Beer Marketer's Insights
US beer industry mktg spend in measured media channels continued to decline at double-digit pace in 2022 vs 2021, according to Ad Age report. (Keep in mind, increasing and significant media $$ continue to shift toward digital/social channels that aren't captured as well by these metrics.) Total spend slipped 15% to $1.4 bil with top-10 suppliers making up 97% of mix. Five of the top-6 suppliers saw spends in measured channels dip including 4 down steeper than industry avg: AB and MC spends each -19%, Constellation -16% and HUSA -22% vs year ago. Even as its measured media spend declined, Constellation pulled further ahead of AB as #1 beer media spender in measured channels at $371 mil vs $335 mil in 2022. Nearly $100 mil ahead of MC too. Recall, MC noted that half of its media spend now in digital on last quarterly conference call. And Constellation marketing spend rose $54.7 mil in its fiscal 2023 for 12 mos ending Feb 28, 2023, co reported.
FMB Bigger than Craft for 4 Wks in Circana MULC; Imports +2.1 Share; Hard Seltzer Wipeout Cont'd
Flavored malt bevs reached new heights in summer scans, surpassing craft beer to become 4th largest beer segment by $$ in tracked Circana multi-outlet + convenience channels. FMB sales jumped 19% to $406 mil for latest 4 wks thru Jun 18 in Circana MULC. Snagged 1.4 share of beer $$ to 10.2 total. Craft $$ grew 1% to $404.4 mil, shedding 0.2 share of beer to 10.1 total. By volume, FMBs now larger than craft for latest 4 and 12 wks thru Jun 18 in these channels. Twisted Tea continues to drive the segment most of all, growing more than 40% for 4 wks and surpassing Natty family to become 9th largest beer family by $$. Simply Spiked still up nearly 300% for 4 wks as it began to lap last yr's launch (tho slowed to +50% in latest 1-wk). Big incremental gains from Monster's Beast Unleashed, among other new entries this yr, continue to bolster FMBs. And Cayman Jack, Clubtails, Four Loko, Fireball (malt-based) and Jack Daniel's FMBs all keepin' up double-digit growth paces.
To commemorate its 194th year in beer biz, Yuengling's rolling out limited edition 12-oz cans that read, "Let's Go USA," featuring a "stars and stripes design," reported Fox News. "We have a story that nobody else has. We're Americas oldest brewery, six generations, and we're super excited and proud about it," said Wendy Yuengling. Besides patriotic anniversary cans, Yuengling is getting its message out with 2 new spots that touts co's "Perseverance" and portfolio that provides a "Beer for Every Taste." Yuengling's long-running position as America's oldest brewery is paying off at time Bud Light is still reeling from boycott declines.
Bud Light decline showin' little-to-no sign of improvement in scans. In fact, sales drop was slightly steeper, $$ down 28.5% and volume -31.1%, for latest week thru Jun 17 in Nielsen xAOC + liquor plus convenience data shared by Bump Williams Consulting. So the largest brand in biz (at least for now) is down 11% by $$ and -15.6% by volume YTD thru Jun 17. Dollars still soft for Budweiser (-12%), Mich Ultra (-4%), Busch Light (-8%) and Natty Light (-6%) in latest wk thru Jun 17. Notably, their avg prices rose at lower rates too, with Bud Light, Mich Ultra and Bud avg prices up ~3% and Busch Light and Natty Light up ~5% for 1-wk period. AB also debuting various new mktg initiatives for top brands including just-announced new Mich Ultra "Moments LIVE" workout plus live concert events in partnership with Rumble Boxing this Jul-Aug.
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. That will be 3d New Eng state to sell (following ME and NH) plus MD/DC deal that INSIGHTS 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 Haus KY, it's majority-owned by JD Willett and George Fisher and will remain so.
Biggest beer profit pool in the world got even bigger. US profits hit $10.7 bil for suppliers in 2022, according to Bernstein report titled "North America… A steadily growing $15bn profit pie, with STZ the biggest share gainer." So US makes up almost 3/4 of beer profits across US, Canada and Mexico. And North America remains "by far the most important" global beer profit pool, despite having just ~6% of world's population.
How does bevco based in remote part of Michigan go about conquering NYC? For Holland-based Boxed Water, seeking to make a splash after enlisting Tropicana Brand Group as DSD partner in big burg, the effort involved gathering media, influencers and regular exercisers last Thurs eve at SoulCycle location in Williamsburg, epicenter of hip, affluent youth, for round of exercise, aromatherapy and hydration. Among key messages team was seeking to inculcate was that sustainable water associated with tree-planting effort now has tilted effort right to undercanopied parts of metro areas, including Queens in NY (tho Williamsburg itself could use a few more trees too).
FANCY FOOD SHOW: Brisk Start to Fancy Food Show NY with Registration Back to Pre-Covid Level
Specialty Food Assn indicates there is robust interest in summer edition of its twice-a-year gourmet food shebang, reporting that exhibit space at Fancy Food Show is sold out and attendee registration back to pre-Covid levels. Show opened yesterday with 2,000+ exhibitors at NY's Javits Center, including 550+ exhibitors with new products and 250+ first-time exhibitors (tho we noticed that some listed as first-time, like Just Ice Tea, actually had exhibited before). Among new features of show, as SFA prexy Bill Lynch outlined, are Plant-Based Pavilion, as well as Sips Bay in the Beverage Pavilion, Lower Cheese Side in Deli Pavilion and The Plant-Packing District in Plant Based Pavilion, punning on city nabes like Kips Bay, Lower East Side and Meat-Packing District. As our reporting will show, this seems to be year in which adult, non-alc bevs are key theme, as is upcycled food. SFA claims show draws from wide range of buyers, including national grocery, big box retailers, foodservice, indie grocery, indie and specialty retailers, hospitality, luxury department stores and natural retailers. Summer Fancy Food Show claims to be largest specialty food industry event in North America, exceeding winter edition that recently relocated from SF to Las Vegas.
At time gut pops like Olipop and Poppi have been coming on strong, is there room for a gut seltzer? That's tack being taken by Kombucha Town, small but established player out of Bellingham, Wash, that was able to trademark the name Live Seltzer and has been edging the 12-oz canned entry into regional retailers like Smiths and Safeway's Haggen's banner even as founder Chris McCoy works with Panorama Marketing's Paul Curhan to refine concept to include addition of descriptor "prebiotic sparkling water" and graphics that will portray natural landmarks like Mt Baker in interest of positioning Live Seltzer as an "adventure beverage." Development had begun just as pandemic was hitting US (BBI, Mar 30 and Jul 28 2020).
Clearly Canadian seems to be finding strong retailer response to zero-sugar and unsweetened sublines it launched earlier this year to address key shortcoming of what had long been a heavily sweetened brand (BBI, Mar 7). After debuting this spring at Cost Plus World Market, Zero-Sugar line next week will enter all Kroger banners as well as go chainwide at Publix in SE. As sales chief Jaron Friedman noted at Fancy Food Show yesterday, key to effort has been to still "deliver the bold taste that fans know and love," feat it's accomplished via use of proprietary sweetener blend of Reb-A and Reb-M forms of stevia. After all, he noted, brand sources 80% of its users from CSDS, and those consumers are not looking for pallid taste of "Skittles dissolved in water." As for Sparkling Essence extension, that's debuted at Cost Plus World Market and Meijer chains, with next expansion moves to be disclosed soon. As with core entry, brand uses Canadian spring water, not processed tap water, and natural flavors and other ingredients.

