Beer Marketer's Insights
Busy year for NJ's #1 craft brewer, Cape May, and busy month for changes in NJ craft distribution. Cape May just sold distribution rights to its brands in home state NJ, where it previously self-distributed under Cape May Beverage, it announced to employees this morn. Biz reportedly totals 350-400K cases. Volume will be split between 4 NJ Molson Coors/Constellation distribs: Kramer, Shore Point, Peerless and Kohler.
New Belgium's next Voodoo Ranger is going tropical with "Tropic Force" Imperial IPA, CBN has learned. Brand was showcased to distrib network as part of NBB and Bell's joint meeting in Kalamazoo earlier this week (albeit in state where NBB and Bell's wholesaler networks are separate). With familiar branding and 9.5% ABV, Tropic Force is another step down the fruit-forward, high gravity FMB-like road for Voodoo Ranger, this time utilizing a bit more familiar IPA flavor vs Fruit Force fruit punch IPA launched this yr.
Tilray CEO Irwin Simon and US Beer Prexy Ty Gilmore Join Program for Beer INSIGHTS Seminar
Speaker lineup for upcoming Beer INSIGHTS Seminar in NYC is almost complete. Just added: ceo of Tilray, Irwin Simon, and co's US beer division prexy, Ty Gilmore. They join a stellar set of top execs and thought leaders gearing up to offer keen insights at this year's conference, coming right up Nov 12-13. You won't want to miss this top-notch oppy to connect and learn. Seats are filling up fast, so get all the details at beerinsights.com and register today. Discounts available for companies sending 3+ attendees.
Throwback Thursday
This week in 1989, after months of rampant rumors, Coors announced deal to buy most of Stroh brewing assets for $425 mil, reported INSIGHTS. Pabst said it would fight deal. But if approved by DOJ, INSIGHTS envisioned "final phase of brewing industry consolidation taking shape." (Of course, no one saw at time the massive global deals that would occur 20 yrs later.) To get deal done, Coors "made radical policy departure" by taking on debt. "We're not particularly enamored of long-term debt. We think we can pay this thing off within a reasonable period of time," said veep Rob Klugman, who played key role in negotiations. Deal would have brought Coors up to 35 mil bbls compared to #2 Miller at 42 mil. Deal eventually fell apart and Stroh hung on for another 10 yrs before selling off assets to Pabst and Miller.
NBA All-Star Trae Young Takes Stake in AB's Major League Pickleball Team, the Atlanta Bouncers
Add another celebrity athlete to the list of high-profile Pickleball investors. NBA all-star and Atlanta Hawks point guard Trae Young is hopping on the hype train as newest investor in the Atlanta Bouncers, Major League Pickleball team owned by top US brewer AB, co announced today. He'll serve as "sole investor" for team's 2nd season, joining other MLP investors such as Lebron James, Kevin Durant and Tom Brady.
Nutrl and Cutwater Touted as "Core" of AB's Beyond Beer Portfolio; Importance and Evolution in US
ABI's beyond beer products doubled net revenue contributions since 2019, global cmo Marcel Marcondes showed at co's capital markets day this wk in Mexico City. And in US, the brewer's beyond beer efforts are currently headlined by 2 big spirits RTD bets: Nutrl and Cutwater. Those brands are "front and center" in co's US megabrand strategy and "the core of our beyond beer portfolio," said AB cco Kyle Norrington.
Just as AB held EAM meeting with US distribs amid difficult competitive backdrop, ABI's leadership held capital markets day in Mexico City conveying co's global scale and stature. As world's largest brewer, ABI holds #1 mkt share in 28 countries and 7 of top-10 largest beer profit pools (including largest one, US), ceo Michel Doukeris remarked. It sells 21 billion-dollar brands and another 12 over half a bil in sales, with 7 of top-10 most valuable beer brands globally, he added.
Ohio to Seek Cert, Ask Sup Ct to Say State Can Block Cross-Border Retail Shipping as Matter of Law
Will Supreme Ct take one of the retail shipping cases when brought by state defendants, rather than retailer plaintiffs? This wk, Ohio alerted the 6th Circuit Ct of Appeals that it intends to seek review of the ct's July ruling by the Supreme Ct (officially: "file a petition for a writ of certiorari," or seek "cert," as it's called). Recall, a couple mos ago, 6th Circuit sent retailer shipping suit back to district ct, asking it to review "concrete evidence" that OH's prohibition against shipments from out-of-state protects public health & safety (or some other "nonprotectionist" effect). In Aug, the state asked for a larger panel of 6th Circuit judges to review the decision (an "en banc" hearing), which ct denied last wk. So now state will see if Sup Ct wants a turn.
Diageo announced it has hired Sally Grimes as ceo of its largest biz unit, North America, effective Oct 1. This is a new position above North American president Claudia Schubert, who stays on and adds title of chief operating officer. Diageo hired Sally from outside. Most recently, Sally was ceo of Cliff Bar & Co. Previously, she was group president of prepared foods at Tyson, running a $10 bil, 25,000-person organization. "Sally's appointment further strengthens our world class executive team at Diageo," said ceo Debra Crew.
Did AB's EAM Meeting Move the Needle? Distribs Found It Familiar, Didn't Get What They Want
Anheuser Busch's virtual pre-recorded EAM meeting began with veep Bob Tallett reviewing what AB did for distribs since what he called "the Bud Light situation" erupted on scene in Apr. That included financial relief, suspending assessments and increased mktg. AB ceo Brendan Whitworth closed brief meeting by reiterating that AB will "get back to where we were." He said plans were "working" in first qtr. It is striking to remember SAMCOM in Jan '23 and distrib optimism coming out of that meeting, including about Bud Light. That was then, this is now.