Sam Adams brand family improved slightly in latest period, tho continued to decline 9-10% for 4 wks thru Jun 15 in Nielsen All Outlet data. Both volume and $$ sales down 15% YTD. Yet regardless of Sam Adams (and Angry Orchard) struggles this yr, Boston Beer sales are flyin’ and picking up pace in latest scans, as Truly hard seltzers reach new heights. At same time, SAM stock surged another $12 yesterday to $361.19/share and whopping $4.17 bil market cap as mkts closed (today SAM fell back slightly to $358/share). Its stock has been trading at all-time record highs thruout the last couple mos and continues to grow in value. (A shorter version of this article also appeared in sibling pub INSIGHTS Express.)

Truly is Boston’s #1 by Vol for 4 Wks, 2X Size of Sam Adams; 83% of Boston Sales Not “Beer” Boston Beer $$ sales grew 21%, volume up 24% for latest 4 wks thru Jun 15 in Nielsen All Outlet, compared to +15-16% YTD. And once again, Truly hard seltzers are stealing the show. In latest 4 wks, Truly (+188%) is Boston Beer’s #1 brand family by volume off-premise (!) and 2nd largest brand family by both volume and $$ yr-to-date. That’s right, Truly volume made up 34% of total Boston Beer sales for 4 wks thru Jun 15, larger than Twisted Tea franchise (32%) and essentially double the size of both Sam Adams and Angry Orchard volume (each at ~17% of total). Gotta note, 83% of Boston Beer’s volume in scans for 4 wks is not Sam Adams. Yet keep in mind, tallys are prior to closing of Dogfish acquisition, which is expected to close sometime next mo, we hear. Currently, Truly represents nearly 1/4 of total Boston volume YTD with 3.24 mil cases sold in tracked scans. Twisted Tea at 35% of Boston volume YTD, Angry Orchard at 21% and Sam Adams 20%.

Sam 76 Digital Ads Jab at Big Lagers: “Finally, a Refreshing Lager That You Can Taste” As Boston Beer searches for ways to improve Sam Adams trajectory, co quietly launched new online media campaign for Sam 76 brew, including 30-second spot and trio of 15-second spots, that not so subtly takes aim at big brewer lagers in the process, Brewbound first reported earlier this wk. New campaign, “Taste Your Beer,” depicts several instances of people drinking Sam 76 and exclaiming “I can taste my beer!” with tagline: “Finally, a refreshing lager that you can taste.” Ads also depict new can design for Sam 76 dialing up patriotic themes with color scheme and depiction of Samuel Adams, just in time for the July 4 holiday. New can also has simplified style descriptor as a “refreshing lager,” and lists slightly lower calorie count of 128 cals directly on the can (listed as “hybrid” ale/lager at 131 calories on website). Gotta note, Sam 76 continues to decline at double-digit pace this year following 2018 launch. $$ sales dropped 17% YTD thru May 19 in IRI multi-outlet + convenience, including sales down 32% for 12 wks. Unclear how far this digital campaign is expected to reach and Sam Adams has yet to post any of the ads on its own YouTube channel at presstime. But ads mark an interesting change in tone for Sam Adams brand, leaning more on humor coupled with a competitive message.

Don’t forget beer from an “Independent Craft” brewer when grabbing provisions for July 4 celebrations, new campaign launched by Brewers Assn this morn urges. Latest iteration of org’s support behind its indie craft brewer seal, launched exactly 2 yrs ago tomorrow, focuses spend on digital platforms, using “video-centric campaigns” to drive “top-of-mind awareness leading into” key holiday selling period, BA craft beer program director Julia Herz explained to Craft Brew News. Supporting its indie seal obviously an “ongoing effort” for org, she reminded. But this “very concentrated effort tied toward Independence Day,” besides obvious linguistic link, strategically aimed at driving attention to indie craft brands during crucial period for traditional off-premise retailers.

Trio of short videos, making rounds on social media starting today, take comedic tack, featuring storylines of folks who forgot key elements for July 4 celebrations, but not “of course, the independent craft beer,” according to release. Indeed, the somewhat silly spots support ‘declaration’ of July 3 (next Weds) as “National Independent Beer Run Day,” as org encourages drinkers to “seek” its indie seal on what should be a big beer-buying day. Campaign also includes audio spots and sponsored playlists on Pandora and, amusingly, a live stream by BA of “a world record attempt at the longest cheers ever, toasting all 7,300 small and independent US craft breweries,” on the 3rd.

Retail Support & Support from Retailers; Seal Used by 4,400 Brewers No one in beer biz needs reminding how big July 4 is. But BA-defined indie craft sales avg over a third higher during week leading into or including holiday over last 5 yrs, Julia pointed out, citing IRI multi-outlet + convenience data. Craft, more generally, hasn’t exactly been the star of the show in that data so far in 2019. It’s been all-seltzer-all-the-time for a while now. So, during key week for beer sales specifically and, much more broadly, for all types of traditional off-premise retailers, BA working to contribute to the conversation and send engaged craft drinkers to the beer aisle thinking ‘indie craft.’

“Retail is a long-term game,” Julia acknowledged in convo with CBN. And “connecting directly with retailers” is “something the association is able to do,” indeed, “something that’s important to do when it comes to supporting and lifting up craft brewers.” As it works to “remind beer lovers to go back to those” retailers to buy indie craft, the BA also in some ways trying to add value to those retailers. And “we want retailers to remember the value that independent craft brewers bring” to them, Julia said. Craft easily over 20 share of grocery beer $$ in IRI data. BA-defined indie craft a big chunk of that. So, in total, indie craft represents broadest, most “robust brand portfolio” in beer, Julia said. Yes, it’s “sometimes more complicated” to work with, and may take “a little bit more” attention or energy, she noted. And even if individual brewers unable to provide the same level of support as larger competitors, in a way, BA stepping up to the plate with, in its view, “accessible, fun creative” that it hopes will end up “driving sales.”

While not all chain retailers exactly on board with BA’s seal, others embracing it. In NorCal, 10-store Raley’s chain highlighting “Independent Craft” seal “in several of their locations,” Julia shared with us. Plus, “independent retailers” more often “proudly talking up” its use on small brewer packages. Indeed, 4,400 small brewers, over 60% of US craft brewers “have activated the seal in some form on their packaging.” That includes over 40 of BA’s top-50 craft brewers.

Hitting the Socials Hard; 60% of Seal-Spotters Picked Up a Pack While last yr’s “That’s Independence You’re Tasting” campaign included some TV advertising, current campaign focused on top social media platforms and Pandora. But prior spots still cycling thru 2019 as BA has “efforts running throughout the year” to support indie seal. “TV is never a given” for BA’s small brewery members, Julia said, and org “pleased with everything we saw for 2018” when TV part of picture. But org “can’t do that sustainably forever” and “financially you’re going to see us dabble” there (i.e. more than play regularly).

Yet social-media focus perhaps more aligned with where consumers have gone in 2 yrs since seal launched. “The effort has evolved in terms of learning the media space,” Julia shared. Even with “all the dollars, all the agencies, all the talent in the world,” marketers “have to be able to keep up with the unpeggable trends.” And “the way that everybody is using social,” plus the “fast-paced evolution” of that space, helped steer the org to focus that direction for this “quick hit” of a campaign. The more “grassroots” feel of that campaign also a “very authentic” expression of BA’s work to this day. Indeed, Julia pointed out that brewers already picked up org’s videos and other media assets with their “own spin.” So for next week and change, “breweries putting their own voice to this effort,” as Julia said, will ideally compound BA’s spend on promoted posts and amplify message to consumers.

Of course, plenty of beer buyers already aware of the seal: 53% of beer drinkers attach “some level of importance” to “Independent Craft,” according to Sterling Rice Group survey from Jan. And almost as many, 48%, say they’ve seen the seal. Separately, 60% of craft beer consumers who’ve seen the seal told the Nielsen Harris Poll that they’ve “physically purchased craft beer with the seal,” Julia told us. How much it may move the sales needle for indie craft brewers still remains to be seen, of course. But BA still workin’ to find ways to play up its members in the marketplace.

Milwaukee-based Eagle Park Brewing is quickly expanding its presence and capabilities since opening in 2017, now planning to open additional 20,500 sq-ft brewery, cidery, and distillery in Muskego, WI, reported BizTimes Milwaukee. Eagle Park sold just 612 bbls in 2018, up from 378 bbls in 2017, paper notes citing WI Dept of Rev data. Yet in its short lifespan, co already gobbled up additional 5K sq-ft brewing space from closing co, Like Minds Brewing, last yr (Vol 9, #39) as well. New production space will sport 20-bbl brewhouse, distillery with 3K cases/yr capacity initially, and winery that will “primarily focus on” hard cider. Co hired ex-Breckenridge Distillery head distiller to run its spirits program. It will also have 300-person restaurant and taproom, an extra event space, and to-go sales, with plans to hire “about 30 people.”

Interesting details emerged on Harpoon’s ESOP process back in 2014, as co-founder and CEO Dan Kenary shared in recent Inc mag article. When other co-founder Rich Doyle expressed desire for “some kind of liquidity,” Dan was willing to meet with bankers and potential suitors “out of respect for” Rich. But Dan vowed to “pursue other options” and ultimately landed on ESOP as his preferred route. At the time, there were 6 other shareholders that owned roughly 11% of the co collectively. So Rich and Dan used them “like a jury,” each presenting their options, and having them ultimately decide. All six voted ESOP and the rest is history. “So we cobbled together a five-bank group led by Citizens and JPMorgan, and on July 2 [2014], we completed it,” Dan shared. It was $70-mil transaction, “which meant the company was in a large amount of debt.” Recall, Rich owned 48% of co, which implies Harpoon then valued at nearly $146 mil. That yr happened to be Harpoon’s peak in volume, shipping 209K bbls; last year co began to stabilize, flattish at 185K bbls, and this year Harpoon’s finding new avenues of growth thru Arctic Summer hard seltzer collab with Polar, continued Dunkin’ collab and other innovations. “But doing an ESOP is not like flipping a light switch,” Dan stated. “It’s more like steady communications over the years, teaching everyone what it means to be an owner,” and giving employees the sense that “if I do this a little bit better, it could really benefit me longer-term.”

One of the older active brewers in Germany, Gilde, suddenly has big plans in Charlotte, NC, including an eventual 500K bbls/yr brewery, separate microbrewery, and more, reported Charlotte Observer yesterday. Gilde’s history dates back to 16th century, and reached total output of 3.9 mil hectoliters (3.3 mil bbls) in 1996, according to co’s website. Yet it sold to Interbrew in 2003 (eventually AB InBev), and production curbed to just 150K hLs (128K bbls) by 2014. In 2016, ABI sold co to separate medium-sized brewery group in Germany/France. And that brings us to this latest development.

Gilde staked out Charlotte as “a rapidly growing city with a bustling airport” and “sizable German business community,” that happens to be close to Charleston, the port city where its beer will be imported, CEO Karsten Uhlmann explained to paper. Karsten has been living in Cornelius, NC for “about a year” while “he and his team quietly put their plans together” for this expansion project, paper noted. Yet expansion will come “in phases.” Gilde partnered with AB-house Adams Bevs, and plans to establish relationships with local retailers, including Harris Teeter and Food Lion, sports teams and event venues, work with lawmakers on regulations and more, per paper. But gotta note, this is its first export mkt in US. Aside from an “appearance” at a beer festival in May, first batch of imported bottles arrive in Charleston mid-Jul, with plans to be available in “area grocery stores” by Aug. By end of this yr, Gilde hopes to open separate 5K sq-ft microbrewery called “the Embassy.” And 2-3 yrs down the road, Gilde plans to open 100K sq-ft brewery with “spacious taproom, beer garden and full kitchen,” Karsten told paper. In this competitive and challenging US beer mkt, it’s hard to tell what emboldened Gilde to plan an expansion of this size and scope with no prior presence in mkt. But Gilde feels there’s room for co to introduce “heritage beers” to local drinkers, sez Karsten. We’ll see.

With trends back on track and a new canned cocktail collab fresh in the market, Narragansett gettin’ ready to close on deal for a new brewery/brewpub hub on the waterfront in Providence, RI next mo. With variance on 20K sq-ft location ok’d by city’s zoning bd last mo, co hopes to close on deal in July, get into space Sep 1 and build out its long-awaited homebase in brand’s original homestate in time for a Memorial Day, 2020 opening, CEO Mark Hellendrung explained to Craft Brew News this wk. Total ’Gansett biz expected to “finish the first half right around plus-six,” (+6%) Mark said. That’s despite losing “pretty big sell-day” at end of this month, like rest of biz facing in lead-up to July 4 holiday. Also a reversal from low single-digit shipments dip in 2018, recall.

Overall, Mark “super stoked that lager is up again,” he said of flagship brand, especially in “this land of flagship fatigue.” He expects brand to finish out 1st half up 3.5-4%. Co’s popular Del’s Shandy brands also “up again,” tho “some of that is driven by our watermelon introduction,” new flavor extension that debuted earlier this yr. And last yr’s launch, Fresh Catch dry-hopped golden ale “continues to do real well for us,” Mark commented. Of course, there’s “always more that you could be doing” and “distributors you can be working better with,” he acknowledged, but posting a mid-single-digit gain in current environment, Mark’ll “take the first half as a win.”

Providence Space Comin’ with Small System Aimed at 8-10K Bbls/Yr Some 14 yrs after buying the brand and bringing it back to New England, Mark “finally” found “the home that we’ve been looking for.” Brewing Narragansett in RI again was “always” part of plan, he reminded. That happened to some extent at Isle Brewers Guild facility opened a couple yrs back, recall. But 100-bbl batches at that location don’t so much fit with ’Gansett’s needs any longer. Most of co’s production still comin’ out of FIFCO plant in NY, which Mark planned to supplement with production of specialty lines at Guild facility. But “as more and more brewers get out there, smaller keeps getting redefined,” he opined. Co “used to be able to make a 500-bbl batch disappear” quickly. “But that’s when there were 3,000 brewers and not 8,000.”

Enter Providence location, expected to house just 20-bbl system and “max out at 8- to 10,000 bbls” after opening sometime next yr, Mark said. Rather than power-house production facility, it’ll become a smallish “brewery that has an unbelievable consumer experience.” Mark and co still putting together precise plans, tho expect to include a “limited food menu.” Location at “end of a fourteen-mile bike path,” in a “cool neighborhood” that’s “adjacent to three universities” and an “80-acre park” expected to provide strong base to keep building brand in New England. Unclear exactly what will be able to be up and running by next Memorial Day, but Mark and co “don’t want to miss next summer,” so will build out in appropriate phases to take advantage of seasonal traffic.

Vodka-Based Li’l Dinghy Line Launched with Lemon Drop, Sea Breeze in 12oz Slims Collab with PA-based Faber Distilling, Li’l Dinghy canned cocktails launched just ahead of Memorial Day and already sold “several thousand cases in just a limited geography so far.” Mark had relationship with Faber and cos built on connection with Del’s Lemonade makers to create Lemon Drop, plus separate Sea Breeze ready-to-drink cocktails for initial launch. Both clock in at 9% ABV, sold in 4-pks of 12oz slim cans, aimed at $11.99-14.99.

Tho ’Gansett connection not exactly hidden, it’s not played up on packaging either. Mark “got some really smart feedback from some of our distributors” when planning to “make sure we’re communicating the right thing to retailers and consumers.” Namely, that Li’l Dinghy is a “vodka-based product, not an FMB.” So co opted to keep brands separate. “The brands need to live on their own,” Mark said, tho you’re “kind of a dummy if you don’t leverage” existing fan-base on social media, he commented. Plus, can’t really “hide the fact” that same folks behind each brand, since “the consumer is smart enough” to figure that out. So “it’s a very fine line.” For example, if in fact Narragansett gets brewpub license at new Providence location, it’ll be able to serve spirits. So Mark expects that co would “have Li’l Dinghy products” available, but “it’ll be second fiddle within the temple of Narragansett.”

Understand the long-term shifts that shaped today’s beer biz and will continue to impact the industry with Ten Years After, the latest special report from Beer Marketer’s INSIGHTS. Available August 9, this in-depth report looks back at a decade of change in US beer. 2008 was a watershed year, bringing the formation of both AB InBev and MillerCoors just a year after Crown Imports, now Constellation, became the sole importer of Modelo brands in the US. Follow along as these 3 huge deals rippled across the industry and led to the trends and market positions that drive the biz today. This data-packed report, with thoughtful analysis from Beer Marketer’s experienced editors, tracks the changes that set US beer on its current trajectory. Pre-order your copy for the $200 today and be among the first to receive this exclusive report on August 9. Discounted rates available for orders of 5+ copies. Head to beerinsights.com to see what’s inside and order today.

There’s bound to be another gov’t shutdown, resulting in limited TTB operations and halted approvals for new beer labels and formulas, Atlas Brew Works assumes in latest filing in its suit against US. Recall, co filed suit in Jan amidst most recent (and longest ever) gov’t shutdown, claiming that stoppage of approval process amounted to infringement on co’s freedom of speech (see Jan 17 issue). Gov’t seeks dismissal, claiming suit is moot and more. But “it is best to deal with this matter now,” Atlas wrote it recent filing, not when stakes raised during “the next shutdown,” according to Legal Newswire summary. Issue will come back, so might as well deal with it now, co argues. Another shutdown will “again silence Atlas’ speech and imperil its business, unless this court declares that prosecuting Atlas for publishing without” label approval “violates Atlas’ First Amendment rights and the rights of its customers,” according to Atlas. US Dist Ct recently approved time extension, filed for gov’t by US Atty Genl Bill Barr (who may have one or two other things he’s working on at the moment).

Late last week, the Pennsylvania General Assembly passed the brewery-backed bill to lower the tax burden on taproom sales, set to take effect this week. Recall, Brewers of Pennsy (BOP) pushed back against proposal to officially apply state’s 6% sales tax to sales of every pint at a brewery taproom. It supported legislation to reduce that tax to just 6% on a quarter of the retail price in attempt to create more parity between taxes paid by traditional wholesalers (see June 19 issue). BOP expects PA Gov to sign bill, it wrote late last week. Meanwhile, Maine Governor signed franchise reform bill, creating carve out for brewers under 30K bbls and less than 3% of a distribs biz, and Connecticut Gov signed bill making a number of changes to state alc bev code, including raising cap on amount of beer breweries can sell directly to visitors for off-premise consumption (see May 31 issue for details on both bills).

Founded by wife and husband biz partners Carolyn and David Marquis in 2008, Chesapeake Brewing refocused on its brewpub restaurant and catering biz after moving to current Annapolis, MD location 3 yrs ago. Now the couple hopes to retire, looking for buyers of the beer brand, small brewing equipment, license, etc for just under a half-million $$, Baltimore Biz Journal reports. Separate owners of building where Chesapeake operates also willing to sell property, boosting price to $2.6 mil. Co sells just a couple hundred bbls per yr, according to Brewers Assn stats, on small 1.5-bbl system. And tho it initially had some volume out in distribution, pub biz kept the couple busy, tho they avoided building out bigger facility, choosing instead to focus on the restaurant. They still see “huge demand” for brand, should new owners choose to expand production, Carolyn told paper.