Welcome to Brewbound’s Inside Look at the Beer Business for the week that was … Saturday, May 11, 2024.

While it may be all the rage to give shout-outs to Applebee’s in songs these days, there are apparently more than 500 songs out there with lyrical references to good ‘ol BUD (maybe not so much with BUD LIGHT in 2024, at least in a certain genre of music).

So, the folks at A-B are finally doing something about it, and using the songs to run as ads on SPOTIFY in certain global markets (presumably the parts that uh, mention the beer). Or at least I really hope this is all true – the story is from Fast Company, but the author is uh, Jeff Beer #realname. 🥴

AND: Come to the beach 🏖️ with BREWBOUND in December! (please bring extra SPF for Justin) BREWBOUND Live is returning to Marina del Rey, CA on Dec. 11 & 12 for 2 days of insightful conversations and analysis, plus top-notch industry networking opportunities. 

Bringing in bucks 💰 for RUSSIAN RIVER, of course, but even more so for the surrounding Sonoma County, which put the economic boost to the area at $8.6 million this year.

Yeah, moving this event out of rainy February and into late March was a good call – that impact 💰 number is also +36.5% over last year, and 2x over 2019.

The brewery estimates that more than 25k people attended this year’s celebration across its two locations, from seven countries and 40 states/territories.

ESTRELLA GALICIA

Market Rep – Greater NYC Tri-State area

CRANK ARM BREWING CO

Sales Rep - Raleigh, NC

ZILKER BREWING CO

BARDSTOWN BOURBON hired former MC exec Pete Marino as its new president. Pete has consulted for the business over the past 10 months.

The BI hired Stacy Skelly as VP of strategic communications, coming over from THE REIS GROUP, a D.C.-based healthcare public relations firm.

✌️LEFT A JOB

BREWDOG CEO James Watt has left his role, and now has the title of “captain” #OfCourse, as well as founder, of course. He’ll also be a non-executive director on the company’s board of directors. 

MODELO may rule overall off-prem sales, but not grocery

At least according to new YTD grocery data from CIRCANA through April 21, which has the best-sellers as:

• MICH ULTRA: $216 million (-0.6%)
• COORS LIGHT: $212 million (+11%)
• MILLER LITE: $200 million (+6.4%)
• BUD LIGHT: $198 million (-23.8%)
• MODELO ESPECIAL: $188 million (+16.3%)

BUT: MODELO still rules convenience by far with $795 million – BUD LIGHT is next around $634 million.

AND: MODELO is thus #1 overall in the off-prem, with $1.13 billion YTD through April 21.

OH RIGHT, CRAFT! 🤦

Yeah those sales are -1.3% YTD in the off-prem through April 21, according to CIRCANA data, and volume is -3.4%, with the grocery channel continuing to be the big drag here – much like me at a frat mixer in 2024 (um, arms-length distance on the dance floor, people!)

As your comp – overall beer was -0.3% sales, -2.2% volume in the same period.

Justin has your full breakdown of sales in the last 4-week period, including which 9 of the top 30 craft brands were up in both volume and sales.

While yes, the BUD LIGHT loss has been devastating to the U.S. business – it’s really important to keep in mind what a global company A-B is, especially compared to MC, whose business is primarily North America based.

• U.S. Shipments (sales to wholesalers): -10.1%
• U.S. Depletions (sales to retailers): -13.7% (pretty much all due to BL)
• U.S. Profitability (EBITDA): -17.9%
• Global EBITDA: +5.4% (a smidge under $5 billion)
• Global revenue: +2.6% 
• Global volume: -0.6% (-1.3% for beer)
• North America volume: -11.1%

If current trends continue, North America will become A-B’s smallest global market for volume by next Q1.

But as for BUD LIGHT’s Q1 2024, yeah 🫣:

Oh beer shipments, how could you!? Look – you’ve made Jess ☹️, are you happy now? Yes, according to the BI, tax-paid beer shipments in March were -13.6%. 

Thus, wiping out the gains from January and February, and putting 2024 -1.8% thus far vs. 2023 – that’s with both final Jan. & Feb. numbers being revised upwards.

This week’s pod features a BA twofer!

• Bart Watson, chief economist and VP of strategy 
• Katie Marisic, senior director of federal affairs 

PLUS: Justin and Zoe ask the beer business if it’s doing OK there buddy? Dive into the latest April data, and look back at the March shipment numbers. 

Listen Here!

• FOUNDERS is joining the hop water wagon, launching Hoppy Mood nationally in 12 oz. can 6-packs.
• Union picket lines have formed at MC breweries in OH and GA, in addition to of course Fort Worth, TX.
• WI contract brewer CITY BREWING reached a tentative new 5-year agreement with its union. Wages are reported to be +43% over where they were at when the previous contract expired.
• MONSTER’s alcohol brand sales were +21% in Q1 YoY, up to $56 million. 
• GREAT LAKES CEO Mark King has left the company after a 5-year run. CCO Chris Brown and COO Steven Pauwels have been set as interim-CEOs for the rest of 2024 at the Ohio brewery, with a plan to evaluate the setup come 2025. GL was the 18th largest craft brewery on the BA’s 2023 list.

This week’s beer is going out to the kids I don’t have, who would definitely not be allowed to order $18 mocktails at NYC restaurants like some of the kids described in this new NY Times piece.

Yes, apparently this is a thing – including among some high schoolers who come into restaurants for mocktails at lunch or after school … although admittedly there is a fine line between a drink trying to mimic an old-fashioned, and ones that are basically just a bunch of juices and fruits/herbs mixed together and served with a $17 upcharge (it’s important kids learn life lessons early).

No word in this piece if this is extending to non-alc beers either out and about, or at home, but either way – I’m with the dad who said, “What happened to the Shirley Temple for $3.50?”

Slainté!  

-Sean McNulty