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DAILY BRIEFING | Today's news & insights for the beer industry. |
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| In this issue | - 📉 Craft Declines Accelerate Through Late April
- 🛒 Michelob Ultra Top-Seller in Grocery
- 🥃 FMBs, Spirits-Based RTDs Grab Shelf Space
- 💐 CGA: On-Premise Predications for Mother's Day
- 📊 Pacifico on Track to Pass Miller High Life
- 🫖 New on Shelves: High Noon Vodka Iced Tea
- 💬 Athletic's Largest Summer Spend To Date
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| Today's Top Story | | | Craft beer scans declined -3% in the four-week period ending April 21 in multi-outlet and convenience stores, tracked by market research firm Circana. Volume, measured in case sales, tumbled -4.7% in the period, the firm added. Year-to-date (YTD) off-premise sales declined -1.9%, to nearly $1.3 billion (-$24.79 million) in Circana-tracked channels. Volume declined -3.4% through the first four months of 2024. On a rolling 52-week basis, craft dollar sales declined -0.7%, while volume declined -3.4%. The overall beer category is outpacing craft YTD, with dollars -0.3% and volume -2.2%. Those trends were a little rougher over the last four weeks, with dollars declining -0.8% and volume declining -2.9%. Craft sales in the convenience channel were in the red (-1.5%, to $124.8 million), while volume dipped -3.3% during the four-week period. The channel had been a bright spot for craft, as dollar sales are in the green YTD (+0.4%, to nearly $466.9 million) and volume, while in the red (-1.2%), has trended better than total off-premise sales. Grocery sales for craft continued to drag, with dollars declining -3.4%, to $189.2 million, and volume declining -5% during the four-week period. Those trends outpaced the YTD figures, with dollars (-2.5%, to more than $703.4 million) and volume (-3.7%) both declining less sharply than the last month. Just nine of the top 30 craft brands posted positive dollar sales and volume trends in the four-week period in Circana-tracked multi-outlet and convenience stores. They include: - No. 2 New Belgium Voodoo Ranger Imperial IPA +5.5% dollars, +3.8% volume;
- No. 3 New Belgium Voodoo Ranger Juice Force Hazy Imperial IPA +29.3% dollars, +29.5% volume;
- No. 4 Sierra Nevada Hazy Little Thing IPA +6.7% dollars, +5% volume;
- No. 6 Shiner Bock +0.7% dollars, +1.7% volume;
- No. 9 Anheuser-Busch InBev-owned Kona Big Wave golden ale +18.3% dollars, +16.5% volume;
- No. 12 New Belgium-owned Bell’s Brewery Two Hearted Ale +1.4% dollars, +0.6% volume;
- No. 19 A-B-owned Goose Island Tropical Beer Hug DDH double IPA +31.1% dollars, +26.3% volume;
- No. 27 A-B-owned Wicked Weed Pernicious IPA +4.6% dollars, +2.9% volume;
- No. 30 Georgetown Bodhizafa IPA +8% dollars, +8.2% volume.
The only new brand to crack the top 30 list was New Belgium Voodoo Ranger Tropic Force tropical IPA at No. 20, with more than $3.6 million in sales in the four-week period, and more than $9.8 million YTD. Tropic Force is already the 12th best-selling beer YTD in convenience with more than $7 million in sales. In the last four weeks, it was the seventh best-selling beer in convenience. 💰 Sazerac, Lagunitas, Sierra Nevada Take Biggest Price Swings Sazerac has taken the most price YTD of any beer category vendor, increasing its average case price by +$4.93, to $159.27, across Circana-tracked multi-outlet and convenience stores. The next closest are Heineken-owned Lagunitas, which increased its average case price by +$1.78, to $43.94, and Sierra Nevada, whose average case price increased +$1.42, to $43.18. On the flip side, Athletic Brewing has taken its average case price down -$1.27, to an average case price of $43.01, the largest dollar decline among the top vendors. Insiders can dive deeper into the numbers, including the greater price swings across channels. |
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| From the Wire | | | A-B-owned Michelob Ultra held on as the top-selling beer in the grocery channel year-to-date (YTD) through April 21, according to market research firm Circana. Dollar sales for the brand declined -0.6% YTD, to more than $216.4 million. Michelob Ultra became the top seller in March, overtaking Molson Coors’ Coors Light, which is now in second with more than $212.6 million in sales (+11% YTD), followed by Miller Lite with $200.27 million in sales (+6.4%). A-B’s Bud Light tumbled to fourth, with $197.95 million in sales (-23.8% YTD). Bud Light’s negative sales trends remained in the double-digits (-15.3%) for the four-week period ending April 21. Constellation Brands’ Modelo Especial ranked fifth, with $188.4 million in sales (+16.3%). In the convenience channel, Modelo Especial is now the clear top-selling beer brand, with more than $794.6 million in sales YTD (+11.5%). The gap between Modelo Especial and No. 2 Bud Light was more than $171 million. The gap was even bigger between Modelo Especial and No. 3 Michelob Ultra, at nearly $260 million. Across multi-outlet and convenience stores, Modelo Especial is No. 1 with sales of $1.127 billion YTD. Bud Light was No. 2 with $976.4 million (-24.2%) in sales, followed by Michelob Ultra with $926.8 million (-0.2%). Bud Light’s trends over the last four weeks was -17.2% |
| | | | Suppliers should view ready-to-drink (RTD) offerings as a unique mega category, particularly as changing demographics and drinking habits, as well as inflation and the desire for convenience, shifts shopping patterns, according to a new report from market research firm NIQ. As wine, spirits and beer struggle to find growth outside of RTDs, the report highlights how a drive toward flavor and friction-free shopping is altering household spending, and what the opportunities at retail are for each subsegment of the 4th category. What’s driving the rapid growth of RTDs? One major factor is the rising cost of living. Nearly one-third (32%) of Americans are worse off financially than a year ago, with 74% saying it’s due to the high cost of living, according to NIQ’s consumer outlook survey from December 2023. Almost half (44%) of consumers say if prices continue to rise they will cut back on bev-alc purchases. But that doesn’t mean they’re hunting for deals: Only 10% will stock up on bev-alc when on promotion and only 6% say they will switch to a private label product. Friction-free retail is more important than price: Bev-alc consumers tend to favor speed of purchase more than any other shopping aspect. Nearly half (44%) of shoppers say convenient location is the top attribute chosen when shopping for bev-alc products. Along those same lines, portability is driving shoppers to RTDs with can and single-serve formats dominating dollars. Within spirits-based RTDs almost $8 out of every $10 spent is on the can format; for beer, FMB, and cider nearly $7 of every $10 spent is on the can format. Insiders can read more highlights from the report, including trends in flavor, trial and alcohol base. |
| | | | A majority of consumers plan to celebrate Mother’s Day outside of bars and restaurants, according to the latest impact report from CGA, a NIQ-powered on-premise market research firm. CGA surveyed 1,600 legal-drinking-age (LDA) consumers in four key states – Texas, New York, Florida and California – between April 23 and April 26. All respondents had visited an on-premise establishment within the past three months. One-third of consumers surveyed by CGA plan to visit the on-premise for Mother’s Day next week (May 12), a 10-point decline from the 43% who planned to venture out in CGA’s 2023 survey. The most recent percentage goes up to 40% when including consumers between 21 and 34 years old. Cocktails are expected to be the preferred bev-alc drink of choice, according to 29% of respondents planning to visit bars and restaurants, followed by table wine (24%), beer (24%), sparkling wine (16%) and tequila (16%). Consumers are also expected to visit fine dining establishments the most (37%), followed by casual dining chains (32%) and independent restaurants (29%). Despite the year-over-year decline, Mother’s Day is still expected to be the most popular holiday of the month for on-premise visitations – although Memorial Day expectations have yet to be shared. CGA shared predictions for Cinco De Mayo (Sunday, May 5) and the Kentucky Derby (Saturday, May 4), which both occurred over the weekend. Insiders can dive into all the details, as well as consumers’ expectations for the summer. |
| | Data Dive | | | Total bev-alc dollar sales declined -0.5% year-over-year (YoY) and were flat week-over-week (WoW) in the week ending April 28, according to market research firm Circana. Bev-alc volume declined -2.5% YoY. Beer dollar sales (-0.8%) and volume (-2.7%) were both in the red YoY, despite +5% growth growth from both imports and domestic super premiums. Constellation Brands’ Modelo maintained its position as the No. 1 beer brand by dollar sales (+10.3% YoY, to more than $99 million), about $4.5 million ahead of Anheuser-Busch InBev’s (A-B) Bud Light (-7.6% YoY). Still, Bud Light volume, measured by case sales, outpaced Modelo by more than 1 million cases, despite a -9.3% YoY volume decline for Bud Light and +9% increase for Modelo. Constellation’s Pacifico also continued to post dollar sales gains (+15.4%), and may pass Molson Coors’ Miller High Life this summer as the No. 18 largest beer brand by dollar sales, Circana’s Scott Scanlon wrote. The brand outpaced Heineken’s own Mexican import brand Dos Equis by about $500,000 in the latest week, to claim the No. 17 spot. Monster recorded the largest percentage increase within the top 50 for both dollar sales (+22.6%) and volume (+19.6%). The brand outpaced Sazarac’s malt-based Fireball by about $60,000 for the No. 44 spot in the week. The largest percentage decline was recorded by A-B’s Bud Light Seltzer (dollar sales -50.6%, volume -51.8%), followed by Molson Coors Simply Spiked, which is lapping significant 2023 growth, with dollar sales declined -23.1% and volume -24.2% YoY. |
| | New on Shelves | | | Gallo’s High Noon Sun Sips is the latest brand to put its hat in the hard tea ring. The company launched High Noon Vodka Iced Tea nationally this week. The brand extension is available in a variety 8-pack with four vodka-based flavors – Original, Peach, Lemon and Raspberry – with a suggested retail price of $19.99. The non-carbonated teas are still lower calorie (90 calories per 12 oz. can), and are gluten free with no added sugar. Gallo executive VP and general manager Britt West said in a press release: “Hard Tea was one of consumers' most frequent RTD category purchased in 2023, which created an opportunity for High Noon to provide a premium alternative in a way only the brand can with real vodka and real iced tea/ With this launch, we've taken a beloved classic and elevated it to new heights, delivering a beverage that embodies the spirit of summer in every sip.” Dave Portnoy, owner and president of Barstool Sports, which is also a major media partner of High Noon, promoted the new teas on Twitter yesterday with his beloved pup, Miss Peaches, who has become an internet sensation in her own right. In a video with Miss Peaches on his lap and a Peach High Noon Vodka Iced Tea in his hand, Portnoy said: “Loving, honest, trustworthy. Am I talking about Miss Peaches or High Noon’s peach iced tea? Both, of course.” |
| | Videorama | | | Athletic Brewing is going big this summer with its largest campaign and summer spend to date. The new campaign from the non-alcoholic (NA) beer maker is “Ask For Athletic,” and it’s receiving a multi-million dollar investment from the company to support “high-impact” television, out-of-home, audio and digital advertising, as well as influencer endorsements and national sampling efforts, according to a press memo. The campaign launched Monday with 15- and 30-second ad spots, which feature consumers in bars, grocery stores and restaurants asking for non-alcoholic beer recommendations, and realizing that the obvious choice is the brand that is all around them (literally): Athletic. The ads are running across ESPN, Warner Sports Media, YouTube TV, Hulu and more, and will be given special placement around live sports, including the NHL and NBA playoffs. Watch the 30-second spot here. Athletic has also created “Ask for Athletic Day,” taking place May 16. On the unofficial holiday, Athletic will pay for consumers first Athletic of the day at any bar or restaurant (up to $7), by reimbursing consumers who upload their receipt to itsathletic.com. The promotion is available in 39 states. |
| | Save the Date | | | The Brewbound Live business conference returns December 11 and 12 in Marina del Rey, California. Brewbound Live will feature beverage-alcohol industry leaders taking part in business-focused conversations, data presentations, networking and much more across two days at the Marina del Rey Marriott. Brewbound announced the first speakers for this year’s conference. They include: - Russian River co-owner Natalie Cilurzo;
- Deschutes Brewery CEO Peter Skrbek;
- National Beer Wholesalers Association chief economist and VP of analytics Lester Jones;
- Draftline Technologies founder and president Jennifer Hauke.
Additional speakers will be announced in the coming weeks. Register for Brewbound Live 2024. |
| | | | At Brewbound Live in Marina del Rey, CA on December 11 + 12, beer and beverage-alcohol brands can participate in retailer one-to-ones. Leaders from Whole Foods Market will be available for private, pre-scheduled meetings. Brands will be selected at each retailers’ discretion. As the world’s leader in natural and organic foods, with a vast network spanning over 500 stores, Whole Foods holds substantial influence in the market. These meetings present a unique opportunity for beer and beverage-alcohol brands aspiring to excel in retail channels focusing on natural and organic products. Participating brands can gain invaluable insights and strategic guidance tailored towards facilitating growth within these specialized retail environments.
You must be registered for Brewbound Live to be considered for a retailer meeting. Once you register for the event, you will receive an email with instructions for signing up. Register for Brewbound Live Winter 2024. |
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