Beer Marketer's Insights

Beer Marketer's Insights

After closing out 2022 with depletions up 5% and climbing back over 100K bbls, Narragansett sped up further in early 2023. Total depletions grew 8% in 1st qtr, co shared today, building on 6% gain in Q4. And Gansett's core biz is driving the gain. Flagship lager depletions jumped 11%, led by draft and 12 pks, each +22%. That draft growth stands out as particularly strong, suggesting room for more on-premise recovery.

HUSA net revs "grew by a low-single-digit, driven by pricing and mix management, more than offsetting a mid-single-digit decline in volume," Heineken reported this morn, announcing global results. Yet US depletions for Heineken franchise improved and "grew by a low single digit, driven by the continued momentum of Heineken 0.0, up in the mid-teens and the launch of Heineken Silver." That HUSA's total shipments still down mid-singles even with rollout of Heineken Silver suggests co's other brands still pretty soft.

NA brewer Bravus, based in Anaheim, Calif, has opened up Indiana, Kentucky, Ohio, Texas, and NY, adding to footprint that already includes Calif, Nev, Ariz, Colo, Minn, Ill, Tenn, NC, Ohio, Penn, NJ, RI, Mass and Conn. Its new distributor partners are Gasko Meyer in NY, SKI Beer in NYC, Zink in Ind, Chas Seligman in Kentucky, Southeast Beverage and Ohio Eagle in Ohio, and L&F in Texas. Co likes to describe itself as "America's first brewery dedicated solely to producing premium non-alcoholic craft beer" given its founding in 2015 .

Following mantra of continuous improvement, Ghia alc-alternative has spent a year refining proposition of its 3-year old NA apertif. It's inaugurated more complex, concentrated formula made with custom proprietary extracts of ginger, orange and rosemary, and brightened liquid's color, all while maintaining same bitterness as prior iteration. Recipe now includes blend of white grapes for flavor consistency, replacement of fig for a combo of date, plum and rhubarb root to lend greater clarity to liquid, and the addition of those proprietary extracts for flavor concentration and clarity, per announcement. And it's now packed in proprietary bottle with striking ribbed glass and embossed slogan "Clear Eyed & High Minded." That design work was accomplished by creative team of Willo Perron and Brian Roettinger, whose other projects have included Rihanna's halftime show at Super Bowl. On sustainability side, the bottle's packaging, shipping packaging andother packaging elements are moving to 100% recycled and recyclable materials, including never-bleached cardboard. Subsequent efforts will include the swapping of existing inserts for materials constructed with customized fully compostable pulp trays so consumers can recycle every element of Ghia shipment. Founder Melanie Masarin noted that she's going contrary to common trajectory of dumbing down the ingredients and package in interest of scalability. A half-liter bottle good for 17 servings goes for $38. Co also offers canned spritzers.

Burgeoning of alc-alternatives has been a marvel to watch, but at Consumer Edge Research, Brett Cooper is pointing to softening velocity as one area that needs to improve. In recent report Brett noted that Q1 brought growth in mid-20s, "with non-alcoholic beer being the vast majority of the market at 90%+ share." That growth "is besting that of beer by roughly 25 points and non-alcoholic beverages by 15 points," he noted, pointing to segment that revved up in 2019 when premium Heineken 0.0 hit US market.

Spinoff from Toronto-based vinegar maker Acid League called Proxies has adopted unusual "reverse tasting-note engineering" approach that, rather than de-alcoholizing wine, blends wine grapes, fruits, teas, spices, hops and complex ferments into non-alc liquids that mimic the acidity, body and tannin profile of conventional wine. Out barely 2 years, it's already developed varied red, white and rose entries in dizzing profusion of 60+ offerings so far, some crafted by Proxies team on its own and some with distinguished chefs and sommeliers like Sean Brock and Andre Heuston Mack. "Three new ones every month - we didn't realize how crazy that was," reflected cofounder/prexy Charlie Friedmann in interview yesterday. Tho founders had less interest in doing sparkling wines than still wines, consumer demand has lately coaxed them into entering that segment too.

Best Day Brewing, which has moved into #2 spot among NA craft beers in its Calif base, is into a new capital round after seed and Series A rounds and prepping to hit East Coast after forays into Texas and Midwest. "Brewed by doers for doers," as side of cans declare, it's partnered with Life Time Fitness and Professional Pickleball Assn to get cans into hands of the active types it's targeting. The push is being masterminded by team of seasoned beer and Red Bull execs recruited by founder Tate Huffard, who was new to beer biz at time he launched in late 2021 after 5 years of experimentation.

Average price hikes eased slightly in CSDs, bottled waters, RTD teas while edging a bit higher in energy drinks, sports drinks and sparkling flavored waters, per latest NielsenIQ data for 4 wks thru Apr 8, reported by Goldman Sachs. Some volume gains could be impacted by an earlier Easter holiday weekend this yr (Apr 9 vs Apr 17, 2022), noted Bonnie Herzog.

Denver-based Great Divide Brewing will open its 5th overall outpost, adding a 2nd Great Divide Brewery & Roadhouse in partnership with restaurant operator Vibe Concepts. New location is coming to Lone Tree, CO, potentially by end of this yr, Denver Post reports. But recall that the regional brewer already opened a Roadhouse location in Castle Rock, CO, licensing out operations to same partner (see June 2, 2020 issue).

In GA, NoFo Brew Co acquired Tantrum Brewing "for an undisclosed amount" as it takes on the co's assets and brands along with its 10K sq-ft brewery and hospitality site, reported Just Drinks. NoFo expects to operate at the Tantrum location in Cleveland, GA by latest this summer, and will mark its 3d location in GA including another facility opening in Gainsville, GA this summer plus its main operation in Cumming, GA. Tantrum opened in 2019 and faced "a tough first year" during the pandemic, Just Drinks acknowledged citing the family founders. NoFo also opened in 2019 as a brewery and distillery, and seemingly has been able to weather the pandemic (and competitive) storms, with eyes set on in-state expansion. NoFo rose to 1,200 bbls in in 2021, according to Brewers Assn estimates.