• 💸 Sazerac to Acquire Svedka from Constellation
• 🏦 Stoli Files for Bankruptcy
• 🫗 Cisco Brewers Portsmouth Pub Closes
• 👨‍🦰 Chris Shields Ends Tenure at Rhinegest
• 🧔🏻‍♂️ Brandon Börgel Named CEO of Temescal
• 3️⃣ Highland Park's Josh Penney Joins Threes
• 🦃 Thanksgiving Week Shift Impacts Scans

Constellation Brands has reached an agreement with spirits giant Sazerac to offload its Svedka Vodka brand, the company announced today.

The sale, which is expected to close “in the coming months,” is part of Constellation’s plan to premiumize its wine and spirits business, which have not kept pace with the gains its beer portfolio of Mexican imports has delivered.

Constellation president and CEO Bill Newlands said in the announcement: “This transaction is another step forward in seeking to ensure that our wine and spirits portfolio is optimized to succeed and to meet our growth objectives.”

Svedka’s dollar sales and volume have declined -6.2% and -5.9%, respectively, at off-premise retailers tracked by NIQ in the 52-week period through November 2 (L52W), according to data shared by 3 Tier Beverages. 

Svedka is the No. 7 vodka brand in the L52W, but it dropped to No. 8 in the L4W, as it was overtaken by Pernod Ricard’s Absolut. Svedka’s trends have softened slightly in the L4W, with dollar sales down -5.2% and volume down -3.6%, according to NIQ data from 3 Tier Beverages. 

The vodka segment is dominated by leader Tito’s Vodka, which has recorded dollar sales nearly six times greater than Svedka’s in the L52W. 

Constellation acquired Svekda in 2007, nearly a decade after its 1998 launch of the Swedish import. At the time, the brand was the fastest-growing premium vodka import in the U.S., according to a press release. 

Sazerac, which is the second largest spirits supplier in off-premise channels tracked by market research firm Circana, is no stranger to taking in challenged brands and stewarding them to health. 

Last month at Beer Marketer’s Insights’ annual fall conference, Sazerac CEO Jake Wenz described how the company acquired a then-struggling Fireball Whisky (before it took on its current name) as part of a deal to acquire Dr. McGillicuddy’s from Seagram’s in the 1980s. Many years later, Sazerac’s patience and persistence with Fireball paid off and it is now a top-five spirits brand.

Insiders can go deeper into the deal, Sazerac’s strategy and Constellation's wine and spirits trends.

The pub at Cisco Brewers’ complex in Portsmouth, New Hampshire, has closed, the brand announced last week.

Anheuser-Busch InBev (A-B), which owns Cisco but does not operate its own-premise establishments, will continue to brew at the facility. The pub's last day of operation was December 1. 

Last year, the company installed a $6 million canning line at the brewery, which was expected to boost production +56% in 2024, according to Seacoast Online.

Cisco wrote on social media: “We have loved being a part of this wonderful community and want to thank our many patrons over the years, and especially our amazing team, for being so welcoming and for the incredible experience in Portsmouth.”

Insiders can read more, including recent Cisco scan data, and a recap of Cisco’s journey with A-B. 

Chris Shields has ended his decade-long tenure at Rhinegeist Brewery in Cincinnati, Ohio. 

Shields has spent nearly eight years as the brewery’s director of education. He first joined the brewery in early 2015 as a brewer and cider maker. 

Shields announced the news on LinkedIn last month, writing: “This month marks the end of my nearly 10 years with Rhinegeist Brewery. It has been an amazing journey where I was supported to grow and develop, starting as a brewer during Rhinegeist’s rapid growth to building an education program and finding my way to the stellar marketing team. The people really make this place and that is what I’ll miss the most.”

He added: “Over the years there has been a lot of change and growth at Rhinegeist, but I couldn’t be more excited to see where things go. It has been a true privilege to be a part of the Rhinegeist team, and I wish all the best to every Geister. If you’re not watching this place … you should be.”

Shields did not share where he will head next, but said to “stay tuned.”

Brandon Börgel has joined Oakland, California-based Temescal Brewing as CEO and a managing partner. 

Börgel started his new role in July, but the move was not announced until November. He takes over for founder Sam Gilbert, who announced he would be seeking a successor at the start of the year. 

Gilbert said in the announcement: “After eight incredible years building Temescal Brewing, I’ve decided it’s time to step back as CEO as I embark on a new adventure. 

“For this next phase of leadership, we wanted someone with both deep industry expertise and a commitment to our values. I’m confident Brandon is the right person to lead Temescal into its next chapter and can’t wait to see where he takes us.” 

Börgel has more than 20 years of experience in bev-alc, with marketing and sales stints at Schilling Cider, Boochcraft, Fort Point Beer, Drake’s, Almanac Beer, Speakeasy Ales & Lagers and Firestone Walker. He most recently served as director of wholesaler at Sightglass Coffee. 

Börgel said: “It’s important for me to honor what Sam & co. started. Most of all, I love the community Temescal has built. 

“The brewery has such a vibrant, unique personality – we will continue to innovate and be an inclusive space that caters to more than just beer lovers. Temescal has such amazing, loyal fans and I'm ready to take us to the next level.”

Former Highland Park Brewing head brewer Josh Penney is switching coasts.

Penney has joined Threes Brewing as head brewer of the Brooklyn-based brewery’s Gowanus brewpub. 

He will oversee the development of new brands, as well as “reimagining existing recipes and managing the production in Gowanus, which serves as our innovation center,” Threes Brewing wrote in an announcement on Instagram. 

Penney spent more than five years at Highland Park, helping the Los Angeles-based brewery win Brewery of the Year at the 2024 Great American Beer Festival. 

He told The Brewer Magazine: “Threes was a natural choice for me as their values perfectly align with what I believe in: respect for community, constant innovation, and inclusivity. I’m excited to bring my West Coast experience to Brooklyn and contribute to Threes’ continued evolution.”

Total bev-alc recorded a week-over-week (WoW) boost ahead of the Thanksgiving holiday, increasing dollar sales +6% in Circana-tracked off-premise channels in the week ending November 24.

Bev-alc recorded double-digit declines year-over-year (YoY), with dollar sales and volume both declining -13.1%.

However, the YoY decline is slightly misleading, as Thanksgiving took place during the comparable week in 2023. A more accurate assessment of how the industry performed in the second half of November will come with multi-week comps in the next report, according to Circana’s Scott Scanlon.

The holiday week shift resulted in double-digit YoY declines from all major bev-alc categories:

• Beer dollar sales -13.1%, volume -13.5%;
• Spirits dollar sales -13.8%, volume -13.5%;
• Wine dollar sales -12.5%, volume -11%.

Ready-to-drink products (RTDs) – defined by Circana as malt-, spirit- and wine-based hard seltzers, canned cocktails and flavored adult beverages – recorded a -10.8% YoY decline in dollar sales and -14% decline in volume.

Intoxicating hemp beverages have become a hot topic among suppliers, wholesalers and retailers in search of the next big thing. 

The 2024 Brewbound Live business conference will bring together leaders and early movers in the burgeoning but volatile space, which some believe is poised to become its own category.

Climbing Kites co-founder Scott Selix, Indeed Brewing chief business officer Ryan Bandy and BevStrategy LLC and Creature Comforts co-founder Chris Herron will offer their perspectives on the opportunity for delta-9 THC-infused beverages, how the functional nature of these products has appealed to consumers across generations and myth-bust stereotypes within the segment.

They’ll also explain navigating the ever-shifting legislative and regulatory landscape, how they’re winning over wholesaler and retailer partners and how the category goes mainstream. 

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

Check out the 2024 Brewbound Live speaker roster.

 Register for Brewbound Live. 

Applebee’s is joining the lineup of retailers offering an opportunity for  one-to-one meetings at the Brewbound Live  business conference December 11 + 12, Brewbound Live in Marina del Rey, California.

Applebee’s is one of the world’s largest casual dining brands throughout the United States and abroad with more than 1,500 locations across 11 countries and territories. Nathan Grover, Executive Director of Bar & Beverage at Applebee’s, will be available for private, pre-scheduled meetings.

The lineup for one-to-one meetings includes Whole Foods Market, ExtraMile Convenience, Reyes Beverage Group, Breakthru Beverage and California Beverage Solution.

To be considered for a meeting, you must be registered for Brewbound Live. Upon registering, you’ll receive detailed instructions on how to sign up for one-to-one meetings.

Register for Brewbound Live 2024.

After a packed news week, the Brewbound team breaks down the latest headlines, including leadership reorganization and staff cuts at the Brewers Association, an impending CEO change at Heineken-owned Lagunitas Brewing and Sapporo-Stone ceasing exports for the craft beer brand. 

Jess, Zoe and Justin also preview the Brewbound Live business conference coming up December 11 and 12 in Marina del Rey, California. The team shares highlights of the on-stage talks and surrounding events, including networking parties, the Pitch Slam competition and retailer and wholesaler one-to-one conversations. 

Listen here or on your preferred podcasting platform.