| | | | | | In today’s issue | BrewDog USA’s Eric Franco on Getting Focused • TX Gov. Signs EO to Create Legal Hemp Framework • Superior Gets Rhinegeist, Constellation & Mark Anthony • CPI: Bev-Alc Away From Home Outpaced Inflation • Matt Gacioch: ‘The Margin Squeeze is Real’ • Dad Strength to Pitch Sharks |
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| Today's Top Story | | | Less has been more with BrewDog’s U.S. business over the last year and a half. On the latest episode of the Brewbound Podcast, BrewDog USA chief sales and marketing officer Eric Teodoro Franco explains how the business has “done fewer things better,” leading with a focus on its core brands, which helped the brand increase volume 26% last year, to 89,084 barrels of beer, according to data from the Brewers Association (BA). Franco shared: “We were very, very famous and very willing to be famous for throwing a lot against the wall and seeing what would stick for many, many years. We can do that in the U.K. where you have a 50-plus share and you can develop a lot of things and trial and try new things. “In this market, we did that and it didn’t work. We’ve really taken our range plan, we’ve taken our focuses down to really doing fewer and better things.” Additionally, BrewDog USA has been given the opportunity to run its operations with some autonomy from its homebase in Scotland as its U.S. leadership team has earned the trust of the global team. Franco said: “For many years, we were very much driven by what the U.K. or international bars looked like, and we would apply that narrative, if you will, or business plan to the U.S. bars. That’s gone away as well.” In the episode, Franco also discusses how the exits of founders James Watt and Martin Dickie have affected the U.S. business, how the company is approaching innovation and how the company has rethought both its distribution footprint and its taproom strategy. Before the interview, Justin, Jessica and Zoe break down the impending closure of 21st Amendment, the removal of a study about alcohol consumption and health from the dietary guidelines process and the challenges of making an alcoholic version of better-for-you soda. They also dig into TikTok trends and the latest grousing about Gen Z’s bar habits. Listen here or on your preferred podcast platform. |
| | Brewbound Headlines | | | | Texas Gov. Greg Abbott has signed an executive order mandating age restrictions on the sale of hemp-derived THC products, roughly 3 months after he vetoed a bill that would have outlawed the intoxicant entirely. The order is geared toward “protecting children” and orders the Texas Alcoholic Beverage Commission (TABC) and Department of State Health Services (DSHS) to begin a rulemaking process to develop a new framework barring the sale of hemp-derived products to minors. The intended outcome for the state is to check IDs and verify age at point of sale, along with strict fees for violators and stronger labeling and testing requirements. The order does not specify what age – 18 or 21 – to set the restriction, but Abbott has previously supported a limit of 21. Abbott said in a statement: “Texas will not wait when it comes to protecting children and families. While these products would still benefit from the kind of comprehensive regulation set by the Texas Legislature for substances like alcohol and tobacco, my executive order makes sure that kids are kept safe and parents have peace of mind now, and that consumers know the products they purchase are tested and labeled responsibly.” Jim Higdon, co-founder of Cornbread Hemp and a member of the U.S. Hemp Roundtable, told BevNET that the order appears to be “very good news” for the Texas hemp industry, following a tumultuous summer where it appeared the category could be outlawed entirely. Insiders can read more about additional proposed rulemaking for hemp products. Revisit Abbott’s veto of the bill that would have killed Texas’ hemp industry here. |
| | From the Wire | | | 2 Ohio Anheuser-Busch distributors have revised their merger agreement with the distribution rights to 3 key suppliers transitioning to a Molson Coors house. More than a year after first announcing merger plans, House of LaRose and Columbus & Delmar Distributing reached a revised agreement as the brand rights to Rhinegeist Brewery, Constellation Brands’ beer portfolio and Mark Anthony will transition from House of LaRose to Superior Beverage, Crain’s Cleveland reported last week. In a press release, Superior called the acquisition of brand rights “a significant growth milestone,” adding around 750,000 cases of product from those 3 suppliers to its business. Rhinegeist, Constellation Brands and Mark Anthony sought a move to Superior when the transaction between the A-B houses was struck. Superior distributes the brands in its existing territory and will expand in Northeast Ohio when the transaction closes in Q4. Superior added the support of K1 Management Services – the multistate distribution platform that operates across OH, TX, NC, CO, KY and MO – made the deal possible. |
| | | Data Dive | | | | If going out seemed expensive in July, dining and drinking budgets were likely stretched further in August. The CPI for alcohol away from home (+3.8% YoY) and food away from home (+3.9% YoY) far outpaced overall inflation (+2.9%) in August, according to the U.S. Bureau of Labor Statistics’ (BLS) most recent monthly report. Spirits (+4%) drove last month’s CPI increase in alcohol away from home, followed by beer (+3.2%) and wine (+3.1%). The CPI for full-service meals away from home increased 4.6%. The CPI for total bev-alc (+0.6%), beer (+0.5%) and spirits (+0.1%) away from home increased MoM, but wine away from home (-0.1%) declined. Insiders can read more about CPI changes in alcohol at home. |
| | Notable/Quotable | | – Brewers Association staff economist Matt Gacioch wrote of the gap between the increase in beer prices and breweries’ goods and labor costs. Off-premise beer prices have increased 19% between January 2020 and May 2025, Gacioch wrote in the trade group’s latest member update. “Over the same period, on-premise beer rose 22% and all goods rose 23%. Many brewery inputs (up to +68%) and labor (+33%) have increased even faster,” he continued. The average case price of beer in NIQ-tracked off-premise retailers is up $0.53, to $31.23, YTD through August 30. The average price is up $0.57, to $31.40, over the last 4-week period. Prices are up across all segments YTD, led by hard seltzer, with the average case price up $1.25, to $40.58 YTD. |
| | ICYMI | | | | Other Half Brewing (Brooklyn, NY) is used to large growth targets, posting double-digit volume growth nearly every year since its inception in 2014, according to data from the Brewers Association (BA).
In 2025, the craft brewery is aiming for more slow and controlled growth, co-founder and chief commercial officer Andrew Burman shared with Brewbound. Burman said: “We used to be able to rely on a line around the block of 500 people every Saturday – it made life a lot easier. Now it's focusing on how do we make every little thing a little bit better. There's a lot more internal focus than it once was.” Insiders can read more, including details on how Other Half is tackling beyond beer innovation and communications with consumers, such as social and e-mail marketing. Plus, what recent trend is giving Burman hope for craft’s future.
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| | Save the Date | | | Brewbound Live, our annual business conference for beverage-alcohol professionals returns to Marina del Rey, California, on December 10 and 11. Tickets are available now for the 2-day gathering of founders, entrepreneurs, c-suite executives, retailers, distributors and suppliers from across the industry. The event will include on-stage conversations with industry leaders, networking and pre-arranged one-to-one conversations with retailers and distributors. Several speakers and one-to-one participants have been announced, with more on the way. Register for Brewbound Live 2025 >>
Brewbound Live is presented by Powered by Sorse, Fast Track Packaging, Strike Visuals, John I. Haas, Can-One, and Tripleseat Software LLC. Sponsorship opportunities are still available for those seeking to elevate their presence beyond participation. |
| | Parting Shot | | | Low-ABV beer maker Dad Strength will pitch the sharks on the Shark Tank season premiere. The episode will air at 10 p.m. ET Wednesday, September 24, on ABC with next-day replay on Hulu. Ryan Kutscher and Craig Carey founded the company, built around 2.9% ABV IPAs (original, Juicy and Hazy). Kutscher pitched the brand as part of the 2024 Brewbound Pitch Slam (watch his pitch here, starting at 14:50). |
| | Now Hiring | | | | | | 👋 That's all for today's Brewbound Newsletter | |
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