• 🤝 Brewery Collective Formed in Iowa
• 💔 Gambrinus Founder Carlos Alvarez Has Died
• 🛒 Circana: Craft Trends in Grocery
• 📊 Circana State of Bev-Alc Report
• 🚛 Climbing Kites Distribution Agreements

A pair of Iowa breweries have started a collective, while maintaining independent ownership. 

Backpocket Brewing in Coralville and SingleSpeed Brewing in Waterloo have linked up under the Parallel Brewery Collective umbrella. As of mid-February, the breweries are working under a shared-service agreement, with a shared sales team now offering both breweries’ portfolios, and are working together on supply chain procurement. 

Several craft brewers have formed partnerships over the years, including the CANarchy Craft Brewery Collective, Artisanal Brewing Ventures, Great Frontier Holdings and IndieBrew, among several others. In the instance of Parallel, equity is not changing hands, and the platform is similar to that of a co-op like the Independent Brewers Alliance. 

Conversations between the breweries started in October, when Backpocket managing partner Aaron Vargas and SingleSpeed founder David Morgan began comparing notes on procurement. Those talks expanded when both companies were in the market for a rep to cover the Des Moines market, Vargas said. The idea of hiring one person to sell both breweries’ portfolios was broached. 

Although there was doubt a partnership would work at first, the more they talked, the more they believed it could, as the breweries offer complementary portfolios and share the same distributor networks in the state of Iowa.

When SingleSpeed and Backpocket examined their account bases, they found around 500 accounts, 80% of which overlapped. This was the impetus for forming a “tighter” business relationship.

SingleSpeed director of business development Nick Bandy, who is being tasked with leading Parallel, told Brewbound: “When they're out there, they're working on both brands actively. From a salesperson standpoint, they have a bigger portfolio. So the members of our sales team are chalking up more wins.”

Brewbound Insiders can read more about how SingleSpeed and Backpocket are approaching the collective, and what they’re looking for in potential partners. 

Beer industry veteran Carlos Alvarez, who founded the Gambrinus Company and was the first to import Corona Extra to the U.S., died this week. Beer Business Daily first reported the news this morning, citing an internal message at the brewery, and other outlets, including the San Antonio Express-News, followed.

Alvarez founded Gambrinus in 1986 to import Corona and other Grupo Modelo brands. Three years later, the company acquired Spoetzl Brewery, the maker of Shiner Bock and then the oldest independent brewery in Texas, according to the Texas Business Hall of Fame, to which Alvarez was inducted in 2010.

The Gambrinus umbrella grew to include Berkeley, California-based Trumer; Portland, Oregon-based BridgePort; and Pete’s Wicked Ales. However, a changing craft industry forced the closure of the latter two in 2019 and 2011, respectively.

In 2022, Gambrinus’ brands (Shiner and Trumer) produced 492,320 barrels of beer, and accounted for 2.03% of all BA-defined independent craft beer, according to the trade group.

Insiders can read more about Alvarez’s life and accomplishments.

Craft’s performance in the grocery channel continued to lag behind the overall category, as both dollar sales (-1.9%) and volume (-2.9%) declined in the four-week period ending March 24, according to market research firm Circana’s monthly report. 

The total beer category outperformed the craft segment, with dollar sales increasing +0.5% year-over-year (YoY) and volume declining -1.2%. 

Year-to-date (YTD) craft dollar sales declined -2.3% – equivalent to the loss of more than $12 million – and volume declined -3.3%. Again, craft’s performance trailed the total beer category (dollar sales flat YTD, volume -1.2%). 

Two brands that didn’t pop in the overall top 30 list made it to the top 30 for grocery stores in the last four weeks: Sapporo-owned Stone Delicious IPA (dollar sales -3.9%, volume -12.6%) and Boston Beer Company’s Samuel Adams variety pack (dollar sales -30.1%, volume -30.5%).

Notably, Stone Delicious IPA also increased its average case price in the four-week period by $4.09 YoY, to $45.26. The brand had the second largest price increase YoY, behind Elysian Space Dust, which is the second highest priced brand in the channel, increasing its average case price by +$5.61 YoY, to $48.01. 

Five other brands recorded price increases of more than $1, and all five recorded volume declines in the period:

• Sierra Nevada Pale Ale, +$2.30, to $40.69 (dollar sales -0.1% YoY, volume -5.8%);
• Shiner Bock, +$2.23, to $36.04 (dollar sales -9.3%, volume -14.9%);
• Firestone Walker 805, +$2.07, to $39.05 (dollar sales -1.5%, volume -6.8%);
• Sierra Nevada Torpedo Extra IPA, +$2.13, to $39.31 (dollar sales -7.5%, volume -12.5%);
• Sierra Nevada Seasonal, +$2.91, $41.76 (dollar sales +0.5%, volume -6.5%). 

Meanwhile, significant price declines were recorded by Voodoo Ranger Juice Force (-$2.32, to $43.66) and Kona Big Wave (-$4.24, to $32.56). As previously mentioned, the two brands had the largest dollar sales and volume gains in the four-week period. 

Insiders can read the full report, including how non-alcoholic beer maker Athletic Brewing performed in grocery, and where its brands would rank if Circana included Athletic in its craft data set.

Brewbound previously reported on multi-outlet and c-store craft performances. Catch up on the report here.

Fewer displays in beverage-alcohol, notably in premixed cocktails, beer and cider, should be considered a warning sign for suppliers, according to a new report from Circana.

The market research firm’s "State of the CPG Beverage Alcohol Industry" report explores factors driving demand and identifies key growth opportunities in the bev-alc market. This year, the data dive explores how Gen Z is driving the thirst for variety, what categories across all beverages are gaining share and where ready-to-drink cocktails (RTDs) are finding appeal despite softening growth.

The average number of bev-alc displays per store by department dipped to 8.1 in 2023, down -0.9 in grocery stores in the 52 weeks ending Q3 2023 compared to a year ago. Beverages averaged 20.3 displays per store, down -0.4. Sports drinks (+0.4) and aseptic juices (+0.2) added the most displays.

The loss of displays among premixed cocktails/coolers (-0.5) and beer/ale/cider (-0.4), should encourage suppliers to boost in-store activation while also beefing up pre-shop engagement via store apps and social channels, the report said.

Those decreases echo how consumers are changing their “share of sip,” according to the report, with carbonated soft drinks, water, and sports/energy drinks gaining share in multi-outlet plus convenience channels. 

Sports drinks accounted for 8.9% of share in the 52 weeks ending December 31, 2023 versus 6.5% in 2020; water accounted for 12% versus 10.4% in 2020, and carbonated soft drinks 17.2% versus 14.5% in 2020.

Meanwhile, spirits, cocktails and coolers were down from 12.5% in 2020 to 11.5% in 2023, and beer and cider were down from 16.1% in 2020 to 13.5%.

Insiders can read the full report recap, including how RTDs are appealing to Gen Z.

Cannabis-infused sparkling water brand Climbing Kites has signed distribution agreements in its home state of Iowa, as well as Tennessee, the company announced Tuesday. 

Iowa City-headquartered Big Grove acquired a 51% stake in Climbing Kites last August from Scott and Whitney Selix, founders of Des Moines-based Lua Brewing, and head brewer Zach Dunbar. Climbing Kites produces Delta 9 THC- and CBD-infused non-alcoholic sparkling waters between 2.5mg and 10mg of THC and varying levels of CBD.

Climbing Kites was previously self-distributed. In Iowa, the brand will be distributed by Iowa Beverage (a Molson Coors house), while Eagle Distributing Companies (an Anheuser-Busch InBev wholesaler) will distribute it in the Knoxville and Memphis markets beginning in May. 

Dave Moore, Climbing Kites CEO, said in the announcement: “Having the support of Iowa Beverage and Eagle Distributing Companies makes a huge statement about the opportunity for growth in Delta-9 beverages. We have found that consumers are actively looking for these beverage products, and we’re well-positioned to help build awareness and education while driving growth in this emerging category that has massive potential.”

The news comes as Midwestern grocery chain Fareway is testing offering THC-infused beverages in its stores.

Last week, the Iowa Legislature passed a bill (House File 2605) that would age gate products to 21-and-over consumers and limit the amount of THC in beverages to 4 mg per serving and 10 mg per container. The bill is now awaiting Gov. Kim Reynolds’ signature.

In less than two weeks, the Brewbound Podcast On Location will be in LAS VEGAS for the Brewers Association’s Craft Brewers Conference.

The Brewbound team will be on the trade show floor (Booth 1989) in Sin City conducting interviews with industry leaders, starting Monday, April 22, through Wednesday, April 24. 

Interested in connecting? Email podcast@brewbound.com. 

And make sure to catch Brewbound Podcast On Location interviews from the California Craft Brewers Conference now, with new episodes coming in the next few weeks.