Beer Marketer's Insights

Beer Marketer's Insights

"New era dawned in NASCAR," LA Biz Jnl heralded, as new title sponsor Monster scrambled in short timeframe to activate massive property. Recall Monster Bev nailed deal in Dec as NASCAR worked to fill Cup-sponsorship hole left by departed Sprint, leaving just two and a half months to prep for inaugural event, Daytona 500, held this past Sun. But MNST got thru it, with win by sponsored driver Kurt Busch becoming icing on the cake. "There was a lot of talk about not seeing as many signs in the parking lots and banners, but that's not the way we do things," sports marketing vp Mitch Covington told Motorsport.com. "I know there was an expectation there, that it would be painted green. There were a lot of expectations, to be honest. But we were extremely happy with it. Our guests had a great time." Surprise celeb guest proved to be NFLer Rob Gronkowski - not entirely a surprise, since athlete is featured on a Monster can - and chmn/ceo Rodney Sacks and cmo Mark Hall flew in at last minute to witness race.

As LA Biz Jnl detailed from advance discussion with Covington, co on Sun felt ready to erect 200-by-200-foot display featuring models, music and product sampling, and to host 200 corporate guests and VIPs. But Mitch didn't deny how daunting program is. "It is a huge undertaking from the depth of the schedule, with about 40 weeks — week in, week out — and I'm sure we'll ride the learning curve like everybody else," he told paper. "We'll probably tweak the system and make adjustments as we see fit from week to week." Plan is for MNST to sample in fanzone every week, to leverage key entitlement in deal. Monster has previously said it expects to bring at least a dozen of its Monster girls to races, tho Covington acknowledged to Motorsport the girls drew mixed reaction at Daytona.

Monster famously doesn't include paid TV ads in marketing mix, but Covington had acknowledged in Dec that Monster is open to exploring 30-second spots as part of NASCAR deal. He seemed to back off notion in discussion with LA Biz Jnl, saying that for media buy, "we do want to bring some unique content, as opposed to just 30-second spots." One thing that hasn't changed is co's contrarian approach to picking its endorsers. As Mitch recalled to Motorsport.com, "Someone said, I think in USA Today, that Kurt Busch was unsponsorable [after suspension due to anger mgmt issues]. I picked up the phone and called Kurt and I said, 'It says in the paper that you're unsponsorable. I want your next race — full paint out.' It was at the All Star Race in Charlotte. We flew in, painted the car black and Kurt Busch was sponsorable." (MNST did already have ties to Busch's brother Kyle, who interceded on his behalf.)

Wall Street analysts and investors breathed sigh of relief after Monster Beverage reported Q4 sales that soared 16.8%, tho most of lift came from 33% surge in overseas markets while US sales appeared to edge up a sluggish 4% in period. Still, buoyed as well by $500 mil stock repurchase, shares moved higher in relief rally in down market overall, tho analysts continued to worry that outlook for rest of year is hard to scope out. "Pivotal quarter," exhaled Morgan Stanley's Dara Mohsenian. US trends "are better than fears/scanner data," even as int'l markets are becoming "key driver" of growth. Further, Q1 2017 started solid out gate, with co saying Jan sales were up 10.4% (+11.6% excluding foreign exchange impact but +6.5% if extra selling day is offset). Still, wrote Wells Fargo's Bonnie Herzog, "We continue to remain concerned about soft energy trends at retail, higher marketing spend to drive top line to attract/retain consumers [via ties to Nascar and Tiger Woods], and margin dilution from ongoing negative channel, product, and geographic mix shifts."

Spirits marketer and importer Castle Brands said it's reached deal to place its Goslings Stormy Ginger Beer and diet extension in all 4,500 US Walmart stores starting this month. Castle brings in the brand, a key ingredient with Goslings Black Seal Rum in Dark N Stormy cocktails, via Goslings-Castle Partners global export venture. NY Times recently estimated Goslings Stormy Ginger Beer sales at more than 2 mil cases (BBI, Feb 14) . . . Starbucks Coffee is making foray into Italy via huge Roastery that's being installed in former post office building on Milan's Piazza Cordusio. New Roastery is due to open in late 2018 as fifth in co's network, following existing and planned locations in Seattle, Shanghai, NY and Tokyo. It will be 22,500 sq ft, larger than original in Seattle's Capitol Hill nabe and will serve as "culmination of a great dream of mine - 34 years in the making - to return to Milan with one of the most immersive, magical retail experiences in the world," per chmn/ceo Howard

These days it's not unusual for new craft brewers to also engage in craft distilling, as Interboro Spirits & Ales does in Brooklyn. New brewer in that boro called Wartega is offering different breed of diversity, melding craft beer program with barrel-aged coffee.

Dunkin' Donuts is extending its popular cold-brewed coffee line served in stores, and this time it's putting marketing blitz behind it. New to the franchise as limited-time offering is Sweet & Salted Cold Brew, blending Dunkin's signature batch-made cold-brew, sweetened with liquid cane sugar and featuring proprietary salted whipped topping. In NY, co is heralding launch via tie-in with radio station Z100 via Cold Brew James campaign inviting local musicians to record themselves performing original Dunkin' Donuts Cold Brew Jam based on lyrics they can download from DDNewYork.com. After contest closes on Mar 26, 3 finalists will be invited to perform at Dunkin' Donuts Iced Coffee Lounge at iHeartMedia Tribeca Studios, where judging panel will award winner $10K worth of studio time and $500 Dunkin' Gift Card.

With big sales drops reported in first 2 months of 1.5-cents-per-oz tax on sugared bevs in Philadelphia, PepsiCo said it will be cutting employees at 3 distribution plants around city, reported Philadelphia Inquirer. "Unfortunately, after careful consideration of the economic realities created by the recently enacted beverage tax, we have been forced to give notice that we intend to eliminate 80 to 100 positions, including frontline and supervisory roles, in Philadelphia over the next few months, beginning today," said rep Dave DeCecco. While Dave insisted layoffs are necessary, not politically motivated, city officials slammed move immediately. "The soda industry sank to a new low today," charged city spokesperson Laura Hitt, citing PEP earnings and exec pay as proof co doesn't need to slash jobs. "This isn't something we take lightly or want to do, and we are committed to working with our employees and the union to treat impacted individuals with the care and dignity they deserve," said DeCecco.

Now that it's largely over the hump of last summer's capacity squeeze, GT's Kombucha is back to fleshing out its Enlightened non-alcoholic line and Classic low-alc line in ways that better differentiate the two, even as it gradually builds the CocoKefir line that it acquired and restaged last year.

In recent weeks, alcohol regulators across the country confronted the additional challenges created when sky-high demand for certain ultra-rare spirits drives their value way up and feeds a bustling secondary market. Leadership of the Oregon Liquor and Cannabis Commission was shaken up and the agency is under both criminal and ethics investigations after an internal report revealed details of a long-standard practice: diverting bottles of high-end, allocated whiskeys from the market and reserving them for staffers and legislators. Elsewhere, investigators in Kentucky are working with federal and other state regulators to uncover a far-reaching scheme to ship rare bourbons all over the country, likely leaning on imported counterfeits to boost supply of high-priced bottles.

Following difficult and damning series of articles by public health advocate-writer last summer, no surprise that lawmakers in New Mexico would weigh a variety of alcohol-related proposals this session. Debate kicked into high gear last wk with intro of companion bills that would set a "flat 25-cents-a-drink" excise tax rate on all alc bevs, as Albuquerque Journal described. House version of the bill passed the Health & Human Services Committee last Friday and now heads to the chamber's tax committee.

Organic hydration brand called Clean Energy Organics (CEO) has gradually been building presence in Boston area, purveying easy-drinking energy elixir that's positioned as "deliciously clean, naturally energized."