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DAILY BRIEFING | Today's news & insights for the beer industry. |
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| Today's Top Story | | | Nationwide, sales of distributed draft beer have stalled at the same levels reached in 2021, as the on-premise reopened following COVID-19 pandemic-driven closures. The draft market is estimated to be 2 million barrels below historic trends, Brewbound editor Justin Kendall said, citing data from Brewers Association chief economist Bart Watson, to kick off a conversation about the state of draft beer during Brewbound’s recent Brew Talks meetup in Denver last month. Panelists included: - Dogfish Head co-founder Sam Calagione;
- Buffalo Wild Wings director of beverage strategy and innovation Jason Murphy;
- and Tamarron Consulting co-founder and president Lori Scheiffler.
Pandemic-driven consumer spending shifts toward the off-premise may be stickier than anticipated, and those changes have taken middle-tier attention with them, including the proliferation of 19.2 oz. single-serve craft cans and drinkers’ interest in beverages other than beer. As a result, draft-centric Buffalo Wild Wings may soon look beyond beer to fill its thousands of tap handles. Murphy said: “There's going to be an inflection point soon where those handles are gonna go to wine and they're gonna go to batch cocktails and I might put on a nitro cold brew line.” The full conversation can be heard on the Brewbound Podcast and watched here. |
| | Data Dive | | | At-the-brewery sales from January to May 2023 increased +2.6% compared to the same period in 2022, according to Arryved POS data parsed by Brewers Association (BA) chief economist Bart Watson in a recent blog post. However, sales increased at about half the rate of inflation, which the U.S. Bureau of Labor Statistics (BLS) tracked at 5% for the period. Watson said: “In real terms, you’re looking at a slight decline in sales.” Beer accounted for nearly three-quarters (72%) of all at-the-brewery sales in January 2021, but has been in “clear and persistent decline” since then, Watson wrote. In May 2023, beer accounted for about 65% of sales, less than two-thirds. Brewbound Insiders can read more here, including metrics of sales by time of day. |
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| From the Wire | | | As the bev-alc business expands, how does an entrepreneur determine if a distributor relationship will be beneficial? That was the question poised during the Sovos Beverage Alcohol Summit last week, hosted by the beverage alcohol compliance shipment software company. Legal professionals identified emerging wholesale agreement pitfalls particularly as the categories blur, including how suppliers can avoid costly exit fees, why understanding franchise laws could change the outcome of a contract, and where recent red flags pop up. Beverage alcohol attorneys Shauna Barnes of Barnes Beverage Group, Elke Hofmann of Elke A Hofmann Law, and Arielle Albert of Danow, McMullan & Panoff, weighed in. BevNet spirits editor Ferron Salniker breaks down four areas for consideration. |
| | People Moves | | | Liquid Death has appointed its first chief commercial officer: Stephen Ballard, former SVP of sales at Mark Anthony Brands. Ballard began in the role this week and he will oversee field sales, distribution, national accounts and international expansion. He will report directly to Liquid Death co-founder and CEO Mike Cessario. Although it has no intention of hopping into the alcohol space, Liquid Death often operates more like a beer company than a non-alc brand, Cessario told us. That makes Ballard’s 25+ years of experience in the alcohol sector valuable as the brand continues to expand with its omnichannel strategy. Having recently launched in the U.K., Liquid Death is now available in more than 100,000 retail stores. This summer, reports circulated that Liquid Death hired Goldman Sachs to explore a potential IPO in 2024. Cessario declined to comment on those rumors, but did say an IPO is still one of several possibilities for the company: “We always want to preserve optionality.” Insiders can read more here. |
| | | Montebello, California-based Angry Horse Brewing has a new brewer on its team: Danielle Lopez. Lopez has nearly nine years of experience in the beer industry, starting her career at Sanctum Brewing. Angry Horse said in a press release: “As the brewery's reputation continued to grow, Angry Horse recognized the need to bring fresh talent on board. “Enter Danielle Lopez, an accomplished brewer with a strong track record in the craft beer industry. Danielle brings a wealth of experience and a deep passion for brewing, making them the perfect fit for Angry Horse's mission." |
| | Save the Date | | | Brewbound Live takes place December 6 and 7 in Marina del Rey, California, at the Marina Del Rey Marriott Hotel (4100 Admiralty Way, Marina Del Rey, CA). Tickets are available now. The beer industry’s chief economists will come together to discuss beer’s data, challenges and opportunities during the 2023 Brewbound Live business conference in Marina del Rey, California. Bart Watson and Lester Jones, chief economists of the Brewers Association and the National Beer Wholesalers Association, respectively, will share the stage on December 6 to provide an update on beer industry trends and the trajectory heading into 2024. Watson and Jones join a speaker lineup that includes Tilray Brand’s president of the U.S. Beer Division Ty Gilmore, who will share the global cannabis firm’s interest in the craft brewing sector in the U.S. during a fireside chat. Get your tickets today. |
| | | | BevNet's East Coast office will host a meetup this Wednesday, October 4. The BevNET team and other industry leaders will converge at the Boston office for an evening of conversations and product sampling. Food, beverage, and beer professionals are invited to attend the free event. Brand leaders are also encouraged to bring samples for other attendees to try. |
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