Beer Marketer's Insights
After Sierra Nevada permanently closed its Berkeley taproom in July, bringing an end to the Torpedo Room's 10 yrs in biz, Portland, Oregon-based Great Notion is swooping in to take over the space. The up-and-coming craft brewer will soon expand into Sierra's former home, adding its first dedicated CA taproom to co's 5 existing PacNW locations (3 in Portland, 2 in Seattle), per Sacramento Biz Jnl. Turnkey space includes just over 2K sq-ft, with a large outdoor patio and 16-tap bar situated in "prime location." Great Notion applied for a "small beer manufacturer license for operations producing less than 60,000 barrels per year, which allows onsite sale and consumption of beer made on the premises or from other producers." But for now, co "declined to comment on its future plans" in Berkeley.
Following deals to buy Classic Dist's LA beer biz while selling minority stake to Classic and to strike a JV with Columbia Dist for an ID craft dist arm, Scout Distribution plans to grow from about 2 mil cases this yr to 3 mil cases by 2027 "or sooner," CEO/co-founder Jeff Hansson shared with CBN. "That would put us well over $100 million in revenue."
The Craft Beer Evolution? Small Brewers Follow Consumption Trends into NA, Cannabis & Spirits
While beer consumption stagnates and craft beer grows sluggishly, mostly in isolated channels, small brewers have looked elsewhere for inspiration and innovation. Some helped pioneer leading products in fast-growing categories like non-alc beers and spirits-based RTDs. Others famously built brands winking at links to cannabis. Now more craft players actively pursue oppys in all 3 categories, following broad consumption trends and larger brethren as they evolve from brewers into beverage companies.
"Melvin Sokolsky, a photographer who pushed boundaries by creating fantastical tableaus for fashion bibles like Harper's Bazaar that seemed to defy both gravity and logic, died on Aug 29 at his home in Beverly Hills, Calif," at age 88, NY Times reported a few days ago of shutterbug who in 1960s famously shot Dior-clad models floating in plexiglass "soap bubbles" over Paris. But self-taught photog, who grew up in straitened circumstances on NY's Lower East Side, pivoted after just a decade in upper reaches of fashion trade to directing TV ads, including several that made lasting imprint on bev marketing. As Times put it, "he became a heavyweight of the ad trade, conceiving and directing hit campaigns like the "
Following an active 2021 when it did 3 deals, Try-It Distributing, the western NY house operated by Vukelic family, is at it again. This time it's struck deal to buy 1.5-mil-case Sanzo Beverage of Olean, NY, in transaction anticipated to close in Q4. Sanzo also sells Heineken, Southern Tier and other brands, but is reportedly about 90% Anheuser-Busch. Try-It's Balkan Bev arm (which counts Red Bull among its NA brands) already operates in that territory, so there will be immediate synergies. And it extends beer footprint within NY's Southern Tier, to the west of Elmira footprint picked up with Seneca Bev late last year, in addition to Try-It's territory in Buffalo and Saratoga Eagle 280 miles to the east. As our sibling newsletter Insights Express reminded, late last yr Try-It bought Northern Eagle in Oneonta and Seneca in Elmira (and also acquired a couple of home distributors, class of trade in NY State that straddles wholesale and retail). All in, Try-It and its eastern NY arm, Saratoga Eagle sell just over 18 mil cases annualized, including NA bevs thru Balkan. Try-It is A-B's largest distrib in Northeast, excluding A-B's company-owned branch in NYC, and it keeps getting larger . . . A-B has hived off one of its corporate-owned AB One houses to an indie partner with deal to sell its Lima, Ohio-based operation to longtime indie house Ohio Eagle Distributing. Ohio Eagle operates in 9 counties in SW Ohio and maintains modest NA portfolio that includes G Fuel Energy. It claims to sell 4.5 mil cases of beer annually.
Kate Farms, healthcare-targeted marketer of nutrition shakes and other plant-based bevs, said it's landed $75 mil Series C capital round led by life science investor Novo Holdings. That follows $51 mil Series B less than 2 years ago led by Goldman Sachs and Kaiser Permanente Ventures (BBI, Nov 13 2020), which both participated in this round. Main Street Advisors, a money manager for celebs, and existing individual investors also returned, but collectively still own minority of co in what was described as an up-round. Recall, co was founded by Richard Laver and his wife Michelle following their distress at seeing their daughter Kate struggling with health challenges. Among milestones co is claiming lately is availability of its products in 95% of US hospitals with coverage by Medicare, Medicaid and 2,000+ private insurance plans. Co has launched 13 new items since last round was brought in, including endemic items such as organic and plant-based, closed-system hanging bag to deliver its formulas in hospital setting, as well as more broadly targeted pea-based OTC Nutrition Shake line. It also offers standard formulas, kids nutrition and peptide bevs in resealable cartons, with Chocolate flavor on way for its Standard 1.4 line (with 1.4 calories per ml).
After 4 years in biz, veteran-operated Fire Department Coffee is ready for its RTD moment, offering quartet of canned nitro entries that brings a novel twist: two of them are infused with real spirits. Those entries, Nitro Irish Coffee and Nitro Vanilla Bean Bourbon, riff on the bourbon-, tequila- and rum-infused offerings in bagged-coffee line that put the Rockford, Ill-based co on the map as DTC player. Also in 7-oz canned lineup are Nitro-Charged Latte and Nitro-Charged Shellback Espresso. They're launching via DTC, with retailers to be onboarded in coming months. Online, both the spirit-infused and non-infused items go out at $47.88 per 12-unit case to one-time purchasers.
Sprouts, Whole Foods, Hy-Vee Among Launch Partners for Just Ice Tea, Over 1,000 Doors to Start
Eat the Change formally launched its Just Ice Tea brand today, saying brand will break at all Sprouts Farmers Market stores as well as its own affiliated PLNT Burger locations in NYC but quickly move into range of other retailers including Whole Foods Markets, Hy-Vee, Central Market and Giant Foods. Also in mix will be Town & Country, New Seasons Market, Erewhon, Mom's Organic Market, Roots, Yes! Natural Markets, PCC, Dawson's, Market of Choice, ION Group, Oliver's, Rainbow Grocery, The Food Bin, Ellwood Thompson's and The Common Market. SRP will be $2.69-2.89, per announcement today. In post yesterday, cofounder Seth Goldman said over 1,000 retail locations are picking up 6-flavor line. We'd teased the line earlier this month after spotting it at Plant Based Expo in NY (BBI, Sep 8). Tho initial retailer lineup is impressive, ETC execs have made it clear they're not embarked on a landgrab but will pick their spots and build brand gradually.
SCANNER TRENDS: Pricing Remained High thru Labor Day; Energy Drink Volume, Prices on Rise
Price increase gains were strong, still up double-digits in CSD, bottled water, RTD tea, sparkling flavored and still water segments while just below that mark in sports drinks for 4 wks thru Sep 10, per latest NielsenIQ data reported by Goldman Sachs' Bonnie Herzog. This period includes Labor Day weekend holiday, which was in same 4-wk period a yr ago, so no timing issues to consider as you review.
PR guy Josh Kohnstamm, who built professional identity around flogging natural and organic brands, is heading into what sounds like not entirely restful retirement next month after selling his agency, Kohnstamm Communications, to Minneapolis-based Broadhead a year ago. Over course of his career, Josh claims to have represented 100+ natural and organic brands, including bevs like Naked Juice, Icelandic Glacial, Kill Cliff, Reed's Ginger Brew and Kyla Hard Kombucha, and was founding shareholder in Honest Tea, which sold to Coca-Cola. At Broadhead, whose bev roster includes Good2Grow kids brand, he'd been serving as evp, helping agency expand its food/bev presence after it bought his agency in Sep 2019. Upon retiring at year-end, he'll continue to serve as advisor to investment bankers Silverwood Partners in Boston, while deepening his involvement in trio of causes: ReConnect Rondo community-building effort in Black neighborhood in St Paul, reproductive rights org PathFinder Int'l and Maca

