Beer Marketer's Insights
You Say Don't Quit? Bills' Hamlin, as Perfect Symbol, Will Team with KDP-Aligned Protein Brand
Launching a new bev during a pandemic requires a certain amount of fortitude, as Danny Stepper noted today in discussing Don't Quit protein line he's helped develop and incubate at LA Libations. Then there's a whole other level of perseverance exhibited by Damar Hamlin, the Buffalo Bills safety who suffered an on-field collapse from cardiac arrest that may have traumatized a generation of football fans, then forged a remarkable recovery that has him hoping to play again. There couldn't be a better symbol of perseverance wedded to clean, healthy nutrition, said Don't Quit ceo Mark French. Now, just a week after ESPY Awards show at which Hamlin tearfully presented Pat Tillman Service Award to Bills training and medical staff that saved his life, Don't Quit has inked partnership that will see Hamlin become face of brand as well as an equity investor. The new partners will augment Hamlin's efforts to deliver automated external defibrillators to high school and college arenas. Hamlin also will team with brand and local retailers to profile athletes and other symbols of perseverance under rubric Persevering Athletes Profiles, with interviews to be shared on Hamlin's social media accounts.
Over past year we've reported on stresses between Alani Nu's influencer founder Katy Hearn and brand's operator Congo Brands that have led Louisville, Ky-based co to explore buyout of brand that would free Hearn to go her own way. Story yesterday from Reuters wire service didn't go into those details but confirms that Alani "is exploring options that include a full or partial sale of the company at a valuation of more than $3 billion," citing 4 unidentified sources. Reuters reported JPMorgan Chase & Co has been enlisted to help vet options. Wire service said sources indicated brand generates roughly $100 mil in EBITDA (earnings before interest, taxes, depreciation and amortization), a figure consistent with scanner data that shows brand to be generating retail sales approaching $400 mil. Congo's founders Trey Steiger and Max Clemons own a significant stake in Alani and Hearn's husband Haydn Schneider also has a piece, Reuters reminded. It said neither Alani Nu, Congo Brands nor JP Morgan responded to requests for comment and Congo execs have consistently declined to comment to us aside from generally disputing that there's truth to story. We'd heard for a year now that Hearn has grown dissatisfied with economics of deal and lessened her participation in activities supporting brand as Congo has sought to raise money to buy out her stake or to find a strategic buyer (BBI, Aug 18). That's a brand that, along with Celsius, has resonated unusually well with female demo that's tended to stay away from energy category.
Helmed by Vita Coco, Flow Vet Dwyer, Hedlum Seeks to Bring a Bit of Bedlam to NA Beer Segment
It didn't take long for Tim Dwyer, the Red Bull and Vita Coco vet who just moved on from Flow Beverage, to emerge with a new project. Working with entrepreneur Michael Scissons he's helming new non-alcoholic beer entry called Hedlum that seeks to inject a bit of levity into burgeoning segment, albeit atop base of credible liquid, starting with Juicy Boom and Wild Haze IPAs. Brand featuring goofy-looking mascot called Heddie - essentially a two-footed hand that's prone to making devil's horn and other, occasionally profane, gestures - is launching next week on Long Island via Anheuser-Busch house Clare Rose, which has watched Athletic Beer flourish via rival house and had sought NA pure play of its own. Dwyer's partner Scissons is Canadian entrepreneur currently behind Careerlist venture who enjoyed several years at Anheuser-Busch InBev working on ecomm, serving as entrepreneur in residence and holding board seat at Zx Ventures fund. Among investors in recently closed friends & family round is Dave Peacock, who forged partnerships with Monster Energy and Icelandic Glacial water during his days at A-B. Among other A-B ties is board member Tom Alison, now at Live Nation. Also an investor is Red Antler agency, familiar from work it did on Cann THC bevs and Jot coffee concentrate as well as CPG marques like Allbirds and Sheertex. Hedlum's initial production partner is Two Roads Brewing, just down the road from Conn base of Dwyer, who serves as ceo.
We are pleased to announce that Constellation ceo Bill Newlands will join us at the 2023 Beer Insights Seminar, taking place Nov 12-13 at Convene in NYC! More speakers to be announced soon. Sign up and save $200 at the discounted early-bird rate.
Ted Cruz Praises Dissent and Disappointed in Majority in CCRB Decision; "Will Continue Efforts"
Senator Ted Cruz wasn't about to let matters end with the CCRB's decision that AB didn't violate BI ad code yesterday. His response is not all that fiery, though he does end with a warning/comparison to tobacco.
STZ Strikes Agreement with Activist Investor Elliott Mgmt; Appoints 2 New Bd Members; Stock Up 6%
There's a strong new voice among Constellation's advisors. Co entered into "information sharing and cooperation agreements" with Elliott Investment Management, a top activist fund and one of Constellation's largest investors, STZ announced yesterday after its annual shareholder meeting. As part of "collaboration," Elliott agreed to "standstill, voting, confidentiality, and other provisions." So it's a seemingly amicable pact with activist investors. But standstill provision (effectively prohibiting Elliott from hostile campaigns against the co) only lasts about a yr in current agreement, Bloomberg reported.
Industry shipments lookin' even softer than initial estimates suggested, according to latest update from TTB on taxpaid volume totals. Domestic brewer taxpaid shipments sank 12%, 1.8 mil bbls in May alone, showing the massive impact of Bud Light/AB softness on industry totals while other domestic brewers' shipment gains unable to curb much of the decline. Net-net, domestic taxpaids dropped 5.6%, 3.7 mil bbls YTD thru May, per TTB.
The rope grew more taut last Friday in the tug of war between retailers that seek more expansive shipping privileges and regulators that aim to tamp down on shipments. The US 6th Circuit Court of Appeals sent one of the many pending wine retailer shipping cases back to a lower court for a closer look on the same day that Tennessee's atty genl filed suit against a half-dozen cos for allegedly shipping spirits into the state. Neither placed a clear "win" on scoreboards for either prospective retail shippers or state regulators, tho both sides are eager to say so. Meanwhile, a pair of recent stories out of Scandinavia, that other bastion of state-owned alcohol control systems, offer intriguing parallels to consider.
CA's Three Weavers is branching out in life after CANarchy. The "avant-garde" Inglewood-based brewer is releasing 2 "aesthetically innovative" product lines, GRDN PRTY cocktail-inspired FMBs plus Three Weavers Non-Alcoholic Brews, per release. FMB lineup includes 4 flavors: Grapefruit Guava Rosemary Collins, Juniper Lemon Cucumber Collins and Pineapple Sage Lemonade. And NAs span 3 styles to start: lager, IPA and Hazy IPA. Co's NA beers are already available, while GRDN PRTY will be sold at select retailers, restaurants and bars across SoCal (including co's Inglewood tasting room) beginning "as early as" tomorrow.
Mark another merger between 2 small craft brewers, as Nebraska's Brickyard Brewery & Distillery is buying Lucky Bucket and Cut Spike Distillery. Lucky Bucket is one of NE's oldest craft breweries, founded in 2008. And it's yet another craft co returning to original ownership, with Lucky Bucket co-founder Zac Triemert now the owner of Brickway. "My goal is to return Lucky Bucket to the place it once had" as a "ubiquitous Nebraska craft beer," he said in release. "There will be some changes," Zac added, including switching from bottles to cans and returning to original recipes for some of its beers. But "this brewery has had a long track record in all of the Omaha metro and Nebraska, and we are excited to modernize the taproom and the production facility." Both brewers produced a bit over 1K bbls last yr, according to BA estimates.

