Beer Marketer's Insights

Beer Marketer's Insights

After plenty back and forth and some contentious convos between tiers, AB is gonna give additional financial support to its wholesaler network, as well as its own frontline workers, co announced to distribs and employees this afternoon. That includes additional sales incentive payment plan for wholesalers based on “beer sold through the end of 2023,” extending “additional credit” and reimbursing wholesalers for “freight/fuel surcharge” thru end of 2023, and more “increased investments” in local mkts.

“We recognize that over the last two months, the discussion surrounding our company and Bud Light has moved away from beer, and this has impacted our consumers, our business partners, and our employees,” AB ceo Brendan Whitworth stated in letter to “frontline employees and wholesaler partners.” Co is taking action by 1) “investing to protect the jobs of our frontline employees”; 2) “providing financial assistance to our independent wholesalers to help them support their employees”; and 3) “reinforcing” Bud Light “Easy to Drink, Easy to Enjoy” messaging thruout summer with new ads starting next week. “As we move forward, we will focus on what we do best – brewing great beer and earning our place in moments that matter to you,” Brendan concluded.

Extent of these incentive programs, reimbursements and additional credits remain unclear at presstime. But AB distrib network “greatly appreciates the support that was announced today that will help us protect our frontline employees in the months ahead,” distrib panel wrote and signed off on in official notice to AB. “Anheuser-Busch listened to us and has responded. That’s leadership and partnership in challenging times,” letter continued.

Recent years' wave of soft drink brands offering alc extensions has blurred all kinds of lines on regulatory side, none more so than crop from PepsiCo, which has uniquely elected to get them to retail via its own distribution arm dubbed Blue Cloud rather than via existing beer or wine & spirits houses, as all other such extensions do. So it was no surprise that on day 2 of Natl Conference of State Liquor Administrators pow-wow in Oklahoma City yesterday, discussion of crossover or co-branded bevs and PepsiCo's Blue Cloud alc distribution arm dominated program among the state regulators. Two separate dedicated panels dug deep into tied house and slotting fee questions as well as concerns about merchandising and consumer confusion. (Slotting fees are prohibited in alc, and incumbent alc interests from the start have expressed suspicion that NA bevcos are deriving undue benefit for their alc brands thanks to those.) Wide-ranging panel on "modernization" touched on issue, too. And conference also served as 1st public forum for live comments from Blue Cloud chief legal officer Randy Liebowitz, making co's case. This was all wrapped up in comprehensive report from Chris Shepard in our sibling letter Insights Express that we're picking up here.

Launched in Hood River, Ore, Wilderton Botanical Spirits alc-alternative brand has taken deliberate approach to expansion, focusing initially on Ore and Wash while making sure its concept proved out, then edging into Calif and lately Texas while judiciously picking its bricks & mortar spots elsewhere. (In NY, for instance, brand numbers Boisson chain among its retail partners.) It launched with Lustre (orange, tarragon and spice) and Earthen (white peppercorn, pine-smoked tea and cardamom) expressions but, as master distiller Seth O'Malley readily acknowledged, those lean toward arcane side. Wilderton's biz really ignited with Bittersweet Aperitivo, launched last Aug to offer combo of grapefruit, orange blossom and aromatic herbs. So Wilderton is runnin' with it as focus of sampling event at Bar Convent Brooklyn, marquis mixologist event held this year at Industry City makers complex in south part of boro. Just a splash of sparkling water and a lemon twist is all you need, as packaging urges. (At Bar Convent, they dispensed even with the lemon in our samples, at no sacrifice to the experience that we could detect.)

Average price increases were still up double-digits in a majority of bev segments for 4 wks thru Jun 3 in NielsenIQ data reported by Goldman Sachs. Energy drinks and RTD coffees remained only segments managing to grow volume along with taking pricing.

06/14/2023

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One year after a portion of its brewery building collapsed into the Columbia River, OR's Buoy Beer managed to "stay afloat" and "persevered," WA Beer Blog highlighted in latest profile. Thankfully no one was hurt and while lots of beer and equipment was lost, Buoy quickly worked together to get back up and running with what it could in "less than one week - in half the space with half the equipment." Ninkasi's sizable contract brewing program was able to take on additional Buoy volume. Co found a temporary home at Astoria Food Hub just a few blocks away, turned its Portland, OR tasting room into a "full-service bar" and "secured presence" at Portland Airport by 2025. And co plans to expand brewing operations into a separate building shared by Buoy's "sister company, Pilot House Distilling." Gradually, Buoy's been able to reintroduce certain brands back into the brewing lineup and will host its second annual Oktoberfest this Sep and annual Lager Fest in Spring 2024, as co celebrates its 10th anniversary.

Tuff look back at how Platform Beer Co went from a fast-growin' local darling to being bought by AB and ultimately shuttered earlier this yr was chronicled in lengthy Cleveland Scene article. "The version of the brewery that existed at the end bore some but little resemblance to the one that existed in the beginning at the little taproom on Lorain," wrote paper after talking to "two dozen former employees and industry experts about Platform's history." From over-expansion and debt piling up, to getting bought by AB and buried in the totem pole of priorities, perceived over-experimentation and consumer "fatigue," pandemic challenges, cross-production moves and more, folks talked about their views of Platform's struggles. In-state volume dropped from 28K bbls in 2018 to 22,500 bbls in 2021 and by end of 2022, 75-90% of Platform was being brewed in NH with projections for local production in 2023 at just 4K bbls. "Writing was on the wall," but brewery shutdowns still hit the local employees hard, article noted.

A couple of cities experienced a recent uptick in brewery closings. In Atlanta, Second Self Beer Co will close at the end of this wk, as sales never climbed back to pre-Covid levels and contract customers closed or stopped doing biz with the brewery. A bit north of the city, Anderby Brewing & Distilling will shut down on July 3 after revenues failed to reach a sustainable level. Atlanta's Burnt Hickory also shuttered in May while Orpheus Brewing closed in Apr. Tho big names like Scofflaw and SweetWater recently announced new Atlanta outposts.

Sierra is bringing back 4 of its most beloved beers as part of a "Fan Favorites" limited-edition variety pk. It'll feature co's Hop Hunter IPA (6.2% ABV), Ruthless Rye IPA (6.6% ABV), Nooner Pilsner (5.2% ABV) and Flipside Red IPA (6.2% ABV), each among Sierra's most frequently requested retired products, Inside Hook reports via interview with founder Ken Grossman. It marks 1st time the brewer's brought beers out of retirement for an offering like this. But it likely won't be the last, Ken hinted.

Tilray is no longer just buyin' beer/alc bev brands, it's now creating 'em. Co launched Good Supply Beer, "a new light beer brand and premium lager brewed for easy-drinking at a refreshing price," it announced today. Website depicts Good Supply "Easy Lager" brand with tagline "Good Beer, Good Times, Good Supply" on packaging, referring to itself as a "high-grade light lager" at 4.2% ABV and available in 16oz cans yr-round. It'll be distributed thruout GA, CT and NY for starters with more mkts coming this summer. Indeed, Tilray certainly has the capacity on hand to innovate however it chooses thru its large SweetWater facility in GA, plus its Fort Collins facility and ownership of Breckenridge Distillery. Good Supply is tapping into "the wealth of brewing expertise that lives within Tilray's beer division," and "uniquely positioned to offer a competitively priced and delicious light beer crafted with premium ingredients and brewing techniques," stated Tilray beer prexy Ty Gilmore.