• 📉 BA: Midwest Records Production Declines
• 🍊🍾 FX Matt Acquires RTD Mimosa Maker Ohza
• 💸 GoFundMe Started For Torch & Crown Crew
• 🚚 Tilray Rolling Out Delta-9 THC Beverages

Last year’s overall craft volume decline was felt more acutely in the Midwest than other regions, according to a recent report from Brewers Association (BA) staff economist Matt Gacioch.

Overall craft volume declined -1% in 2023, the first year output was down other than 2020, when the COVID-19 pandemic upended the craft beer industry and constricted many producers’ ability to sell in the on-premise and at-the-brewery channels.

Midwest craft brewers recorded the steepest decline at -6% year-over-year (YoY). The Northeast was the only region to increase volume (+1%). 

Volume declines were about -2% in both the South, and the West

The BA classifies members into four groups:

• Taproom breweries, which sell at least 75% of their volume on their own premises but do not offer significant food service;
• Brewpubs, which sell at least 75% of their volume on their own premises and operate restaurants;
• Microbreweries, which produce fewer than 15,000 barrels of beer annually and sell at least 75% of it off their own premises;
• And regional breweries, which produce between 15,000 and 6 million barrels of beer annually and sell at least 75% of it off their own premises.

The Midwest was the only region in which all four classes of breweries posted volume declines. Midwestern regional breweries collectively recorded the steepest YoY volume decline at -7.1%, followed by brewpubs (-4.9%), microbreweries (-4.4%) and taprooms (-3.9%). 

At +2.5% YoY, Northeastern regional breweries recorded the largest growth, which “was buoyed largely by a few large producers that had a blockbuster year in 2023,” Gacioch wrote. Northeastern taprooms also eked out growth (+0.5%), making it the only region to have more than one class of brewery with a volume increase. Northeastern microbreweries recorded the third steepest decline nationwide (-5%), and volume at brewpubs in the region declined -2.1%.

Microbreweries in the South posted the second steepest decline at -5.7% YoY. The region’s brewpubs were the only to record volume growth (+1.3%). Southern regional breweries’ volume declined -1.6%, and taprooms declined -0.4%. 

In the West, taprooms (+0.05%) and microbreweries (+0.3%) were essentially flat, while volume at brewpubs (-2.6%) and regional breweries (-3.5%) both declined. 

Brewbound Insiders can read more about state-level trends by class of brewery.

Ready-to-drink (RTD) mimosa and sangria producer Ohza has been acquired by FX Matt, the companies announced today. 

The acquisition brings a wine-based offering to FX Matt’s growing stable of RTD and beyond beer brands, which includes McKenzie’s Hard Cider, ‘Merican Mule spirits-based RTDs and Right Coast Spirits vodka- and tequila-based RTDs.

FX Matt “is set to expand distribution significantly” for Ohza, according to the press release. However, immediately post acquisition, FX Matt plans to focus on Ohza’s flagships, Classic Mimosa and Fizzy Red Sangria, the company told wholesalers. 

Ryan Ayotte founded Cambridge, Massachusetts-based Ohza in 2019. Because of expanded direct-to-consumer shipping privileges for wine, the brand has been able to sell to consumers in many states. 

In addition to its DTC channel, Ohza also has chain placements in several national off-premise retailers, including Walmart, Whole Foods, Safeway, BevMo!, Gopuff and Circle K, according to the release. 

Insiders can read more about FX Matt’s recent acquisitions and the state of the wine-based RTD segment.

More than $4,000 have been raised thus far for the former production team of New York City’s Torch & Crown Brewing who were recently laid off.  

The production crew was “abruptly let go last week without notice, severance or PTO pay out,” according to the GoFundMe fundraising page. The campaign has raised $4,135 of its $10,000 goal from 66 donations. 

Torch & Crown did not return a request for comment from Brewbound.

According to the fundraising page: “The goal of this campaign is to provide some financial relief for the folks that brewed, cellared and packaged the beer.

“The craft beer industry is sadly in a state of shrinking and consolidation. Due to this, brewing, cellaring, and packaging jobs are unfortunately few and far between.”

Follow this link if you’re interested in donating.

Torch & Crown operates a brewery and restaurant in lower Manhattan and a beer garden in Union Square. The company produced 1,979 barrels of beer, according to production data from the BA.

Tilray Brands will launch several hemp-derived Delta-9 THC beverages in “key markets across the U.S.” starting in October, the company announced today. 

The Canadian cannabis firm has formed a new business unit, Tilray Alternative Beverages, for its Delta-9 beverage portfolio, which includes mocktails, seltzers and sparkling drinks made with hemp extracts. 

Tilray said its Delta-9 product line “targets different occasions across various consumer audiences and price segments.” The initial lineup of 5 mg hemp-derived THC beverages includes:

• 420 Fizz, described as “a sleek and modern brand built off Tilray’s iconic 420 beverage platform,” which started with craft beer brand SweetWater 420 Extra Pale Ale;
• Herb & Bloom, “a super-premium mocktail” with fruity notes;
• Fizzy Jane’s, a line of seltzers in three flavors, Blackberry, Blood Orange and Vanilla;
• And Happy Flower, a line of cocktail-inspired beverages, including Margarita, Strawberry Daiquiri and Peach Bellini, launched in partnership with Emergent Beverage in Texas and Louisiana. Those products are also available online. 

Initial states receiving the beverages include Florida, Texas, Louisiana, Minnesota, North Carolina, Ohio, Georgia, Oklahoma and Tennessee, according to a Tilray spokesperson.

Insiders can read more about Tilray’s busy 2024, as well as the growing regulations and scrutiny around THC-infused products in states, including California.

Total bev-alc sales improved slightly year-over-year (YoY) in the week ending September 15, despite a -2% dollar sales decline week-over-week (WoW) in Circana-tracked off-premise channels, according to the market research firm’s weekly report. Total bev-alc dollar sales increased +1% YoY, while volume declined -0.8%. 

Beer, wine and spirits declined WoW, “but the decline followed historical trend in weeks following Labor Day,” according to Circana’s Scott Scanlon. 

Beer is “showing some strength” in recent scans, with dollar sales increasing +1.4% YoY. While volume declined -0.8%, the category still improved on 12-week trends (dollar sales -2%, volume -3.9%). 

The category is likely benefiting from football season, and trends are expected to continue “in a range for [the] next several cycles in advance of Halloween, which could provide an early read to the health of Thanksgiving and Christmas holiday[s],” Scanlon said. 

Spirits continued to lead growth, with dollar sales increasing +2.9% and volume +5.3% YoY. In the last 12 weeks, spirits dollar sales have increased +1.9% and volume +3.6%. 

Middle-tier leaders from across the country will give a pulse check on industry trends during the Brewbound Live business conference December 11 and 12 in Marina del Rey, California.

Rebecca Maisel, SVP legal & government affairs, Gulf Distributing; Lauren Doll-Sheeder, managing partner, Doll Distributing; and Jennifer Grant, GM and VP, Markstein Sales, will discuss what is and isn’t working in their markets, which products they’re interested in and how they’re diversifying their portfolios in a rapidly changing beverage business.

They’ll share their views on the future of beer and beyond beer offerings, including how Delta 9 beverages are playing in their markets; what they’re hearing from retailers; how the battle for the cold box is shaking out and how suppliers can best work with their teams.

Tickets for Brewbound Live are available now.

Others speakers announced so far include:

• Natalie Cilurzo, Russian River Brewing co-owner;
• Lester Jones, NBWA chief economist and VP of analytics;
• Jennifer Hauke, Draftline Technologies founder;
• Zech Francis, BeatBox Beverages SVP of global marketing;
• Rebecca Dye Yonushonis, New Belgium Brewing CMO;
• Lindsay Kunkle, Foresight Factory director, head of U.S. Consultancy;
• Arthur Moye, owner and CEO of Full Circle Brewing;
• Kaleigh Theriault, director of thought leadership, beverage alcohol vertical, NIQ;
• Brian “BK” Krueger, VP of business development and portfolio strategies, Bump Williams Consulting;
• Peter Skrbek, CEO, Deschutes Brewery.

Additional speakers will be announced in the coming weeks.