Beer Marketer's Insights

Beer Marketer's Insights

Beer $$ sales did better in latest week, up 3.3%, lifting 4-week trend to 2% growth thru Feb 26 in IRI multi-outlet + convenience. Top 5 fastest gainers among suppliers (in week thru Feb 26) showcase changing "beer" biz: Sazerac up 99%, New Belgium up 15%, Geloso up 14%, Constellation up 11.5%, Mike's up 6.6%. Top 5 brand family trends also interesting. Twisted Tea up 35%, New Belgium up 21.1%, Modelo up 14.5%, Michelob family up 10.7% and Mike's Hard Lemonade +9.3%.

World's 3rd-largest brewer will soon have a new chief exec. Carlsberg ceo Cees 't Hart will retire by end of Sep after seeing thru sale of co's Russian biz, co announced today. Hart was hired in 2015, the "main architect behind Carlsberg's strategic shift from Russia towards China" as well as co's premiumization, Reuters wrote. Analysts praised his turnaround of biz during 8 yrs in charge, with shares up more than 60% during Hart's tenure compared to Heineken (+45%) and ABI (-47%). Carlsberg said its search for a successor is "ongoing."

New ad campaign for sharply declining Bud Light Seltzer brand works to correct misconception that the brand contains beer, apparently believed by 54% of consumers AB surveyed last yr. So front and center in new series of spots is assertion that the brand is "100% Hard Seltzer, 0% Beer." First spot shows a bright blue branded truck ride down a rural highway and burst open, emptying flood of colorful bubbles into "a desert of brown-ish," as release describes. Use of bright colors associated with hard seltzer clearly contrasts to the more muted tones of beer.

On day 3 of ABI Modelo vs Constellation trial in lower Manhattan, ABI put chief legal officer John Blood and global intellectual property director Frederico Bueno on stand to attest to same theme, that contract with STZ was for beer only, yet co went forward with Corona Hard Seltzer without its permission. Blood explained he was heavily involved with deal to purchase Modelo and that ABI took a "Fix it First" approach to satisfy DOJ antitrust concerns. Besides selling STZ the Piedra Negras brewery in Mexico, ABI pushed deal from 10 yr rights to Modelo brands to a perpetual deal to satisfy DOJ and assure agency that Constellation "is able to compete in the beer market in the US," independent of relationship with ABI Modelo. But Blood stressed as agreement definitions point out over and over, that was strictly on beer brands: "The relevant market was beer," he told jury. He repeatedly referred to agreement noting definition of beer was as ABI stated leading up to trial only for "beer, ale, porter, stout, malt beverages, and any other version of any of the foregoing." "This isn't a make a whatever you want" situation, he added. He shared that ABI reached out to Constellation: "we said you can't do that," but "ultimately we couldn't work it out" and "they stepped over the line," so ABI sued.

In Constellation's first live beer distrib meeting held since Mar 2020, just before the US shutdown amid Covid, chief customer officer Bill Renspie reflected on "many unique challenges" faced and the "transformative experience" for the biz. Constellation and "all your teams back home…emerged much stronger," including STZ posting industry-leading growth in 2022, Bill showcased (up more than 33 mil cases, he showed using INSIGHTS shipments estimate of +9.5%). Distribs across all regions posted remarkable growth, including top performers up big double-digits, several in the 20%-plus range, and all well ahead of plan. Constellation remains "the best growth story" not just in the high end, but in "the whole industry," and possibly even "across all CPG," he thought. "What our portfolio did" during the pandemic and beyond "bodes well for all our collective futures," said Bill. More details after the meeting.

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Lewis Bear, longtime ceo and president of the 5th generation AB distributor called the Lewis Bear Company in Pensacola, Florida, passed away at 82 on Friday. The Lewis Bear Company "is the oldest privately held corporation in Florida," according to a family obituary. And also the "oldest continuously-owned Anheuser Busch wholesale distributor in the world," since 1891. It employs over 200 people.

Leaders of Beer Inst continue steady drum beat urging for repeal of Section 232 tariffs of aluminum that org has repeatedly said burden both US brewers/importers and beer drinkers. New BI prexy/ceo Brian Crawford stepped up to plate this wk with op-ed in Bloomberg Tax, reminding readers of org's key points. They include scale of canned pkgs (near 3/4 of US beer volume), small sliver of $1.7 bil paid in tariffs that's gone to US Treasury (just 7%) and perceived problems with "obscure pricing system" (the Midwest Premium). In this iteration, Brian highlighted views that "rolling back tariffs would reduce inflation" and that they're "easily the most regressive of US taxes," per Progressive Policy Institute. Aluminum tariffs provided smelters a "windfall" that still "failed to jumpstart" their bizzes, while promised job gains have not materialized, per Brian's letter.

Despite years of threats from opposite side of aisle to dismantle state control of wine & liquor retail sales, a handful of Democratic Pennsylvania legislators are looking to further protect those stores (and the union jobs they provide) by adding legal cannabis to the mix. Two of 3 proposals circulating among legislators would not only legalize adult use cannabis in the state, but would make existing alc bev stores the primary outlets in the state, the Tribune-Democrat wrote. That would represent 2 big firsts: 1st time a state would establish a control system for cannabis and 1st time cannabis would be sold alongside alc bevs in US. So far, states have all opted for license systems that strictly separate cannabis from alcohol.

While volume remains soft and on-premise is recovering at a slower rate, St Patrick's Day could provide a sizable lift this year, Numerator market research report suggests. Around 44% of nearly 1,600 consumers surveyed expect to "celebrate the holiday this year," up from 30% of those surveyed in 2022. Beer category stands to benefit most, and not just Guinness, report noted. Tho of the 44% planning to celebrate, 28% plan to gather with family/friends and 27% plan to go out for food or drinks. So unclear at this stage how much of a lift St Paddy's celebrations will provide to on-premise.