Scan data through Q3 showed a “slightly more promising outlook for craft,” according to Bump Williams Consulting (BWC) in the firm’s quarterly craft report. 

Craft dollar sales growth in NIQ-tracked off-premise channels (total U.S. xAOC + liquor plus + convenience) is now flat year-to-date (YTD) through September 30. 

The numbers are an improvement over the “underwhelming” results in BWC’s Q2 report, when craft finished the quarter with dollar sales down -0.3% YTD through July 1. 

However, there is “still a lot of work to be done to return to large-scale growth,” BWC wrote. In the last 13 weeks, craft beer dollar sales increased +1% year-over-year (YoY), while in the last four weeks, dollar sales were down -1.8% YoY. 

📈 Craft Gaining Space in C-Stores

Once again, the convenience channel was the only channel where craft recorded an increase in dollar sales (+7.5% YTD), outperforming the overall beer category (+4.4%) in the channel. The segment is also gaining share and space in the channel.

Craft gained +0.2 share points of total beer c-store dollars YTD, now claiming 6.1% share, just below hard seltzer (6.3%), which has lost 0.9 share points YTD. The average number of items at retailers also increased for craft in c-stores (+4.5% YTD), despite overall “beer on the shelf remain[ing] stagnant.” 

Craft’s increased space in c-stores is needed as the segment continues to face hurdles in other channels, such as grocery. Craft dollar sales are down -1.6% YTD in grocery, while the segment’s share category dollar sales is down 0.2 share points, to 20.4% share. The average number of craft items is also down (-3.5% YTD) in grocery.

🏆 Top 25 Craft List Seeing ‘Lots of Volatility’

Just over half of the top 25 craft brand families by dollar sales in NIQ-tracked channels recorded dollar sales growth YTD.

However, only 10 of the top 15 also grew volume YTD, measured by case sales: 

• New Belgium (+13.4%); 
• Bell’s (+6.3%);
• Kona (+11.7%);
• Athletic (+80.6%);
• New Glarus (+1.6%);
• Victory (+0.8%);
• Wicked Weed (+1.4%);
• 10 Barrel (+2.9%);
• And Georgetown (+12.1%). 

BWC also noted: “There is also a notable gap in the average items per store among leaders, an important metric to monitor for any craft supplier angling for space at retail. How much space is up for grabs and how productive are you on a per item basis?” 

New Belgium had an average of six items per store, behind only New Glarus (6.6 items). Most brand families ranged from 2.3 to 4.7 items per store. A-B’s Golden Road (1.9 items), the 25th largest craft brand family by dollar sales, had the smallest average number of items, along with the steepest volume decline (-20.5% YTD).  

Insiders can read more, including performance numbers for individual craft brands.

New Crystal Red is a drum roasted crystallized malt that contributes gold and red hues at low usage rates, with minimal flavor impact. It can be used at moderate levels for caramelized notes and darker red/brown hues. Crystal Red works well in a variety of beer styles from lagers to dark ales. Ask for a sample today! Learn more

Aiming to appeal to consumers looking to moderate their consumption, Southern California-based Passion Tree Hard Seltzer rolled out “mini” 7.5 oz. cans in a variety 10-pack and two single-flavor 6-packs this week in Target stores across California, Florida, Texas, New York and Illinois.

Passion Tree co-founder and CMO Andy Kuklock told Brewbound he believes Passion Tree’s mini cans of hard seltzer are the first on the market, taking a page from Coca-Cola’s introduction of mini cans in 2007 and national launch in 2010. 

Co-founder and COO Jake Ryder added that the Target placement will get Passion Tree into around 760 stores across the five states. The cans will be exclusively sold in Target stores in those five states until March, when the company will look to expand to other retailers for the spring resets.

Passion Tree’s variety pack features five flavors – coconut, lychee, guava, boysenberry and dragon fruit. Each 7.5 oz. can checks in at 5.5% ABV and contains 70 calories per serving.

Guava and coconut are also available in single-flavor 6-packs. 

Passion Tree’s seltzers were previously available in 12 oz. can variety 12-packs in Kroger, Ralphs and Total Wine stores across California, Kuklock said. The brand was gaining traction in its home market, but grabbing the attention of beverage-alcohol buyers in new states was becoming more difficult due to the influx of hard seltzer and canned cocktail brands. 

Kuklock said consumer trends toward moderation and mindful drinking, as well as the emergence of non-alcoholic and lower ABV offerings, left whitespace in portion size.

Brewbound Insiders can go deeper into Passion Tree’s story.

Massachusetts-based Quality Beverage has filed a lawsuit against Constellation Brands, alleging the bev-alc giant has interfered with its sale to wine and spirits wholesaler Martignetti Companies.

Quality, the largest Anheuser-Busch InBev distributor in Massachusetts, struck a deal to be acquired in March, but Constellation said it would not approve the sale of its brands in a phone call in June and confirmed with a letter in July, according to the complaint Quality filed in Massachusetts Superior Court on October 10. The lawsuit follows a mediation session September 6-7 in which the parties “were unable to resolve their differences,” the complaint reads. 

The loss of Constellation’s portfolio – which includes popular Mexican import brands Modelo, Corona and Pacifico – would reduce Quality’s sale price by $34 million, the company alleges.

Martignetti agreed to acquire Quality’s three warehouses and its book of 400-plus brands for $191,790,248, according to the lawsuit. 

Constellation told Quality it would approve a sale to Atlas Distributing or Burke Distributing, the only two Bay State distributors in Constellation’s network that aren’t aligned with A-B. 

Quality wrote: “The two MillerCoors distributors [Burke and Atlas] do not currently distribute any malt beverage products in [Quality’s] territory and would have to expend considerable sums for additional personnel and equipment to service this new territory and establish new relationships with all of the customers in the territory.”

Brewbound Insiders can read more here about the lawsuit.

Lawson’s Finest Liquids’ beers and brewery operations are now 100% solar powered. The achievement comes a few months after the Waitsfield, Vermont-based craft brewery announced it had achieved B-Corp status.

Sean Lawson, Lawson’s Finest Liquids co-founder, said in a press release: “Brewing delicious beer is a resource-intensive art. But we always knew there were better, greener ways to do what we love. We started investing in solar in 2019 with the ultimate goal of going 100% solar, and now we’re finally here.”

Lawson’s Finest installed its first brewery roof solar array in 2019. Its system of panels now produces approx. 52,000 kWh of electricity annually. The company also installed a “solar canopy” in 2022, which helps produce enough power to offset about 60% of the brewery’s utility bill, or 2.4 million cans of beer annually, according to the release. 

Lawson’s Finest CEO Adeline Druart, who began onboarding early this summer to takeover for Sean Lawson, said in the release: “100% solar powered brews are something to celebrate. Looking ahead, we will continue to reduce our use of wastewater and energies by identifying further opportunities to become more environmentally friendly. It’s all part of a bigger picture to brew great beer and do good in the world.” 

The company is aiming to achieve 90% renewable energy by 2050.

Molson Coors-owned Atwater Brewing agreed to an offer-in-compromise with the U.S. Department of Treasury Alcohol and Tobacco Tax and Trade Bureau (TTB) last week for $67,252.23.

Molson Coors senior director of corporate affairs Rachel Dickens told Brewbound: “This issue stemmed from a standard change in excise tax rates that occurred when Molson Coors acquired Atwater in 2020 and we are glad to have resolved it with the TTB.”

The TTB listed the original dollar amount of the owed taxes at $154,055.48.  

Aaron Gore has departed Bevana Partners after nearly three years as the company’s senior director of business development.

Gore announced the news on social media Monday, writing: “As of today, I have made the incredibly difficult decision to leave my position with Bevana Partners. This was entirely my own decision, with a complex set of reasons, and no easy answers. 

“Many of you already know that I have poured an enormous amount of my heart, soul, energy and time into this company and its model over the last three years. For that, I have no regrets, and I wish well to everyone that continues to work there. … However, the time has come for me to pursue a new path.” 

Gore was a prominent face for the company, which helps connect partner brands with retail, distribution, production and e-commerce resources. 

Gore has more than a decade of experience in the beer industry, including sales positions at Finch Beer, Big Boss Brewing and Granite Falls Brewing, and founding his own brand consultancy, Fresh Pitch Beverage Consulting.

The Brewbound Live business conference returns December 6-7 in Marina del Rey. Speakers and conversations to be announced in the coming weeks. 

Registration and the discounted room block is now open. Find out more details here.

From Generation Z to the silver tsunami, keeping up with consumers and their rapidly changing drinking habits isn’t easy. 

The 2023 Brewbound Live business conference (December 6 + 7 in Marina del Rey) will try to break the mystique with a presentation by NIQ beverage alcohol vertical director of thought leadership Kaleigh Theriault and 3 Tier Beverages analytics and client success consultant Stephanie Roatis.

Theriault and Roatis will provide fresh perspectives and share strategies to help brands better understand the consumer, from changing demographics to sober curiosity to consumer powered trends on flavor, pack size and channel choices.

This session is your ticket to unlocking a level of consumer engagement as strong as Swifties watching a Kansas City Chiefs game.

Theriault and Roatis join a speaker roster that includes: Brewers Association chief economist Bart Watson, NBWA chief economist Lester Jones, Tilray president of U.S. beer division Ty Gilmore, National Black Brewers Association executive director Kevin Asato, Bell’s Brewery EVP Carrie Yunker, BuzzBallz founder Merrilee Kick, BeatBox co-founder Aimy Steadman, and Stateside Vodka CEO Clement Pappas. More speakers to be announced in the coming days.

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.