Beer Marketer's Insights

Beer Marketer's Insights

Following a study linking a healthy lifestyle, including moderate drinking, to significantly reduced risk of dementia, even among those genetically disposed to the symptoms (reported in AII last July), comes a broader set of positive outcomes among those living the same healthy lifestyle. An international group of researchers working from Harvard reviewed two large cohorts of health professionals: The Nurses' Health Study (1980-2014) and The Health Professionals Follow-Up Study (1986-2014). Importantly, the size and depth of the studies - following over 110,000 individuals for over 30 years - allowed the researchers to determine impacts on both morbidity and mortality. Their conclusion: "Adherence to a heathy lifestyle at mid-life is associated with a longer life expectancy free of major chronic diseases."

Barely a day has gone by since the New Year started that we haven't run across either an article pondering Dry January − a UK-born concept to abstain from alcohol for the month − or the 100th anniversary of Prohibition, a US-born concept that legally banned alcohol for 13 years. Though large numbers of consumers say they're either interested in living a dry month and/or pledge to do it, we've not seen evidence of an actual impact on sales, especially in the US. Indeed, January 2019 was a very strong month for alcohol sales by all retail measures we've seen. Reportedly, a great deal of alcohol was sold during Prohibition as well.

An important meeting for AB's Equity Agreement Manager with distribs is coming right up. AB will intro 2023 brands/plans and sales initiatives, amidst some challenging sales trends and will also almost certainly feature BEES, AB's fast-growing global e-commerce platform. Why? Because BEES a top priority in US too and BEES "sells more beer," as chief sales officer Simon Wuestenberg told INSIGHTS. It's a huge global initiative that ABI has featured heavily on recent conference calls/investor meetings. Many financial analysts view BEES as a potential competitive advantage for ABI. Part of AB sales execs' bonus tied to growth of platform, sources say. Meanwhile, there's lotsa background buzz about BEES in AB distrib network nationwide. But distrib dialogue decidedly more mixed. Distribs range from enthusiastic support to vehement opposition, with many gradations.

Ugly Sheehan family dispute doesn't just pit parents against children, but now brothers against sisters with fate of beer distribs perhaps worth $1+ bil in the balance. Those Sheehan Family Companies (SFCs) continue to operate biz as usual as Sheehan family and its trustees filed thousands of pages of docs with MA Superior Ct and others in yr+ since we last checked in. They roped additional siblings into series of suits and countersuits, raising new claims about not only "fiduciary duty," but personal, family duties, too. And as the thicket grows with no clearing in sight, gotta wonder how it all ends. Family has explored sales of its cos in whole or parts, INSIGHTS understands. Yet this messy legal dispute deals directly with who's entitled to how much equity in which cos, weighing on that process and price. Given protracted and at times personal battle, already costing each side many mils of $$, how can any combo of deals clear this air?

After a slower first half, distrib consolidation really picked up steam in Sep, especially in AB network. Five AB distrib deals announced this month. That has to be close to a record number for 1 month. INSIGHTS tracked 9 AB distrib deals so far in 2022, over half in Sep. More in works. There are typically 10-12 per year in each of AB and MC networks, tho INSIGHTS tracked 14 in AB network last yr. Latest batch of AB distrib deals are smallish: between 650K and 4 mil cases. Each of buyers have done several deals before. The deals went down in OH, KS, WV, NY and MT. Despite this flurry of activity, consolidation still far less advanced in AB system and AB distrib network far more fragmented. AB still has lotsa smaller distribs.

While beer remains down slightly in off-prem IRI YTD, it's back to gainin' share of total alc bev $$ thru 8+ mos of 2022. Beer $$ dipped 0.8% YTD thru Sep 18 in IRI multi-outlet + convenience data while total alc bev $$ slipped 1.2%. So beer gained 0.26 share to just under 65 share of total IRI MULC sales. First time in a long time beer's been able to grow alc bev $$ share in these channels. Yet that's all comin' from wine. Spirits continue to outperform beer with extra boost from RTDs; $$ up 1.3% and gained nearly 0.4 share to 15.3 of total alc bevs in IRI MULC. Recall, spirits only sold in limited # of IRI outlets depending on state laws (among other factors). Wine sales dropped 4.3% and shed 0.6 share of total alc bevs to 19.7.

Molson Coors highlighted tangible "progress" made "over the past few years," continued "upward trajectory," and plans to push revitalization further at natl distrib meeting in Nashville last wk. Ceo Gavin Hattersley promised to "continue growing" its "iconic core," "aggressively" go after RTD space across seltzer, FAB and RTD spirits, "fuel growth" in natl craft, imports and regional craft, and "learn and drive scale beyond beer" in both non-alc energy and RTD coffee. Cmo Michelle St. Jacques (MSJ) and brand mktg team detailed various ways MC is leaning into new age of marketing, including heavy emphasis on digital, streaming, podcasts, cultural relevance and more. Tho sports presence, including both major sports leagues and burgeoning ones in US like F1 racing, remains key focus across all platforms too. Sports make up 75% of total traditional TV media spend. That includes upcoming Super Bowl ad that seeks no less than to "make history," sez MSJ. But co didn't yet reveal brand/direction of ad.

They didn't make the final cut at BevNet's New Product Showdown last month but offered good view into where entrepreneurs are planting their flags these days. They number wellness shots, cold-brewed coffee, CBD cocktails, mocktails, plant-based energy and "bubbles with benefits." Without exception they drew respectful response from judging panel, even if they didn't win the votes to proceed to final round. Here's rundown. We profiled the 6 finalists a few weeks back (BBI, Nov 18).

Boundary between alt-meat players and alt-dairy players is looking more permeable with planned move by Canada-based Modern Meat into nutmilks. Vancouver-based co that trades under MEAT symbol will focus on offering higher nut content than most current players, starting with items it styles Oat M*lk, Almond M*lk and Barista Edition Alternative M*lk, also oat-based judging by mockups. Each container will be emblazoned with exhortation to "Cut Out The Cow!", slogan reminiscent of Oatly's "Wow No Cow!" But co says it's just in testing phase for altmilk items, with sales to consumers not occurring until next Aug 31. Judging by comment from finance and M&A chief Campbell Becher, move seems driven as much by what will energize investors as by retailer and consumer demand. "The emergence of companies, such as Oatly, has not only taken consumers by storm, but investors as well," he said. "I feel it is a timely move for our company to step into the dairy alternative market." MEAT is small player trading on Canadian exchange with market cap around $115 mil.

Chicago-based doctor named Gerald Horn who's made his mark mainly in Lasik surgery has created nootropic RTD brand called Breinfuel that harnesses robust 360 mg of caffeine along with fuel blend of D-ribose, MCT oil and collagen protein to offer "sustainable cerebral stamina and high-performance energy." Shelf-stable line has launched online in 4 flavors packed in straightwall 12-oz plastic bottles: Victory Bliss (Peach Mango), Alpha Punch (Fruit Punch), Thrive Ice (Light Citrus) and Limitless Berry (Mixed Berry). It's being offered at $24 per 6-pk. As for bricks & mortar, Dr Horn told us he's undertaking trial with unidentified "major retailer" next month.