Beer Marketer's Insights
Another Soft 4-Wks for Beer in Circana MULC: $$ -1%, Vol -3% Thru May 19; Slowdowns to Watch
After a better start to the year in Q1, beer trends notably softened thru mid-May in natl scans. Beer $$ dipped 1% with volume down 3% for the latest 4 wks thru May 19 in Circana multi-outlet + convenience data. Same trend beer posted for the previous 4-wk period ending Apr 21. About 1 pt softer than Q1, when beer $$ were off just 0.2% with volume down 2% YTD thru 3/24.
Constellation Maintains Medium Term Guidance; No Comment on Current Qtr; Biz Doing "Extremely Well"
As expected, Constellation maintained its medium-term guidance of 7-9% net rev growth per yr in beer division, cfo Garth Hankinson reiterated at Bernstein conference this afternoon. But medium term is thru fiscal 28, so that doesn't say much about current qtr. Yet its current qtr has raised some questions for investors as STZ slowed to mid-single-digit volume growth in Circana scan data.
The bursting on scene of Prime Hydration a few years ago has sent beverage news coverage skittering into all kinds of new directions. A case in point: a lawsuit filed in Texas last Wed that accused a boxing rival of creator Logan Paul's named Ryan Garcia of spewing lies and defamation to his 20 mil social media followers, including that drink contains cyanide and that its marketing execs have burned children. Suit filed by Prime Hydration LLC in US District Court for Northern District of Texas, near Garcia's Dallas base, followed legal letter dated Mar 14 that unsuccessfully asked Garcia to desist. Suit claims defamation, trade libel and other causes, and requests a jury trial.
Ration Ale NA Beer Aims to Raise $2.5M as Brand Ignites in San Diego, Paperboy Ventures Reports
San Diego-based NA beer Ration Ale has landed a spot in Paperboy Ventures' investor connection apparatus as it aims to raise $2.5 mil on a $7 mil pre-money valuation. The round is led by Bochi Investments alongside a handful of strategic CPG angels and entrepreneurs, with $1.5 mil of the round still open, Paperboy reported. Why did Ration Ale make the cut? Paperboy cited leading velocities in San Diego home market, led by Mexican lager style, thanks to use of BrewVo tech system that employs enzymes and filtration techniques to reduce alc content without affecting flavor. It also likes seasoned CPG operators in key roles, including cofounder/CEO Jamie Fay (ex-Gallo, Danone, Mars, Hain Celestial) and sales evp Wendy Pickett (18 yrs at Hain). Ration Ale closed 2023 with $800K in revenue despite major out-of-stocks as demand outgrew its ability to produce. Those limits have been resolved with move to Deschutes as contract partner. As we reported earlier this year, Numerator exec Kyle Kirkpatrick launched Paperboy as effort to connect up & coming CPG brands with investors (BBI, Feb 20). Applicants should be eyein' Series A at valuation of under $20 mil. Investors who're intrigued by written overview and video interview of founders are invited to request a meeting with brand principals and their reps.
Under its new owner of recent years, WTRMLN WTR is venturing back into sports drink sector after earlier effort years ago didn't pan out. Now owned by Caribe Juice, the distinctively branded marque is launching WTRMLN Ade, a 12-oz bottled line that contains rich payload of 600 mg of watermelon-sourced electrolytes, but minus the "junk ingredients" of many sports drinks and half the calories and sugar of traditional lemonade. It's debuting in Lemonade, Strawberry Lemonade and Limeade flavors. It's breaking in Target and Stop & Shop, followed by Whole Foods in Sep, as well as regional retailers in NE and on West Coast. Recall that back in indy days, when brand was recruiting likes of Beyonce as investors, it offered WTRMLN SLCE electrolyte bev that evolved to SportWTR (BBI, Aug 9 2018 and Jun 5 2019) but didn't last long. These days, with fewer marketing fireworks, Caribe Juice CEO Luis Solis is claiming two years of double-digit growth plying 25,000 retail doors. Marketing on WTRMLN and Caribe's core tropical juices continues to be managed by CMO Caroline Kibler, a Danone, Coke and Sprindrift vet who joined 3 years ago. "WTRMLN Ade brings the hydration superpower of watermelon to a category that consumers love but have been walking away from due to the lack of healthful options," she said. "As we looked for a category ripe for disruption, lemonade made sense not only as a popular sports drink flavor profile, but also because peak lemonade season is in summer when consumers need all day replenishment the most." With move it's straying somewhat onto turf of Lemon Perfect, launched by former hoops coach seeking better hydration option for his athletes.
Gatorade Ups Its Game in Biggest Campaign Ever with MJ Asking Once Again, 'Is It in You?'
Gatorade has been suffering $$ and volume declines over past year in tracked channels, but PepsiCo is hoping a certain "it" factor can bump those numbers back up. Soft drink giant is reprising its "Is it in you?" slogan for what purportedly will be largest campaign in brand's 59-yr history, per announcement this morning. That "it," of course, is inner drive once epitomized by Gatorade-colored sweat oozing out of Michael Jordan's pores. For new iteration PEP has brought Jordan back- alongside Caitlin Clark, A'ja Wilson and Jayson Tatum - in campaign updated with all the new distractions that can keep an athlete from reaching her goals. On social media this summer, the athletes - also including Josh Allen, Sydney McLaughlin-Levrone and DJ Lagway - will be cast in a "colored-sweat takeover," old-style, even as consumers can use special filters to turn their own perspiration neon-orange. But the athletes in this iteration be contending with new pressures like clicks, likes and, who knows, maybe NIL deals. Underpinning strategy is research suggesting that 53% of Gen Z athletes who put down their bat, hockey stick or racket cited external factors like social pressure and unrealistic expectations. So new effort attempts "to silence the noise and focus on what's inside," per PEP.
Jones Soda, which has upped its innovation under CEO David Knight, has landed its 7.5-oz minicans in 700 Walmart stores across US, venturing where mainly major CSD brands have gone in trying to hit lower price points and calorie counts. Jones Mini line is starting with its best-selling Root Beer, Orange & Cream, Berry Lemonade and Cream Soda flavors. Launch is being heralded by Jones Cool Bus that will be plying grocers with sampling effort all summer, starting this past week with Bentonville Bike Fest at Walmart's Ark HQ city.
After a spell of austerity following period when co almost shut down 3-4 years ago, Malk Organics has moved back into expansion mode. Flush with $7 mil in new financing, the Austin-based co recently has added trio of plant-based creamers, including its first shelf-stable items (BBI, May 21), an uncommon burst of innovation compared to period when new team under CEO Jason Bronstad hunkered down to address financial stresses caused by unprofitable trade deals, self-production and backlash by users who were incensed at co's use of ingredients like almond butter and natural flavors in its purportedly pure recipes (BBI, Apr 18 2022). Under Bronstad, a vet of Sara Lee, Mike's Hard Lemonade and Mighty Swell Cocktail, that's all been fixed, and now co is back on the front foot. That means it can build out its offerings again - tho always with intention, he emphasized in interview last week - and can rev up marketing machine via initiatives like sponsorship of Major League Pickleball (BBI, Apr 2).
Brooklyn-based Other Half Brewing, IPA-oriented outfit that's expanded to locations from Buffalo, NY, south to DC, has tiptoed into THC bev space with canned line called Oh2 Chill. Produced at co's Philadelphia brewery, the 12-oz slim can entry contains 5 mg of hemp-derived THC (website seems to imply Delta-9) and is positioned as "non-alcoholic THC seltzer." New line, which we encountered over the weekend for sale at Other Half taproom by Brooklyn's Domino Park for takeout-only consumption, claims an onset time of 10-15 minutes for effect lasting 1.5-2 hrs, per postcards stacked around space promoting offering, which a staffer said is available in all co's taprooms. Out in Pineapple Orange Mango, Watermelon Lime and Cucumber Mango, it went for $7 for single can. A 12-unit variety pack is offered for $60. Specific website supporting line posts certificate of analysis registered to OHB CBD LLC of Philadelphia. Co says it ships to all the lower 48 states. Note that Oh2 had been moniker employed for Other Half's hard seltzer, tho it's not clear whether that remains in portfolio.