Beer Marketer's Insights

Beer Marketer's Insights

For 4th time in 6 yrs, Constellation named #1 growth co not just in alc bevs, but among all CPG cos tracked by IRI, ceo Bill Newlands said at Gold Network Summit. Constellation beat out cos like Mars (#5), Coca-Cola (#8) and Monster (#10). Constellation in top 10 for each of last yrs. And it will be "increasing investment again this year," added Bill.

Sierra Nevada is takin' a crack at the red hot non-alc energy bev sector with minority investment in RIOT Energy, "a fast-growing, non-alcohol, organic ['100% plant-powered'] energy drink brand from Venice, CA," cos announced. Deal is viewed as a way for RIOT to "accelerate" growth thru Sierra Nevada's initial investment and "eventually" production at Sierra's new 85K sq-ft CanDo Innovation Center, which is expected to "begin operations this summer." RIOT launched in 2016 and "has seen explosive growth, nearly doubling its footprint in 2022 alone," after rebranding from Tea Riot to RIOT Energy in 2021 (see sibling pub Beverage Business INSIGHTS). In early 2023, co expanded distribution nationwide with Kroger, Walmart and Costco, release detailed. Currently available in over 7K stores across the country and online. Sierra is "uniquely situated to provide a springboard of growth for RIOT Energy to be more competitive in the space," Sierra ceo Jeff White stated.

It's an auspicious start for Monster's big new bet, tho still very early days. In 6 states with tracked IRI sales amid initial rollout of The Beast Unleashed (AZ, CA, CO, FL, IA and OH) brand got 5.8 share of FMBs across those mkts for wk ended Feb 26, noted Brett Cooper of Consumer Edge Research. Just its 5th wk of tracked sales in scans, with sequential gains since rollout at end of Jan.

The judge presiding over the Modelo vs Constellation case is used to controversy and has presided over many high-profile cases in his nearly 30 yrs on the bench. President Clinton appointed him to Southern District of NY in 1994. He's presently 78 yrs old and seemingly unwilling to put up with much that he deems non-essential or not allowed. In this trial, he frequently interjects pointed comments, most often directed at Constellation's counsel. Some other trials he's currently presiding over include that of former crypto-currency king Sam Bankman Fried, as well as former President Trump (the defamation suit alleging rape by Jean Carroll). He also was the judge on recently-settled case between Prince Andrew and Virginia Giuffre.

Continued testimony of Constellation chief legal officer Jim Bourdeau dominated the 5th day of federal ct trial between ABI subsidiary Modelo and Constellation over sugar-based Corona and Modelo hard seltzers. Thru the morning and a good chunk of the afternoon, Bourdeau took questions from STZ's atty, more pointed ones from ABI's and most pointed of all from Judge Lewis Kaplan. But questions that bounced around between multiple agreements and their associated negotiations created some confusion among attys on both sides and the judge about what was already said and whether or not testimony had been stricken, for instance. Frequent objections further complicated the record, timeline and narrative. Meanwhile, Judge Kaplan's responses, inquiries, interjections and admonishments continue to provide the highest drama in this court battle.

After better-than-anticipated shipments performance in Dec 2022, imports came in extra soft in Jan 2023. Down 7% vs Jan 2022, Beer Inst reported citing US Dept of Commerce data. Suggests total beer shipments slipped nearly 5% in Jan, including domestic taxpaids down an estimated 4.4% (see Mar 3 issue).

Some additional details regarding AB Brewers Collective/High End personnel changes following layoffs surfaced in memo recently shared with CBN. Devils Backbone GM/chief operating officer Hayes Humphreys is now workin' triple duty, overseeing Blue Point and Cisco in addition to his current role with DBB, memo details. So Blue Point GM Jack Kilgallen will report to Hayes, and former Cisco GM Matt O'Neill moves to "newly created role" as sales director for northeast craft, supporting Blue Point, Cisco and DBB, also reporting up to Hayes.

Third annual direct-to-consumer beer shipping report from Sovos ShipCompliant & the BA once again shows broad consumer support for direct shipments of craft beer. "Desire for craft beer shipping" increased from 54% in 2022 to 61% this yr, about on par with other everyday use items, according to latest survey of 756 regular craft beer drinkers conducted in Jan. "State laws aren't keeping up with consumer demand," report posits, noting that 88% of regular craft beer drinkers believe there should be greater access to direct-to-consumer shipments. Tho DTC beer is currently available in just 11 states & DC, 79% of regular craft beer drinkers said they'd purchase more craft beer if they could ship it directly to their home (up from 75% in 2022). Plus 85% said they'd be more likely to try beer from out-of-state breweries (up from 77% in 2022), while 81% said they tried a beer while traveling that they "wish they could purchase" at home.

Following a tough stretch of volume declines, 21st Amendment Brewery is getting deeper into the co-packing game. 21A touts its "reimagined" 120K sq-ft facility in San Leandro, CA as "the premiere canned beverage co-packing facility on the west coast" in announcement of strategic shift. It has capacity for 300K bbls of annual production with "a wide range of fermenting and blending tanks from 100- to 500-barrel batch sizes to accommodate customers at all stages of growth." Facility can make all types of products, from malt/sugar base to RTD spirits and NA bevs such as energy drinks, sodas & juices. And it features high-speed canning line running 12, 16 and 19.2oz cans, capable of pkging more than 6 mil cases annually in various multi-pk formats.

While Constellation continues to innovate and explore new arenas within the high-end, co's remaining acquired craft brewers, Funky Buddha and Four Corners, went unmentioned and unseen at Constellation's distrib meeting in Vegas. (Two Lane brand did get its own space in the brand room but wasn't mentioned during the meeting either). Ironically, Constellation was still a top-50 craft vendor in 2022 IRI multi-outlet + convenience data. But sales slipped 21% to $10.6 mil. And that doesn't include steeper double-digit drops on Funky Buddha hard seltzer. In any case, Constellation has way bigger fish to fry these days. The company grew 79 mil cases in 3 yrs thru 2022, including Modelo Especial up 50 mil cases for period, approaching 180 mil cases on its own. Lots more detail on Constellation's distrib meeting in sibling pub INSIGHTS Express.