| | | | | | In today’s issue | 🚨 BA CEO Bob Pease to Retire • 🍹 Gallo Expands Luxury Portfolio • 🫗 Bissell Brothers to Close Milo Location • 🔎 Allegations Against Hulk Hogan’s Beer • 📉 Circana: Total Bev-Alc -10% vs. 2023 • 🆕 Rogue Refreshes Packaging |
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| Today's Top Story | | | Brewers Association (BA) president and CEO Bob Pease will retire next year after more than three decades with the trade association, the organization announced today. Pease will step down from his role in early 2025 “once his successor is in place,” according to the announcement. The BA’s board of directors has retained Kittleman & Associates, a search firm dedicated to executive searches for nonprofit organizations, to lead the recruitment of a new president and CEO. Pease said in the release: “After careful consideration, I believe it is time to help this great association transition to new leadership and for me to move on to new endeavors. Over the last three decades, I have witnessed the Brewers Association grow from a small, narrowly focused association to one that is now a power player on important issues facing the industry domestically and internationally. “Throughout my time at the helm of the Brewers Association, we have helped our members navigate explosive growth and unprecedented challenges. In doing so, we have put the BA on the map as a political force. Representing this iconic community, its brands, and the incredible people who embody passion in their craft has been an absolute honor. I look forward to seeing continued success in the industry.” BA board president and Right Proper Brewing co-owner Leah Cheston called Pease “an unwavering advocate for small and independent brewers.” “He spearheaded the organization during a critical time for the industry, growing the craft beer market share to 13% and supplying countless tools to help the craft brewing community thrive, from professional resources and tax savings, to hosting world-class events,” she said in the release. “We thank Bob for his steadfast leadership and look forward to partnering with him to ensure a smooth transition and search for his successor.” Pease has spent more than 32 years at the BA, and has served as CEO since 2014. He first joined the trade group in 1993 as a customer service manager, and later held roles including operations director, vice president and COO. Insiders can read more about Pease’s tenure and other recent movements at the BA.
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| | From the Wire | | | Spirit of Gallo is adding Derrumbes Mezcal into its expanding super premium portfolio, while returning to top-end rum with an investment in Ron del Barrilito.
The wine-and-spirits conglomerate made strategic investments in the brands, but financial terms or the nature of the stakes were not disclosed. Gallo will now exclusively import both brands. Established in 1880 and considered Puerto Rico’s oldest rum, Ron del Barrilito puts Gallo back in the luxury rum game; it previously imported Venezuelan brand Diplomatico until its acquisition by Brown-Forman in 2022. The high-end rum now joins liqueur RumChata and coconut water-based Rum Haven in Gallo’s rum portfolio. Higher-end segments have been a bright spot for rum in recent years, and volumes are projected to grow at an 8% compound annual growth rate (CAGR) by 2027, according to IWSR data. Luxury brands, as well as emerging craft labels, are helping to change the spirit’s reputation as it catches up to the premiumization of other spirits like whiskey and tequila. Insiders can go deeper into Gallo’s strategy. |
| | | | Portland, Maine-based Bissell Brothers announced in late June plans to close a satellite outpost in the founders’ hometown of Milo.
Noah, Peter and Hester Bissell wrote: “While this may feel sudden, in recent years it's become clear that continuing to operate Three Rivers to our standards has become financially unsustainable. Our family has made this decision after exhaustive analysis, discussion, and exploration of solutions. At the end of it all, we arrived at the conclusion that there is no choice but to close. “This reality has been incredibly hard to face. Three Rivers is a big source of pride for all of us, company-wide, and ending the jobs of a group of individuals who have been Team Bissell from day one is unbelievably gutting.” Bissell Brothers Three Rivers will cease operations at the end of the summer after six years in business. The location is expected to operate normal hours, although that’s subject to change. The summer concert series at the Milo space has also been canceled, with the exception of ticketed events still on the schedule. The Bissells wrote: “Endless appreciation goes out to the town of Milo and Piscataquis County for an incredible six years of fantastic support and energy. We would do it all over again in a heartbeat if we could. We love you, Three Rivers. Forever and always.” |
| | | | Social media influencer Essence Jenai alleged in two TikTok posts that Hulk Hogan’s Real American Beer fired her after one day on the job because she is Black. In one post, Jenai claimed that she was fired and replaced by white brand ambassadors the next day.
Jenai wrote in a social media post: “POV: Hulk Hogan paid you to be a brand ambassador and canceled your contract the next day because he realized you were a Black brand ambassador.” Real American Beer issued a statement denying the allegations: "We are deeply troubled by the false rumor circulating on social media that a brand ambassador hired by a third-party marketing agency was terminated by Hulk Hogan for racial reasons. Real American Beer simply terminated its short-term relationship with the third-party marketing agency. “Hulk Hogan was not involved in that decision, and race was not a factor. We are in communication with the agency in an attempt to clear the misunderstanding and incorrect information, and believe that this false statement will be withdrawn." This is not the first time Hogan, real name Terry Bollea, has faced allegations of racism. Bollea came under fire in 2015 after audio from a 2012 interview surfaced in which he used a racial slur, as well as a leaked sex tape in which he also used the language. At the time, Bollea apologized, telling ABC News his use of the offensive language “was unacceptable” and Good Morning America that he is “not a racist.” The WWE severed ties with Hogan at the time, but brought him back three years later. Even as the organization welcomed him back, there was skepticism by WWE wrestlers about his sincerity, contrition and resourcefulness. Hulk Hogan’s Real American Beer launched in June across Florida, Missouri, Minnesota and Colorado with distribution through Breakthru Beverage. The brand was expected to reach 17 states with placements in ABC Fine Wine & Spirits, Albertsons, Safeway, Sam’s Club, Total Wine & More, Walmart and U.S. military bases, as well as on-premise venues such as Hard Rock Hotels and Casinos and select Hooters locations. |
| | Data Dive | | | Circana EVP for beverage alcohol Scott Scanlon cautioned that the latest weekly comps for the week ending June 30 run up against 2023 holiday weekend comps and a Tuesday July 4.
“Expect to see a strong week next week offsetting current negative trends,” Scanlon wrote. Total bev-alc off-premise dollar sales declined -10% compared to 2023, but increased +1% compared to last week in absolute dollars. Beer declined -11% compared to a year ago, but Scanlon wrote that benchmarking against last year isn’t a good comparison due to the timing of last year’s holiday. These trends “are likely to reverse next week,” he added. Imports declined -6% in the one-week period compared to last year. Domestic sub premiums also declined -6%. Only two of the top 50 beer brand families increased off-premise sales in the one-week period compared to last year: Constellation Brands’ Pacifico (+8%) and Geloso Beverage’s Clubtails (+15%). Even the Modelo brand family sales declined -2% during the week, but held onto the top spot. Spirits dollar sales declined -9.5% in the one-week period. High Noon increased sales +9% to hang onto the top spot in spirits and Scanlon expects sales to “pop next week.” BuzzBallz sales increased +40%, placing the brand on the edge of the seventh spot in spirits, just trailing Smirnoff. Meanwhile, BeatBox’s triple-digit sales growth continued (+106%). Ready-to-drink sales declined -13% compared to last year. |
| | ICYMI | | | Molson Coors-owned Leinenkugel’s is making its flagship Summer Shandy a year-round offering. Leinenkugel’s president Tony Bugher and John Leinenkugel discuss why the move represents the company getting out of its own way, how big the brand is for its business and how they plan to support the brand in the colder months. But first, ReserveBar CEO Derrick Correia offers thoughts on the post-Drizly state of e-commerce and how bev-alc companies can win in the digital sphere. Listen here or on your preferred podcast platform. |
| | Save the Date | | | The Brewbound Live business conference returns December 11 and 12 in Marina del Rey, California. Brewbound Live will feature beverage-alcohol industry leaders taking part in business-focused conversations, data presentations, networking and much more across two days at the Marina del Rey Marriott. Speakers for this year’s conference include: - Russian River co-owner Natalie Cilurzo;
- Deschutes Brewery CEO Peter Skrbek;
- National Beer Wholesalers Association chief economist and VP of analytics Lester Jones;
- Draftline Technologies founder and president Jennifer Hauke
- Gulf Distributing senior VP of legal and government affairs Rebecca Maisel
- 3 Tier Beverages consultant Mary Mills
- NIQ director of thought leadership for bev-alc Kaleigh Theriault
- Bump Williams Consulting VP of business development BK Krueger
- Full Circle Brewing owner Arthur Moye.
Additional speakers will be announced in the coming weeks. Register for Brewbound Live 2024. |
| | Parting Shot | | | Rogue Ales and Spirits is updating its beer packaging. The 36-year-old craft brewery shared comparison shots of the new cans and 6-packs of Batsquatch hazy IPA, Hazelnut brown ale and Honey Kölsch with the old packaging.
The new designs show Oregon landscapes, including “the woods of Mount St. Helens” and “the rolling fields of mountain wildflowers.” Rogue is also introducing a new variety pack with the aforementioned core offerings, as well as Berry Blonde Ale (4.7% ABV). |
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