Beer Marketer's Insights

Beer Marketer's Insights

The Healing Co, which so far has acquired Your Super and Chopra Global on way to assembling "healing community of brands," said it's secured "up to $7 million" in new equity and uplisted from OTC Pink Market to OTCQB Venture Market. The investors included investment office of Burman family, which control major Indian CPG co led by Dabur brand, and Munich-based family office of Stephan and Ingvild Goetz, the noted art collectors and philanthropists. New tranche brings total committed equity funding to up to $17 mil, augmented by $150 mil credit facility to support next acquisitions. NY-based co is aiming for a Nasdaq listing within next year.

Nirvana has opened up a fertile new revenue base with deal with Inspire Healthcare Alliance to recommend that its 1,500 orthopedic surgeons employ an HMB-infused Nirvana Super Pro 3-oz bev shot for patients to take to build lean muscle mass before and after knee replacements and other procedures. Flagstaff International's John Kang and Rick Salas, who operate Inspire and were early investors in Nirvana, also contributed $2.4 mil of a recent $2.6 mil equity addition at time that ceo David Vanderveen said co is about to embark on another raise of as much as $15 mil from athletes, family offices and other investors, en route to Series A round anticipated for maybe 6 months later. Gary Cooperman, a vet of Health-Ade Kombucha and Drinks wine platform, has stepped up from contract role to full-time cfo role and will help in fundraising activities.

This week in 1983, Don Shea, at age 32 took reins as US Brewers Association prexy, succeeding Henry King. (Tho Henry would remain on as a consultant for 5 yrs.) Don's selection was a "recognition of importance of alcohol-abuse issues and Don's abilities as a spokesman and leader," wrote INSIGHTS. On eve of stepping down from his prexy role, Henry King shared his perspective on trade assns and a warning for future at NCSLA mtg. "At one time, trade associations were the spokesman for the industry," noted Henry. "Today, I think, very rightly, corporations are beginning to develop their own government affairs departments, and they're having representation in the federal and state legislatures. But the great danger that comes from this innovative approach is twofold….Corporate representatives will look upon their trade assns in a competitive way rather than in partnership….Corporations will put themselves so far out in front…that they will no longer be identified as a cohesive part of the industry. That could prove to be fatal for their self-interest," declared Henry.

Now it's spirits' turn. Washington law allows in-state distillers to ship directly to in-state consumers and to self-distribute to in-state retailers. But that unconstitutionally discriminates against out-of-state distillers, according to lawsuit filed in fed ct in WA late last mo. Brought by some of the same plaintiffs' attys, led by James Tanford and Robert Epstein, the new suit follows the same basic outline as the complaint they filed in Oregon on behalf of 3 WA brewers and a couple of in-state consumers last yr. Recall, after clearing up some technical issues around who the proper defendants were, OR settled that suit, opening up both DTC beer shipments and self-distribution there. Will WA's restrictions on shipping spirits be the next shoe to drop?

While MC, Yuengling and Pabst brands appear to be benefitting most from Bud Light fallout in recent mos, FIFCO USA's Labatt Blue and Blue Light also saw notable uptick in sales since early Apr. In Q1 scans, Labatt Blue eked out 0.8% $$ gain and Labatt Blue Light was +5.5% with outsized pricing increases and volume down. For latest 12 wks thru Jun 18, Labatt Blue $$ grew 8% and Labatt Blue Light jumped 16%, improving to +5% and +11% respectively YTD. Notably, Labatt Blue Light is getting more of a boost with sales surpassing core Labatt Blue for the year in natl scans. FIFCO USA improved to $$ down -0.3% for 12 wks, still dragged by Seagram's Escapes double-digit drops.

Beer prices continue to rise at elevated rates in recent scan data, with avg price per case up 5% for 4 wks thru Jun 18 in Circana multi-outlet + convenience data. Still up 5.5% year-to-date, now up to $29.70/case on avg. Even as more pricing activity is drummin' up for key summer mos and holidays, most top suppliers' avg prices rose at similar mid-single-digit rates for 4 wks in natl scans. Pabst Brewing stands out as an interesting exception. It's the lone top-25 supplier in Circana MULC channels with avg prices down for period, -0.4% to $23.94/case. Flagship PBR avg price/case still +4% for 4 wks as sales were rockin' up 22%. Rest of the portfolio's avg price/case collectively down 2.5% to $28 for period, driven down by other low-priced brands in the portfolio as well as recent price drops on higher-priced Jack Daniel's Country Cocktails FMB. Four other top-25 suppliers saw prices rise just ~2% in latest 4 wks: Geloso, Lagunitas, Firestone Walker and Sapporo USA (Stone, Sapporo, Anchor). All other top-25 cos saw avg price/case rise 3.6% or more.

Some bev entrepreneurs seem to have a gift for generating endless flow of media coverage as they build brand, tho we're aware a considerable amount of work usually goes into that, too. Among newcomers to burst on bev firmament in this way has been Nguyen Coffee Supply's Sahra Nguyen, generating breathless coverage of her effort to popularize long-despised robusta bean of her Vietnamese heritage, including via canned line rolling out thru Whole Foods, all while elevating profile of Asian Americans who're having a cultural moment.

As reported, recent summer edition of Fancy Food Show in NY was trove of alc-alternative brands. We've already profiled Mingle Mocktails, Twisted Alchemy and Fauxmosa (BBI, Jun 26 and 29). Here are a few more.

Top US spirits co is adding lotsa global non-alc beer capacity. Diageo expanded Guinness 0.0 production capacity by 300% at its St James' Gate Brewery, Irish Times reported, investing roughly $27 mil in new 2-story building and 6 new tanks with total capacity of 500K hectoliters (~419K bbls). That facility is home to "all global Guinness 0.0 production," with main export markets including UK, Europe, US, Canada, Middle East and South Korea.

Dutch brewer Royal Unibrew signed deal to acquire country's #2 soft drink player Vrumona from Heineken for €300 mil ($327 mil). Based near Utrecht, where its plant is, Vrumona employs 325 and markets owned brands like Royal Club, Sisi, Sourcy and Sourcy Vitamin Water and serves as import partner for brands like 7 Up, Pepsi and Rivella. Last year, co generated €200 mil in net revenue and adjusted EBITDA of €25 mil, making for 12X multiple in deal. Among rationales for deal, Royal Unibrew cited product portfolio that's mainly clustered around no/low-sugar entries "with a clear focus on wellness, healthier products and sustainability combined with a comprehensive portfolio of winning brands." It also serves to expand Unibrew's own partnership with PepsiCo dating back to 1949. At site outside Utrecht, Vrumona plant operates 7 production lines with current annual output of 3.1 mil hectoliters, tho Unibrew said "additional long-term investments are needed to replace an outdated filling line and to improve efficiencies, capacities and capabilities" before full potential of acquisition can be unleashed. It's been owned by Heineken since 1968.