Beer Marketer's Insights

Beer Marketer's Insights

This week in 1987, INSIGHTS reported that South Dakota lost its last stand when US Supreme Court ruled 7-2 that Congress could withhold highway funds from states that do not raise minimum drinking age to 21. In majority opinion, Chief Justice Renquist wrote: "Here Congress has offered relatively minor encouragement to the states to enact higher minimum drinking ages than they would otherwise choose." Majority found the law's "indirect encouragement of state action to obtain uniformity in the State's drinking age is valid use of the spending power." In dissent, Justice Sandra Day O'Connor argued that Congress withholding funds "is an attempt to regulate the sale of liquor, an attempt that lies outside Congress' power to regulate commerce because it falls within the ambit of…the 21st Amendment." O'Connor added that following gov't logic, "Congress could effectively regulate almost any area of a State's social, political, or economic life on the theory that use of the interstate highway system is somehow enhanced."

HSBC analyst Carlos Laboy surveyed 10 AB distribs of varying sizes and locations (representing 8-10% of AB non-branch volume) in-depth, facilitated by consultant Mike Mazzoni "to satisfy wholesaler confidentiality." Taken together, distrib answers are highly critical and offer a stinging rebuke to AB's current mgt/direction, even while also praising last week's financial assistance. "Broad range" of distribs "held similar views on AB's US prospects," according to Carlos. The 10 distribs "revealed operating challenges and a high level of dissatisfaction with long-term implications," wrote Carlos, including "a significant and problematic level of system disconnect" that could "reduce investment, weaken execution and slow long-term growth," he added.

Many of the elements may look familiar, but two key functions of Beer Inst's new StandWithBeer.org, launched this morn, set it apart from much of the org's prior work. The "one-stop-shop" for beer-related info is specifically designed to not just educate but also generate grassroots advocacy for beer by drinkers. And tho it starts by accentuating the positive, it also works to "hold liquor accountable," per BI release.

In the week since our lengthy coverage of the extensive discussion about crossover beverages and Pepsi's Blue Cloud Dist at state regulatory confab NCSLA, alert readers brought a handful of other considerations to our attention. First, a brief correction: atty Tuck Duncan has long represented wine & spirits distribs in Kansas, not beer distribs.

Bud Light brand may be amidst an unprecedented decline during ongoing controversy, but it's still ramping up its summer mktg activities to highest level ever (3x last summer), it sez, including several new "iterations" of its "Easy to Drink, Easy to Enjoy" campaign that debuted at Super Bowl this yr. First, there's a new 60-second ad debuting tomorrow called "Easy to Summer" that returns to lighthearted humor, more like Bud Light long ago, to the unstoppable soundtrack of "Good Times" by Chic. Expect to see this ad often.

Dutch Bros last week brought in seasoned fast-food exec Tana Davila to serve as cmo, Oregon-based coffee chain announced this week. Davila had previously served for a year as cmo at CKE Restaurant Holdings, which operates banners like Carl's Jr and Hardee's. Prior to that, she spent 8 years at PF Chang's, capped by cmo role. She's overseeing brand and product marketing, creative and rewards program, reporting to Christine Barone, ex-Starbucks exec who took prexy role last fall as ceo Joth Ricci focused more on expansion and strategy (BBI, Nov 29).

For past 3-4 years, Natl Beer Wholesalers' Assn has pushed hard to have its members take broader view of their portfolios, emphasizing beyond-beer and NA entries as crucial parts of their portfolio and needed diversification from beer. But with Bud Light controversy having sparked upsurge in media beer coverage, now it's telling members to put "Beer First" via use of its proprietary category-wide sales assets. "Considering the recent unprecedented media coverage of the beer industry, it has never been more important to invest in promoting the beer category and its strength in the market," leads off note from prexy/ceo Craig Purser highlighting org's Beer First Initiative. "2023 year-to-date April industry supply trends are the worst they have been in recent history," note continues. Tho brands are left unnamed, it references "significant challenges" for some that are "creating opportunities for others." But this may be inflection point for brand beer, too. "The entire beer category is at risk as consumers make different choices," org highlights in bold.

After prolonged tease that would have done Chippendales proud, Liquid IV has pulled back curtain on its zero-sugar extension, saying its Hydration Multiplier Sugar-Free is first allulose-based hydrator to hit market at scale. Capping 2 years of development at Unilever-owned brand, Sugar-Free offers Osmolabs-certified blend of allulose and amino acids L-glutamine and L-alanine, along with vitamins B3, B5, B6, B12 and Vitamin C, and 3X electrolytes of conventional sports drinks. It's launching in popular Lemon Lime flavor and another pair exclusive to subline, Green Grape and White Peach, as previously reported (BBI, Jun 8 and 16). It will get heavy support as 2d leg of summer campaign dubbed "Real Hydrating," activations at fests like Rolling Loud in Miami and Outside Lands in SF and partnership with Barry's Bootcamp. As co reminded, allulose is naturally occurring sweetener found jackfruit, figs, raisins and other fruits that can serve as an alternative to artificial sweeteners like aspartame and sucralose that make their way into other zero-sugar hydration brands. Hence, "Sugar-Free catapults Liquid IV into a new category of hydration solutions," as ceo Mike Keech enthused. After going out to online members first, brand became generally available on DTC site today and will hit Amazon later this month and Costco in Jul.

Tho Sprouts Farmers Market chain has been on expansion spree, its mgmt team has been working hard not to lose its yen for innovation in the shuffle. At last week's BevNet Live conference in NY, team led by svp/chief forager Kim Coffin described the mechanisms they're employing to give groundbreaking new items a fair shot at success, most notably by rotating New for You innovation set in every store. Unlike some other retailers, one area they're not ready to go is investing directly in promising new brands. "We're still understanding what that looks like at Sprouts," Kim said. "That just adds another piece of complexity."

Pisa's Electrolit hydration brand takes broadly aspirational tack in this summer's campaign as Mexican brand continues aggressive crossover into general market in US. "I am a body moving . . . dancing . . . and breathing . . . reaching my limit, and pushing it," as woman's voiceover declares against footage of athletic men and women working up a thirst, interspersed with coupla glam shots of what the evening may bring. Co offered sparse details of effort, saying it's budgeted at multi-millions and will run via TV, billboards, transit ads, social media and geomobile displays thru Aug 30 in markets where brand "is most available" and to support key retailers like 7-Eleven, Walmart, Kroger and Publix. "Whether rehydrating after a workout in the warmer weather or replenishing electrolytes post-party, our summer campaign captures the versatility of Electrolit and viewability will be front and center where it matters most across the country," per Jake Sloan, sr marketing dir of Electrolit USA, based in Cerritos, Calif. General-market ambitions have also been flagged by activations at such marquee events this spring as Coachella and Governors Ball Music Fest.