Beer Marketer's Insights

Beer Marketer's Insights

Final results of Colorado elections, including on 3 alcohol-related ballot measures, came in just before Thanksgiving holiday. Failure of 2 other proposals had been clear since shortly after the election. But took 'til the very end to call tight race on proposal to sell wine in grocery & convenience stores. By margin of just 1.2 pts, just 28,211 votes out of over 2.4 mil, that proposal passed, Colorado Sun reported. Those votes largely showed up in and around Denver, the paper showed. Indie liquor stores opposed the measure, concerned that the change will cut into their biz the same way that allowing grocery and c-stores to sell "strong beer" (over 3.2% alc by weight) did. Just over 1,800 stores can currently sell "strong beer" and come March 1 will be able to sell wine as well, the Sun notes.

Yes, the TTB will review alc bev labeling rules, bringing particular attention to alcohol & nutritional content, allergens and ingredients, the agency confirmed in letter to CSPI earlier this mo. Acknowledgment followed fed suit filed against TTB by CSPI and 2 other consumer advocacy groups in Oct, urging formal response to a 2003 petition. Granting that petition, TTB now clarifies that it will propose draft rules on alcohol & nutritional content and on allergens, while beginning a potentially longer rulemaking process on ingredients.

Concerns about entry of non-alc players into alc bevs, including over potential to attract underage drinkers, so far mostly coming from within the industry, where competitive angles also in play. But public health voices may be clearing their throats, gearing up for further action. "We're already concerned about what the traditional alcohol industry is producing, and now we're concerned about a whole new set of products from a new market," chair of US Alcohol Policy Alliance, Alicia Sparks, told Pluribus News (new state-focused publication founded by set of vets from The Hill).

Strikingly upbeat JP Morgan report jumps rating 2 levels, straight from "underweight" to "overweight" (basically "sell" to "buy"). And ABI stock popped 4% this morn (since pulled back to +3%). "We now see scope for earnings outperformance, and a rapidly deleveraging balance sheet provides optionality," wrote JP Morgan's Jared Dinges and team. While ABI "best known for extracting synergies and efficient operations," he continued, "ABI's transition to a higher quality growth story is well underway." JP Morgan "has increased confidence in top line delivery… supported by sustainable LatAm momentum" and "upside" in US and China. Heretofore little remarked upon, ABI stock is up by nearly 30% in last 2 mos, tho still less than half its peak value. Its mkt cap back to $118 billion.

Boston Beer released its inaugural ESG (Environmental, Social, Governance) report late last wk, highlighting some of the strides it's made in its early efforts. "While we have previously disclosed our sustainability information through other channels, this report represents our first stand-alone document" dedicated to ESG impacts and initiatives, per CEO Dave Burwick. "We are expanding our disclosures because we recognize that ESG creates long-term value for our company and that it is paramount to communicate how it positions us for sustainable growth."

The industry shifts more marketing dollars to digital spaces year after year at the same time those spaces change shape and the activity they host evolves. That both increases the need for and challenges the establishment of clear guidance on how alcohol marketers should go about marketing alcohol digitally. Late last wk, 8 yrs after its previous guidance on social media marketing, the (apparently very busy) TTB took another stab at it with publication of its 2nd industry circular of the yr.

11/23/2022

Correction:

It has come to our attention that our November 18, 2022 piece regarding Hint Water contained statements regarding Kara and Theo Goldin which are inaccurate and/or misleading. First, while Ms. Goldin does maintain a strong media following, she has not used her media access to criticize or berate Hint, nor has she been involved in company drama since leaving her position. Additionally, while we characterized her media activities as focused on women, her focus is more broadly on entrepreneurship. Lastly, Kara and Theo were not removed from their executive positions by a shareholder vote. They continue to be Hint's largest individual shareholders and remain active on the board. BBI apologizes for any errors and inaccuracies in our report.

During a long holiday weekend, some people like to disconnect from the bev biz, some people like to catch up on their bev reading and some don't have time to think about these choices because they're busy getting cases to stores. For those seeking a leisurely bev-related viewing experience, a new Netflix series called Pepsi, Where's My Jet? has gotten unusual perfect 10 Rotten Tomatoes rating. The "absurdly addictive" show "tells the true story of John Leonard, a college student who ended up battling PepsiCo in court over the company's Pepsi Stuff commercial, which promised you could exchange Pepsi Points for certain rewards," as GameRadar summarized. "One in particular caught Leonard's eye: a Harrier jet valued at 7 million Pepsi Points. Though PepsiCo said the jet's inclusion was a joke, the ad didn't feature any disclaimer. Leonard set out to get the jet, ultimately spending $700,000 on Pepsi Points (with the help of his wealthy friend Todd Hoffman)." Pepsi's flaw? "Arrogance, a stance that no one would possibly try to trade points for a fighter jet," said Decider's Joel Keller. "But you knew that someone was going to try to take advantage of Pepsi's mistakes."

Even as it motors forward with innovation in its core line, cold-brew coffee co Rise Brewing continues to experiment with image-enhancing collabs with alcohol players that can boost the intrigue of their core ingredient in off- and on-premise roles. The latest up from the Conn-based co are partnerships with a pair of New England spirits makers as well as a national marketing partnership with Pernod Ricard and its Absolut Vodka and Kahlua brands. So Rise has got several bases covered during vogue for coffee-based cocktails. Cofounder Jarrett McGovern and sales mgr Eric Anderson walked us thru these initiatives during a Mon visit to NY.

Déjà vu all over again? After possible rail strikes in Sep and subsequent tentative agreement, a lockout is once again looming. One of the country's largest railroad unions narrowly voted to reject the collective bargaining agreement brokered by the White House, "moving one step closer to a crippling freight rail strike that appeared averted two months ago," wrote USA Today. While 8 of 12 unions ratified the deal, all 12 must accept the proposed contract. And despite agreement previously "winning the endorsements of the unions' leaders, their members must vote to approve the deal for it to become final." Status quo contract is in place thru Dec 8 cooling-off period. But recall that Congress has the power to intervene and set a contract if no resolution is reached. A White House official noted that the "the best option is still for the parties to resolve this themselves," tho reiterated that a rail shutdown is "unacceptable." Standoff has come just as bevco execs are reporting easing of some logistics bottlenecks in areas like ocean freight.