Beer Marketer's Insights
Alkaline Water Co said its 1-gal and 3-liter packs are going chainwide thru Kroger and all its banners, move that adds 1,141 new doors to footprint there. The move into 5 new Kroger divs, including Fred Meyer in Pac NW, means brand will be available in nearly 2,300 stores operating under 28 banners in 35 states. Expansion commenced late last month and should be complete by late Apr . . . PepsiCo has launched eighth annual edition of its Greenhouse Accelerator program with a twist: this year it's targeting food & bev concepts developed by Hispanic community under name Juntos Crecemos ("Together We Grow") . . . Moringa marketer Kuli Kuli seems to have pulled the plug on its 4-year-old refrigerated wellness shot line. Email blast to its shoppers advises that "we're saying good-bye to our last 1,000 wellness shots," offering 50% discount to those who respond by Fri. Discount code is "BYESHOTS." Items debuted in 4 functional varieties in summer 2019 (BBI, Jun 28 2019).
Over the next year or so, venerable Pac NW craft brewer Deschutes will significantly ramp up its participation in the burgeoning NA beer segment. It's commissioning new in-house, dedicated non-alc production equipment by partnering with Colo-based Sustainable Beverage Technologies (SBT), co announced this week. But bigger change is afoot for the Bend, Ore-based craft stalwart, ceo Peter Skrbek explained to our sibling newsletter Craft Brew News. The strategy is emblematic of struggling craft players who're being driven to broadening their revenue base. One key exec addition to making new vision happen is cmo Julie Galbraith, Campari and Pernod Ricard vet who's more recently had yearlong runs at NA players Pressed Juice, Riff Coffee (launched by Crux Fermentation beer vets) and Philz coffee chain.
It's a relatively new phenomenon: early-stage bevcos that from the start are aiming to be multi-segment players, sometimes straddling alc and NA sides of aisle, rather than incubating single brand and maybe adding on brands as core brand builds scale. (That's model that Vita Coco, for instance, is following.) True, earlier efforts like that of New Age Beverage ended up foundering, but those often were undercapitalized and accumulated brands that already had been around the block a few times. Among new breed of multibrand players, publicly traded Splash Beverage, yesterday offered a glimpse of how this model is unfolding in discussing its recently released Q4 and full-year 2022 results.
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Clarification
Heineken Silver inventories are healthy across the US and haven't been impacted by co's decisions to cut low-volume SKUs and draft distribution to 5 states, it sez. Those moves are meant to streamline supply for core products, and HUSA's overall supply improved to start the yr.
Heineken is extending another one of its beer brands into RTD Spirits. It's rolling out Red Stripe Rum Drinks as canned rum cocktails in FL and "select markets across the northeast starting now through the spring," co announced. Brand is available in Rum Punch and Rum Mojito flavors at 5.9% ABV per 12oz slim can. It joins Dos Equis Margaritas and Dos Equis Tequila & Soda among Heineken's RTD spirits offerings, as co eyes oppy to bring beer brands into that space.
This is fresh development on a couple of fronts. A craft brewer's distribution arm will add a potentially hot spirits RTD in VT. Recall, law changed last yr that will allow RTDs to be sold in groceries, c-stores and gas stations in what used to be strictly a control state. Lawson's has self-distribution arm called The Beer Guy, which heretofore has only sold Lawson's products. But it announced today that starting next week it will sell Barr Hill's new gin & tonic RTD in VT, calling Barr Hill "the most awarded gin" in US and "#1 gin in" VT.
Boston Beer Testing Malt-Based, Cocktail-Style Bev Aimed at C-Stores: Slingers Signature Cocktails
Tho Boston Beer is already bettin' big on RTD spirits with Truly Vodka Soda and Dogfish Canned Cocktails, it's now testing malt-based Slingers Signature Cocktails tailored specifically to c-stores. The 8% ABV cocktail-style FMBs will debut in 24oz cans with pricing that "won't break the bank," co announced, hitting shelves this mo in Cleveland, Pittsburgh and select areas of New Hampshire. They're available in 3 "recognizable flavors, Bahama Mama, Peach Screwdriver and Pineapple Punch." And brand was "carefully crafted to capitalize" on growth of RTDs and "the growth of higher-ABV offerings," announcement notes.
Even with all the cost pressures it faced, Constellation was still able to increase its marketing spend significantly in latest fiscal yr, "a $55 million or nearly 9% increase in marketing spend related to incremental investments in sports sponsorships," cfo Garth Hankinson said on conference call. On top of it STZ, increased other SG&A $48 mil, 14% "driven by incremental sales support to align with the momentum of our beer brands." Even with sizable increases, STZ was "still within our 9-10% range as a percentage of net sales." That suggests STZ spent roughly $700 mil on beer mktg (net revs at $7.46 bil) in fiscal yr ending Feb 23.