Beer Marketer's Insights
The labor disputes keep on comin'. Just as thousands of dockworkers went on strike shutting down ports across the East and Gulf Coast, Molson Coors is facing another strike, this time at its Milwaukee brewery. About 43 members of the International Association of Machinists and Aerospace Workers (IAM) walked out yesterday, voting to reject co's final offer and let the contract expire at midnight on Oct 1. Tho this dispute is far smaller than the ~420 employee Teamsters strike in Fort Worth earlier this yr, which lasted more than 3 months.
In its 3d yr, the Making Moves conference organized by NBWA's BREW initiative and the Alliance for Women in Beer attracted over 430 attendees over 2 days in San Diego this wk. "Women and men alike come to Making Moves to find connection, career development and timely industry insights they can't find anywhere else," NBWA coo and program leader Kim McKinnish commented. The event is "filling a need in the industry," Kim said to open Making Moves, which aims to identify ways to "make the beer industry more welcoming" both "for women to join" and "stay."
Constellation execs expressed confidence in co's ability to hit revised full-year targets during fiscal Q2 earnings call, shrugging off any notions that slowdown in its beer biz during fiscal Q2 was anything more than a short-term blip. This is "purely a near-term issue," ceo Bill Newlands stated during Q&A, pointing to improved trends in latest scans, "very strong" buy rate over 52 wks, and an improving consumer environment as the Fed reduces interest rates to manage unemployment and the election passes. Combo of shelf space gains earlier in the year with increased marketing spend in 2d half at a time "many" other CPG cos are "pull[ing] back" gives Bill additional confidence.
It's been a relatively quiet year from Coca-Cola's alc bev unit Red Tree Beverage in the US, but news started to drum up in these last couple weeks. Co will appoint Coke vet Lourdes (Lou) Grill as new Red Tree prexy effective Nov 1. Previous prexy Jenny Dowdy left Coca-Cola altogether, INSIGHTS understands. Lou "will operationally lead the success of our Alcohol Ready to Drink (ARTD) business across the United States," as she's "uniquely qualified to lead" the unit "with her strong background in finance, strategic partnerships, and distributor relationships," Coca-Cola's head of new revenue streams Dan White shared in statement. Lou's held "roles of increasing accountability in Finance, Marketing Assets and leading the Natural Channel sales, distribution and strategy team," including most recent gig as North America leader for The McDonald's Division, Dan added.
Even Constellation is not immune to overall softness in alc bevs. "The current macroeconomic backdrop has weighed on the demand for beverage alcohol," acknowledged STZ ceo Bill Newlands in earnings release this morn. Beer shipments still up 4.6% in its fiscal 2d qtr (Jun-Aug), but depletions up 2.4% or low-single digits. That's 4 points slower than STR trend in first qtr, 3 points slower on shipments. For the half, Constellation shipments up 6%, but depletions up 4.2%. Despite slowdown, STZ maintains slightly revised guidance that it released in early Sep for 6-8% rev growth in beer division and 10-12% gains in oper income.
At Natl Beer Wholesalers' Assn conference in San Diego this week, Gulf Distributing's Rebecca Maisel took the stage as new NBWA chair amid wave of younger beer distribs advancing from Next Generation roles. Those Next Gen distribs are becoming the "now" generation, Matesich Dist's Jim Matesich noted separately. Among her messages: whether it's beer or Delta-9 THC bevs, beer distrib sector needs to be at the table as they pursue "total beverage" strategies. "Don't be complacent," she urged. "We have a portfolio strategy" and as supplier partners diversify their businesses "in the face of changing consumer preferences, becoming 'total beverage' companies, why shouldn't we?" So "whether it's NA beer or Delta-9 hemp, as long as we understand the benefits and risks, and we can adequately protect ourselves and consumers, why shouldn't those products go to market on our trucks?" Beer distribs' ability to efficiently operate "using a multichannel approach, with high-touch, in-person customer support and service .
Call Mike Baeta patience personified. Entrepreneur has been building out his Play Mode premium sports drink and mixer brand for nearly a dozen years now, pivoting from on-premise to grocery during pandemic and operating deliberately out of cash flow as he gropes for right approach for brand that he believes has a unique niche in cluttered - and lately sluggish - category. "Hydrate while you celebrate," has been brand's mantra, referring to proprietary blend of electrolytes, antioxidants and zinc. Lately the Sara Lee vet is taking encouragement from test in some Albertsons stores in Northern Calif, his home base, where brand has managed to win 0.3 pt of share even as Gatorade, Powerade, Body Armor and Electrolit have all lost share in broader hydration set, per SPINS data he shared. So now he's ready to deepen presence in core markets of NorCal, Las Vegas and Hawaii by enlisting DSD partners, and if he's able to pull in some funding in challenging environment he has visions of getting foothold on East Coast, too.
PEOPLE: Coke Vet Brennan Retiring as Lemon Perfect Prexy as Brand Heads to $70M Retail Sales
Atlanta-based Lemon Perfect said the 32-year Coca-Cola vet Jim Brennan is retiring as prexy after taking its sales at retail from $3 mil at time he joined in 2021 to anticipated level exceeding $70 mil this year. During this period he grew retail distribution from 5,000 doors to 40K. Who steps into the role next? Founder/CEO Yanni Hufnagel promised word on that next week.
Interesting rollup has occurred in Australia as The Original Juice Co has taken under its banner SPC, the country's largest processor of fruit, tomato, baked beans and spaghetti, and Nature One Dairy, a maker of infant formula, nutritional formula and milk powder items. The merged businesses are being overseen by former Asahi Beverages Group CEO and current SPC dir Robert Iervasi as Managing Director. Nature One, founded in Australia but registered now in Singapore, has built major presence in China and other Asia Pacific markets and is expected to open doors there for its new partners. OJC manufactures juices, fibers, infused fruits and fruit waters.
Days after Diageo took full ownership of Ritual Zero Proof, another wine & spirits power, champagne giant LVMH, has taken a 30% stake in a popular maker of non-alcoholic sparkling wines, French Bloom. Tho participants in burgeoning sector are eager to get a handle on what kinds of multiples these plays are commanding as acquisition frenzy heats up, terms were not disclosed. It represents Moet Hennessy operator's first move into alc-alternative space. The drinks may not contain alcohol but they still command $100 or more per bottle, as numerous outlets have marveled since word of investment emerged yesterday. On US website, various offerings range from $44 to $119 (for La Cuvee Vintage 2022). The Wall St Jnl estimated that French Bloom expects to sell 500K bottles of the stuff this year. Using organic Chardonnay and Pinot Noir wines and other ingredients like lemon, French Bloom uses proprietary cold-vacuum distillation method that involves gentle heating of the wine and yields 0.0% ABV. Founders are Maggie Frerejean-Taittinger, who as director of Michelin Guide knew something about wine but found herself pregnant with twins, and her longtime friend and Pilates pal, the model Constance Jablonski. On-premise in US, brand has cracked such influencer locales as Carlyle Hotel, Beverly Hills Hotel, Four Seasons Chicago, Cecconis West Hollywood and The Surf Lodge.