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| DAILY BRIEFING | | Today's news & insights for the beer industry. |
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|  | In this issue | - 💰 Boomers Driving On-Premise Spending Shifts
- 🍻 News From Denver Beer and Alamo
- 📊 WoW Super Bowl Boost Exceeds Expectations
- ⛴️ Stormalong Cider Launches NA Brand Family
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| Today's Top Story | | | As teased yesterday, a recent Bank of America report suggests that consumers are not spending less on bev-alc, but are instead shifting their spending to the on-premise versus the off-premise.
Consumer spending at bars in January increased +1% YoY, and increased versus fall trends, according to the report, which used aggregated card data from its own customers. Meanwhile, consumer spending at “alcohol stores” declined -5% YoY in January, consistent with trends from the past two years, and below the +1% average YoY increases recorded in 2019, prior to COVID-19 pandemic, according to the report. Among Bank of America card users, Baby Boomers recorded the largest increase in spending at bars (+4% YoY in January). The growth of Baby Boomer spending at bars has remained above any other generation since at least January 2023, and has been accelerating since the end of 2024. The generation is also the only one that’s spending has remained growth for the full two-year period. Generation X was the only other generation to record a YoY increase in spending at bars in January (+1%), after spending contracted throughout most of 2024. Bank of America economist Joe Wadford wrote: “Additionally, younger generations are spending more of their ‘going out’ budgets at restaurants, while Baby Boomers are more likely to head to the bar. “Within total restaurant spending, Gen Z and millennials have a higher share of bar spend, but this share has declined YoY. Conversely, while Baby Boomers’ bar spending makes up a lower share of the total, this share has increased in each of the past three years, although there has been some slowdown in the past year. He added: “In our view, it could be that younger generations are heading to the bar less as they take on more family and financial responsibilities. Meanwhile, Baby Boomers, the youngest of whom are 59, may be approaching retirement, or are already retired, and are enjoying more well-earned downtime.” Insiders can read more, including Wadford’s theories for why consumer spending habits have shifted, such as price increases, and an overstock of consumers at-home bev-alc collections. |
| | From the Wire | | | 🤝 Denver Beer Co. has joined Wilding Brands (Lafayette, CO), a new collective of bev-alc brands and on-premise locations, the Denver Post reported. Wilding’s website lists a “family” of brands that includes Stem Ciders, Howdy Beer, Cervecería Colorado, Formation Brewing, Funkwerks, Acreage Restaurant, Easy Living Sparkling Hop Water and Ghost Box Pizza. 🍎 The Cider Institute of North America (CINA) has rebranded as The Cider Institute, the non-profit announced earlier this month during CiderCon. The Cider Institute supports education, professional development and research efforts within the cider industry. Along with the rebrand – meant to highlight a more global reach – the organization has also increased its lineup of courses (online and in-person). 🏦 Alamo Beer Company has filed for Chapter 11 bankruptcy, according to the San Antonio Report. The 28-year-old craft brewery’s liabilities and assets are both listed at between $1 million and $10 million. Notably, the company’s production has dipped to 7,600 barrels, well-below its 40,000-barrel capacity, per the report. |
| | Data Dive | | | Total bev-alc dollar sales declined -4% YoY in Circana-tracked off-premise channels in the latest week (ending February 9), which included the Super Bowl.
Despite the decline, the WoW boost for bev-alc beat expectations, according to Circana EVP of BevAl Scott Scanlon. Total bev-alc dollar sales increased +10% WoW, one percentage point higher than the WoW increase recorded in 2024. Each of the bev-alc segments performed as follows: - Beer dollar sales increased +11% WoW, compared to +9% in 2024;
- Wine dollar sales increased +7 WoW, the same increase recorded in 2024;
- And spirits dollar sales increased +2% WoW, a significant decrease versus the +11% WoW growth recorded last year.
Scanlon wrote: “Upcoming, a little early to think of grill season across the entire country, but spring is only 4 weeks away and there are some green shoots. American super premium [a.k.a. domestic super premium] remains a standout to keep focus on within the beer category, but important to note each of the categories has brands or sub-categories that continue to yield outperformance. “[I] continue to believe the negativity is overdone.” In the last 12 weeks, beer dollar sales have declined -1.3% YoY and volume -3.2%, with declines slightly steeper than the overall industry (dollar sales -1.2%, volume -3%). Spirits remains the only bev-alc category in the black (dollar sales +1.3%, volume +3.7%), while wine leads declines (dollar sales -2.9%, volume -4.9%). |
| | New on Shelves | | | Stormalong Cider (Sherborn, MA) is diving headfirst into NA, announcing last week a new line of fruit-based NA sparkling beverages, Apple Spritz.
Apple Spritz is the first offering in a new Stormalong brand family, Captain Stormalong, which will include other NA beverages in the future. The stats: - 3 flavors – Awesome Apple, Bravo Blueberry and Captain Cranberry;
- Made with blend of “freshly pressed apple cider, spring water and light carbonation;”
- Available in 16 oz. cans in the Northeast and DTC through captainstormalong.com.
Stormalong founder Shannon Edgar said: “This product is personal for me. My kids love apple cider, but it’s frustrating to see them drinking these corporate juices made from concentrate. “Most apple juice in the U.S. is made from imported, highly processed concentrate. It’s not as healthy or delicious as the locally sourced cider we make with whole apples.” |
| | ICYMI | | | 2025 marks a milestone year for Lawson’s Finest Liquids and its flagship Sip of Sunshine IPA. How will the Vermont craft brewery celebrate a decade of Sip of Sunshine IPA? CEO Adeline Druart shares details on the latest Brewbound Podcast. Druart, who took over as CEO in June 2023, shares the keys to keeping Sip growing, including a commitment to cold-chain distribution. She also discusses the crossover of her previous life in dairy, with the addition of cheese to Lawson’s taproom. The conversation also covers Lawson’s expansion into North Carolina and Virginia, if more markets will follow, additions to the Sunshine family, B-Corp status and the brewery’s Airbnb. Plus, the Brewbound team discusses Zoe’s trip to CiderCon and her Super Bowl celebration, more ad talk and play a game of Another Round or Tabbing Out on Anheuser-Busch’s American versus domestic and Ball recycling its aluminum cup business. Listen here or on your preferred podcasting platform. |
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