Beer Marketer's Insights

Beer Marketer's Insights

Cold-brew co Rise Brewing launched a Barista extension of its oatmilk line offering home chefs a chance at same microfoam effect as café technicians. It's line-priced with other oatmilks. In its RTD coffee range it also offered a Salted Caramel extension that contains just 12 g of sugar (120 calories) per 7-oz can in contrast to some far more caloric rivals. Recall that Rise is coming off capital round that we now hear may have reached $10 mil, with Meritage leading the cap table (BBI, Sep 13) . . . Aura Bora, which just pulled in significant capital round (BBI, Sep 21), launched a Chai Cranberry flavor as it continues to build out retail footprint, including such recent partners as Safeway's Portland and Intermountain stores, Vons Pavilions' arm in SoCal and Sprouts nationally. Another Kroger arm, King Sooper, comes

"Happy healthy soda." That's key prong for relaunch of My Muse brand, recent platform created by serial entrepreneur Lance Collins that found itself back in the shop after indifferent reception to launch last year (BBI, Mar 15 2021). Packed in 12-oz slim can, the "inspired soda," as some of the can copy puts it, offers more robust-tasting, functional alternative to flavored seltzers with just a modest hit of sugar. It contains coconut water, the adaptogens ashwagandha and panax ginseng and host of vitamins but just 5 g of sugar (25 calories) via sweetener mix of cane sugar and stevia. It joins a lately tweaked enhanced water that was part of initial launch and has had its sweetener toned down a bit, but the iced teas that comprised the other arm are gone, at least for now. Execs at booth said the soda prototypes had been pulled together hastily for show, with the cans wrapped just the prior Fri so Collins would have something to show at NACS, somewhat to surprise of his team. Revamped line will comprise 5 canned sodas in flavors like Watermelon and 4 bottled waters. The sodas' SRP is $2.49, with initial focus out west and Sprouts a key retail target. Recall that My Muse initially had launched at longtime Collins consigliere Big Geyser (BBI, May 18 2021). Lance, the entrepreneur behind brands like Fuze Tea, NOS Energy, Body Armor, Core Water and Zen WTR, had flagged development of sodas this past spring, then revealed that he'd be dropping the teas (BBI, Mar 31 and Jun 6). At one time it was intended to go into Molson Coors beer network but any concerted such effort likely will wait until all kinks have been ironed out.

"Don't give up on us." That in essence was message from Tilray chmn/ceo Irwin Simon on Fri as cannabis player with outsize ambitions disappointed Wall Street with $65.8 mil net loss (Canadian) on $153.2 mil in net revenue. With US legalization proceeding at snail's pace - despite what Simon acknowledged were mainly "symbolic" remarks from President Biden last week urging declassification as Schedule 1 drug - Tilray strategy continues to be to build out other businesses that could be platform for intensified cannabis push once legalization happens. That implies further M&A, as with co's acquisitions of SweetWater Brewing, hemp marketer Manitoba Harvest and Breckenridge distillery. "The plan is very much been laid out," said Simon, who'd long led a acquisitive Hain Celestial prior to move into cannabiz. "We have a strong spirits business. We have a strong beer business, and we have a good foothold in the wellness business with Manitoba Harvest, continuous focus on growing those businesses. And with that, look at other acquisitions out there within the spirits in the wellness business or in the beer business with adjacency to cannabis."

So far, so good. That was word from Celsius brass at NACS as it moves to onboard PepsiCo as its new distribution partner after fractious relationship PEP had with Bang. In the meantime, it's continuing to do what's worked so well so far, building out its lifestyle-y Vibes line and augmenting in-market activities on college campuses and music fests. That was gist of what emerged from NACS booth conversation with ceo John Fieldly, sales vp Tony Guilfoyle and marketing vp Kyle Watson.

No shock here. Vital Pharmaceuticals (aka VPX Sports), which markets Bang Energy, has filed for Chapter 11 bankruptcy protection today after getting bludgeoned with adverse rulings in several big-ticket lawsuits. Florida-based co issued a statement that Chapter 11 move is result of "recent challenges, including multiple lawsuits that impacted the Company's short-term outlook and the cost impact of reconstituting the company's national distribution network that resulted in a summer revenue gap." Founder/ceo Jack Owoc maintained his defiant stance, saying, "Our inspired and positive contributions have been met with numerous lawsuits from Monster Energy and also Pepsi, basically Big Beverage. We will continue to fight these monster corporations and will not allow them to deprive you of our remarkable beverages and other inventions." Recall that Owoc has had his back to the wall before; indeed, Bang was launched just after he'd avoided fire sale of co to supplement player. By our tally, he's on hook for nearly $200 mil in suit brought by Orange Bang and Monster over IP and nearly $300 mil (which could be tripled) in false-advertising suit by Monster, while owing PEP a check of nearly $200 mil as unwinding of distribution alliance netted out.

Regulatory issues created by Pepsi's work on Hard Mtn Dew with Boston Beer, and especially its establishment of Blue Cloud distribution, explained in additional detail by atty Mike Madigan during NBWA this morn. Tho lots of bev producers are diversifying their portfolios these days, including "large soda suppliers," Pepsi is "the outlier," in Mike's view. Hard Mtn Dew is "ostensibly produced" by Boston, but that's a "fiction," he argued. Pepsi "controls the manufacture process," he contends, describing it as a "contract brewing agreement," tho that's not what either co calls their relationship. "Pepsi owns the trademark," and "nobody can sell Mountain Dew without the consent of the trademark holder," Mike emphasized. Calling Boston the supplier of Hard Mtn Dew is "the fiction that Pepsi is creating," Mike said, believing the "trademark holder should be considered the supplier." And "some states" have agreed, refusing (or at least showing resistance) to awarding licenses to Blue Cloud, he said.

Pepsi's Blue Cloud Distributing a major point of emphasis across multiple presentations this morn at NBWA convention in Chicago, including atty Mike Madigan at a seminar (see below), NBWA prexy Craig Purser to the whole audience and even AB ceo Brendan Whitworth. NBWA prexy Craig Purser sounded off on Pepsi's Blue Cloud Distributing in a key section of his address. Blue Cloud, which distributes Hard Mountain Dew (manufactured by Boston Beer) has "created a great deal of controversy with several states denying them a license," said Craig. "Most states have a specific prohibition against large manufacturers owning alcohol distribution," noted Craig. "Put simply, if Molson Coors or AB can't own distribution, how can Pepsi," asked Craig. Ten states took "legislative action" in recent yrs to "reinforce the notion of an independent 3-tier system." Pepsi has maintained that it isn't the manufacturer (Boston is).

In our last issue, we incorrectly wrote that Bell's Light Hearted Ale was discontinued. That is not the case, co assured. Earlier this yr, co had to make tuff calls on portfolio, including Light Hearted, due to capacity constraints (see Aug 16 issue). But with additional capacity online, and co lookin' to emphasize the Hearted brand family, Light Hearted remains in the mix. CBN regrets any confusion caused from this error.

While big ticket issues like spirits-based RTDs and direct shipping get a lot more attention from industry advocates these days, two more limited pieces of legislation were among top priorities of California Craft Brewers Assn. Late last wk, Gov Gavin Newsom signed both, expanding oppys for small brewers in the state. One new law will expand the number of locations brewers will be able to open under the same license and the other will allow brewers to self-distribute their own beer to retail locations they own within a 5-mile radius.

With Great American Beer Festival back in bizness in-person, 500 brewers poured over 2K beers from Oct 6-8. But the growing number without much or any alcohol caught the eye of Denver Post, which counted 10 different brewers collectively serving 22 NA beers, plus a "designated driver lounge" where attendees could sample all of 'em. Also, 73 NA beers entered GABF non-alc category contest vs just 17 in 2019. NA beer grew 19% vs year ago in scans, "so it would make sense that it would attract more brewery interest," BA spokesperson Ann Obenchain told paper. Denver Post pointed to NA-only cos like Athletic, Gruvi, and Ceria, Partake, along with Sierra Nevada, Deschutes, Brooklyn and Lakefront. "We'd love to get to a point where we're also judging NA by style similar to alcoholic beers," Gruvi CEO Niki Sawni told paper. "Eventually, if not by next year, they'll get there."