🍹 The Plateau of Spirits-Based RTDs

Brewbound Insiders are diving into the highs and lows of Q2 in the latest 3 Up 3 Down with 3 Tier Beverages, a quarterly Insider-exclusive feature. The latest installment includes upward trends for craft lagers, hard tea and tequila reposado, and a dive into the challenges facing canned cocktails, sangria and 12- and 15-packs.

Insiders also have access to today’s newsletter-exclusive content, including:

• Finding out who has made the finals for Samuel Adams’ Brewing the American Dream Experienceship (including some familiar faces);
• Learning about the closing of a historic brewpub in New Hampshire;
• And checking out a distribution deal for a non-alc brand in New York.

Insiders also have access to the Brewbound Newsletter Archive, including previous newsletter-exclusive Insider content.

Become a Brewbound Insider today!

Or, be in the know on all food and beverage news from Brewbound, BevNET and NOSH with Insider All Access.

3 Up, 3 Down, 3 Tier product team consultant Stephanie Roatis shared insights on industry ahead of the summer selling season, in the latest edition of 3 Up, 3 Down with 3 Tier Beverages, an Insider-exclusive quarterly insights series made in partnership with the Chicago-headquartered bev-alc consulting and data firm. 

Roatis explored areas of growth, including craft light lagers, hard tea and tequila reposado, and segments in need of improvement, including canned cocktails, sangria and 12-packs.

Insiders can dive into Roatis’ full report, which uses NIQ data through April 20, 2024.

Last week, Sierra Nevada promoted VP of sales Ellie Preslar to chief commercial officer. The move comes after several other leadership changes at the California-based craft brewery, and as Sierra continues to invest in its CanDo co-packing facility.

Brewbound chatted with Preslar following her promotion announcement. Look for highlights from that conversation later this week. 

Plus, a fresh Brewbound Podcast will drop in your feeds by midweek, featuring On Location conversations with Lifting Lucy and Infinite Ingredient, recorded during the Craft Brewers Conference in Las Vegas.

Several bev-alc deals were announced last week, including Gallo’s strategic investment in Montucky Cold Snacks. The move marks Gallo’s first step into the beer market, as Montucky joins a portfolio of wine and spirits brands, including High Noon Sun Sips and recently acquired ready-to-drink brands Salt Point and Waterbird.

Gallo EVP Britt West chatted with Brewbound about the investment, and why Gallo sees Montucky as a “1-of-1” lager brand, despite growing competition in the space. West also discussed Gallo’s plan to scale Montucky, and its vision for the future of its portfolio.

In distribution, Sunkey Beverage Holdings announced plans to acquire Silver Eagle Beverages, an independent Anheuser-Busch InBev wholesaler in Texas. The deal would add nearly 16 million cases annually to Sunkey’s business.

And on the retail side, the assets of grocery chain Foxtrot were sold via auction to Further Point Enterprises for $2.2 million. Foxtrot abruptly shut down operations, including all 33 of its locations, in April. The future of the company is still unknown.

The April Consumer Price Index was released last week, and marked the sixth consecutive month that the CPI for beer at home was at or below +3%, before seasonal adjustment. Meanwhile, overall inflation increased +3.4% year-over-year.

In other data news, 3 Tier Beverages consultant Mary Mills and founder Donn Bichsel Jr. joined the Brewbound Podcast to discuss the best strategies for analyzing data, including how data sets excluding the top 15 brewers can reveal true market opportunities.

Listen to the discussion here, along with a conversation with New Belgium Brewing lead research and development brewer Kelly McKnight. Both conversations were recorded last month on the BrewExpo floor during the Craft Brewers Conference in Las Vegas.

Jefferies gave Boston Beer Company a “buy” rating, following the results of the financial services firm’s bi-annual beer distributor survey. Boston Beer is expected to return to volume growth for the first time since 2021, thanks in large part to the continued growth of Twisted Tea, which made up 41% of the company’s volume in 2023.

Speaking of Boston Beer … founder and board chairman Jim Koch sat down with Goldman Sachs analyst Bonnie Herzog for a fireside chat last week, and he did not hold back addressing Boston Beer’s headwinds, including an “embarrassing” past of missing guidance, which has impacted the company’s credibility. Koch also discussed the “tidal wave of clutter” happening in hard tea, and beer’s opportunities with the “fourth category.”

The latest edition of Brewbound’s Insider exclusive Q&A series, A Round With, catches up with Crooked Owl Hard Tepache co-founder Camillia Bailey on creating an “immersive and discoverable” world around the brand.

Insiders can catch up on all these stories, and other headlines from last week, including: 

• Wisconsin Brewing Launches Harley-Davidson Branded Non-Alcoholic Beer
• ACE Cider Parent Company Vintage Wine Estates Cuts 10% of Workforce
• From Mixers to Margaritas: Hella Cocktail Co. Moves Into RTDs
• Spirits Distribution: Berczy Joins Hard Tea Race; DIO Aims for the Minibar with RNDC

Need a recap with more GIFs? Our Insider’s Week in Beer weekend newsletter has you covered.

The Brewbound Live business conference returns December 11 and 12 in Marina del Rey, California.

Brewbound Live will feature beverage-alcohol industry leaders taking part in business-focused conversations, data presentations, networking and much more across two days at the Marina del Rey Marriott.

Brewbound announced the first speakers for this year’s conference. They include:

• Russian River co-owner Natalie Cilurzo;
• Deschutes Brewery CEO Peter Skrbek;
• National Beer Wholesalers Association chief economist and VP of analytics Lester Jones;
• Draftline Technologies founder and president Jennifer Hauke.

Additional speakers will be announced in the coming weeks.

Register for Brewbound Live 2024.

At Brewbound Live in Marina del Rey, CA on December 11 + 12, beer and beverage-alcohol brands can participate in retailer one-to-ones. Leaders from Whole Foods Market will be available for private, pre-scheduled meetings. Brands will be selected at each retailers’ discretion.

As the world’s leader in natural and organic foods, with a vast network spanning over 500 stores, Whole Foods holds substantial influence in the market. These meetings present a unique opportunity for beer and beverage-alcohol brands aspiring to excel in retail channels focusing on natural and organic products. 

Participating brands can gain invaluable insights and strategic guidance tailored towards facilitating growth within these specialized retail environments.

You must be registered for Brewbound Live to be considered for a retailer meeting. Once you register for the event, you will receive an email with instructions for signing up.

Register for Brewbound Live Winter 2024.