Beer Marketer's Insights
In late 2020, mega online retailer Amazon devised "more aggressive strategy" to "unlock" the alc bev mkt thru removing state licensing caps, "fully legalizing" delivery and "competing directly with package stores and wholesalers," Vice reported, citing leaked document titled "2021 Alcohol Public Policy Strategy."
Now that ABI and Molson Coors reported Q4 results, steepness of their US volume drops more visible. AB reported Q4 shipments drop of 8.6% and Molson Coors 11.2%. That means AB US shipments down 4.1% and about 3.5 mil bbls in 2022. Molson Coors US shipments down about 5%, over 2 mil bbls, INSIGHTS estimates last yr. So the 2 lost almost 6 million bbls between 'em last yr alone. It was biggest drop yet in ABI/MC era (i.e. since 2008).
Donaghy to Buy Rest of Markstein Bev; 8.5 Mil Cases Led by AB & Firestone; Now 24-Mil Cases Total
More AB distrib action, this time comin' as a ripple effect in the aftermath of Constellation (& others') forced consolidation efforts in CA. Just about 2 wks after Reyes Beer Div announced deal to acquire Constellation and Sierra Nevada brand rights from Markstein Bev of Sacramento (see Feb 21 issue), Donaghy Sales agreed to acquire remaining Markstein Bev biz. That's ~8.5 mil cases across 35 suppliers, led by AB and Firestone, and will put Donaghy at a whopping 24 mil cases annually (pending supplier approval). Surging to one of AB's largest distribs in the network. Lots of overlap across Donaghy and Markstein Bev portfolios, including top two and several new-age non-alcs like Novamex (Jarritos), Essentia, Talking Rain, Congo, and Prime, among others. Cos just announced to employees late afternoon today and deal expected to close mid Apr, INSIGHTS understands. Donaghy will take over the facility and plans to hire many of their employees.
Check Tax Laws Before Handing Out Those Freebies at Trade Shows, Anchin Consultants Caution
"Businesses must be thoughtful of their sales tax exposure when participating in trade shows and providing product samples," cautioned Anchin Accountants & Advisors in recent advisory blog. At a time trade show biz is ramping back up post-Covid, Anchin reminds would-be exhibitors that merely handing out a few samples can be enough to subject the brand to that state's sales taxes for all biz done in that state, incuding at retail. So before committingto a show, it behooves mgrs to check host state for its "specific rules, nuances and exemptions."
For months, stevia soda pioneer Zevia has been teasing a revamping of its package graphics as it moves more aggressively beyond natural channel to conventional grocers and explores a possible move into DSD. Today came the grand reveal, just ahead of LA-based co's appearance at Natural Products Expo West in Anaheim, Calif. The new look via agency Turner Duckworth offers vibrant color palette that also works to unify the sublines that have proliferated as co has moved into teas, energy drinks, mixers and other adjacencies - always in cans, another key positioning point now that plastic backlash is broadening. What co describes as "a bold, leafy new logo" is intended to flag plant-based nature of line. "We are taking Zevia beyond niche and natural to the mainstream in our distribution and now in our brand design," declared ceo Amy Taylor, former Red Bull exec who last year was elevated to top post, succeeding longtime chief Paddy Spence.
Odyssey Wellness, the Ft Lauderdale, Fla-based firm that packs uncommonly robust amount of mushrooms into its canned Odyssey Elixir energizing line, said it's completed $6.3 mil Series A capital raise. The raise, augmenting $2 mil brought in earlier, will support expansion of line across all channels. Announcement didn't identify investors, tho founder/ceo Scott Frohman said in statement that they "bring incredible expertise and will be valuable strategic partners." Brand will be exhibiting at Natural Products Expo West this week soliciting additional retail partners. Scott, recall, is successful entrepreneur from CBD space who's sought to differentiate himself in shroom space by packing his 12-oz drinks with 2,500 mg extracted from the fruiting body of cordyceps and lion's mane mushrooms, augmented by L-theanine and ginseng to yield a balanced lift.
CBD mainstay Recess is taking another diversification step into non-infused items, this time entering surging alc-alternative space with line of zero-proof Craft Mocktails in quartet of popular cocktail styles. The move builds on addition of magnesium-enhanced Recess Mood, some 65% of total biz in Jan, even as co patiently nurtures core CBD line in anticipation of further deregulatory loosening in coming year or so. They're all in synch in supporting mental well-being in various ways, founder/ceo Ben Witte noted to us late last week. The lightly sparkling Craft Mocktails are created with juices, guayusa and the adaptogens L-theanine and lemon balm, with the guayusa offering mild 10 mg of caffeine and hint of complexity to flavor profile. With agave as added sweetener, entries come in below 25 calories. Line is launching in Lime Margarita, Grapefruit Paloma, Watermelon Mojito and Ginger Lime Mule flavors, packed in 12-oz sleek cans priced at $3.49, or $13.99 per 4-pk. That's in line with Mood per-can price and below the CBD line's $3.99-4.99 per can. Both CBD and Mood are packed in conventional 12-ouncers. The entry puts Recess in arena where major bevcos like KDP (via Atypique acquisition) and Molson Coors (Moxie) also are planting flags. Among DSD partners who're picking up Craft Mocktails are prior partners Columbia in Pac NW, wine & spirits giant Breakthru in Ill, Fla, Colo and Ariz, Scout in LA and Bounty in Nashville, Ben said. New in the distrib mix is Atlanta Distributing, a Bud house that's picking up Mood and Mocktails. Ideally, he added, DSD partners opt for a 4-4-4 portfolio, 4 flavors of CBD, Mood and Craft Mocktail.
While Spiked Seltzer founder Nick Shields was working on the formula for Spiked Seltzer in 2012, he did not make his first commercial production run and sale until late 2013, an AB spokesperson informed us. A separate article INSIGHTS was referencing listed an incorrect date. ABI/Modelo/Constellation deal was approved in US before Spiked Seltzer launch. Apologies for any confusion.
Back in Nov, Burkhardt Sales & Service announced to employees that it would sell its 4.2-mil-case AB distribs in St Augustine and Gainesville, FL to Mitchell Cos of Mississippi. But turns out that AB has instead redirected that deal to 3 FL AB distribs who originally tried to buy distrib and split it up between them but got outbid by Mitchell. Those 3 distribs are Tri-Eagle Sales, Daytona Bevs and North Florida Sales and they have matched the offer. Two of them reportedly met with distribs this afternoon. Those 3 distribs will split up operation that has 2 warehouses and represents 50 suppliers. This change comes months after deal already announced. Why did it take so long?
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