A pair of beer distributor surveys found that many in the middle tier believe that the conservative led boycott of Anheuser-Busch’s Bud Light brand may be permanent. 

Financial services firm Jefferies’ survey found that a majority (65%) of distributors surveyed expect the Bud Light downturn to last at least another six months, while 32% believe it could be permanent. 

A separate distributor survey – the quarterly “Bev Bytes” by Goldman Sachs analyst Bonnie Herzog – found that most respondents are “pessimistic about the potential for a full recovery” of Bud Light’s “brand equity and market share.” Those who do see the potential for a turnaround say it could take three to five years.

Right wing influencers and political figureheads have pushed the boycott of A-B’s Bud Light brand, the top-selling beer in the U.S., following a one-off influencer promotion with a transgender woman in early April.

Around 64% of distributors indicated that A-B volumes were “down significantly” over the Memorial Day holiday period, per Herzog’s survey of 57 distributors, who combined service around 200,000 retail outlets and account for 35% of the total U.S. outlets that sell alcoholic beverages. Those trends have been in the low-single digits in the previous two years, which “shows how impactful the Bud Light boycott has been,” Herzog wrote.

Wholesaler inventory levels of A-B products are at a “record high … as sales falter,” Herzog found. Around 62% of distributors said their A-B inventories are “up significantly.”

Wholesalers said A-B’s rebate strategy – offering $15 cases of Bud Light and other Bud brands – has “had limited impact on stemming further declines.” One distributor said Bud Light is down -27% off-premise and more than -40% in the on-premise, per Herzog.

None of the distributors surveyed by Goldman believe that A-B can make their businesses “whole given the lost equity value of their businesses.”

Bernstein: Bud Light to ‘Take a Permanent -15% Haircut’

Bernstein analyst Trevor Sterling called the Bud Light sell-off “much overdone,” but he expects Bud Light volumes to “take a permanent -15% haircut with an associated drag on operating leverage.” 

Who is Leaving Bud Light Behind?

In a report last week, RBC Capital Markets analyst Nik Modi examined consumer demographic data from market research firm Numerator to nail down who is cutting Bud Light out. Here’s what Modi found:

Since early April 2023, 39% of Bud Light’s households were considered lapsed, while 33% were considered new and 28% repeat. Modi noted that Bud Light’s lapsed consumers for 2022 were 30.5%, by comparison.

“Compared to the rest of the beer drinking population, these recent lapsed Bud Light consumers over-index to lower income households (under $40k), tend to be 55 or older, are primarily white/caucasian, and have lower rates of higher education (college/graduate degrees),” Modi wrote, citing Numerator data.

Insiders can read the full story here.

Sir Ivan Menezes, who has guided bev-alc giant Diageo as CEO for nearly a decade, has died “following a brief illness,” the company announced today.

Menezes, aged 63, was scheduled to step down and retire on June 30, with the company announcing its succession plan in March. However, those plans were accelerated this week after Menezes was hospitalized, with Diageo appointing planned successor and chief operating officer Debra Crew interim CEO on June 5. 

Menezes has worked with Diageo since its founding in 1997, spending more than 25 years at the company. He held several leadership positions during that time, including chief operating officer; president, Diageo North America; chairman, Diageo Asia Pacific; and chairman, Diageo Latin America and Caribbean. He was appointed executive director of Diageo’s board in July 2012, one year before taking over as CEO. 

“This is an incredibly sad day,” Diageo chairman Javier Ferrán said in a press release. “Ivan was undoubtedly one of the finest leaders of his generation.”

Ferrán’s full statement can be read here.

Waitsfield, Vermont-based Lawson’s Finest Liquids is now a Certified B Corporation, AKA B-Corp. 

Lawson’s is now one of 18 breweries in the U.S. to achieve B-Corp status from the non-profit B Lab, according to a press release. Certification requires companies to excel in five core social and environmental areas: governance, workers, community, customers and environment. 

“While we have always been committed to making delicious, fresh beer from the best possible ingredients, the beer is just the beginning,” Lawson’s co-owner Karen Lawson said in the release. “We’re very aware that our business decisions make an impact on future generations. We are part of a larger ecosystem, and it’s our responsibility to take good care of our employees, promote community vitality, monitor sustainability and measure our impact on the planet.”

Read more on Lawson’s social and environmental efforts here.

Sierra Nevada founder Ken Grossman is stepping back into the CEO role on an interim basis, following the announcement of Jeff White’s impending retirement. 

The Chico, California-headquartered, family-owned craft brewery is in the process of searching for its third ever CEO. 

White, who is retiring after 38 years in the beer industry, will remain with Sierra Nevada over the next couple of months to help shepherd in the launch of the company’s CanDo Innovation Center in Chico.

Brewbound Insiders can catch up on the news here.

Speaking of Sierra Nevada, the company is trying out a pair of new Little Thing beers: a limited release Tropical Little Thing Hazy IPA (7% ABV) and variety 12-pack addition Crisp Little Thing Lager (4.7% ABV). 

Sierra Nevada is also bringing back several fan favorites for summer, starting with summer seasonal lager Summerfest (5% ABV), in 6- and 12-pack cans. The company is also rolling out a Fan Favorites bottle variety 12-pack featuring Hop Hunter IPA, Ruthless Rye IPA, Nooner Pilsner and Flipside Red IPA.

Molson Coors has once again extended its Topo Chico Hard Seltzer brand, launching today Topo Chico Aguas Frescas Hard Seltzer, a lineup of fruit-forward flavors inspired by the “classic staple of street markets, taquerias and restaurants” of the same name. 

The limited time offering, made possible through a licensing agreement with Coca-Cola, is available in four flavors: Passionfruit Mango, Citrus Tamarind, Ripe Watermelon and Hibiscus Lime. Each flavor is 4% ABV and 100 calories, packaged in a 12 oz. slim can variety 12-pack, available in 32 states. 

More details here. 

Brewbound’s second Brew Talks meetup of 2023 will return to Boston on July 12.  

The program will include Dogfish Head co-founder Sam Calagione, Castle Island co-founder Adam Romanow, Wormtown Brewery president and general manager Kimberly Golinski, and Bump Williams Consulting VP of analytics and insights Dave Williams. Additional speakers and conversation topics to be announced in the coming weeks.

Some of the proceeds will go to the Massachusetts Brewers Guild. Get your tickets today.