Plus, Seattle's Two Beers to cease operations. ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BrewboundOctober 12, 2023
DAILY BRIEFING
Today's news & insights for the beer industry.

Today's Top Story

🏪 Goldman Sachs Report from NACS: Monster ‘All-In on Alcohol,’ Bud Light ‘Stabilizing'

🏪 Goldman Sachs Report from NACS: Monster ‘All-In on Alcohol,’ Bud Light ‘Stabilizing'

Monster Energy is “all-in on alcohol” and “thinks it could be big for them by 2025,” according to Goldman Sachs equity analyst Bonnie Herzog’s report from the National Association of Convenience Stores (NACS) trade show.

The energy drink maker, which entered beverage-alcohol with the acquisition of CANarchy in January 2022, displayed its forthcoming hard tea, Nasty Beast Hardcore Tea, during the show, Herzog wrote. 

Nasty Beast is slated to launch in February 2024 with four flavors (original, half and half, “razel berry” and green tea) in 24 oz. single-serve cans and 12 oz. sleek can variety 12-packs. 

Monster aims to bring Nasty Beast nationwide in the first half of 2024, Herzog wrote. 

Constellation Brands’ c-store strategy for 2024 includes innovations in packaging and flavors:

  • The Modelo Chelada family is adding Chelada Fresa Picante and Chelada Negra Con Chile. Modelo Spiked Agua Frescas are getting a wider seasonal launch; 
  • For its sophomore year, Modelo Oro, the company’s Michelob Ultra challenger, is expanding to 18- and 24-packs; 
  • Pacifico will roll out 16 oz. can 4-packs; 
  • Fresca Mixed spirits-based ready-to-drink (RTD) canned cocktails will debut a second variety pack with five new vodka-based flavors.

Anheuser-Busch InBev (A-B) executives said Bud Light’s market share “is now stabilized” after more than six months of conservative-led boycotts and they are “focusing on the opportunity to build back brand equity quickly,” Herzog wrote.

A-B’s innovation slate features fourth category offerings, including Cantaritos Hard Soda, the 5% ABV FMB that A-B produces under a licensing agreement with Jarritos maker Novamex. A-B told Herzog sales are “already up +20%” in Circana-tracked stores. 

Other priorities include Cutwater Spirits, the No. 1 “full flavored” spirits-based RTD,” and NÜTRL Vodka Seltzer, a distant No. 2 compared to E. & J. Gallo’s High Noon Sun Sips. NÜTRL accounts for 11% of the segment, A-B told Herzog.

Boston Beer expects Twisted Tea “to get a little more assortment in the fall shelf resets,” Herzog wrote. To get there, the company is leaning into multi-packs, including its Twisted Tea Light 12-pack and Game Day 12-pack. Company sales leaders told Herzog Twisted Tea’s 12-packs are “the No. 2 in growth in all of beer.”

Molson Coors has increased its c-store shelf and door space by 10% in the wake of the Bud Light boycotts, and company leadership “believes that the shift in market share from the Bud Light controversy is more structural and should stick,” Herzog wrote. 

Trade show attendees’ interest was concentrated on Molson Coors’ beyond beer products, including Topo Chico Hard Seltzer, now the No. 3 hard seltzer, and Simply Spiked, both of which Molson Coors produces under a licensing agreement with Coca-Cola

Brewbound Insiders can click here for more about the large brewers’ convenience channel plans here.

 

From the Wire

🍻 Seattle’s Two Beers to Cease Operations

🍻 Seattle’s Two Beers to Cease Operations

Seattle-based Two Beers Brewing Co. will begin winding down operations after 16 years and close in the coming months, the company announced Wednesday evening. 

Two Beers general manager Felix Madrid said in the announcement: “Unfortunately, it’s not an uncommon narrative to share news of a craft brewery ceasing operations. Between increasing materials costs, increasing competition, and declining market share for craft beer, Two Beers has struggled financially for years and was largely able to continue operations because of the success of our sibling company, Seattle Cider Co. It was not an easy decision to make, but it’s one that certainly makes sense.”

Two Beers was founded in 2007 by Joel VandenBrink, with Seattle Cider following in 2013. Two Beers and Seattle Cider were sold in 2016 to Agrial Group, a French agri-business cooperative.

Madrid called the decision to shut down Two Beers “the right choice for our team to make.” Two Beers products will be sold through, with supply expected to last through early 2024.

Although Two Beers is ceasing operations, the company said it will not be undergoing “mass layoffs” due to the shared workforce with Seattle Cider, which will continue operations. The shared taproom, Woods Tasting Room in the SODO neighborhood, will also continue operations with Two Beer’s taps transitioning to local craft beers.

Two Beers will say farewell with a 16th anniversary celebration at The Woods on Saturday, December 16. 

Madrid added: “While this is a moment of sadness and reflection, we remain optimistic about the future and grateful for the memories and experiences that Two Beers has brought to our lives and community. We hope to see you in the future at The Woods and we look forward to continuing our support of the vibrant craft beer industry.”

 

People Moves

🤝 Susan Wozniak Joins 3 Tier Beverages

🤝  Susan Wozniak Joins 3 Tier Beverages

Susan Wozniak, former director of performance at Kona Brewing, has joined 3 Tier Beverages, a Chicago-based data solutions company, as a consultant.

Wozniak announced the news on LinkedIn this week, writing: “I’m a bit behind on an announcement because I’ve been so excited to dive right into crunching numbers again!”

Wozniak spent two years at Kona Brewing, following a nearly 6-year stint at Devils Backbone Brewing, another Anheuser-Busch InBev-owned craft brewery. Wozniak left Kona in February, and went on to found Planted Gardening Company, a garden design company.

 

On This Week's Brewbound Podcast ...

🎙️ Brewbound Podcast: Schilling Cider is ‘Excidered’ for National Cider Month

🎙️ Brewbound Podcast: Schilling Cider is ‘Excidered’ for National Cider Month

It’s National Cider Month and the team at Seattle-based Schilling Hard Cider is “excidered.” 

Co-founder and CEO Colin Schilling, CCO Eric Phillips and EVP of marketing Rachel Thomas join the Brewbound team to discuss the cidery’s participation in National Cider Month, as well as its debut at the Great American Beer Festival and a retail activation with Whole Foods. 

To mark the fourth annual National Cider Month, Thomas led the development of a brand agnostic website with drinker education and an events page for participating cideries. October was selected for National Cider Month because it’s also National Apple Month.

Colin Schilling said: “It's harvest season, apples are on folks’ minds, and if you look at the data over the last couple years [cider sales] over indexes naturally anyway. That's because of the harvest season, the change in weather. People are looking for a beverage like cider. So it's really the perfect time to do it. 

“We're so excited this year to be able to bring along so many other folks in our industry and give other people a platform.” 

Plus, Zoe, Justin and Jess break down recent headlines – including Molson Coors’ Happy Thursday hard refresher, the Beer Institute’s annual meeting and Duvel USA’s 2024 innovation slate – and sample hop-infused chocolate during Another Round or Tabbing Out.

Listen here and on all popular podcasting platforms.

 

Data Dive

📈 Circana Weekly Data: Beer Dollar Sales +2% YoY, Volume -1.6%

📈 Circana Weekly Data: Beer Dollar Sales +2% YoY, Volume -1.6%

Total bev-alc dollar sales in Circana-tracked off-premise channels were flat in the latest week (ending October 1) versus the previous week, leading up to the start of “Sober October.”

Year-over-year (YoY), bev-alc dollar sales increased +1.8%, while volume declined -1.7%. In the last 52 weeks, bev-alc dollar sales increased +2.9% versus the previous 52-week period, and volume declined -2.4%.

Beer dollar sales increased +2.3% YoY and volume declined -1.6% in the latest week. The category continues to outpace the total bev-alc category in dollar sales gains, but recorded larger volume declines, with beer dollar sales +3.1% and volume -2.7% in the last 52 weeks.

Spirits dollar sales were up +5.7% YoY and volume +6.3% in the latest week, and +6.9% and +7.7% in the last 52 weeks.

Ready-to-drink canned cocktails (RTD) increased dollar sales +7.3% YoY and volume +0.9% in the latest week. In the last 52-weeks, RTD dollar sales were up +6% YoY. However, volume declined -1.8%.

 

Notable and Quotable

🗣️ Beer's Challenge Appealing to Women and People of Color

“Spirits did a damn good job of appealing to women and people of color in a way that beer is extraordinarily behind – not even behind, but has to dig itself out of several decades of absolute garbage marketing, positioning women not as consumers of beer, but as trophies or whatever else trash that we saw there in the ‘90s and the 2000s even. 

“Beer has some healing to do. And it needs to happen fast if it wants to curb the erosion of sales to spirits and wine,” – Mary Guiver, global principle category merchant for beer at Whole Foods, on stage Thursday at the BREW and Alliance for Women in Beer: Making Moves conference in Las Vegas.

Stay tuned for more coverage of the event.

 

Parting Shot

🎃 24% of Beer Sales Come in OND

🎃 24% of Beer Sales Come in OND

Just how much beer is sold in October, November and December? 

3 Tier Beverages consultant Mary Mills shared the above slide, showing that nearly a quarter of off-premise beer category sales in Circana-tracked channels occur in the last quarter of the year, during the National Beer Wholesaler Association’s Annual Convention in Las Vegas earlier this week.

By comparison, 29% of yearly wine and spirits sales occur in Q4.

 

Save the Date

📊 Brewbound Live 2023: NIQ and 3 Tier Beverages Leaders to Explore Evolving Consumer

📊 Brewbound Live 2023: NIQ and 3 Tier Beverages Leaders to Explore Evolving Consumer

From Generation Z to the silver tsunami, keeping up with consumers and their rapidly changing drinking habits isn’t easy. 

The 2023 Brewbound Live business conference (December 6 + 7 in Marina del Rey) will try to break the mystique with a presentation by NIQ beverage alcohol vertical director of thought leadership Kaleigh Theriault and 3 Tier Beverages analytics and client success consultant Stephanie Roatis.

Theriault and Roatis will provide fresh perspectives and share strategies to help brands better understand the consumer, from changing demographics to sober curiosity to consumer powered trends on flavor, pack size and channel choices.

This session is your ticket to unlocking a level of consumer engagement as strong as Swifties watching a Kansas City Chiefs game.

Theriault and Roatis join a speaker roster that includes: Brewers Association chief economist Bart Watson, NBWA chief economist Lester Jones, Tilray president of U.S. beer division Ty Gilmore, National Black Brewers Association executive director Kevin Asato, Bell’s Brewery EVP Carrie Yunker, BuzzBallz founder Merrilee Kick, BeatBox co-founder Aimy Steadman, and Stateside Vodka CEO Clement Pappas. More speakers to be announced in the coming days.

Brewbound Live takes place December 6 and 7 in Marina del Rey, California, at the Marina Del Rey Marriott Hotel (4100 Admiralty Way, Marina Del Rey, CA). 

Tickets are available now.

 

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