Beer Marketer's Insights
Don't miss this definitive guide to the growing world of ready-to-drink alc bevs. For the first time ever, Beer Marketer's INSIGHTS is compiling key stats across beer, wine and spirits RTDs in one comprehensive digital report. Dive deep into this rapidly developing subsegment with data that details: all-channel volume estimates for RTD alc bevs in the USfrom 2019-2023; top RTD suppliers, brands and segments in 2023, plus latest developments in the 1st half; a historical look at FMB/Seltzer/Cider shipments vs Total Beer since 1999; crossover brands and RTD partnerships since the early 2000s; a map and analysis of legal/legislative playing field at state levels; review of the latest developments in delta 9/THC bevs; and more! A digital version of the completed report will be sent once available September 10.
Notes from Overseas: ABI's Russia Sale Rejected; Kirin-Backed B9 Building a $70-Mil Brewery in India
Late last week, Russian authorities rejected proposed deal for ABI to sell stake of its Russian-based JV to biz partner Anadolu Efes, Reuters reported among others. ABI's been trying to get a deal done since announcing plans in Apr 2022, but deal requires regulatory and governmental approval from Russia, and that's proved to be challenging for several cos. Recall, Carlsberg biz was "stolen" by Russian government amid sale process last yr and Heineken sold its biz for 1 euro. In separate statements, both cos acknowledged the rejected proposal and "Anadolu Efes and AB InBev are reviewing the decision," according to ABI's statement.
With kickoff around the corner, Molson Coors is putting its football plans in motion. That includes new football-themed tv ads for both Miller Lite and Coors Light coming next mo. But "with 18 NFL alliances, an ESPN Fantasy Football partnership, a national promotion" and a new spot on the way, MC promises its largest Miller Lite All Stars programming since launching the campaign in Mar, per co's latest blog post. Miller Lite's 18 team alliances are up from 16 yr ago, in addition to renewed partnership with ESPN Fantasy Football. It's already running a branded sweepstakes and will feature football-themed pkging on 9 and 15pk aluminum pints.
Two key growth segments, imports and FMBs, and lead cos and brands within 'em continue to slow in latest NIQ off-prem data. Import volume grew just 0.8% and FMBs slowed to +0.3% for latest 4 wks thru 8/3 compared to volume +3% and +4% for the year. Imports still posted largest growth of any segment, gaining 1 share of beer volume for 4 wks. Yet FMBs share gain was slashed in half to +0.3 for period, making it #3 segment gainer for 4 wks behind superpremium (+0.5). Total beer volume remained down 3.8% for 4 wks and YTD in these channels.
First analyst question on this week's Q2 call by Celsius Holdings was uncomfortable one: what's with the rejiggered employment agreements disclosed in Aug 1 filing and their change-of-control provisions? CEO John Fieldly and CFO Jarrod Langhans tag-teamed response, in essence saying it was effort to standardize agreements among broader array of top leaders than just those 2. "More of an administrative thing," Jarrod told his questioner, Jeffries' Kaumil Gajrawala. Kaumil's reaction?
Dutch Bros continued its brisk store and revenue growth in Q2, with innovation playing a key role in maintaining traffic flows despite some economic stress among consumer base. Revenue rose 30% to $324.9 mil on 4.1% growth in same-shop sales and addition of 36 shops as BROS continues on brisk national expansion of its drivethru stores that hit milestone of 900 units with opening in Frisco, Tex, a key expansion state along with Calif and Fla. Operating income surged 64.4% to $32.2 mil. So "we once again combined strong revenue growth with expanding profitability," said prexy/CFO Christine Barone. Among notable details disclosed on call, over 90% of biz in period was via iced bevs, preferred format for younger consumers where major powers like Starbucks and Dunkin' are playin' catchup. Tho co didn't disclose specific store traffic metrics, she indicated that measures such as add-ons and modifier usage suggest customers are staying loyal despite economic stresses.
Westrock Coffee continued its breakneck buildout of massive new Arkansas coffee facility in Q2 but found itself also grappling with recent category softness that's now spread from core biz to pod sector too. Result was disappointing topline, with sales falling 7.3% to $208.4 mil. The damage occurred at core unit, Beverage Solutions, down 14.2% to $163.3 mil, as key pod customer rejiggered its package count sizes to ease burden on hard-pressed consumers. That accounted for 80% of shortfall, cofounder/Scott Ford noted to questioner on call yesterday afternoon. Meanwhile, a recently announced jv with Select Milk has been pushed back a quarter after initial commitments didn't come in quite strong enough to coax lenders into cutting their checks to finance project. Shares skidded down in wake of report in tumultuous week on Wall Street but had recovered some of losses by this morning.
No Reasonable Consumer Would Think Vizzy Mimosa Variants Contain Champagne, Fed Judge Rules
At least some federal judges still believe that reasonable consumers can act reasonably, using context clues — and caution — if they're confused about a product's ingredients. While the word "mimosa" certainly hints at champagne and "hard seltzer" only references the presence of alcohol, not the type used, "a reasonable consumer would expect that if a hard seltzer had champagne in it, the packaging would make that fact abundantly clear." So concluded a fed judge in NY this wk, dismissing yet another attempted class action lawsuit against an alc bev producer, this time Molson Coors for mimosa variants of its Vizzy brand. This was 1st of 3 similar suits over the brand's mimosa-flavored entries, recall. A 2d in FL settled last mo and a 3d in MO is still alive, awaiting MC's response.
A little over halfway thru 2024, total RTDs (across beer, wine, spirits and hard cider) continue to grow $$ and gain share of alc bevs in scans. Yet RTD volume growth is still harder to come by in tracked channels. Total RTD $$ grew 3.4% to $6.8 bil with volume down 0.5% in NIQ xAOC + liquor open state + convenience data provided by Bump Williams Consulting. (Editor's note: this custom view of RTDs includes FMB, hard seltzer, hard cider, RTD spirits and wine-based cocktails.) RTDs collectively gained 0.5 share of total alc bev $$ to 11.7 in NIQ channels.
Surfside jumped 409% to $18.5 mil for 4 weeks thru Jul 27 in NIQ data from Bump Williams Consulting that appeared in Surfside's Aug newsletter to distribs. That put it firmly ahead of NUTRL, up 32% to $16.5 mil in same period. Cutwater at $29.3 mil, up 21%. But Surfside much less widely distributed. It's only at 32% CWD (category weighted distribution) compared to over 60% for NUTRL and almost 80% for Cutwater. Maybe Surfside's ambition to be #2 RTD ain't so far-fetched. High Noon at $116.5 mil, up 18% with 88% distribution. Those top 4 healthy brands are 55 share of segment in latest period. Surfside at 5.6 share for 4 wks, gaining 4.3 share.

