Vol 6, No 1   Jan 6, 2025

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Southern Glazer’s Closed on Horizon Bev Group Deal in MA and RI; 46 States and DC; Bigger in Beer EXPRESS – Dec 30 Just before yr-end, Southern Glazer’s Wine and Spirits said it closed on its big deal to buy Horizon in MA and RI. Deal first announced in late July. SGWS said it acquired “substantially all of the assets of Horizon Beverage Group.” Henceforth, Horizon will “operate under the name Southern Glazer’s Beverage Company.”  SGWS kept all major beer brands too, including over 1 mil cases of Heineken in metro Boston. Heineken sells a little more than 2 mil cases in all in MA. After SGWS deal for Horizon, Burke Dist reportedly tried to get HUSA brands (recall Burke is half-owned by HOBO: Honickman, Bergson, Origlio). But SGWS prevailed. Beer was just a small fraction of Horizon’s total biz, which IMPACT estimated at $850 mil in revs. In all, SGWS is over $25 bil in revs, accounts for 1/3 of all wine and spirits sold in US and operates in 46 states + DC. And it’s the 10th largest private co. But in an intriguing new development, SGWS clearly has become more interested in acquiring beer assets.

STRATEGY: Some Key Tweaks Under Its Belt, Ardor Energy Heads into Albertsons, Seeks $4M Seed Support BEV INSIGHTS – Dec 30 Ardor Energy, the organic focus-oriented line created by Hiball founder Todd Berardi, continues its steady developing, making key tweaks to proposition while preparing to onboard Albertsons as national partner. It’s also poised to add a more robustly flavored flanker line targeting broader channels like c-stores should the right launch partner materialize. SF-based co also is raising seed round of about $4 mil from angels and family offices while having his first conversations with VCs. Those were among the highlights outlined to us by Todd and his recently recruited ops vp Allison Soby in Marina del Rey during the recent BevNet Live conference.

Key Craft Developments in 2024: Craft Beer Volume Declined Again, 4 Outta Last 5 Yrs, We Estimate CRAFT – Dec 30 Craft beer remained soft in 2024. Volume declined for the 3d year in a row and 4th year outta 5, CBN estimates, on track to finish ~4 mil bbls below its peak in 2019. This also marks the 6th straight year of share loss in off-premise scans. Craft beer held nearly 12 share of $$ in 2018 Circana multi-outlet + convenience channels. This year it’s down to just 10 share of $$ YTD thru Dec 1. The category’s taking hits from every angle. Distribs continue to shift attention toward other categories. Craft bottle sales remain one of the biggest drags on segment sales, down double digits again in 2024. Craft can growth slowed tho continues to gobble up share. Keg volume is declining again this year, disproportionately impacting craft. Taproom volume is on track to decline for the 2d year in a row, TTB data suggests. More breweries closed than opened this yr, Brewers Assn estimates. It all adds up to challenging times collectively for the category. Tho there are plenty of ups and downs in the mix.

NASEM Report Walks Careful Line, Confirms Moderate Drinking Can Lower Risks for CVD, Death; Waiting on ICCPUD ALCOHOL ISSUES – Dec 31 As 2024 ends, the US government has only published one out of two expected scientific reports investigating alcohol’s impact on health and designed to inform federal drinking guidance. In mid-December, the National Academies of Sciences, Engineering and Medicine (NASEM) confirmed decades of research on the topic in a consensus report summarizing a year of work by a committee of 14 scientists. Moderate drinkers generally show a lower risk of death from any cause and from cardiovascular disease, but a higher risk of breast cancer when compared to people who have never drank, the extensive review of studies published in the last 5-15 years determined. A second expected report, from the Interagency Coordinating Committee on the Prevention of Underage Drinking (ICCPUD), which many suspect will take a harsher view of alcohol, has not yet been published.

2024 A Year to Forget for Beer Stocks As Each Major Brewer Lost Value EXPRESS – Jan 2 Ugh. What a lousy year for beer stocks on Wall Street! While major stock indexes all up strong, major beer co stocks all down. Dow (+13%), S&P 500 (+23%) and Nasdaq (+28.6%) each grew double-digits for the second year in a row. But with category softness, growing anti-alcohol sentiment and other headwinds, beer stocks under lotsa pressure last yr. Interestingly, Molson Coors (TAP) stock performed best among top brewers for 3d straight year, tho it too was down. TAP shares down 6.4% in 2024, following double-digit gains the previous 2 yrs. But ABI (BUD) stock price fell 21.6% in 2024 after growing 7.6% in 2023. (On Brussels exchange, ABI stock price down somewhat less, -17.4%, after a modest 1% gain in 2023). Heineken stock price down 24.6% in 2024 after gaining 3.8% in 2023.

People Want More Protein? Plant Players Koia, Daily Harvest Ready to Give It to ’Em BEV INSIGHTS – Jan 2 If there’s an arms race going on in protein segment, count plant-based players Koia and Daily Harvest among the ones that are girding for battle. Koia, which has been a hive of innovation over past coupla years, has inaugurated a 32 g Elite extension that’s breaking nationally in Whole Foods. The new entries contain 6 g of fiber but only 4 g of sugar and maintain brand promise of eschewing seed oils, using avocado oil for purpose. “It's designed to support optimal muscle recovery, enhance nutrient absorption and provide athletes and fitness enthusiasts with the fuel they need to perform at their best,” per messaging the brand has sent out to its fans.

Mass Bay & Finestkind Merged to Form Northeast Conglomerate, Barrel One Collective; Seeking More  CRAFT – Jan 2 Tilray ain’t the only co building a portfolio of sizable craft brewers struggling to grow on their own, as the MA/New England brewing scene keeps consolidating. Mass Bay Brewing and Finestkind Brewing Company merged to form Barrel One Collective, cos announced on New Year’s Eve. That brings Harpoon, Dunkin’ Spiked, Long Trail, Otter Creek, Shed, Catamount, Clown Shoes, Right Coast, Smuttynose, Five Boroughs, Wachusett, Island District RTD cocktails and more all under one roof. AB, Tilray and Barrel One are the only three cos in the country with a double-digit number of brand families in their respective craft portfolios. Tho AB’s been moving in the opposite direction while the others are building. And like Tilray, Barrel One is seeking more deals from “other like-minded brands eager to join the collaborative, value-added platform for beverage fans across the region,” stated Finestkind CEO Steve Kierstead.

Pabst to Contract Brew “Certain Products” at AB Facilities in 2025 EXPRESS – Jan 3 Is this short-term marriage of convenience or beginning of a beautiful relationship? Pabst will contract brew at AB, Pabst announced Jan 2, “providing Pabst with greater supply chain flexibility and improved efficiencies.” This intriguing development would have once been unimaginable, tho its ultimate significance unclear with scant info currently available. Pabst ended its contract brewing arrangement with Molson Coors last year as it planned to brew everything at City Brewing, nation’s largest contract producer. Both Pabst and City are overseen by Eugene Kashper, and some ownership is shared. Still, it was not a smooth transition. Early in 2024, Molson Coors dealt with a strike at Fort Worth, severely disrupting production of certain Pabst brands, notably Lone Star and also Rainier draft. And later in the year, City Brewing ran into financial difficulties, including possible bankruptcy and had logistical challenges making all of Pabst’s products.

Add Cancer Warning to Alcohol Labels, Surgeon General Sez; Few Cases Tied to Moderate Drinking EXPRESS – Jan 3 Bombshell recommendation by the US Surgeon General Vivek Murthy released Fri morning urges Congress to amend the current mandatory warning on alc bev packages to acknowledge alcohol’s link to cancer. “Alcohol consumption is the third leading preventable cause of cancer in the United States, after tobacco and obesity, increasing risk for at least seven types of cancer,” a release from the SG this morning states. And tho the link has been known for about 4 decades, “less than half of Americans recognize it.” Around 100K cancer cases and 20K cancer deaths per year are attributable to alcohol consumption, the SG continues, pointing out that it’s more than the 13,500 alcohol-linked crash deaths per year. “Cancer risk increases as alcohol consumption increases,” the release notes.

Sign Up for the 2024 Year in Beer Webinar, Coming Feb 5 Save the date and reserve your spot! We’ll host our annual year-in-review webinar on Wed, Feb 5 from 1-2:30PM EST. BMI editorial staff will cover key stats and stories that defined 2024 during this 60-minute webinar + Q&A, featuring analysis of top trends, suppliers, brands, M&A and much more. Don’t miss this wide-ranging and rapid-fire review. Register now for just $260. Can’t make the scheduled time? No worries: a webinar recording and downloadable deck will be available to all registrants. Group discounts are also available (5 for $975; 10 for $1,300) or save with our webinar bundle! It packages both the Year in Beer plus our Craft Update Webinar & Report (Wed, Mar 19) for just $440 total.

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