Beer Marketer's Insights

Beer Marketer's Insights

After teasing new content on Sam Adams Twitter page last week (see May 7 issue), Boston Beer will officially launch new Sam Adams campaign, "From Boston With Love," starting next week, co announced. Ads take a more light-hearted, humorous tack, depicting "Your Cousin From Boston" in various settings including pick-up basketball, at a wedding, and working the register of a liquor store while sporting Boston Lager. They will run thru Q3, across TV, online video, radio and social, including TV buys with A&E, AMC, Comedy Central, Discovery, FX, TBS, Travel & more, co detailed. But "the Cousin drinks all" Sam Adams brands and "anything we do under Sam Adams can fit with the Cousin," CMO Lesya Lysyj told CBN. So expect more ads featuring Sam Summer and Octoberfest as well as content that could span entire Sam Adams portfolio.

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Some breweries close, others reopen after temporary closures, and everybody's determing different ways to navigate COVID-19 related challenges mkt by mkt these days. In CO, Ska Street Brewstillery, joint venture between Ska Brewing and Peach Street Distillers, reopened last week after initially shutting down on-site, reported Denver Biz Journal. It will operate at reduced hours offering online orders from 3-7pm Wed-Fri and 12-7pm on Sat. Similarly, 4 Noses Brewing opened its Boulder, CO location/side project after COVID-related delays. Iron Hand Brewing in Mobile, AL, reopened as Gov Kay Ivey allowed for "certain close contact businesses to start taking customers" while maintaining social distancing on Monday. And in VA, breweries are among those "gearing up" for phase 1 of its reopening that's expected to go into effect this Friday for most of the state, reported 3WTKR.

Bell's is leaning into pantry loading trends, expanding pack-size offerings for a few of its key brands. While Two Hearted Ale 12pk cans are already in mkt, co launched Two Hearted 12pk bottles too. "We also know there are a lot of people who still like to enjoy our beer out of a bottle and have interest in that larger pack size," founder and prexy Larry Bell commented in release. At same time, new Light Hearted Lo-Cal IPA launched 12pk cans across its entire footprint, previously only available in Mich. And lastly, Bell's offering special edition packaging for Oberon 12pk bottles and cans, on top of regular release of 5-liter mini kegs. Indeed, Bell's biz improved as much (or more) than any other craft brewer in scans since COVID-19 pantry loading went into effect; $$ sales improved from +6% YTD thru Mar 8 to +19% thru Apr 19 in IRI multi-outlet + convenience data. And sales continue to accelerate, up 52% in the latest 1-wk thru May 3, according to IRI data from Bump Williams Consulting.

Night Shift Brewing made tuff call to entirely "cancel" plans to build its "Forever Home" Philly brewery and distribution project, coming to terms with landlord to "immediately terminate our lease" effective May 5, co-founders Rob Burns, Mike O'Mara and Michael Oxton shared on co's website. Recall, facility for "Forever Home" spanned 130K sq-ft (60K sq-ft of brewing space, 20K sq-ft taproom and remaining ~50K sq-ft for storage, warehousing and distribution and project was originally expected to be complete by end of 2020 to the tune of $10+ mil, Rob told CBN last Aug (see Aug 28, 2019 issue). Night Shift already mapped out construction drawings of Phase 1 for the taproom space, hired construction firm that was getting ready to start work, and Phase 2 planning "was already in the works," with "financing approval from our bank," Rob confirmed with CBN. But "it wasn't meant to be," as "COVID-19 pandemic shook our business to the core" along with "almost everything else outside of it." Ultimately, "we're lucky that we're still in operation and able to see ourselves coming out of this crisis intact," but "pushing forward on our Philly project has become too dangerous, threatening a potential collapse of NSB if we don't pull the plug now."

Two beer biz economists - BA's Bart Watson and Michael Uhrich (ex-BI and Molson Coors, now a consultant) - hosted webinar this afternoon and touched on some hot topics. Each sees relatively long road to recovery with changes/bumps and a recession along the way. To respond, brewers gotta develop as many models as possible, using real time data, Bart advised, and see what works in new norm, whatever that turns out to be. Regardless tho, "you'll see great brands shine in craft," he sez. Indeed, some breweries reporting biz "up 100%, as people have nothing to do but load up their trunk" with favored brands. Then too, direct-to-consumer sales can act as "democratizing agent" if folks can order whatever they want from home. And recessions tend to "concentrate" industries. Net-net: "strong brands will separate from weak brands." And a bit of timeless wisdom from Bart: "every brand needs to know its consumers." (This article also appeared in sibling pub INSIGHTS Express.)

Just over 40% of US adults drink craft beer at least occasionally. They tend to choose which craft beers to buy based on type or style first and foremost and are most likely to agree on enjoying "clean" or "crisp" flavor profiles. So found YouGov survey conducted earlier this week of over 1,200 US adults, 515 claiming to be craft beer drinkers. Overall finding that 43% of adults drink craft matches result of Nielsen Harris Poll last summer. But younger adults far more likely to drink craft than older cohorts. A full 2/3 of adults age 55+ "never drinks craft," YouGov found, while a little less than half of 35-54 yr olds do drink craft. The portion of 21-34 yrs old that reported at least occasional craft consumption jumped to 55%, tho.

Pittsburgh-based Ready Nutrition has been tilting more of its focus to its newer isotonic and protein bar lines than its original protein water entry, in a space that's generally proved slow to develop broad base. But it's prepping new flavors and a functional extension for Jan while nearing announcement of new athlete endorsers involved in football, hoops and tennis. Founded by former college hoops player Pat Cavanaugh, Ready most conspicuously has counted Milwaukee Bucks superstar Giannis Antetekounmpo as investor/endorser, along with retired NFLer Aaron Donald.

John Culver, a 20-year Starbucks vet who long ran the Channel Development biz that includes its RTD alliance with PepsiCo, is latest casualty of shakeup inspired by return to ceo helm of Howard Schultz. Culver, who'd been elevated to N Amer chief and coo just a year ago, in Jun 2021, will depart Oct 3, his role eliminated as co rethinks its organizational structure, per internal memos cited by multiple news outlets. "Our reinvention requires us to rethink our leadership structure to create every opportunity for our new CEO and, most importantly, to accelerate delivery of modernized and elevated experiences," per Schultz in internal email cited by Bloomberg and others. Also exiting will be global supply chain chief George Dowdie. The moves come after past ceo Kevin Johnson nominally "retired" at age 61 in Mar, presumably ousted by board, and Schultz returned for 3d stint at helm on interim basis as co recruits successor. Among other exec casualties has been genl counsel Rachel Gonzalez, at time restive workers have been seeking union representation at scores of US stores. Culver had run Channel Development biz for 8 years, broken by 1-year interruption when he took on global retail role . . . Tom Dowdy, who elevated Hudson News Distributors' presence as a go-to place for emerging bevs within its extensive Northeast footprint (BBI, Jun 13 2019 and Aug 19 2020), has taken on a more futuristic position there 6 years into his run: chief revenue officer for co's Hudson Cannabis Logistics arm, with responsibility for full range of formats including flower, edibles, bevs and accessories. Hudson had earlier edged into cannabiz via deal in 2019 with Docklight Brands to carry its portfolio, including Marley Mellow Mood CBD-infused tea, Marley Wellness CBD Shot and Irisa CBD-Infused Sparkling Water. Hudson News, of course, has been looking to harness its infrastructure distributing newspapers and magazines at time print publications have been in ongoing decline.

Keurig Dr Pepper moved to squelch the round of gossip Bloomberg stirred up by reporting on a potential deal to acquire Bang Energy, saying it's not pursuing such a deal tho it didn't deny that talks may have occurred. "As it relates to the speculation yesterday on our interest in Bang Energy, we are currently not pursuing an acquisition of the business," a KDP rep told Reuters, among denials issued to multiple media. As noted yesterday, an acquisition would offer a way to plug gaping gap in portfolio that KDP currently is seeking to fill by patiently nurturing A Shoc brand, but would bring a slew of complications: questions stemming from legal challenge about ingredient bill of brand, likely need to pay 5% royalty on ongoing sales, need to continue to rely on fragmented network given limited reach of KDP's corporate-owned bottling network. Of course, co and its chmn Bob Gamgort have been trumpeting that co is in M&A mode and surely talks to lotsa potential targets, but Bang may be a bridge too far.