Beer Marketer's Insights
Unusual times call for unusual measures. Boston Beer sent out memo nationally informing that all Boston Beer sales reps will be pulled out of their respective mkts and asked to stay home for the next 2 wks, multiple sources shared with CBN. Move made as a measure of extra caution in response to latest spikes in Covid-19 cases in mkts thruout the country, we're told. Perhaps lower levels of supply in this next period also a factor in Boston's decision? But co primarily making the call to pull reps out of mkt due to Covid-19, sources underscored. Boston also not even considering return to corporate offices until Sep at earliest, CBN was told in May. Will other cos follow suit?
Distrib Panel on Evolution & Future of Beer Distribution Just Added to Beer Insights Seminar Program
Don't miss the 2022 BeerInsightsU8DeN7LhGw/6l99zkmzH40NqPuSTH4892VA/Q2AIRcrWeCptNo7qQFl7nA" style="color:blue; text-decoration:underline" target="_blank">Seminar program, now including a distributor panel on the evolution & future of distribution, beer and beyond. You'll hear from Ed McBrien, COO of Manhattan Beer Distributors, delivering 47 mil CEs of beer, wine, spirits & NAs in Metro NY & Steve Economos, CEO of Eagle Rock Distributing Co handling 25+ mil cases of beer, wine, spirits & NAs in GA & CO & former AB Panel chairman. The 28th Beer Insights Seminar will take place at Convene in New York City with a reception on the evening of Nov 13 and the program all day Nov 14. Take advantage of early-bird pricing at $1,350pp. Signupnow for what's sure to be a jam-packed and insightful day. We look forward to seeing you!
While hard seltzer's slide in US continues after an impressive build-up, segment is "not yet moving the dial from a scale point of view" in UK mkt, Heineken marketing director Michael Gillane recently told MarketingWeek. Sales only account for 0.3% of total beer/cider $$, unable to draw much interest from UK mkt that doesn't have much familiarity with the "soft seltzer" mkt and requires lots more education, Michael figures. Heineken launched Pura Piraña across Europe last yr and initially co vowed to become "the biggest player" in European hard seltzer mkt if category were to take off. But new Strongbow Ultra Dark Fruit cider, a 95-calorie "better-for-you" product launched this yr is expected to become bigger than the entire UK seltzer mkt by end of yr, Michael shared. UK consumers are far "more familiar" with hard cider, natch.
NY and CA Lead On Premise Sales Bounce
On premise sales velocity (including food & drinks) was flat for latest week thru Aug 13, per latest CGA by NielsenIQ data. That's slight improvement from -2% for previous wk. Bar/restaurant check value (+1%) improved slightly while traffic slowed (-1%) vs previous wk. On avg, check value up 9% vs same wk a yr ago. In states tracked, on premise sales were up compared to same wk in 2021 led by 10% gains in NY and CA. Sales velocity increased 8% in IL, 4% in Fla and 2% in TX. Sales velocity was off 1% in Fla and flat in TX compared to previous week while up 3% in IL, 2% in NY and 1% in CA, per report.
Turns out, AB's latest Stella Artois ad campaign is goin' global. Latest ads for "Make Time for the Life Artois" campaign were developed by Anomaly Toronto agency, airing in Canada, Mexico, South Korea and Argentina, in addition to US, Strategy Online article highlighted. Perhaps Andy Thomas and co takin' a page outta Heineken's playbook in developing global campaign that's repurposed slightly for various mkts around the world. 30-second ad launched in mid-Jun on YouTube depicts a livelier scene than typical for Stella to the tune of "Spinning Wheel." Ad aims to "champion…the reclamation of the better parts of pre-pandemic living" while targeting 25-40 yr old "professionals who are both cultured and career driven," article notes. "Work life has crept into our home life…to the point where our dining tables have basically become our desks," said group creative director at Anomaly, Neil Blewett. "So we wanted to encourage people to disconnect from work and take back the table. Or, in this case, flip it."
Following FIFCO USA's natl business council meeting last week, chief sales officer Dan Hennessy wrote distribs that co "plans to maintain a strategic price position to key competitors and will not take a blanketed approach." In key NY mkt, it will follow AB's larger-than-normal price increase this fall, INSIGHTS hears. Meanwhile "on our Seagram's brands, we plan to deliberately optimize retail price to ensure sustainable growth for 2023 and beyond," Dan noted. "With our great beer brands, Labatt and Genesee, we will continue to hit consumer-friendly price points," he added. Both of those comments appear to strike somewhat more cautionary notes on price. In distrib-friendly move, FIFCO said it "has no plans to implement a freight or fuel surcharge."
AB Craft/High End Layoffs Amid Sales Restructure & Platform Brewing Shifts; UK Strike Round 2
AB craft/High End unit is going thru two separate rounds of layoffs amid newly restructured sales unit and Platform Brewing production shifts.
Tho ABI reported 2.4% $$ sales increase overall in US in first half, its beer $$ sales down 3.8% yr-to-date thru Aug 7 in IRI multi-outlet + convenience and it lost 1 share of $$. Volume down 7.5% in IRI MULC YTD. Share loss accelerated after the 4th even as total industry and AB $$ sales trend improved. AB $$ sales down 2.1% for 4 weeks thru Aug 7 but industry up 1.5% so AB share dipped further. Down 1.27 pts in period. Why such a wide discrepancy between AB's reported $$ sales trends and scan data? First, growth in on-premise. But another part of difference is this IRI data set doesn't include growth brands like Cutwater, Nutrl and Ghost. In any case, AB not yet achieving results it hoped for in 2022 and it's got a double PINC (price increase) coming right up.
It's not just natl-focused Brewers Assn going thru tuff times among orgs lobbying for craft beer. Brewers of Indiana Guild furloughed paid staff members "for the foreseeable future," exec director Rob Saputo told Inside Indiana Business in recent article about craft beer's "uphill battle" in IN. Like the BA, "we generate most of our funding from our events," three of which draw crowds of over 17K people, he noted. And trade assns aren't eligible for PPP loans, so "we have been going down a path of trying to figure out what is going to happen with staff" and "a lot of important decisions are going to have to be made here in the next month." Rob also spoke to several IN brewers that had to layoff and furlough employees thruout this period due to Covid-19. "I think some folks have been doing pretty well, as far as just trying to manage this," but "I think there's going to b
After purchasing former Funky Buddha Lounge in Boca Raton, FL two yrs ago, Mad Robot Brewing will permanently close, co announced and South Florida Sun Sentinel reported. Decision comes shortly after south FL re-closed indoor seating for bars and restaurants, tho co reportedly never reopened since initial lockdown on Mar 15. Indeed, Mad Robot "faced challenges even before the pandemic," owner Allen Steen acknowledged to paper. "The beer industry keeps changing," he added. "What used to separate the lounge from everyone else were the live events and comedy shows. Now a lot of breweries are doing the same thing."

