Beer Marketer's Insights

Beer Marketer's Insights

As fall price increases were implemented, total beer $$ sales jumped nearly 4% as direct result for latest 1-wk thru Oct 9 in IRI multi-outlet + convenience data. Avg price/case saw unprecedented 7.3%, near $2/case increase to $29.22 total. Yet craft beer pricing % gains lagged all other segments even as avg prices were up 5.1% to $41.82/case for period. Each other segment saw prices rise 5.5% or more, including 10% increase on non-alc beer, +9% on subpremiums, 7.6% jump for premium, 7% gains for both cider and FMBs and 6% increase on imports. So craft $$ still down 2% and shed 0.6 share of total beer for latest 1-wk as price increases kicked in. (Editor's note: perhaps more higher-priced craft NAs, led by Athletic, got into fall shelf sets, adding to non-alc beer's top price increase for the week).

The Lion's Bay guy now is running the marketer of lion's mane mushroom shakes. Vancouver-based Rritual Superfoods said it's installed Nathan Nowak as ceo and board member, onboarding an exec whose Lions Bay Holdings VC firm specializes on ag investments. He fills void left by departure, for unstated reasons, of former ceo Warren Spence, who remains on board. "Having spent the past 14 years successfully developing and commercializing early-stage companies, I'm looking forward to leveraging my experience in this new role with Rritual," per statement from Nowak. Unusually for investor or endorser, Nathan isn't claiming to have been a years-long consumer of the superfood shakes. Just a few weeks, he said. "I've been taking Rritual products every day for the past few weeks, Lions Mane when I wake up and Chaga in the evening," he reported. "I believe there's a tremendous opportunity for this Company to reach consumers seeking premium functional products which promote a healthy lifestyle."

Glow Beverages, broad-ranging line that we'd profiled 3 years back (BBI, Nov 8 2019), finally is ready to make its entrance, with new twist of adding entertainment personality and cosmetics entrepreneur Kylie Jenner and Cowboys QB Dak Prescott as investors/endorsers. Line created in Inland Empire east of LA by John Larson and Kev Kouyoumjian is debuting now in white-bottle Hydration subline and black-bottle Energy subline with range of herbs, antioxidants, vitamins, zinc and other minerals, and functional ingredients like prickly pear and milk thistle. The energy subline employs vitamin B12 and green coffee bean extract to offer the lift. Both are being offered in 6-flavor range of Spicy Watermelon, Mango Apricot, Ginger Lemon, Cherry Lime, Pineapple Blood Orange and Tiger's Blood and come in at less than 15 calories per bottle. Also in mix is Ultra Smooth Alkaline Water, with pH over 9 and deep-sea minerals, and zero-sugar caffeinated 2-oz Glow Energy Shots. It's breaking as DTC line via website and Bay Area Costco stores have taken on the alkaline entries. Co cites commitments from likes of Walmart, Ralph's (Kroger), 7-Eleven and Albertsons for next spring.

Seven of top 10 growth brands in craft segment are either high ABV (8% or above) or no-alc. By far the biggest growth brand is New Belgium's Voodoo Ranger Juice Force, which sold almost 1 mil cases, $42.9 mil worth of beer in Nielsen thru 10/1, according to data from Bump Williams Consulting reported by our sibling letter Insights Express. Juice Force already largest craft brand launch ever in scan data. On other end of alc spectrum, Athletic Brewing has 2 of top 10 growth brands in craft, #6 Run Wild up $6.2 mil, +86%, and #9 Upside Dawn up $4.9 mil, +110%. Other top craft growth brands that fit high-ABV bill: Goose Tropical Beer Hug, Bell's Hopslam and Sierra's Big Little Thing. This bifurcation happening in craft for better part of 2 yrs. New Belgium leads craft gainers, up $51 mil ($43 mil Juice Force) and Athletic again #2, up $16.8 mil, 110%. Anheuser-Busch-owned Goose Island #3 gainer, up $5.7 mil, 10%, with all its growth and more from Beer Hug family.

Natl Grocers Assn, which reps indie grocers, is among voices clamoring for feds to bar merger of Kroger and Albertsons. "A merger would not only put smaller competitors at an unfair disadvantage, but also increase anticompetitive buyer power over grocery suppliers, which ultimately would harm consumers," per statement issued in name of prexy/ceo Greg Ferrara. "It is our expectation that this deal will receive rigorous scrutiny from federal antitrust enforcers." The opposition is no surprise given NGA's testimony in Apr in response to outreach for comment on merger enforcement. It had earlier enshrined its views on negative effects of big-buyer power in white paper issued in Mar 2021. Among the victims of that concentration, per white paper, are suppliers as a big grocer is able to "use its bargaining leverage to secure subcompetitive prices from its suppliers—i.e., prices or terms below those that would exist in a competitive market—or impose discriminatory terms on the purchaser's rivals—i.e., obtain price or supply concessions that are not available to its competitors."

BioSteel adopts dramatic cinema verite approach for new 30-second TV ad heralding its sponsorship of NHL and league's player association, offering glimpse of seemingly overheard tactical discussion among rival players who're drinking from BioSteel's distinctive Tetra Pak cartons ahead of getting hustled out onto the ice by their coaches. Execution from LA-based agency The Many features such key endorsers as Edmonton Oilers' Connor McDavid, Colorado Avalanche's Cale Makar, Buffalo Sabres' Owen Power and Florida Panthers' Aaron Ekblad, speaking in barely audible shorthand amid echoey noise of loud arena. "Makar is looking fake shot back door, huh?" says McDavid. On opposite bench, Makar says: "Man, we gotta gap up on McDavid." Makar teammate is heard saying, "Yeah, we gotta push him to the other side." Makar, referring to McDavid: "He's back out there, 97's back out there!" "Yeah, let's go." Coach: "Cale . . . get out there, set a gap." Ad launched last week on ESPN to herald its inaugural season as league's official hydration partner, Sports Biz Jnl reported. In diverse touch, "Hydrating the next generation of athletes" tagline is voiced by female player at end. In keeping with approach, none of stars is identified by name aside from clues offered in terse conversations.

Hop WTR canned sparkler continues to build out its base in large-format retailers, adding select Target stores, going chainwide at Wegmans and entering such new banners as Albertsons' Acme unit and Kroger's Harris Teeter unit. (Kroger's Ralphs banner in SoCal was early to carry brand.) Current focus is on expanding distribution in natural and conventional grocers along with liquor package stores, drilling down into West Coast, Northeast and West Coast markets, with some tentacles into Midwest too. Thanks to investment and distribution tie to Constellation Brands, Hop WTR is able to ride so-called Gold Network of beer distributors, including Manhattan Beer in NY, where we encountered founders Nick Taranto and Jordan Bass and distributor team at sampling event last week at Upper West Side location of Boisson, the fast-expanding alc-alternative retailer that recently pulled in $12 mil and is expanding into on-premise side of biz (BBI, Aug 4).

Avg price hikes still the story in non-alc bevs. Pricing up double-digits in CSDs, bottled waters, sports drinks, RTD teas, sparkling and still waters, and just missed in energy segment with 9.7% gain for 4 wks thru Oct 8 in NielsenIQ data reported by Goldman Sachs' Bonnie Herzog. Both energy and bottled waters managed to grow volume despite their soaring prices. So . . . elasticity?!

The 2022 Beer Insights Seminar is coming right up. Join us for this premier beer biz event, less than 1 month away. It starts with a reception on Sunday, November 13th and the program is all day Monday, November 14th. You'll benefit from presentations and discussions with top industry execs like Boston Beer's Jim Koch, Molson Coors' Brian Feiro, AB's Kyle Norrington, Constellation's Jim Sabia, BMI's Benj Steinman, plus in-depth panels on The Evolution & Future of Beer & Beverage Distribution and Reflections from Economists & Beer Industry Experts. Newly added: BMI's Christopher Shepard will present an informative summary of latest consumption trends & key policy issues facing the US beer industry. Space is limited -

Next round of Bud Light marketing has seemingly begun this NFL season as new 15-second ad was peppered thruout NFL programming in recent weeks. Ad features famed Hot Chocolate song, "You Sexy Thing," highlighting a product-centric shot of Bud Light poured into a glass with theme of "easy." (No link to ad currently available.) This is a noticeable change from recent yrs, when you'd be harder pressed to find an individual Bud Light ad showing up at this frequency on natl TV. New Mich Ultra spot was featured frequently thruout NFL Sunday as well. Recall, AB officially appointed Anomaly as new ad agency for Bud Light in late Aug and co's planning to ramp up Bud Light spend by 5X in 2023. Tho this new 15-second spot is still from work done prior to Anomaly, INSIGHTS understands.