Welcome to Brewbound’s Inside Look at the Beer Business for the week that was … Saturday, October 21, 2023.

I’m sure we’ve all bogarted a beer in our day, but how many of us have actually made up for it? Gotta love this gesture from BUFFALO BILLS WR Stefon Diggs, to replace the beers he, uh, borrowed from some BILLS fans recently to celebrate a touchdown.

AND: Despite Stefon’s thinking that the two High Life tallboys cost about $18 at HIGHMARK STADIUM (actual price: $33), they actually cost him $13,728 when you factor in the fine the NFL levied against against him for his “Stone Cold” Steve Austin-esque celebration. WWE > NFL.

Craft Beer Off-Prem Sales Now Flat for 2023 

That’s through the end of Q3, according to NIQ data cited by BWC. Craft now holds an 11.6% 💰share of all beer sales (-0.2% YTD). 

Craft is winning in convenience, +7.5%, far above total beer’s gains of +4.4%, and adding 0.2 share points to hit 6.1% in the c-store channel … just below hard seltzer at 6.3% (-0.9 share points YTD).

Total beer sales are +2% YTD ending Sept. 30. 

• Imports are now a 23.5% share
• Domestic Premiums: 24.8% 👀

Zoe has your breakdowns by major craft brands and more numbers in the link.

BOSTON BEER sues DOWNEAST CIDER over Trade Secrets

Essentially, DOWNEAST’S SVP of marketing used to work at BOSTON BEER, and the home of ANGRY ORCHARD is alleging that the former employee and DOWNEAST have misappropriated trade secrets and received unjust enrichment, among other counts.

The employee left BOSTON BEER in April and joined DOWNEAST in May, according to the lawsuit. BOSTON BEER is also claiming that he violated a non-compete agreement signed in 2015 when he started at the company. 

Jess has you covered here on the allegation details, including the downloading of company files. Insert a GIF from your favorite corporate espionage movie here.

According to CIRCANA off-prem data: In the last 52 weeks ending Oct 8, every beer segment recorded positive YoY dollar sales gains, except for:

• Craft (-1%)
• Beer-centric hard seltzer (-14%) 
• “Assorted” (-20.2%)

DIAGEO is expanding further into the RTD market (I think there’s some room back over by the JACK & COKE punch bowl 🤷), with The Cocktail Collection (avg ABV: 20%).

Meet:

• KETEL ONE Vodka Espresso Martini
• KETEL ONE Vodka Cosmopolitan
• TANQUERAY Gin Negroni

BULLEIT RTDs are already in the marketplace. 

ALSO OF NOTE:

RTD market share in c-stores is +14.6% over last year, according to a new NIQ report. More info on the c-store consumer and their purchasing habits in the link.

“This is a category in the first pitch of the first inning. It’s 1% of beer. It’s likely going to 20-plus% of beer.”

– ATHLETIC BREWING co-founder and CEO Bill Shufelt on a new podcast episode of BEVNET’s Taste Radio, with ATHLETIC co-founder John Walker.

FAT HEAD’S BREWING

Brand Marketing Manager - Middleburg Heights, OH

REVOLUTION BREWING

Area Sales Rep, Chicago (northside) - Chicago, IL

CRAFT COLLECTIVE

Massachusetts Sales Rep - Waltham, MA

OH’s RHINEGEIST had a busy week! Newly promoted:

• Adam Bankovich is the new CEO (up from interim CEO)
• Cole Hackbarth is now VP of brewery operations
• Marc Venegoni is now VP of sales
• Tracey Ireland is now VP of marketing

🧐TO NOTE: Adam will give the keynote speech at BREWBOUND LIVE in December, and a Q&A with Adam and RHINEGEIST co-founder Bryant Goulding will follow.

A-B Announced a Second Round of Wholesaler Assistance efforts 

This follows the first round of assistance in June, after the massive BUD LIGHT issues arose in the spring.

This new round includes:

• Financial support for equity wholesalers in the form of sales incentive payments for beer sold through Q1 2024, pending legal and regulatory requirements
• Freight/fuel surcharge reimbursements through Q1 2024
• Market share recovery incentives starting in Q2 2024 through the end of the year.

Even with the return of the NFL season, accompanied by new advertising creative & media buys … BL volume was still -29% YoY for the week of October 7, showing basically no signs of improvement. 

But, hey – only 5 more months until the April comps kick in! Look people, that’s all I got here 🤷.

Zoe and Justin give a 1st person field report on the NBWA Annual Convention in Las Vegas … complete with Zoe’s blackjack debts ♣️.

The BREWBOUND trio also chat kegged espresso martinis and alcoholic beverages based on products that come in juice boxes.

🎧 Listen here!

• A-B’s largest MASSACHUSETTS distributor, QUALITY BEVERAGE is suing CONSTELLATION for blocking its $191 million sale to wine and spirits wholesaler, MARTIGNETTI COMPANIES. 
• The BUG unionization effort at GA’s CREATURE COMFORTS failed earlier this month: 21 for, 32 against. BUG is challenging the election’s results, according to the brewery.
• Cans now make up 70% of all off-prem beer sales, +15% in 3 years, according to NIQ data cited by BWC. 
• 12 oz. can 12-packs now beat 12 oz. bottle 6-packs as the No. 2 craft package by dollar sales.
• BOSTON BEER is closing its CONEY ISLAND Brewing taproom location in, well, see name. The brand will live on in off- and on-prem retail sales.

December’s BREWBOUND LIVE in Marina del Rey, CA already has the executive at the center of the year’s biggest deal in craft – TILRAY BRANDS prez of U.S. Beer Ty Gilmore … 

PLUS: Well, let’s just go full list on the lineup at this point, which keeps growing!  

• NBWA chief economist Lester Jones 
• BA chief economist Bart Watson
• BELL’S Brewery EVP Carrie Yunker
• NATIONAL BLACK BREWERS ASSOC exec director Kevin Asato
• BuzzBallz founder Merrilee Kick
• RHINEGEIST Brewing CEO Adam Bankovich 
• BeatBox Beverages co-founder Aimy Steadman 
• ROGUE ALES president Steven Garrett
• STATESIDE Vodka CEO Clement Pappas
• EXTRA MILE Convenience Stores category manager Michelle Abdollah, 
• CROWNS & HOPS founders Beny Ashburn and Teo Hunter
• NIQ beverage alcohol vertical director of thought leadership Kaleigh Theriault 
• 3 TIER BEVERAGES analytics and client success consultant Stephanie Roatis.

AND, YES: Still more names to come – work those phones, Justin!

SO: Um, yeah, get your tickets now – right here for Dec. 6 & 7 in SoCal! 

BREWBOUND Insiders save $200!  Although Justin said I have to pay full price, saying I was “too inside.” Although I’m not sure why I also have to stock his hotel fridge 🤔.

This week’s beer is going out to fellow Jersey Shore guy (and correct speller of the name Sean), Sean Lawson. 

OK, yes, he’s now a longtime VT guy (but as Jess knows – you can never shake off the Jersey no matter how deep you go in New England), but his LAWSON’S FINEST LIQUIDS brewery in Waitsfield, VT is now 100% solar powered 👏 – even during the snowy season which goes until … I wanna say May? 🥶

Way to keep the lights on, the beer brewing, and do your part to keep the earth from getting hotter. Enjoy the sun-powered winter wonderland y'all, which I’m guessing starts in about 2 days.

Slainté! Til next Saturday, you can reach me anytime here on LinkedIn.

-Sean McNulty