• 📣 New Belgium CEO: Adapt or Die
• 🏭 A-B to Close North Dakota Malt House
• 🎃 Circana Weekly Scans
• 🐬 Athletic’s Next Netflix Beer
• 🌴 Narragansett Expands to Northern CA

More than three decades after launching with amber ales, Kirin-owned New Belgium Brewing’s and Bell’s Brewery’s portfolios look a little different, in very intentional moves to stay relevant with the rapidly changing bev-alc market, according to CEO Shaun Belongie. 

Belongie, who spoke at Beer Marketer’s Insights’ seminar this week in New York City, said: “Imagine if we were still sitting there going, 'All right, amber ales, they're coming back! We'd be in a tough spot.”

Belongie challenged bev-alc companies not to pigeonhole themselves or their products within segments, and think more about what a consumer is looking for. He likened the updated strategy to how New Belgium has approached Voodoo Ranger Juice Force, which by definition is a hazy imperial IPA, but “operates” more like a flavored malt beverage brand than a craft beer. 

Belongie said: “You get trapped by the way Nielsen or IRI [Circana] define your category. The idea [is] that, ‘Oh, am I in this segment or that segment?’ and that's how consumers see it, but of course, we know that that's actually not the way it works. No one goes into a grocery store going, ‘Gee, what's the wheat aisle look like today?’ It's just not how it works.

“We've been through many, many iterations, and willing to change the direction, try new things, which I think is a really powerful way to think about it, and has enabled our success, and is something that I think as a category we need to continue to push,” he continued. 

“There was always this understanding that if you're not willing to shift, you're going to die.”

🤏 Juice Force and Tropic Force Mini Rippers 

In March, New Belgium will release 7.5 oz. cans of Voodoo Ranger Juice Force and Tropic Force, named Mini Rippers. Both 9.5% ABV offerings will be available in 8-packs, priced $1 to $2 below their 12 oz. 6-pack counterparts. 

Mini Rippers speak to consumers’ desire for “value,” which has been hard for craft to capitalize on as the segment is “one of the most expensive per serving segments in the category,” Belongie said. 

Belongie said: “Where we started really thinking about it is, how do we disrupt that value equation in grocery, particularly because we're seeing such a struggle for 6-packs across craft where I think we've crossed price thresholds, which has made it much less attractive for consumers.” 

The offerings will start as a grocery play. However, distributors are already asking for larger formats for c-stores, and New Belgium sees opportunity for Mini Rippers in the on-premise with  bucket deals. 

⚡️ Introducing LightStrike 

While searching how it can speak to Gen Z consumers, New Belgium found that the generation wants something in the “sessionable hard seltzer space,” that has “better-for-you cues” that aren’t too much “in your face” (think Olipop or Poppi), and that feels familiar, but no one has thought of it yet. 

Enter: LightStrike, New Belgium’s take on the sports drink and hydration space.

Launching January 1, LightStrike will be a non-carbonated 5% ABV beverage made with coconut water and sea salt. The offering will be packaged in 16.9 oz. resealable plastic bottles, with 120 calories and four grams of sugar per 12 oz. serving.

LightStrike will be available in single-flavor four-packs (SRP $9.99-10.99) in flavors such as Lemon Lime and Orange Mango. New Belgium is hoping to place the offerings on shelves adjacent to hard seltzer, and will be investing a “significant amount” in media to promote the brand. 

Insiders can read more, including New Belgium’s plans for Voodoo Ranger and Bell’s Oberon, and Shaun’s comments on whether the company will participate in the spirits market.

Anheuser-Busch InBev is closing its malt house in Moorhead, North Dakota, and offloading its elevators in West Fargo and Sutton as part of an arrangement with Rahr Malting Co., according to Inforum.

As part of the agreement with Rahr, the malt company will pick up “the full capacity of malt production for Moorhead” and any new supply will go to the company’s Shakopee, Minnesota-based malt house in 2025. 

Nicole Zaharadka, director of agronomy for Anheuser-Busch, told the outlet: “Anheuser-Busch purchases, on average, more than $50 million a year in barley from our 250+ grower partners across the Midwest, including North Dakota and Minnesota, which is more than any other brewer, and this will not change.

“We remain committed to supporting our grower partners and will continue to source directly from them as we have for the past 165 years."

The Moorhead facility opened in 1978 and reportedly employed around 40 workers.

In a Brewbound Insider exclusive supply chain update by Agrowgate, the firm noted that the 2024 barley crop has seen reduced acreage in the U.S. and Canada but favorable growing conditions have led to strong yields that are helping stabilize pricing. Plus, production levels are enough to meet demand. 

Per Agrowgate: “Breweries can anticipate relatively stable or slightly decreased costs for barley into early 2025, barring any significant shifts in export demand or adverse weather affecting next year’s planting season.”

With the sun officially set on spooky season, total beverage-alcohol off-premise dollar sales increased +1% year-over-year (YoY) in the week ending November 10, according to market research firm Circana. 

This follows +4% YoY growth for the prior week (through November 3), which included Halloween.

Circana EVP of bev-alc Scott Scanlon wrote: “Healthy Halloween data was expected to retrace in the weeks following. Wine saw a significant reduction, but beer and spirits is holding at about +1% growth vs. prior year. We will likely see further decline in the data for the next couple of weeks in advance of the Thanksgiving holiday expected surge. 

“It is a bit early to predict the strength of the upcoming holidays, but based on Halloween we believe we could see positives as we close out the year.”

Both beer (+1%) and spirits (+1%) recorded YoY gains, but wine sales declined (-7%). 

Domestic super premiums (+7%) and imports (+5%) drove the beer category’s gains, primarily on the backs of Anheuser-Busch InBev’s Michelob Ultra (+8.1%) and Constellation Brands’ Modelo (+5%), Corona (+6.1%) and Pacifico (+22%). 

In beyond beer, Mark Anthony Brands’ White Claw hard seltzer delivered growth at +7.1% YoY, as did Boston Beer’s Twisted Tea (+6.7%).

The next collaboration beer between non-alcoholic beer maker Athletic Brewing Company and streamer Netflix will be Marine Odyssey IPA, which was inspired by the five-part documentary series Our Oceans. 

The hazy IPA is the second beer in Athletic’s three-part series with Netflix, following the 2023 release of Geralt’s Gold, an NA helles inspired by The Witcher. 

Marine Odyssey IPA is now available in 12 oz. can 6-packs in select retailers nationwide as well as on Athletic’s website, launching in concert with the release of Our Oceans, which is narrated by former President Barack Obama. 

Athletic CMO Andrew Katz said in the announcement: “Just as Our Oceans uses groundbreaking technology to capture the hidden beauty of marine life, Marine Odyssey embodies the spirit of innovation and dedication to quality. 

“We hope this release invites viewers to dive deeper into the wonder of our oceans and inspires a renewed appreciation for the natural world around us.”

Watch the trailer for Our Oceans here.

Athletic was recently featured in a Wall Street Journal video titled “How Athletic Brewing Outsold Heineken’s and Bud’s Nonalcoholic Beer,” which credited the craft producer with driving a third of category growth for the last four years. 

Among the notable stats in the Journal video:

• 75% of Athletic customers are under age 45;
• 50% of Athletic’s customers are buying the brand where they normally buy water or soda;
• Athletic is the top-selling beer in Whole Foods stores for more than a year;
• And for every 3.5 gallons of water Athletic uses, it creates 1 gallon of NA beer, whereas the average craft brewer uses about 7 gallons of water for every gallon of beer, per Brewers Association data.

Athletic co-founder Bill Shufelt also appeared on the How I Built This podcast this week. 

Rhode Island-based Narragansett Beer is bringing its 134-year-old brand to the West Coast.

The craft brewery’s Narragansett Lager will now be available in on- and off-premise accounts in Northern California, becoming the company’s 27th state. 

Narragansett has partnered with Delta Pacific, Mussetter and Morris Distributing to distribute its beer in the region, according to a press release. 

Narragansett president Mark Hellendrung said in the release: “As we steadily continue our expansion, it’s thrilling to think that our beloved Lager will now be enjoyed in a craft beer culture that’s world-renowned. Northern California has always been an area at the top of our fan request list and we’re proud to be a part of that vibrant community by sharing a bit of New England heritage with our neighbors out West.” 

Narragansett was the 23rd largest Brewers Association-defined craft brewery in 2023, producing nearly 110,000 barrels of beer, a +10% increase year-over-year. 

Retailers, wholesalers and analysts have preached focus as a key to winning in 2025 and beyond. 

During the 2024 Brewbound Live business conference, leaders from Whole Foods Market, Deschutes Brewery and Bump Williams Consulting will define what a focused strategy looks like, why retailers are asking suppliers to sharpen their plans and portfolios, and how laser-focused lineups are generating sales results. 

Joining the conversation will be:

• Peter Skrbek, CEO, Deschutes Brewery;
• Mary Guiver, principal category merchant for beer, Whole Foods Market;
• Brian “BK” Krueger, VP of business development and portfolio strategies, Bump Williams Consulting. 

Brewbound Live takes place December 11 and 12 at the Marina del Rey Marriott in California. Tickets are available now. 

The conference will bring together leaders from all three tiers for business-focused conversations on driving the bev-alc industry forward, data presentations, networking and brand building. 

Check out the speaker roster.

In addition to the mainstage programming and networking parties, Brewbound Live will feature opportunities for one-to-one conversations with retail buyers from chains (Whole Foods and ExtraMile Convenience Stores) and distributors (Breakthru Beverage California, Reyes Beer Division and California Beverage Solution – Stone Distributing, Markstein Sales and Heimark Distributing). Registered attendees will be considered for meetings with buyers, as space is limited. Find out more details here.

Brewbound Live sponsors include John I. Haas, Abstrax Hops, Suntory, Yeti, NIQ, Crafted ERP, Strike Visuals, Fast Track Packaging, Foundry, BeatBox, Firestone Walker and JuneShine.

Each year, the Brewbound Awards are presented to honor the most influential and impactful companies, brands, people, products, ideas and trends from across the beer industry landscape.

The awards celebrate beverage-alcohol companies for their achievements and impact throughout the last year and serve as an appreciation of notable industry members, trend setters, breakout brands, change agents and up-and-coming entrepreneurs.

Brewbound is proud to announce the nominees for its 2024 Awards, with the exception of Person of the Year and Cause of the Year. 

See the full list of 2024 Awards nominees at Brewbound.com.

Winners will be announced at Brewbound Live 2024 in Marina del Rey, California on December 11. Watch the announcement of Brewbound’s 2024 Award Winners and Rising Stars at Brewbound.com around noon PT on December 11.

This week the Brewbound Podcast crossed the 200th episode milestone. Insider’s Week in Beer newsletter writer Sean McNulty joins to celebrate.

The Brewbound team recaps the latest headlines, including the Lord Hobo-Lone Pine merger, the Beer Institute’s Annual Membership Meeting, layoffs at Molson Coors’ remaining craft production facilities and Monster’s Q3 financial results. 

Plus, the gang plays Another Round or Tabbing Out, recalls Episode 100 (we think) and time capsules recent life moments for the next podcast milestone. 

It’s a fast-moving show, with an unexpected Real Housewives detour.

Listen here or on your preferred podcast platform.