Beer Marketer's Insights
Aura Bora Pulls in Series A Capital Round
Aura Bora, which markets canned sparklers with inventive recipes, has closed Series A capital round, per report in FoodNavigator.com. Report said it brings total raise to date to $10 mil, suggesting close to $8 mil or so in Series A after SF-based co reported $2 mil seed round back in June 2021. This past spring Crunchbase reported an investment of undisclosed magnitude from Seaside Ventures. Series A was led by Siddhi Capital, whose other food/bev investments have included Hint Water, Super Coffee, Recess CBD, MudWTR altcoffee, Mooala and Good Catch plant-based seafood. Founded by Madeleine and Paul Voge in 2019, Aura Bora is positioned as offering "heavenly sparkling waters made from herbs, fruits and flowers," in flavors like Lime Cardamom and Elderflower Grapefruit.
ALC-ALTERNATIVES 2: Starla Wines Recruits Ex-BevZero Chief Novograd to Mastermind Buildout
As ceo of BevZero, Debbie Novograd had ample opportunity to peruse the burgeoning field of alc-alternative brands, given that co's involvement in developing over 30 no- and low-alc items. So it would seem to be a ringing endorsement that she's chosen for her next career step a move to roles of vice chmn and advisor/chief strategy officer at Starla Wines, the Dallas-based purveyor of dealcoholized wines launched by agency vet Dawn Maire. Debbie had been reported to have departed BevZero for "personal reasons" back in Jul, succeeded there by longtime prexy/coo Jerome Eckert-Nathan (BBI, Jul 11). While at BevZero, Novograd had presided over corporate rebranding from Advanced Beverage Technologies to BevZero to go all in on rising interest in alc-alternative bevs. It had been founded as ConeTech and pioneered vacuum distillation method of removing excess alcohol from wine. Before heading to what's now BevZero, Debbie had enjoyed long runs at foodservice giant Aramark as vp biz development for corporate dining division and Starbucks as a marketing dir.
ALC-ALTERNATIVES 1: S Africa's Abstinence Brand Hits US Shores with Range of Spirits, Aperitifs
South Africa's Abstinence Spirits has launched its assault on US market with broad line of hydro-distilled non-alc spirits and aperitifs sold via DTC channel. Launched only in 2020, Abstinence by now has expanded into 11 int'l markets, including Australia, UK and Canada, with ELF Cosmetics vet Ranwei Chiang recruited to help navigate US market from her base in Oakland, Calif. It's breaking here in 3 entries within co's flagship Cape Spirits non-alc spirits line, all using local ingredients from South Africa: Cape Citrus, Cape Floral and Cape Spice, all priced at $35 per 750-ml bottle. Also in mix are Blood Orange Aperitif and Lemon Aperitif priced at $28 per 750-ml bottle. And at bleeding edge is entry called Epilogue X that features a malty, smoky profile from botanical bill of smoked peated and blended malts, oak, honeybush, vanilla, cassia, cardamom, clove and licorice, at $35.
Reserve a spot for you and other team members for the 2022 Beer Insights Seminar. Our exciting program includes MC's incoming prexy of US sales Brian Feiro, AB's chief commercial officer Kyle Norrington, Constellation Brands evp and Beer Division prexy Jim Sabia, Boston Beer founder/chairman Jim Koch and panel of industry experts from leading assns, NBWA's Lester Jones, BI's Danelle Kosmal and BA's Bart Watson. We will also have a panel of
Repealing Aluminum and Steel Tariffs, "Harmful Economic Policies," Could Boost GDP, Jobs: Report
Individual trade deals reduced the annual burden of aluminum and steel tariffs from $5 bil to $2.9 bil, but they continue to negatively impact jobs and the overall US economy, according to Tax Foundation white paper published yesterday. "Repealing these tariffs would boost long-run GDP by 0.02 percent and create about 4,000 jobs," the org wrote, summing up impacts of the tariffs on industries like beer and beverages and reviewing the history of similar policies. Tho repeal would reduce US revs by $2.4 bil, GDP would increase $3.3 bil, overall wages +0.01%, the report forecasts. And that "should be considered a lower bound of the positive impacts," it explains, noting that it didn't consider the possible impacts of removing the $1.6 bil in retaliatory tariffs still in effect in other countries, among other factors.
In the past few yrs, we had the summer(s) of seltzer. This yr is the summer of seltzer's slump. Hard seltzer $$ sales dropped 13%, $179 mil to $1.165 bil total, as volume skidded 17%, 6.7 mil cases, to 32.4 mil cases for 12 wks thru Sep 4 in IRI multi-outlet + convenience data. Shed 1.7 share of total beer $$ to 10.1 for period. Seltzer now lost over 1 mil bbls and over $337 mil YTD in tracked IRI channels.
BEES in the Air; 2 AB Letters to Distribs, Simon Sez BEES "Sells More Beer"; Some Distrib Pushback
AB sent letters to distribs, one yesterday and a longer one today, in praise of BEES, its B2B e-commerce platform that is its big global emphasis (and analyst fave). But AB also acknowledged some "questions, comments and concerns" about BEES and clarified key points. When INSIGHTS asked chief sales officer Simon Wuestenberg today "why" so much emphasis on BEES, he said simply: "It sells more beer." First AB tried BEES in AB One (branch) operations and "able to prove" it increased sales there, then rolled it out in US last year.
Boston Beer founder/chairman Jim Koch will join the program for the 2022 Beer Insights Seminar. And Hand Family Cos prexy JR Hand will complete our panel of distribs along with Manhattan Beer coo Ed McBrien and Eagle Rock Dist ceo Steve Economos. Program also includes MC's incoming sales vp Brian Feiro, AB's chief commercial officer Kyle Norrington, Constellation Brands evp and Beer Division prexy Jim Sabia, and panel of industry experts from leading assns, NBWA's Lester Jones, BI's Danelle Kosmal and BA's Bart Watson. Plus, BMI's Benj Steinman will start
Kirin "In Talks" to Invest $70 Mil in Indian Craft Beer Co, Bira, to Reach ~15% Stake, Sez Reuters
While Kirin/Lion recently exited its UK craft beer investment, Kirin Holdings is reportedly "in the final stages" of "talks to invest $70 million in Indian craft beer maker Bira," Reuters reported citing 4 separate sources. Kirin first invested $30 mil in Bira for less than 10% stake last yr, and latest round would bump Kirin up to ~15% stake, article noted. Bira net sales more than doubled to $20 mil in latest qtr thru Jun 2022, tho incurred an operating loss of $4 mil, "according to an internal investor presentation seen by Reuters." Beer volume was at record high for the qtr, and "more than 2X" ahead of pre-Covid levels. Notably, article repeatedly references "steady decline" in home mkt Japan "forcing the companies to expand overseas or foray into new markets," also pointing to ownership of US-based New Belgium and Bell's plus 24.5% stake in Brooklyn Brewery as recent examples of this. New Belgium remains the biggest growth co among all craft brewers this yr.
Creature Comforts Brewing is gradually expanding distribution in 2022, most recently signing on with Beverage South for Columbia, SC mkt for mid-Sep launch, co announced earlier this mo. Recall, Creature Comforts previously entered Charleston and Hilton Head, SC mkts with Reyes in mid-2021, taking "very targeted and small approach" as SC was just 1.5-2% of total volume 1 yr in (see May 26 issue). In July, co entered Nashville with Lipman Bros (see Jun 24 issue), then marking its 2d mkt outside of home-state GA. Later this fall, co will add Chattanooga, TN mkt with Lipman and Greenville, SC with Reyes' Greenco Beverage.