• 📉 A-B US Shipments -12.7%, Depletions -11.9%
• 🤝 A-B and Teamsters Reach Tentative Deal
• 👾 Monster Writes Down Craft & Seltzer Biz
• 🎙️ Brewbound Podcast: 3 Up 3 Down with 3 Tier
• 🏈 Circana Weekly Scans Post-Super Bowl Week
• 🍩 Dunkin’ Spiked Doubles Distribution Footprint
• 🏄 Allagash Brewing Launches Surf House

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Anheuser-Busch InBev (A-B) recorded double-digit shipments and depletions declines for its U.S. business in 2023, drawing to a close a tumultuous year for the company, A-B reported today.

U.S. shipments (sales to wholesalers) ended the year down -12.7%, due primarily to the market decline of Bud Light, while depletions (sales to retailers) were down -11.9%. The declines followed shipments and depletion losses in 2022: -8.6% and -7.6%, respectively. 

U.S. revenue declined -9.5% versus 2022 (+3.7% when calculating revenue per hectoliter), a significant change from the +2.3% revenue increase recorded last year (+6.7% for revenue per hectoliter). Earnings before interest, taxes, depreciation and amortization (EBITDA) declined -23.4% versus 2022.

However, A-B leadership reminded investors and analysts during an earnings call that A-B is a “global business,” and noted that the company recorded all-time high total revenue of $59.4 billion in 2023, a +14% increase from 2019, when revenue was $52.2 billion, before declining the following year due to the COVID-19 pandemic. 

In Q4, A-B’s U.S. revenue declined -17.3% year-over-year (YoY), while EBITDA declined a whopping -34.2%. Two-thirds of that EBITDA loss was “due to market share performance,” while the rest was from productivity loss, increases in sales and marketing investment, and support given to wholesale partners, according to the earning release published ahead of today’s call.

Q4 U.S. depletions declined -12.1% YoY, again “primarily due to the volume decline of Bud Light,” while shipments declined -16.1%, “as shipments lagged stronger depletions in December,” the company wrote in the release.

A-B continues to “gradually” improve its market share of the U.S. beer market following the rapid declines of last spring, claiming 38.3% market share at the end of 2023, CEO Michel Doukeris told investors. 

Doukeris that the company recovered 120 basis points of share from what it lost in May 2023, to February 2024, and is now averaging a recovery of 10-20 basis points every three-to-four weeks.

Doukeris said: “We are making progress. It is not at the fast pace that we were expecting or that we've been working for, but nevertheless, progress is in place.”

Insiders can read more, including the company Q4 and full-year global performance numbers, projections for 2024, and Doukeris’ comments on shelf space.

The International Brotherhood of Teamsters and Anhsuer-Busch InBev (A-B) have reached a tentative agreement on a new five-year deal that the union said will raise pay, improve health care and retirement benefits and provide job security for its members at A-B’s U.S. 12 breweries, the Teamsters announced on social media Wednesday evening. 

The Teamsters said the agreement was unanimously recommended by its National Negotiating Committee after A-B resumed negotiations Wednesday afternoon. The full agreement is expected to be shared with Teamsters members prior to the ratification process, with a vote expected next week.

Teamsters general president Sean O’Brien said in the announcement: “After a long day and a longer campaign, we’ve reached an agreement that sets a new high standard for the brewing industry."

An A-B spokesperson shared the following statement: “This tentative agreement builds even further upon our existing industry-leading package of wages, healthcare, and retirement benefits, and it includes significant commitments to job security.”

The new deal is a drastic shift from just hours earlier on Wednesday when O’Brien accused A-B of “lowballing workers on wages,” “not investing enough money in” its members’ pensions and making “no firm commitment on job protections.”

The tentative deal appears to avert a strike that was hours away as A-B’s contract with its union members was slated to expire at the end of the month. 

The tentative agreement includes “significant job security” for all union members at A-B’s breweries, which include brewers and packaging and warehouse staff. Wages will increase $4 per hour in the first year of the contract and $8 per hour over the five-year period, an increase of +23%, the Teamsters wrote.

The tiered healthcare system has been eradicated and “all workers” will have access to “the same high-quality Teamsters health care coverage.”

Union members will get a $2,500 ratification bonus, and retirement benefits have been restored for retired and active Teamsters.

The deal also increases pension contributions and benefits, and brings members’ maximum vacation accrual to eight paid weeks. 

As A-B appears to have an agreement with the Teamsters, union members of the Molson Coors production facility in Fort Worth, Texas, continue to strike. 

Read more here.

As expected, Monster Beverage Company reported a $39.9 million impairment charge on its alcohol business. The company attributed the writedown “to the continuing challenges in the craft beer and seltzer categories.”

Monster execs had warned analysts and investors that an impairment charge would be coming on its CANarchy business, which has since been rechristened Monster Brewing Company.

The company explained: “The Alcohol Impairment Charges relate to certain non-amortizing intangibles as well as property and equipment acquired as part of the CANarchy transaction. Exclusive of the Alcohol Impairment Charges, operating expenses as a percentage of net sales were 26.8% for the 2023 fourth quarter.”

Monster’s alcohol business, including FMB brand The Beast Unleashed and craft beer brands, increased net sales +30.6%, to $35.2 million, in Q4, up from $26.9 million in Q4 2022. 

Nasty Beast Hard Tea hit store shelves last month and is now available in 40 states “with a goal of national distribution by midyear,” Co-CEO Rodney Sacks said. The line is available in four flavors in 24 oz. cans and variety 12-packs of 12 oz. cans.

Sacks said in a press release: “We achieved our goal of securing availability of The Beast Unleashed throughout most of the United States by the end of last year and have commenced with the roll-out of The Beast Unleashed in 24 oz. single-serve cans in the convenience and gas channel. We are currently launching Nasty Beast, our new hard tea, in 12 oz. variety packs, as well as in 24 oz. single-serve cans. Our innovation pipeline for both our non-alcohol and alcohol beverages remains strong."

3 Tier Beverages’ Mary Mills and Stephanie Roatis break down the early year data, including positive cider trends in convenience, non-alc trends, hard seltzer rationalization and much more. They also get into the growing trend of private label hard seltzer and whether anyone can break through the hard coffee curse. 

Plus, the Brewbound team discusses the potential strike at Anheuser-Busch InBev’s U.S. breweries (note: this was recorded before the tentative agreement was reached Wednesday evening), and they play Another Round or Tabbing Out on the chances of Michelob Ultra challenger brands staking a claim of the better-for-you beer market. 

Listen here and on all popular podcast platforms. 

Total bev-alc dollar sales unsurprisingly declined following the Super Bowl, dipping -5% week-over-week (WoW) in Circana-tracked off-premise channels in the most recent week (ending February 18).

Bev-alc dollar sales were nearly flat year-over-year (YoY) – down -0.5% – while volume was down -3.6%. 

Circana’s Scott Scanlon wrote in the latest weekly report: “Post the big game we are likely entering another rangebound period for the next 4-5 weeks awaiting the Easter holiday.”

Beer dollar sales were down -2.2% YoY, and volume was down -4%. In the last four weeks, beer dollar sales declined -0.4% YoY, while volume declined -2.1%. Over the last 52 weeks, beer dollar sales have increased +1.9%, but volume remains down -1.9%

Spirits continue to be the only category to be in the green, with dollar sales up +2.4% YoY and volume up +2.9% in the latest week. In the last four weeks, spirits dollar sales were up +3.8% and volume were up +4.6%. Over the last 52 weeks, spirits dollars sales increased +6% and volume increased +7.4%.

Mass. Bay Brewing is doubling its Dunkin’ Spiked distribution footprint with the addition of Georgia, Minnesota, Florida, North Carolina, Kentucky, Louisiana, Illinois, Virginia and Indiana in the first half of 2024. The added states will take Dunkin’ Spiked’s footprint to a total of 26 states. 

According to Mass. Bay, Dunkin’ Spiked became “the best-selling hard coffee” and the “top share gainer” in FMBs in the Northeast region after launching last fall.

New package formats are on the way in March, including Dunkin’ Spiked Slightly Sweet Iced Tea 12-packs and 24 oz. single-serve cans and 24 oz. singles of Strawberry Dragonfruit Refresher. Dunkin’ Original Iced Coffee will also launch in 24 oz. singles next month.

The product is available now in Alabama, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, West Virginia and Wisconsin.

Allagash Brewing has a new seasonal offering to go along with the unseasonably warm weather New Englanders are feeling right now. 

Surf House, a 5.5% ABV summer lager, is rolling out now across the Portland, Maine-based craft brewery’s 20-state footprint. It is brewed with Maine-grown grain, including Maine Malt House Pale Malt from Buck Farms in Mapleton and Buck Farms-flake corn grown by Crane Farms in Exeter, according to a press release. 

Allagash brewmaster Jason Perkins said in the release: “Surf House epitomizes summer relaxation and it’s a great way to kick off our seasonal House series. It’s a super accessible beer that we’re proud to share with our customers to incorporate into their summer plans, from beach days to barbecues to camping and more.” 

The beer is also a part of “Allagash’s first-ever, true rotating seasonal beer line-up,” the House series, featuring a “new cohesive line-up” including Haunted House, the brewery’s hoppy dark ale fall seasonal, and Ski House, a new winter white ale launching later this year.

We’re taking this show on the road. The Brewbound Podcast On-Location is heading to industry gatherings across the country, starting March 12-14 with the California Craft Beer Summit in Sacramento, hosted by the California Craft Brewers Association. 

Look for Brewbound Podcast hosts Jess Infante and Justin Kendall conducting interviews with industry leaders on the show floor. 

Reach out to podcast@brewbound.com if you’d like to connect at the event. Also, look for more Brewbound Podcast On-Location announcements in the near future.