Welcome to Brewbound’s Inside Look at the Beer Business for the week that was … Saturday, July 20, 2024.

Gonna open this weekend’s newsletter with an invitation to the Brewers Association to join me for a pint in NYC (you’re buying – uhh, Justin insists), as the BA just published a report that asserts that the price of a pint on-premise has tracked below the rate of inflation for the past 3 years.

It also cites an average pint price of $6.85 as of the end of 2023. So, come to NYC and let’s have a couple of craft pints to toast to that – just make sure you bring more than $20. 

Actually, make it $30 if you want to leave a tip, and still want money left over to pay for a subway ride home. Welcome to NY. 

HOP DOWN: Global hop supplier BarthHaas reports that global hop acreage was -3.3% in 2023 vs. 2022, but hop production actually increased +11.5%.

Granted, production was -18% in 2022 … so take that FWIW. The U.S. led the way in hop yield, despite a -9% loss in hop acreage. 

GET A ROOM!: The discounted room block for BREWBOUND Live is now open! Just don’t ask for the room next to the ice machine, Justin’s already called it, but the other fine rooms to call home for a few days in December at the Marina del Rey Marriott Hotel are now for the taking.

The event is returning to Marina del Rey, CA, on Dec. 11 & 12 for 2 days of insightful conversations and analysis, plus top-notch industry networking opportunities. You can register now here!

Confirmed speakers include:

• Mary Mills, consultant for 3 Tier Beverages;
• Arthur Moye, owner and CEO of FULL CIRCLE Brewing;
• Kaleigh Theriault, director of thought leadership, beverage alcohol vertical at NIQ;
• Brian “BK” Krueger, VP of business development and portfolio strategies at BWC;
• Natalie Cilurzo, RUSSIAN RIVER co-owner;
• Peter Skrbek, CEO Deschutes Brewery;
• Lester Jones, NBWA chief economist and VP of analytics 
• Jennifer Hauke, DRAFTLINE TECHNOLOGIES founder and president 
• Rebecca Maisel, GULF DISTRIBUTING SVP of legal and government affairs 

“Opportunity for growth is extremely limited. While we are fortunate to have had growth in recent years, it is infinitely harder to achieve …”

SHORT’S BREWING  founder Joe Short and CEO Scott Newman-Bale in a new BREWBOUND “A Round With …” Q&A.

The guys also share thoughts on the one thing they would change about the #beerbiz, thoughts on distro expansion, the state of craft lager, and the challenges of housing your summer employees together in an inn.

OK, I’ve used that header line ☝️ before – but when DESCHUTES joins the shandy game with Lemonade Shandy, a 5% ABV seasonal summer release in the brewery’s core western U.S. markets, I gotta dust off the classics.

BEACHWOOD BREWING

Sales Representative – Huntington Beach, CA

ALASKA PACIFIC BREWING CO

Brewer – Anchorage, AK

MIGHTY SQUIRREL BREWING CO

NIQ’s on-prem data tracking arm CGA released new data showing that the non-alc (NA) beer segment is outperforming the broader beer category at bars, restaurants and other venues YTD through mid-May, with sales +33.7%.

Overall beer category sales are -2.2% in that same time period, YoY. NA beer also increased points of distribution by almost +12%, about 3x the rate of the overall category, according to CGA.

Granted – NA’s on-prem beer share is just 0.49%, but it’s picked up +0.13 share points over the past year.

Off-prem NA beer trends this year through June 16, according to CIRCANA data:

• Dollar sales: +29%
• Share of off-prem beer sales: 1% (or 2x the on-prem share)

ACROSS THE POND:

Non- and low-alcohol beer sales boomed during the UEFA Euros tournament, according to KANTAR. Category sales were +38% in the grocery sector (or take-home as they call it) for the four weeks ending July 7. 

Total beer was up +2.2%, and 13% on days when England had a match.

The fact that many Euros matches were on weeknights was also cited as an influencing factor here on the non- and low-alc beer boom.

About 80% of shoppers cannot match celebrities to the brands they own.

A data point from a recent report by data service NUMERATOR. Better start hustling a bit more there, celebrity booze entrepreneurs!

Here are your top 10 growth brands in terms of dollar sales.

1. The Finnish Long Drink (Miles Teller)
2. Teremana (Dwayne Johnson)
3. VMC (Saul “Canelo” Alvarez)
4. Delola (Jennifer Lopez)
5. Flecha Azul Tequila (Mark Wahlberg)
6. Gin & Juice (Snoop Dogg & Dr. Dre)
7. Bumbu (Lil Wayne)
8. The Sassenach Gin (Sam Heughan)
9. Sprinter (Kylie Jenner)
10. The Sassenach Whiskey

A new Harris poll sheds some light on what moves the needle with consumers, who were most likely to cite flavor as a top priority, especially with the Boomer set.

Us younger mid 40s folks are the most concerned with alcohol content (for once, Justin and I are on brand) and of course the GenZ’ers are also on brand, being most swayed by packaging. #ShinyObjects

Millennials are still keeping it real by being the top demo to cite “locally made” as mattering to them when making a purchase. #TheArtisinalGeneration

BA CEO Bob Pease joins the pod this week to talk about his decision to leave the organization, and the state of craft beer at 2024’s midway point.

Plus, the BREWBOUND trio discuss who may come in to lead the organization, and dive into what caught their eye from the latest BA consumer drinking survey.

• Iowa’s BIG GROVE Brewing is now the official craft brewery of the UNIVERSITY OF IOWA. TBD: if Justin will ever drink a BIG GROVE beer ever again.
• Pennsylvania will now allow RTD sales (under 12.5% ABV) at the state’s beer- and wine-only outlets. 
• BEATBOX was the No. 1 RTD beverage in the c-store sector for the last 13 weeks ending June 29, according to NIQ data.
• HEINEKEN announced that its DOS EQUIS brand is now the No. 1 on-prem beer in Texas with a 10.2% share, according to NIQ data for the 52-week period ending May 18. In the off-prem, the brand is -1.9% in sales, and -1.4% in volume in 2024 through mid-June, according to CIRCANA data.

This week’s beer is going out to Jess, because she and I have to have a couple 🍻 while she’s on the Jersey Shore and figure out the animal analogy for when three breweries come together!

Yes, Houston-area breweries B-52 BREWING, FORTRESS BEERWORKS and 11 BELOW are all combining operations, and will be serving each other’s beer at all locations.

Hermit crabbing and sea otters just won’t cut it clearly (unless some sea otters are into a more “modern” arrangement … something I definitely will not be Googling).

So Jess – let me know when you’re good for a confab before you leave the best place on earth, the beer industry has put up the bat signal and we need to come through. I’ll see if I can get the BA to buy our beers – I hear pints are a bargain!

Slainté!  

-Sean McNulty