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| DAILY BRIEFING | | Today's news & insights for the beer industry. |
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| In this issue | - 🎙️ How a Vegas Wholesaler Preps for SBLVIII
- 🥃 DISCUS: 2023 Spirits Sales Flat
- 🧔 BA Expands Economist Team
- 🏈 Numerator: Chiefs vs. 49ers Buying Habits
- 🍻 Bale Breaker Launches First Frenz Collab of '24
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| Today's Top Story | | | Breakthru Beverage Nevada beer division VP Deacon Nauslar joins this week’s Brewbound Podcast to share how the distributor is preparing for Super Bowl LVIII in Las Vegas. Nauslar said: “Vegas is known to be a place to go for the Super Bowl, so we’re always busy for the Super Bowls. … Occupancy usually jumps between the 90% to 92% ratio for the hotels. So the incremental business will really only be at the stadium because all of the bars, all of the casinos, all of the sportsbooks [are always full]. “I’d say the lift is between 5% and 10%. I know it sounds like a small number but we figure we’ll probably get a little bump out of it but most of it will be at Allegiant Stadium.” Nauslar dishes on when preparations began, how the event will compare to the Formula 1 race earlier this year, and how the biggest football game of the year measures up to a normal week servicing Sin City. The Brewbound team also breaks down the early week headlines, including a potential end to the Sheehan family lawsuit and a sale of the business, two former Boston Beer employees’ lawsuits against the company over non-competes and why soda may be a threat to beer shelf space. The team also plays Another Round or Tabbing Out on the latest big beer Super Bowl ads – including a mea culpa to the Chill train. And Justin does an impromptu round with a tasting of Truly Hot Wing Sauce hard seltzer. Listen here and on all popular podcasting platforms. |
| | From the Wire | | | Spirits sales in the U.S. were flat in 2023, but maintained a very slight revenue lead over beer for the second year in a row, according to the Distilled Spirits Council of the United States (DISCUS) in its annual economic briefing on Wednesday. Last year, spirits market share totaled 42.2% with steady gains over the past 14 years, but the association’s leadership echoed other year-end woes of a challenging sales environment. Beer’s share by supplier revenue totaled 41.8% according to the data, with wine at 16.1%. The briefing, which highlighted industry data and legislative priorities for the advocacy organization, showed the impact of economic conditions on consumer trends and sales. Overall in 2023, spirits revenue increased by $73 billion (+0.2%) and volumes rose +1.2% to 308.8 million 9-liter cases. DISCUS president and CEO Chris Swonger attributed the numbers to inflation and high interest rates reducing consumer discretionary spending, consumers returning to more normalized routines and buying habits post-pandemic, and retailers and wholesalers pausing on reordering as they reduced inventory build-ups. Certain segments drove momentum for the category, and with no surprise, one of them was ready-to-drink cocktails. Brewbound Insiders can go deeper into the data, including category trends, as well as the organization’s legislative agenda. |
| | People Moves | | | The Brewers Association (BA) has appointed Matt Gacioch as the trade group’s new staff economist, effective February 1. Gacioch will join BA chief economist Bart Watson to help “propel the behind-the-scenes statistical and economic capabilities of the BA,” according to a BA blog post announcing the news. Gacioch is no stranger to the BA, working as the trade group’s sustainability ambassador for the past five years. For the past nearly three years, he has worked at Wix.com, most recently as director of operations, Americas. He has previously held beer-related roles as director of sustainability and marketing at Short’s Brewing and as an intern at CraftBeer.com. BA president and CEO Bob Pease said in the announcement: “We are pleased to welcome Matt Gacioch and his wealth of expertise and passion to our research team. Matt’s strategic and analytical acumen will play a pivotal role in enhancing our ability to provide timely and insightful information to our members." |
| | Data Dive | | | Nearly two-thirds of consumers (61%) plan to watch Super Bowl LVIII this weekend, according to a Numerator survey. The consumer insights company surveyed more than 1,000 consumers ahead of Sunday’s kick-off. Soda is expected to be the drink of choice, with 50% of consumer saying they will purchase the beverage on game day, followed by beer (37%), spirits (22%), wine or champagne (22%), sparkling water (15%), juice (13%) hard seltzers (10%), ready-to-drink cocktails (9%) and THC- or CBD-infused beverages (3%). When focusing on the youngest legal-drinking-age consumers (Gen. Z and mIllennials), percentages double for hard seltzers (20%), RTDs (18%) and cannabis beverages (6%). Numerator also broke down beer and snack purchase expectations between the two participating fan bases: - Kansas City Chiefs fans are expected to purchase (in order) Anheuser-Busch InBev’s (A-B) Michelob Ultra and Bud Light, and Molson Coors’ Coors Light, accompanied by Lays, Doritos and Great Value snack brands;
- San Francisco 49ers fans are expected to purchase (in order) Constellation Brands’ Modelo, Coors and Bud Light, accompanied by Lays, Doritos and Ruffles chips.
Other top 10 beer brands on the list for Chiefs fans are (in order): Molson Coors’ Miller Lite, Modelo, A-B’s Busch Light, Constellation’s Corona, A-B’s Budweiser, Yuengling and Molson Coors’ Blue Moon. For 49ers fans, the list is rounded out by (in order): Michelob Ultra, Corona, Miller Lite, Budweiser, A-B’s Stella Artois, Heineken and Blue Moon. |
| | New on Shelves | | | Bale Breaker Brewing has given its Frenz Collaboration Series a “fresh new look” and has launched the series’ first release of 2024. For the first collaboration of the year, the Yakima, Washington-based craft brewery has partnered with three Oregon breweries – Breakside Brewery, Barley Brown’s and Von Ebert Brewing – for a “PNW-themed” IPA. Frenz IPA is a 6.3% ABV West Coast IPA, made with a combination of Simcoe, Chinook and “experimental HBC 630 hops,” as well as a “high-oil aromatic liquid hop extract,” among other hoppy elements, to “really get the hop aroma to pop,” according to a press release. Bale Breaker co-owner and brewmaster Kevin Smith said in the release: “As we searched for breweries to team up with for our February Frenz release, it was clear to us that we had to bring our good friends from Barley Brown's back into the mix. Breakside was an obvious choice, given our shared passion for hoppy beers. And when we were looking for a brewery whose style resonated with our crew, Von Ebert immediately came to mind.” Frenz IPA will be available starting February 16 at Bale Breaker’s taprooms, with distribution in Washington, Oregon and Idaho to follow. |
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