Beer Marketer's Insights

Beer Marketer's Insights

After shutting down its 4 taprooms temporarily, Victory Brewing is seeking out customer feedback via social media to help determine plans for reopening, reported Philly Voice. "As we think about our reopening plans at Victory Taprooms we think it's important to hear from you," co wrote on Facebook page. "What are you wary about? Excited about? What do you suggest? We want to be mindful of it all. We'd love for you to take this survey to provide feedback around our reopening plans." So far Victory's received "plenty of positive feedback," paper notes. Survey has 22 questions in toto, starting with seeking to gauge when consumers expect breweries, taprooms and bars to reopen, how quickly they will return to on-prem, and "biggest factor[s]" and "expectations" from those bars/breweries/

Consumers have a new metric by which to measure restaurants and bars: precautions taken to protect patrons from the spread of COVID-19 and other viruses. Cleanliness obviously already factors into on-premise decision-making for many. But those considerations now taken to new heights as many states reopen dining rooms in some capacity and others hand down dense, extensive guidelines for future reopenings of on-premise outlets, including breweries and brewpubs.

Craft beer sales grew 27.6% in IRI multi-outlet + convenience data for latest 1-wk thru May 10, improving to +12% YTD, Bump Williams Consulting shared in its latest weekly update. But total beer growth outpaced craft once again, up 33% for the week, improving to +16% YTD. Now, on top of craft's YTD $$ gain already being larger than total 2019 gain (see May 12 issue), total beer and subpremium $$ gains are also larger thru May 10, 2020 vs total 2019, Bump points out.

Shipyard/Sea Dog Brewing agreed to sell its FL brewing assets and brand rights in-state to newer contract brewing co, Brew Theory, based outta Orlando, Shipyard owner Fred Forsley confirmed with CBN. Cos are still finalizing details before deal officially closes. But deal was already in the works prior to COVID-19 outbreak, and COVID helped speed things up, he acknowledged. Brew Theory, run by "Michigan entrepreneur turned craft brewery founder," Jeremy Roberts, will own and operate breweries and take over brand rights thruout FL, but deal doesn't extend anywhere outside of FL. Recall, Shipyard expanded to FL in 2014 with production facility in Clearwater and additional taprooms elsewhere in the state. FL still doing "good volume," but it's become "very competitive" as local craft expanded there, he added.

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Closed on-premise biz, including taprooms, and creative thinking that required let to surprising benefit for Timberyard Brewing near Worcester, MA. The small brewery, opened in 2018, took over 8-acre lot and building previously occupied by a lumber yard, hence its name. That location featured a drive-thru warehouse, where 18-wheelers would drive right in, get loaded up with or unloaded of lumber and head on out, something the brewery had no use for previously. But that functionality came in mighty handy when curbside pick-up became go-to model for small breweries, according to Worcester Magazine. No need for "curbside" at Timberyard. Three days a wk, folks can pull their cars straight into the brewery, pop the trunk and get loaded up with beer and BBQ. Now co's brewing more beer than it was before.

One set of alc bev regulations unlikely to change due to shuttered on-premise bizzes: restrictions on small brewer off-premise sales in Minnesota. Initial legislation to expand those brewers' off-site sales options largely tabled once COVID-19 hit and focus turned elsewhere. But even special bill, written to be temporary and with additional concessions for other licensees, unlikely to pass as MN legislative session winds down, according to Star Tribune. Recall, brewers under 20K bbls in MN limited to selling growlers and crowlers for off-site consumption, totaling no more than 750 bbls per yr. Handful of bills intro'd early in yr to change one or more of those restrictions. But focus turned to expanding package options once taprooms shuttered, as MN brewers hoped to replace lost pint sales with at least larger volume to-go options.

A year and a half into full ownership of a trio of regionally-focused East Coast craft brands, Craft Brew Alliance sees lots of runway for each. It already found one break out brand and is working to identify others as it expands their reach and scale. CBA finalized deals to fully acquire Cisco (in New England), Appalachian Mountain (NC) and Wynwood (Miami, FL) in Oct, 2018. Those 3 brands plus other smaller CBA outfits (like Square Mile Cider) collectively shipped 53K bbls in 2019, +9%. At a little less than 7% of total CBA volume last yr, these small CBA brands were just 8K bbls behind Redhook, one of OG CBA brand fams. Setbacks, in part due to COVID-19, impacted brand trends in Q1. Both Appalachian Mountain Brewery (AMB) and Cisco volume down, with Cisco declining for some time. But Wynwood continued to see strong gains, led by its flagship blonde ale La Rubia, which provides clear example of ways forward CBA sees for the others.

As certain states less effected by COVID-19 re-open on-premise in some form, one in five consumers have "already returned to the On Premise despite uncertainty and limited outlets," according to latest Nielsen CGA survey of 1,600 consumers thruout GA, TN, FL and TX, conducted between May 9-11. So far, that skews more toward dining vs drinking occasions; 21% of consumers say they've been out for eating occasions vs just 10% for drinking occasions. At same time, that leaves 4 outta 5 still unwilling to go out, citing the need for "more time to feel comfortable visiting these places" (48%), and that "they do not feel safe going out" (47%) as primary reasons. About half of respondents are looking for specific "hygiene programs" (51%), "fewer tables or patrons" (48%) and staff "wearing protective gear" (45%) as key things they'd like to see among venues reopening. And nearly 1/3 of consumers say they won't return to on-premise until COVID-19 cases stop increasing. Still many questions as to whether restaurants/bars (and breweries perhaps) can operate profitably at reduced capacities while implementing safety standards in each of these mkts.

MC debuted natl ad campaign for top new brand Blue Moon Light Sky, co announced on Behind the Beer Blog. New 15-second ad intro's "from the makers of Blue Moon comes Light Sky," and highlights 95 calories before finishing with tagline: "welcome to the light side of the moon." Ad will air on TV and digital including live broadcasts of Taylor Swift "City of Lover" on ABC on May 17, 2020 ESPY Awards in July, streaming services like Hulu and YouTube and custom platforms like Snapchat and Giphy. Recall, Light Sky rapidly became #1 new craft brand and a top-30 craft beer brand in natl IRI data this yr, while flagship Blue Moon is consistently growing double-digits in scans too. Total Blue Moon brand family accelerated +29% in latest 4 wks thru May 2 in separate Nielsen All Outlet data, improving to +13-14% YTD. "When consumers are buying [Light Sky], they're buying it again," sez Andrew Walker, VP of marketing for Molson Coors above-premium brands.