Beer Marketer's Insights

Beer Marketer's Insights

For 2d straight week, beer $$ sales actually up, tho volume still down slightly. Beer $$ sales up 1.1% in Circana multi-outlet + convenience for 1 week thru 9/22, following 1.4% gain week prior. Recall, prior week was first up week since Jul 4. So now 2 in a row. For 4 weeks, $$ sales flat, volume -2%. Are these perhaps some better signs?

Pabst's newest innovation, Pabst Light, was on display at NBWA convention's product showcase room in San Diego yesterday. This is a big bet from Pabst, rolling out nationally next year, ceo Paul Chibe shared with INSIGHTS. It's an all-new brew, clocking in at 96 calories, 3.5g carbs and 4.2% ABV per 12oz can, designed to play in the Mich Ultra range of calories and carbs while sold at a lower price point. Starting next spring, Pabst Light will be available in an "array" of pack sizes line priced with PBR, said Paul. Branding is distinct from PBR while maintaining a couple familiar cues in color scheme, touting "crisp & refreshing" and "America's Quality Light Beer" on cans and package carriers.

The newest Olympic sport? None other than competing for "share of wallet," said HUSA ceo Maggie Timoney in interview with NBWA prexy Craig Purser at org's meeting today. All these things are "chipping away at our revenues," be it challenges from competitive products, the rise of cannabis and online gambling, or negative perceptions of alcohol. But despite intensifying battle for discretionary dollars and "concerning" beer declines over the last several yrs, beer "is healthy" and "will bounce back" once the consumer "has enough dollars in their wallet," said Maggie. "My main message… is let's not panic. This too shall pass."

As beer industry members gathered in San Diego for NBWA's annual convention, many folks acknowledged the devastation from flooding in the southeast amid Hurricane Helene, especially in Asheville and western NC. That includes vibrant beer scene in Asheville that was heavily impacted by the storms. Pics circulated of flooding at New Belgium's facility located right along the French Broad River. More broadly, pictures and articles from Asheville Citizen Times and USA Today pointed to impact on lives, homes and businesses in Asheville's River Arts district and beyond.

Climbing Kites premium THC-infused sparkling waters will be available tomorrow in GA on first day new laws for hemp-derived THC bevs take effect in the state, co shared. Bev Strategy LLC is handling sales and mktg efforts for Climbing Kites throughout Southern region. Bev Strategy, co-founded by Chris Herron (former ceo at Creature Comforts Brewing Co) and Seth Herman (formerly with Diageo and cco at Creature Comforts) "has already signed nearly 20 Anheuser Busch distributors across the south," in just 2 mos, as it manages sales in TN, NC, with FL, with SC and AL expected to follow after GA entry. Citing SPINS data, co noted Climbing Kites is fastest-growing retail premium THC brand in US and #1 in its home North Central Region.

With sales "looking a bit lackluster (to put it mildly)" in all major alc bev categories for the first nearly 9 mos of the year and Sep in particular coming off as "less-than-inspiring," Bump Williams of BWC noted, "lots of HOPE is falling on the shoulders" of Q4 "to finish the year on as strong a note as possible." In 2022, OND (Oct, Nov and Dec) "pretty solid," sez Bump, but 2023 OND couldn't match and "left us with a lackluster finish that has unfortunately appeared to carry throughout the current 2024."

Hemp commands outsized focus across the industry lately and many beer distribs are "grappling" with the "commercial opportunity and regulatory uncertainty" they represent, NBWA bd chair Jim Fabiano commented during genl session of org's convention this morn. With all the flux, uncertainty and variation, as prexy/ceo Craig described (see above), NBWA formed a hemp bev working group following the "latest regulations and market developments," Jim pointed out. Many major beer suppliers are "very concerned," Craig said before stating firmly that "distributors take their regulatory responsibilities seriously."

"If there's one consistent theme right now" from politics to the beer industry, it's that "there are new rules to the game," NBWA prexy and ceo Craig Purser commented to kick off the association's meeting of nearly 1,800 today in San Diego. "The only thing to expect is the unexpected," he noted. (Indeed, who would've imagined "a Teamster speaking at the RNC, a Kennedy endorsing a Republican and a Cheney endorsing a San Francisco Democrat?") But in an industry evolving at "whiplash pace," beer distribs are the "steady, reliable engine that keeps things moving... the definition of durability" and the "envy of other industries."

Capital Dist in OKC, a 7+ mil-case Molson Coors operation, has deal to sell to Glazer's Beer & Bev. Deal announced to employees, pending supplier approval, expected to close by year end. Recall, Glazer's bought 3.5 mil Premier-Midwest Bev Co in neighboring Omaha, NE just last yr. So Glazer's made 2 of 5 MC distrib deals INSIGHTS tracked in 2023-4. Co has quietly become one of nation's very largest beer distribs. Once Capital deal closes, it will be bigger than Andrews in Dallas or Manhattan in NY, but across multiple states in Midwest and Southwest. Last yr as it announced Premier-Midwest deal Glazer's was 40+ mil cases and over $1 bil in revs. When this deal is done, Glazer's Beer & Bev will be around 50 mil cases.

Black-owned and operated BLK & Bold coffee brand has put its latest investor/endorser, Deion Sanders, at heart of its first ad campaign, with NFL legend exhorting viewers to "all rise" together. Concept riffs on coffee's energizing effect as well as co's social mission that's already seen $250K donated to partners who engaged in youth programming, workforce development and community growth. Des Moines, Iowa-based co didn't say much about the media buy beyond that 15-, 30- and 60-second versions will be distributed online, across digital platforms and via streaming services. It can be viewed here.