Beer Marketer's Insights
Lagunitas key execs are suddenly shuffling in and out and more ex-Heineken blood is entering the mix as sales remain soft in the US. Co appointed Heineken vet Hannah Dray as interim CMO yesterday as previous CMO Paige Guzman left, Lagunitas CEO Dennis Peek announced and INSIGHTS Express wrote. Paige's move comes shortly after Lagunitas head of sales Tony Amaral left the co in Jun and was hired by competing co Firestone Walker (see Jul 7 issue). Paige joined Lagunitas as CMO back in Aug 2020 and her last day was last Friday, Hannah told CBN in separate chat. "A thorough search for a dynamic and seasoned leader to fill our CMO" permanently is already "underway," Dennis assured in released statement. Dennis is currently filling in the head of sales role while they search for Tony's replacement too, Hannah shared.
Costco Not Restocking Bud Light? Bud Light Backyard Tour Lineup; George Kittle Digital Spots
Is Costco planning to not reorder/restock Bud Light for its stores? That's conclusion many news outlets jumped to when social media posts swirled regarding Bud Light getting the "star of death" or "black star" at certain Costco stores, thought to signify said product will not get restocked, so get it while you can. Pics circulating on the interwebs and reposted in articles from NY Post show 24- and 36-pk cans with an asterisk in different stores. (The 24-pk pic shows a stack of Firestone 805 Blonde nearby too, perhaps suggesting photo was taken in CA.)
"Unprecedented" Damage and "Lack of Behavioral Correction," Sez HSBC's Laboy About AB in US
"The damage inflicted on its top selling brand (in its biggest market) combined with the lack of behavioral correction is, to us, unprecedented," begins HSBC's managing director Carlos Laboy in a tough preview of ABI'S 2d qtr earnings. He forecasts an 11% rev decline in North America for ABI in 2d qtr and a $950 mil drop in EBITDA for the full yr. And yet, such is size and strength of ABI elsewhere, that Carlos is still modeling a 4% EBITDA increase globally for full yr. Tho he reduced his earnings estimates, he still sees significant upside potential for the stock.
As several new cross-branded entries from non-alc and wine & spirits worlds pile into beer/malt bev space, they collectively continue to gain share. Tho sales are more of a mixed bag as entries start to lap bigger rollouts. And these brands sure do generate disproportionate amount of buzz relative to their size.
Coca-Cola is set up to explore alcohol more seriously and get more heavily involved in strategy, mktg and sales of its crossover brands. KO officially established a federally-permitted alc subsidiary dubbed Red Tree Beverages, created late last yr in effort to firewall that biz from its non-alc operations, Beverage Digest first reported this morn. Notably, Red Tree received a TTB wholesaler basic permit for an Atlanta office address, INSIGHTS found, even as Coke insists it has no intention to set up its own distribution arm. Instead, co seeks to participate more fully in mktg and strategy for its alcohol RTDs using Coke trademarks, it sez, which will continue to be produced by 3rd-party partners. How might that change the way Simply Spiked, Topo Chico hard seltzer, Jack & Coke RTDs and Fresca Mixed show up in mkt going forward?
Throwback Thursday
This week in 1998, INSIGHTS reported on Pabst decision to switch all its contract biz over to Miller. Move came less than 2 yrs after Stroh picked up Pabst's remaining Milwaukee brewing biz, noted INSIGHTS. Miller announced it would brew 2.8 mil bbls for Pabst annually for 5 yrs, starting Sep 1. This was big win for Miller as it improved its efficiency, raising co from 87% capacity to 92% capacity, provided volume held steady (it didn't). Miller also achieved strategic advantage by striking blow to Stroh. Pabst contract biz accounted for 12% of Stroh's production capacity, then around 19.2 mil bbls. With loss of Pabst biz, "coupled with Stroh's current volume drop, brings Stroh down to about 80% of capacity or less," wrote INSIGHTS. Stroh shipments had plummeted from 19 mil bbls in 1995 to ~13.6 mil bbls by end of 1998. Pabst acquired Stroh brands the following yr. Currently, Pabst in midst of moving volume out of MC facilities and into City Brewing.
Lagunitas key execs are suddenly shuffling in and out and more ex-Heineken blood is entering the mix as sales remain soft in the US. Co appointed Heineken vet Hannah Dry as interim cmo today as previous cmo Paige Guzman left, Lagunitas ceo Dennis Peek announced. Paige's move comes shortly after Lagunitas head of sales Tony Amaral left the co in Jun and was hired by competing co Firestone Walker (see Jul 7 issue of sibling pub Craft Brew News). Paige joined Lagunitas as cmo back in Aug 2020.
TTB Hears Earfuls on "Spiked Soft Drinks" from Trade Orgs, Lotsa Folks without Clear Industry Links
Concerns with crossover bevs, or alc bev entries based on non-alc brands, pop up in a large number of comments submitted to the TTB as part of its review of fed trade practice rules. Some familiar voices, including trade orgs like NBWA, the Brewers Assn, some state distribs and a couple of public health and consumer advocates, root their comments in discussion of slotting fees, one of several specific topics on which TTB sought input. But many others, including over 3 dozen individuals with no obvious ties to the biz, veer off topic, commenting broadly on the phenomenon, often with heightened, hair-on-fire rhetoric.
Teamsters at Leinie Plant in WI Started Strike, Seek "Fair Wage, Fair Contract" from Parent Co MC
After around 3 dozen workers at the Leinenkugel's brewery in Chippewa Falls, WI voted to reject their last offer from parent co Molson Coors, members of Teamsters Local 662 initiated a strike on Mon, union organizers announced. "Meager wage increases" offered by MC "did not come close to giving workers what they deserve," org wrote. "We are sick of the corporate greed and want a fair and equitable pay increase," a maintenance technician at the brewery asserted. MC chief communications and corporate affairs officer Adam Collins commented: "we've made a competitive offer that exceeds local-market rates for similar unionized roles, and despite the circumstances, we're hopeful for a resolution that benefits everyone. In the meantime, we don't expect an impact to our product supply at retail."
O'Connor Brewing Sells VA Outpost to Armed Forces Brewing Co; State "Successfully Competes" Again
A sizable brewery is changing hands in Virginia. O'Connor Brewing sold its Norfolk location to relative newcomer Armed Forces Brewing Co, including turnkey facility expandable up to 30K-bbl annual production. O'Connor finished last yr right around 15K-bbl regional threshold, Brewers Assn estimates, and co's last day of operation at Norfolk will be July 23. But the "brand will live on via a new partnership with another licensed, high-quality brewing organization right here in Virginia," co posted to social media. It'll still be sold in existing VA and NC mkts, and arrangement will allow co to seek new distribution expansion oppys and innovate "in a more competitive environment."