Beer Marketer's Insights

Beer Marketer's Insights

ABI gets credit in today's Wall Street Journal for how it handled the "unprecedented sponsorship snafu" when Qatar officials changed their mind on selling beer during World Cup games at the last minute. "Budweiser was forced to rip up much of the plan it had been working on for years and write a new one in days," noted WSJ. "In the end, the brewer found a way to navigate the World Cup beer-free and roll with the media attention that the alcohol ban generated." Budweiser has been the official beer sponsor for the World Cup since 1986, and each time, "we go into all kinds of contingencies, prepare for all kinds of scenarios," said Eelco van der Noll, ABI's global vp of experiential marketing. "But a few days before the event, to be told to remove our Budweiser from the stadiums…to be honest with you, that was not really something we had prepared for," he acknowledged.

Virginia could become the first state to formally regulate placement of NA brands crossing over into alcohol. A pair of bills advancing in VA's General Assembly would "require Hard Mtn Dew and similar products containing alcohol be kept separate from their regular soft drink counterparts on store shelves," Pluribus News reports. The bills cleared each chamber with "nearly unanimous votes," backed by AB, MC and the VA Beer Wholesalers Assoc. And while soft drink industry has "largely remained on the sidelines" of debate so far, bills are no doubt being watched closely by bev giants taking alc biz more seriously.

DISCUS prexy/ceo Chris Swonger counted 5 state legislative wins for spirits-based RTDs in 2021, but only 1, VT, actually lowered tax rates and expanded access. Org merely blocked bill to restrict container sizes in NE, while 3 other states just studying the issue. It's "time to can outdated alcohol laws," Chris said, hinting to lawmakers "looking to create more of a level playing field" in CA, IN, NJ, OK, TN, WA and NV's Clark County (Las Vegas). There are "probably ten to fifteen states that are going to be moving on this," he suggested, promising that DISCUS will "be very, very aggressive."

Total PepsiCo revs jumped 8.7%, $6.9 bil to $86.4 bil last yr and operating profits up $350 mil to $11.5 bil, beating analyst expectations on both revs and earnings per share. So its total revs almost 1.5x ABI, tho it makes less money. Still, its stock mkt capitalization at $240 bil. That's almost 2x ABI. And while AB already discounting more in 2023, Pepsi "will not be cutting price," cfo Hugh Johnson told Yahoo in no uncertain terms this morn.

Long-term trajectory continued in 2022, when spirits supplier revs grew 5.1% and surpassed beer for the 1st time, DISCUS announced today during annual economic briefing. It's "big, big news" and this is a "big, big moment for our industry," ceo/prexy Chris Swonger exclaimed. Distiller revs hit $37.6 bil in 2022, adding another 0.8 share of total alc bev supplier rev pool to 42.1, according to org's calculations.

Chicago-based Good Sport milk-based hydration brand has entered over 1,000 Walmart stores in Midwest . . . With help from incubation partner Cascadia Managing Brands, Chiki Chiki Boom Boom Tropical Water has entered 306 Walmart locations throughout state of Florida . . . Confirming that it's recently pulled in $6 mil in new capital from its roster of existing investors (BBI, Jan 19 and 23), Roar Organic said it's entering 1,300+ Publix grocers with its Mango Clementine, Cucumber Watermelon and Georgia Peach flavors . . . Splash Beverage Group said it's landed Florida house JJ Taylor to distribute its Tapout hydration line in its 16-county foo

A group of over 2 dozen consumers from 12 states ratcheted up scrutiny of proposed Kroger-Albertsons deal, filing a class action lawsuit under federal antitrust law early this mo. A combined co would "increase prices for groceries, decrease the quality of food, eliminate jobs, close stores and offer less choice for consumers," complaint alleges. It uses fiery language to make big claims about expected impact on competition, most of which have been alleged elsewhere by others aiming to block the deal. Suit also names PE firm Cerberus Capital, major Albertsons shareholder, claiming conspiracy related to $4-bil dividend payment also targeted by other lawsuits. Here are some key points as gleaned by our sibling newsletter Insights Express.

Israel-based nano-emulsion player Capsoil Foodtech is planting a stake in US, opening a facility in Winter Garden, Fla, and appointing former Algatech ceo Doron Safrai as ceo. Capsoil has patented process for converting oils into water-soluble powders that are targeted at food, bev and nutraceutical spaces. Safrai brings diverse array of experience across several continents at companies like Tambour, Keter, SodaStream and Galam Group, with understanding of complex nutraceutical ops that should stand Capsoil in good stead, said the man he'll be succeeding, the former Nestle and Unilever exec Nir Ilani, who'll remain on board co, which is a partnership between Prodalim Group and Capsoil.

Compact take by Tech Crunch on NY-based Athletic Greens offers glimpse of why maker of powdered nutrition bevs is both a unicorn and fairly unique to boot. The unicorn status came via recently disclosed $115 mil round that valued co at $1.2 bil - unicorn status. The unique part? Tho it was founded over a decade ago, to date the co offers a single product - its AG1 powder - and had built its topline to $150 mil run rate before ever raising any outside capital, undisclosed amount that came in Jul 2021 from roster of well-heeled users like Hugh Jackman and Cindy Crawford. The big new round was led by Alpha Wave Global, along with new investor Mark Vadon and returning investors SC Holdings, David Blitzer's family office Bolt Ventures and Dr Peter Attia, as well product users, per Tech Crunch. Founding story will be familiar one to those who've followed brands like Bulletproof Coffee: unhealthy founder (Chris Ashenden) who plowed large amount of money ($35K) into unsuccessful effort to solve issue via supplement regimen of 50 pills, then devised his own solution in 2010. As story notes, AG1 incorporates 8 nutritional products into one, including multivitamins, probiotics and immune support, and is approaching its 53d iteration this year.

Back in the day, iced tea icon Snapple used to draw surprising degree of consumer interest simply by depositing range of arcane facts (not always correct ones) under its bottle closures - to point they even became topic of (sometimes profane) lampoons. Now the Keurig Dr Pepper-owned brand is celebrating 20th year of Snapple Real Facts by adding a contemporary twist: enlisting AI tool to help consumers generate their own factoids. What's dubbed the Snapple fAIct Generator "puts fact-creation in the hands of the brand's fans," per release today that was written via OpenAI's notorious new ChatGPT engine "with some light edits to make it more Snapple-y." The generator will create database of those new facts and consider some for actual appearance on bottles next year. As co noted, since their start 2 decades ago, Snapple has run 1,677 facts along lines that beavers can hold their breath for 45 minutes or that Slugs have two noses.