Beer Marketer's Insights
Soda Marketer Sprecher Adds Another Brand, O2 Canned Sports Drink, to Expanding Portfolio
Sprecher Brewery keeps a-rollin' 'em up. Latest target is O2 Hydration canned sports drink, a Columbus, Ohio-based brand in which it's taken minority stake, per several reports in recent days. As part of investment, Sprecher will produce and distribute brand, which contains robust 550 mg of electrolytes but just 1 g of sugar per 12-oz sleek can. Alliance follows on recent moves by Sprecher owner Sharad Chadha to acquire Ooh La Lemon lemonades and Juvee energy drink as it augments its position in craft sodas with range of better-for-you brands (BBI, Oct 4 and Jan 18). Under Chadha's ownership, Milwaukee-based Sprecher has been rapidly diversifying its base via range of opportunistic acquisitions, a bit like Tilray has done in craft beer tho at a smaller scale. We haven't yet heard back to query about deal this afternoon.
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, 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.
It can feel like a bit of a paradox. These days, just because a bev is non-alcoholic doesn't mean that it isn't intoxicating. But often, "when you talk about non-alcoholic beverages," you're talking about products and a market that are "not regulated," administrator of Iowa Dept of Revenue's alc bev division, Steve Larson, commented during this wk's NCSLA mtg in DC. "At the end of the day," folks buy "hemp-infused products" with Delta-8/9 THC or CBD "because they want to change their mood," in his view. "It's a drug," but the state currently has no mechanism for regulating it.
When weighing a multitude of legal considerations about launching a new state for a non-alc beer, many are - shall we say "complicated"? That's word that Best Day Brewing's chief people officer Emily Pence used during panel at regulator confab of Natl Conference of State Liquor Administrators (NCSLA) earlier this wk in Washington. For distribution, Best Day works with more beer houses than not, she reminded. But as an NA, "we don't have to go through beer distributors in the majority of the states," she shared, because "from a legal standpoint" its products are mostly not treated like beer. That means some of the legal considerations the co ponders, especially about distribution, can feel a bit "scandalous," she acknowledged. So, things are complicated and scandalous!
Throwback Thursday
This week in 1975, "another bomb burst" as a result of Olympia Brewing taking over Theo Hamm Brewing. Olympia terminated 8 distribs in WI, 15 in IL, 9 in MO and KS, plus others in parts of MI, IN, IA, MN and ND, noted INSIGHTS. All in, an Olympia exec said 93 of Hamm's midwestern wholesalers had been eliminated. That's on top of 160 Western distribs that were cut in May (TBT, May 4). Some lawsuits had already been filed and NBWA sent letter of protest to Justice Dept. Olympia execs thus far "brushed these actions off like an elephant brushes off flies," wrote INSIGHTS. Consolidations worked for Olympia that yr as shipments grew ~550K bbls, up 25% to 4.3 share. Co grew 9% the following yr but then declined each of next 3 yrs and was down to 3.4 share. By 1983, Olympia was no longer a private co, bought out by Heileman.
Still in very early stage of its launch, Holk Hogan's new light lager brand/company "Real American Beer" is talking a big game and partnering with big name retailers in existing mkts. Co formed "strategic partnership with CUB, Minnesota's largest grocery store," co announced today. That's on top of placements with Walmart, ABC Fine Wine & Spirits, Albertsons, Safeway, Sam's Club, Total Wine & More, and "many others." CUB veep of adult bevs Dave Anglum went so far as to call Real American Beer "already a phenomenon here in Minnesota." Co's "thrilled to play an early part in what promises to be the next great American beverage brand," he added. These kinds of boisterous comments may come with the territory when talking up the hi-profile ex-wrestler's new beer. You certainly don't hear many (any?) retailers talkin' like that about other indie brewers these days.
Regulators, Attys Weed Whack Thru Thicket of Issues Regulating (or Not) Intoxicating Non-Alc Bevs
It can feel like a bit of a paradox. These days, just because a beverage is non-alcoholic doesn't mean that it isn't intoxicating. But often, "when you talk about non-alcoholic beverages," you're talking about products and a market that are "not regulated," administrator of the Iowa Dept of Revenue's alc bev division, Steve Larson, commented during this wk's NCSLA mtg. "At the end of the day," folks buy "hemp-infused products" with delta-8/9 THC or CBD "because they want to change their mood," in his view. "It's a drug," but the state currently has no mechanism for regulating it.
When weighing a multitude of legal considerations about launching a new state for a non-alcoholic beer, many are "complicated," Best Day Brewing's chief people officer Emily Pence commented during a panel at regulator confab NCSLA earlier this wk. For distribution, Best Day works with more beer houses than not, she shared. But as a non-alc, "we don't have to go through beer distributors in the majority of the states," she reminded, because "from a legal standpoint," its products are mostly not treated like beer. That means some of the legal considerations the co ponders, especially about distribution, can feel a bit "scandalous," she acknowledged.
Mark Anthony Brands "Preparing for the Next Wave of Growth," Sez CCO; Depletions Down 0.9% YTD
Mark Anthony Brands trends are "improving," noted chief commercial officer David Barnett, talking to INSIGHTS today. While depletions down 2.5% for 52 weeks, down just 0.9% yr-to-date. MAB thinks it can get back to growth this yr, looking at 0 to 1%, but that's just a start. MAB "well-positioned" to become a growth company again, sez David.
Fast-Moving Tech Makes Social Media "One of the Safest Areas" for Alc Bev Mktg to Not Reach Youth
Many critics continue to argue that youth use of social media makes it an especially ripe channel for alc bev mktg to reach folks under the legal drinking age. Not so, suggested DISCUS chief legal officer Courtney Armour during NCSLA conference in DC this wk. First of all, the makeup of users of popular social media platforms like Instagram, Facebook, X (Twitter) and others all surpass the threshold for of-age viewers set by industry self-regulatory mktg codes. For DISCUS (and Beer Inst) that's 73.8%. And at this pt, at least that much of each platform's user-base is above that level, Courtney showed.

