Talk about regulatory guidance changing on a dime. Texas ordered bars that generate 51% of revs or more from alcohol sales to close in late June, recall. But one of biggest craft breweries in state, Houston's Saint Arnold, operates large outdoor beer garden and restaurant that it figured was in the clear given sizeable food sales. Not so, a Texas Alc Bev Commission agent broke news to founder/owner Brock Wagner last Friday, Houston Chronicle reported (among many others). TABC received a complaint (from whom?) that Saint Arnold was violating state orders. How so? Cuz Tex decided to count not just beer sold at on-site restaurant, but also tens of thousands of bbls sold thru distribution. So yesterday, the brewery went back to curbside pickup and drive-thru sales. Tho Brock trying to appeal to state to change the way it's doing the math, no change yet. So co may lay-off some 75 restaurant employees, he pointed out. State already facing lawsuits against 51% rule, recall, which is keeping gov's office quiet, per update from the Chronicle.

Expanding orders issued to on-premise retailers in certain counties at end of June, California Governor Gavin Newsom ordered all bars without sit-down dining to close and many others bizzes to stop offering indoor service yesterday. This second shutdown is precisely the outcome many of the state's hundreds of breweries and brewpubs feared, creating another hurdle to getting their bizzes back on track. Socially distanced outdoor drinking is allowed only with dining, if food can be ordered in same transaction with alcohol, according to the gov's order, forcing breweries without food menus back to to-go-only models. Surging case numbers in CA and many other states contribute to a regulatory whipsaw that challenge even the most sound small brewing bizzes.

As access to packaging resources remains tight and certain new brands took off more than others, Molson Coors made "difficult decision to hibernate Saint Archer Gold," its craft-derived Mich Ultra fighter, while "accelerat[ing]" Blue Moon LightSky, Vizzy hard seltzer and coming Coors Seltzer, co shared in letter to distribs. (A version of this article also appeared in INSIGHTS Express.) "While early results of the [Saint Archer Gold] launch were positive, the effects of coronavirus on our industry caused an immediate loss of momentum for the brand, due in large part to not being able to execute critical brand activations and trial driving programs that were at the heart of our launch plan," CMO Michelle St Jacques stated in letter. Co will sell thru remainder of Saint Archer Gold volume and "will not be entering into any new marketing or media programs for Saint Archer Gold" aside from "commitment to the 'Seek Gold' program launched during the ESPY awards." Rest of its mktg budget, which was set to be $30-mil for the yr, will be redirected "to our other innovation brands as quickly as possible."

Beer-centric casual dining chains, with or without on-site brewing ops, already faced serious challenges prior to COVID-19. While many US breweries have hung on so far, some of the country's oldest brewpub chains announced location closures, while other chains continue to move thru difficult bankruptcy proceedings. In addition to closing a Portland, OR-area RAM-branded pub (see Jun 23 CBN), the RAM Restaurant group recently closed 4 of its 5 Colorado-based C.B. & Potts brewpubs, Westword reported last wk. A 5th outlet in the state, located at a Fort Collins golf course, was sold to a "long-time partner," Kevin Sheesley, RAM CEO (and son of co-founder) Jeff Iverson Jr shared. That location will continue as the sole Potts-branded outlet.

Haven't been as many of these kinds of cross-collabs between craft beer and larger cos outside of the industry in 2020, especially since Covid-19. But Danish brewer Mikkeller and Burger King are teaming up for a new non-alc brew overseas in Denmark and Sweden for starters, lookin' to capitalize on "fast growing" alc-free beer trends in Europe. "The Kings Cup" is descirbed as "full-bodied and non-alcoholic summer beer," designed to pair with 2 new burger offerings from "Burger King's World Gourmet Series" there. Mikkeller founder, Mikkel Borg Bjergso, spoke to ability to "reach a different audience" and further "democratize high quality craft beer" and "raise the overall standard of beer." Craft beer movement continues to try and broaden its tent in new ways.

Even as the craft industry faces some of its tuffest times - particularly for smaller, taproom-dependent cos - dozens of new breweries continue to open up across the country. And it ain't just newcomers; that includes plenty of taproom expansions as well. Yesterday, Asheville-based Hi-Wire Brewing announced expansion plans for its 5th taproom, this one in Wilmington, NC. The 7,920 sq ft space "will include two outdoor beer gardens and a 24-tap bar" featuring 21 Hi-Wire beers on tap and 3 taps for wine. Co credited local distrib Coastal Beverage for its growth in Wilmington since 2015, which "gives us the confidence to move forward with another ambitious expansion project despite the uncertain times we are living in," said co-owner Chris Frosaker. And earlier this week, Big Storm Brewing Co announced it'll open up a new brewpub at the Amway Center in Orlando (where the Orlando Magic normally play). The 5,000 sq ft location will mark co's 4th in FL, featuring kitchen service, onsite brewing, and entrances from both inside and outside the stadium so it can remain open year-round, not just event days. Big Storm hopes to open the location by end of yr now that Orlando City Council approved their 10-yr lease.

It's not very big (or even close), but SouthNorte is seemingly spending money like a prominent regional brewer (or larger?) with new campaign dubbed "A New Frontier in Beer," co announced. New 30-second ads, available in both English and Spanish) clearly play up duality of Mexican/Hispanic and American cultures in SoCal. Ads were created by GALLEGOS UNITED ad agency under direction of new mktg veep Breanne Heal, who comes from Constellation and Diageo USA background. And media buys include "Connected TV, local San Diego NBC, FOX and Univision, as well as Univision digital properties," set to air "regionally in San Diego," per release.

Golden Road founder Meg Gill has been promoted to marketing veep of the entire Brewers Collective, effective July 15, co announced internally. Meg will report directly to Brewers Collective prexy Mika Michaelis. This marks first time an acquired brewery founder rose in exec ranks within AB beyond the "founder/advisory" role. Meg will oversee "all marketing efforts for Brewers Collective's 13 craft breweries + 'Beyond Beer' brands, including "brand strategy, insights, media, experiential, innovations and in-house creative," co wrote. Meg also will continue within same "founder/ advisory role" for Golden Road. Recall, Brewers Collective includes 11 acquired craft brewers - Elysian, Goose Island, Golden Road, Karbach, 10 Barrel, Four Peaks, Breckenridge, Devils Backbone, Wicked Weed, Blue Point, Platform - plus acquired Virtue Cider, in-house VEZA SUR brand. It also includes LQD line of FMBs, which officially launched earlier this yr, and new Maha organic hard seltzer created separately by Meg Gill and ABI.

Yesterday, the TTB handed small brewer advocates a new Exhibit 'A' when making their case about perceived anti-competitive practices by the world's largest brewer. AB agreed to pay the TTB a $5-mil Offer In Compromise for an undisclosed number of alleged trade practice violations, the agency announced. It's the largest single OIC the agency has ever collected and covers AB for any similar trade practice violations anywhere in US up until July 2, 2020. Additionally, two of AB's wholly owned distributor branches in Colorado served short license suspensions this spring for sponsorship agreements that, in TTB's view, violated federal law. Terms of an OIC include no admission of wrongdoing and the allegations laid out by TTB do not reference specific brands, mainstream, craft or otherwise. However, given strategies pursued by AB and its Brewers Collective, including dozens of major league sponsorships, TTB's charges do raise questions about the roles played by the co's craft acquisitions. They also closely track allegations against many industry players for many years.