Beer Marketer's Insights

Beer Marketer's Insights

Pair of regional brewers announced new markets on opposite sides of the country this wk. Following big expansion of its Nashville brewery, Wiseacre announced expanded distribution to Arizona, its 18th state plus DC. Co touted flagship Tiny Bomb pilsner as #4 craft pils in the US, with sales up 57% since 2021. It tapped Scout Distribution statewide, with placements lined up in Sprouts, Whole Foods, Total Wine and others. Meanwhile, CO's WeldWerks expanded footprint to founders' home-state of North Carolina with craft-focused Artisan Beverage Group. The brewer known for its hazy IPAs and flagship Juicy Bits, already distributes in assortment of 11 states spread out across US. Last wk, NJ's Cape May Brewing announced expanded distribution in neighboring PA, tapping Wilson-McGinley in the western part of the state, LT Verrastro in the northeast and Ace in south-central. Delaware is the co's only other market outside NJ.

Crowns & Hops is the "first Black-owned, woman-owned, veteran-owned brand to raise over $1 million on an equity crowdfunding platform," said co-founder Teo Hunter at BBD Summit yesterday. Co produced ~2K bbls in 2022 and it's "looking to double that this year," via partnerships with Stone Distributing in SoCal and Wine Warehouse in Central/Northern CA. Its beers are now sold in NY, CA, GA, WA and OR. But the brewer's focus is in CA, where it's also in process of building a 14,400 sq-ft brewpub "a stone's throw from SoFi Stadium" at a converted bowling alley in south LA/Inglewood, with plans to open by June/July 2023.

After sharing tidbits about the brand following co's natl distrib meeting last fall (see Sep 30 issue), New Belgium officially announced launch of its newest big Voodoo Ranger addition, Fruit Force IPA, a 9.5% ABV fruit-punch flavored imperial IPA "pushing flavor boundaries even further" after its remarkably successful Juice Force launch.

Founders and Avery Brewing will make "formal integration" with parent co Mahou San Miguel's import portfolio on Jan 12 to create Mahou USA, cos announced. This "marks a landmark change in the company, and a completion of the business transition to parent company Mahou Group, which began in 2014," per release. Elton Andrews Knight will transition to Mahou USA CEO after being appointed Founders CEO in early 2022 (see Feb 1, 2022 issue), and previously working as Avery CEO.

Tilray's alc bevs are co's lone growth segment in fiscal 2023, primarily thru acquisition (as sibling pub INSIGHTS Express also reported). Sales jumped 56% to $21.4 mil for the qtr including incremental revs from now-owned Montauk Brewing. For running 6 mos, alc bevs up 44% to $42 mil. Co reported gross margin of 47% for qtr and 6 mos. "Adjusted" gross margin decreased slightly for the qtr due to combo of SweetWater CO facility "still in the startup phase" and both Montauk Brewing and Breckenridge Distillery operating at "slightly lower margin[s] than SweetWater," CEO Irwin Simon stated on earnings call.

Face 2023 with a confident understanding of the news and numbers that drove the US beer biz in 2022. Sign up today for the 2022 Year in Beer webinar, just 3 weeks away on Wednesday, Feb 1 at 1pm Eastern/10am Pacific. Join Beer Marketer's INSIGHTS editors as we unpack the year that was and gear up for what's to come. We'll hit the highlights with a data-driven update in a fast-paced 90 minutes, including Q&A. Register now for $225 per participant or sign up 5 registrants from the same organization for jus

While ABI continues to work down debt levels, co still investing sizable chunks of change in brewing capabilities both in US and internationally, with eyes on enhanced environmental efficiencies. ABI's Bavaria brewery announced it will be investing ~$413 mil for construction of a new environmentally friendly brewery in northern region of Colombia. The new brewery, which will create 1,500 new jobs during construction phase, is expected to be operational by mid-2024 to produce brands including Águila, Poker and Club Colombia. New facility "will be built to high environmental standards" in line with its 2025 Sustainability Goals, as it will "begin operations with zero net carbon emissions and advance Bavaria's commitment to brew 100% of its products using solar energy," ABI noted.

Cannabis is getting lots of press for all kinds of reasons to start the new year. Newer legal recreational states like IL hit record-high revs in 2022. IL adult use cannabis reached $1.55 bil, Marijuana Moment reported citing IL dept of financial and professional regulation (IDFPR) stats. That's up 12% vs year ago and +131% vs 2020. Gotta note, IL is now 3d largest state for recreational cannabis revs behind only CA and CO. IL currently up to 113 retail dispensaries operating in-state including 3 social equity licenses approved last year, gov J.B Pritzker highlighted. That's just the start for "nearly 200 new social equity businesses" expected to "come online" down the road. "We are optimistic the industry will continue to flourish in 2023, as we welcome more dispensaries to Illinois," added IDFPR secretary Mario Treto.

Molson Coors' latest non-alc endeavor with biz partner LA Libations: takin' a stab at the small yet budding mocktail mkt with Roxie zero-proof canned cocktails, co announced. It's "inspired by craft cocktails," available in "ripe with passionfruit," "forbidden pineapple" and "lost in mango" flavors, clocking in at 90 calories per 12oz can. Products will initially be available solely as direct-to-consumer (DTC) proposition via drinkroxie.com, priced at $18 per 4pk or $43 per variety 12pk with free shipping for orders of $35 or more. Launching DTC-only is "a first" for MC, tho MC prexy of innovation Jamie Wideman does anticipate "a day when Roxie is sold through traditional retail channels," MC blog noted. Going DTC-only for starters "provides an opportunity to market and communicate with consumers directly online."

Ask and ye shall receive. Yesterday, TTB granted request by 8 industry trade orgs for a longer comment period on current pre-rule review of federal trade practice regulations. Recall, BI, NBWA, DISCUS, WSWA, Wine Inst, WineAmerica, American Distilled Spirits Alliance and American Beverage Licensees filed letter asking for 90 more days late last yr. Just over 2 wks later, TTB obliged, believing it will still be able to "ultimately conclude the rulemaking in a timely manner." Comment period will now be open til June 7.