Beer Marketer's Insights

Beer Marketer's Insights

This wk marks 15 yrs since Mark Hellendrung bought and relaunched Narragansett brands in US. In Dec, it celebrates 130 yrs since brewery first opened in late 1800s. Quite a year for such milestones. Especially as co has been building out its new brewery and brand HQ in Rhode Island. That opening delayed a few months, but brands roll out in Indiana this wk. 'Gansett's getting strong off-premise growth that's keeping Mark optimistic. But it ain't easy. He discussed those moves and "the difficulty of staying disciplined," with CBN late last wk.

Multiple moving pieces impact alc bev regulatory environment these days, with pushes and pulls in many directions at once. West, east and central, states all over US extending or at least considering extending short-term privileges like curbside pick-up and delivery of alc bevs. Cities and states also clearing and expanding drinks (and especially cocktails) to-go as financial pressure on restaurants and bars operating under restricted capacity becomes more and more clear. Yet calls for increased restrictions on alc bev sales and greater public awareness of potential harms of consumption getting louder. Tho restaurants and bars slowly reopening, plenty concerned about safety of workers and patrons; many holding off on allowing on-site dining; lots already say they won't reopen at all. But a recent uptick in confirmed Covid-19 cases overshadows progress toward building on-premise biz back to pre-pandemic levels.

Another regional hard cidery is joining slew of breweries and cideries that have entered the hard seltzer arena, as VT's Citizen Cider announced the launch of Citizen Seltzer. Similar to Bold Rock hard cider, Citizen Seltzers are made with an apple-base derived from its cider. These "craft hard seltzers" are available in 3 flavors, Apple All Day, Ginger Love and Lemon Spritz, each at 5% ABV, 100 calories, 2 carbs, 1g sugar with all locally sourced VT fruit. Notably, co's partnering with nearby non-alc kombucha co Aqua ViTea to help with the production, tho only using its facility as an alternative proprietorship in order to use spinning cone equipment, sales and marketing director Cheray MacFarland shared with CBN. "We start with a craft hard cider and break it into pieces with their separation cone," and "then reformulate the alcohol (derived solely from cider) with some carbonated water," per release. In Citizen Cider's view, there's an oppy to play up the natural and locally sourced ingredients.

Another MI brewery is further along in its revitazation process while workin' thru COVID-19 challenges. Michigan Brewers Union, made up of ROAK Brewing and acquired Dark Horse Brewing, "endured a hellish loss of sales, but we're still shipping, selling and recently opened our tap rooms," prexy Adam Lambert shared in note to distribs yesterday. Dark Horse has new logo, and has "almost completed a new look for all core beers," ready to release first canned variety 12pk in July, followed by 12pk cans of Crooked Tree IPA and Raspberry Ale, and new 6pk cans "rolled out and staggered over the next 90 days," Adam detailed. Then too, co will launch new "Tree Series" line on draft-only for starters with a Mango IPA, and package launching mid-Aug. And on mktg side, co's working with local agency, Black Lab Five, that also works with Bell's, to create new consumer campaigns for both ROAK and Dark Horse, as well as website refresh, consumer-retailer-wholesaler newsletter campaign, sponsorship of local music series and more.

Short's Brewing's "alternative beverage" subsidiary, Superfluid Supply Co, will "bring back Arcadia Brewing Co products," co announced earlier today. Recall that Arcadia stopped making beer late last yr and hadda sell its main Kalamazoo brewery after biz was taken over by First Natl Bank of Michigan (see Sep 19 issue). At the time, owner Tim Surprise brushed off financial struggles and noted co was searching for new strategic partner that would ensure Arcadia could stay in biz. So Short's came to the rescue, to some degree at least, starting with Whitsun unfiltered wheat ale. "Our goal is to make it as close to the original recipe as possible," said Short's/Superfluid Supply CEO Scott Newman-Bale. And "eventually we'd love to bring other Arcadia brands to market, and we're setting the stage to do just that." Superfluid also includes Starcut Ciders and newer Beaches Hard Seltzer. Notably, "we plan to continue to grow and diversify our portfolio through acquisitions and development," Scott added.

From tiny wood-fired pizza restaurant/brewpub to notable regional craft co within one of the most competitive craft beer landscapes, VT's Zero Gravity now has ample space to grow into for yrs to come after agreeing to purchase Magic Hat's brewery (see last issue). Altogether, Magic Hat brewery and current equipment on hand gives Zero Gravity an extra ~75K bbls/yr or so, founder and CEO Matt Wilson told CBN. And that's not including several open fermenters that Zero Gravity brews don't use. So capacity could be expanded upon if needed. But co's in no rush to fill it up.

More established craft cos are adding new distribution lately as COVID restrictions begin to lift, perhaps partly viewed as a potential shot in the arm following tuff hits thruout these past several mos.

Both craft beer and total beer biz in CA are growing at an even faster rate than nationally in scan data. Craft $$ grew 16% and total beer up 23% YTD thru Jun 7 in IRI multi-outlet + convenience data shared by Bump Williams Consulting, including +25% and +29% for latest 13 wks. Majority of craft cos are growing in Calif scans, including many up strong double-digits or better. Yet craft overall is losing more share in Calif vs nationally, down 0.9 share of $$ to 16.6 of total beer in-state YTD.

Sifting through the countless updates from craftland, here's a few that stood out in recent days. Founders will take its Oktoberfest nationwide for the first time this fall season, graduating from a once-taproom exclusive and Mothership Series brand, co announced. Starting this Aug, Founders Oktoberfest will be available nationally in 6pk and 15pk cans, plus draft. Add it to the short list of nationally distributed Oktoberfest craft brands (i.e. Sam Adams, Sierra Nevada, Shiner).

Duvel Moortgat USA, made up of Boulevard, Ommegang and Duvel imports, was off to a "very good start" to the year, riding highs of Kansas City Chiefs Super Bowl, posting "one of the our better February's on record," and solid shipments into March before COVID entirely disrupted plans, VP of Sales Bobby Dykstra told CBN in joint interview with VP of Marketing Natalie Gershon. About 1/3 of Duvel USA sales mix is typically on-premise, and from mid-March thru May that biz was essentially down 100%, or even "subzero" while taking kegs back, Bobby shared. Co "quickly pivoted" while "working closely with distributor partners" to adjust inventories, and was faced with tuff decision to lay off about 1/3 of sales force and mktg team among other depts.