Long time comin', but Carlsberg finally has a deal to sell its significant beer biz in Russia, co announced today. Tho agreement signed, potential buyer not disclosed as extensive, complicated review by Russian govt still in process. Russia was about 10% of Carlsberg revs in 2021, but co announced intent to depart the country after its invasion of Ukraine in early 2022. Been workin' on sale ever since, expecting a write-down equivalent to around $1.45 bil from the sale, Reuters reviewed.

For past coupla years, cannabis player Canopy Growth and its ally Constellation Brands have touted bright prospects for BioSteel hydration brand, in segment that Body Armor and then Prime proved was ripe for disruption. Canada-based brand spent heavily on NHL activation and targeted US as key growth mkt, riding DSD network comprised in large part of Constellation-aligned beer houses into major large-format chains. Yesterday afternoon, tho, Canopy brass acknowledged they'd overreached with brand in US, even as they said brand's sales had been overstated by $10 mil (Canadian) in fiscal 2022 and another $14 mil in first 9 mos of current fiscal year. Canopy ceo David Klein told shareholders that co has "exited several members of the BioSteel leadership team and are considering all legal remedies available to us, including litigation to recover damages and costs" uncovered in review undertaken earlier this spring. Brand has exited all overseas markets and has rethought US approach where Klein admitted it tried to go too broad too fast. Going straight into major US retailers without first seeding the brand at grass roots "was a bit of an overreach for a company our size," he said. "And so, we just decided to retrench the business a little bit in the US." Co didn't identify which execs had been given the heave-ho. (A longer version of this article also appeared in today's BBI issue).

The #1 energy brand Monster wants to buy what until recently was #3 energy brand Bang. Turns out Federal Trade Commission may have an issue with that - but its effort to investigate could kill the company. That, in a nutshell, seems to be status of delayed bankruptcy auction of Bang Energy marketer VPX after FTC opened an investigation that's created a "major stumbling block" in sale process, in words of debtors counsel Andrew Sorkin of Latham & Watkins, as reported by Americas Middle Market newsletter. FTC process "is expected to take a couple of months at a minimum, and the debtors do not have commitments from lenders or other parties to fund operations or the Chapter 11 process. If no viable transaction is available, the debtors may have to wind down operations and liquidate," as AMM capsulized situation. Wow. (Note: a longer version of this article first appeared in today's Beverage Business Insights issue).

Longtime Molson Coors exec Pete Marino (most recently prexy of Emerging Growth) landed his next gig at Pritzker Private Capital. He "will help them deepen their expertise in the beverage world and scale their current beverage investments," Pete posted on LinkedIn. Pritzker already invested in Bardstown Bourbon. "I look forward to helping them optimize their current and future entries into the beverage world," Pete said. He concluded: "The last chapter was great. This next chapter will be even better." Best of luck, Pete.

After launch of new Beer Inst advocacy website yesterday, in part taking aim at spirits biz, DISCUS prexy/ceo Chris Swonger released stinging statement, firing back with the bravado of a category that's been winning favor with consumers for over 2 decades. "It's clear the beer industry is desperate after years of losing market share to distilled spirits," Chris kicked off. "Despite the fact the beer industry has for decades enjoyed significant distribution and tax advantages - with a tax rate that is more than two times lower than spirits - they are still losing consumers. It's unfortunate big beer companies would stoop to the level of using misleading information to attack the spirits sector and its consumers, rather than investing in beer products that consumers actually want to buy."

Out of "an abundance of caution," Constellation is "implementing a pause on shipment of all kegs," co wrote to its distrib network late Tues and BBD first reported. "This pause will allow us to conduct testing on a potential quality issue impacting select kegs," co noted, adding that "while there is not health and safety risk posed by the product in question, we strive to uphold rigorous quality standards and ensure optimal consumer experiences with our beer." Tho certainly far from ideal, kegs "comprised only ~3%" of STZ volumes, Evercore ISI wrote in follow-up report citing co's FY2023 10K.

Monster Beverage Corp is expanding further in alcohol space with new hard iced tea line, Nasty Beast at 6% ABV, ceo Rodney Sacks announced at its annual shareholders meeting yesterday. (INSIGHTS previously flagged that Monster hard tea coming a coupla times.) Brand will be avail in 4 flavors and is expected at retail by yr end. That should leverage "The Beast Unleashed's solid brand strength and should help create a billboard effect when placed next to The Beast Unleashed within shelves/coolers," wrote Goldman Sachs' Bonnie Herzog. Beast Unleashed is currently in ~40% of US stores and is expected to be nationwide by yr end.

"Current and eight recent past Chairmen of AB Wholesaler Panel" wrote joint letter to INSIGHTS, received late last night to express their "concern" over HSBC analyst Carlos Laboy's report based on "ten anonymous interviews." (See yesterday's Express for more on Carlos' report.) It "does not reflect our viewpoint or the majority of the AB wholesalers," they say. After AB's SAMCOM conference in Jan, "there was a lot of confidence in the overall commercial strategy and the current AB leadership," letter continues. "That confidence remains and we know that any improvement to the current sales challenge will come from pulling together and not dwelling on negative criticism." They conclude: "We have no doubt that by continuing to work together… we will emerge stronger than ever." This closely echoed prexy Brendan Whitworth's claim that AB would get back every case. These wholesaler panel chairmen also wrote: "In addition, the company has released new Bud Light advertising this week that we know will remind our core consumers that Bud Light is the easy to drink, easy to enjoy beer they know and love." That's "not wholesaler speak for sure," as one source quipped.