Beer Marketer's Insights
Coca-Cola Hit with Proposed Class Action Suit over PFAS Levels Found in Simply Juice Brand
A NY-based consumer filed a proposed class action lawsuit in Southern District of NY on Jul 14 that alleges Coca-Cola's Simply Orange Juices fail to disclose its Tropical OJ contains PFAS chemicals and reminds that those "forever chemicals" are linked to long list of potential diseases.
With Women's World Cup kicking off this wk and US team going for a 3-peat, Truly is leaning in hard as official hard seltzer of US Soccer. Co's 24oz Wild Berry flavor and 12oz Mixed Berry pks will both feature US Soccer crest. And brand intro'd limited-edition Orange Slices flavor as "a tribute to a generation that grew up playing soccer and enjoyed orange slices as a go-to halftime snack." It's available only at Truly's LA outposts and online, sold in 16oz 4pks for $23 "in honor of the 2023 tournament and 23-player roster." Truly will also host events and engage in "new partnerships" such as US Soccer x Truly Bar Network (interactive map for fans) and Down Under with the American Outlaws, the largest US Soccer fan club.
Crisis averted. Police arrested a man in Ft Worth, TX this weekend after he reportedly threatened to shoot his wife and her co-workers at MC's Ft Worth brewing facility, local papers reported. Over 500 people were working on Saturday and co "initiated a lockdown" as police were tipped off on his intentions, noted Fort Worth Star-Telegram citing police press release. Thankfully, nothing happened and the man was charged with "making a terroristic threat."
AB keeps churnin' out Bud Light digital content with NFL players, this time debuting 15-second spot with Dallas Cowboys QB Dak Prescott. That marks Bud Light's 3d digital spot with an NFL player enjoying their summer off-season, including Dak, George Kittle and Travis Kelce, setting the stage for big boost in investment for NFL season. Yet no mktg moves made by AB/Bud Light have noticeably moved the needle on Bud Light declines in scans so far.
Beer sales improved in tracked off-prem channels during 2-wk period surrounding July 4 holiday. Sales grew 4% with volume down 1% for 2 wks ending July 9 in Circana multi-outlet + convenience data. A clear acceleration vs beer $$ up 2%, volume -3% in Q2 scans and $$ up 3%, volume -3% thru 1st half of 2023. Yet spirits outperformed in these channels with $$ up nearly 10% and volume +11% for 2-wk period. Wine $$ grew just 2% with volume down nearly 3%.
Mulvaney Posts Didn't Violate Ad Code, Review Bd Finds; Dissent Agrees with Cruz; 80% 21+, AB Sez
An estimate that over 80% of Dylan Mulvaney's Instagram audience is over the legal drinking age proved to be the key fact that cleared AB of the contention that the influencer's posts sponsored by Bud Light violated the Beer Institute's Ad & Mktg Code. The co "has not violated" the code and the "posts are consistent with" it, org's Code Compliance Review Bd wrote in decision today. However, 1 of 3 CCRB members dissented from that decision, largely agreeing with complaint brought by Sen Ted Cruz that Mulvaney broadly "appeals to persons below the legal drinking age with a 'special attractiveness,'" and therefore should have been out of bounds as a potential partner for AB. How hard Cruz will push back against this decision remains to be seen.
Constellation delivered its revised Standards to distribs late last week, which included some striking new language. "Constellation Beer prohibits the use of supplier-owned e-commerce ordering platforms (e.g. BEES, my Molson Coors, Heineken's DOT)," Constellation wrote. According to STZ distrib agreement, "it is the responsibility of our Distributors to safeguard any passively or actively collected Constellation Beer Data," STZ noted pointedly. In other words, using BEES and other such platforms could be construed as violation of STZ agreement. STZ's contract stipulates that standards can be revised without distribs' written approval, INSIGHTS understands.
Walmart has switched things up for its annual Open Call event soliciting pitches from entrepreneurs behind American-made brands who'd like to enter Walmart or Sam's Club chains. For tenth anniversary of event it's shifting from early to mid-summer date to fall, Oct 24-25, during Manufacturing Month, with pitch portal open from tomorrow thru Aug 18, per recent announcement .
Wildpack Beverage, which has pursued unusual plan of establishing publicly traded copacking biz spanning the continent, reported strong growth but steep losses in Q4 while promising details and Q1 results in a week's time. Vancouver-based co said revenue rose 47% to $9.76 mil on growth in production volume of 138% to 63.1 mil cans. But net loss widened to $20.82 mil from $12.26 mil a year earlier. Separately, in update on most recent month, Jun, co reported $7.57 mil confirmed customer orders and total throughput of 37.02 mil cans comprised of 4.94 mil decorated cans, 3.43 mil filled cans, 5.44 mil printed sleeves and 23.21 mil brokered cans. But utilization levels didn't exceed 41% as co grappled with "operational adversities including city water shutoffs, equipment failures and vendor delays." Details on that presumably are due next Mon on investor webcast . . . Reed's Inc is hoping to catch new wind in UK after enlisting Somerset Cider Solutions as copacker for its Virgil's line of natural CSDs. At time brand has been hit with inflationary pressures, producing locally should enable its longtime distributor Empire Bespoke Foods to go out more aggressively. "The UK has been a very strong market for our classic, bold flavors of Virgil's sodas," said ceo Norm Snyder. "However, as a result of inflationary pressures, pricing to consumers has increased disproportionately within the market segment." Now brand can get back to more competitive price. Somerset will make Root Beer, Black Cherry, Vanilla Cream Soda and Orange Cream Soda flavors. Norm said co hopes to pursue similar model in Europe and in Asia.
The CPG-ification of Health-Ade marches on with announcement today that LA-based kombucha marketer has named the Tylenol and Listerine vet Shawn McLaughlin as chief sales officer. Shawn, whose resume spans Daiya Foods, Tessemae's and J&J, reports to Chris Lansing, the P&G, Peet's Coffee and PepsiCo vet who slid into ceo role in Dec after prior ceo Jack Belsito moved on without explanation (BBI, Dec 14). McLaughlin's appointment comes as co has pursued partnerships with likes of LA Dodgers and media personality Ryan Seacrest in ambition of bringing booch to broad array of Americans. Lansing cited "Shawn's depth of sales leadership expertise in both blue-chip CPG companies and emerging better-for-you brands" in explaining why he's the right choice at this stage of the co's growth. Tessemae's is maker of organic condiments and Daiya is altdairy player. Recall that sales at Health-Ade were long run by Vanessa Dew, who cofounded co with married couple Daina and Justin Trout. She stepped into interim ceo role after Belsito left, then chief sales officer before moving on 4 months ago. Only Daina remains involved, serving as chief mission officer and board observer since Aug 2021, per her LinkedIn profile.

