Beer Marketer's Insights

Beer Marketer's Insights

Golden Grail, a small-cap rollup play in bevs, said it's named Stoli Vodka and Gruppo Campari vet Lindsay Eshelman as coo last month, reporting to ceo Steve Hoffman. Based in Weston, Fla, GOGY has assembled portfolio comprised of Spider Energy Drink, Trevi Fruit Essence Water, Tickle Water, Sketch Can, Cause Water, Koz Water and CBD brand Scorpion Energy . . . Flow Beverage said board member Ann Tracy, whose ESG expertise helped usher co to B Corp certification, stepped down yesterday "in order to fulfill other career obligations related to ESG."

How's Coke system in US faring during current period of intensifying inflation on product, labor and logistics fronts? Pair of publicly traded Coke bottlers offered a glimpse in past few days. Latin American giant Arca Continental, which operates big swath of territory in SW region of US, reported that net sales in its fiscal first qtr rose 15% to 17.43 mil pesos (US $887 mil). On volume side, a 1% decline in colas to 47.1 mil cases was offset by 5.5% growth in flavored CSDs to 27.2 mil cases, leaving sparkling up 1.3% to 74.4 mil cases. On noncarb side, packaged water sagged 7% to 11.5 mil cases but other noncarbs (including energy drinks, which KO system classes as noncarbs) rose 5.6% to 15.5 mil cases, leaving noncarbs up overall. Net price rose 13.6% via rate increase of 10.4% and mix impact of 3.2%. Volume growth was driven mainly by recovery of on-premise channel and large-format retailers, up 13% and 1.1%, respectively, Arca reported. That on-premise recovery drove single-serve packs up 1.3%.

Ball Corp cited slackening consumer demand for inflation-hit bevs in reporting slight Q3 sales and earnings miss, but said fundamentals behind aluminum cans' growth haven't changed and customers' accelerating promotional activities might provide near-term life. In Q3, net sales rose 11.2% to $3.95 bil. Earnings before interest & taxes, essentially operating earnings, rose 19.7% to $523 mil. In North & Central America bev packaging unit, sales rose 18% to $1.8 bil on 2.5% volume gain, with a lift from contractual pass-thru of higher aluminum costs. Operating earnings rose 10% to $205 mil as higher volumes offset higher manufacturing and inflationary costs and "unfavorable customer mix."

Time is running out to join us for this year's Beer Insights Seminar, less than two weeks from today on Monday, Nov 14 in midtown NYC. Our stellar agenda features a line-up of top industry execs and thought leaders. Learn the latest industry insights, dig deeper into hot topics during in-depth discussions and reconnect with other beer biz movers and shakers. Register for this year's Seminar today!

This week in 1987, there was a sense of solidarity among Fla distribs at unusual state mtg after getting an "extremely controversial" franchise bill passed earlier in yr, wrote INSIGHTS. Most AB distribs had dropped out of assn to form their own. Then Miller sales veep Tom Koehler wrote Fla assn exec Buddy Gridley that he would not participate in convention because, "we are unwilling to support state wholesaler groups that deem it necessary to unilaterally alter the business relationship we have sought to create, by passing such 'protectionist' legislation." At mtg, NBWA prexy Ron Sarasin praised Buddy: "I'm so proud of this man" and called passage of bill "an almost impossible feat" and "absolutely spectacular." While Miller Brewing didn't show, INSIGHTS noted most Miller distribs in Fla participated. Peter Coors flew in too. Coors sales veep Gary Truitt told INSIGHTS that while Coors also objected to some aspects of Fla franchise law as "unilateral and unfair," he added, "The Florida situation is done. We can't forsake our business relationships. If we have a problem with our wholesalers, we have to sit down and work it out together."

Ball Corp cited slackening consumer demand for inflation-hit bevs in reporting slight Q3 sales and earnings miss, but said fundamentals behind aluminum cans' growth haven't changed and retailers' accelerating promotional activities might provide near-term life. In Q3, net sales rose 11.2% to $3.95 bil. EBIT rose 19.7% to $523 mil. In North & Central America bev packaging unit, sales rose 18% to $1.8 bil on 2.5% volume gain, with a lift from contractual pass-thru of higher aluminum costs. Operating earnings rose 10% to $205 mil as higher volumes offset higher manufacturing and inflationary costs and "unfavorable customer mix."

Tho liquor lobbyists claimed reduced tax rates on spirits-based RTDs would benefit consumers by lowering prices, new report from Lansing, MI-based Public Sector Consultants shows quite the opposite. In May 2021, Michigan lowered tax rate on spirits RTDs by 37.5% while Nebraska cut RTD taxes by nearly 75%, report reminds. But since then, consumers "are not benefitting from lower prices in either state," including "dramatic" RTD price hikes of 44% in MI and 65% in NE since legislation passed.

Imports popped in Sep, super-charged by Mexican imports. Total imports grew 10%, nearly 350K bbls for the mo, according to data from Beer Inst report and US dept of commerce. Mexico made up all that growth and more as Mexican shipments soared up 19%, 470K bbls for the mo. Puts Mexican imports up 10%, 2.3 mil bbls YTD thru Sep. And all other imports down 19%, 1.7 mil bbls. Ireland is the only other top import country growin' solidly YTD, +7% to 890K bbls. Dutch imports down low-singles YTD. Canadian and German imports down low-double-digits. And Belgium continues to be a major drag on import trends, down 85% and shedding nearly 900K bbls YTD thru Sep as Stella Artois production shifted to US. Net-net, total imports +1.8% yr-to-date thru Sep, up 588K bbls. Suggests total US shipments improved to down 2.7% YTD. Still shed nearly 4.3 mil bbls for the year. This Q4 is off to a tuff start (on volume), INSIGHTS hears, but $$ sales may be a different story as price increases kick in.

Time is running out to join us for this year's Beer Insights Seminar, less than two weeks from today on Monday, Nov 14 in midtown NYC. Our stellar agenda features a line-up of top industry execs and thought leaders. Learn the latest industry insights, dig deeper into hot topics during in-depth discussions and reconnect with other beer biz movers and shakers. Register for this year's Seminar today!

An improperly structured tip pool at a St Louis-based craft brewer's taproom and separate beer garden location led to a cascade of alleged federal labor law violations, according to complaint filed by feds last wk. Since at least Feb 2020, Rockwell Beer Co included its hospitality mgr in its tip pool for bartenders, US Dept of Labor explains in complaint filed in Missouri District Ct. But that salaried employee ineligible to be part of the tip pool, leading to a variety of violations, feds allege.