• 🚨 Sapporo/Stone CEO Change Coming
• 🍎 CiderCon: Bubble Tax Modernization Act
• 🤝 New Jersey Brewers Guilds Merge
• 💸 Monster to Take CANarchy Impairment Charge
• 👨‍💼 Ex-New Belgium CEO Joins Jiant’s Board

A year and a half after guiding Stone Brewing through its acquisition by Sapporo, CEO Maria Stipp is moving on.

Stipp joined the Escondido, California-based craft brewery in September 2020 following the departure of her predecessor Dominc Engles earlier that summer. She steered Stone, the seventh-largest independent craft brewery in the country by volume at the time, through the process of being acquired by Japanese brewing giant Sapporo, a deal that was announced in June 2022 and closed in August 2022.

Stipp said: “It is a bittersweet moment. Unlike many acquisitions, we have the privilege of keeping our leadership team intact. This has allowed us to fully integrate and build a future where Sapporo and Stone are indeed better together. It's been really challenging, fulfilling and exciting.”

After Stipp departs on January 26, CFO Zachary Keeling will serve as interim CEO while the company searches for a permanent replacement. Keeling was promoted to chief financial and strategy officer in October 2023.

Keeling said: “Stone Brewing has been in my life for the better part of a decade. It's so important to me from a company and people standpoint, and I'm super excited and even more passionate about what we can do with Sapporo too. I think one plus one definitely equals three here. I think we're incredibly strong together, and I'm just excited to be able and humbled to step into this role and continue it forward.”

In addition to Stipp’s departure, Sapporo-Stone chairman Kenny Sadai will depart the U.S. to return to Sapporo Breweries later this year. Hiro Kitaoka, president and CEO of Sapporo-owned Sleeman Breweries in Canada, will become vice chairman of Sapporo-Stone in the U.S. 

Stone produced 376,347 barrels of beer in 2022, according to the May/June 2023 edition of the Brewers Association’s (BA) New Brewer magazine. Production data for 2023 is not yet available.

In off-premise scan data, the Stone brand family was the 14th largest among craft brands, according to market research firm NIQ, which includes brands that are excluded from the BA-defined craft brewer data set.

Insiders can read more about the acquisition, Stipp's tenure and Stone's 2023 off-premise performance.

The American Cider Association (ACA) has named U.S. Rep. Earl Blumenaur (D-OR 3rd district) a 2024 Apple Advocate.

ACA CEO Michelle McGrath announced the award Thursday during the opening session for CiderCon – the ACA’s annual business conference and trade show – held this year in Portland, Oregon. 

Blumenauer, a Portland-native, has represented Oregon’s third congressional district since 1996, and in 2015 co-sponsored the Cider Industry Deserves Equal Regulation Act (CIDER Act), which widened the definition of hard cider to include ciders made with pears (a.k.a. perries), expanded the limits on ABV from 7% to 8.5%, and increased the maximum carbonation level for hard ciders and perries before higher tax rates are imposed. However, the CIDER Act did not include all ciders and other fruit fermented beverages, requiring many cideries to produce lower-carbonated products to avoid the “bubble tax.”

In his pre-recorded acceptance speech, Blumenauer announced the introduction of the Bubble Tax Modernization Act of 2024, which seeks to eliminate heightened tax rates on all cider, wine and mead under 8.5% ABV. Blumenauer has co-sponsored the bill with Rep. Mike Kelly (PA-R).

The existing tax rate for low-ABV carbonated fruit wine, cider and mead is $3.30 or $3.40 per gallon, while low-ABV carbonated grape wines are taxed at $1.07 per gallon. The proposed legislation would raise the maximum carbon dioxide allowance for fruit beverages from 0.39 milligrams per 100 milliliters, to 0.64 milligrams, allowing all fruit-based bev-alc below that maximum to be taxed at $1.07 per gallon.

Insiders can read more coverage from the CiderCon opening session, including remarks from McGrath on challenges the segment is facing. 

On the heels of a huge victory for New Jersey craft brewers with the signing of taproom reform into law, the Garden State’s two craft brewing-focused trade associations have announced plans to merge. 

The Brewers Guild of New Jersey and New Jersey Brewers Association will finalize their merger next week during a meeting of the state’s breweries, brewpubs and breweries-in-planning at Bolero Snort Brewery.

Bolero Snort owner and Brewers Guild of New Jersey board member Scott Wells said: “Uniting into a single unified voice will make it easier to work with external partners, including the state’s Legislature and regulatory bodies, and focus on the matters that impact the entire industry the most.”

The combined association will begin operations as the Brewer's Guild of New Jersey. Wells and Michael Kane of Kane Brewing will retain their seats on the executive board of directors. They’ll be joined by New Jersey Brewers Association board members Krystle Lockman of Axe and Arrow Brewing and Denise Ford Sawadogo of Montclair Brewery.

Alexis Degan, who led the New Jersey Brewers Association, will assume the role of executive director. Eric Orlando, who served as the executive director of the Brewers Guild of New Jersey, will remain with the group as a government affairs counsel. 

In February 2018, the Brewers Guild of New Jersey was formed by nine breweries that accounted for more than 75% of the state’s craft beer production. The splinter association formed with the goal of better representation on legislative matters.

During an investor meeting and business update earlier this week, Monster Energy leaders shared that the company expects to take an impairment charge in its Q4 earnings on assets from the $330 million acquisition of the CANarchy Craft Brewery Collective and its related infrastructure in January 2022. 

Monster co-CEO Hilton Schlosberg cited the “challenging” environment around craft beer and hard seltzer as the reason for the expected write down on “certain non-amortizing intangibles.”

While discussing the CANarchy portfolio, co-CEO Rodney Sacks said the company is also “rationalizing some of it.” He did not provide specifics on which brands were being rationalized.

Sacks added that CANarchy will be focused on products with national potential. He pointed to Cigar City’s Jai Alai IPA and the Dale’s family of brands, including a recently launched light lager, as examples with growth potential and upside. 

Monster’s bev-alc ambitions are pinned on The Beast Unleashed and Nasty Beast flavored malt beverages.

Former New Belgium CEO is joining the board of Jiant, a Los Angeles-based ready-to-drink alcohol maker. 

Fechheimer exited New Belgium in August 2023, after six years of leading the craft brewery. He’s since worked as a senior advisor for Boston Consulting Group.

Jiant co-founder Larry Haertel Jr. in an announcement called Fechheimer’s board appointment “a pivotal moment for Jiant.” 

“His outstanding leadership and vision in the beverage industry, especially during his tenure at New Belgium, align with our drive for innovation and ambitious growth. Steve's partnership is not just an asset but a transformative force for Jiant's path forward. We’re honored to have him in our corner.”

Fechheimer added: “The achievements of Larry and [co-founder] Aaron [Telch] at Jiant are truly commendable. Their dedication, innovative mindset, and resilience strongly resonate with me and my own experiences. 

“I see huge potential for Jiant, mirroring the early stages at New Belgium where a solid foundation and a spirit of innovation spurred significant growth and industry leadership. Their unique approach to hard tea is particularly noteworthy and exciting. I'm eager to contribute to this dynamic team and steer Jiant towards a bright and prosperous future."

During his New Belgium tenure, Fechheimer guided the craft brewery to more than 1 million barrels in annual production behind the Voodoo Ranger IPA line. His tenure included the sale of the brewery to Kirin-owned Lion Little World Beverages, the acquisition of Bell’s Brewery and the ascension of Voodoo Ranger Imperial IPA as the top-selling IPA and second best-selling craft beer in the U.S.

Fechheimer’s board appointment follows a $6 million Series A funding round for Jiant. The company is now pushing for national distributions of its hard tea line. 

Jiant previously made a splash with the additions of industry veterans David Macon, as chief sales officer, and Andrew MacLeod, as senior director of national accounts.

Drizly will be no more as of March. The week started with Uber announcing plans to shut down the e-commerce alcohol delivery platform. Brewbound editor Justin Kendall and weekend newsletter writer Sean McNulty discuss the decision and why it’s another blow for brewers. (Co-hosts Jess Infante and Zoe Licata are on the road this week.)

Plus, the duo discuss full-year 2023 craft beer scan data, the narrative (or lack thereof) for craft heading into 2024, and why the early read isn’t great. 

Other topics include: New Jersey finally giving the state’s craft breweries a break, Tilray wilding out with new products and Lawson’s trying to get the low-ABV Beach Party started.’

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