Beer production and wholesaler supply levels have started to match up over the last 12-18 months, suggesting a divergence from the “out-of-whack” inventory trends that started in 2019, according to National Beer Wholesaler Association (NBWA) chief economist Lester Jones. 

However, things could go off track again, should bev-alc production continue to outpace consumer demand. 

“If you haven’t been paying attention, the industry is not doing well,” Jones said during a webinar last week. 

Prior to the COVID-19 pandemic, the beer industry was already “running on a volume decline.” As of June 2023, the 12-month barrelage for beer in the marketplace was down to 16.2 million barrels, “one of our lowest numbers that we’ve seen in decades,” Jones said

That decline is “an atrocious number” and “has created a lot of angst in the brewing community,” Jones said.

He continued: “It’s quite disturbing to both the distributor community and the brewer and import community.”

Meanwhile, producers continue to enter the industry. The amount of brewery permits in June either grew or were flat, with the exception of Nebraska (-1), adding 342 new permits to the market, Jones said, citing numbers from the Alcohol and Tobacco Tax and Trade Bureau (TTB). 

Brewery permits are now at nearly 14,500 through June, while the total number of permitted manufacturers of alcohol is now at 36,360.

Jones said: “It is mind boggling to me that there's so many people that continue to pour into this market. … Is anyone not paying attention that craft brewing is not winning right now?”

Additionally, more than 3,100 new bev-alc products were listed in July 2023, with more than 40,000 beer products approved by the TTB in the last 12 months.

What makes those numbers so “insane” is that there is a limit to the amount of ethanol consumers can drink, with new products not adding to consumption, but rather adding to market crowding, Jones said. 

Jones’ webinar wasn’t entirely negative and he is not concerned over “big risks” of significant turn down in the bev-alc market. Insiders can read more, including what makes beer more valuable than before and the health of consumer’s wallets.

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A Virginia judge nullified Boston Beer Company’s appointment of PepsiCo’s Blue Cloud Distribution as the distributor of Hard MTN Dew in territories that the company is partnered with Blue Ridge Beverage and Reyes Beer Division subsidiary Premium Distributors of Virginia, according to a late July ruling. 

In October 2022, Blue Ridge and Premium had filed a case with the Virginia Alcoholic Beverage Control Authority alleging Boston Beer’s appointment of Blue Cloud as the distributor of Hard MTN Dew had created a dual distributorship in the state and violated the state’s Beer Franchise Act. 

In his July 26 ruling, administrative law judge W. Craig Maxey sided with Premium and Blue Ridge on Counts I and II, which alleged that Boston Beer had attempted to set up unlawful “dual distributorships for Hard MTN Dew in territories Boston Beer was already working with Blue Ridge and Premium.

At issue was the wording of Virginia Code 4.1-503: “No brewery shall enter into any agreement with more than one beer wholesaler for the purpose of establishing more than one agreement for its brands of beer in any territory.”

Boston Beer argued the wording of the code was ambiguous.

Maxey’s July ruling granted motions for summary judgment for both Premium and Blue Ridge, finding that Boston Beer’s appointments of Blue Cloud as the distributor of Hard MTN DEW violated Virginia’s Beer Act. Maxey nullified those appointments in the respective sales territories and barred Boston Beer from appointing any distributor other than Blue Ridge as the distributor of Hard MTN Dew in the territories. 

However, Maxey denied Premium’s and Blue Ridge’s motions for summary judgment on Counts III, IV and V. 

In Count III and IV, Premium and Blue Ridge had alleged that Boston Beer “unlawfully and unilaterally amended” the two wholesalers’ distribution agreements without good cause. 

In Count V, the distributors alleged Boston Beer violated the Beer Act by acting “in bad faith.”

On Count III and IV, Maxey wrote: “Boston Beer’s creation of the dual distributorship violated the Beer Act, but a dual distributorship does not violate any terms of the negotiated agreements to distribute Boston Beer products. Therefore, Boston Beer did not unilaterally amend its agreements with the Petitioners, despite the statutory violation, and Counts III and IV have not been substantiated.”

On Count V, Maxey found that the “petitioners have failed to prove Boston Beer violated the Beer Act in bad faith.”

The Brewers Association (BA) has shared the programming schedule for September’s Great American Beer Festival in Denver. The trade group shared that 40,000 attendees are expected across four sessions of the three-day event. 

The BA shared the lists of breweries and beers from more than 500 participating breweries and pop-up taproom spaces that will be at the event. Follow the links for a preview. 

Also this year, 20 breweries will be pouring beyond beer offerings, including hard seltzer, cider and hard kombucha.

Taproom areas include:

• The Alcohol-Free Oasis, where non-alcoholic beer and hop waters will be served from 20 breweries;
• A Wish You Were Here area, featuring 23 breweries that couldn’t attend this year’s festival;
• An International Pavilion, via a partnership with Elite Brands, featuring international offerings for the first time in festival history;
• A Gluten-Free Garden, presented by Holidaily Brewing, offering gluten-free and gluten-reduced beers from 11 breweries.

Other taprooms will feature medal winners, state guilds and pro-am collaborations.

Members of the National Black Brewers Association will also be on hand pouring their beers. And the BA is bringing back “Meet the Brewer,” featuring 28 breweries. 

Sponsor activations this year include: 

• A Southwest Airline lounge featuring in-flight snacks and charging stations;
• Pretzel necklace-making with Snyder’s of Hanover;
• Free chocolate samples Thursday night from Russell Stover;
• And Schilling Hard Cider pouring 16 ciders at their booth.

Tickets are still available for all sessions of GABF (September 21-23).

Three more craft breweries are joining the college sports sponsorship tailgate party. 

Oklahoma City’s Coop Ale Works announced a deal with Oklahoma Athletics to make Schooner All-American Ale the “official craft beer” of the University of Oklahoma Sooners.

The beer is a 4.7% ABV blonde ale named for the Sooner Schooner wagon that rolls across the football field following scoring drives. 

Schooner All-American Ale will be sold at Gaylord Family Oklahoma Memorial Stadium in Norman, as well in off-premise retailers in 16 oz. single-serve cans and 6- and 12-packs of 12 oz. cans beginning this week.

Louisville, Kentucky’s Gravely Brewing is partnering with the University of Louisville on Cardinale blonde ale (4.8% ABV), which will be the “official craft beer of the Louisville Cardinals.” The beer will be sold at Gravely’s taproom and in off-premise retailers, including Kroger and Liquor Barn, and on-premise restaurants. 

Cardinale will also be sold at home games, including the first football game of the season at L&N Stadium on September 7. Additionally, Gravely’s partnership will include in-venue promotions with the university’s various sports programs, including advertising and promotions on the U of L Sports Radio Network, digital ads and social media. 

Athens, Georgia-based Creature Comforts has formed a multi-year partnership to become the official craft beer of Georgia Athletics with the University of Georgia Bulldogs. Via the partnership, Creature Comforts will be able to use Georgia Athletics’ marks and logos on packaging, including Classic City Lager and Tropicália IPA, as well as in marketing materials, with the campaign tagline of “Go Dawgs, Sip ’Em.”

Creature Comforts Athens taproom will be the “Official Taproom of UGA Athletics” and host watch parties during Bulldogs sporting events.

Keeping with the football theme, a new Guinness ad campaign for its non-alcoholic Guinness 0 has launched with quarterbacks Joe Montana and Joe Burrow returning. 

The 15-second spot is now live on Guinness’ social channels. Watch the ad here. 

Burrow and Montana are also raising money for the Joe Burrow Foundation via the Guinness Gives Back Initiative. They’re selling Guinness 0 jerseys for $75 each, with all proceeds going to the Joe Burrow Foundation, which works to address food insecurity.  

The Saturday Night Live hard seltzer skit is becoming a reality. The latest CPG company to dip their waffle into beverage-alcohol is Eggo. 

Eggo is partnering with Sugarlands Distilling Co. for Eggo Brunch in a Jar Sippin’ Cream (20% ABV).

From the release: “Inspired by classic brunch flavors, this rich and delicious creamy liqueur seamlessly blends the flavors of toasted Eggo waffles, sweet maple syrup and rich butter, with a hint of smoky bacon thanks to the artistry of the experts at Sugarlands. Plus, this brunch-inspired alcoholic liqueur pairs perfectly with Eggo waffles to elevate any brunch occasion.”

At this point, every day is April Fool’s Day. 

Brewbound’s Brew Talks Denver meetup will (unofficially) kick off the Great American Beer Festival weekend with conversations with industry leaders and networking on Thursday, September 21, from noon to 3 p.m. MT at Cervantes Masterpiece.

The conversation will discuss the challenges facing draft beer and strategies for improving draft trends.

Panelists include:

• Dogfish Head co-founder Sam Calagione
• Buffalo Wild Wings director of beverage strategy & innovation Jason Murphy
• Tamarron Consulting co-founder and president Lori Scheiffler. 

Additional speakers and talks will be announced in the coming weeks. 

Tickets are available now.

The Brewbound Live business conference returns December 6-7 in Marina del Rey. Speakers and conversations to be announced in the coming weeks. 

Registration and the discounted room block is now open. Find out more details here.