Beer Marketer's Insights
On eve of some Big Tech tests of new antitrust thinking, with coming start of trial pitting feds against Google and possibility of action vs Amazon, "independent supermarkets and their wholesalers" are watching closely. Natl Grocers Assn (NGA), which reps those bizzes, has advocated for "strong enforcement of antitrust laws," including Robinson-Patman Act, basically since its inception 4 decades ago, svp of govt relations and counsel Christopher Jones said during Center for Alcohol Policy conference last wk, as our sibling letter Insights Express reported. Tho conference focuses on alc-oriented issues, this of course is matter of widespread relevance in bevs and beyond, at time empowered regulators have backing from both sides of aisle (albeit for widely varying reasons) to get more active.
La Croix marketer National Bev reported its 9th consecutive quarter of record sales in Q1 with revenues of $324.2 mil, tho that topline represented mere 1.9% improvement from year-earlier tally in segment that's seeing most established players slowing down. Operating income soared 36% to $63.1 mil and net was up 40% to $49.6 mil, per co that trades under FIZZ symbol. Co's 10-Q filing indicated that sales increase resulted mainly from 3.9% increase in avg selling price per case, partly offset by 1.9% decrease in case volume. The volume declined for what FIZZ deems its Power+ Brands (which include La Croix, La Croix Curate, La Croix NiCola and Shasta marques), partly offset by increased volume of CSDs, mainly regional and value-oriented lines. Co maintained $223 mil of cash/equivalents on balance sheet at close of qtr on Jul 29.
Waiakea Hawaiian Volcanic Water, which makes much of its provenance in the island state, has expanded into another category that's also associated with that region's rich volcanic soil: coffee. Waiakea has launched 11-oz canned line of Waiakea Hawaiian Volcanic Coffee, nitro-infused cold-brew offering that's claimed to contain caffeine equivalent of 3 espresso shots but just modest amount of cane sugar as sweetener - 11-12 g for 110 calories per can, ceo Ryan Emmons told us today. It's debuting in in Polynesian Vanilla and Mauna Mocha flavors, including variety pack of both. It uses blend of Hawaiian and Colombian beans, including from Kona, Maui and Kauai tho it prioritizes Big Island farmers given that it's based in Hilo. Entry, with graphics evoking Hawaii's mountains, just went live on website tho Emmons wasn't ready to offer full details quite yet. He said new line has commitments from retailers representing thousands of doors on mainland.
PLANT BASED WORLD EXPO: Copra Coconut Water, Planta Protein, Waterdrop Flaunt Their Stuff
At time some are wondering whether rabid growth of plant-based food/bev category may be stalling out, Plant Based World Expo in NY this week brought ample contingent of exhibitors, mainly on food side, and array of educational programs intended to better seed those products into conventional retail, cooking and entertaining occasions. Among familiar brands on display was Remedy Organics, whose founders Cindy and Henry Kasindorf are keeping their cards close to vest awaiting Natural Products Expo East in a coupla weeks, and trio of players we review below. We attended opening day yesterday at Javits Center, site for Fancy Food Show a few months earlier, and all seemed familiar except for press room where creamer options were limited to soymilk, almondmilk and oatmilk. Dairy milk? Plenty of it at art fair down the corridor.
While it certainly ain't makin' up for broader issues with Bud Light, there's a bit of good news goin' on underneath the surface for AB lately. New Busch Light Peach variant came hot outta the gate in tracked off-prem channels. Sales reached $28.9 mil and nearly 1.4 mil cases in Circana multi-outlet + convenience data thru Aug 13 with virtually all of its sales in just the last 12 wks. So Busch Light Peach was #1 new brand by volume for period, well ahead of other top launches like Modelo Oro (+2007% to 845K cases) and Beast Unleashed Variety Pk (572K cases). Dollar sales are essentially neck and neck with Modelo Oro for period (+2093% to $30 mil) and ahead of Beast Unleashed ($21 mil), since Busch Light Peach avg price/case just ~$21 vs Oro at ~$35.50/case and Beast Unleashed Variety Pk nearly $37/case.
Boston Beer's arrow is starting to point upward as Twisted Tea keeps up remarkably strong growth pace off larger base and Truly's steeper declines begin to lap lower base levels, founder/chairman Jim Koch highlighted at Barclays Global Consumer Staples conference in chat with Lauren Lieberman.
Hurting AB Distribs Now Face Fall Assessments; Some Called Out of Compliance w/ Equity Agreement
One of the most frequently discussed topics in AB distribution system these days is that amidst all the current struggles and losses, this fall AB is going back to its extensive distributor assessment process. Recall, AB suspended such assessments when the Bud Light controversy first blew up and its numbers collapsed. AB has so far been unable to budge the Bud Light trend. So now it's going to ratchet up policing its distributors? For some reason, that doesn't sit well with them. "Tin eared," 2 sources recently called move.
Don't miss this year's Beer Insights Seminar, Nov 12-13 at Convene in NYC! Most recent addition to the program: Molson Coors cco of Americas, Michelle St Jacques, will talk about MC's strong recent results, progress and plans. Speaker lineup also includes Constellation Brands ceo Bill Newlands, Athletic Brewing founder/ceo Bill Shufelt, BeatBox ceo/co-founder Justin Fenchel, NBWA chief economist Lester Jones, a panel of Wall St analysts, plus BMI prexy Benj Steinman's industry overview in an unprecedented yr. More speakers to be announced soon. Sign up and save $200 at the discounted early-bird rate.
Beer Politicized by Partisan Press
After the ill-fated Bud Light partnership with influencer Dylan Mulvaney opened AB to being dragged into a hot & heavy political debate on transgender issues, beer itself became a bit of a political lightning rod. Beer has a long history in American politics, of course. The great equalizer, candidates would once be put to the beer test: would you want to have a beer with them? Now, after 2 presidents who claim to abstain, heavily politicized media outlets use beer stories to score partisan points.
States are learning from each other, their past successes and missteps, as a growing number defend their alcohol laws and their individual 3-tier systems against legal challenges. Such defense remains a key interest of NBWA-linked Center for Alcohol Policy (CAP). So the org's annual Alcohol Policy & Law Conference again featured lotsa talk of various lawsuits making dormant commerce clause claims to expand access to alcohol. And as state regulators, industry attys and others gathered for the meeting in Philly last wk, new filings piled up in fed cts, including motions to dismiss suits in MD and WA.