Beer Marketer's Insights

Beer Marketer's Insights

Jim Prevor's world didn't much overlap with ours at BBI, but the produce expert's business views were so astute that they helped inform our coverage and we occasionally picked up his words directly, as with his dazzling exposition of the multitudinous ways that Fresh & Easy fumbled the ball on its push into US back in the mid-teens. And NY Produce Show he launched could yield a bounty of insight into innovation among its refrigerated-bev exhibitors before they hit larger platforms like Expo West. But Jim's journey has sadly come to an end after he was stricken with heart attack and stroke at age 61, Produce Business announced today. From a produce-growing family, Jim founded Produce Business mag just a coupla years out of Cornell Univ, where he won national debate competition, and went on to found Deli Business, Cheese Connoisseur, Floral Business and PerishableNews.com. In 2010 he launched NY Produce Show & Conference as first recurring produce industry event to take place in Big Apple. Hosted with Eastern Produce Council, it's now largest fixed-site fresh produce trade show in North America and has spawned offshoots in London and Amsterdam. Upcoming NY Produce Show "will continue as scheduled in Manhattan this coming Nov 29 - Dec 2, with a special tribute to Jim's tremendous contributions to the industry," Produce Biz assured today.

Married to an Austrian by birth, immigration attorney Melissa Martinelli first encountered whey-&-fruit bevs while hiking there, in a concession hut near top of mountain. Her husband had grown up drinking brands like Lattella, and she liked the nutritional heft and sweet-&-sour palate of the drink. Back in Boston, the couple would make their own and "Americanize" it with sparkling water (tho a Swiss company called Rivella produces a sparkling whey drink). Would concept fly in the States as a commercial proposition? "It sounds really gross if you frame it in the wrong way," Melissa allowed to us in interview recently. But a local test in 2019 drew great market feedback and she decided to go ahead.

Joey Nickell, who just departed senior position at Bang Energy marketer VPX Sports, has hung out his shingle as Spyte Holdings, seeking to parlay his data-driven expertise into broad consulting roles for early-stage CPG brands while also scouting investment opportunities for pair of unidentified groups that are backing venture. Initial investment post for 2023 is $20 mil. We'd reported last week that Nickell, who ran national sales at Bang, had decided to move on but were unable to reach him for further details, and Spyte Holdings website had not yet gone live (BBI, Nov 2). In discussion today, Nickell, 35, said he's drawing on experience gleaned from prior roles as Kroger category mgr for Coca-Cola and stints at NielsenIQ to offer sophisticated guidance on pricing, distribution and distribution issues that can derail early-stage brand. Ohio-based exec said venture is backed by pair of PE groups, one led by longtime energy trader (as in oil & gas, not Bang, he stressed) and the other by the daughter of influential retailing family that have been looking for Sherpa to guide them in CPG investments. So Nickell's activities at Spyte and web of contacts should serve to unlock opportunities at companies generating $10 mil or less in revenues. He'll be plying categories like snacks, bevs and personal care, usually with health & wellness tilt. He may stray into bev alcohol but that's not a focus. To get the work done, he's initially drawing on network of 20 or so veterans of cos like Nielsen and Body Armor.

Inevitable permutations of non-alc beers are arriving thick and fast as that category develops faster than most anticipated. From husband-&-wife partnership of Gofredy Salazar and Diana Cruz in Miami comes Mexican-style lager under Katrina brand, named for La Catrina skull icon associated with Day of the Dead celebration. Breaking next month to Calif shoppers visiting www.katrinabrewing.com, in time for Dry January, will be Mexican Lager and chelada-inspired Lime & Sea Salt. They were developed over a year and a half and brewed in Baja California part of Mexico using local ingredients, Gofredy told us. They will go out in 12-oz slim cans priced at $12.99 per 4-pk. Team is pitching Calif retailers for their spring resets, with Texas also on radar, and are about to start recruiting beer houses to carry it. Co's first capital round is under way, too, to tune of $1 mil. Gofredy is a Loblaw and Safeway vet while Diana worked at Kraft and Mondelez; together they operate Gourmetti Brands that's been involved with brands like TeaAloe, among other entries. Of course, bigger NA brewers like Athletic already have Mexican-style lagers in the mix.

Without PepsiCo's coattails to ride any more, Bang Energy has had to rethink its overseas strategy just as it's had to do on domestic front. Today it announced move into UK and Ireland via exclusive tie to Global Brands Ltd, indie house that distributes alc and NA brands like VK, Hooch, Franklin & Sons, Shake Baby Shake, Hooper's and, judging by website, Pepsi's Kickstart energy line. In announcement, founder/ceo Jack Owoc (listed as "front person") described deal as part of shift back to "decentralized distribution" from "former archaic centralized distribution system." We didn't immediately hear back from co as to whether it had previous partner in UK, but it likely wasn't substantial judging by Reddit thread from a year ago in which poster proclaims, "My gf finally found me a bang energy in UK, was deffo worth the wait." (Pic shows Power Punch flavor in same 16-oz can as in US.)

11/08/2022

Correction:

Although these brands were listed on the Sheehan Family Cos website yesterday, turns out Craft Maine no longer sells Firestone Walker, Bells, Bold Rock, Wachusett, Founders or Stone, which either moved or left the mkt. Craft Maine is “mostly comprised of more local brands,” said source, including Maine Beer Co, Orono, Oxbow, Banded Brewing, Bunker Brewing and others. That’s in addition to natl brands like Lagunitas, CANarchy, ABV (ex-Bold Rock).  

    

Slowing core spirits trends in tracked channels over last few months signal a shift, but how big? Key to this question is that reported spirits gains lately driven by cocktails/RTDs. For 3 mos to Sep, spirits volumes up just 0.2% in NABCA-tracked control states, Bernstein analysts Trevor Stirling and Nadine Sarwat wrote this wk. Volume up similar 0.4% in Nielsen for 12 wks to Oct 8 after removing RTDs. Scanned spirits volume growth near 10% during the period is "skewed by the exceptional growth of pre-mixed cocktails, which are lower ABV and higher total volume, but come at a much lower price point," Bernstein reminds. In fact, pull 'em out of 3-mo NABCA data and volume in those states down 1.4%, report shows.

ABI's grappling with sponsorship for a month-long party they're not exactly welcome at. That's World Cup 2022 in Qatar, where officials in host country "came close to barring alcohol from the tournament events entirely," reported Bloomberg. Given Qatar's strict alc consumption restrictions, at World Cup, beer will only be sold "inside the stadium perimeter" in designated areas, for 3 hours before and 1 hour after matches, but won't be supplied or allowed to be consumed in stands. Offsite alcohol is only avail at approved bars and restaurants. "Stocking up" for start of World Cup on Nov 20, "has been a monumental undertaking," for ABI, which "expects more beer will be consumed during the tournament than would typically happen during an entire year in the country," ABI chief supply officer Peter Kraemer told Bloomberg.

Over 20 yrs since their last revision, updated federal trade practice rules are coming. Sometime next year. Or the year after that. At least, they "might" be. Tomorrow, the TTB will publish an advance notice of proposed rulemaking seeking public comment on trade practice regulations, including rules prohibiting exclusive outlets, tied houses, commercial bribery and consignment sales. Its request for comments covers the gamut, according to early version available thru the Federal Register.

Avg beer prices up around 8% as revs up 4% and volume down 4% for 1 week thru Oct 30 in IRI multi-outlet + convenience. Spirits revs up just 2% as volume up 4% (rapid growth of lower-priced RTDs has big effect). Wine $$ down 2%, volume down 6%. So for 2d week in a row, beer gained share of $$ vs both spirits and wine. Molson Coors revs up 4.7%, while volume down 4.4%, implying 9% avg pricing increase, best rate among top-10 suppliers. Constellation once again up strong with $$ up 15%, volume up 9%. Much better pricing than its guidance implies. Both New Belgium and Geloso also grew $$ double digits.