Plus, CBC attendance declines year-over-year ...͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BrewboundAugust 07, 2024
DAILY BRIEFING
Today's news & insights for the beer industry.
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In this issue

  • 📉 Beer Institute: June Shipments -4.8%
  • 🎰 BA Post-CBC Report: 9,500+ Attendees
  • ☀️ Lawson’s Adds 10th State: North Carolina
  • 🤑 By The Numbers: $65 Million
  • 🍊 J. Wakefield to Close Wynwood Taproom
  • 🎙️ ICYMI: A Mid-Year Beer Report

Gary Fish shares why Deschutes brews with Briess Malt

Sponsored message from Briess

Deschutes Founder/Owner Gary Fish said “For the last 35 years, Black Butte Porter has been the best-selling porter in the nation and Briess has been key to that success”.  We couldn’t agree more. Click to hear Deschutes’ story. Learn more

Today's Top Story

📉 Beer Institute: June Shipments -4.8%, May Gains ‘Wiped Out’

📉 Beer Institute: June Shipments -4.8%, May Gains ‘Wiped Out’

After a month in the black, domestic tax paid shipments of beer recorded a -4.8% year-over-year (YoY) decline in June, according to the Beer Institute (BI), which cited several government sources for its monthly report.

BI chief economist Andrew Heritage wrote: “The first half of 2024 closed out with a soft month of June. Total supply was down -2.6% for the month, but total volume grew slightly in the first half of the year (0.3% year-to-date).”

Domestic brewers shipped 14.4 million barrels of beer in June 2024, compared to 15.1 million barrels in June 2023, according to estimates from the U.S. Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB). This decline plunged domestic shipments farther into the red at -1.9% YoY, compared to -1.4% YoY in May 2024.

Heritage wrote: “The monthly gains of 721K barrels in May were wiped out in June, with a monthly decrease of 727K.”

June marked the second-largest shipment decline of 2024, but is still dwarfed in comparison to March 2024’s -2.4 million barrel decline.

At the state level, 38 states recorded YoY volume declines in June. Washington, D.C., posted the steepest decrease at -16.1%, followed by Delaware (-15.2%), New Hampshire (-14.5%), Michigan (-14.4%), and Washington (-14.3%).

Despite June’s double-digit declines, most of these states have posted low-single-digit declines year-to-date (YTD), with the exception of Washington, D.C. Beer shipments in the nation’s capital have declined -7.5% YoY for the first half of 2024, far more than any other state.

Of the few states that posted volume increases in June, Kentucky led the way with +7.4% more shipments YoY, followed by Wyoming (+5.9%), Rhode Island (+5.8%), Utah (+5%) and Georgia (+2.2%).

Texas leads the way in shipments with 10.8 million barrels YTD, followed by California (9.8 million barrels), Florida (7.2 million barrels) New York (4.5 million barrels) and Illinois (3.7 million barrels).

In imports data, Mexico continues to dominate in volume, with nearly 10 times the volume of the next largest importer YTD, according to Department of Commerce data cited by the BI. 

Brewbound Insiders can go deeper into the data.

 

From the Wire

🎰 BA Post-CBC Report: 9,500+ Attendees, 3,100 Breweries

🎰 BA Post-CBC Report: 9,500+ Attendees, 3,100 Breweries

The Brewers Association reported that more than 9,500 attendees made the trip to Las Vegas for the Craft Brewers Conference April 21-24, including more than 740 exhibitors and more than 3,100 breweries, according to a post-CBC report shared by the trade group.

Attendance decreased compared to 2023, when the BA reported that more than 12,000 industry professionals attended the event that year in Nashville, according to its annual report that year.

Seventeen percent of 2024's attendees were from outside of the U.S., with Canada, Germany, China and the United Kingdom leading the way. 

The BA added that 16% of the breweries in attendance produced fewer than 1,000 barrels of beer annually. 

The trade group also shared results from an attendee survey under “highlights and attendee impressions.” Details on how many attendees offered responses were not shared. 

The top reasons driving attendees to the BrewExpo trade show, according to the BA, were, in order:

  • Networking with colleagues and making new connections – 82%;
  • Getting fresh ideas – 78%;
  • Discovering new and next generational tools, equipment and services – 74%;
  • And learning about developments within the industry – 74%.

The primary attendee topics of interest included:

  • Brewery operations – 29%;
  • Taproom, brewery and brewpub management – 10%;
  • Beer quality – 8%;
  • Sales and distribution – 8%;
  • Marketing and social media – 8%;
  • Leadership – 7%;
  • Ingredients and supply chain – 6%;
  • Packaging breweries (management and marketing) – 4%;
  • Startups – 4%;
  • Finance and accounting – 4%;
  • Beyond beer – 2%;
  • Sustainability – 2%.

The BA also found that 89% of attendees surveyed said they’d “recommend or strongly recommend CBC to others.” The trade group also found that 78% of attendees are “most likely or absolutely will attend a future CBC.”

The 2025 edition of CBC will take place in Indianapolis April 28 through May 1.

The BA also shared “Facts and Figures” from the companion World Beer Cup event. The organization said 9,300 beers from 2,600 breweries in 50 countries were judged by 280 judges, including 103 international judges. The competition awarded 329 plaques and sashes across 110 beer styles. The largest category this year was juicy or hazy IPA, with 326 entries.

 

Going Places

☀️ Lawson’s Adds 10th State: North Carolina

☀️ Lawson’s Adds 10th State: North Carolina

Lawson’s Finest Liquids is opening its first new market in five years. 

The Waitsfield, Vermont-based craft brewery will be entering North Carolina, via Artisan Beverage Group. Artisan will begin cold-chain distribution of core offerings Sip of Sunshine IPA, Little Sip IPA, and Hazy Rays Hazy IPA.

Lawson’s VP of sales and distribution Seth Talmon said in the announcement: “We’ve been viewing the Southeast region as our next opportunity to expand distribution, and, with a partner in Artisan, we are looking forward to our new presence in North Carolina. Artisan’s 100% cold supply chain aligns with our commitment to providing the freshest, finest brews to beer lovers everywhere we distribute. 

“Their small, family ownership model and attention to quality make them a great partner for us.”

Lawson’s CEO Adeline Druart added: “Expanding our geographical footprint has two major impacts on our business and our team: we are adding new growth opportunities, to reach new audiences and introduce our Sunshine family to more craft beer lovers, and as we grow we also grow our impact. As a proud B Corp Certified brewery, every major business expansion is meaningful for us and for the communities that receive donations from our Social Impact Program.” 

North Carolina will be Lawson’s 10th state, joining Vermont, Connecticut, Massachusetts, Maine, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island.

 

By The Numbers

🤑 $65 Million

🤑 $65 Million

The estimated amount of money Constellation Brands has spent on TV advertising for Modelo Especial through July, making it the beer category’s largest advertiser, according to iSpot ad spending data analyzed by Marketing Brew.

The outlet reported that the Modelo brand has been the beer “category’s biggest spender since roughly the second quarter of 2020” and spent $155 million on TV ads in 2023.

Marketing Brew, citing iSpot data, added that the beer category’s “total linear national TV ad spending declined from $917 million in 2019 to $734 million in 2023, a drop of about 20%,” which it attributed to Anheuser-Busch InBev’s Budweiser and Bud Light brands cutting TV ad spending by 77% and 38%, respectively, from 2018 to 2023. 

In late July, Modelo Especial became the top volume brand in market research firm NIQ's enhanced beverage-alcohol coverage data. 

Modelo Especial held an 8.7% share of beer category case volume year-to-date (YTD) through July 13 in NIQ-tracked off-premise retailers, overtaking Bud Light (8.2% share). Modelo Especial gained +1% share YTD, while Bud Light has lost -1.6% share.

In the previous YTD read through July 6, Bud Light (8.5% share) held the advantage over Modelo Especial (7.8% share). 

Modelo Especial also holds a lead on dollar share of the beer category YTD (9.3%) over Bud Light (7%) in scans.

 

Openings and Closings

🍊 Florida’s J. Wakefield to Close Wynwood Taproom in October

🍊 Florida’s J. Wakefield to Close Wynwood Taproom in October

J. Wakefield Brewing will close its taproom in the Wynwood neighborhood of Miami this fall after nearly a decade, the Florida brewery announced Tuesday on social media. 

The last weekend for the J. Wakefield in the space will be October 26-27.

The brewery wrote: “This decision has not come easily, but the ever-changing landscape of the neighborhood has presented challenges that we can no longer navigate effectively.”

J. Wakefield said it is seeking a new location and will continue brewing in the meantime, with special events planned up until the closing of the taproom. 

“We will continue to craft the same quality beers you have come to love and will stay actively engaged in the community through events, tap takeovers, and collaborations around the city,” the company wrote. 

The brewery thanked its supporters, as well as current and former employees.

“Thank you once again for being such a crucial part of our journey. We will miss you dearly, but we look forward to seeing you at our upcoming events, and of course, at our new location in the near future,” the company added.

J. Wakefield produced an estimated 4,227 barrels of beer in 2023, according to the BA.
 

ICYMI

🎙️ A Mid-Year Beer Report; Plus Earnings SZN Begins

🎙️ A Mid-Year Beer Report; Plus Earnings SZN Begins

How is beer doing at the halfway point of 2024? Brewbound reporter Zoe Licata shares highlights from not one, but two mid-year beer reports. Zoe breaks down the Brewers Association’s mid-year craft report, as well as a total beer overview from the National Beer Wholesalers Association and Fintech halfway through 2024. 

Plus, Zoe and Brewbound editor Justin Kendall discuss the latest earnings reports from Boston Beer and Tilray Brands, including nuggets on Twisted Tea and Truly’s hold on Boston’s portfolio and improvements in Shock Top’s trends.

Justin also relays his experience on the Voodoo Ranger pirate ship and spotting Stone Brewing co-founder Greg Koch’s graphic novel at San Diego Comic-Con.

Listen here or on your preferred podcast platform.

 

Save the Date

📣 Brewbound Live 2024 Pitch Slam: Apply to Pitch Your Beer or Bev-Alc Startup This December

📣 Brewbound Live 2024 Pitch Slam: Apply to Pitch Your Beer or Bev-Alc Startup This December

The Brewbound Live Pitch Slam returns to the Brewbound Live business conference on December 11 + 12 in Marina del Rey, California. The annual competition provides an opportunity for startups in beer and beverage-alcohol to pitch their product, generate industry awareness, and open the door for new partnerships.

How It Works:

Emerging beer category brands will provide attendees a look into the future of the industry. The competition kicks off on Day 1 of Brewbound Live with 12 semifinalists presenting rapid fire pitches to a panel of expert judges. Six brands will advance to the final round, taking place on Day 2. The judges will then decide who takes home the winning title and a Brewbound advertising package valued at $10,000.

Who’s Watching:

Brewbound Live attendees watch in-person while industry experts tune into the free livestream on Brewbound.com. Pitching in the competition allows you to reach thousands of investors, retailers, suppliers, service providers, and fellow brewery leaders looking to see what’s next in the world of beer. Past winners include Sunboy, Funkytown Brewery, Lunar Hard Seltzer, Crowns & Hops, Willie’s Superbrew, Novo Brazil, Border X Brewing, and Wynwood Brewing Company. Check out a past competition to see what it takes to win.

Beyond the Pitch:

Following their on-stage presentations at the Brewbound Live Pitch Slam, participants have the opportunity to form connections with industry decision makers. The competition opens the door for deeper, more meaningful conversations that extend beyond introductions.

How to Apply:

Startups producing beer, non-alc beer, cider, hard seltzer, hard kombucha, hard tea, hard coffee, and other malt/wine-based alcoholic beverages are invited to apply now. There is no cost to participate in the competition. The application deadline is September 30.

Apply to Participate in the Brewbound Live Pitch Slam >>

To extend your presence beyond attending, view our Brewbound Live sponsorship opportunities.

 

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