Beer Marketer's Insights
What does it take to successfully operate emerging bevco that's entering prime growth phase? At BevNet Live conference last week, Waterloo Sparkling Water ceo Jason Shiver offered intriguing account of seemingly random formative experiences - from fistfights in store aisles to deep analytics dive - that together laid groundwork for his so-far-successful role at Austin-based co, where he keeps assortment tight, builds marketing effort via test & learn approach and wields nimbleness and experience of team vs DSD entries that piled into category from Coke, Pepsi and KDP.
Ghost Energy Drinks "Deceptively Marketed to Kids," Sez Truth in Advtg; Complaint Sent to FTC, FDA
Truth in Advertising (TINA.org) and UConn's Rudd Center for Food Policy & Health filed complaint today with both the Federal Trade Commission and Food and Drug Admin regarding Ghost Energy. The orgs charged that Ghost is "unfairly and deceptively marketing adult energy drinks and supplements to children in violation" of FTC and FDA law. Complaint urged agencies to take "enforcement action." Ghost is "using candy brands popular among children…to flavor and package energy drinks and supplements that are only intended for adults," according to TINA.
Tho abrupt policy reversal threw Budweiser's World Cup plans into disarray, ABI "remade its marketing strategy in real time" to "salvage" its sponsorship, NY Times wrote yesterday. Actual beer sales at the tournament were "just a tiny portion of what Budweiser expected to get out of its sponsorship deal," article reminds. The brand "remains a presence at the World Cup, albeit in a watered-down way," with stadiums "awash in stacks" of Bud Zero. And "bathed in red and white," the W hotel in Doha is so decked out in Bud branding that it "has the feel of a giant beer can."
Japanese beer & bev giant Asahi is setting up investment firm in Bay Area that will target $70 mil over next 3 years to invest in promising US startups, particularly low- and no-alcohol bevs. SF-based Asahi Group Beverages & Innovation LLC will manage the fund, dubbed Asahi Group Beverages & Innovation Fund, starting next month, seeking promising entries in categories of low-alc bevs, non-alc "beer-taste" bevs and "adult soft drinks." Also in purview will be sales and mfg tech. Recall, Asahi already voiced plans to make "full-scale entry into the North American beer market," Reuters reported last Aug, speaking with ceo Atsushi Katsuki (see Aug 18 issue). This investment firm appears to be next small step toward that goal. And Asahi reportedly also in hunt for bigger US beer assets.
Modelo Chelada Limon Y Sal keeps crankin' into another gear this year, fueled by new 12pks. Sales more than doubled YTD thru Dec 3 in NielsenIQ data, becoming a top-10 growth brand by $$ and volume. Sales accelerated considerably in recent periods. Limon Y Sal grew more than 100 pts faster in latest 4 wks vs YTD with $$ up 235% and volume +230% for latest period. So Limon Y Sal gained 0.2 share of beer $$ for latest 4 wks vs +0.15 share YTD. Slightly larger than Twisted Tea Original $$ share gains for 4 wks and YTD in NielsenIQ channels, even as Twisted Tea Original kept up 20%-plus growth pace.
Molson Coors Pullin' Away as Largest $$ Gainer in IRI Foodstores This Yr; Still Soft in C-Stores
Nearly 11 full mos in, Molson Coors is the largest $$ growth company in tracked grocery channel nationally, and it's not even close. Remarkably, MC $$ grew 3%, $66 mil YTD thru Nov 27 in IRI foodstores as total beer $$ dipped nearly 2%. So MC snagged a whopping 0.9 share of total beer $$. Nearly double the size of next biggest gainer in foodstores, Constellation, which grew 2.5%, $34.7 mil, grabbing additional 0.5 share of beer $$. MC gains accelerated in latest periods amid fall price increases too; $$ grew 6.5% and grabbed 1 full share for latest 4 wks. Volume still down 3% for 4 wks and YTD in foodstores, but outpacing total beer and posting #1 volume share gain for the yr as well.
ICYMI (In Case You Missed It)
- Sazerac leapt to #18 beer supplier by $$ for latest 12 wks thru Nov 27 in IRI MULC with its malt-based offerings. And NBB’s Juice Force became #1 innovation in all of beer for the period.
- World Health Organization announced program in partnership with exec branch of the European Union, planning to spend €10 mil “to increase awareness among the public and policy-makers of the links between alcohol consumption and cancer risks.”
- Domestic taxpaid bbls shipments dropped 5.3%, -728K bbls in Oct, BI estimates. Total domestic brewer shipments declined 4%, shedding 5.8 mil bbls thru 10 mos. Down nearly 3% vs 2019 levels too.
- Brooklyn Brewery’s on track to recover majority of ~100K bbls it lost from 2019-2020, with low double-digit growth in US and int’l mkts up 40-45% this yr. It’ll open new HQ in Brooklyn by 2024.
- Subpremiums showed best short-term share gains in decades, +0.4 $$ share with sales up 10.2% for 4 wks thru Nov 12 in NielsenIQ data, riding 11% price increase.
Coors Light and Heineken were ranked #1 and #3 respectively in AdAge's list of top out-of-home innovations for 2022. Coors Light's "clever environmental campaign" involved brand "painting white murals on top of black rooftops" at a complex in Miami. Doing so reduced temps substantially for residents without air conditioning. In addition, "Coors Light also gave away 5,000 gallons of reflective paint to Miami residents to continue cooling." Pretty cool. In Heineken's "The Closer" campaign, co "positioned itself as the beer brand that helps you take a break from tech, social media and overwork," wrote mag. To get message across, Heineken sought out office windows of late-night workers in New York City and projected message next to those windows with tagline in green reading: "Overworking, The Closer can help."
AB's Beyond Beer is $1 bil unit, about 7% of AB revs, led by prexy Fabricio Zonzini, who spoke at Beverage Digest's Future Smarts earlier this week. There he detailed about a half dozen initiatives still active at the unit (including RTDs, energy drinks, seltzers and FMBs), acknowledged that Beyond Beer looks at everything "from water to whiskey." And yet "the largest and toughest part of my job is focus," he said, as he's presented with so many potential opportunities. How do you choose?
Brown-Forman talked up prospects of spirit-based RTDs and perceived big oppy with Jack & Coke RTDs on co's fiscal Q2 conference call. In addition to Brown-Forman M&A in spirits, "we're developing significant relationships that we believe can propel our growth," such as global agreement with Coca-Cola for Jack & Coke canned cocktails, said ceo Lawson Whiting. "The opportunity for the Jack Daniel's and Coca-Cola RTD is significant, and we believe this will meaningfully expand the growth of both of our businesses," he added. "Jack and Cola brand is something that we very much believe in as a long-term play …with a really nice growth" oppy. And "Coca-Cola is a wonderful company to work with because of the global reach of their bottling network and the strength of the iconic brands standing together beside ours." Recall, in CA at least, Jack & Coke RTDs will be sold thru Reyes Beer Div next yr (see Oct 31 issue), but Reyes also happens to be biggest Coke bottler in the country. "We'll be launching in the first half of 2023 in the U.S.," noted Lawson.