• 📈 Tax Paids Increase, First Since Feb. 2023
• 🌾 Maine Brewers Guild Executive Director
• ✍️ Franchise Reform Signed in Wyoming
• 🚛 Watkins to Acquire Cases From Intermountain
• 🫧 Constellation, A-B Return to Court

Domestic tax paid shipments increased +1.8% in January 2024 versus January 2023, marking the first year-over-year (YoY) increase since February 2023, according to the Beer Institute (BI), citing estimates from the Alcohol and Tobacco Tax and Trade Bureau (TTB). 

An estimated 11.4 million barrels were shipped in January, an increase of 204,322 barrels versus January 2023, when domestic tax paid shipments declined -3.5% YoY. 

However, “it’s too soon to say if January’s increase in shipments marks a turnaround for the beer industry,” BI chief economist Andrew Heritage wrote in the trade group’s monthly report. 

Heritage said: “Depletions in the scan data were in negative territory for January. But the increase in shipments volume at an earlier stage in the distribution channel may signal stronger sales to come in the months ahead.

“The macroeconomic environment remains moderately favorable from the consumer side.”

Total domestic beer supply (domestic plus imports) increased +4.2% YoY in January, bolstered by a +13.8% YoY increase in imports, according to data from the U.S. Department of Commerce. Mexican imports continue to grow, increasing volume +24.9% YoY, an addition of about 16.2 million barrels versus January 2023. 

Heritage also called out growth in other “large beer-importing countries” such as Ireland (+29.1% YoY, to more than 4.35 million barrels) and Canada (+8.7%, to nearly 2.45 million barrels). 

The Netherlands, the second largest beer importer, continues to record declines, with imports from the country declining -31.5% YoY, from more than 12.22 million barrels in January 2023, to nearly 8.38 million barrels in January 2024. 

Insiders can read more, including state shipment numbers.

Sarah Bryan has been elected executive director of the Maine Brewers Guild, effective Monday, March 4. 

Bryan replaces Shea Cusick after less than a year. Cusick was appointed executive director in May 2023, taking over for Sean Sullivan, who led the guild for more than a decade. 

Bryan has been director of operations and branding at Après since the Portland, Maine-based craft brewery’s inception in 2021. She previously worked as VP of sales and strategic communications at Schilling Beer in Littleton, New Hampshire, following a more than 6-year stint as operations manager at Portsmouth, New Hampshire-based Earth Eagle Brewings, according to her LinkedIn profile.

Bryan is no stranger to the guild world. She has previously served in volunteer director roles at both the New Hampshire Brewers Association and the New Hampshire Lodging and Restaurant Association. 

Beer franchise law reform in Wyoming was signed into law Thursday by Gov. Mark Gordon. The law will go into effect July 1. 

Under the reformed law, in- and out-of-state brewers making fewer than 25,000 barrels annually will be allowed to terminate their wholesaler contracts without cause. The new law allows brewers and their wholesalers to enter a 45-day period to negotiate a “good faith estimate” of a fair market value to be paid to the wholesaler. If an agreement isn’t reached, the parties will enter binding arbitration to resolve the dispute.

Two more Anheuser-Busch InBev (A-B) wholesalers are consolidating. Watkins Distributing, which operates in Montana and Idaho, is acquiring around 1.5 million cases from Intermountain Distributing Company in Montana. 

The transaction is expected to close in early May, pending supplier approvals. 

Almost one year after a jury sided with Constellation Brands, the lawsuit between two of the beer industry’s biggest players returns to the courtroom next week to reignite the debate about the definition of beer.

A-B filed the lawsuit in 2021, when it accused Constellation of violating the sublicense agreement between the companies that allows Constellation to produce and sell A-B-owned Grupo Modelo brands in the U.S., including Modelo, Corona and Pacifico. 

A-B contended that Corona Hard Seltzer was not beer and was therefore illegitimate under the sublicense. In March 2023, a jury decided the sublicense did extend to hard seltzers, which did not exist in 2012 when it was signed. 

Brewbound Podcast hosts Justin Kendall and Jess Infante are flying to Sacramento for the California Craft Brewers Association’s CA Beer Summit. Look for them on the trade show floor recording episodes of The Brewbound Podcast On-Location. 

Also look for a fresh episode of the Brewbound Podcast, including a conversation on the ins and outs of leasing with Melanie De Marco, an associate attorney with the BPE Law Group. 

The discussion is pertinent given the recent issues between brewery owners and their landlords that have led to several losing their spaces. De Marco offers insights on what to look for in a lease, when to start negotiations and tips for those considering making improvements to their spaces. Look for it midweek.

Last week was all about Constellation Brands, whose star is, well, shining bright. (Sorry, it’s just that there’s only so many times you can trot out a tired phrase and have it fit perfectly.) Brewbound editor Justin Kendall reported on company trends and 2024 plans from the Gold Network Summit, the annual gathering of Constellation Beer Division wholesalers in Las Vegas.

Constellation plans to add 100 million cases to its business in the next five years, EVP and beer division president Jim Sabia told wholesalers. The company will get there through three growth avenues: distribution, innovation and demographics, Sabia said.

Modelo Especial is certainly pulling its weight on Constellation’s march to that goal – it reached 200 million cases distributed in the latest rolling 52-week period, Constellation beer division VP of brand marketing Greg Gallagher shared. 

Constellation has been more averse to SKU proliferation than its industry peers, with company leaders often touting that its five brand families’ 150 million SKUs generate sales of $54 million per SKU, compared to A-B’s 100 brand families and 1,500 SKUs with $10 million per SKU Molson Coors’ 50 brand families with 750 SKUs with $11 million per SKU. 

As its main growth driver, the Modelo family has methodically branched out over the years, with green shoots for each line extension. More details in the link above.

Corona Extra is getting some serious star power this year, as actor Pedro Pascal of The Last of Us and The Mandalorian has been named its new lead brand ambassador. Pascal’s turn as Corona’s frontman starts in May in the lead up to Cinco de Mayo. Corona is also adding Mexican singer Peso Pluma and retired NBA star (and one-year, NCAA championship-winning Syracuse Orangeman) Carmelo Anthony to its already stacked celebrity roster.

Elsewhere in Constellation’s portfolio, the company debuted Corona Sunbrew, a flavor-forward line extension of Corona brewed with orange and lime peels; Shyft, a flavored malt beverage (FMB) that changes its taste; and The Drop, a line of canned cocktails modeled after lemon drop shots. 

In other beer industry news…

• Five thousand Teamsters across A-B’s 12 U.S. breweries ratified a new five-year contract with the company. The contract passed with 86% of the vote and includes increased wages and job protections and the end to a tiered healthcare system, among other benefits.
• Wisconsin’s Karben4 filed for Chapter 11 bankruptcy protection, citing ongoing impacts of the COVID-19 pandemic and internal disputes among ownership.
• Craft Collective and Homegrown Distribution, both craft-centric wholesalers with statewide coverage of Massachusetts and Rhode Island, told suppliers they had struck a tentative agreement to merge.
• Grown Folks and Kin Hard Seltzer aim to connect with the Black community via hard seltzers featuring familiar flavors. BevNET reporter Lukas Southard has the story.
• Seattle-based craft soda producer Jones Soda Co. is crossing over into beverage-alcohol with the launch of Spiked Jones Hard Craft Soda, BevNET spirits editor Ferron Salniker reported.
• Sapporo-Stone is hitting its stride, as Sapporo offerings will soon be rolling out of both Stone production facilities. Brewbound managing editor Jessica Infante reported on 2024 plans for both brands, which for Stone includes a hyper-focus on beer brands Buenaveza, Delicious and Stone IPA. The brand has discontinued its beyond beer offerings, Buenavida Hard Seltzer and Buenafiesta Margaritas, Keeling said. 

And to close out the week, we grabbed a round with David Deline, president of Colorado-based Prost Brewing, who dished on the brewery’s new headquarters and its dedication to upholding German brewing and service traditions. 

Catch up on the latest Brewbound Podcast featuring a conversation with 5050 Brewing’s Alicia Barr and Urban Roots’ Peter Hoey on the state of craft beer in California. 

Need more GIFs with your recaps? Check out our Insider exclusive weekend newsletter, courtesy of Sean McNulty.

We’re taking this show on the road. The Brewbound Podcast On-Location is heading to industry gatherings across the country, starting THIS WEEK (March 12-14) with the California Craft Beer Summit in Sacramento, hosted by the California Craft Brewers Association. 

Look for Brewbound Podcast hosts Jess Infante and Justin Kendall conducting interviews with industry leaders on the show floor. 

Reach out to podcast@brewbound.com if you’d like to connect at the event. Also, look for more Brewbound Podcast On-Location announcements in the near future.