In this latest installment of Brewbound’s 3 Up, 3 Down with Chicago-headquartered bev-alc consulting and data firm 3 Tier Beverages, product team consultant Stephanie Roatis shared three insights on industry growth, including the continued dominance of Boston Beer's Twisted Tea over hard tea, as well as three underperforming areas across bev-alc scans, such as the loss of share of 4- and 6-packs to singles and 12-packs.

Below is Roatis’ analysis, according to NIQ data through April 22.

3 Up

Hard Tea Growing Up and Out, as Twisted Tea Paves the Way for New Brands

Within the last year, flavored malt beverages (FMBs) have surpassed hard seltzers’ dollar share of total beer (8.5% vs 8.3%, respectively) and is up +20% since a year ago, as the subsegment continues to innovate and outperform expectations. Within FMBs, hard tea experienced a +38% dollar sales increase in the latest quarter, followed by hard lemonade and hard soda. Hard tea brought in just as much absolute dollar growth as traditional FMBs, and is now the second largest “beyond beer” segment. 

Twisted Tea (shorthand “Twea”) currently is the hard tea category, accounting for 91% of hard tea dollars, but it’s also paved the way for a bevy of new entrants to squeeze in via different angles. Twea has been around since 2001, but 11 of the 63 brand families scanning in off-premise retailers in the latest quarter are brand new. Three of those new brands entered the top 10 this past year. Top growing brands are playing on premiumization (Loverboy), higher ABV (Clubtails), line extensions of existing tea brands (Arnold Palmer, AriZona), or chain restaurants entering the off-premise (Bojangles, Sonic). They are all expanding touch points to attract new and existing hard tea consumers as the category grows, and we can anticipate further share transfer from hard seltzer into the FMB (and hard tea) space as a result.  

3 Down

Craft 6- and 4-Packs Losing Share to Singles and Variety Packs

The 6-pack, packaging beer since the late 1930s, has grown to be the predominant pack size in the beer industry. The 4-pack launched in the early 2010s as the craft trendsetter to allow more variety on the shelf. These pack sizes used to be commonplace, but as sessionability, diversifying consumer tastes, convenience channel-heavy purchasing, and the rise of cans over bottles (accelerated by COVID) have grown, single-serves and 12-packs (particularly variety) have taken over. 

Twelve- and 1-packs now make up almost half (49%) of quarterly beer/FMB/cider dollar sales and are the top two most common sizes. Singles’ dollar sales are up +11% largely due to FMBs and imports booming in C-stores, while 12-packs maintained flat sales, thanks heavily to variety packs growing among FMBs (up +64% with 50% of total FMB sales). Both 12-packs and 1-packs are up in distribution; conversely, 6-packs have stayed steady, only going up +0.3 points, while 4-packs have stayed even. 

Become a Brewbound Insider to read the full report. 

The Brewbound team, along with Weekend Insider newsletter writer Sean McNulty, reviews the Brewers Association’s annual craft beer volume data. The team also discusses the latest craft brewery deals, including Funky Buddha and Appalachian Mountain Brewery returning to independent brewery status, and FX Matt buying the Flying Dog Brewery brand. 

Finally, Zoe shares which of the latest hard seltzers and canned cocktails her crew is buying another round of or tabbing out on. 

Listen here.

Today is the first day of Pride Month, commemorating the anniversary of the Stonewall Inn riots and celebrating the LGBTQ+ community. Many companies typically jump to celebrate Pride, borderlining on “rainbow washing,” to push Pride-themed products. But this year, LGBTQ-related promotions and tie-ins are under scrutiny, following the backlash against Anheuser-Busch InBev (A-B) and Bud Light, sparked two months ago after an influencer partnership with a transgender woman. 

So far, there has not been a significant decrease in corporate support for the LGBTQ+ community, according to Axios business reporter Nathan Bomey on today’s episode of Axios Today, the news organization's daily podcast. However, this may be the first year Pride “might cost companies in some areas,” Bomey said. 

“[A-B] panicked and they basically backtracked and said we don’t really want to be part of controversial marketing anymore and I think that this set the stage for Pride Month and a new tone, because we’re seeing other companies coming under pressure for these sorts of relationships,” Bomey said. 

One of those other companies includes retail giant Target, which recently pulled some of its Pride merch off the shelves after social media backlash.

Some craft breweries aren’t shying away from expressing their support this Pride Month. Non-alcoholic beer maker Athletic Brewing has re-released Rainbow Wall Blood Orange IPA, with 100% of the profits going to three LGBTQ+ organizations: The Out Foundation, Out & Equal and San Diego Pride.  

Seattle, Washington-based Pike Brewing has also released Pike Pride , a Helles lager, for another year, with a portion of the proceeds benefiting the GSBA Scholarship and Education Fund. 

“Now more than ever it’s important to celebrate and support the diverse communities around us,” Pike said in a press release. “At Pike Brewing diversity matters, and we are committed to providing inclusivity within our workplace and in our products.”

BeerBoard, a Syracuse, New York-based on-premise data firm, and Encompass, a Fort Collins, Colorado-based management software company, have partnered to create a new integrated technologies platform for bev-alc industry members.

The platform will combine BeerBoard’s ordering, bar management and data and analytics software SmartOrders and SmartBar with Encompass’ distribution (Encompass ERP) and e-commerce software to create a one stop shop for “beverage ordering, inventory and sales,” the companies shared. 

"BeerBoard's partnership with Encompass represents a game-changer for the alcohol industry," BeerBoard founder and CEO Mark Young said in the release. "By bringing together our industry-leading technologies, we will provide retailers, distributors, and suppliers with unmatched insight and control. This will help them optimize their operations, drive revenue, and create a better experience for their customers."

More details here . 

Virgin Radio UK asked the Ted Lasso star Jason Sudeikis a heavy-hitter question this week: Is the beer on his AppleTV show real? 

Disappointingly (but probably best for everyone’s health) it is not, but rather some sort of “near beer,” according to Sudeikis. The actor’s genes may have helped sharpen his fake beer consumption skills, as his uncle is another near-beer drinking legend, actor George Wednt a.k.a, Norm from Cheers! 

So next time you watch Sam Malone pouring up a glass, or the intimidating Coach Beard downing a pint, know it's really near beer in there. 

Watch the clip here.

Join 450+ attendees at BevNET Live on June 14 + 15 in NYC to explore how beverage companies are leveraging brand assets across soft drink and alcohol categories to find new revenue streams. Hear from all-star speakers, sample the latest products, and network with industry leaders. Learn more .

Brewbound’s second Brew Talks meetup of 2023 will return to Boston on July 12. Tickets are available now. 

The full slate of speakers and conversations will be announced soon. The program will include Dogfish Head co-founder Sam Calagione and Castle Island co-founder Adam Romanow. 

Some of the proceeds will go to the Massachusetts Brewers Guild. Follow the link to get your tickets .

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