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DAILY BRIEFING | Today's news & insights for the beer industry. |
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|  | In this issue | - 📉 Craft Declines Accelerate Entering Colder Months
- 💔 Many Maine Breweries Closed For Today
- 🥃 BrewDog to Increase Spirits Offerings
- 🍸 Luxury Spirits Lag, Holiday Spending May Dip
- ☀️ JuneShine ‘Restructuring’ Staff, Citing Efficiency
- 🎙️ Bernstein Analysts on Ozempic’s Impact
- 🏪 Brewbound Live Speaker Announcement
- ❄️ Beer Mail: Deschutes Jubelale
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| Today's Top Story | | | Craft declines have accelerated slightly as seasonal buying patterns return to the off-premise, according to Circana in the data firm’s monthly beer report. Total craft dollar sales declined -0.8% year-to-date (YTD) through October 8 in Circana-tracked off-premise channels, slightly above the -0.7% decline recorded in Circana’s September report. Craft volume, measured in case sales, remained down -4.9%. YTD. In the last four weeks, craft dollar sales declined -2.5% year-over-year (YoY), and volume declined -5.4%. In the previous four-week period (ending September 10), craft dollar sales were down -0.7% YoY, and volume was down -4.5%. The only craft beer style to record volume growth YTD was golden ales (dollar sales +4.5%, volume +1.3%). IPAs also recorded dollar sales growth (+4.3%), but declined in volume -0.3%. However, in the last four weeks, IPA was in the green (dollar sales +4.4% YoY, volume +1.4% YoY). All other styles except for golden ales (dollar sales +9.6%, volume +9.2%) were down in the four-week period. New Belgium continues to dominate the craft top 30 list, with seven of the top 30 craft brands YTD. The Kirin-owned craft brewery recorded a combined dollar sales increase of +10.27% and volume +9.81% YTD across the seven brands, despite a few of the brands recording double-digit declines. Included in New Belgium’s leading styles are two of the top three craft brands: Voodoo Ranger IPA (dollar sales +12.9% YTD, volume +7.9%) and Voodoo Ranger Juice Force (dollar sales +90.9%, volume +89.1%). Both brands fall only below the top-selling, Circana-tracked craft brand Molson Coors’ Blue Moon (dollar sales -2.7%, volume -6.9%). Eight other brands in the top 30 continue to record dollar sales and volume growth YTD. The convenience channel continues to tell a better story for craft, with total craft dollars up +4.6% YTD, and volume +0.1%. However, in the last four weeks, craft c-store dollar sales were up +3.3% YoY, while volume was down -0.2%. Thirteen of the top 30 craft brands in c-stores recorded dollar sales and volume growth YTD, while nine have done so in the last four weeks. In grocery, total craft dollar sales are down -3.4% YTD, and volume -6.9%. In the last four weeks, craft dollar sales were down -4.8% YoY, and volume -7.1% YoY – a significant decline in performance versus the four-week period recorded in the previous report, when craft dollars were down -2.8%, and volume -6.1%. Seven of the top 30 craft brands in grocery recorded dollar sales and volume growth YTD. Insiders can read more, including brand-specific performances across all channels. |
| | From the Wire | | | Several Maine craft breweries will be closed today following the mass shooting Wednesday night that left at least 18 people dead and 13 people wounded at a bowling alley and bar in Lewiston, Maine. Allagash Brewing, Baxter Brewing, Bissell Brothers, Maine Beer Co., Mast Landing, Oxbow Brewing, among others, will remain closed today. Allagash wrote: “We love you, Maine. In light of the unfolding tragedy in Lewiston, our tasting room will be closed today. Maine is a small community, and we’re all feeling the immense heartbreak of what has happened. We hope you and your loved ones are safe.” Baxter, in Lewiston, posted: “We will be closed today (10/26) due to the tragic events that occurred in our community and for the safety of our staff and our patrons.” Maine Beer Co. wrote: “We are closed today, October 26, 2023. Please stay safe.” Rusty Bus Brewing in Lewiston wrote: “In light of the overnight events that took place and out of respect for our friends and neighbors that were injured or killed and the community that we love and are a part of, we will be closed today, Thursday October 26th. Hug your family. Reach out to loved ones. We need each other more than ever to all get through this. Nothing is guaranteed. Lewiston Strong.” A shelter-in-place order was issued for Lewiston, Maine’s second-largest city, and Bowdoin. Police named Robert R. Card of Bowdoin as the person of interest in the killings, saying he “should be considered armed and dangerous.” |
| | | | Scottish brewer and distiller BrewDog seems to be getting deeper into the spirits game, applying for a trademark covering brandy, The Grocer reported. The company has applied with the Intellectual Property Office to trademark the name “Super Margaux” under class 33 covering brandy. This would be the first brandy added to the distiller’s range of rum, vodka and gin spirits. The news comes shortly after BrewDog launched a new line of ready-to-drink canned cocktails (RTDs), under the name Woniker Cocktail Co. The lineup of spirits-based RTDs includes: - Classic Margarita (14% ABV, 125 ml can)
- Cantarito Paloma (10% ABV, 200 ml can)
- Espresso Martini (14%, 125 ml can)
- Passionfruit Martini (14%, 125 ml can)
- And Classic Mojito (10% ABV, 200 ml can)
The 200 ml offerings are meant to be served over ice in a tall glass, while the 125 ml cans require a “shake-and-serve method,” where consumers are recommended to “shake the can for 10 seconds before pouring into a coupe-style glass,” according to BrewDog Distilling CEO Martin Dickie in a LinkedIn post. The RTDs are available in bars and restaurants in England, and to order online. |
| | | | If you were hoping holiday gifts would stock the bar this winter, think again. More than two-fifths of consumers (42%) are planning to spend less on alcohol this holiday season, according to a year-end trend report from WSWA’s SipSource, The 2023 review also dug into the churn of RTDs at the top since the category kicked off a few years ago: “Five of the top 15 weren’t in the top 15 last year,” according to analyst Danny Brager. Insiders can read more info on what brands might move up the ranks, and how de-premiumization may impact RTDs, in the link. |
| | | | JuneShine, a San Diego-based hard kombucha and canned cocktail maker, is “restructuring” its team, including cutting some positions, co-founder and CEO Greg Serrao confirmed to Brewbound. Serrao said: “We are just restructuring our team to become more efficient. We're 5 years into the game and the way we operate is much different than in the past, we needed to make org chart changes to reflect that.” Serrao declined to give details, including how many staff members were affected or what departments. He added: “They are great people though... if any of them apply for a job I'd recommend them to you!” LinkedIn posts by some of the affected employees included a sales manager, a marketing and sales coordinator, brand managers and coordinators, and a content manager. Last week, Serrao shot down a Reuters report that the San Diego-based hard kombucha and canned cocktail maker was exploring a sale process. |
| | On This Week's Brewbound Podcast ... | | | Bernstein Autonomous analysts Nadine Sarwat and Trevor Stirling share what they know so far about Ozempic, Wegovy and other diet/diabetes drugs’ effect on alcoholic beverage consumption. Sarwat and Stirling break down why these drugs have entered popular culture conversations, what users are saying about their cravings, comparisons to past diet trends and much more. Also, Jess, Zoe and Justin discuss the latest news, including promotions at Rhinegeist, the failed union effort at Creature Comforts and non-alcoholic beer reaching its limit at retail. Listen here and on all popular podcast platforms. |
| | Brewbound Live Speaker Announcement | | | The convenience channel is one of the bright spots for beverage-alcohol in 2023, with c-store beer category sales outpacing other channels. What are the keys to winning in c-stores? Category managers from Circle K and Extra Mile will share insights and trends at the Brewbound Live business conference this December in Marina del Rey, California. Joining the main stage conversation will be: - Michelle Abdollah, category manager for alcoholic beverages at Extra Mile Convenience Stores;
- Julie Farmer, category manager for alcoholic beverages at Circle K;
- And David Williams, VP of analytics and insights, Bump Williams Consulting.
Brewbound Live takes place December 6 + 7 at the Marina del Rey Marriott Hotel (4100 Admiralty Way, Marina Del Rey, CA). Tickets are available now. |
| | Beer Mail | | | 👋 Justin, here. Halloween isn’t until next week, but Deschutes’ popular winter ale is already back. This package of Jubelale winter ale bottles showed up at my doorstep recently. The winter seasonal is out now through December in 6-, 12- and 24-pack bottles, 12-pack 12 oz. cans and on draft. Jubelale’s arrival signals that, yes, winter is indeed coming. |
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