Beer Marketer's Insights
Buoyant alc-alternative sector that's riding wave of growth set stage for looming Dry January period this afternoon with webcast that highlighted diverse demos and occasions they reach, and big plans they're hatching for next year. Webcast was hosted by ANBA (Adult + Non-Alcoholic Beverage Assn), whose ceo Marcos Salazar invited member suppliers serving on board to offer taste of spectacular inroads segment is making and some of their plans for coming year. ANBA, recall, launched just this past year in US/Canada (BBI, Dec 3), is now launching in UK and EU, and has set sights on APAC and EMEA regions too, Marcos reported. It's got 90 members already.
Breweries remain barred from accepting direct payment for assigning Texas distribution rights to a licensed wholesaler in the state following state supreme court’s (in)decision late last wk. Ct chose not to hear appeal brought by trio of small Texas brewers, Live Oak, Revolver and Peticolas. Recall, brewers sued state, charging that 2013 law explicitly barring brewers from being paid for distrib rights violated due process rights with “no rational reason,” pushing well beyond state’s “police power” to regulate industry. In 2016, lower court ruled in brewers’ favor. But Tex Alc Bev Commission appealed that ruling, which Tex Ct of Appeals reversed the next yr (see vol 8, no 106 from Dec, 2017). Now, by choosing not to hear case, Tex Sup Ct upholds that decision. Brewers weighing options.
Expansion Notes: Belching Beaver, Others Expand in SD; Big Plans in FL, TX; More On-Site Oppys
While many large craft brewers face tougher trends, smaller craft players across US see ways to dig deeper and expand their bizzes. Plenty shakin’ in San Diego, watched closely by local outlet Westcoaster SD. First, fast-growing Belching Beaver makin’ more moves, picked up additional 24K sq-ft in nearby lot to expand packaging capabilities and move into hard seltzer market, paper wrote. Brings co’s total footprint near 50K sq-ft. It produced just over 30K bbls last yr, just outside top-20 CA-based craft brewers, according to state reports. Sold almost 3/4 of that in CA too, up almost 50% from 15K bbls sold in home state in 2017. Belching Beaver on track for 40-45K bbls in 2019, per Westcoaster, with other oppys ahead of it as well. Lots more moves in the county, including planned taproom in downtown InterContinental hotel from Latitude 33 Brewing and new location for Acoustic Ales in Carlsbad. Big Moves by Brew Bus/Florida Ave Near Tampa, Circle Brewing Near Austin In 2 of top-5 most populous states, both still under indexing in terms of breweries per capita and craft share, a couple of recent announcements that sound a lot more like traditional craft capacity expansions. Almost 4 yrs after acquiring Florida Avenue Brewing in Tampa, Brew Bus Brewing announced big expansion plan to build its own production facility in 34K sq-ft facility in Wesley Chapel community, Neighborhood News reported. Company that started as bus-tour operator to nearby breweries started producing its own beer under Brew Bus Brewing name at BrewHub and acquired one of older area brewpubs Florida Avenue in 2015 (see vol 6, no 97). Now co acquiring large ex-fitness center that’s been closed since around the same time. Building out production facility for both brands lookin’ like an $8.7-mil investment, according to paper. Big plans also on tap in Texas, where Austin’s Circle Brewing got greenlight for large expansion in nearby Elgin, according to Austin Biz Journal. City council ok’d up to $200K in economic incentives for co to build 18K sq-ft brewery on 22 acres, clearing land to also grow crops for its beer as well. Opened in 2010, co shipped just over 2,000 bbls last yr, according to Brewers Assn stats. Construction expected to begin this summer with brewery opening early next yr, paper wrote. Second Sites and Sports-Related On-Premise Efforts Details scant so far, but Seattle’s Cloudburst Brewing announced plans for a 2nd taproom in town, this time in hopping Ballard nabe, according to The Stranger. The 4-yr old co has kept its biz draft-only so far and made quite the name for itself in a town crowded with breweries. But when right building showed up, co made move and expects new location to open before end of 2019. Then in Massachusetts, Worcester-based Wormtown Brewery expects to open a small brewery and taproom in 4K sq-ft location at Patriot Place, adjacent to Gillette Stadium where New England Patriots play. Outfitted with 7-bbl system and spacious taproom, co hopes to get site up and running this summer, in time for football season to start. Similarly, upstart Atlanta brewery Scofflaw announced debut of branded location in city’s State Farm Arena, home of NBA’s Hawks and WNBA’s Dream. The Scofflaw Beer Barn is outfitted with 48 taps, more than any other bar in arena, brewery touted. Meanwhile, back in Boston, pop-up beer gardens in and around town keep on, well, popping up. Back for 2nd yr, Castle Island’s Constitution Wharf spot in Charlestown, as Boston.com recently featured.
AB’s Breckenridge Could Lose Original Location as Landlord Backed Out of Lease Renewal; AB Suing
AB’s Breckenridge Brewing could lose its original location on Main St in city of Breckenridge, CO, following property owner “abruptly and inexplicably” backing out of negotiations to renew the lease, reported Summit Daily talking to Breck’s head brewer Jimmy Walker. “After exploring every avenue to stay we filed a lawsuit on Friday as a last resort,” AB Brewers Collective communications director Megan Lagesse told CBN. “The current lease is up June 30,” AB atty told paper, explaining that “while the brewery thought it had an agreement with the owner, they recently had a change of mind.” So with less than one mo to figure out alternatives, AB/Breck lookin’ for a quick remedy. Owner of the property is listed as Breckenridge Brewery Real Estate LTD. While production primarily moved to brewing campus in Littleton, CO, the Breckenridge Brewery’s Breck location employs over 60 people and serves as co’s “innovation center,” general manager Sarah Hanley noted, adding “Anheuser-Busch is super committed to us staying in the community.”
Goose 312 Urban Wheat and IPA prices in Chicago are extreme examples of AB’s willingness to go low on core craft brand prices. Yet co’s also experimenting with low price points across many of its acquired craft brand families. Collectively, AB acquired craft cos avg prices dipped 2.5% to $37.91 per case in IRI mutli-outlet + convenience data. That’s not far off from total craft segment prices (+1.1% to $38.26/case). Indeed, low prices below far from across the board. Top AB acquired craft brand Elysian Space Dust still well above craft avg at near $49/case. Others too. But avg price for each brand family is down YTD, including sizable price drops on several lead brands emphasizing larger pack sizes (15-, 18-, 24-pks, etc.), and newer intros at low prices. For example, Golden Road Wolf Pup session IPA and Mango Cart each down at $30-31/case markers in MULC ($29.42 and $27.23 in grocery channel); Goose 312 Urban Wheat and IPA at $28.50/case and $31.88/case nationally in IRI MULC ($26.87 and $28.05 respectively in grocery channel); Blue Point Toasted Lager down $4.30 per case to $31.82 in MULC ($28.50/case in grocery); Breckenridge Nitro Irish Stout prices plummeted to $29.56 per case, down 30% vs last yr, and $$ sales down as result even with volume up 38%; Breck variety pk (15pk) is down to $25.30 per case in MULC, tho sales spiked to become its #2 brand overall. And Four Peaks Gold Lager dropped $4.73 per case to $32.25 YTD. Jaw-Droppingly Low Craft Case Prices in $21-25 Range Then too, newer brands goin’ even lower in some instances. Real low. 10 Barrel Pub Lager, $$ up 53%, volume up 124%, is selling for under $21 per case YTD thru May 19 in IRI MULC. Down $9.60/case vs last yr. Just getting started, Goose Island’s new Natural Village Garage Style Lager goes for $22.66/case in MULC; Summer Hours Lager is up $4/case to $23.70 on avg. Golden Road’s new Fruit Cart mix pk is $26.75 per case and new Spiked Agua Fresca variety pk at $27.80 per case. Devils Backbone new Gold Leaf lager at $26.30/case; Blue Point’s new Shore Thing Anytime Anywhere Lager selling at $25.77 per case; Summer Ale at $25.09 per case. Separately, MillerCoors dabblin’ with lower-priced craft too, primarily with new Saint Archer Gold, selling for ~$29/case in MULC currently. Terrapin Recreation Session IPA ($27.48/case), Hop Valley Light Me Up Lager ($27.99) are goin’ low as well. But those brands are less emphasized, both declining double-digits. And MC acquired craft cos collectively still above avg craft pricing, at $41.01/case, down 0.5% YTD thru May 19 in MULC. Many of AB’s lower-priced craft brands are in growth mode currently. AB (and MC) far from the only craft cos dabbling in these lower price points. But still gotta wonder, at what cost?
It’s tuff out there for craft brewers in Chicagoland scans right now. Craft segment $$ and volume each declined 10% YTD thru May 5 in Chicago IRI multi-outlet + convenience data. Ouch! That’s as total beer $$ up 1.5% and volume down 0.3%. So craft lost 2 share of $$ to 15 even YTD. Nearly 3X the size of domestic premium $$ loss, -1.9% and -1.1 share to 31.5. But imports close to overtaking premium segment by $$, at very near 30 share and up near 6%. Like elsewhere, FMBs (namely hard seltzers) also propelling beer biz in Chicago scans. Segment up 42% by $$, gained 2 share of $$ to 7. Segment’s $3.6-mil gain by far biggest of any segment, more than makes up for craft’s $2.9-mil loss. Mike’s Hard Lemonade Co up 76%, near $2.4 mil on its own, all in FMBs. So 2/3 of growth. But a bit less than half the segment. White Claw Variety Pk now #18 brand by $$ YTD and up over 500%. Boston Beer $$ up 25%, with Truly Berry Mix Pk and separate Vty Pk neck and neck at about a half-mil $$ in sales YTD, +785% and +180%, respectively. Both still behind Twisted Tea (+16%) and Angry Orchard Crisp Apple (-5%), but bigger than any Sam Adams brands, none of which appear in top-50 in Chicago scans. Revolution, Lagunitas, Bell’s All Declining Three of top craft brewers in Chicago scans all down yr-to-date thru May 5 in IRI MULC channel. Two based in town, both accustomed to pretty strong growth over the last several yrs. Revolution $$ dipped 5% and Lagunitas down 10%. Volume trends steeper for Revolution (-8%), a bit better for Lagunitas (-5%). Despite slight $$ dip, Revolution Anti-Hero IPA (-0.5%) is now 2d largest craft brand by $$ in Chicago IRI, closing in on Blue Moon Belgian White (-6%) for #1 spot. Both of Lagunitas’ lead brands down a little steeper, off low-mid singles. Little Sumpin’ $$ down 2.5% (tho volume up 5% with lower avg prices). It remains co’s largest brand in Chicago scans. Flagship IPA down about 4% by both $$ and cases, falling to 8th largest craft brand in mkt by $$, behind Goose 312 Urban Wheat (-0.4%), Leinie Shandy Seasonal (-11.3%), Goose IPA (+6%), and Bell’s Two Hearted (+5%). Can’t isolate total Goose Island trend. But despite Two Hearted gain, total Bell’s biz in Chicago off near 1% by $$, but up 2% by volume. Pricing Watchout; Goose IPA and Urban Wheat Avg $25-26/Case Two Hearted far from alone in getting better volume trends in Chicago. And in most cases, those stronger volume trends associated with lower average prices. In fact, Revolution Anti-Hero is one of just 2 top craft brands in Chi scans with average prices higher so far this yr than last yr. Other is Blue Moon, which along with top Leinie Shandy brand has kept prices basically flat. Again, Little Sumpin’ cases almost 8% lower than last yr, but still up at $36.51 per case YTD. On the other hand, avg case prices for Goose brands in Chicago now hovering in mid-$20s. This isn’t just the occasional promo-opti price range any more. Goose 312 Urban Wheat avg price down 8% to $25.70 per case YTD in Chicago MULC. And Goose IPA prices down 4% to $25 even. Growth of 15-pks key here (see below). Note too, Chi retailer Jewel Osco just released a text-message based version of mail-in-rebates, giving customers a near-instant $6 off $12.99 15ers of Goose IPA. Yup. A $6.99 15-pk. Same price and rebate for 12ers of Golden Road Agua Fresca, Stella and Bon & Viv seltzers too. As result of lower avg Goose prices in its home mkt, 312 Urban Wheat volume up near 9%, IPA +11%. Those prices about $10 lower than avg craft case price of $35.15 in Chi scans. But even that’s down 0.5% YTD. Windy City’s reputation as ultra-competitive pricing mkt now clearly evident in this craft data. Several Top Craft Suppliers Growin’, Led by NBB, Founders, Half Acre and Three Floyds While some of the top craft cos and brands are strugglin’ in Chi-town, a handful of cos are growing solidly as well. Three top craft cos in Chi scans growin’ by double-digits or close, gaining around $100K in sales each. New Belgium got best absolute $$ gain among craft cos in the mkt, +9% YTD thru May 5 in IRI MULC. Founders up 11%, led by All Day IPA up 5% by $$. And local Half Acre even faster, +13%. And from just out of town, Three Floyds growin’ mid-singles in Chicago scans, $$ +4.4% YTD. However, another longtime Chi-town leader, Two Brothers, off 11% so far this yr. And Sierra Nevada down 10% by $$ in the mkt. Again, note that no Sam Adams brands, nor Sierra Pale in top-50 beer brands in Chi scans. And looks like top brands ain’t the only ones struggling in the mkt. All other cos outside of the top-20 beer vendors in Chicago IRI (mostly craft) collectively down 12% YTD thru May 5. All brands below top-50 down 4%.
2022 Year in Beer Webinar
Register for the Beer Marketer's Insights Year in Beer webinar, featuring the news and numbers that drove the beer biz in 2022, to be held on Wednesday, Feb 1, 2023, 1 - 2:30 PM EST. Review key stats and critical stories that defined 2022. Don't miss this 60 minute + Q&A webinar, sharing top-line numbers and headlines. Presented by BMI editorial staff, you'll get a wide-ranging, rapid-fire review of the most important news, numbers and insights within the US beer biz. Register now for just $225, or sign up your team of 5 for $750; 10 for $1,125.
Chalk it up as another example of crowdfunding gone wrong. After talks with a potential buyer reportedly fell apart, UK's Wild Beer Co went insolvent and laid off its entire workforce, according to Just Drinks. The craft brewer crowdfunded £1.76 mil ($2.14 mil in today's dollars) from nearly 2K shareholders back in 2017, but never delivered on the new brewery it promised to build.
BA Cancels SAVOR Food Pairing Event
Say goodbye to SAVOR. After "14 delicious years," SAVOR will "hang up its apron," the Brewers Association announced today. No 2023 date had been officially announced, meaning the June 2022 event was its last. Org will instead turn its attention toward larger events including the Great American Beer Festival and Craft Brewers Conference. "We'd like to thank all our beer lovers, breweries, sponsors, and partners for making SAVOR the country's premier craft beer and food pairing event," the association wrote.
After a bit of delay, Lagunitas' new innovations lab, dubbed the Lagunitas Disorderly House of Brewing," officially opened today, co shared with CBN. Recall, this is part of Lagunitas' Petaluma, CA brewing campus, initially licensed as a brewery that can "start to play" across all kinds of brews and NA products, tho "not licensed" for any other types of alc bevs (see May 20 issue).

