Beer Marketer's Insights

Beer Marketer's Insights

Anheuser Busch down 15% in Missouri last yr, according to state data. It fell from near 60 share to a still imposing 52 share of volume in state. MO is AB's 2d highest share state among 42 reporting states (MS was higher in 2023). But combo of Bud Light controversy and Yuengling intro led to especially big AB volume and share loss. It was hard hit! Total beer industry volume in MO fell 3% in 2023.

UK's Supreme has acquired the century-old soft drink producer Clearly Drinks for £15 mil ($19 mil). Announcement yesterday indicated that Supreme had picked up Clearly parent Acorn Topco Ltd from local PE shop NorthEdge Capital, which has owned co since 2017. Statement reported by Global Data indicated that deal will bring Supreme's top line to over £250 mil. Unaudited data available for Clearly indicates it did £22.4 mil in 2023 revenue from range of waters, juices, tonics, mixers and coffee bevs sold under brands like Northumbria Spring and Revolution Waves.

As anticipated, Starbucks today entered the in-store energy game via year-round entry that uses iced tea base to "jumpstart" consumers with moderate dose of caffeine. Coming not long after backlash prompted Panera chain to abandon its Charged Lemonade, the Starbucks Iced Energy line is being sold only in 20-oz size the co calls venti, with 180-205 mg of caffeine that matches the uncontroversial amount contained in 16-oz grande size of its Starbucks Cold Brew, as co was careful to note. Tho venti is what the standard Starbucks size range tops out at, recall that Panera had generated storm of criticism and several lawsuits over Charged Lemonade line containing as much as 390 mg of caffeine in its 30-oz size (BBI, Dec 14). It withdrew the line in May (BBI, May 10). Recall that Starbucks energy line had been teased by its new CEO Laxman Narasimhan in recent weeks, with details revealed by one SBUX-watcher who obtained employee training materials (BBI, May 1 and Jun 7). Since then, tho, the Panera brew-haha had prompted some debate over whether Starbucks would move forward. In doing launch, it's playing catchup to rival chains for whom iced energy offerings have long been a mainstay, including Dutch Bros with its popular Rebel entry.

Sparkling bev purveyor Tost Beverages, an early player in current wave of alc-alternatives, has ridden its alliance with Constellation Brands to presence in 12,000 retail doors these days, even as it revs up innovation engine.

Volume trends improved in CSD, bottled water, sparkling flavored water and even in sports drink segments last 4 wks thru Jun 15 in NielsenIQ data reported by Goldman Sachs. Tho energy drink segment facing tougher times amid continued volume declines for Monster and Red Bull and hot challenger brands decelerating a bit.

This month in 2011, as Mass Bay Brewery, more widely known as Harpoon Brewery, was marking its 25th anniversary, founders Rich Doyle and Dan Kenary shared thoughts with media. "The IPA was a transformative product for us," Rich told CNBC. "People bought more of it than we expected, they liked it better than we anticipated," even though it was a "very hoppy beer" at time, while "not so much" compared to craft beers today. Co was started in 1986 and first made a profit in Aug 1992, Rich shared. Both credited relentless effort of educating consumers who were confused about what craft beers were. "Jim Koch and Ken Grossman, all of us had to preach the gospel. By the mid-90's people started to get it," recalled Dan. "Those efforts have been so successful that craft brewers are now dealing with a more discerning customer," noted CBN. "Brewery startups today need to be better quicker. You can't learn on the job. You need to bring it," contended Rich. "If you don't have a great beer right out of the gate, forget it," he added.

Iowa's Peace Tree Brewing recently announced that it'd end brewing operations and keep its taprooms open for the time being (see last issue). But co posted late Fri on social media that "while we had hoped to keep our DSM taproom open through the summer," Sat June 22nd would be its "last day of business" in Des Moines. "We know this is sudden — it is for us too," the post read. Tho "our Knoxville [IA] taproom will remain open through the summer pouring PTB brews while they last, and featuring guest taps to fill in as needed."

CO's Weldwerks is next to dabble in the canned cocktails arena. An all-new brand line, booz, will have two flavors to start, a vodka-based Orange Creamsicle Crush at 10.5% ABV and whiskey-based PB&J Bourbon Smash at 12.1% ABV, co announced. It's being produced by local contract brewer, Sleeping Giant, and will be available in CO at participating retailers starting early July, in time for the holiday weekend. Tho "due to licensing," WeldWerks won't have booz RTDs at its taproom, co noted.

Big Drop brand that took early role in nascent NA beer segment in UK is pursuing unusual model as it aims to grow US presence: seeking out licensing partners among regional brewers who're looking to play in segment without developing their own brand and recipes. It's model it already follows in UK market via tie to In Good Company, brewer of alc crafts Fourpure and Magic Rock (acquired from Lion), which brews Big Drop and supports presence that by now extends to Sainsbury's, Tesco, Waitrose and Morrisons chains, which control half UK grocery biz.

Count Allagash as the latest large craft brewer experimenting with non-alc bevs. Tho it's just dipping a toe in to start with taproom-only release of new Allagash Hop Water in 6pks of 12oz cans. It'll be available exclusively at co's Portland, Maine tasting room beginning this wk, marking the brewer's entry into the "rapidly growing area of hop waters," per announcement. Allagash Hop Water uses water from Sebago Lake and is brewed with orange peel, Citra and Crystal hops as a nod to the flavor profile of co's flagship witbier.