Beer Marketer's Insights

Beer Marketer's Insights

Bear Republic is closing its Rohnert Park brewpub until at least Spring 2023 to avoid operating at a loss during slower winter mos amid tuff mkt conditions, reported Press Democrat. With rising costs and slower traffic in Sonoma County post-pandemic, Bear Republic "already cut back its operating hours and experimented away from the traditional waitstaff model." But "a slower winter season would put the brewpub in the red," article underscored. "I just don't know how survivable it is under its current format," CEO Richard Norgrove told paper. "That's where we needed to make some changes. I mean we're just not making money," he said bluntly. Other breweries in the area are closing and/or reassessing operations, particularly when it comes to food offerings, Press Democrat also highlighted. Another established local, Russian River, altered operations to not serve food on Monday and Tuesday, and "I wouldn't be surprised if we had to make some adjustments in the future," co-owner and CEO Natalie Cilurzo stated. Other cos are more frequently lookin' at alternatives like food trucks and renting the kitchen out, or becoming more entertainment-oriented, article added.

MI's Eastern Market Brewing is on the rise and lookin' to raise $1 mil in Series A round to fuel next phase of growth, Craft Brewing Business reported. So far it raised $551K from 172 investors (at presstime), asking for minimum of $500 per investor, according to Mainvest crowdfunding page. Recall, Eastern Market is a small self-distributed MI brewer that bought former Axle Brewing and ROAK facilities as turnkey operations, started its own donut brand, acquired a coffee co and managed to snag position as Detroit Pistons' official craft beer partner in late 2021. So Eastern Market clearly lookin' at all kinds of oppys for growth.

Cleveland, Ohio-based Saucy Brew Works acquired fellow OH craft co Cartridge Brewing in deal announced late last wk for an undisclosed sum. Saucy will take over Cartridge's brewpub in Maineville, "located in the historic Peters Cartridge Factory" and equipped with a 15-bbl system, per release. It marks Saucy's 6th overall spot, joining 4 others in Ohio and 1 in Detroit.

Catawba's former Morganton, NC taproom will soon have new owners. After parent co Made By The Water opted to close the location following merger with NOLA's Faubourg Brewing, NC craft co Hillman Beer confirmed it'll move into Catawba's old space and is "in the process of purchasing" the location, The News Herald reports. It'll mark Hillman's 3rd outpost, along with existing in-state brewpubs in Asheville and Old Fort. Hillman aims to close on the purchase in Q1 2023 and start renovations early next yr, with anticipated completion toward end of '23 or early '24. But co will operate a temporary taproom across the street in the meantime, said co-owner Greig Hillman (who owns the brewery along with his wife, Brandi and brother, Brad).

Monster-owned Oskar Blues facility in Brevard, NC expects to produce 180K bbls in 2022 while employing 105 workers in the area as co celebrates its 10th year at the facility, reported Hendersonville Lightening. That's up significantly from 46K bbls in its first year of operations, 2013. Recall, CANarchy expanded the Brevard facility in early 2021, adding 30K sq-ft section (to nearly 100K sq-ft total), more capacity, and 10 full-time positions. But Brevard production this yr is flattish vs 2020 and number of jobs slightly down from 115 total at that time. While CANarchy's hard seltzer sales declined significantly, leaving co with plenty of excess capacity, that's seemingly coming in handy as Monster readies its launch of The Beast Unleashed FMB. Tho in the meantime, total CANarchy sales continue to decline at tuff double-digit rate in scans this yr; $$ down 16%, volume -21% YTD thru Oct 30. Brevard now producing over 40% of CANarchy volume, CBN figures.

Craft beer $$ slipped 3% and volume -8% for latest 4 wks thru Nov 27. So craft shed 0.8 share of total beer $$ to 11 total for period. Avg price per case for craft segment continues to rise at slowest rate among all beer segments in IRI MULC, up 5%. All other segments' prices up at least ~7% per case (superpremium, imports and hard seltzer). And mainstream prices rising at ~2x the pace, including subpremium up 11% and premium up 9% on avg. Yet craft still up $2/case to $42.35 for 4 wks, slightly widening gap on a $$-per-case basis vs premium, subpremium and superpremium segments, at $24.32, $19.11 and $30.40 respectively.

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More strong results from a top spirits co, go figure. Brown-Forman revs grew 11% in US thru fiscal 1st half ending Oct, co reported. Net revs also up 11% globally thru 6 mos, leading co to raise full-year guidance. Growth in US driven by "volumetric gains, favorable mix, and higher pricing across the portfolio," it highlighted, pointing specifically to continued growth of Woodford Reserve and Jack Daniel's Tennessee Whiskey. Brown-Forman's 19% increase on ad spending globally was "driven by increased investment" in US, co added. Then too, Brown-Forman RTD portfolio up 14% globally thru 1st half. Recall, Jack & Coke RTDs launched in Mexico in Nov and hits US plus Canada and parts of Europe in 2023 along with new zero-sugar version. So no impact on fiscal 1st half trends.

This wk, judge at US Dist Ct in NY tossed proposed class action lawsuit filed against Boston Beer and 3 execs late last yr, alleging false and misleading statements that artificially inflated stock price before tumble in fall 2021. Ain't enough there there, judge determined, agreeing with Boston that plaintiffs failed to show how a series of statements by execs materially misrepresented facts. Decision provides plenty of useful reminders about investment risks, broadly, and the importance of cautionary language around forward-looking statements.

Tho ABI hauled in multiple mktg awards this yr, "the next frontier, the next challenge that we're putting to ourselves, is to become best in class in digital integration," global cmo Marcel Marcondes told Adweek. ABI named Creative Marketer of the Year at Cannes, top advertiser by mktg intelligence firm WARC and most effective marketer by Effie Worldwide. But as mktg becomes more about efficiency, co's main mktg priority is strengthening digital operations, article notes.