Beer Marketer's Insights
While premiumization outside of the US is "very strong," Molson Coors has "work to do" in premiumizing its US portfolio, CEO Gavin Hattersley commented during Q&A of Q2 earnings call last wk. Blue Moon is co's biggest above premium brand, and it remains soft in 2024 with $$ down 5.6% and volume -8% YTD thru Jul 14 in Circana multi-outlet + convenience channels. But trends improved in recent mos with $$ down 2.6% for latest 4 wks vs year ago as rebranded Blue Moon Light $$ grew 4% for period, flagship Belgian White trend improved (tho still down 4%) and non-alc continued to provide an incremental lift, snagging 3 share of NA segment for period. Blue Moon's "a big, important brand for us" and MC remains "committed to turning that brand around," he said, noting that "early signs" on Blue Moon Light are "very promising" and there's "promising initial traction" on Blue Moon non-alc. Co's "completely committed to reinvigorating that brand" and this yr it's taken "a really important step in that direction."
Talk about a turn of the tides. After Monster's alc bev revenues grew 82% for full yr 2023 and another 21% in Q1 2024, alcohol net sales abruptly dropped 32% for the 2nd qtr ended Jun 30 as co began to lap last yr's Beast Unleashed rollout. Alc sales fell to $41.6 mil, down 19.5 mil vs $61.1 mil yr ago. And while alc brands are comprised of Beast Unleashed, Nasty Beast Hard Tea and various craft beers and hard seltzers from CANarchy, drop in net sales was "primarily due to decreased sales by volume of flavored malt beverages," Monster stated in release. Monster continues to "consolidate production facilities" and took an additional $8.1 mil writedown "relating to certain brewery closures" in Q2, co shared on earnings call.
Dunkin' Spiked is adding new pumpkin spice iced latte flavor to its mix as its "first ever limited seasonal offering," co announced. It's made with "real coffee, pumpkin spice flavor, and a non-dairy creamer that is both vegan and lactose-intolerant friendly," clocking in at 6% ABV and available in 4pk 12oz cans. So far, Dunkin' Spiked Coffee sales are outpacing its hard iced tea sales in scans. Sales remain relatively small, but among top-50 FMB families in scans and all-incremental thru Mass Bay Brewing, currently available across the east coast except for VA, plus parts of the midwest, TX and CA, according to its website.
RNDC Fires Back Against Provi, Claims Misrepresentation, Customer "Impersonation" in Countersuit
The country's 2d largest wine & spirits wholesaler isn't backing down in protracted dispute with retailer-facing online alc bev ordering platform Provi. While "wedging itself" between distribs and their customers, Provi actively misrepresented its relationship with Republic National Dist Co (RNDC), creating significant confusion, wasted time and financial harm, RNDC alleged in a countersuit filed in an IL fed ct on Monday. Recall, judge there denied request by RNDC and top wine & spirits distrib Southern Glazer's to dismiss Provi's antitrust claims. The pair formally answered that complaint, offering standard denials of any wrongdoing and a series of potential defenses, 3 wks ago. Now, RNDC is firing back, alleging that Provi's own misdeeds include "intentional deception and fraud, blatant misrepresentations, and false and misleading business practices."
Monster's Alc Brand Sales Down 31.9% to $41.6 Mil in Q2; Primarily Dragged by Beast Unleashed
Talk about a turn of the tides. After Monster's alc bev revenues grew 82% for full yr 2023 and another 21% in Q1 2024, alcohol net sales abruptly dropped 32% for the 2nd qtr ended Jun 30 as co began to lap last yr's Beast Unleashed rollout. Alc sales fell to $41.6 mil, down 19.5 mil vs $61.1 mil yr ago. And while alc brands are comprised of Beast Unleashed, Nasty Beast Hard Tea and various craft beers and hard seltzers from CANarchy, drop in net sales was "primarily due to decreased sales by volume of flavored malt beverages," Monster stated in release.
NEW PRODUCTS: 7-Eleven Debuts Fusion Energy, Rehydrate Lines under 7-Select Captive Brand
As anticipated (BBI, Jul 30), 7-Eleven has intro'd new private-label energy drink under its 7-Select label dubbed Fusion Energy, as well as hydration option dubbed Rehydrate. Fusion Energy is zero-sugar entry packed in brightly colored 12-oz sleek cans that contains vitamins C, B6 and B12. Announcement today didn't indicate source or amount of caffeine nor sweetener, except to say it isn't HFCS. As for 7-Select Rehydrate, that new line blends 5 electrolytes of undisclosed quantity and vitamins, in 20-oz PET bottle that breaks in Cherry, Fruit Punch and Grape flavors. Retailer is offering a Bogo on this one thru Aug 27.
Bridget Lasda, who left Calypso Lemonade after fruitful 4-year run (BBI, Aug 6), is heading to explosively growing Poppi gut pop brand for her next assignment, the Austin-based co confirmed to us today. Bridget, who also boasted runs at Coca-Cola and Heineken earlier in her career, will be taking post of chief sales officer as Jeff Rubenstein, who'd honchoed sales over past 4 years, moves to new post of chief growth officer. In essence, Lasda will be managing co's national DSD distribution network while Rubenstein manages international expansion efforts, Direct Business Unit that services Walmart, natural channel and club channel, along with corporate strategy & development, and category mgmt and retail intelligence team. Recall that Poppi recently acquiesced to demand from Walmart that it exit DSD in favor of direct shipment if it wanted to expand within retailer, tho NY territory served by Big Geyser was carved out from edict (BBI, Apr 10). Poppi CEO Chris Hall was effusive in his praise for Rubenstein's contributions so far. "Poppi would not be where it is today without his drive, leadership and contributions," he said. There's some irony in Lasda's move, going from unabashedly indulgent Calypso brand to one that purports to offer better-for-you alternative to soda. It's well-worn path that's seen, for example, Amy Taylor move from Red Bull to Zevia, Scott Miller move from Tampico to Essentia, and Chris Hunter move from Four Loko to Koia.
Yesly Functional Water Enjoys Unlikely Viral Moment While Quietly Venturing into Energy Segment
Sure, the likes of Poppi and Liquid Death reliably churn out social media content that goes viral. But these marketing coups can also emerge from the unlikeliest sources - like early-stage Yesly brand of functional water, operated by "tiny but mighty" team, as CEO Scott Miller, a Snapple, Tampico and Essentia vet, put it today.
Zevia managed thru challenging Q2 in decent fashion as it navigated lumpy club store performance and retailers' restocking while it set foundation for major marketing push and expansion of its nascent DSD effort. And with booming gut pops grabbing lotsa mind share and shelf space, CEO Amy Taylor reminded investors on call this morning that Zevia, in market 17 years now as stevia-sweetened natural soda, brings its own advantages, including far more approachable price point, "a few cents per ounce above conventional sodas but often half the price per ounce and per can of other new natural sodas."

