| | | | | | In today’s issue | 🗝️ 5 Key Themes to Understanding Gen Z • 🥫 American Canning Halts TX Can Production • 🪧 Bigfoot Beverages Teamsters Strike • 📫 USPS Shipping Equity Act Introduced • 🧮 NIQ: Bev-Alc Declines Ease Labor Day Weekend • 🗣️ NY Times: ‘Links Between Alcohol and Cancer’ • 🎙️ Living in an 8% ABV World |
| Today's Top Story | | | Remember black out rage gallons a.k.a. BORGs? The gallon jugs college students were bringing to parties last year with a mix of water, electrolytes and handwritten punny names written on the front?
The trend had two main reactions. The first, broadcast across many mainstream news headlines, was concern around safety and binge drinking. The second was a mix of humor at the creativity and absurdity of youth, and a slight sense of doom over the future of bev-alc consumption due to the youngest legal drinking age (LDA) consumers feeling satisfied with watered down fruity liquor. However, BORGs speak to many key aspects of Gen Z’s culture and priorities that bev-alc and other CPG brands can learn from, according to Tomato Baby Insights founder Angie Meltsner, who presented Wednesday at Stout Collective’s BOPP Beer Design Conference in Chicago. BORGs are an example of Gen Z craving control and safety (the resealable caps and visual representation of how much they’ve drunk throughout the day), wellness and self-care (the electrolytes to help ward off a hangover the next day) and the ability to express themselves (the punny names and personalized drink mixes). BORGs are also a counterexample to the claims that Gen Z doesn’t consume bev-alc. More than half (53%) of 21- to 24-year-olds consume alcohol at least monthly, according to Meltsner. And the amount that young people drink has stayed relatively consistent for the past five years, when millennials were still a part of the youngest LDA consumer group, she added. The key to connecting with Gen Z LDA consumers and future consumers is to understand greater themes that drive their decision-making and spending. Meltsner said: “It's very important to understand the culture of the people that you are trying to connect with, because that's what's influencing their behavior. That’s what’s influencing their decisions. “What's most important is to really understand the cultural context that they're living in, in your category, outside your category, [and] in the world at large.” Meltsner highlighted five of those themes: Healthy Hedonism, Embracing the Absurd, Ode to Joy, Halcyon Days/Nostalgia and Third Places. Insiders can dig into the five Gen Z-behavior driving themes and how brands can capitalize on each one. |
| | From the Wire | | | In a move set to impact “thousands of customers,” American Canning halted operations Thursday at its Aluminum Toyo Ultimate Can (aTULC) manufacturing plant in Texas, abruptly ending an innovative first-in-the-nation packaging partnership that had attracted significant interest from ready-to-drink cocktail and energy drink makers.
In a letter to customers seen by Brewbound’s sibling publication BevNET, American Canning co-founder and CEO David Racino wrote that Japanese manufacturer Toyo Seikan Group Holdings “has unexpectedly decided to no longer support the can plant project and terminated all agreements, forcing an immediate closure of the aTULC facility.” Racino continued: “The abrupt nature of their decision has placed an undue burden on our ability to continue operations across all other verticals. Due to interdependence between business units, we are unable to sustain our supply distribution business, including web sales moving forward. “In the immediate, we will continue to service our e-commerce customers via web orders as long as existing inventory allows.” The announcement comes just over a week after Toyo Seikan publicly recognized the potential for “uncollectable or delinquent accounts receivable” from an unnamed customer to which it was selling aluminum can making equipment under a lease purchase agreement. aTULC is a proprietary can developed by Toyo Seikan that uses a pre-coated aluminum sheet and liner that offers better shelf-life and resistance to corrosion over liners that are sprayed on as the cans are manufactured, according to promotional materials. Those properties have made it ideal for next-gen beverage alcohol brands such as canned wine and RTD cocktails, as well as THC-infused and functional drinks. BevNET reached out to Racino and to Toyo Seikan representatives for comment. In February 2023, American Canning announced that it would open the first aTULC plant in the United States, starting with 12 oz. cans and later adding 16 oz. At the time, Racino, who started America Canning in 2012 as a manufacturer of canning machines, hailed aTULC’s arrival for allowing “craft producers to completely reimagine the types of products that can be packaged in cans.” Insiders can go deeper into the story. |
| | | | Members of Teamsters Local 324 and 206 are on strike at four Bigfoot Beverages facilities throughout Oregon, the union announced.
The union and the beer and soft drink distributor are at odds over workers’ pension plans, which Bigfoot has proposed replacing with a 401(K) plan, supported by 9% matching employer contribution. Local 206 secretary-treasurer Geoff Stewart said in a press release: "We're not going to be appeased by the crumbs Bigfoot tosses our way, They can't get us to flush our pensions down the drain for a one-time cash offer of $2,500. Bigfoot's proposal is a monstrous insult to our intelligence." The strike began after midnight on Thursday at Bigfoot facilities in Coos Bay, Eugene, Roseburg and Newport. Bigfoot Beverage distributes craft beer (Breakside, Buoy, Ninkasi, Pelican, North Coast, Reuben’s Brews, among others), flavored malt beverages (Monster Beverage’s Beast Unleashed, Boston Beer’s Hard MTN Dew, Phusion Projects’ Four Loko), cider (Ace, Avid, Bauman’s, Blake’s), as well as wine and non-alcoholic adult beverages. |
| | | | A bill aimed at allowing the U.S. Postal Service (USPS) to ship alcoholic beverages was reintroduced this week at the urging of representatives of small brewers and craft distillers for more opportunities to get their products to consumers.
The USPS Shipping Equity Act was introduced by Oregon Sen. Jeff Merkley and sponsored by New York Sen. Kirsten Gillibrand, Washington Sen. Patty Murray and Vermont Sen. Peter Welch. The effort to end a Prohibition-era ban preventing the USPS from shipping alcohol began in 2021, but has been opposed by groups such as the National Beer Wholesalers Association (NBWA) and Wine and Spirits Wholesalers of America (WSWA). A bill introduced in the House in May 2023 stalled out. The legislation would allow the USPS to ship alcoholic beverages directly from licensed producers and retailers to consumers 21-years-old and older in accordance with state and local shipping regulations. The bill has received several endorsements including support from the American Postal Workers Union, the National Association of Letter Carriers AFL-CIO, the Brewers Association (BA) and the American Craft Spirits Association. Bob Pease, President and CEO of the Brewers Association said in a statement: “Small and independent breweries produce hundreds of styles of beer, but unfortunately due to issues like distributor consolidation and SKU reductions, there are fewer opportunities to get their products to consumers. “Direct-to-consumer shipping is a critical way for these small businesses to make their products accessible to the legal drinking age adults who wish to purchase them… the USPS Shipping Equity Act is commonsense legislation that provides those breweries with another way to access the market.” |
| | Data Dive | | | The latest data set from NIQ showed a modest improvement in sales declines for total bev-alc in the two-week period before September 7, which included a tepid Labor Day weekend, according to analysis from Goldman Sachs Equity Research.
NIQ uses U.S. x AOC (extended All Outlet Combined) including convenience stores to summarize multi-channel markets and aggregate all national cross-outlet market data, and includes certain retailers (such as Whole Foods Market) that other providers do not. Here’s the overview: - Value declines improved slightly at -1.9% for the two-week period, compared to the -2.4% observed in the four-week period and -1.6% in the 12-weeks.
- Volume declines also eased, down -4.3% versus -4.7% in the four-weeks and -3.7% in the 12-weeks up against stronger pricing growth, up +2.5% in the two-weeks compared to +2.4% and +2.2% in the four- and 12-week periods, respectively.
- Performance improved for beer, spirits, hard seltzer and cider, while deteriorating slightly for wine.
Sales declines in the beer category softened to -2% in the two-week period, an improvement from -2.7% in the previous four-weeks, versus -0.8.% in the 52-weeks. Volume declines in beer also lessened slightly to -4.2% from -4.6% in the four-weeks, against relatively steady pricing growth hovering around +2.1% in the last few periods. Modelo's sales growth accelerated, up by +3.8% the two-week period, compared to +2.7% in the four-week period and +11.5% in the 52-week period. The brand showed stronger volumes at +2.9% in the two-weeks, versus +1.9% in the four-weeks and 10.5% in the 52-weeks, against a fairly steady pricing increase of +0.9%. Sales pressures for A-B’s Bud Light continue, with a mild decrease of -7.6% in the two-weeks, compared to -7.5% in the four-week period and -15.2% in the 52-week period. Molson Coors’ Coors Light and Miller Lite continued to experience declines in sales, with Coors Light down -8.5% and Miller Lite down -7% in the two-week period, compared to -5.7% and -2.1% in the 52-weeks. Market share for both brands contracted (7% and 5.9%, respectively). Insiders can dive into scans for FMBs, hard seltzers and RTD cocktails.
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| | Notable/Quotable | | | The New York Times shared the results of a report by the American Association for Cancer Research (AACR) that found that adults under age 50 are experiencing increased rates of breast cancer and colorectal cancer over recent decades.
Although cancer death rates have declined, the overall incidence of several cancers are on the rise, “with an especially alarming increase among younger adults in cancers of the gastrointestinal system,” the Times reported. The Times also noted that 40% of all cancer cases are linked with “modifiable risk factors.” The report advocates for reduced alcohol consumption, avoidance of tobacco products, minimized exposure to ultraviolet radiation and pollution, and adoption of a healthy diet, exercise, and maintaining a healthy weight. The Times story comes as potential changes to the Dietary Guidelines for Americans (DGA) are looming. The U.S. Departments of Agriculture and Health and Human Services are preparing to release the recommended guidelines in 2025. Follow these links for the Times’ coverage, and the full AACR report. Beer Institute CEO Brian Crawford issued the following response to the story: “The Beer Institute believes Americans deserve guidance based on a preponderance of scientific evidence informed by comprehensive, rigorous, and objective studies. “However, advocates with a clear ideological bias are pushing a misleading narrative. Thankfully, an esteemed panel of researchers at the National Academies of Science, Engineering and Medicine is studying the relationship between alcohol consumption and various diseases that will help drive understanding around risks from moderate or low levels of alcohol consumption.” Insiders can review prior Brewbound coverage of the DGA review process and its potential impact on beverage-alcohol. |
| | ICYMI | | | Several new high ABV offerings are on their way to convenience store doors in 2025. The Brewbound team discusses the latest slate of offerings from Molson Coors that trades on three of their established brands: Blue Moon Extra, Topo Chico Max and Simply Spiked Bold. The team ponders the timeliness of new singles hitting convenience and the prospects for these. Jess, Zoe and Justin also discuss the latest news, including JuneShine’s non-alcoholic kombucha play, job openings at the Brewers Association and California Craft Brewers Association and why the numbers say your brewery will likely survive. Plus, deep thoughts on greetings and F1. Listen here or on your preferred podcast platform. |
| | Save the Date | | | The No. 1 tap handle in the nation is “open,” meaning there are more empty draft lines than those with a brand of beer flowing through them. Beverage-alcohol producers should view this as an opportunity to make a splash in bars and restaurants across the country. The Brewbound Live business conference will explore the opportunities in the on-premise channel with National Beer Wholesalers Association VP of analytics and chief economist Lester Jones and Draftline founder and president Jennifer Hauke. The duo will discuss the opportunities in the challenged – and some say neglected – channel while presenting a reality check during a December 11 presentation as part of the two-day conference at the Marina del Rey Marriott in California. Leaders from all three tiers will gather for business-focused conversations on driving the bev-alc industry forward, data presentations, networking and brand building. The speaker roster includes: - Natalie Cilurzo, Russian River Brewing co-owner;
- Rebecca Maisel, Gulf Distributing SVP legal and government affairs;
- Lauren Doll-Sheeder, Doll Distributing managing partner;
- Jennifer Grant, Markstein Sales general manager and VP;
- 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. Interested in speaking? Follow this link to see our speaker guidelines. In addition to the mainstage programming and networking parties, Brewbound Live will feature opportunities for one-to-one conversations between brewers and bev-alc brands and retail buyers from chains such as Whole Foods Market and ExtraMile Convenience Stores. Registered attendees will be considered for meetings with buyers, as space is limited. Find out more details here. Register for Brewbound Live 2024 >> Brewbound Live is sponsored by John I. Haas, NIQ, Crafted ERP, Strike Visuals, Fast Track Packaging and Abstrax Hops. Sponsorship opportunities are still available for those seeking to elevate their presence beyond participation. Supplier and service companies interested in sponsoring the Pitch Slam and/or Brewbound Live should contact Brewbound’s ad sales team about opportunities. |
| | | | Brewbound’s annual Best Of Awards are accepting nominations for 2024! The awards celebrate beverage-alcohol companies for their achievements and impact throughout the last year and serve as an appreciation of notable industry members, trend setters, breakout brands, change agents and up-and-coming entrepreneurs. The awards show will take place in Marina del Rey, CA on the first day of Brewbound Live 2024, taking place December 11 + 12, 2024. 📝 Submit Your Nominations Brewbound’s 2024 Best Of Awards are currently open for nominations. Submitting a nomination guarantees that the person, company, or product submitted will be considered for the category chosen by the nominator. You may submit as many nominations as you’d like, either for your own company/product or a company/product you find deserving. You may also elect as many categories as you’d like for each nomination. Agencies submitting their clients must submit one nomination per client. All nominations will be published on Brewbound.com. The deadline to submit nominations is Friday, November 1. 🧐 Nomination Criteria Below are the categories open for Brewbound Best Of 2024 nominations: - Craft Brewery of the Year
- Large Brewery of the Year
- Beyond Beer Company of the Year
- Person of the Year
- Rising Stars
- Best New Products
Submit your nominations >> |
| | | | The Brewbound team is hosting a free beer industry happy hour on Sunday, September 29 from 4 to 6 p.m. PT at The Church by The Lost Abbey in San Diego! Kick off NBWA with us in downtown San Diego with industry networking, Lost Abbey beers and light appetizers. Industry professionals within the beer and beyond industries are invited to attend the free happy hour. Prior registration is required. Here are the details: Date: Sunday, September 29, 2024 Time: 4–6 p.m. PT Location: The Church by The Lost Abbey (1313 J St, San Diego, CA 92101) Learn More + Register for Free >> Headed to NBWA that week? The Brewbound Podcast hosts, Jess, Justin, and Zoe, will be recording podcast interviews on the show floor. Visit our Brewbound Podcast studio located in the Product Showcase area for a unique opportunity to connect with our Brewbound team in-person as they discuss the latest trends, industry insights, and interview key players in the world of brewing. Want to schedule some time to chat during the show? Email us at podcast@brewbound.com. |
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