Beer Marketer's Insights
ABI highlighted on its conference call that it's losing more than 5 mkt share points in US scan data since Apr, in chart co used as evidence of its "stable" market share. It's extremely unusual for a co to highlight such a big share loss. AB presented this chart as, if not progress, then at least not getting worse. Here are the deets: AB down 5.2 share points in Circana data the week ending Apr 30 (volume in multi-outlet + convenience), chart showed. Share loss climbed to 5.63 share in May, dropped slightly to 5.42 share in June and now at 5.36 share so far thru Jul 23, including a 5.26 share for 1 week thru Jul 23. That was slight improvement (since May), Bernstein's Trevor Stirling pointed out on call. But ceo Michel Doukeris said it's more a "stable scenario," later adding it's "stabilization with signals of improvement when you cut across different states and channels."
Hot Summer of Labor Unrest: No Deal to End Strike at Leinie; Employee Lawsuits Hit Fed Cts
Workers across industries are turning up the heat on employers in the summer of 2023, marking it as one of the hottest for labor unrest in some time. Hollywood strikes, UPS negotiations and claims of union busting by Starbucks take most of the headlines. But the beer biz has more than a few current disputes, too. Striking workers at Leinenkugel's plant in WI expressed disappointment that parent co Molson Coors stuck to its prior offer in recent negotiations, the LaCrosse Tribune reported yesterday. Workers assert that offer doesn't keep up with inflation, a primary concern. Co contends it is "competitive and exceeded local-market rates for similar unionized roles," as spokesperson Adam Collins reiterated to paper.
Molson Coors will bring Blue Moon brand into the non-alc beer category with NA version of its flagship Belgian White, co announced late Tuesday. Brand will launch nationally just in time for Dry Jan 2024, available in 6pk 12oz cans and clockin' in at 80 calories, under 0.5% ABV. Ironically, the original brewmaster of Blue Moon, Keith Villa, already created a similar "Belgian-style White" non-alc brew thru his company Ceria Brewing, which pivoted to non-alc beer as THC-infused versions proved challenging to sell. Tho Ceria non-alc beers remain very small, at least in scans, declining double digits. Other non-alc wheat style brands haven't sold as well as other NA beer styles like lager, golden ale and IPA so far.
Even tho scan data and financial analysts had accurately assessed both key aspects of ABI results, it's still shocking to see the official numbers. In US, AB shipments dropped 15% and its sales-to-retailers down 14% in Q2, "primarily due to the volume decline of Bud Light." That's undoubtedly AB's worst qtr since the 1976 strike, when AB down 17.5% for yr. But as hard as AB hit in US, its strong global growth led to 7% rev gain and 5% EBITDA gain overall in qtr.
Yee-Haw Brewing's is moving its headquarters to Knoxville, Tennessee. After opening a brewery, taproom and beer garden in the city earlier this yr, the Knoxville newcomer acquired another building north of downtown to house its new HQ. Yee-Haw bought The Central Collective's property for $725K, Knox News reported citing local records. The brewer already began moving in and is looking to be "fully settled" by the fall, Yee-Haw spokesperson Kimberly Wunderlich told the paper, while Central Collective is no longer operating there.
A Boise beer brand is on the block. Idaho's Powderhaus Brewing is up for sale as a turnkey facility with a $3.5 mil asking price, the Idaho Statesman reports. Co's space includes an 8K sq-ft production facility plus a taproom, enlisting TOK Commercial real estate group to aid with the sale process. Powderhaus will continue normal operations in the interim. Owners Mark and Lisa Schmidt opened the brewery in 2015, but "it's now time for us to spend time with our seven grandkids and raise some chickens," Lisa said in a release.
O'Fallon Seeking Buyer Following Bankruptcy
After filing for Chapter 11 bankruptcy in June, O'Fallon Brewery is seeking a capital infusion. Co's searching for a buyer for its facility just outside St Louis. The "optimal solution" would be selling the building and brewery to the same buyer, prexy Jim Gorczyca told the St Louis Biz Jnl, adding "that's our No. 1 pursuit." But co hopes to "lease back the property so it can remain open and expand as its moves through bankruptcy," the Post Dispatch reports separately. The 38K sq-ft warehouse is listed at nearly $3 mil and has actually been on the mkt about 1.5 yrs. Yet while the property's seen "nearly a dozen potential buyers," it hasn't "been able to strike a deal yet," said Jim.
Montauk Brewing is further filling out its northeast distribution footprint. The Tilray-owned brand is partnering with Origlio Beverage and Banko Beverage to bring its beers to PA, including Philly, Scranton and Lehigh Valley. Following acquisition late last yr, Montauk rounded out NY and NJ in Mar while adding CT and RI to its footprint. Now it's adding PA to the mix, after also expanding across mkts such as CA, GA and FL (using SweetWater's existing infrastructure). Tho still a long way to go to hit stated goal of becoming a national brand.
Partake Brewing has a new president. The Canadian non-alc beer brand promoted chief commercial officer Evan Cohen to prexy and CCO, while founder Ted Fleming will stay on as chief operating officer, co announced yesterday. Ted will maintain a focus on innovation, and among several exec shuffles, former director of mktg Sara Ross was also elevated to mktg veep in "recognition of her work leading our marketing efforts and latest rebrand."
Short's Shipments +6% YTD; Up Double Digits Since Mar, Eyeing Double-Digit Growth For 2023
Short's Brewing shipments are up 6% yr-to-date and up double digits since Mar, CEO Scott Newman-Bale shared with CBN. And co now anticipates ending the yr "with double digit growth" despite trimming its distribution footprint in 2022. Recall, the Bellaire, MI-based brewer finished last yr at 40.7K bbls according to Brewers Assn stats, tho closer to 50K bbls including all its beyond beer products.