An increasing number of retailers using Drizly delivery service view craft beer (and wine) as "poised for a comeback," according to Drizly 2022 Retail Report. "Retailers are bullish" on craft beer, "with 35% of respondents citing craft beer as the top trending adult beverage category for 2023" (our emphasis), wrote Drizly. That's sharply different from current scan trends, perhaps a function of Drizly retailer universe that tilts toward indie liquor stores. Another difference from reports of chain resets: nearly 60% of respondents singled out IPA for planned "additional cooler and shelf space next year," and nearly 40% adding space for seasonals. IPAs actually lost 1% of share on Drizly platforms for 12 mos, but could be gearing up to gain some of that back. Plus, "locally made products" are still #1 attribute for retailers in determining how to stock their shelves.

MC’s Tenth & Blake consistently hitting its craft mandate to “grow faster than the category,” as co gearing up to place sizable bet on Saint Archer Gold in 2020 at levels unmatched by other craft brewers (outside of Sam Adams), Tenth & Blake prexy Pete Marino shared with distribs at MC’s NBWA meeting. This yr Terrapin, Hop Valley, Saint Archer, Revolver (and AC Golden) collectively up 12% thru Aug 31 in Nielsen while accelerating more recently to +15% for latest 13 wks, +18% for 4 wks and +19% for Labor Day period, Pete rattled off. Part of that jolt was from test of Saint Archer Gold, along with Terrapin picking up steam and Revolver rebounding lately, separate IRI data suggests. Net-net, MC craft expects to sell near 4 mil cases (nearly 290K bbls) all-channel this yr with its acquired craft brands plus AC Golden, and “would represent a top-20 craft brewer” in volume, Pete added. And next yr co plans to “solidify our place as a leader in craft” thru brand building, innovation and “disciplined” and “smart” expansion with its acquired partners.

$30 Mil on Saint Archer Gold; “Ultimate Light Lager” Descriptor; More “Lifestyle” Bev Innovations to Come? But biggest MC acquired craft bet in 2020 by far is for Saint Archer Gold natl rollout. Brand will get $30 mil mktg budget with mix of TV, digital, out of home and more, aiming to “establish” brand as “the Ultimate Light Beer.” MC looking to further separate this brand from any “craft beer” cues as well. On top of pricing in line with Mich Ultra (~$26/case) and shelf placement next to Mich Ultra, co will change packaging to say “Ultimate Light Beer,” replacing “Light Craft Lager” descriptor it had initially. There will be no bottles, only 6- and 12-pk slim cans, plus 16oz cans and draft. Again, co believes this brand can resonate more with younger LDA consumers, while Mich Ultra core consumers are typically 35+, according to MC. There will be chain execution plans to drive feature and display activity, as well as emphasis on sampling program. Ultimately, co feels Saint Archer “has built a brand that opens the doors for many ideas in the lifestyle beverage innovation spaces,” Pete hinted, adding that “this space holds great potential for Saint Archer and you’ll hear more from us over the next year.”

Terrapin/High Life Collab, Revolver Mexican Lager, Hop Valley Imperial IPA Pk & More MC also showcased a handful of new brands and expansions thruout the rest of its craft portfolio. Revolver will launch Mi Cheve, a “sessionable” Mexican-style lager, along with “much more innovation” at its new brewpub coming on line at Texas Live in Arlington. Hop Valley will add Imperial IPA variety pack “appropriately named Adios Muchachos,” he shared. Recall, its Stash Pack of IPAs is #1 new above premium pack in PacNW this yr. Plus, Hop Valley will keep utilizing “competitive advantage” with cryo hop innovation, including Bubble Stash, Cryo Stash “and much more to come,” sez Pete.  Terrapin will have “steady stream of innovation” including Hoppin’ Bubbly collab with Miller High Life, initially tested in Wisc and GA, available thruout its footprint next year. And Saint Archer “delivering meaningful organic growth” even excluding Gold, including Hazy IPA, Mexican Lager, Tropical IPA, and 50/50 12pk.

Low-Cal Blue Moon Brand, LightSky Launching Next Yr Separately, Blue Moon and Leinenkugel will add some interesting new innovations riffing off of trendy “better-for-you” attributes. Blue Moon LightSky is “new light and refreshing citrus wheat beer” with just 95 calories at 4% ABV, CMO Michelle St Jacques shared, adding that co’s “betting big on it in 2020.” And Leinenkugel will launch Leinie Spritzen (German word for “splash”), which combines beer with “splash of refreshing hard seltzer,” clocking in at just 4.2% ABV and 93 calories. MC will also look to “simplify” the Leinie portfolio at same time, reducing SKU count by 12 and “adding a stronger seasonal rotation that reduces the churn,” she added. While Blue Moon brand family has improved trend thruout this yr, Leinie continues to decline tuff double-digits. Collectively, Blue Moon and Leinenkugel declines outweigh MC acquired craft gains this yr. But Blue Moon showing positive signs, its Mango Wheat continues to grow following last yr’s launch, and co ramping up marketing spend with natl media campaign currently running. Stay tuned.

ME's Lone Pine Brewing won this yr's NBWA distrib partner of the year award as co moved into new production facilty, switched from self dist model and ultimately will grow volume 10x in just the last 2 yrs, co shared. Recall, Lone Pine posted 5th fastest growth trend among all BA-defined craft brewers in 2018; it grew 365% to 6,700 bbls last year after moving into Sebago Brewing's prior facility in Gorham. And Lone Pine expects to hit 13K bbls this year. Indeed, Lone Pine founders thanked their distrib partners, especially their local partner Nappi Dist, acknowledging that while trying "to imitate" what distribs do they "learned very quickly that it's not easy" and "for us we have a profound respect for what you guys do." Ultimately distribs "only build our brand and make us better."

Since breaking ground on big new brewery in Richmond, VA in 2016, Stone grew that state into its #2 mkt behind California, CEO Dominic Engels explained to Richmond Biz Sense recently. Over 100K bbls/yr are coming from the facility for second yr running (expected ~125K bbls in 2018, see CBN vol 9, no 83). And the double IPA brand Stone first brewed there, Fear.Movie.Lions, is now the co's top brand by velocity across the US. It hasn't all been smooth sailing for Stone in VA, tho, as the building where it planned to put the newest location for sprawling World Bistro & Gardens restaurant turned out to be in worse shape than expected. Stone's "still working on" plans for that location, "in the design process right now," including meetings with Richmond officials, Dominic shared. But with $700K "invested" in the restaurant location, "we're not just going to walk away from that," he assured. "It's an incredible piece of property, it will be developed and it will be amazing for the city of Richmond. I know it," he said. The combo of that investment and the rise of VA to Stone's #2 mkt creates a mighty incentive to get it right, in short.

First new market for Narragansett brand since launch in Atlanta in Aug 2018 and it's a biggie. Ohio will start seeing 'Gansett flagship lager starting next Monday, Sep 30, CEO Mark Hellendrung shared with CBN. Del's franchise of shandies will debut in market next spring. Co went statewide with Cavalier as Mark's been in touch with founder Goerge Fisher "for several years," he shared, adding that he has "a ton of respect for what [George's] team does with a great craft portfolio." Ohio's been "#1 most requested market on our social media channels," Mark pointed out too. Perhaps no surprise as Ohio is top-10 US beer market with total beer shipments at 7.5 mil bbls in 2018, just behind PA and ahead of NC. That opens up quite the potential for 'Gansett thru Q4 of 2019 and most of 2020. Recall, co posted 6% shipments gain thru 1st half in current territory (see Jun 28 issue). And since co still brews most of its volume at FIFCO's Western NY plant, its beer won't even travel very far to hit OH.

Lotsa action these days among small craft brewers, as another couple deals and closings were announced. Sometimes the two go hand in hand, and each instance (below) involves young cos less than 5 years in biz.

Just 8 mos after Other Half hired ex-New Belgium brewer Eric Salazar to run their future barrel-aging and sour facility in East Bloomfield, NY, Eric is no longer with the company, both sides confirmed with Rochester Democrat & Chronicle earlier this week. Recall, Eric reached out to Other Half after reading about its plans to open separate sour and barrel-aging brewery after purchasing former Nedloh Brewing campus and "discussions progressed quickly," leading Eric to leave NBB "in the beginning of 2019," Eric initially told paper (see Feb 21 issue).

CT's Two Roads issued "voluntary product withdrawal" of Lil Heaven and Lil Juicy beers that were canned between Aug 21 and Sep 14 "that have unpleasant taste and aroma," co announced. Affected brews "have a noticeable sulfur-like aroma, and in the case of Lil' Heaven, may have an unusual hazy appearance." Variety pks including those beers will also be pulled. While "there are no health or safety risks involved with the consumption of this beer," Two Roads is moving quickly with distrib network and retailers to "remove all questionable beer," and offering consumers in possession of affected packages full refunds.