Beer Marketer's Insights
What's it like to inhabit this strange new world of creator brands? At recent Beverage Forum, Emma Chamberlain detailed the journey from being a teenage "coffee girl" who was often asked for advice about where to get a good brew to building out multifaceted CPG co involved in coffee, tea and matcha, adding RTD line that broke in Walmart last year. Onstage with her CEO Chris Gallant - the proverbial adult in the room - she probed the permeable lines between posting videos and brand marketing, and the slippery slope of proliferating alliances with other brands in quest of a broader consumer demo. The chat earlier this month at 2-day event in Manhattan Beach, Calif, was conducted by Josh Wand, founder of ForceBrands exec search/staffing co.
Heineken Silver is again making moves in the Marvel Cinematic Universe, this time teaming up with Deadpool & Wolverine stars Ryan Reynolds and Hugh Jackman in new spot launched today. Ad shows the superheroes setting aside their rivalry thanks to "no bitter endings" from Heineken Silver. It also marks start of a new summer campaign tying Silver to upcoming release of "Deadpool & Wolverine," hitting US theaters July 26.
Tho Boston Beer previously teased plans to test launch its new light lager this yr, now it's rolling out with plans to go national to boot. Sam Adams American Light will start in 15 markets this summer with "national distribution expected in March 2025," Boston Beer announced today. Initial rollout seemingly ramped up a bit from previously planned 9 regions. And while aim is always to scale innovation after a successful test, this time Boston is stating goal for cross-country expansion before it even gets outta the gates.
Sapporo-Stone just completed phase 1 of its expansion project that will double brewing capacity to 700K bbls/yr between Escondido, CA and Richmond, VA facilities, co announced. Phase 1 totaled $20 mil investment into Escondido, adding tanks and packaging lines. Phase 2 in Richmond will begin this fall, expected to be completed by "late summer" 2025, and cost another $40 mil. By then, "all production" of Sapporo for US mkt "will have moved from Canada and Asia to the U.S."
Gulf Dist Bucking Trends on Gulf Coast: Top MC Brands Still Up Strong, Especial & Twisted Too
Biz may be turning nationally with major Molson Coors premium light beers struggling to cycle major gains posted last spring. But that ain't the case everywhere. Major MC and STZ house Gulf Distributing out of AL and panhandle of FL is "still seeing growth over a year ago, both in April and so far in May," SVP of legal and govt affairs and 3rd gen family leader Rebecca Maisel shared during our Spring Conference last wk. "Miller Lite's still growing" for the near 24-mil case distrib and Coors Light is up 16% yr-to-date, she commented.
Several folks say May trends are lookin' better in their respective markets, but that ain't the case in natl scans, at least thru the first couple weeks. Beer sales softened in the week following Cinco de Mayo; $$ slipped 2.7% with volume down 4.6% for 1-wk ending May 12. In this softer wk, AB outpaced total beer with volume down just 3.8%. It's just 1 wk, but that's the 2d week in a row AB gained share of beer volume in Circana. Michelob and Busch families collectively gained ~1.2 share of volume while Bud/Bud Light families collectively shed ~1 share for the latest wk. Tho AB still not clawing back what it lost since Apr 2023, its basically holding share last mo or so. Other Bud Light beneficiary cos declined at steeper rates for the latest week; MC volume slipped 10%, Pabst -12% and Yuengling -16%. And both Boston and HUSA volumes down high-single-digits.
Top 5 Growth Brands Are All Traditional Beers; STZ 2 of Top 5, MC 3; Busch Light Coming On
While top new brands are almost all beyond beer, top 5 growth brands are all traditional beers so far in 2024. Modelo Especial up $146.7 mil, 12.7% in Circana multi-outlet + convenience data thru May 5. That's almost 2x as much as #2 Coors Light, which is still up $78 mil, 10% yr-to-date. But rankings could change, as Coors Light declining for last mo or so, lapping last yr's Bud Light controversy. Similarly, Miller Lite is #3 growth brand, up $42 mil, 5.6% YTD, but also down since Apr. Coors Banquet is #4 and still growing strong. Up $23.8 mil, 21.5% YTD. Rounding out top 5 is Constellation's red-hot Pacifico brand, up $23.7 mil, 24.5%.
NY will be the center of the bev world in events looming on spring and early-summer calendar before things slow down during dog days. Coming up at city's Javits Center Jun 5-6 is tenth annual CWCB Expo, where "cannabis means business," that comes on heels of US move to reschedule cannabis from Schedule 1 to Sked 3 . . . A week later, pair of events roll into town.
With US gov't finally having moved to reclassify cannabis from its Schedule 1 status, Tilray Brands may sell $250 mil worth of shares to fund expanded opportunity. Cannabev & craft beer player based in NY and outside Toronto filed a prospectus supplement with SEC to sell up to that amount of its common stock via an at-the-market equity program, working with TD Securities and Jefferies. Any proceeds would be used not for working capital, it said, but "to fund strategic and accretive acquisitions or investments in businesses, including potential acquisitions of assets in the US and internationally, in order to capitalize on expected regulatory advancements or expansion opportunities" . . . Arcadia Biosciences has sold its higher-fiber, higher-protein GoodWheat brand to Above Food, slotting it into portfolio of other better-for-you foods and ingredients as GoodWheat retains the IP amid portfolio that also includes Zola coconut water brand. It was advised by Lake Street Capital Markets in transaction. It plans to shed further light on deal on conference call on Wed after markets close . . . With Russian regulatory approval in hand, Danone said it's completed sale of its Essential Dairy & Plant-Based Products (EDP) biz there to Vamin R LLC.
Sensing that its shoppers are feeling inflationary strains, Target chain is shaving price of staples like Prime Hydration, Thomas' Plain Bagels and Clorox Scented Wipes ahead of Memorial Day kickoff to summer. It's started with cuts to 1,500 items with designs on getting to 5,000 by back-to-school period at end of summer. These reductions will encompass dozens of national brands as well as Target's private-label Good & Gather and Everspring brands in categories including food/bev (including milk), household essentials and health & beauty products They come "on top of the retailer's everyday low prices," per announcement today.

