Beer Marketer's Insights
Mar BPI Neutral at 50; Welcomed Shift Toward Stability; FMB/Seltzer & Craft Orders Still Down Big
March reading for NBWA's monthly Beer Purchasers' Index (BPI) landed at an even 50, indicating stable distrib orders despite underlying segment shifts. While BPI doesn't reflect recent softness in scan volume, it "shows a continued shift towards a more predictable environment for the beer industry in 2023" after "several tumultuous and unpredictable years," org wrote in release. (Recall, readings above 50 indicate expansion; under 50 indicates contraction.) Mar BPI dipped slightly vs 54 index in Feb. But still far better than 8 straight mos of shrinking orders before that. Index ratio of BPI to At Risk Inventory also trended toward neutral (50/51), another possible sign of stability, NBWA noted.
Imports continue to gobble up share of beer in latest 3 mos ending Feb 2023 (even while posting a softer shipments trend than domestic taxpaids in Jan), Beer Institute veep of research Danelle Kosmal shared in State of the Industry presentation today. Beer depletions slipped 2.9% for 3 mos thru Feb, yet imported beer depletions rose 3.3%, snagging 1.3 share of volume, BI estimates (excluding hard cider, non-alc and some imported beyond beer products). Mexican imports continue to drive growth and now make up nearly 80% of total beer imports; up from just ~40% as recently as early 2000s and under 20% in 1990.
Plaintiffs Seek Summary Judgment that Oregon Law Discriminates Against Out-of-State Brewers
Crunch time is coming. This mo, 3 Washington state brewers and an Oregon consumer re-upped their claims against the state of Oregon, asking a federal judge to rule that state law unconstitutionally discriminates against out-of-state brewers. The brewers seek both direct-to-consumer (DTC) shipping and self-distribution privileges in the state, recall. State laws barring non-OR brewers from those practices violate precedent set by 2005 Supreme Ct ruling in Granholm on direct wine shipping, these plaintiffs argue.
As Athletic's Off-Prem Biz Doubles, On-Prem Now Over 10% of its Volume and Growing Faster
While Athletic Brewing's off-prem biz keeps doubling to start the year (with nothing but NA beer), on-premise sales are now over 10% of its volume and growing even faster, founder & ceo Bill Shufelt and comms chief Chris Furnari shared with CBN. Athletic grew 145% in the on premise for 2022 and is accelerating thus far in 2023. Co's already in over 10K bars and restaurants, expecting to be in 15K+ after spring, with growth in that channel just "screaming for us," Bill added. And that's before its draft beer pilot program even gets off the ground.
Control the Controllables, Bart Sez in CA & NY, Showing Shades of 2019; BA Craft Lookin' Flattish?
Much like the factors driving strong growth during the first half of the last decade, the challenges now facing craft brewers individually and craft beer collectively are many, varied and impact different players in different ways. But much of it isn't new, Brewers Assn economist Bart Watson explained during a pair of craft gatherings on opposite coasts last wk. The "slowing, changing, fracturing" growth trends were already apparent in "the way back of 2019," he commented during the California Craft Beer Summit in Sacramento early in the wk and reiterated at the New York State Craft Brewers Conference in Albany on Friday.
Jerry Steinman lived a long, full life and passed away on March 25th at 99 years old. Jerry was an innovator and entrepreneur, who founded Beer Marketer's INSIGHTS (Craft Brew News' parent co) in 1970. Back then, his 4-page, twice monthly print newsletter, later known as the "orange sheet," arrived as a truly trailblazing vehicle that kept people throughout the industry informed about the totality of the beer biz, not just their local market or company. "He was revolutionary," said consultant Mike Mazzoni. "He connected the whole industry, linking everyone together," added Mike. "He was miles ahead of everyone else." Former longtime Coors and Molson Coors sr veep Rob Klugman noted: "I cannot think of anyone who did more for the US beer industry. Any industry that has a knowledgeable and honest observer/chronicler is a fortunate industry. The US beer industry had Jerry."
Jerry Steinman lived a long, full life and passed away on March 25th at 99 years old. Jerry was an innovator and entrepreneur, who founded Beer Marketer's INSIGHTS in 1970. Back then, his 4-page, twice monthly print newsletter, later known as the "orange sheet," arrived as a truly trailblazing vehicle that kept people throughout the industry informed about the totality of the beer biz, not just their local market or company. "He was revolutionary," said consultant Mike Mazzoni. "He connected the whole industry, linking everyone together," added Mike. "He was miles ahead of everyone else." Former longtime Coors and Molson Coors sr veep Rob Klugman noted: "I cannot think of anyone who did more for the US beer industry. Any industry that has a knowledgeable and honest observer/chronicler is a fortunate industry. The US beer industry had Jerry."
Monster Beverage has appropriated the "super coffee" designation for 2 new members of its Java Monster line in Europe - to dismay of functional coffee brand Kitu Life Super Coffee that's worked hard to popularize concept in US. Claimed to be "literally years in the making," per post from sr dir Rob Bardetta, Java Monster Super Coffee is positioned as "coffee done the Monster way! Premium coffee + milk, brewed with killer flavor, supercharged with Monster Super Coffee Herbal blend." It's targeting C&G channel in Mean Bean and Loca Moca flavors.
Setting stage for Pepsi-Cola brand's 125th anniversary hoopla next year, PepsiCo took wraps off today of new logo and visual identity system, first significant change to its globe logo in 14 years. The revamp "pays homage to the brand's rich heritage while taking a big leap toward the future," per announcement, flagging brand's commitment to "moments of unapologetic enjoyment" by levering greater movement and animation. New look breaks in US this fall, then rolls out globally next year as brand hits its big milestone. Among key features of makeover, Pepsi globe and wordmarkare given greater flexibility to slot better into various settings, physical and digital, while an updated color palette adds electric blue and black to mix "to bring contrast, vibrancy and a contemporary edge to the classic Pepsi color scheme." The black note is particularly significant given role of Pepsi Zero Sugar in reigniting growth in core trademark. And given brand's strong connection to music, its signature Pepsi pulse "evokes the 'ripple, pop and fizz' of Pepsi-Cola with movement." 
No guts, no glory? Gut-health brand Lifeway Foods closed out a strong 2022 with 16% sales gain in Q4 as committed consumers continued to buy its branded kefirs despite LWAY's need to take pricing to counter inflationary pressures on milk, packaging and freight costs. Net sales in Q4 rose 15.7% to $35.84 mil. Gross margin widened to 22.1% from 19.3% a year earlier. LWAY eked out $1.96 mil in operating profit vs $406K a year earlier. For full year net sales rose 18.9% to $141.57 mil. Operating income narrowed by more than half to $2.35 mil from $5.88 mil. "Quite simply, we crushed it in 2022," exulted ceo Julie Smolyansky in pre-recorded comments issued yesterday afternoon. She said co grew volume as well as $$ sales tho she didn't provide specifics and co no longer takes questions from investors. Acquisition last year of Glen Oaks dairy in Calif in Q3 2021 accounted for 18% of full-year topline gain, per 10-K filing.