Beer Marketer's Insights

Beer Marketer's Insights

Class action bar is going after GSK Health's acquired Emergen-C brand on grounds that presence of lab-made D-malic acid undermines its claims that its Raspberry mix uses natural fruit flavors. Suit in US District Court for Middle District of Florida was brought on behalf of consumer named Eunice Jernigan by law firms Wright Law Office and Sheehan & Associates. The latter, of course, is prolific super-suer that recently went after Ghost Energy (BBI, Aug 23). At issue, as Top Class Actions reported, is that recipe employs not the version of D-malic acid that naturally occurs in raspberries but rather a lab construct without informing shoppers. "The combination of DL-Malic Acid with sugars is not equivalent to any natural fruit flavors and natural raspberry flavors," suit states. As Top Class Actions reminded, Emergen-C had been target of Jun lawsuit over Theraflu Emergen-C convenience packs. So its lawyers are busy busy.

Boosting energy and focus without using much caffeine always was going to be an education challenge for BioLift Focus bev line, from an Israel-based co called InnoBev. Supplement entrepreneur Eli Faraggi knew all that going in, given broad reliance by consumers on coffee and energy drinks to achieve those effects. But he's also been learning that, in bev space, more prosaic issues like ingredient costs, packaging and flavor represent an equally formidable hurdle to winning broad consumer acceptance for his science-backed brand.

Joey Nickell continues to build out his team at Clear Cut Brands, recruiting Mike Long as svp and head of commercial sales & infrastructure. Mike is longtime Coke-system exec (Coca-Cola Refreshments bottling arm, then big indie bottler Coca-Cola Consolidated) who spent past coupla years at Bang Energy marketer VPX Sports, where Joey most recently made his own mark. Recall Nickell just recruited VPX's former formulation chief Liangxi Li to team (BBI, Aug 31) . . . At one point a coupla years ago, Rosalind Brewer was considered in good position eventually to get ceo seat at Starbucks Coffee, tho it's possible she despaired of Howard Schultz relinquishing the reins anytime soon. So she segued to ceo role at Walgreens Boots Alliance, even as Schultz did exit ceo role, recruiting ex-Pepsi exec Laxman Narasimhan as his successor. As it happens, Brewer's run at Walgreens hasn't panned out so well, with co saying late last week that she's moved on by mutual consent 2 years after winning job. For a while she was only Black woman to be running a Fortune 500 company. But Walgreens has been struggling as it transitions to greater focus on healthcare, not an area of experience for Brewer. Ex-pharma exec and Walgreens board member Ginger Graham has been named interim ceo as co embarks on search for permanent successor . . . Nutrabolt prexy John Herman, former GNC buyer who oversaw explosive growth of C4 Energy line, has taken on outside role as advisor to Hop WTR.

Avg price increases still managed to grow double-digits in CSDs and sports drinks but price hikes have decelerated in all non-alc bev categories for 4 wks thru Aug 26 in NielsenIQ data reported by Goldman Sachs.

Just added to the Beer INSIGHTS Seminar program: Molson Coors chief commercial officer for the Americas region, Michelle St Jacques (MSJ). Nearing 9 mos into her elevated role heading co's more centralized commercial unit, MSJ will talk about MC's strong recent results, progress and plans. Join us at this year's conference Nov 12-13 in NYC, starting with our welcome reception on the evening of Nov 12 followed by a full day of content and networking Nov 13.

Labatt USA announced it secured a 3-yr deal with Syracuse University for Labatt Blue Light to be the "Official Canadian Import of Syracuse Athletics." Deal kicked off this past weekend with Labatt hosting a tailgate for a couple hundred football fans. Deal also provides Labatt Blue Light with "fully branded lower-level concourse station at the JMA Wireless Dome, as well as four-branded upper level grab and go beverage stations," co shared. This is Labatt's largest collegiate deal so far. "Syracuse Athletics has been such an important part of the Syracuse identity for decades," said brand mgr Jason Folaron.

There still won't be any beer ads on Amazon Prime's airing of Thursday Night Football this season. With so much opposition lined up against it, co's proposal to carve itself out of tied house laws in California couldn't make it out of committee by key deadline last wk, Calif Beer & Bev Distibs shared with INSIGHTS. "Amazon bill dead," org proclaimed, noting broad coalition against it, including state's wine & spirits wholesalers, craft brewers, Wine Inst and Teamsters (hence description of "huge opposition" during Center for Alcohol Policy mtg last wk). Recall, given Amazon's ownership of Whole Foods and other licensed retail outlets, co sought an exemption to laws that bar the co from taking advertising $$ from alc bev suppliers to air commercial during streams of NFL games on Prime. But it would've allowed more than just that. The exemption's scope and impact on state law would've been "unprecedented," CBBD described, serving "no public purpose," while paving the way for "slotting fees."

Another summer gone by, another so-called sip of the summer. Long Drink RTDs are on track to grow "well over 100%" in 2023, co-founder Sakari Manninen told MarketWatch in piece titled "Why the hottest sip of summer comes from Finland." Brand launched in US in 2018 and sold 21K cases in its first yr. But by 2022 it sold more than 1 mil cases, per report, meaning it should easily eclipse 2-mil case mark this yr.

Natl Beer Wholesaler Assn (NBWA) moved to file another amicus brief in support of Olympic Eagle vs Constellation (STZ) as the distrib seeks rehearing in 9th Circuit ct of appeals. Org heavily criticized 9th Circuit "interpretations" of WA law and its decision to reverse Olympic Eagle's preliminary injunction that blocked STZ termination thruout new NBWA amicus brief filed Friday, Sep 1. So org's supporting Olympic Eagle's request for rehearing, takin' another crack at a more favorable reading (for distribs) of WA laws plus the potential application of general franchise law to beer wholesaler contracts in high-level court to set precedent for future supplier/wholesaler disputes.

Ohio beer mkt hard-hit last yr as shipments down about 450K bbls, 6%. But OH shipments trend better than retail sales so far this yr, down 0.7% thru Jun, according to Beer Institute data. AB dropped 265K bbls, 7% last yr, even before Bud Light controversy. But only dropped 0.6 share in soft mkt and still had 48.2 share. That's about 10 points higher than natl avg in 2022. Molson Coors also dropped 7% last yr and much higher than its natl share in OH. At 23.0 share, down 0.3. How much will their respective shares change in 2023?