• 🎢 NBWA and Fintech Midyear Review
• 📱 Friday Beers and Its Ready-Made Audience
• 💰 Southern Glazer’s to Acquire Horizon Beverage
• 🐑 3 Wisconsin Breweries to Open Joint Taproom
• 📦 Finnegans to Move Production to Fulton
• ⛰️ RationAle Hires Industry Vet Adam Lambert
• 🥃 Nebraska Gov Proposes Spirits Tax Increase

HPA’s hyper focus on hop quality has also paid off, with this year’s oil content coming in equal or above the 5-year average. It should be a great year of true-to-type flavors and aromas in beer. Contact HAAS and their distribution partners to get your hands on some new crop 2024 Aussie hops today. Learn more

Three years post-pandemic, the beer industry’s performance is still “erratic,” National Beer Wholesalers Association (NBWA) chief economist and VP of analytics Lester Jones said during a webinar on Tuesday.

Jones and Fintech VP of distributor strategy Eric Kiser delivered a midyear update on the beer category using broad economic figures and Fintech’s cache of invoice data from 233,000 retailers and 5,178 distributors. The nearly 1 million invoices Fintech processes each week represent about one-third of all retailer alcohol transactions.

Here are some highlights from the presentation, which included Fintech data through July 12:

📊 ‘Crazy Comps Continue’ 3 Years On

The volume of beer and malt beverages moving throughout the industry remained fairly stable from 2010 through early 2020, with a “long run trend” of -0.3% and shifts “consistently” between +1.5% to -1.5%. 

All that changed with the pantry-loading spike of March 2020 when the on-premise shut down due to the COVID-19 pandemic, and volume swings are now nearly 10 times the size of what they were in the prior decade. Since 2020, shifts in volume moving through the industry can range between +10% and -10%.

Jones said: “The erratic behavior of the beer industry is still there. We saw a big jump in May, we'll probably see a big decline in June – we're still seeing very erratic comps. The industry fundamentally has not normalized or gotten back to an equilibrium or steady state where you can go back to these plus one minus one swings in volume that we used to have pre-COVID.”

🛢️ Kegs Gain +5.5% Share On-Premise

Kegs have also gained +5.5% share among package formats in the on-premise year-over-year (YoY), Jones said. Kegs, which have struggled since the pandemic forced the closure of bars and restaurants and the on-premise channel began to reevaluate its relationship with draft beer, now account for 50.5% of all Fintech retailer purchases, up from 45% in 2023.

On-premise, 13 suppliers account for 92% of all keg invoices year-to-date (YTD) in 2024. However, the long tail of all other suppliers has gained +1% in share from the leaders this year. 

Insiders can read more about suppliers’ share of on-premise kegs, how many new beer-selling retailers there are and which class of trade they belong to, and which non-alcoholic and craft brands are gaining share.

Almost Friday Media, the comedy meme account turned digital media empire that has long celebrated the vaunted opening of a beer at the closing of the workweek, had a drinker base long before it had a beer brand. 

The media network reaches more than 800 million accounts across more than 30 channels on seven different media platforms, and launched its eponymous light lager Friday Beers late last year.

Almost Friday co-founder and CEO Jack Barrett and Corestone Capital founder and CEO Will McDonough joined the Brewbound Podcast to discuss the beer, its fans and the strategy behind it.

Plus, the Brewbound team discusses global hop production and inventory, regulatory changes for THC-infused drinks in Iowa and a makeover for Cigar City’s Jai Alai IPA.

Listen here or on your preferred podcast platform.

Southern Glazer’s Wine & Spirits has plans to acquire Horizon Beverage Group, Southern Glazer’s announced today. 

The deal includes all of Norton, Massachusetts-based Horizon Beverage’s Massachusetts and Rhode Island operations and beer, wine and spirits portfolio, adding two states to the largest bev-alc distributor’s footprint, for a total of 46 states, plus Washington, D.C., Canada, the Caribbean and Central and South America, according to a press release. 

Horizon’s beer portfolio includes Molson Coors, Constellation Brands and Boston Beer products, as well as Heineken, Harpoon, SweetWater, Narragansett, Switchback, Grey Sail, Partake and more. 

Financial details of the acquisition were not disclosed. The deal will close “upon regulatory approval,” according to the release. 

Once the deal is closed, Horizon’s business in the two states will operate as Southern Glazer’s Wine & Spirits of Massachusetts and of Rhode Island, respectively. 

Horizon leadership will continue in both states, and will work alongside Southern Glazer's east region president Scott Oppenheimer, according to the release. All of Horizon’s “family members and leadership team,” including co-chairmen Bob Epstein and Jim Rubenstein, will also maintain their existing roles “to help ensure a smoother transition for all employees, suppliers and customers.” 

Horizon employs more than 600 people, and operates out of 800,000 sq. ft. of warehouse space with 100 delivery vehicles, according to the release. 

Insiders can read more, including comments from Southern Glazer’s and Horizon leadership, and a refresher on Southern Glazer’s recent lawsuit troubles.

3 Sheeps Brewing is leaning into its name with a new “triple taproom” in Milwaukee, Wisconsin. 

The Sheboygan, Wisconsin-based craft brewery has expanded its partnerships with Baileys Harbor-based Door County Brewing and Hacienda Beer Co. to open a “reimagined taproom” at Hacienda Taproom + Kitchen, which has been renamed Triple Taproom + Kitchen. 

3 Sheeps has been producing and packaging for Door County since 2020, and for Hacienda Beer since earlier this year.

3 Sheeps founder Grant Pauly said in a press release: “We have been good friends with the Door County and Hacienda team for many years and are now taking this friendship to the next level and moving in together! Having a dedicated space in Milwaukee will allow us to support all of the amazing fans and partners that have supported us for the past twelve years. We couldn’t be more excited.”

The multi-brewery taproom features beers on tap and in package from all three breweries, including 10 rotating taplines dedicated solely to 3 Sheeps. The location opened on July 10, but an official launch party will be held later this year, according to the release.

Finnegans Beer Co. is moving production to fellow Minneapolis craft brewery Fulton Brewery, the companies announced Tuesday. 

Finnegans’ beers will be produced at Fulton’s Northeast Minneapolis production facility, with Finnegans beers available on draft and to-go at Fulton’s North Loop taproom beginning in early fall. 

Finnegan’s own taproom will have its last day on August 31, with the space then transitioning into an event space managed by Minneapolis event production company Mosaic. 

Finnegans co-founder and CEO Jacquie Berglund said in the announcement: “We are very excited to work with the Fulton team in creating an innovative partnership between urban breweries that have all faced so many challenges beyond our control over the past few years.

“Through it all, we’ve retained our entrepreneurial spirit and drive for creating positive change. We’re excited about being able to channel our energy into continued growth and reimagining a new future for Finnegans.”

Fulton produced 25,397 barrels of beer in 2023, a -4% decline year-over-year, according to the Brewers Association (BA). Finnegans did not disclose production data in the BA’s May/June New Brewer.

Beer industry veteran Adam Lambert has joined RationAle as VP of wholesale and sales operations for the non-alcoholic (NA) beer maker. 

Lambert has spent more than 30 years in bev-alc, including stints as chief revenue officer at BrewDog USA, COO at Storied Craft Breweries, VP of sales at Virtue Cider, VP of sales at Dogfish Head and national sales and marketing manager at Rogue Ales. Lambert is also the founder of Craft-Union, a creative business agency focused on bev-alc, and the former president of the Michigan Brewers Union.

RationAle co-founder and EVP of sales Wendy Pickett said in a press release: "Adam brings a wealth of sales and distribution experience that will provide our wholesaler network and sales strategy with the focus needed on the business right now.”

Lambert’s hiring follows RationAle closing a seed investment round led by Bochi Investments and “a group of premier investors” that “dramatically” exceeded the company’s “expectations in both investor interest and capital raised,” according to a press release.

RationAle co-founder and CEO Jamie Fay announced Bochi’s initial investment in June, marking the private investment firm's first investment into non-alcoholic adult beverages. Bochi’s portfolio also includes Nectar Hard Seltzer, as well as several snack and CPG brands, beauty and clothing brands, and more. 

RationAle plans to use its seed funding to “invest further into building out its supply chain, ramp up inventories, add strategic hires within sales and marketing and triple down on stimulating brand awareness and trial,” according to the release. 

Fay said: "We can now shift from a resource-constrained environment to boldly leaning into an aggressive growth plan that is supported by an experienced team and a strong operating infrastructure.”

RationAle is leading its expansion efforts with Mexican Cerveza, which is available in test markets in California, Arizona and Nevada. The company also recently expanded its footprint into 200 Sprouts stores.

Pickett and Fay launched RationAle in 2021. The company has increased dollar sales +3.3% and volume +12% in NIQ-tracked off-premise channels (total U.S. xAOC + liquor plus + convenience) year-to-date through June 16. In 2023, RationAle dollar sales increased +440.4% and volume +501.5% in NIQ-tracked channels.

Nebraska Gov. Jim Pillen released details on his property tax relief plan this week, which includes increases for various “sin” taxes, including distilled spirits.

Pillen’s budget plan would increase the excise tax on distilled spirits from $3.75/gallon to $14.50/gallon, a +287% increase. Other “sin” taxes include cigarettes, vaping products, keno, “games of skill” and consumable hemp products. The latter, which does not have an existing tax guidance, would have a 30% excise tax rate. Tax exemptions would also be eliminated for soda and candy. 

Pillens wrote in his budget memo: “This will generate over $200 million in property tax revenue when fully implemented. Compared to other states, Nebraska is behind in deciding to assess an appropriate tax on these items. This plan doesn’t even cause Nebraska to rise to the top of state rankings for these items, but it will finally make us competitive.”

Changes to other bev-alc excise taxes were not mentioned. 

The Distilled Spirits Council for the United States (DISCUS) has launched a statewide campaign against the tax increases, claiming the “massive tax increase would have a chilling effect on the spirits industry” and could put more than 1,350 jobs at risk.

The Brewbound Live Pitch Slam returns to the Brewbound Live business conference on December 11 + 12 in Marina del Rey, California. The annual competition provides an opportunity for startups in beer and beverage-alcohol to pitch their product, generate industry awareness, and open the door for new partnerships.

How It Works:

Emerging beer category brands will provide attendees a look into the future of the industry. The competition kicks off on Day 1 of Brewbound Live with 12 semifinalists presenting rapid fire pitches to a panel of expert judges. Six brands will advance to the final round, taking place on Day 2. The judges will then decide who takes home the winning title and a Brewbound advertising package valued at $10,000.

Who’s Watching:

Brewbound Live attendees watch in-person while industry experts tune into the free livestream on Brewbound.com. Pitching in the competition allows you to reach thousands of investors, retailers, suppliers, service providers, and fellow brewery leaders looking to see what’s next in the world of beer. Past winners include Sunboy, Funkytown Brewery, Lunar Hard Seltzer, Crowns & Hops, Willie’s Superbrew, Novo Brazil, Border X Brewing, and Wynwood Brewing Company. Check out a past competition to see what it takes to win.

Beyond the Pitch:

Following their on-stage presentations at the Brewbound Live Pitch Slam, participants have the opportunity to form connections with industry decision makers. The competition opens the door for deeper, more meaningful conversations that extend beyond introductions.

How to Apply:

Startups producing beer, non-alc beer, cider, hard seltzer, hard kombucha, hard tea, hard coffee, and other malt/wine-based alcoholic beverages are invited to apply now. There is no cost to participate in the competition. The application deadline is September 30.

Apply to Participate in the Brewbound Live Pitch Slam >>

To extend your presence beyond attending, view our Brewbound Live sponsorship opportunities.