Beer Marketer's Insights

Beer Marketer's Insights

No other source follows beer biz lawsuits, alcohol policy issues and big picture consumption shifts like Beer Marketer's Insights. Get the lay of the land on these crucial topics during an up-tempo presentation by BMI senior editor Christopher Shepard at the Beer Insights Seminar in NYC, Nov 13-14. Check out the rest of our jam-packed agenda and register today for an insightful day of learning and reconnecting.

No shortage of twists and turns in ongoing dispute pitting various members of Sheehan family, their companies, counsel, directors and trustees against each other. Claims at issue before MA Superior Ct ballooned throughout 2022, including countersuit filed by eldest Sheehan children, Margaret and Susan, against their brothers Tim, John and Chris (as we wrote in extensive update for sibling pub Beer Marketer's INSIGHTS in late Sep, vol 53, no 17; see brief recap below). Yet various Sheehan Family Companies (SFCs) keep operating. And family explored sales of its cos in whole or parts. These legal disputes weigh on that process and price.

With Netflix's new ad-supported tier available to US consumers starting tomorrow, Nov 3, the first beer ads to debut on the platform will be from Anheuser-Busch, co announced today. Consumers who choose ad-supported option will see two :15 spots from Mich ULTRA called H.O.R.S.E. and Last 100M, plus the :30 Easy to Enjoy ad from Bud Light "later in the rotation." Both brands will run "current creative" as AB aims to adapt its playbook to reach "the right people, in the right place, with the right brand messages." (Recall, this Bud Light ad created prior to appointment of Anomaly, as brand ramps up work with its new agency.) Co's "thrilled to deepen our partnership with Netflix as we continue to find new ways to enhance the consumer experience with our brands in the entertainment space," said Spencer Gordon, veep of connections and draftLine at AB. Molson Coors will also be running ads on Netflix starting tomorrow, a spokesperson confirmed to AdAge.

Following mixed results in which Molson Coors mostly reiterated full-yr guidance, analysts still have their doubts heading into Q4. Yr-to-date performance "leaves a high hurdle" for the final qtr, wrote JP Morgan's Andrea Teixeira, implying Q4 pre-tax income growth of roughly 48%, by her math. That'd be about 11% above Q4 2019 vs YTD trend "~18% below 2019." So "execution risk" remains even after MC narrowed FY earnings to low end of guidance (high-single-digit % growth for full yr), she figures.

Much buzzed about RTD spirits category continues to post strong growth in scans this yr. Sales grew nearly 56% to $984 mil at avg price per 9L case of $72.29 yr-to-date thru Oct 22 in Nielsen xAOC + liquor + convenience data shared by Bump Williams Consulting. Yet it remains just under 13% of broader alc bev RTDs including malt/sugar hard seltzers and FMBs. Collectively those 3 categories grew 4% to $7.66 bil YTD. Malt/sugar hard seltzers' 10% decline to $3.5 bil wipes out FMBs' 13% growth to $3.1 bil. But spirit-based RTDs put broader category back in black for the yr. In more recent periods, FMBs are larger than hard seltzers.

Another sizable non-alc bevco has partnered with top brewer to launch alc bev innovation. Anheuser-Busch has partnered with Novamex, parent co Jarritos Mexican-made sodas, to create Cantaritos Hard Soda, "a new-to-world alcohol brand that takes inspiration from favorite Jarritos soda flavors." Cantaritos will take aim at the growing lower-ABV flavored malt bev (FMB) segment, which has grown 56% to $2.2 bil for latest 52 wks thru Oct 16, while targeting fast-growing Hispanic demographic. It clocks in at 5% ABV, available in 12-pk bottle variety pks, 6-pk bottles and 25-oz cans of Mandarin and Pineapple flavors; variety pack is fleshed out with Fruit Punch and Tamarind flavors.

A plan by TikTok to create its own fulfillment centers to handle brands that blow out via their influencers' activities has sent shock of surprise - and not a little skepticism - rippling thru ecomm and CPG worlds. The scheme seems to have been first spotted by Axios last month thanks to help-wanted ads that social media player had begun to post, and idea seems to be to close the loop on brands that "go on TikTok, have a 'viral' moment, sell out of inventory, and then get handcuffed with their supply chain and are unable to produce or fulfill new orders at a rapid pace," posted JT Barnett, a TikTok advisor to CPG brands, who readily allowed that development "blew my mind." "With TikTok getting into this, they could have companies running their entire product stack on TikTok, from the marketing all the way down to the fulfillment."

Montreal-based Buddha Brands said it's pulled in $5.25 mil (US) Series A round led by Fondaction, a labor-led fund that seeks to boost companies that create jobs in Quebec. The raise will be used to support new innovation and intensified US push for maker of plant-based bevs and snacks, including Thirsty Buddha still and sparkling coconut waters and Hungry Buddha nutrition bars. A decade old now, company employs 21 and claims over 5,000 store doors in US and Canada, including Loblaws, Metro, Sobeys and Costco. Stifel GMP acted as financial advisor to Buddha Brands. Fondaction's other CPG investments include Rise Kombucha and Bad Monkey Popcorn . . . Refrigerated-food distributor Lipari, which has built solid book of bev brands in recent years, has been acquired by investor group led by PE house Littlejohn & Co. Lipari family, management team headed by ceo Thom Lipari and prior investors HIG Capital, and Sterling Investment Partners all will remain in the mix as minority investors. Terms weren't divulged. Based in Warren, Mich, Lipari reaches 7,500 specialty grocers and has been building its base of conventional grocers and c-stores, now at over 2,000 doors. Tho its book is weighted toward deli, bakery, frozen food and seafood items, it has built presence in bevs given dearth of refrigerated options, counting brands like 8th Continent, A2 Milk and GuS craft soda. Over past coupla years, Lipari itself had been on acquisition tear, picking up distributors in NY/NJ, Minn and Mich.

"Non-alc bev sales remained robust as pricing growth offset slightly lower volumes," wrote Goldman Sachs' Bonnie Herzog, reporting on latest NielsenIQ scanner trends for 4 wks thru Oct 22. Once again avg price increases were up double-digits in every NA bev segment except energy drinks, which just missed at +9.7% but made up for that by posting a volume gain too. That's more than any other segment could claim in period.

Time is running out to join us for this year's Beer Insights Seminar, coming right up 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. And don't delay: discounted rooms at the nearby Muse Hotel will only be available thru end of day today. Book a room and