Beer Marketer's Insights
Dallas Cowboys' DeMarcus Lawrence is face of team foraying beer-alternative called DrinkSip that's breaking with Hazy IPA and "fruit-forward wheat-based option" called Watermelon Refresher. "DrinkSip encourages consumers to indulge in these products like how they usually drink their beer, whether they sip, gulp or shotgun their cans," per marketing copy. Pkg sports whimsical characters and fonts a bit reminiscent of Ugly Water and carries messages such as "Live, Laugh, Drink, Sip" and "Hangovers Suck." They go for $16.99 per 6-pk on DrinkSip.com and will launch in local retailers in coming months. Of course Lawrence is following in footsteps of another Cowboy to enter biz beer biz, Hall of Famer Troy Aikman with Eight Elite Light Lager on alc side . . . San Diego-based Drink Monday, which started with a non-alc gin and has since branched out to whiskey and mezcal entries, has set a deal with Anthropologie that will see entire range available on lifestyle retailer's DTC platform. Founder/ceo Chris Boyd heralded alliance as advancing "a notable ongoing priority item for the business: being able to go where traditional beverage alcohol cannot." Brand is making headway in bricks & mortar channel too, going chainwide at Hy-Vee grocery chain (240 stores), bringing footprint to 750 doors across US . . . Proxies wine-alternative brand is entering sparkling segment in time for holiday occasions with trio of items that, like core line, offer layered blends of wine grapes, fruit, teas and spices rather than dealcoholizing wine. Fizz is targeted for hearty holiday fare with base of green apple, kiwi and green tea augmented with wormwood and rosemary. Rosé-like Glow aims at seafood eating occasions and after dinner drinks with Riesling, strawberry and sumac. And Sparkle is a robust Lambrusco-style bubbly. They're not cheap: a gift pack of 1 bottle each of core 3 still bevs and 3 new sparklers commands $164.
NA brands continue to flock to perceived opportunities of spiked extension - even ones like Tampico with heavy demo of kid users. Partner of Tampico Beverages in effort is COOP Beverage Works, which earlier partnered with Sonic drive-in operator on Sonic-branded hard seltzer, sweet tea and slush. The wholly owned unit of Oklahoma City-based COOP Ale Works has struck multi-year licensing deal with Tampico Beverages to produce Tampico-branded hard punch flavored malt bevs (FMBs), co announced. Line is due early next year in time for spring resets, starting with Citrus (orange, tangerine & lemon) and Island (pineapple, banana & orange) flavors that mimic Tampico's best-selling NA offerings. Both clock in at 8% ABV and will be go out in 4-pks of 12-oz slim cans and 24-oz singles via COOP's distrib network spanning 41 states with particular focus on heavily Hispanic metros where core brand thrives. Exec assured our sibling letter Insights Express that co was "very intentional" about differentiating "adult-only" packaging . . . Body Fortress, the purveyor of protein powders, is entering the pre-workout market with entry called Body Fortress Elite Laser Start Pre-Workout Powder, which meldsZümXR caffeine, beta-alanine and electrolytes, in Fruit Punch flavor in packages good for 30 servings. Body Fortress is in stable of supplement player 1440 Brands, which also markets Met-Rx and Pure Protein nutrition bars . . . SunOpta has restaged its acquired Dream Ricemilk, which offer the 5 key nutrients of calcium, vitamins D, A and B12 and riboflavin in 32-oz shelf-stable packs priced at $4.29. The organic line is offered in 2% Fat and Whole versions, with 5 g and 8 g of fat, respectively. They're out in retailers like Whole Foods, New Seasons and Shop Rite.
Two congresswomen from opposite coasts sent joint letter to alc regulator TTB requesting that "new entrants into the alcohol industry - namely large soft drink corporations - comply with the same regulations that existing alcohol manufacturers, distributors and retailers already abide by," per accompanying press release (tho letter dates back to last month). In their note, Linda Sánchez (D-Calif) and Ann McLane Kuster (D-NH) ask for written replies on how TTB will ensure evenly enforced regulations to protect industry integrity. And while they commend TTB for "keeping pace with rapidly evolving developments" in alc bevs, the congresswomen add that should soft drink cos be allowed to sell both alc and NA products "in the same store, we would like to obtain a clear understanding how TTB plans to manage this complex regulatory situation." Our sibling publication Insights Express reported on this letter.
Specifically, letter asks what TTB is doing to:
- Prevent soft drink cos and other new entrants "from circumventing prohibitions on unfair trade practices, including by leveraging slotting fees to retailers" for their NA bevs to gain "preferential treatment for their alcoholic products."
- Enforce ban on providing "items of value (such as equipment, free product, etc.)" to retailers in instances where soft drink cos are "selling alcohol to the very same retailers to whom they provide, at no cost, soft drink versions of such items of value."
- Apply ban on alc producers conducting cooperative advertising with retailers (displays, in store tastings) in cases where soft drink cos already run cooperative campaigns for NA products.
- Address consumer confusion between alc and NA versions.
Authors also want to know if TTB is communicating with FTC and state alc regulators about these issues. And if so, "how are those interactions organized and managed" and "what actions are anticipated?" Many new alc industry entrants enjoy widespread recognition "among all age groups for their household brands," letter notes. But they gained it "without the complex regulatory structure that makers of alcoholic beverages must comply with," including "one particular beverage with significant if not primary appeal to consumers under the age of 21." (And that's before Tampico entered alc space! See below.) Tho these politicians claim a "shared commitment to support this thriving and dynamic sector," they add that entrance of bev cos into alcohol presents "a critical question for federal regulators and their ability to respond and continue to prioritize the safety of consumers."
The 26-year vet Henrique Braun just got a big bump in responsibility at Coca-Cola, getting named to newly created role of prexy of int'l development. That role now has him overseeing 7 operating units spanning dozens of countries. He's well-traveled exec who's had posts in Europe, Asia Pacific and Latin America, where he's been prexy since 2020. "Henrique's work to digitize our business and lead a consumer-centric team makes him an ideal fit for a new, broader role," said ceo James Quincey, who narrows range of direct reports with Braun's ascension. In his new role he gets oversight of LatAm biz, as well as Japan & South Korea; ASEAN & South Pacific; Greater China & Mongolia; Africa; India & Southwest Asia, and Eurasia & Middle East, whose leaders now all report to him rather than Quincey. His successor running LatAm unit has not yet been named.
Forager's Fund Gets Its $20 Mil: Truesdell, Bonnar Win Commitments for True Fare Partners
Funding rounds may be harder to get done during current uncertain times, but money seems to keep pouring into coffers of private-equity players seeking to do those deals. Today, former Whole Foods forager Ellie Truesdell said her New Fare Partners VC has closed on the $20 mil in funding commitments it had been seeking to back efforts to support early-stage food/bevcos. Investors in female-led firm include celeb chef Bobby Flay, a partner of Truesdell and her New Fare cofounder Hallie Bonnar on Made by Nacho cat food brand, as well as flock of names familiar to those who've played in natural food space: former Whole Foods co-ceo Walter Robb, Tate's Bakeshop founder Kathleen King, Stonyfield Organic founder Gary Hirshberg, Orgain founder Andrew Abraham, Magic Spoon founder Gabi Lewis, former Earthbound Organic ceo Charlie Sweat, and Whipstitch Capital cofounder/managing director Nick McCoy. Also in mix is David Barber, partner at Astanor Ventures, co-owner/founder of Blue Hill and Almanac VC fund. Truesdell and Bonnar told TechCrunch they're aiming to make 16-20 investments from this first fund, with 8 already in bag from early money to come in. These include Made by Nacho, Foxtrot Market c-store chain, Tacombi restaurant chain & CPG player and functional chocolate bar Mid-Day Squares. Website shows 7 of them, all on food side so far. By standards of a PowerPlant, which recently closed on $330 mil fund (BBI, Sep 12), this is small potatoes but it gets new player off to brisk start at challenging time.
Folo Up:
Turns out Thanksgiving Eve wasn't such a stinker after all. BeerBoard issued correction that draft volume was actually up 45% on Nov 23 compared to the previous Wed night. It was originally reported to be a 2.3% decline. Draft was still down 17% vs Thanksgiving Eve yr ago.
Count another licensing deal done for COOP Beverage Works. But after launching a trio of Sonic-branded hard bevs (seltzer, sweet tea and slush), this time the wholly owned subsidiary of Oklahoma City-based COOP Ale Works will bring on a new partner. It struck multi-yr licensing agreement with Tampico Beverages, "one of the world's leading manufacturers and marketers of high‐quality and value‐added juice drinks and juice drink concentrates," to produce Tampico-branded hard punch FMBs, co announced today.
Modelo Cheladas rolled out about 10 yrs ago, at time when Especial was around 50 mil cases and already on an "incredible run of double-digit growth," reminded Modelo's brand mktg veep Greg Gallagher at Brewbound Live today. But a decade later, as Especial keeps truckin' along as the top growth brand in the industry, Modelo Cheladas are up "almost 50%" this yr and "a rocket ship" as well, he added.(Editor's note: we estimate Cheladas finished 2021 close to 900K bbls.)
Kroger, Albertsons CEOs Defend $25-Bil Deal to Senate Subcommittee, But Skepticism Persists
Lawmakers on the Senate antitrust subcommittee grilled execs from major grocery chains Kroger and Albertsons during hearing yesterday, seeking assurances that their proposed $24.6-bil merger will not lessen competition, lead to higher prices or negatively impact workers. Kroger ceo Rodney McMullen insisted the deal will lead to "zero" store closures and no layoffs, Winsight Grocery Business reported. Deal is "best way to compete with megastores like Walmart and highly capitalized online companies like Amazon," Albertsons ceo Vivek Sankaran said. Yet outcomes of past deals weighed heavily on lawmakers' minds. And testimony from an analyst and a smaller grocer suggested skepticism, while union workers urged regulators to block the deal.
Below Premium Starting to "Have a Real Moment," Sez Nielsen's Jon Berg; Expect Less Spirits Growth
Panel at Brewbound Live hit several industry hot buttons, including recent growth of subpremiums, slowdown of spirits and more. Panel featured Beer Inst's veep of research Danelle Kosmal, Danny Brager of Brager Bev Alc consulting and NielsenIQ veep of Alcohol Industry Thought Leadership Jon Berg. "We are starting to see below premium have a real moment," said Jon, pointing to double-digit $$ growth for 4 weeks in NielsenIQ data, 7% for 13 weeks, 5.5% for 26 weeks, compared to down 1% for 52 weeks. In terms of beer biz depletions, economy segment's share of volume down 0.7 yr-to-date thru Oct, said Danelle. But down just 0.3 for 3 mos.

