Tho lotsa talk about beer drinkers’ “promiscuity” these days, especially among millenials, that’s not case for another key demo: Hispanics.  “Hispanics are truly loyal,” according to demographer Dr Robert Schmidt, speaking at lively NBWA seminar.  So are Asians, it turns out.  Both of these groups “tend to stick with a brand into 2^nd generation,” and often further.  Until you lose Spanish in home, Hispanics tend to stick with brands “into 2^nd, 3^rd, and 4^th generation,” said Schmidt.  Illustrating same point, Randy DeWitt, CEO Front Burner Restaurants, said he tried to release a new, private label beer designed to appeal to Hispanics, but it “absolutely flopped.”  Front Burner runs multiple Twin Peaks outlets and other restaurant concepts.  Meanwhile, Asians “represent enormous growth market” sez Schmidt, and will represent “largest growth of foreign born population in next decade.”  Thus far a lost oppy for beer, he suggested.  Asian beer not even a ½ share of import biz in IRI multi-channel off-premise data.

Lotsa “Cross Usage” Across Segments  But same panel provided further evidence that typical US drinker is not brand loyal, not even segment loyal.   Analyst Bill Pecoriello cited “very high” level of “cross-usage of beer segments,” using his Consumer Edge data.  At least 40% of drinkers of any major segment also drank a beer from every other segment on a weekly basis.  For example, 55% of craft drinkers are weekly drinkers of import, and 50% are weekly drinkers of full calorie and even value beer.  Then too, 59% of import drinkers are weekly craft drinkers.  Interestingly, light beer was least likely to be chosen by drinkers from other segments, tho not by much; 40-45% of drinkers from each segment declared that they are weekly drinkers of light beer too.   

Front Burner Outlets Put Ice Cold Beer on Front Burner  Randy spoke about growth in beer sales at his 5 different-style restaurants based out of Texas; 50+ locations across 20 states, with more comin’.  Biggest by far: Twin Peaks, currently 43 locations in 20 different states and a handful in planning.  Randy uses beer temperature “as a strategy,” keeping all beer at 29 degrees, and freezing “every beer mug.”  “Craft brewers come…and are horrified,” but Randy sees continued success, and sticks to ice cold offerings.  AB is “still best seller at Twin Peaks,” at 33.9% of beer, but craft is comin’ along -- now 23%.  That’s next highest after AB and MillerCoors products (28.3%), and ahead of imports (14%), despite temp.  Over half of craft volume is from “house beers (private labels)” and by Christmas 2013 FB will be “brewing our own beer,” sez Randy, as our sister publication Craft Brew News reported in July.  Focus will be on session beers.  “The brewery has a mandate: everything 5% or less.”  Twin Peaks estimates it’ll do approx 804,500 case equivalents in 2013, and predicts 1.4 mil ce’s in 2014, approx 2 mil cases in 2015.  That would be over 70% growth in beer vol in 2014, close to 50% in 2015.   Twin Peaks sells about 84% of Front Burner’s total beer vol. 

Ojos Locos is next largest of Front Burner Restaurants, with 5 TX locations, accounts for 14% of Front Burner total beer vol, estimated 137,900 ce’s in 2013.  This branch is targeted toward Hispanic consumers.  Heavy on draft, and a 100oz balon (soccer ball) pitcher is “main way we sell beer,” sez Randy.  See image here. ( http://ecx.images-amazon.com/images/I/31a82l14ssL._AA160_.jpg)  They cater towards soccer fans by opening restaurant when games are aired from overseas.  “Dos Equis outselling Corona” in chain, partly because “Corona is impossible to get on draught,” sez Randy.  Dos is 19% of beer at Ojos, over half of imports.  AB grabs up 45%, MC just 12%.  “Only 8 taps at Ojos Locos” said Randy, vs “24-30” at Twin Peaks.  On related topic, Dr Schmidt thought “Corona is viewed as a local beer,” in US among Hispanics, while “Modelo [Especial] viewed as 100% Hispanic beer,” and Dos has broader reach to a wide range of demographics.  

NBWA prexy Craig Purser cited pot legalization issue at convention last week, noting “many Americans are trying to figure out what this all means for our society, and your association is doing the same. We are monitoring the situation and taking a closer look at potential policy implications.”  On panel of brewer-leaders, MC prexy Tom Long said Beer Inst is taking close look at issue in terms of “who sells it, who distributes it, who grows it, how it’s taxed” and more.  BI will be discussing issue with industry partners this week to develop a response.  “If you come out too fast with an opinion, you may not get the industry unity you have asked for.”   Has to be some interesting dialog at Beer Inst given one big member from Netherlands where pot a part of the culture for yrs.    

Just last week, Walmart cmo Duncan McNaughton got applause during his speech at NBWA when he said he’s “not interested” in private labels in beer. But wait a sec.  A co called Central Beer has pitched to distrib(s) that it has deal with Walmart to sell its Dorada brand there as “controlled label” i.e. private label.  Central Beer is a unit of Cerveceria Centro Americana, the dominant brewer in Guatemala.  Deck we saw showed that distrib dollar margin would be $1.61 on six-packs and $1.42 on 12-packs.  Ugh.  Distrib reportedly turned it down.  Don’t know where’s the disconnect, but this is reminder that Walmart’s initiative to double beer sales likely to have lotsa ramifications, not all of them salutary.  

Currently Heineken USA outperforming total beer mkt by 2%, “but market decelerated,” prexy Dolf van den Brink told distribs in meeting at NBWA.  So even tho Heineken gaining share, “we are half way on our journey” and need to “accelerate momentum.”  Focus is on “where to play” and “how to win.”  Where to play is “upscale (+ Tecate), imports, and building badge brands.”  The high end currently makes up 23% of total U.S beer mkt.  Dolf sees this as underdeveloped compared to overseas mkts like France, where high end is 35% of total beer, or in adjacent categories such as Vodka, where high end is 30% of total mkt, and whiskey, where it’s 40%.

Dolf highlighted HUSA’s pull with multicultural consumer, and looks to further increase reach, especially to Hispanics.  For total Heineken portfolio, “half of volume is sold to multicultural consumers,” and “42% of Heineken brand is sold to multicultural,” according to Dolf.  HUSA launching 8.5oz cans of Heineken in select mkts in 2014.  This package is big in Puerto Rico, as it helps consumer finish the beer before it gets warm, and is relevant to Hispanic population.  Then too Dos Equis now the “fastest growing on premise” brand.  Tecate Light rapid growth continues, particularly in “sunbelt states,” up 46.6% in latest Nielsen.

Strongbow Up 80-90%; More “Near Beer” Launches in 2014  HUSA will continue to play in adjacent categories with “near beer” products to get “new consumers into beer space.”   Strongbow is #1 global cider brand, up 80-90% in US, according to Nielsen, in recent periods.  Dolf sees 2 dominant cider brands: Angry Orchard in craft and Strongbow in upscale.  Then too, HUSA will have multiple new “near beer” products in US in 2014, BMI understands.  Stay tuned.

Innovation with One-Way Keg  To help further drive on-premise, HUSA has developed innovative one-way keg:  introduced its new “air keg,” dubbed “the best (keg) innovation since steel barrels,” sez Joe Pagliaro, Director of Innovation & Packaging at HUSA.  It is a 20L plastic slim keg that is recyclable, so it doesn’t need to be returned overseas, contains an air compressor that replaces normal gas cylinder, eliminating need for co2, and on top of all “delivers the freshest beer,” sez Joe.  The “production line is already being built,” and plans to launch next yr.

Upping Social Media Play With “Dropped” Video  New mktg campaign “Dropped” has Heineken playing more in social media.  The 2½ -3 min YouTube video has received over 2 mil hits and counting, sez Dolf.  The premise – “Departure Roulette” with travelers: you press a button on a large billboard that randomly selects a travel destination, and wherever it goes, that’s where you’re goin’.  Travelers have to drop everything and go to the destination on the spot in order to take part in this.  Check out the video here.  http://www.youtube.com/watch?v=PenROORvLyw

In Tuesday’s Express article on Walmart, 3d line should have read “biggest global retailer ‘can’t do it alone.’”  New Mass distrib assn exec is Bill Kelley.

MC just announced a new vp of brand mktg, Gannon Jones, taking #2 MC mktg job, following departure about 6 mos ago of Rick Gomez for Target.  Gannon comes to MC from Pepsi where he was chief mktg officer of Pepsi’s Global Nutrition Group since 2011. He starts Oct 22. 

As the Treasury Department furloughs approx. 90,000 employees, requests for approval of new beer labels, brands or permits for new breweries will collect dust til DC finds a resolution.  A shutdown of a couple of weeks could really pile up a back log when you consider TTB  “has received over 111,000 requests for beer, wine and spirits labels so far this yr, noted Beerpulse.com  The shutdown “will halt the approval of about 400 labels daily.”  AB has “handful” of applications with TTB at any given time, and “a government shutdown could impact our ability to efficiently move those applications forward or submit new ones,” an AB spokesman told St. Louis Post-Dispatch.  Craft brewers are always creating new brands and now flurry of new intros comes to a screeching halt.  Before shutdown, malt bev label approvals “were averaging a 12-day turnaround,” while processing time for “specialty beers” with added ingredients can take up to 2 months, noted Beerpulse.  Also, “somewhat unbelievably,” it noted that just “one TTB agent approves all” certificate of label requests, so that’s a ton of “catch up” when that agent gets back to work.    

Craft  Brew Alliance will significantly up mktg spend – by 40% – while seriously paring skus – by 27% – and focus on 7 brands across its broad Widmer-Redhook-Kona portfolio in 2014, chief of commercial ops Andy Thomas told distribs in mtg following NBWA convention yesterday.  “State of the alliance has never been better,” Andy claimed, across geographies, consumers, retailers and wholesalers.  CBA up 11% thru Jul (+38% in east, +4% in west) “pacing with the category for the first time.”  At same time, CBA brands provided $50 mil in gross margin for AB distribs over last 52 wks, dollars “that did not leak across the street” to the MC network.  CBA still has complex portfolio, Andy and other execs acknowledged, but will focus on 7 brands, 2 each from key brewers: Longboard Lager/Big Wave from Kona, Longhammer/Audible Ale from Redhook and Alchemy Ale/Upheaval IPA from Widmer, plus Omission.  CBA still has a bunch of other seasonals and specialties, and will add new pkgs in 2014, but it will reduce skus by 27%.  And CBA will up mktg by 40%, including “biggest ever” mktg/media behind Kona, which will get “majority” of that pop.  Kona will add 4 states: Wisc, Mich, Ky and Miss, bringing it to 40 mkts.   Lots more detail in sister pub Craft Brew Newsthis week.       

Craft  Brew Alliance will significantly up mktg spend – by 40% – while seriously paring skus – by 27% – and focus on 7 brands across its broad Widmer-Redhook-Kona portfolio in 2014, chief of commercial ops Andy Thomas told distribs in mtg following NBWA convention yesterday.  “State of the alliance has never been better,” Andy claimed, across geographies, consumers, retailers and wholesalers.  CBA up 11% thru Jul (+38% in east, +4% in west) “pacing with the category for the first time.”  At same time, CBA brands provided $50 mil in gross margin for AB distribs over last 52 wks, dollars “that did not leak across the street” to the MC network.  CBA still has complex portfolio, Andy and other execs acknowledged, but will focus on 7 brands, 2 each from key brewers: Longboard Lager/Big Wave from Kona, Longhammer/Audible Ale from Redhook and Alchemy Ale/Upheaval IPA from Widmer, plus Omission.  CBA still has a bunch of other seasonals and specialties, and will add new pkgs in 2014, but it will reduce skus by 27%.  And CBA will up mktg by 40%, including “biggest ever” mktg/media behind Kona, which will get “majority” of that pop.  Kona will add 4 states: Wisc, Mich, Ky and Miss, bringing it to 40 mkts.   Lots more detail in sister pub Craft Brew Newsthis week.       

After a “rough” 1st half, MC sales improved over summer, said MC ceo Tom Long at its fall distrib conference yesterday.  Coors Light STRs are back “into the black,” for last 12 weeks. “We’ve stoked momentum” on Coors Banquet, he added, up double digits.  And Redd’s “accelerated… from an already fast start.”  Total MC sales up slightly in natl accounts yr-to-date, noted chief customer officer Kevin Doyle.  But Miller Lite down 7% this yr, “amidst a very challenging environment,” noted CMO Andy England, adding that approx 1 point “due to weather,” 2 “due to momentum” (“equally split between brand health and pricing”).  But 4 points are because “of distribution losses,” according to Andy, tho he did concede that “negative momentum leads to distribution loss.” 

On the plus side, MC is looking at selling 10 million cases of Redd’s and Third Shift in 2013.  Strawberry Redd’s sold 400,000 cases in 6 weeks since its intro, just in chains.  Leinie Summer Shandy sold about 400,000 bbls in 2013.  Blue Moon and Leinenkugel have added 1.2 mil bbls, 65% volume growth in last 2 yrs, noted Tenth and Blake ceo Tom Cardella.  And total MC high end has gone from 9 to 11% of its volume this yr in chains, noted Kevin Doyle.  

Next yr, MillerCoors will be ramping it up even more in the high end and innovation.  Miller Fortune is the big bet and MC looks to hit the ground running and have 80% distribution by Mar 1, when the national tv ads hit.  MC will “come out of the gates fast and hard,” said sales prexy Ed McBrien and spend $40 million on Fortune ads next yr, an even higher level of spend than Bud Light Platinum.   And MC will also have national tv on another interesting new product: Smith & Forge cider.  Its positioning: a cider aimed at men.  And it will be the “largest cider campaign since Prohibition.”  Redd’s will intro a Hard Tea and a variety pack that will include Apple, Strawberry and Tea.  Coors Light will even have its first ever line extension, the citrus flavored Coors Light Summer Brew.

In other significant news, MC will return to natl tv ads on Miller High Life and Keystone Light.  It has concluded that its economy brands “need more love,” as ceo Tom Long put it.  “It is almost as if we were taking the customer for granted,” said Tom.  But MC’s meeting didn’t have a lot of big new news or new ads on Coors Light or Miller Lite.  It did show new Latino Miller Lite ads with macho Latino star Danny Trejo with a tag line “Don’t mess with Miller Time.”  The ads reminded some observers of the infamous Schlitz ads from the 1970s  with James Coburn (often referred to as “Drink my Schlitz or I’ll kill you”).  Overall, this tight focused format (3 hour meeting) and MC’s ongoing reinvention towards above-premium and innovation held promise, according to early read from distribs.  “We are locked and loaded for 2014,” said Kevin.