Beer Marketer's Insights
After a delay in its reporting, the US Substance Abuse and Mental Health Services Admin (SAMHSA) confirmed one of the most overlooked findings about shifts in alcohol consumption during the pandemic. The prevalence of past-month drinking and binge drinking declined across age groups in 2021, results of the large Natl Survey on Drug Use and Health showed. (Note that data collection was interrupted in 2020, so authors urge caution when comparing those results to earlier and later years.) Ref 2
The prevalence of alcohol use by 12th graders in the last 12 mos "returned to pre-pandemic levels" in 2022, increasing by 5 pts to 52%, equal to 2019's reading, authors of the 2022 Monitoring the Future (MTF) study wrote early this yr. "The results for alcohol indicate that the dip in prevalence [in 2021] was fleeting and that alcohol use is back to where it was before the pandemic," they commented, contrasting the finding to trends for other drugs commonly used by teens, like cannabis and nicotine vaping. Use of those drugs "decreased after the onset of pandemic" and "these lowered levels of use continued into 2022." (Note that MTF researchers collected 2020 data prior to March of that yr; so 2021 figures most clearly present any pandemic-related changes.) Ref 1
Two of the largest, clearest windows into American drinking and drug use opened recently with the release of two major national surveys: the first part of the University of Michigan's Monitoring the Future and the federal govt's Natl Survey on Drug Use and Health. Importantly, both confirmed ongoing declines in teen drinking, even if some of the big drops in the prevalence of underage consumption during the first year or two of the pandemic were not fully sustained. The surveys also suggest that a small group of adults took a break from drinking during the pandemic, adding notable wrinkles to widespread claims of increased consumption. But by all accounts, cannabis use continues to grow and recent results remind that cannabis users use it far more frequently than drinkers drink. Read on.
New $6 mil capital round pulled in by Roar Organic came as hydration brand was concluding 2022 that brought 163% gain in gross revenue, setting stage for additional investment in sales and marketing functions, prexy Bill Lange told us today. He was responding to our inquiry last week seeking further details of round (BBI, Jan 19). He told us today that he's not at liberty to say much about round but it represents re-investment from existing shareholders as brand builds momentum. He noted co currently is posting openings for 7 staffers in sales and marketing areas. Recall that struggling Roar came under wing of Penn-based incubation/turnaround house The Factory in early days of pandemic (BBI, May 5 2020), suggesting that co may be largest investor in new round. Bill joined this past fall (BBI, Sep 7).
PEOPLE: 100 Coconuts Enlists Miller to Run Sales, Just Off 4 Years Building Biolyte to $22 Mil Sales
Vietnamese-sourced 100 Coconuts brand has enlisted Biolyte vet Jason Miller to run sales as sales prexy as co builds out DSD network to support network of retailers that now includes Publix, HEB, Walmart, Target, Vitamin Shoppe and Safeway. Atlanta-based exec brings lotsa distributor-side experience to task, including runs at Union Distributors, Red Bull house Matador, JEM and Savannah Distributing before heading to Molson Coors brands like Crispin Cider and Terrapin craft beer. On his LinkedIn profile, he claims to have helped build Biolyte from $3.1 mil in 2019 sales to $22 mil in 2022, enlisting DSD coverage in 38 states and entering 22K store doors. The alc experience is relevant insofar as 100 Coconuts straddles 3 segments with core Pure Coconut Water, alcoholic Coconut Water + Tequila and cannabev Coconut Water + CBD.
After Selling $250 Mil at Retail in '22, Prime Hydration Founders Say They're Super-Bowl-Bound
Can Prime Hydration be Bowl-bound? That's what its colorful creators, the social media influencers Logan Paul and KSI, are excitedly claiming in social media post, tho it could just be a stunt too. "Breaking news: Prime will be getting its own Super Bowl commercial," Paul enthuses in 14-second YouTube video. "Holy sh--. The first-ever YouTuber Super Bowl commercial for a product that KSI and I created," he says, hugging his partner who, along with Congo Brands, did most of the hard work, launched bottled entry that they claim to have done $250 mil in retail sales in its first year in US, where MMA fighter Paul is based, and UK, where rapper KSI is based. No word back from Congo prexy Sam Wilson so far on whether announcement is for real. The duo posted an extended animated ad for nascent brand a year ago that was labeled as a Bowl ad but didn't actually air to our knowledge. Paul and KSI, of course, developed added notoriety - and their friendship - out of series of sold-out boxing bouts, allowing Paul to say in video that Prime was birthed in violence.
FUNDING: Guayaki Reels In Cool $75 Mil; Heywell Advances Seed Round to Support SKU Expansion
Dry period for bevco funding? Not for yerba mate pioneer Guayaki, which has pulled in $75 mil of intended $143 mil capital round, per SEC filing. Equity sale apparently commenced Dec 30, but no details are included on valuation etc. Forbes noted that document lists as new directors Anthos Capital prexy Emily White and SBG Growth founder/ceo Robyn Rutledge, suggesting those firms participated. It cited PitchBook data that Guayaki generated $100 mil in sales in 2021 after raising 5th VC-backed funding from CaVu Venture Partners, Swift Foundation and other investors the prior year. . . Chicago-based adaptogenic water brand Heywell said it's received another investment from Sybilla Masters Fund as part of its seed ongoing round, enabling activities like pending launch of mood-enhancing Energy + Uplift Sparkling Orange Mango with 2 more sku's on horizon. Sybilla, which styles itself a "women-led gender lens venture capital fund investing in better ways to live and work together," made its original investment in Heywell last May. As reported, Heywell is woman-owned bevco launched by former Miller Coors execs Ashley Selman and Gillian Muessig not long before pandemic that offers canned bevs with functional stacks made from adaptogenic herbs like schisandra, L-theanine, ashwagandha and lemon balm, along with antioxidants, minerals and 75 mg organic caffeine for energy entries (BBI, Oct 29 2019). So far it's offered stacked functional suite of Energy + Focus, Energy + Immunity, Calm + Restore and Calm + Hydrate at retail partners like Central Market, Erewhon, Earth Fare and Foxtrot Market as well as Life Time Fitness chain. Among recently added doors have been Wegmans, Gelsons and Fresh Thyme chains. Masters Fund venture partner Walter Greenberg, who led round, said investment was appealing in part because founders are seasoned operators with clear vision for where brand needs to go.
Join us Wed, Feb 1 at 1PM Eastern for the 2022 Year in Beer webinar to get an in-depth look at the news and numbers that moved the needle in the US beer biz. In just over 1 wk, Beer Marketer's INSIGHTS editors will unpack the year that was and gear up for what's to come. Register today for this 90-minute review (including Q&A) of essential beer biz stats and facts. Or watch the presentation on-demand: a recording of the presentation and a copy of the deck will be available to all registrants.
Natty Light is going retro. The brand will launch a "permanent, nationwide replacement of its existing design" with vintage 1979 graphics and a "full brand refresh" featuring the return of its Act Natural campaign, AB announced (pic below). Retro pkging will start hitting shelves in next few wks, "here to stay" following successful limited-edition runs in the Carolinas over past 2 yrs. 
Mich Ultra Broadens Super Bowl's "Caddyshack Cast"; Sponsors Netflix's Upcoming Golf Docuseries
After confirming its Super Bowl appearance will pay homage to golf comedy classic Caddyshack, Mich Ultra teased another set of stars joining the cast. New clip shows tennis legend Serena Williams and actor Brian Cox (who stars in HBO's Succession) on the links, recreating Caddyshack's fictional Bushwood Country Club.