Beer Marketer's Insights
Molson Coors Goes All In on Zoa Energy with New Investment to Support Doubling of Marketing Budget
In its first two years Zoa Energy has worked to find its footing, undertaking radical revamp early this year and broadening the awareness-building lift beyond cofounder Dwayne "The Rock" Johnson to include flock of recently enlisted college athletes and more broadly aspirational messaging. Now Molson Coors Beverage is doubling down, increasing its investment in brand that's currently main prong of its push into NAs and getting board representation for first time. It remains a minority investor, but now a substantial one.
"We Need to Go Further": 1st Circuit Follows the 6th, Sends Retailer Shipping Suit Back to Dist Ct
A federal dist ct in Rhode Island made the same mistake that a similar ct in Ohio made when it "did not examine concrete evidence to discern the effectiveness" of an in-state presence requirement for retailers "in promoting public health and safety." So concluded a 3 judge panel from the 1st Circuit Ct of Appeals in a ruling issued late last wk. "We need to go further," the 1st Circuit decided, sending the key issue back to the dist ct.
As Bud Light embarks on its biggest ever NFL campaign with a huge step up in college football mktg, is it enough to "save the brand?" So asks AdAge in lengthy piece that dropped late Friday, pointing to AB's "expensive" football mktg as Bud Light losses "look increasingly permanent." Summer mktg blitz didn't turn the tide and jury's still out on whether additional ad $$ will make a dent. But if massive mktg spend can't stem the brand's losses, then the question remains: what can?
A smaller 2d lawsuit filed by ABI against Constellation just got resolved, seemingly in ABI's favor. Recall, ABI filed 2d lawsuit against Constellation Brands in Sep 2021, insisting it stop selling Modelo Reserva brands aged in tequila and bourbon barrels, partly because Mexico's CRT, private group authorized by govt to enforce rules on tequila appellation of origin, sent STZ a "cease and desist" letter. Late last week, Constellation agreed to stop selling those 2 beers permanently. But it retains the right to use the Reserva name for Modelo and other permitted beer brands. Earlier this yr, Constellation won a jury verdict on the larger lawsuit regarding Corona Hard Seltzer and ABI recently appealed the decision. This Modelo Reserva case resolved "without any admission by Defendants of liability or harm." ABI "shall recover its reasonable costs of suit through June 23, 2022 (not including any expert witness fees or attorneys' fees," ruled Judge Lewis Kaplan.
Bud Light volume down 30.6% for 1 week thru Sep 2 (Saturday of Labor Day weekend) in NielsenIQ data from Bump Williams Consulting. That's slightly steeper than the 30.1% that Bud Light dropped last 4 weeks. Bud down 14% in latest week, Mich Ultra and Busch down 4% in latest week. Those are all roughly similar to 4-week trends, tho Busch Light improved, compared to -5.6% for 4 weeks. Bud Light now down 20.7% yr-to-date in NielsenIQ. And "recent weeks continue to pull down the running YTD average for the brand," noted BWC veep Dave Williams. Then too, indie store trends are worse than chains, as Constellation Brands cfo Garth Hankinson pointed out at Barclay's conference last week and on-premise remains tough. Consider that Bud Light sold a little under 23 mil bbls in US last yr, we estimate. So at present rates of decline, it will likely lose close to 5 mil bbls in 2023.
FLASH! Mutually Attracted by Experimental Yen, Brooklyn Brewery Leads Hoplark's Series A Round
Another established craft brewer has formed a strategic partnership with a significant investment in up & coming NA brand. This time it's Brooklyn Brewery leading Series A round of HopTea marketer Hoplark, which had hinted early this year it was motoring toward Series A round somewhere in likely range of $10 mil (BBI, Feb 1). Partnership quickly eases capacity constraints that Hoplark founder Dean Eberhard said has been hindering sales over past 18 months while allying Brooklyn and its influential brewmaster Garrett Oliver with an NA player that's similarly willing to play at experimental edge, with scores of releases so far under names like The Cacao Mint One, 0.0 Sour, Cashmere Hops and HBC 472 Hops. Brooklyn's move echoes move by its craft contemporary Sierra Nevada to invest in NA brand Riot Energy in Mar (BBI, Mar 9). Sierra already plays directly in hopped water segment via its Hop Splash line. Among Hoplark's other direct rivals, Hop WTR brand has drawn investment and distribution alliance from Corona and Modelo marketer Constellation Brands. Heineken's Lagunitas brewery offers Hoppy Refresher while NA beer power Athletic offers Daypack, so there's lots of activity in fledgling segment. Consumer Edge Research tracks hopped waters as doubling their share of alc-alternatives over past year to 3%. Partners released no details of transaction, in which Boulder-based Hoplark was advised by Whipstitch Capital.
For female-founded Talea Brewing in NY, one sweet spot has been fruity sours and other beers that avoid astringent hop bite of the IPAs that dominate other local brewers, in process expanding appeal to females who might not have realized they could become beer lovers. "Easy to love" beers for "non-beer bros," is Talea's credo. What better partner for a collab then than Olipop, the maker of approachable prebiotic sodas that's bent on poaching its customers directly from conventional CSDs. On Saturday, Talea's flagship Williamsburg brewery (it operates taprooms in other parts of city too) was offering enthusiastic visitors flights of Olipop Strawberry Vanilla and Tropical Punch sodas and specially brewed beers in emulation of those flavors, Strawberry Vanilla Cream Ale and Tutti Frutti Sour Ale. "Think pink and celebrate our collaboration!" urged menu cards at brewery, whose entry was encircled by pink balloons. Also in mix were ice cream floats and strawberry pizza. Olipop marketing exec manning sampling table outside said Olipop product actually was used in brewing process.
Stepping into new role as prexy of Coca-Cola North American Bevs at start of year, Jennifer Mann apparently has spent more of her time to date listening than talking. But in rare speaking appearance to date, she offered several updates on KO's biz and brand initiatives last wk while speaking alongside global ceo James Quincey at Barclays Global Consumer Staples Conference.
With a new term sheet in hand that should enable it to fund a series of bev acquisitions of targets with revenues in $20 mil to $75 mil range, Splash Beverage Group has signed a letter of intent for its biggest acquisition to date, of Western Son Distillery, Splash prexy/cmo Bill Meissner told us.
Molson Coors Goes All In on Zoa Energy with New Investment to Support Doubling of Marketing Budget
In its first two years Zoa Energy has worked to find its footing, undertaking radical revamp early this year and broadening the awareness-building lift beyond cofounder Dwayne "The Rock" Johnson to include flock of recently enlisted college athletes and more broadly aspirational messaging. Now its strategic partner Molson Coors Beverage is doubling down, increasing its investment in brand that currently is main prong of its push into NAs and getting board representation for first time. It remains a minority investor, but now a substantial one.

