• ⬆️⬇️ 3 Up 3 Down Through May 10
• 🏆 STZ Execs Confident in Share Gains
• 🤝 Tilray Closes on Molson Coors Craft Deal
• 🗣️ NBWA's Lester Jones on Fall Strategy
• 🎙️ A Legal Update with Nutter’s Bev-Alc Team
• 🏈 STZ Making ‘Largest Investment in Football’

3 Tier Beverages consultant Danelle Kosmal dug into beverage-alcohol trends through mid-August for the latest installment of 3 Up, 3 Down, a quarterly series exclusive to Brewbound Insiders from the Chicago-based bev-alc consulting and data firm.

Kosmal highlighted the momentum behind non-alcoholic (NA) beer, as well as dichotomies in the fourth category and spirits. 

Here is a snippet of the report, which analyzes NIQ off-premise data through August 10 and is available in full for Insiders.

⬆️ UP: Non-Alc Beer Drives Overall Bev-Alc Growth

Non-alcoholic (NA) beer is one of the fastest growing segments in beverage alcohol for this summer. Over the past 13 weeks ending August 10, NA beer sales surged by +26.5% in NIQ-measured off-premise channels. This growth is attributed to both new brands launched in 2024 and established favorites. 

Milford, Connecticut-headquartered Athletic Brewing continues to be a major driver, with sales increasing by +58% and contributing 28% to the overall growth of non-alcoholic beer. The second largest contributor to growth was Molson Coors’ Blue Moon NA, followed by Heineken 0.0, Corona NA and Sierra Nevada’s Trail Pass brand family, which together account for nearly 60% of the total growth in non-alcoholic beer.

⬇️ DOWN: High-End Spirits .... Kind Of

Growth and performance of high-end spirits is mixed. The super premium segment has declined by -5.2%, while the ultra-price tier remains positive but with slowing growth — up +5% over the latest 13 weeks and slowing to just +2.5% over the most recent four weeks ending August 10.

These trends are for total spirits, but different dynamics emerge when we dig into high-end price tiers in specific categories. For example, ultra-priced whiskey (-3.3%) is the primary driver of high-end growth slowing, and is contributing to nearly 80% of declines across ultra-priced spirits.

Insiders can dive into Kosmal’s full report here.

Constellation Brands has not lost confidence in the continued growth of its beer brands, despite lowering its fiscal year 2025 (FY25) guidance Tuesday.

President and CEO Bill Newlands and executive VP and CFO Garth Hankinson sat down for a fireside chat yesterday at Barclays’ Consumer Staples Conference in Boston. The conversation came hours after the beer giant announced several changes to its bev-alc guidance, as well as a non-cash goodwill impairment charge of $1.5 billion to $2.5 billion on its wine and spirits business, taken in Q2 (ending August 31).

Included in the changes was a lowering of net sales growth for its Mexican import brands – including Corona, Modelo, Pacifico and Victoria – from between +7% and +9%, to between +6% and +8%. 

Newlands assured conference attendees that Constellation is still confident in its beer brands, but noted a slowdown in its top five markets (California, Nevada, Florida, Texas and Illinois). The slowdown is in part due to consumer buying patterns during election years. Consumers tend to decrease spending while there is uncertainty around who will be the next U.S. president, Newlands said. 

In addition, there has been an increase in unemployment that has disproportionately impacted Hispanic consumers, who make up more than half of Constellation’s consumer base. 

Constellation is the second largest beer vendor in Circana-tracked off-premise channels, increasing dollar sales +6.3% and volume (case sales) +5.3% year-to-date (ending August 11). The company has gained +1.32 share points of total beer dollar sales YTD, which increases to +4.5 share points when including all CPG products, Newlands said. 

Trends have slowed in the last four weeks (dollar sales +0.5%, volume -0.5%), but Constellation is expecting consistent performance throughout the remainder of FY25. 

Newlands said: “If you look at many of the macro trends, the belief is that unemployment was going to stabilize. Inflation continues to come around. The election will be behind us, and people will understand exactly where we sit, that usually opens up people's purses a bit. So, we believe this [revised guidance] is reflective of what you would expect to see for us for the rest of the year.” 

Additionally, Constellation has achieved “cost saving initiatives” faster than the company initially expected – including contract negotiations and logistics initiatives, Hankinson shared. The company plans to use some of the “incremental benefits” from those savings on brand building, including national TV and at-retail marketing, and will be spending more on marketing in H2 of FY25 than the company initially planned, also contributing to the guidance changes. 

Insiders can read highlights from the conversation, including updates on performances from Pacifico and Corona, whether Modelo can be the top beer brand in all 50 states and leadership’s thoughts on the future health of the beer category.

Tilray Brands’ acquisition of four craft breweries from Molson Coors is now complete. 

As expected, the deal closed at the end of August. Tilray picks up:

• Hop Valley Brewing in Eugene, Oregon;
• Terrapin Beer Co. in Athens, Georgia;
• Revolver Brewing in Granberry, Texas. 

Detroit’s Atwater Brewery was previously announced as being included in the transaction, but was omitted from Tuesday’s press release. A Tilray spokesperson told Brewbound that the company expects to close on Atwater by the end of the month. 

Tilray chairman and CEO Irwin D. Simon said in the announcement: “With our proven track record of creating brand growth, we are confident in our ability to drive revenue, generate cost synergies, and expand distribution, further strengthening these brands and solidifying Tilray's position as a leader in the craft beverage industry.

“Our plan is to drive growth and maximize the potential of these brands to their fullest capacity, while maintaining our dedication to delivering high-quality products and meeting the evolving needs of our consumers.”

The company said the acquisition “strengthens” its position as the fifth-largest craft brewery in the U.S. and “the top craft brewer in the Pacific Northwest and Georgia.” The company’s volume is expected to top 1 million barrels.

– Lester Jones, chief economist and VP of analytics for the National Beer Wholesalers Association, on August 2024’s Beer Purchaser’s Index (BPI). 

The August 2024 BPI tracked similar to post-COVID 19 pandemic Augusts, with wholesaler purchasing contracting, meaning they’re planning to purchase less of a particular beer category segment.

Jones said: “The past three years have all seen a big shift in August. August post-COVID is not August pre-COVID. Could be it’s just too hot, or more people vacation away from home, or combination or many things.’

What legal issues should be on brewers’ radar? Nichole Shustack and Isabelle Cunningham from the bev-alcohol practice team at law firm Nutter, McClennen and Fish join the Brewbound Podcast to share what to watch out for this year and beyond.

The team discusses the impact of non-alcoholic brands crossing over into bev-alc, direct-to-consumer sales, potential regulations on adult non-alcoholic beverages and other state legal updates. 

Plus, the Brewbound team reconvenes to break down the latest headlines, including Colorado’s Left Hand Brewing’s efforts to raise money for a brewery platform, another sale of San Francisco’s Magnolia Brewing and BeatBox Beverages’ big deal with Shaquille O’Neal. 

Listen here or on your preferred podcast platform. 

Constellation Brands is making the “largest investment in football” in the company’s history, the company announced this week. Constellation’s football media investment is increasing +22% compared to a year ago, with support behind Corona Extra, Modelo Especial, Modelo Chelada and Pacifico during NFL games and the College Football Playoff. 

Look for spots across ESPN, ABC, CBS, FOX and NBC. Modelo will receive a “robust 360 media plan” for the entire college football season and is the Official Beer Sponsor of the College Football Playoff, the company said. It’s also the “Official Beer of FOX Big Noon Kickoff.”

Watch Modelo’s “Recruiter” TV spot.

Meanwhile, Corona is rolling out new spots with Eli Manning, starting September 9. Watch “Winning Season” and “Trash Talk” in the links. 

At Brewbound Live in Marina del Rey on December 11 + 12, beer and beverage-alcohol companies can participate in retailer One-to-One meetings with ExtraMile Convenience. The buyer will be available for private, pre-scheduled meetings, and brands will be selected at the retailer’s discretion.

ExtraMile Convenience is a successful, industry-recognized c-store brand with more than 1,000 franchised convenience stores in California, Oregon, Washington, Idaho, Utah, Nevada, Arizona, Alabama, and Mississippi. The growing ExtraMile network leverages experience and efficiency of scale to deliver “extra” value.

Meet with Michelle Abdollah, the Category Manager of Alcoholic Beverages, during Brewbound Live. Michelle is a seasoned retail expert with over 15 years of experience in merchandising and operations. With a proven track record of driving growth and profitability, Michelle has honed her skills through various leadership roles at 7-Eleven and Target. Her expertise has earned her recognition as one of the Top Women In Convenience by Convenience Store News in 2024.

Beer and beverage-alcohol professionals attending Brewbound Live can also meet with Whole Foods beer category buyers, with additional retailers to be added soon!

You must be registered for Brewbound Live to be considered for a retailer meeting. Once you register for the event, you will receive an email with instructions for signing up.

Register for Brewbound Live 2024.