and arenas, and this is our first major step in that direction," said growth dir Steven Vigilante. For Current, which has resisted allure of brands deemed not to be nutritional, Olipop becomes first soda partner, receiving official partner status along with use of marks, in-game signage, hospitality and social posts.

Outside of its Texas base, NY has emerged as biggest market for Nutrabolt's C4 Energy thanks to efforts of early DSD partner, Big Geyser. No surprise then that Austin-based co wielded big team for 2d of distributor's internal expos, this one on Long Island after earlier one in NYC (BBI, Apr 10).

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This week in 1984, Heileman's Russ Cleary was blasting Miller and Stroh for deep discounting. Philip Morris (Miller owner) was "taking the low road" with pricing on Milwaukee's Best, "or Milwaukee's Worst, depending how you look at it," said Russ. MB was "priced substantially below cost in some markets," he told Milwaukee Journal. "You couldn't put water in cans and sell it for $2.93" per 6-pk, added Russ. Unfortunately, Heileman will have to "selectively meet that pricing in some markets," he acknowledged.

One of the OG flavored malt bevs is ready for not just a refresh but a "reinvention." Smirnoff Ice is rolling out new pkging across its entire portfolio, alongside new nationwide campaign starring comedian & former Daily Show host Trevor Noah. Recall, Diageo Beer Co teased Smirnoff Ice revamp back in Sep, and prexy Rodney Williams recently shared that Trevor signed on as brand ambassador. But this is a "huge moment for the brand" and the biggest campaign since its launch 23 yrs ago, brand dir Lisa Lee shared in chat with INSIGHTS.