Beer Marketer's Insights

Beer Marketer's Insights

Industry self-regulation may not perfectly prevent all teenagers from seeing alcohol ads, but a study from the UK's independent advertising regulator suggests alcohol marketers are doing much better than folks in the gambling biz. The Advertising Standards Authority followed the digital activity of 97 11-17 yr olds for 7 days this spring, monitoring the ads they were served on websites and 4 social media platforms (Facebook, Instagram, Twitter, YouTube). In all, ASA tracked 11,424 impressions (an average of only about 17 ad views per kid per day).

A majority of American adults do not associate various types of alcohol with an increased risk of cancer, a new study published by the American Assn of Cancer Research confirmed. Folks are most likely to associate liquor and least likely to associate wine with cancer. And younger adults are much more likely than older adults to be aware of the link, according to the assn's summary of the research.

"Alcoholism has soared," Politico kicked off edition of its Future Pulse newsletter this wk, pointing to that (uncited) pandemic impact as well as the broadly-reported sharp increase in alcohol-related deaths. So the authors' stance is clear even before they turn to brief interview with Democratic representative from RI, Patrick Kennedy about alcohol policy. First question: "is expanded alcohol delivery having an effect on alcohol abuse in the US?"

Just Ice Tea, has launched nationally within Whole Foods, marking return of Honest Tea founders Seth Goldman and Barry Nalebuff to tea sections in chain that helped birth their earlier entry. The 6-flavor line had broken in Sprouts Farmers Market earlier this fall. "For more than 20 years, Whole Foods has always been an incredible and powerful partner - they bring scale and credibility to any brand they get behind," Seth posted . . . the natural grocery chain also has gone chainwide with another craft tea: Seven Teas said WFM has picked up its canned Georgia Peach Iced Tea, Rojo Raspberry Iced Tea, Golden Honey Green Tea and Maui Mango Green Tea entries globally, for over 550 stores . . . Liquid Death has entered all Kroger banners nationally . . . Fiji Kava said its recently acquired Leilo canned line will win national presence in Vitamin Shoppe chain next April . . . Alkaline Water Co said its Alkaline88 Sport hydration line has entered 250+ Harris Teeter grocers spanning 7 South Atlantic states and DC. Retailer has picked up all 4 flavors of line that employs Vessl's FreshCap to infuse ingredient bill of electrolytes, guarana, ginseng, and vitamins B-12, B-6, B-5, and B-3 into liquid at time of consumption . . . De Soi, NA sparkling apéritifs founded by Katy Perry and master distiller Morgan McLachlan (BBI, Jan 6), has entered Gold Coast Distributors in NY and its affiliated Empire City Brand Builders arm, with view to building presence in Brooklyn, Manhattan and Queens . . . Chlorophyll Water has entered all 10 locations of Jensen's Finest Foods in Calif.

SunOpta is sticking with soy in the recipe - but not the name - of its acquired Westsoy brand, now rebranded as West Life and heralding its new identity with entry into smoothie segment. New line of 16 g Protein Smoothie Blends offers soy-based protein and 9 essential amino acids in Chocolate and Unsweetened Plain flavors at retailers like Whole Foods and Shop Rite. SunOpta, whose trading symbol on Toronto exchange still is SOY, has been pushing heavily into more robust almondmilk and oatmilk sectors. So it's pursuing a balancing act with investors not to be typecast as playing in soy sector that's rapidly losing share within plantmilks. "While the name has changed, the same enthusiasm for plant-based innovation that pioneered the creation of the brand 35 years ago is still at the center of its products and mission," per SunOpta svp/gm Mike Buick. Recall that SunOpta purchased Dream and Westsoy brands from Hain Celestial for $30 mil a year and a half ago, with Dream clearly the prize in deal (BBI, Apr 16 2021). Still, it noted at time that WestSoy was only branded shelf-stable soy bev with USDA organic certification and American Heart Assn certification as heart-healthy item. And it had head start on rejiggering brand by virtue of having been copacker for full range of its products. Recognizing that smoothies are one of top uses of plantmilks, SOY set right to work to develop the line, Buick noted, Obviously, name change opens door to playing in other plantmilk segments, too, alongside Dream, Sown and other marques.

Thoughtful, detailed report on NA beer prospects from Consumer Edge's Brett Cooper shows wide competitive variations by state, premiumization as the driver of growth, and continued upside to segment for many reasons (Brett lists 10 "structural supports"). NA beer is "seeing outsized growth with outlook supported by consumer and industry factors," as Brett headlined. Segment has a 3-yr CAGR in mid-20s. "Premiumization has been a big driver of the accelerated growth in the segment," per Brett. Above-premium NAs up roughly 30 share compared to 5 yrs ago. Higher-priced non-alc beer "has accounted for 60% of total" NA growth in period and was just 8 share of NA "at outset of the period."

That could be the plan, with Evercore ISI's Robert Ottenstein assessing that recent moves by Coca-Cola, including cutting its brand roster by half, has "cleared the deck so that the System can focus on scaled global bets" as it works towards goal of doubling its consumer base in next 10 yrs. "In our meetings with management earlier this month, the firm suggested it would keep its eyes open for something 'bigger' and 'transformative.' Why not alcohol?" wrote Robert. Alc space "is a clear area" that would help KO achieve its goal of doubling consumer base. KO's global mission now is providing "Beverages for Life," and KO shifted its mktg "emphasis from more consumption by the same consumer to bringing in more consumers to the Coca-Cola family and driving value realization." Alc entries can help fulfill those goals. Robert sees 3 "enabling developments/actions" that pave way for KO to "participate more actively" in alc space: For starters, increased "consumer interest in alcoholic RTDs provides KO with a clear opening." Also, "digital B2B technologies smooth the way for better execution" while "new bottler arrangements improve alignment" for KO.

The current crop of small-cap bev rollup players like to keep the announcements coming on latest additions to portfolio to build excitement and win investment, but from outside it can be hard to discern what's going on below the surface. Case in point: announcement today by Golden Grail that it's picked up Sway Energy brand that was core item for another rollup, privately held Sway Energy Corp. Deal continues Golden Grail's rapid accumulation of non-alc brands, including Spider Energy Drink, but leaves Sway Energy Corp a bit misnamed after its rebranding earlier this year from Elegance Brands to flag its commitment to energy line. Sway founder/ceo Raj Beri told us Sway is continuing with vodka & coconut water RTD called Voco, Bittertales bitters and Gorilla Hemp entries. "The company also has developed some new brands which it is considering commercializing," he said via email today.

This week in 1991, Heileman Brewing was thrown a life jacket as bankruptcy judge approved its reorganization plan, noting it "certainly appears to be in the best interest of all parties." He called plan going forward "feasible" and could start in short order. "Tho some $800 mil in claims are still outstanding," noted INSIGHTS, judge felt most were duplicative or without merit. The "amount of claims surprised everyone," said judge, but he thought some claimants were "drinking your product when they filed," adding, "some people just file claims in every case, and hope that Santa Claus will come." In 1994, Hicks Muse bought Heileman before selling rights to Stroh two years later.

M&A mkt tends to move in cycles and right now we're in a cycle where (supplier) buyers are "all being very selective," said Arlington Capital's Ryan Lake at Brewbound Live. That's for economic reasons as well as lack of clarity on mkt trends, among other factors, after some deals "didn't work out as well as they'd hoped," Ryan said diplomatically. When it comes to 4th category brands and cos especially, we're still "learning in real time" how willing strategic suppliers are to be buyers in that space vs creating in-house innovation. Across all beverage segments, large strategic cos are "weighing their options" and investing in different ways, whether it's full acquisition, JVs and licensing deals, or in-house innovation and line extension. And some strategics "will choose" one of those lanes, while others will choose a "combination," Ryan thought. But many indie beyond-beer cos are just a few years old and buyers wanna avoid "making the wrong bets too early."