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DAILY BRIEFING | Today's news & insights for the beer industry. |
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| In this issue | - 🍊 Boston Beer to Add New Non-Alc Brand
- 📜 NJ Governor Vetoes Liquor Reform Bill
- 🐮 New Glarus on Pace for 230K Barrels
- 🚛 Sheehan Family to Sell Craft Vermont
- 🍸 A New Pernod Ricard North America CEO
- 🥃 An On-Prem Premium Mocktail Contender
- 📈 CGA: The On-Premise Roller Coaster
- 🍎 Parting Shot: Creator Launchpad Update
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| Today's Top Story | | | Boston Beer Company is adding another non-alcoholic (NA) brand to its portfolio, expanding a ready-to-drink (RTD) offering and discontinuing another. The company announced today a series of moves with its “innovation incubator” brands – new-to-world offerings launched in limited test markets before either going wider or being discontinued. Included in the announcement is the impending arrival of General Admission, a NA offering made from a blend of 40% NA beer and 60% fruit water. The brand was teased in label approvals over the summer. General Admission will hit shelves in February in three test markets – Albany, New York; Raleigh, North Carolina; and Indianapolis, Indiana – and nationwide via direct-to-consumer shipping, where legal. The first four flavors include: Lemon Lime, Orange Ovation, Raspberry Remix and Grapefruit Groove. 🌅 Loma Vista Tequila Soda Discontinued The sun is setting on Loma Vista Tequila Soda, Boston Beer’s first tequila-based RTD. Boston Beer introduced the ranch water-style Loma Vista (5.5% ABV) in October 2022. However, the company said Loma Vista “was not gaining enough traction” to continue. Insiders can read more, including expansion plans for Slingers Signature Cocktails, Boston Beer’s high ABV, single-serve, malt-based RTD. |
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| From the Wire | | | New Jersey Gov. Phil Murphy has conditionally vetoed a proposed liquor license reform bill that included eased restrictions on local breweries and taprooms, NorthJersey.com reported. New Jersey breweries have been expecting this move. The bipartisan legislation was sent to Gov. Murphy’s desk in July. However, the governor made clear in September that he planned to send the bill back to lawmakers following November elections, calling for more comprehensive reform, “not a piecemeal approach.” Gov. Murphy said in a statement following his conditional veto that the bill “does not sufficiently enhance our antiquated liquor license laws.” He instead called for “a more modern approach to these Prohibition-era laws to reflect the current economy and to better support present and future business owners.” He continued: “One of my goals in calling for comprehensive liquor license reform was to ensure that our liquor laws are both modern and fair. Our craft alcohol industry continues to grow throughout the state, and our beer and wine manufacturers, distilleries and meaderies deserve our support to help them succeed.” The Brewers Guild of New Jersey and its members have been calling for change since special license conditions were enacted in July 2022. Those conditions included restriction on to-go beer sales, the barring of operating a restaurant or selling food and limitations on brewery events to 25 per year. Said special conditions were passed in 2018, but were largely unenforced until last summer due to the COVID-19 pandemic. Insiders can catch up on previous coverage here. |
| | | | Wisconsin’s New Glarus is tracking toward 230,000 barrels of beer produced in 2023, with Spotted Cow farmhouse ale accounting for 30% of that output, according to a Wisconsin State Journal profile of the now 30-year-old craft brewery. If those projections hold, New Glarus will finish the year in line with the brewery’s 2022 output of 231,395 barrels produced, when the company finished the year as the 12th largest Brewers Association-defined craft brewery by volume. Other notes from the profile: - New Glarus posted sales of $64 million in 2022;
- The brewery employs 125 workers year-round;
- Employees own 25% of New Glarus through an employee stock ownership plan instituted in 2014 and could take majority ownership in the next decade;
- The brewery hosts around 100,000 visitors annually.
New Glarus is also outpacing the overall beer category in scans, with dollar sales in the last 52 weeks (ending November 4) up +2.2% year-over-year, and volume up +1.4%, according to NIQ data shared by 3 Tier Beverages. In the last 13 weeks, trends have accelerated, with dollar sales up +7.8% and volume up +4.2%. |
| | | | Sheehan Family Companies is in the process of selling another craft-focused branch. Craft Vermont is being sold to Farrell Distributing (a Molson Coors distributor) and Baker Distributing (an Anheuser-Busch house), in a transaction expected to close in February, according to Beer Marketer’s Insights. The deal amounts to 400,000 cases of beer and non-alcoholic beverages, including craft brands from The Alchemist, Burlington Beer, Boulevard Brewing, CANarchy, Hermit Thrush, Jack’s Abby, Lagunitas, Oxbow Brewing, and Victory Brewing, as well as non-alcoholic producers such as Athletic Brewing, Hoplark and Liquid Death, among others. Farrell Distributing CEO David Farrell confirmed to Brewbound the planned acquisition of “potentially 25 suppliers” and “an aggregate of around 250,000 cases.” Baker is expected to take on The Alchemist, brewer of the popular Heady Topper, amounting to around 125,000 cases, with cold-chain distribution, according to Insights. Sheehan has offloaded several of its craft distributors this year, including Hunterdon in New Jersey to five A-B wholesalers; Legends Distributing in Maryland and Washington, D.C.; Craft New Hampshire to A-B wholesalers; and Craft Rhode Island to Molson Coors house C&C Distributors. The company offloaded Craft Maine in 2022. Sheehan’s remaining distributors include: Craft New York, Craft Massachusetts, Union Beer Distributors (NY), Tri-Valley Beverage (NY), T.J. Sheehan Distributing (NY), Specialty Beverage (VA), Seaboard Products (MA), L. Knife & Son (MA), Craft Connecticut, Beer House Distributors (KY), and Beechwood Sales & Service (WI). Insiders can read more here. |
| | | | Conor McQuaid will take the helm as CEO of Pernod Ricard North America at the start of the new year. McQuaid, a 25-year veteran of the company, will succeed Ann Mukherjee, who has stepped down to focus her time and energy on her family’s well-being, according to a statement. Mukherjee was the first woman and person of color to lead Pernod Ricard’s North American unit. McQuaid had served as executive vice president of sustainability and responsibility for communications and public affairs since July 2022. He is also a member of Pernod Ricard’s executive committee. He previously served as chairman and CEO of Irish Distillers (Jameson) and executive vice president of global business development. Pernod Ricard chairman and CEO Alexandre Ricard said in a statement: “The U.S. continues to be our No. 1 market, and Conor brings a unique skill set from his 25 years at Pernod Ricard that is perfectly suited to continue our transformation in such a dynamic market. “His leadership and the instrumental role he played in the success of Jameson, particularly in the U.S., underscore his ability to further advance Pernod Ricard’s ambitions in North America.” Insiders can read more, including a statement from the Distilled Spirits Council of the U.S. |
| | | | When Tilden, a 750 ml ready-to-serve mocktail debuted at the start of the year, the founders used flask-sized sample bottles to pitch their new product in sales meetings. But as non-alcoholic (NA) cocktails begin to drive the alternative spirits category, Tilden has officially introduced the smaller formats to capture more trial and premium occasions. Launched in February, Harvard Business School grads Vanessa Royle and Mariah Hilton Wood spent two years developing a NA cocktail intended to help consumers have “meaningful social experiences.” Social is a key word for the brand, as its messaging centers on its beverages being served over ice and garnished before savoring amongst friends. Their two zero-proof cocktails, both priced at $35, include The Lacewing (featuring cucumber, basil, lychee, and szechuan pepper) and The Tandem (American oak, lapsang, cherry, plus a ginger and cayenne kick). Insiders can read more about Tilden’s journey, including comments from Royle and Wood. |
| | Data Dive | | | On-premise sales velocity has been inconsistent as of late, with week-over-week (WoW) growth of +8% in the week ending November 11, followed by a -4% decline in the latest week (ending November 18), according to CGA, a NIQ-powered on-premise market research firm. The wavering trends have been “driven by fluctuations in ticket count,” rather than check value, according to CGA. The latest velocity increase and decline also follows similar patterns to trends in 2022, 2021 and 2019. On-premise velocity is now flat year-over-year (YoY), with check value up +1% and traffic down -1%. In the last 12 weeks, overall sales velocity is up +1% YoY. Insiders can read more, including performances for key states. |
| | Save the Date | | | Connect with hundreds of beer and bev-alc industry leaders in just 7 days at the Brewbound Live 2023 business conference in Marina del Rey, California. Networking is an essential piece of Brewbound Live – we make sure to offer plenty of opportunities throughout the day for you to initiate meaningful conversations, establish new partnerships, and catch up with industry friends. The evening before our first day of presentations, join us at JuneShine for the Brewbound Live kick-off party. Enjoy booch and business conversations before two days filled with insights. At the end of Day 1, head over to Firestone Walker for the Brewbound Live official party to deepen your relationships with brewers, investors, retailers, distributors, suppliers, and industry leaders in a more casual setting. To close out the event, we’ll have one last beverage together at the Brewbound Live wrap party, held at the Marina del Rey Marriott. View the full agenda. You’ll have the opportunity to connect with hundreds of attendees including retailers such as Whole Foods, Extra Mile Convenience Stores, Mellow Mushroom, and more; brand leaders from BeatBox, CANarchy, New Belgium, Bell’s, Rhinegeist, Athletic Brewing, Lawson’s Finest Liquids and many others; as well as distributors, suppliers, service providers and experts from across the industry. Check out the full list of registered companies and start planning your conversations. Register for Brewbound Live >> |
| | Parting Shot | | | Earlier this year, Beer Kulture, Women of the Bevolution and Brave Noise announced Momentum Cider founder Monique Gray as the winner of the Beer Kulture Women of the Bevolution Creator Launchpad Grant. The grant is meant for “women and non-binary entrepreneurs, brewers or digital creators who identify as an underrepresented or underserved member of the craft beverage community” and “dream of launching a product commercially, but need the necessary funding and guidance to make it a reality.” Gray was granted $15,000 in financial assistance, an additional $2,000 for travel expenses, three months of financial and marketing consulting and the opportunity to launch a beverage through Pilot Project, a Chicago-based beverage incubator. Fast forward six months later, and Gray has officially launched Cran I Kick It?, a 3.7% ABV “tart-delicate, pale-pink cranberry Berliner Weisse,” with Pilot Project. Gray said in a press release: "This is my first product to be released commercially and a huge milestone for my brand as I work towards releasing my ciders and other beverages throughout the U.S. Pilot Project Brewing has made me feel so welcome and part of their family. I am grateful to produce a product with their team and learn from this experience as I move forward with my brand and recipe development.” Cran I Kick It? is now available on draft at Pilot Project’s Milwaukee taproom. |
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