🍻 Gallo GM Dishes on Montucky Investment, Beer Strategy

Brewbound Insiders are getting all the highlights from Brewbound’s conversation with Gallo EVP Britt West following the company’s “strategic investment” in Montucky Cold Snacks. West dished on what attracted Gallo to the light lager brand and how Gallo plans to scale the brand, as well as what sparked Gallo’s recent acquisitions of Salt Point and Waterbird Spirits.

Insiders are also:

• Reading details on Sunkey Beverage Holdings’ planned acquisition of Silver Eagle Beverages;
• Finding out why Hella Cocktails is expanding into ready-to-drink cocktails;
• And diving into the April Consumer Price Index for total bev-alc, beer, wine and spirits.

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

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Light lager brand Montucky Cold Snacks is “a big anchor” within Gallo’s total beverage alcohol strategy moving forward, as the wine and spirits giant enters the beer category, Gallo EVP and general manager Britt West told Brewbound. 

West added that the acquisitions of ready-to-drink canned cocktail (RTD) brands Waterbird and Salt Point in April, along with existing Gallo offerings High Noon Sun Sips; VMC, a tequila-based canned cocktail partnership with boxer Canelo Alvarez; and Fishers Island Lemonade, which the company acquired last year, are all pieces of the larger puzzle that the company can build around moving forward. 

He said: “Now you’ve got a portfolio. We feel that these are all very different consumer propositions that have a very different reason to exist. And so here we are.”

Read more: Gallo Makes ‘Strategic Investment’ in Montucky Cold Snacks

Brewbound spoke with West shortly after the announcement of Gallo’s “strategic investment” in the top 50 brewery. Here are excerpts from that conversation.

Become an Insider to find out more about Gallo’s strategy, its plans to scale Montucky, and West’s thoughts on RTD brands Waterbird and Salt Point.

Florida-headquartered Sunkey Beverage Holdings has reached an agreement to acquire Texas-based Silver Eagle Beverages, an independent Anheuser-Busch InBev (A-B) wholesaler. 

The sale includes all of Silver Eagle’s business activities in Bexar county, and 12 additional counties across Southwest Texas, as well as Silver Eagle’s San Antonio corporate office and warehouse, Del Rio warehouse and Carrizo Springs depot, according to a press release.

Financial details of the deal were not disclosed. The transaction is expected to close after regulatory approvals and “other customary closing conditions,” according to the release. Silver Eagle will continue to operate under its own name.

Insiders can read more, including comments from leadership with Silver Eagle and Sunkey.

Hella Booze? Known for its bitters and mixers, Hella Cocktail Co. is making a move into bev-alc with a RTD line debuting this week

Hella Margaritas will launch in three flavors featuring the brand’s signature bitters, positioned as the colorful, flavor-driven, quality counterparts to the White Claws of the world, argues its co-founder. 

It’s a new chapter (which includes new branding) for the cocktail ingredient company, and reflects similar moves from new and old adult non-alc brands like Betty Buzz and Fever Tree. 

Insiders can read more here, including comments from co-founder Eddie Simeón on the company’s strategy.

Simeón also spoke at Brewbound Live in December for a panel discussion about innovation inspiration, joined by Molson Coors director of marketing innovation Amanda DeVore, Liquid Death SVP of marketing Dan Murphy and WeldWerks head brewer Skip Schwartz. 

Watch the full panel discussion here.

Donn Bichsel Jr. and Mary Mills, leaders from beverage consultancy 3 Tier Beverages, share why data with the top 15 brewers removed can reveal true market opportunities and pitfalls, why brewers should also have a total-beverage alcohol perspective and which packages are trending. 

Then, New Belgium Brewing lead research and development brewer Kelly McKnight explains the Voodoo Ranger maker’s strategy for new products, why new IPAs flow under the Voodoo umbrella and much more.

Plus, Justin and Zoe review the latest headlines, including people moves at Sierra Nevada, BrewDog and Great Lakes. They also discuss how Wisconsin Brewing is carving a niche within the non-alcoholic beer space with a Harley-Davidson branded beer. 

Listen here or on your podcast platform of choice.

The Consumer Price Index (CPI) for beer at home increased +3% year-over-year (YoY) in April, marking the sixth-consecutive month the measure has remained at or below +3%, before seasonal adjustment, according to the U.S. Bureau of Labor Statistics (BLS).

The CPI for beer at home also remained below overall inflation, which increased +3.4% versus April 2023. When seasonally adjusted, the CPI for all items increased +0.3% YoY, a slight decline versus March (+0.4%, seasonally adjusted).

Total beverage-alcohol increased +2% YoY, before seasonal adjustment. At home, the CPI for bev-alc increased +1.6% YoY. Month-over-month (MoM), the CPI for bev-alc was about flat overall (+0.1%) and at home (+0.0%), when seasonally adjusted. 

Beer at home increased +0.7% MoM, seasonally adjusted, after declining -0.5% MoM in March.

Spirits and wine were below total bev-alc at home, both recording a CPI increase of +0.8% YoY. Seasonally adjusted, spirits declined -1% MoM, its second consecutive MoM decline. Wine was about flat (+0.1% MoM), consistent with March trends.

Insiders can read the full report, including CPI figures across bev-alc away from home.

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.

In addition to the mainstage programming and networking parties, Brewbound Live will feature opportunities for one-to-one conversations between brewers and bev-alc brands and retail buyers from chains such as Whole Foods Market. Registered attendees will be considered for meetings with buyers, as space is limited. Find out more details here.

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.