Beer Marketer's Insights
In TALEA Beer Co's case, "you gotta spend money to make money." That's crux of what co-founder Tara Hankinson told Inc mag in recent profile, noting that TALEA is on track to make profit from operations for the first time since opening in 2019, having grown revenues 30-50% on avg each year since then. Co expects $10 mil in revs with $500K net profit and is looking to hire a head of mktg for the first time too, Tara told Inc. But it took some doing to get to this point. Co raised over $2 mil from ~115 small investors including "friends, family," and even "exes," co-founder LeAnn Darland noted. It currently operates 4 taprooms in different NYC neighborhoods, opening its fifth taproom this fall right across from Madison Square Garden.
This Week in Hemp: Senate Bill Seeks to "Clean Up" Mkt; Govs Strike, Industry Counters in Cts
The whirlwind world of intoxicating hemp spun a bit faster this week. Just as the budding industry swiftly pushed back against states that tried to lay the hammer down, a new federal bill would give regulation a try, finding a middle ground between prohibition and free-for-all. Attempts at stricter regulation of the hemp market continue to be more prevalent in states with existing legal cannabis markets. To block those attempts, industry members emphasize an existing federal regime that, in their view, offers broad clearances. And notably, some of the same orgs pushing back against state action endorse the just-introduced Senate bill. Of course, its chances of passage by a deeply divided Congress in a hugely consequential election year remain blurry at best. (This article adapts coverage from sibling pub INSIGHTS Express.)
As FX Matt bolsters its roster of RTD brands and continues to increase its contract production capabilities across bevs, it also partnered with upstart beer brand, Friday Beers, founded by LA-based media co Almost Friday Media that's got over 7 mil followers across platforms. Even with relatively small sales to start, Almost Friday Media background helped bolster Friday Beers Instagram page to over 2.4 mil followers to date with brand taglines like "They Just Hit Different" and "Commence Suckdown" clearly targeting younger LDA drinkers. FX Matt owns part of Friday Beers now, Fred told local radio show on WIBX in recent interview. Almost Friday still "control[s]" sales but FX Matt helps "guide it," not looking to roll it out "too quickly."
AB Chief Commercial Officer Kyle Norrington to Join Beer Insights Seminar, Nov 17-18 in NYC
Just added to our jam-packed Beer Insights Seminar program: Anheuser-Busch US chief commercial officer Kyle Norrington. Overseeing co's commercial efforts as well as its marketing, Kyle will speak to the evolution of AB's megabrand strategy, its big ambitions for Mich Ultra (including the upcoming launch of Mich Ultra Zero), and much more.
Famosa on Fire: Sales of Guatemalan Import Up 68%, Added More $$ than Guinness and Kona in Scans
How's this for an under-the-radar growth story? Famosa lager, billed as Guatemala's most famous beer, is on fire here in the US. Sales skyrocketed +68% in NIQ all outlet scans yr-to-date thru July 13, jumping to the 106th-largest beer brand family over that period. Bigger than brands like Fiddlehead, Allagash and JuneShine. Only 3 brand families grew faster in the top 150: Arizona Hard (+383%), BeatBox malt versions (+277%) and Cantaritos (+218%). Perhaps more impressive, it was the 19th-biggest growth brand fam in all of beer, adding more $$ than Kona and Guinness in these scans. The brand is sold as "Gallo" in its home country but "Famosa" abroad, presumably because Gallo trademark was already taken by another well-known alc bev supplier.
As has increasingly been the case last several conventions, this yr's NBWA annual convention in San Diego will feature many beyond beer suppliers on the product showcase floor, across malt/sugar, spirits, wine and non-alc bevs.
CA and Chi Prices Go Up Next Week
Significant price increases go into effect next week in 2 of the nation's largest markets, and 2 in which it's traditionally been tuffer for beer biz to realize much incremental price. Constellation is #1 supplier and leading way in CA, but MC and other suppliers going up too, sources say. Constellation will go up 80 cents on key packages, hitting a price of $26 per case to retailers. That's over a 3% increase, but its total portfolio price increase unknown at presstime. CA is over 20% of Constellation volume. AB will go up too, sources say, but not until Nov. Right now, growing Ultra at $19.75 per 24 pack to retailers. That's a rather large gap with Modelo, one source pointed out.
Wild Bill's Craft Soda has gotten its sleek-can Ring Pop subline into all 120 locations of It'sugar candy chain. It's starting with Blue Raspberry and Berry Blast, with Watermelon and Strawberry on the way. NJ-based co credits distributor Nassau Candy with forging partnership . . . Health-Ade's SunSip gut-pop extension has entered Sprouts Farmers Market chain in Lemon Lime, Cherry Cola, Root Beer, Raspberry Lemonade and a new Peach flavor that's exclusive to natural retailer . . . Laird Superfood has placed its Unsweetened and Vanilla liquid creamers into Wegmans chain on East Coast .
Clearly Canadian has signed on with small NY distrib Gotham Brands DSD, augmenting local distrib mix that already includes broadliners UNFI and KeHe along with C&S, Bozzuto's, Wakefern, HLA, Nassau Candy, BCS, Jetro, CoreMark and McLane. Clearly's move represents another solid addition to Gotham which, recall, started as local merchandising co that went national and has been rebuilding as focused DSD house after selling to Trax and a subsequent buyer, CA Fortune, which retained its core merchandising arm but gave the DSD part back to founder Trent Moffat when it didn't fit into the big picture. The buyers retained key clients like La Croix and From the Ground Up, so Moffat has been in rebuilding mode as a DSD-only operation, in part out of loyalty to team that was left high & dry after the post-acquisition maneuvering (BBI, Jun 7).
Reyes Coca-Cola Bottling is not a franchisee of Keurig Dr Pepper as far as California law is concerned, a state judge ruled after a hearing in LA County Superior Ct on Tues. So they dismissed civil suit Reyes' Coke bottling arm filed earlier this yr, effectively moving dispute between the cos to Texas, where KDP is based. Recall, KDP terminated RCCB's Dr Pepper distribution rights in late Apr, as our sibling letter Insights Express has chronicled. Shortly after, RCCB filed suit in Calif, arguing that the state's general franchise law applies to its relationship with KDP, therefore barring without-cause terminations. But "the weight of the evidence" suggested otherwise to this Calif judge. Focus now shifts to Texas, where KDP asked a state ct "to validate the company's decision to terminate" on the same day it sent its termination letter to RCCB, as Beverage Digest reported. That trial is set for next Mar, Calif judge noted.

