Beer Marketer's Insights
CBS estimates 90% of its Super Bowl LVIII ad slots are sold for Feb 2024 game, going at ~$7 mil per 30-second spot, per reports in Variety and Sports Business Journal. This wk a yr ago, Fox had sold 95% of slots for around same hefty price tag. ABI "intends to be a sponsor of the event," CBS evp of sports sales John Bogusz told Variety, "but other beer marketers are expected to take part as well," since AB dropped exclusivity rights last yr. Parent co Paramount is running a broadcast of game on kids network Nickelodeon as well this year, tho liquor and gambling ads "probably could not run" on that broadcast, added Bogusz.
Dos Equis' latest innovation is about to hit shelves as brand continues to broaden its offerings. Enter Dos Equis Chelada Mango, sold in 24oz single-serve cans in select mkts including TX, CA, NM, AZ, CO, NV and OK. Line extension builds on "the success of our spring launch" of Dos Equis Michelada, which showed "strong momentum this summer, with consistent distribution gains week over week," parent co Heineken shared. "With the growing trend of flavored beer in the US, particularly the rising popularity of Cheladas as the #1 beer flavor, expanding our flavor offering was a natural next step."
On the eve of some Big Tech tests of new antitrust thinking, with coming start of trial pitting feds against Google and possibility of action against Amazon, "independent supermarkets and their wholesalers" are watching closely. The Natl Grocers Assn (NGA), which reps those bizzes, has advocated for the "strong enforcement of antitrust laws," including the Robinson-Patman Act, basically since its inception 4 decades ago, sr veep of govt relations and counsel Christopher Jones said during Center for Alcohol Policy conference last wk.
Ex-Cutwater Spirits Prexy and 20 Yr AB Vet Shreyas Balakrishnan "Trades Beer for Cannabis"
Blaze Life Holdings hired former Cutwater prexy Shreyas Balakrishnan as ceo of cannabis co. Tho release sez Shreyas served as prexy of Cutwater since 2019, he moved on in May 2023 to another role at AB, veep of Beyond Beer Growth and Integration, according to his LinkedIn page. Current ceo of Cutwater is Brian Kuhn, who was formerly director of innovation for Labatt in Canada as per his LinkedIn page.
Gap between Constellation's growth in tracked off-prem channels vs all-channel depletions is widening this yr as sales continue to accelerate this summer, cfo Garth Hankinson shared at Barclays Global Consumer Staples conference in chat with Lauren Lieberman. For latest 12 wks thru most of Aug, STZ volume grew 13% in Circana multi-outlet + convenience channels, he noted. The "delta" between Circana trend and STZ depletions "typically" is in "low-single-digit" range historically, but "that's increased in recent periods" to "more in the mid-singles." Suggests depletions up 7-9% in fiscal Q2. Garth attributed this growing delta in scans vs depletions to "pricing rollback...largely taking place with large chain retailers" vs "some slowness of rolling back" price in independent channel contributing to "weakness" in indie stores.
Beer shipments didn't get much better in July, slipping 5% for the mo, according to Beer Inst economic report. Domestic taxpaids collectively dropped 8%, 1.16 mil bbls, Beer Inst estimates, while total imports (including beer, NA beer, cider and not elsewhere specified or included products) popped 8%, 290K bbls, fueled by double-digit gain from Mexico, according to US Dept of Commerce data. Steeper AB declines continue to drive industry softness, and other domestic brewer gains still unable to make up much of its losses collectively. Taxpaids shed 6.5 mil bbls, down nearly 7% YTD thru July, per BI estimates and TTB stats. Imports still slightly down YTD tho roaring back toward growth as Constellation accelerated this summer.
Are Current Commerce Clause Suits Just Steps in a Multi-Decade March Toward DTC Beer Shipping?
A federal lawsuit making dormant commerce clause claims paved the way for direct-to-consumer (DTC) beer shipments from out-of-state brewers in Oregon. But did it provide a roadmap for building a nationwide DTC beer market, too? We may still be a long way from that. It took 20 yrs of going state-by-state for wine, as Brewers Assn genl counsel Marc Sorini recently reminded the Vancouver Columbian. And the way states are pushing back against other federal lawsuits that make similar claims suggests that more twists and turns await.
A few mos after founders of NC's Appalachian Mountain Brewery acquired the co and its Boone brewpub back from AB, they cut another deal to shore up production needs. Asheville-based Green Man will produce AMB beers for distribution starting in Sep, the cos announced this wk. Tho agreement described as a joint venture, it only covers production and both AMB and Green Man remain independent.
A few of Dogfish Head's core beer brands are improving in tracked channels while Citrus Squall and other new brands boost trends. Total Dogfish Head beer sales remain soft in tracked off-prem channels as it sorts thru struggling parts of its portfolio. But comin' off solid Q2 with depletions growth for the full brand fam, driven by continued growth of its canned cocktails, Dogfish trends are improving in tracked channels and beyond. In fact, Dogfish beer volume grew in tracked Nielsen data for recent 4-wk period as 90 Minute IPA was flyin', both 60 Minute IPA and Slightly Mighty IPA shored up and Citrus Squall remained a top-20 new craft brand, more than making up for continued double-digit slips on SeaQuench and HazyO, among others.
pFriem Family Brewers on Track to Sell 40K Bbls This Yr; Growing 12% and Leading with Lager
If trends hold thru yr end, Hood River, Oregon's pFriem Family Brewers will be among select group to grow ~15K bbls since Covid struck. The brewer is on pace to pass the 40K-bbl mark this yr, up from about 25K bbls in 2019, CEO Rudy Kellner shared with CBN during a recent visit to the brewery. It's probably the "biggest independent brewer in Oregon with only 1 taproom," as co's "actively looking" for additional outposts, Rudy remarked. And it's growing 12% this yr even as craft category stagnates, led by a lager-forward approach in a limited footprint.