Beer Marketer's Insights
Talking Rain, the Seattle-based marketer of Sparkling Ice, has promoted a coupla key execs. Its evp for people, Veronica Blankenship, has been elevated to chief people & comms officer, with oversight for HR, culture and corporate communications. At co 14 years now, Veronica was credited with strengthening diversity and advancing women into leadership roles to point where leadership team is currently 47% female. Also get a bump is the 12-yr vet Ryan Quinlan, who played instrumental role in building out co's comprehensive national DSD network. He's now svp sales, leading Talking Rain's East Coast sales team and also running the trade marketing team.
Bev incubator LA Libations is partnering with sales agency Advantage Solutions Inc to take its Relentless Trade Solutions merchandising arm national, setting joint venture under name Relentless Advantage. Controlled by Advantage, with 51% stake, alliance combines Relentless' strong foothold with West Coast retailers with Advantage's broader national retail footprint to offer what Libations cofounder Danny Stepper said is first truly national service. While other merchandising firms claim to offer national coverage, they're heavily weighted toward natural channel, Danny noted. By contrast, Advantage claims 3,500+ CPG clients serviced by 12K full-time reps working 90% of America's top retailers and boasting deep relationships at store level, as Advantage CEO Dave Peacock noted. Now, with LA Libations as partner, it gets a pipeline of growth-stage brands at time, Peacock noted, that even large-format retailers like Walmart have become highly receptive to innovative entries. Among Relentless clients that will be managed by alliance are fast-growing Poppi gut pop as well as Plezi, the kids' brand launched in association with Michelle Obama, and Nixie Sparkling Water and Abbot's plant-protein snacks.
It's already looking like one for the annals of viral marketing gambits. Intern named Nicole Wingard at struggling alc-alternative Mixoloshe added reality show element to her efforts on Instagram to smash the brand's mounting accumulation of expiring inventory by informing viewers that if she didn't juice brand's following to 500K by Jun 10 - yesterday - she'd be fired. She came thru in such smashing fashion - pardon the pun - that Mixoloshe, riding new momentum, has rebranded as Smashd. In the process, the brand founded by fashion vet Kristina Roth has provided new role model alongside Liquid Death and Poppi for bev brands looking to break thru the massive clutter both at the store shelf and on social media. The brains behind the initiative, CMO Mike Chambers, who joined co in Dec after career spent outside bevs at cos like Moonbeam and Tunein, has been rewarded with promotion to CEO. And of course Wingard gets to keep her job (which we suspect wasn't in real jeopardy).
The "lifetime prevalence of secondhand harms from alcohol" was 34.2% in 2020, according to a survey of about 8K US adults, authors of a recent study wrote. As that language indicates, ongoing research seeks to draw closer parallels between alcohol and tobacco and their potential to negatively impact folks beyond the user. But the kinds of "secondhand harms" linked to drinking here, including financial and relational impacts, aren't exactly the same as those folks associate with "secondhand smoke," for instance. Further, just 6.2% reported any harm in the past year, a far lower figure. Commentary about past results suggests significantly lower levels of harm in recent years.
In late May, 17 members of the US House Agriculture committee requested additional information from the departments of Ag (USDA) and Health & Human Services (HHS) about their creation of "a new independent review process for alcohol guidance within HHS but outside" the usual Dietary Guidelines for Americans review committee (DGAC). "We disagree with your agencies'" decision "to extract the alcohol guidance from the purview of the DGAC and house the periodic reviews in perpetuity to a committee within" SAMHSA, the lawmakers wrote to Secretaries Becerra and Vilsack. The letter follows similar requests for more info from leaders of a separate House oversight committee to the same Cabinet members as well as questioning of Sec Becerra during testimony on the Hill in April, as we wrote last month.
More States Aim to Get Arms Around Bev Innovations: MI Eyes Crossover Brands; MA Tackles Hemp
One state legislature and another state regulator are among the latest to attempt to get fast-moving innovations in intoxicating bevs under control. In Michigan, a bill pending in the state Senate follows other state attempts to restrict retailer merchandising of alcoholic crossovers of non-alc bev brands, according to a local CBS affiliate in Northern MI. Nearby IL followed VA in taking similar action, following vocal complaints, largely centered around Hard Mtn Dew. Tho that brand not mentioned in this article (which cited "Coke, Sunny D or AriZona Iced Tea" instead), the piece does reference the infamous image of it being stocked "even next to matchbox cars in a display, which obviously is frankly despicable," as MI Beer and Wine Wholesalers Assn's Brett Visney said. Bill is still being considered by committee, where some legislators expressed concerns about the proposal's potential impacts on small-footprint retailers.
CO Legal Cannabis Sales Dropped 31% from 2021 Peak; Still Falling in 2024; Politico Spotlight
Legal cannabis sales in several established recreational markets continue to decline in 2024, as INSIGHTS has reported. Politico recently put spotlight on Colorado, as the "market is coming down hard and it's making other states nervous," article headlined. Indeed, CO legal cannabis sales (recreational and medical collectively) dropped 31% to $1.5 bil in 2023 vs peak in 2021 including 13.5% drop vs 2022, according to state stats. Sales slipped another 10% in Q1 2024 vs yr ago.
Diageo Will Sell Controlling Stake in Guinness Nigeria for $70 Mil; "Transforms" Business Model
Diageo struck deal with Singapore-based Toloram to sell 58% stake in Guinness Nigeria for about $70 mil. Diageo "joining other multinationals who are exiting or reducing their exposure" to Africa's most populous nation, Nigeria, according to Bloomberg. Nigeria "facing its worst cost-of living crisis in decades." Diageo is "creating a new model for Guinness in Nigeria" (i.e. licensed) and "partnering" with Tolaram, which has presence in Nigeria for last 50 yrs. Diageo and Tolaram struck "new, long-term license and royalty agreements," but Diageo retains ownership of Guiness brand. This is "consistent with Diageo's strategy to operate a flexible and asset-light beer operating model," Diageo added.
Beer was soft in tracked off-prem channels this Memorial Day holiday period. Looking at the full picture, beer $$ slipped 2% with volume down nearly 4% for 2 wks thru Jun 2 in Circana multi-outlet + convenience data. That's about where trends ended up for the month of May too. Beer's avg price per case rose nearly 2% to $30.26/case for the 2-wk holiday period. Just 10 of top-50 brand families grew volume: Modelo, Michelob, Busch, Twisted, New Belgium, Pacifico, Cayman Jack, Guinness, Clubtails, Four Loko. NBB just eked out less than 1% growth and Twisted slowed to +7%.
Boston Beer Deal Chatter Briefly Intensifies After WSJ Reports, Suntory Subsequently Denied
Late Friday (5/31) Wall St Journal reported that Boston Beer in talks to sell itself to Suntory Holdings. That sparked a storm of speculation and commentary. But less than a day later, Suntory said it was not in such talks. Its official statement went further: "There is no fact that we are in any negotiations with Boston Beer."

