Beer Marketer's Insights

Beer Marketer's Insights

A brewing and convenience-store powerhouse in Latin America, Mexican-based giant FEMSA has long indicated it has its sights set on US market but promised modest forays via single c-store openings never seemed to materialize. Now it's landed with deal to acquire 249 c-stores located mainly in Texas from Delek US Holdings, which prefers to focus on its energy operations. So operator of massive Oxxo chain is finally planting a flag here, picking up chain with 90% of its footprint in Texas and smattering of stores in NM and AR. The $385 mil deal is anticipated to close later this year.

US On Premise sales trends were up 5% in the week to Jul 20, per latest data from CGA by NIQ. Avg check values were up 10% vs last yr, while customer traffic continued to lag, down 5%. Of the 5 key states tracked by CGA, in New York, on premise on a roll with sales velocity up 21% vs last yr, while Texas up 5%, Illinois up 3%. On the downside, California velocity down 4% and Florida down 3% vs last yr.

Big Sipz, owned by Patco Brands, is off to a fast start taking direct aim at both BuzzBallz and BeatBox and going largely with AB distribs. It grew to $8.1 mil total, almost all incremental ($7.5 mil) for 13 weeks thru May 19 in Circana convenience store data, a recent Big Sipz deck showed. Gained more than anyone else except BeatBox and BuzzBallz in that channel during that period. Each of BeatBox and BuzzBallz 5-6x times as large and still growing rapidly. Indeed those 3 brands got 87% of growth in segment in c-stores, Patco showed. And Big Sipz is #5 ranked brand with 5 share of segment in c-stores, even tho it's only in 17 states with 22% CWD (category weighted distribution).

One of largest and most successful beer distribs, Andrews Distributing in Dallas (43 mil cases in 2023), announced several key exec appointments today. They simultaneously reflect the size and ambitions of the enterprise and that it's still a family biz. These new roles are to "accelerate the company's vision in its new stage of beer and spirits brand building," Andrews said.

Major industry trade assns conveyed serious concerns with proposed research designed to inform US drinking guidance just before the close of a public comment period late last wk. A trio of beer orgs asked fed regulators to shut down work toward the next edition of the US Dietary Guidelines (DGA) being conducted by the Interagency Coordinating Committee for the Prevention of Underage Drinking (ICCPUD), claiming such work is beyond its authority, without appropriate funding, duplicative and otherwise flawed. It "should be suspended," in view of NBWA prexy/ceo Craig Purser. The Depts of Health & Human Services (HHS) and Agriculture (USDA) "need to disband the secretly selected scientific review panel" in favor of a more transparent process, wrote Beer Inst prexy/ceo Brian Crawford and Brewers Assn prexy/ceo Bob Pease in a joint submission.

Modelo ain't just the biggest beer advertiser on tv this yr - it took the top spot in roughly Q2 2020, according to a Marketing Brew article citing iSpot data. The brand spent an estimated $65 mil on tv ads yr-to-date "as of July" 2024, compared to Mich Ultra at $48.3 mil and Bud Light at about $37 mil. (Editor's Note: report refers to Modelo Especial but notes that some spend's gone toward Modelo Oro, implying figures encompass the full brand family.)

08/02/2024

Clarifications

A coupla clarifications on deep dive we offered yesterday on evolution of DSD house Power Distributing in Chicago area. In listing brands they were onboarding, team got a bit ahead of themselves in mentioning Ryl Tea, which both sides have informed us is still at discussion stage, with no signed contract yet. As reported, they've onboarded Guayaki and Good2Grow as complement to core Prime and Alani brands in house so far. Also we goofed in styling Brampton, Ontario-based co-owner of Power as CoolHaus rather than ColdHaus.

"Brewless coffee" brand Diamond Brew, concept developed by former investor/journalist Douglas Yu, has formally launched, in the process identifying some of its investors. Backing ambitious venture to offer next iteration of instant coffee are GNC's CEO Michael Costello, along with Dream Ventures, which focuses on female-led ventures, and Entrepreneur Ventures, whose portfolio includes The Plug Drink, Crumbs Bakeshop and Spicewell. Also in mix is Kali Mata family office operated by brothers Nitin and Karan Khanna, who've played somewhat controversially in cannabis sector via startups that have sometimes ended in litigation. Doug hasn't disclosed magnitude of initial capitalization. Based in Chicago, Yu had teased some details of effort a few weeks back of premise of freeze-dried coffee crystals that are packed in aluminum pods and easily dissolve in hot or cold water without need for equipment, with little or no residue (BBI, Jul 8). Each serving contains about 160 mg of caffeine.

Bored Cow, which markets precision-fermented "animal-free dairy milk," continues to make inroads into conventional retail. This time it's Target chain that's onboarding brand at select stores across US. Mass-merch giant is picking up 3 sku's: Chocolate and Strawberry flavors, packed in 4-pks of 11-oz cartons, as well as unflavored Original version in 32-oz carton. It will soon add an exclusive seasonal flavor that's not being identified yet. Brand has been entering Safeway/Albertsons banners like Vons, augmenting natural-channel partners like Sprouts, Lassens and Central Market and specialty grocers like Fairway. It claimed to have attained national footprint this past spring (BBI, May 31).