Beer Marketer's Insights

Beer Marketer's Insights

AB ceo Brendan Whitworth appeared on CBS Mornings today to talk about (what else?) Bud Light, in his first mass media appearance since crisis began. "Many in your position would be running for the hills at this point," Gayle King began, "because since April you've faced a lot of incoming," she added. "It's been a challenging few weeks," acknowledged Brendan, where "the conversation surrounding Bud Light moved away from beer" and became "divisive."

NY craft distribution has an intriguing new player. After launching an online platform dubbed Drink NY Craft two yrs ago, Chad Meigs is launching 2nd phase of that idea: a more traditional distribution biz aiming to get New Yorkers to drink more craft beer brewed in their home state. Based out of Syracuse, NY, Third Space Distribution carries only NY-based craft cos, with 8 breweries on the books and plans to grow, per recent Syracuse.com profile. It currently services "about 65 accounts in Onondaga, Madison and nearby counties," delivering to bars, restaurants and shops with goal to expand "across the state."

Almost a year after strict new rules for brewery taprooms and events went into effect in NJ, state legislators seem poised to lift many of those rules and other restrictions. Yesterday, the state Senate unanimously passed a bill that would wipe out most of the new rules, including those that limited the number of on-site events, restricted breweries from coordinating with food providers, limited the sizes of the televisions in their taprooms and more, NJBiz wrote. While those restrictions are all newer interpretations of code created by the state's ABC, bill would also change state law that requires visitors to take a tour of breweries. Measure goes one step further, too, lifting the annual volume cap for the "restricted brewery license" from 10K bbls to 300K bbls. Bill now heads to the Assembly, where a key committee passed a companion measure last wk.

Multiple distribution expansions announced in past wk or so. Iowa-based Toppling Goliath is now officially distributed in North Carolina, partnering with Tryon Distributing to bring its brews to another state, the brewer posted on social media. Co seemingly slowed its distribution expansion of late, but was at 32 states in mid-2021 after adding several new mkts that yr. Its shipments declined 12% to 37K bbls last yr, according to Brewers Assn stats.

Several smaller alc bev suppliers recently changed their operating structure. Birmingham, AL-based Ghost Train Brewing officially filed for Chapter 11 bankruptcy. Tho the brewery remains open, court documents detail plans "in place for an entity known as PCI GT Brewing LLC to purchase various assets from the brewery," Birmingham Biz Jnl reports. Paperwork shows a planned $3.5-mil loan to PCI GT Brewing from ServisFirst Bank "for acquisition of the assets of Ghost Train Brewing," plus separate $2 mil loan to refinance some of the brewery's debt. Filing also notes that supply chain issues delayed and drove up the price to build Ghost Train's 2nd location, while the brewery suffered from reduced foot traffic and construction delays for its wholesale arm.

Parent co Tilray continues to push Montauk Brewing with slew of new initiatives this summer as sales grow strong double-digits (see Jun 20 issue). Montauk introduced its first official Wave Chaser extension and first-ever variety pk as it recently celebrated its 11th year anniversary celebration, co announced. Box of Montauk variety pk includes flagship Wave Chaser IPA and Juicy IPA plus new Surf Beer golden ale and Tropical IPA. Tropical IPA and Surf Beer both available in 6pks and draft too. An all-new Major Wave Chaser will delve into high-ABV single-serve mkt, clocking in at 9.2% and sold exclusively in 19.2oz cans.

While MN's Surly Brewing remains a sizable regional brewer, co's seeking all kinds of new avenues amid tuff declines on its own brand in recent yrs, Axios report and interview with founder Omar Ansari highlighted. After nearly reaching 100K bbls in 2017, Surly production dropped 37% to 63K bbls by 2022, article noted citing state production data. Sales continue to slip double-digits in 2023 scans. Surly "was at the forefront of a beer revolution in Minnesota," and now co's "battling for market share and tap handles with the competition" Omar and co "helped create, while also trying to navigate a changing beverage industry that is flummoxing both him and other brewers," article asserts.

Turns out Sheehan Family Cos has deal to sell another of its craft arms, Craft Rhode Island. C&C Distributors (Mancini family, Coors house in RI) will buy about 160K cases and deal expected to close in July, as sibling pub INSIGHTS Express reported. That will be 3d New Eng state to sell (following ME and NH) plus MD/DC deal that CBN reported last Friday. Correction: tho it's listed on Sheehan Family Cos website, Legends does not sell Flying Dog. Clarification: Tho Sheehan Family Cos has stake in Beer House KY, it's majority-owned by JD Willett and George Fisher and will remain so.

Craft beer $$ grew 1% for the latest 4 wks thru Jun 18 in Circana multi-outlet + convenience data. The second 4-wk period in a row where craft $$ grew and share losses improved in these channels. Craft still shed 0.2 share of total beer $$ for 4 and 12 wks, but that's much better vs ~0.7-pt drop in Q1 scans. Volume remains softer, down ~3% for 4 wks and 12 wks. Segment's 4% increase in avg price per case kept $$ sales up. Yet FMBs popped 19% for 4 wks, putting total FMB $$ ahead of craft in Circana MULC channels for this period. FMB volume now ahead of craft for latest 4 and 12 wks. (All-channel craft sales and volume still larger by a good amount.)

Nuun brand known for its tablet format has added Nuun Sport Hydration Electrolyte Powder Drink Mix that features 5 essential electrolytes but just 1 g of sugar, in Pink Lemonade and Strawberry Kiwi flavors that have broken on Amazon and are heading soon to Whole Foods and Vitamin Shoppe. "We've taken our best-selling Sport tablet formula and created a powder version to provide more options to consumers who want to take Nuun on the road or on the trail," said Aileen Stocks, prexy of Wellness Brands at Nuun's acquirer, Nestlé Health Science.