Beer Marketer's Insights
Rhinegeist, Good People Briefly Closed Taprooms After Positive COVID Cases; TX & FL Shutdowns
OH's Rhinegeist and AL's Good People Brewing were among latest to swiftly close their taprooms after discovering that employees tested positive for COVID-19. Similar to Fremont last week, Rhinegeist wasn't out of commish for long. "Over the next two days" the rest of staff will get tested and "during that time, we will close our taproom," sez co, assuring that "anyone working and interacting with customers has tested negative." Taproom already reopened again on Thursday at noon, "deep cleaned and ready to roll." AL's Good People Brewing, however, closed its taproom "until further notice," including its to-go sales, after learning one of its employees tested positive. That employee last worked Thursday, Jun 18, and is doing well in self-isolation currently. But taproom's closed "until all appropriate measures have been completed." Ultimately, "it's best to be transparent and say this is what we're dealing with," FL's Persimmon Hollow Brewery owner, Andy Sistrunk separately told local news outlet WESH.
Dogfish Will Be Boston's Top Priority in Jul; Gets $2 Mil Spend Jul-Aug; Celebrates 25th Anniversary
Dogfish Head will be #1 priority of Boston Beer's sales force in focus month of July, founder Sam Calagione told CBN, reflecting on co's 25th anniversary, current biz and future plans. Focus for the mo will be just 3 brands, 60-Minute IPA, Sea Quench and Slightly Mighty, all now aiming for the same price point. And Boston will spend $2 mil on mktg those brands in July and August, almost all spent on social media. Boston will be leaning into its craft acquisition, perhaps not coincidentally in first mo that sales will no longer be all incremental. For a variety of reasons, so far Dogfish Head sales haven't set world on fire (see last issue). Recall, Dogfish Head was up 6% for last 13 weeks thru Jun 13 in Nielsen data, reported by Goldman Sachs. And it too must have taken hit on-premise.
Nearly halfway thru the year, craft beer sales continue to tick upward in tracked off-premise channels. Now craft $$ are up 14%, volume up 13% YTD thru Jun 14, including +20% for 12 wks in IRI multi-outlet + convenience data. Even as pace slowed more recently, sales were still up 17% for 4 wks. So craft is currently on track to attain its first double-digit gain in tracked off-premise channels since 2015.
Boston Beer’s craft beer biz is on track to turn around multi-year slide in off-premise scan data as Sam Adams $$ now slightly growing YTD and Dogfish is adding incremental biz thru 1st half of the year. Yet growth remains modest nearly halfway thru 2020 in Nielsen All Outlet data. After larger initial boost for Sam Adams in Mar-Apr, trends steadied, and $$ up just 0.4% for latest 4 wks thru Jun 13 in Nielsen data. But that’s enough to put Sam Adams $$ in positive-growth territory YTD (+0.2%) for the first time in yrs (tho all-channel trend still soft with tuff on-premise hit). Prior to COVID, Sam Adams brand family was slipping at an even steeper rate in 2020, $$ down 14% YTD thru Feb 29. A 14-pt trend improvement in a little over 3 mos. Renewed growth of lead brands Sam Seasonal and Boston Lager continues to drive improvements. But Sam 76’s stubborn double-digit slump drags total trend, down 33% for latest 4 wks and -26% for 12 wks thru Jun 13, according to Nielsen data shared in Goldman Sachs’ Bonnie Herzog’s latest report.
Then too, altho Dogfish sales are entirely incremental to Boston Beer in 1st half of 2020, Dogfish growth has yet to take off under Boston Beer’s wing. Dogfish grew just 6% for 12 wks thru Jun 13 and slowed to +3% for latest 4 wks, according to Bonnie’s report. It’s not keeping pace with the craft category or many of its top craft peers amid the pandemic. While Dogfish was said to be one of Boston’s 3 key focuses this yr, with plenty of oppys to gain distribution via Boston’s extensive sales force, perhaps Truly’s roarin’ growth plus unexpected Sam Adams off-premise spike shifted the equation a bit. There are some signs that things are pickin’ up more recently. Dogfish improved to +8% for 2 wks thru Jun 13. And Dogfish Head 60 Minute IPA improved from -5% for 52 wks to +10% for latest 12 wks and +13% for latest 2 wks, Nielsen data from Bonnie shows. But like Sam Adams, these trends unlikely to make up for loss of on-premise biz. So still seems like there are levers Boston has yet to pull for Dogfish.
Truly Over Half of Boston Biz for 4 Wks; Craft Down to 12-13% of Boston Mix in Scans Total Boston Beer biz keeps rollin’ and risin’, improving to $$ up 55%, volume up 56.6% YTD thru Jun 13. But craft beer continues to become less of the total picture as a result. In fact, Truly hard seltzer made up over half of Boston Beer’s total sales for 4 wks; 54.5% of volume and 52% of $$ sales. Twisted Tea accounted for 24% of $$ and volume for 4 wks. And Angry Orchard at 9% of volume and near 11% of $$. That leaves just 10-11% for Sam Adams brand family and 2-2.5% for all other Boston Beer brands, including DFH, in Nielsen All Outlet data.
Rose Ann Finkel, co-founder of Seattle-based Pike Brewing, passed away last week at the age of 73 after a battle with Myelodysplastic syndrome blood cancer, Seattle Eater reported. "Those who knew Rose Ann professionally and personally remember her as a warm soul and a visionary, instrumental in moving the beer, wine, and culinary scene forward in Seattle," the article noted. In addition to Pike Brewing, Rose Ann and husband Charles founded specialty beer importer Merchant du Vin, helping introduce complex European beers to Americans since 1978. "Portland and Seattle are the top two craft-beer markets in the world. Perhaps because the beer-importer Merchant du Vin was located in Seattle, that city's restaurants were among the first in the nation to add specialty beers to their menus," remarked Michael Jackson (the writer) in his book, Ultimate Beer. Rose Ann and Charles also founded Truffles, a renowned gourmet market, and acquired Liberty Malt Supply, longtime retailer for home brewers and wine makers.
Florida Craft Distributors Appoints Ex-Breakthru Exec, Bob Drinon, as CEO, Plans Statewide Expansion
Relatively new FL-based indie distrib, Florida Craft Distributors, hired ex-Breakthru exec Bob Drinon as CEO, as co plans to expand coverage statewide thru FL, co announced. Bob held "multiple leadership positions" over 35-yr career, most recently as prexy of Breakthru Beverage Group's South region, responsible for FL, SC, and VA, and prexy and CEO of Breakthru Beverage FL (previously Premier Beverage Co), per release. Prior to that he worked with Premier Beverage and then Charmer Sunbelt Group's FL operation before co merged with Wirtz to form Breakthru.
Fremont Reopened, Closed, Reopened Again
Seattle's Fremont Brewing just got a crash course on what can happen if an employee does test positive for COVID and how to quickly mitigate any potential issues. Just after reopening its Urban Beer Garden, Fremont quickly closed the beer garden and production brewery back down last Tuesday after finding out that one of its employees tested positive for COVID-19. But by Sunday, Fremont reopened again after testing all other employees and conducting "an extra deep sanitation cleaning of the beer garden as well as both brewery locations," co announced on social media and KOMO news reported. The employee that tested positive was asymptomatic and "immediately notified the brewery" and put into self-quarantine after finding out they tested positive, co shared. And co "contracted with a medical professional" to "develop back-to-work protocols for us based on the latest CDC guidelines." As taprooms reopen across the country, it seems more likely than not that other breweries will face similar challenges in this next phase.
Boston Brewers Makin' New Guidelines Work; 69 of ~200 MA Brewers Reopened Taprooms (So Far)
Boston-area breweries are still working thru ways to optimize new on-premise environment as well, Boston Globe reported. Harpoon co-founder Dan Kenary called hit from COVID-19 "a kick in the gut," noting that 30% of revs typically come from draft, which went down to "zero." Technically down "more than 100 percent" in May as co recalled kegs set to go out of code, he noted. But Harpoon transformed parking lot into an outdoor beer garden with big tents that can seat 300 people, "and we are completely sold out until at least Monday," Dan shared. "We're telling people - and we're trying to overcommunicate this…we're basically saying you have a two-hour reservation." (Editor's note: several larger craft brewers are opting for reservation-only seating in early stages of reopening, CBN has observed.)
Crush of brewery closings has not surfaced in way may feared. (Yet?) Indeed, in a number of instances, new breweries are opening in locations that previously housed breweries. However, some breweries recently announced that they will not reopen now that on-premise restrictions are slowly being lifted.
Newport Craft Acquired NY's Radiant Pig; Braven Last Yr; 10K Bbls in 2020 with Lofty Plans Ahead
Another RI-based co continues to acquire new brands with sights set on sizable regional growth in coming yrs. Newport Craft Brewing & Distilling Co acquired Radiant Pig Brewing, co announced and The Newport Buzz reported. Under new leadership since 2017, Newport Craft also acquired NYC brand Braven last year. That co ceased operations and looked to sell off its old brewery in Mar 2019. Yet Radiant Pig's a different story, seeking a partner that could help it "satisfy the ever-growing demand," sez founder and brewmaster Rob Pihl. After a years-worth of "countless discussions" between he and co-owner/CEO Brendan O'Donnell plus the Newport Craft team, Rob saw "unwavering commitment to the craft brewing industry and where it sees itself on the regional and national brewing stage," he added. While Rob sold his brand rights, he will join Newport with an equity stake and stay on as the co's brewmaster and Brand Ambassador, according to paper. Interestingly, Newport hired ex-FIFCO USA employee Jessica Woodcome, to lead Radiant Pig sales team, with "single focus" on plans to expand into CT, MA and RI mkts.

