• 🥤 Red Tree President Talks Bev-Alc Approach
• 📈 CPI: Beer Inflation Has ‘Reemerged’ This Fall
• ⚓️ Hilco Corp. Finance Retained for Anchor Sale
• 📊 Circana Weekly Scans
• ⛷️ Long Trail Hits the Slopes
• ⚙️ Metropolitan Brewing to Close

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Red Tree Beverages, Coca-Cola’s “firewalled, wholly owned” subsidiary to explore beverage-alcohol, has no intention of getting into the distribution business, Red Tree president Jenny Dowdy said yesterday during Beer Marketer’s Insights fall seminar.

Dowdy reassured the audience, which contained a large contingent of beer wholesalers, that Coca-Cola has no plans to follow in the footsteps of PepsiCo, which has been rolling out Blue Cloud Distributing. So far, Blue Cloud’s portfolio consists of alcoholic versions of Pepsi brands, including Boston Beer-produced Hard MTN Dew and FIFCO-produced Lipton Hard Iced Tea. 

Dowdy said: “One thing I want to be very clear about is that Red Tree will not distribute alcohol in the United States, nor will Coca-Cola. The creation of Red Tree was really just a way to formalize the way that we operate. It just underscores that we operate as a distinct entity from our non-alc business.”

Coca-Cola launched Red Tree this summer as an umbrella over its bev-alc partnerships. The company has licensing agreements with Molson Coors (Topo Chico Hard Seltzer, Simply Spiked, Peace Hard Tea), Constellation Brands (Fresca Mixed) and Brown-Forman (Jack & Coke) to produce alcoholic versions of its most popular non-alc brands. Those products flow through the distribution networks of the respective bev-alc partners. 

Dowdy said: “We look at each proposition that we have uniquely and decide who's the best relationship to partner with in order to launch that brand.”

Red Tree abides by three principles when building and managing RTD brands: 

1. All bev-alc brands “are distinct” from their non-alc counterparts in “trademarks, visual identities, brand names and marketing strategies;” 
2. A completely separate marketing team works on bev-alc products, which “ensures compliance” and helps “to guarantee that there are no slotting fees and other practices that do not occur in the alcohol space;”
3. And all alcoholic products are “clearly” marked as such, with a standard label and messaging rolling out next year to make sure that the presence of alcohol in each beverage is “more clearly identifiable.”

Brewbound Insiders can read more about Red Tree’s innovation strategy and how the partnership has bolstered Molson Coors’ beyond beer portfolio. 

After a seven-month slowdown, beer inflation “has reemerged in the past three months,” Brewers Association (BA) chief economist Bart Watson wrote on Twitter/X, following the release of the October Consumer Price Index (CPI) from the U.S. Bureau of Labor Statistics (BLS). 

The CPI for beer at home increased +4.7% year-over-year (YoY) and +1% versus September, seasonally unadjusted. Over the last three months, the CPI for beer at home has collectively increased +2.1%, seasonally adjusted, equivalent to +8.7% on an annual basis, Watson wrote. 

The CPI for beer away from home is up +5.2% YoY (unadjusted), and +0.2% month-over-month (MoM). Over the last three months, the CPI has increased +2%, seasonally adjusted, versus July. 

Comparing the CPI to scan data, there is a “pretty big difference between Circana data and CPI,” Watson noted on Twitter/X. The price of beer in scans is up +2% YoY, and is down versus three months ago, according to Watson. 

Watson wrote: “These two measures have mostly lined up in recent history, so will be interesting to see what happens going forward. My guess is CPI comes down toward scan in the coming months (often see CPI lag scan; 1 month lag better fit).” 

Read more here, including October CPI readings for total bev-alc, wine and spirits.

The fate of Anchor Brewing is still up in the air, four months after the San Francisco craft brewery ceased operations.

However, more details on Anchor’s assets have been released.

Anchor parent company Sapporo has retained Hilco Corporate Finance for the sale of the brewery and its assets. Hilco sent an email to potential buyers detailing the “acquisition opportunity,” and requesting “non-binding indications of interest” be submitted by November 17. 

Sapporo is considering offers for all of Anchor’s assets – including intellectual property, real estate and brewing equipment – “allowing for a ‘status quo’ relaunch of operations,” as well as the sale of “any individual asset or group of assets,” according to a pamphlet shared by Hilco.

Anchor’s assets include:

• More than a dozen active trademarks, including Anchor’s logos and the Anchor Steam Beer label;
• Two San Francisco properties in the Potrero Hill neighborhood – Anchor’s production facility and the Anchor Public Taps bar – totaling nearly 110,000 sq. ft.;
• Production equipment capable of producing up to 1.9 million cases of beer annually, including “unique German-sourced copper brewing equipment acquired by the brewery in 1979,” and “more modern equipment, including a state-of-the-art canning line installed in 2022.” 

All assets are “being maintained to allow for a sale to a new buyer,” according to Hilco.

Anchor’s workforce has been attempting to buy the brewery. To help its efforts, the group started a GoFundMe to help pay for a legal team and fees. The crowdfunding campaign has raised $110,796 from 1,800 since launching in September.

The last update from the company on the GoFundMe page was on October 2.

At the time, the group wrote: “Now that we’ve been able to pay our legal team and other organizations, we are focusing on the slower process of working with various-sized investors to help us raise capital for placing our bid for the brewery and its assets. Our group is working hard to meet the objectives of our partner organizations to make sure we make the best decisions for our long-term goals.

“The road to success is still a long one, but we are working with urgency to get the bid to the assignee as soon as we can/feel like we are set up for success. All the messages and support are keeping us strong in this fight and we all appreciate it. We are not done yet!"

Chicago-based Metropolitan Brewing (a.k.a Metro Brewing) will close next month, citing continued differences with the brewery’s landlord. 

The news comes a month after Metro Brewing filed for chapter 11 bankruptcy. At the time, ownership characterized the filing as a “reorganization type of bankruptcy” and that they had no plans to close. 

Ownership announced the news today on Facebook, writing: “Friends, fans, and family, we’re here to confirm that we’ve been unable to resolve our differences with our landlord, and are left with no choice but to close our business. The last day our tap room will be open is Sunday, December 17th from 11am to 9pm. We have no current plans to rebuild or revive Metropolitan Brewing in a different location, so if you like our beer -- come load up!”

Metro’s Taproom will remain open for usual hours until its last day on December 17. 

Ownership continued: “So many people have already reached out offering help, and honestly, the best thing for us right now would be for you to visit the tap room, drink some beer, take to-go beer with you, and take good care ($$) of the team behind the bar. Stock up for the holidays. Grab a case of your favorites. Grab two.

“The last 15 years are a treasure trove of memories. We worked hard. We worked as a team. We looked out for each other as we navigated some pretty scary shit. We are grateful for every soul that passed through our doors, both on Ravenswood and on Rockwell. And we are deeply sorry that we couldn’t see our way through this current situation. We tried. For years. But now it’s time to turn toward new adventures."

Total bev-alc dollar sales took an expected hit in the latest week (ending November 5), declining -4% versus the prior week, which included Halloween weekend. 

Bev-alc dollar sales were also down -1% year-over-year (YoY), while volume was down -3.2%. In the last 52 weeks, dollar sales increased +2.6%, while volume declined -2.4%. 

Circana EVP of bev-alc Scott Scanlon wrote: “The positive three-week trend came to an abrupt end this week with all categories declining as expected following the Halloween holiday. Would expect continued softness for the next week then we should see the beginning of Thanksgiving lift in advance of the earlier than typical holiday.”

Beer dollar sales and volume declined -1.5% and -3.3%, respectively, YoY in the latest week. 

Imports posted a strong week, increasing dollar sales +7.9% and volume +6.8% YoY. Constellation Brands’ Mexican import offerings Modelo (+21%) and Pacifico (+41%) both recorded YoY dollar sales gains. 

Anheuser-Busch InBev’s Bud Light continued with its double-digit YoY declines (dollar sales -24.7%, volume -24.8%). However, the light lager brand outpaced Modelo in dollar and case sales for the second consecutive week to maintain the No. 1 beer brand family title. 

Other beer brand families with double-digit YoY gains include:

• Molson Coors’ Coors (dollar sales +18.2%, volume +17.4%);
• Boston Beer Company’s Twisted Tea (dollar sales +25%, volume +21.3%);
• Kirin-owned Lion Little World Beverages’ New Belgium Brewing (dollar sales +19.4%, volume +16.4%);
• Yuengling (dollar sales +14%, volume +14.8%);
• Mark Anthony Brands’ Cayman Jack (dollar sales +27.5%, volume +26.6%);
• Geloso Beverage Group’s Clubtails (dollar sales +19.8%, volume +16.7%);
• And Lion Little’s Bell’s Brewery (dollar sales +11.3%, volume +12.3%).

Vermont’s Long Trail Brewing has partnered with Ski the East, a ski apparel company, to create Ski the East Hazy Mountain IPA. 

The limited-edition 6.7% ABV beer is now available in 16 oz. can 4-packs, and a 12 oz. can variety pack, Long Trail IPA Pack: Ski the East Edition.

The full agenda for the 2023 Brewbound Live business conference is now available, featuring nearly 40 speakers from beverage-alcohol suppliers, wholesalers, retailers, data providers and advisory firms.

Industry leaders will meet at the Marina del Rey Marriott for two days of business conversations, networking and relationship building on December 6 and 7. Tickets are available now.

The conference provides actionable takeaways to solidify your business in a tumultuous operating environment, with a specific eye toward unlocking growth and building an inclusive industry community.

Topics include:

• Evolving leadership;
• Maintaining focus;
• Future-proofing flagship brands;
• Partnering with wholesalers;
• The state of the on-premise;
• M&A currents;
• Diversity in the craft industry;
• Beyond beer growth;
• Flavor innovation;
• And much more.

The speaker lineup features:

• Leaders from top craft breweries: Rhinegeist, WeldWerks, Bell’s, New Belgium, Firestone Walker, Great Notion, Rogue, CANarchy, Karl Strauss, Three Weavers, Crowns & Hops and Lawson’s Finest Liquids;
• Leading fourth-category and beyond producers: Molson Coors (Happy Thursday, Simply Spiked) BeatBox, BuzzBallz, Fishers Island, Owl’s Brew, Stateside Vodka Liquid Death and Hella Cocktail Co.;
• Major retailers: Mellow Mushroom and Extra Mile;
• Wholesalers: Stone Distributing and Breakthru Beverage Group;
• Data providers: 3 Tier Beverages, Bump Williams Consulting and NIQ;
• Investment banks: Arlington Capital Advisors;
• Advisory firms: The E-Premise Group;
• Trade associations: The National Black Brewers Association, The Brewers Association and The National Beer Wholesalers Association.

See the full schedule and speaker lineup here.