Beer Marketer's Insights
Just One Craft $$ Gain Across 15 US Mkts in 2022: Segment Up 0.1% in FL, Down 9-10% in PacNW
In many large and developed craft markets, the segment declined at even steeper rates in off-premise scan data than it did nationally in 2022. Recall, craft $$ dipped 4.7% in IRI multi-outlet + convenience data in 2022. A closer look at 15 cities and states show the segment down even more sharply in 11 of them. Craft off-premise volume down double digits in these 11 mkts and down mid-to-high singles in the 4 others.
Another Tuff Yr for Craft in 2023? $$ Down 4%, Vol -8.6% in IRI MULC YTD; Challenges Persisting
Craft beer segment could be in for another tuff year in 2023, multiple sources have suggested to CBN. There are consistently more negative sentiments toward the segment's near-term prospects, particularly in the wholesaler tier these days. Some standouts still exist, and segment still more stable than smaller beyond beer categories facing steep declines. But challenges are glaringly apparent across all tiers.
After an analyst highlighted new language used in Molson Coors' latest 10-K report that acknowledges possibility of "shareholder activism or unsolicited offers from a third-party" as a risk factor, TAP stock suddenly spiked 4% earlier today, Seeking Alpha reported. Yet the analyst who wrote the report, Gordon Haskett's Don Bilson, separately told Yahoo Finance "there is nothing worth relaying here." So "the note was misinterpreted," wrote Yahoo, headlining that this "looks like misplaced takeover chatter." Indeed, "we routinely review our risk factors for updating in our SEC filings," Molson Coors chief comms and corporate affairs officer Adam Collins shared in released statement.
Boston Beer cfo Frank Smalla informed co he will be "stepping down" to pursue new role as chief financial and operating officer with "a KKR-backed private equity company," Boston shared in an 8-K filing late yesterday. This is "not related to any disagreement with the company or any matter relating to its operations, policies, or practices," co maintained. Frank joined Boston as cfo in 2016 and he'll remain with Boston 'til mid-Apr 2023 while co begins "formal search process" for his "permanent replacement." Board of directors approved the appointment of current chief accounting officer, Matthew D. Murphy, who's held that position since 2015 and worked for Boston since 2006, to serve as interim treasurer and cfo thruout the search.
More MC Mktg Personnel Shakeups: Above Premium Split into Beer & Flavor, New Economy Sr Dir
Following last wk's announcement of newly created "Americas Commercial" org and "One Americas" strategy (see Feb 28 issue), Molson Coors has more moves in store for its marketing team. Co's mktg structure will see 2 main changes: its above premium portfolio will be split into two groups, Above Premium Beer and Above Premium Flavor. Plus it's creating new sr director of economy role, reporting into newly-appointed cmo Sofia Colucci, per note to MC partners.
Has the time finally come? Altria could soon look to sell its ~$11 bil stake in ABI, with renewed speculation after Altria "crystalized for tax purposes" its massive loss in e-cig producer Juul, Barrons reported yesterday. Last wk Altria swapped its minority interest in Juul valued at $250 mil, down from initial valuation of $12.8 bil. And that capital loss "can only be offset by capital gains, not ordinary income from Altria's cigarette and other businesses," NY tax expert Robert Willens explained. "One obvious source of capital-gain income" would be Altria's nearly 10% stake in BUD, in which Altria has "a negligible tax basis." So "this might be the time for Altria to finally monetize its ABI stake which, in light of the large capital loss it now has at its disposal, can be done on what amounts to a tax-free basis."
ABI wrapped up its case, finishing with testimony from former ceo Carlos Brito, who described to jury how and why deal came to be with Constellation in first place. But Brito shared that he wasn't "personally involved" in drafting the agreement that has led to this legal battle.
Constellation's Multibrand Growth, Innovations, Ambitions Featured at GNS; Especial Aims for #1
Constellation grew its depletions 79 mil cases in 3 yrs, showed chief customer officer Bill Renspie at Gold Network Summit. The Modelo Especial brand alone grew 50 mil cases over same 3 yrs and approached 180 mil cases. Modelo family now around 200 mil cases (Constellation shipped around 390 mil cases last yr). Modelo Especial is already #2 brand by $$ in the industry, as multiple execs reminded. But beer division prexy Jim Sabia made co's Modelo ambition crystal clear: to become the "Number One beer in the US. That's our goal. This is real. This is attainable. This is going to happen," he said.
PEOPLE: Saputo Elevates Canadian Prexy Guido to Oversee US Dairy Biz; Reed's CFO Spisak Departs
Montreal-based dairy giant Saputo has switched things up in executive suite again. It's elevated Frank Guido to prexy/coo of US Dairy Div, filling role abruptly vacated by Lyne Castonguay last Jun and held in interim by Carl Colizza, prexy/coo for all of North America. Guido vacates roles as prexy/coo of Canadian Dairy Div, succeeded there by Haig Poutchigian. Move are effective Apr 1. A vet of Canada Bread and Maple Leaf Foods, Guido joined Saputo in 2015, taking reins in Canada in Apr 2019. Poutchigian joined Saputo in 2016 as svp finance at Canadian Dairy Div.
If you round up avg price increase in energy segment, then prices are up double-digits in each of the major non-alc beverage segments, per NielsenIQ scanner trends for 4 wks thru Feb 25, reported by Goldman Sachs. Energy segments managed to score volume gain once more but bottled waters and sports drinks suffered modest volume declines.