Beer Marketer's Insights

Beer Marketer's Insights

Joining growing list of breweries tapped for unique, valuable oppy for mentorship and more from Boston Beer, Crowns & Hops Brewing won this yr's coveted Samuel Adams Brewing the American Dream Experienceship, cos announced this wk. The pioneering Inglewood-based beer and lifestyle brand founded and run by Beny Ashburn and Teo Hunter has long punched way above its volume-based weight class in terms of visibility and influence. So count this recognition as yet another feather in the pair's increasingly crowded caps, despite the delays and setbacks they've faced setting up permanent, bricks & mortar shop in their hometown. This is the 13th experienceship awarded by the co, part of its larger mini-grants program for startup food and drink cos.

In the midst of another strong growth year, WA's Schilling Hard Cider isn't resting on its laurels. Co launched an all-new hard lemonade line, "Big Zesty Schilling Hard Lemonade," that's already gaining traction in PacNW grocery chains at a more premiumized pricepoint and higher ABV, potentially broadening the scope and possibilities for Schilling going forward. Cider's "our first love" and "always a super big priority," co-founder/CEO Colin Schilling told CBN, alongside CCO Eric Phillips and EVP of mktg Rachel Thomas. But cider's a "small market" and Schilling is "very growth minded." Ultimately, "if this brand succeeds, it will be bigger than Schilling Cider," Colin stated.

Regional hard cideries' multi-yr growth run showed signs of slowdown and even decline in latest scans. Schilling Hard Cider remains the main exception this yr, still posting strong double-digit growth; $$ grew nearly 19% YTD thru 6/1 in NIQ scans even as trend slowed to +10% for latest 4 wks. It gained over 1.2 share of cider category $$ to 6.7 YTD, making it #2 regional brand and #3 cider brand nationally behind only Angry Orchard and 2 Towns. Its Excelsior imperial cider family and new blackberry flavor are driving growth. (More on Schilling's continued growth and expansion into hard lemonade below.)

Part of United Kingdom's Labour Party's action plan as it seeks to oust Prime Minister Rishi Sunak, and his Conservative Party next month is a goal to create "the healthiest generation of children ever," reported NBC. A key part of that goal is a mandatory ban on sales of energy drinks to children under 16. Ban would be for drinks containing 160 mg of caffeine or more. Currently, "most supermarkets in the United Kingdom already abide by a voluntary ban on the sale of energy drinks to children under 16 and require ID to purchase them," per NBC. If UK were to pass law, it would "join a number of countries that regulate" energy drinks, including Poland and Latvia. "The US, meanwhile, has no such federal regulations - and has struggled to pass restrictions at the state level too," reminded NBC. Efforts to regulate energy drink sales to minors have come up short so far in Maryland, SC, Ind and Conn.

Don't Quit nutrition brand has inked an alliance with multiyear partnership with iHeartMedia that should amplify its message as its expands it energy and protein drinks at retailers like Walmart and Albertsons. Adult nutrition items are on way, too. Co didn't offer many details on initial activation besides noting that its cofounder Jake Steinfeld, the fitness influencer, and NFL player Damar Hamlin and Peloton instructor Kendall Toole will be featured in ads across iHeart's various platforms, which reach 9 out of 10 consumers every month. Don't Quit, of course, was created by Body by Jake fitness influencer Steinfeld (and named after his motto) along with incubation help from LA Libations' Danny Stepper. It's been accelerating buildout after recent Series B round of $10 mil that was led by Madison Square Garden, with other investors that include L Catterton, Sweetwater Private Equity, Grey Matter Capital, who joined earlier investor Keurig Dr Pepper.

Pretty Tasty canned collagen drink came out as winner of BevNet Live Showdown competition this afternoon, besting THC cocktail, ketone-fortified functional drink and 4 other finalists. By now Pretty Tasty is familiar brand to BBI readers, representing unusual effort by Boylan Bottling and its controlling Milstein family to get into new-brand game via partnership with CPG vet Scarlett Leung, tho that connection wasn't disclosed in presentations (BBI, Jan 18). Co has been leveraging Boylan infrastructure to build out brand that's proved to resonate surprisingly not just with younger female consumers than creators initially anticipated but also with males, who see it as a good protein delivery system (10 g of collagen protein at $3.99 per can, 9 g via powder stick).

As shakeout of fast-delivery specialists proceeds, Gopuff is looking like the survivor - albeit with new competition from likes of Uber Eats. What does it take to succeed with bev brand at Gopuff, which has grown to serving 600+ cities? That was focus of BevNet Live session with merchandising vp Max Crowley. His answer: novel items and LTOs that tie into users' avid trendspotting. Crowley is an Uber vet who cofounded a co called Bandit that Gopuff acquired, which brought him to co in late 2020. And recall that overall bevs program there is managed by Anheuser-Busch vet Randy Ornstein.

This week in 1999, speaking at Insights' Consolidation Conference, NBWA chmn Don Klopcic said distrib consolidation lessens political clout. He cited Natl Soft Drink Assn and Wine & Spirits Assn, which suffered big drops in numbers due to consolidation. It's "not coincidental" neither org ranks among Fortune mag's "Power List" in DC, said Don. Meanwhile, NBWA was ranked #24 out of 2K assns. It's "difficult to lobby" Congress or Senate if you don't live in district, said Don. Outsiders "not taken seriously." He noted NBWA was building financial safeguards (raised dues from $10K to $15K to make up for losing 3% of members each yr); was adding assn members, working closer with suppliers and pounding education efforts. Another key: distribs gotta "drill down further into wholesaler member operations" and get gen mgrs, salespeople, drivers, etc politically involved. NBWA had room for growth too he pointed out, given 738 out of 2500 beer distribs didn't belong and 47% didn't donate to PAC.

"The great opportunity no one is talking about is the on-premise," said NBWA chief economist Lester Jones in brief presentation at Encompass meeting in Denver last week. Other panelists/speakers at that conference agreed. Two of 3 new accounts that are opening now are on-premise, according to Lester. What's more, total restaurant sales are projected to be up 5.4% to $1.1 trillion, according to the Natl Restaurant Association. That's a new record. And avg household spent nearly 53% of its food budget away from home last yr, up 10 points from 20 yrs earlier, according to a Wall St Jnl article earlier this week, citing US Agriculture Dept. Restaurants are the "unlikely new real estate darling," headlined WSJ. They've come a long way back in a few short years after so many shut their doors during the pandemic. But even if more $$ going to restaurants, are consumers spending more on alcohol? Maybe they're spending more dining out, but drinking less.

Crossover FMB/seltzer and other alc bev RTDs from different sides of the bev aisle are mostly declining tuff double-digits lately. AriZona Hard Tea, Arnold Palmer Spiked, Cantaritos hard soda and Spindrift Spiked hard seltzer are the few exceptions to the rule these days. Malt versions of BeatBox and Buzzballz are gaining traction too. But in the latest 4 wks thru Jun 1, Simply Spiked (-34%), Topo Chico (-22%), Beast Unleashed (-10%), Jack Daniel's Country Cocktails (-16%), Hard MTN Dew (-46%), and Lipton Hard Iced Tea (-25%) all slipped varying degrees of double-digits, report from Goldman Sachs' Bonnie Herzog shows, citing NIQ data. Sazerac's malt-based Fireball brand was down 4% for 4 wks. Plus, Beam FMBs were down more than 3/4 vs yr ago and Sauza FMBs were discontinued. On the spirits RTD side, Jack Daniel's spirit RTD family dropped 30%, driven by Jack & Coke not cycling, White Claw spirit RTDs sank 46%, Truly RTDs -19% and Fresca Mixed slipped 18%. Sunny D RTDs were down high teens for 4 wks thru May 4, last INSIGHTS saw.