Beer Marketer's Insights
Superfood powder purveyor Bloom Nutrition has taken leap into RTD space with launch of Bloom Sparkling Energy, canned focus enhancer that's breaking exclusively at Target chain on Mon. Each 12-oz can contains 180 mg of caffeine sourced from coffee bean extract (tho nutrition panel also seems to include ginseng), along with prebiotic fiber and functional ingredients like lychee extract, apple cider vinegar, L-theanine and B vitamins, but no sugar for just 10 calories. Panel indicates that sucraolose is sweetener, meaning line doesn't rate as natural. New line is starting with 4 flavors, Raspberry Lemon, Cherry Lime, Peach Mango and Strawberry Watermelon, priced at $2.59 per can. Bloom, recall, earlier this year received investment from Austin-based Nutrabolt, which knows something about energy category via its C4 and other entries (BBI, Jan 18). Among other members of Austin food/bev mafia involved in brand as an investor and board members is Clayton Christopher (Sweet Leaf Tea, Deep Eddy Vodka, Waterloo Sparkling Water, CaVu Partners), Pitchbook listing indicates.
It's just beer and that's the way it should be. Milwaukee's hometown paper, the Mil Jnl Sentinel, wrote about how thousands of visitors descended on Milwaukee for Republican National Convention and many happily discovered Spotted Cow from New Glarus. Consumers called it "incredible," "delicious," the paper highlighted. Of course, Spotted Cow can be a discovery brand for any visitor to Milwaukee/Wisconsin, because #1 craft brand in Wisconsin is only available in that one state.
Beer stocks sure ain't great shakes in recent yrs. But could spirits be on the precipice of peak pessimism? Earnings are no doubt in the doldrums with downgrades "between 20-40%" across the segment, but "we think the lions' share" of that drop is now in the rear view, wrote Jefferies analyst Ed Mundy in report this morn. Still, he's taking a "more conservative view" near-term due to uncertainty around recovery timing, dropping estimates another 3-7% (on top of previous 20-40%) to establish "trough earnings."
34% of 18-29 Yr Olds Have Never Consumed Alcohol, 22% Don't Think It Should be Legal: YouGov
About 84% of 1,116 US adults age 18+ said they've ever consumed alcohol, results of recent YouGov poll found. But that drops to 65% of 18-29 yr olds. So over a third of this age group say they've never had a drop. (That's a change, but it's about what you'd expect if every 18-20 yr old had never drank and 21-29 yr olds drank at rates similar to older adults.) Meanwhile, it's the reverse split for cannabis. Only 1/3 of 18-29 yr olds said they've ever used cannabis, these results show. That's well below the half of all adults who said so, and far below the 58% of 30-44 yr olds who report cannabis use.
What's it like these days to navigate fast-changing hemp D9 bev space? Iowa is just one of 50 states but latest developments in regulators' wrangle with Climbing Kites and Day Dreamer brands, as described by our sibling letter Insights Express earlier today, offer an idea of complexities that must be navigated. So here goes.
Talk about grudge matches. As we'd noted in recent months, things had been surprisingly quiet at Chicago-based kefir maker Lifeway Foods, with nothing heard from restive shareholders and no discussion of strategic alternatives co leadership had been pressured to recruit outside advisor to evaluate. But things had continued to simmer below the surface, as became clear today in eruption from alienated family members who still control substantial amount of shares. This morning the disaffected family members - Ludmila Smolyansky, widow of co's founder Michael, and her son and former LWAY exec Edward - issued demand that Ludmila's daughter Julie Smolyansky be replaced as CEO and board member, along with rest of board, including lead dir Jason Scher. In announcement, they also indicated that their newly launched rival kefir co Pure Culture Organics, by their account, had beaten back a lawsuit brought by Smolyansky and her husband that derided it as "a fake company," at cost that might take a bite out of LWAY earnings next qtr. No response that we can see so far from Lifeway. But contentions paint a picture of family that's as dysfunctional as the kefirs themselves are functional.
In dairy coolers where the pretty cold-brewed coffee bottles belie the rough & tumble nature of the segment, Bizzy Cold Brew over past 8 years has carved out a surprisingly durable presence jostling with giants like Danone, Nestle and Chobani. Cofounder Alex French says the brand often is #3 in velocity in its best accts, and overall seems to swap fifth and sixth places with Chobani's La Colombe - depending on who's promoting that period, he noted with a laugh. Now that Twin Cities co's core premise of uncompromised brewing, organic ingredients and robust caffeine has panned out, it's ready to take more assertive stance on marketing via initiatives like $50K giveaway to Bizzy'est Person in America, as determined by consumer votes, and its first loyalty program. And after shying away from complex and expensive Northeast region, Bizzy made it a priority to start building a presence there.
Announcing The RTD Report
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 US from 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.
Throwback Thursday
This week in 2000, Diageo announced it was going to merge its brewing unit Guinness and its spirits unit UDV, in a move that was expected to save co $150-200 mil per yr down the road. "The move makes Guinness Stout a core part of its drink business and largely kills speculation that it could also be sold off," wrote Reuters. Guinness sale now "unlikely," concluded Salomon Smith Barney's Jennifer Solomon. Until then, she thought Guinness "was one of the few candidates which could radically shift AB's profit mix away from the US." That same week, Guinness announced it would lay off ~200 employees in Ireland. Brand was down 4% in home mkt as consumers shifted more towards lagers.
It's Old Style Day!
Lots of customers and bar owners since last Aug happy that Old Style would return to being brewed again in Lacrosse, WI after leaving for Milwaukee in 1999 when Pabst acquired the recipe. Old Style brewed at City Brewing. To celebrate its return, mayor Mitch Reynolds will proclaim today as Old Style Day, reported LaCrosse Tribune. Going forward, Jul 18 will be Old Style Day annually in the city. To mark the occasion there are celebrations planned at bars throughout the city with giveaways of merchandise, t-shirts and tickets to local baseball club the LaCrosse Loggers. Old Style was #1 brand in Chicago in 1980s.