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📈 Craft Scans Improve in All Channels Except C-Stores

Daily Briefing
Plus, Urban Artifact sues PA over DTC restrictions ...͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BrewboundJuly 29, 2024
DAILY BRIEFING: LITE EDITION
A preview of today's news & insights for the beer industry.
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Today's Top Story

📊 Circana: Craft Dollar Sales -4.8%, Volume -6.4% in L4W

📊 Circana: Craft Dollar Sales -4.8%, Volume -6.4% in L4W

Total craft trends improved slightly in the last four weeks (ending July 14), with dollar sales declining -4.8% year-over-year (YoY) and volume -6.4% in Circana-tracked off-premise channels (total U.S. multi-outlet plus convenience), according to the market research firm’s latest monthly report.

While still in decline YoY, craft improved versus the previous four-week period (ending June 16), when dollar sales declined -5.2% and volume -6.8%, as the segment benefitted from the July 4 holiday in the latest scans.

Craft performance remains significantly below total beer trends, with total beer dollar sales declining -0.8% and volume -2.5% in the last four weeks (L4W). Similarly, craft YTD declines (dollar sales -3.3%, volume -3.9%) were larger than total beer (dollar sales -0.5%, volume -2.4%).

Insiders can read more, including top 30 craft brand data across off-premise channels.

From the Wire

👩‍⚖️ Ohio-Based Urban Artifact Brewing Files DTC Lawsuit Against Pennsylvania

👩‍⚖️ Ohio-Based Urban Artifact Brewing Files DTC Lawsuit Against Pennsylvania

Ohio-Based Urban Artifact Brewing Files DTC Lawsuit Against Pennsylvania

Cincinnati, Ohio-based Urban Artifact Brewing has filed a lawsuit against Pennsylvania Liquor Control Board (PLCB) chairman Tim Holden and Pennsylvania State Police commissioner Col. Christopher Paris alleging the state “enforce[s] cost-prohibitive trade barriers on out-of-state breweries” and those barriers “prevent out-of-state breweries from competing freely with in-state breweries in violation of the dormant Commerce Clause.”

In-state breweries can “sell and ship beer directly to Pennsylvania consumers in unlimited quantities” under their brewery license using third-party carriers such as UPS or FedEx. 

However, out-of-state breweries must obtain a direct malt or brewed beverage shipper license from the PLCB, which also requires those breweries to hold wholesaler or off–premise retail licenses in their home states. The direct shipper license costs $250, according to Sovos ShipCompliant

Insiders can read more here.

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On Tap This Week

🔮 Tilray, A-B and Ball Earnings; Fresh Brewbound Podcast

🔮 Tilray, A-B and Ball Earnings; Fresh Brewbound Podcast

Quarterly earnings season rolls on this week. Tilray, the Canadian cannabis company with a robust stateside craft beer portfolio, will report its Q4 and full-year earnings today.

Anheuser-Busch InBev will report Q2 earnings on Thursday, as will Ball Corp., the world’s leading manufacturer of aluminum beverage cans.

Look for highlights from all throughout the week, plus a fresh Brewbound Podcast midweek.

ICYMI

⏮️ An Avalanche of Midyear Data, Boston Beer’s ‘Soft’ Q2 and Friday Beers

⏮️ An Avalanche of Midyear Data, Boston Beer’s ‘Soft’ Q2 and Friday Beers

Brewers Association chief economist and VP of strategy Bart Watson kicked off midyear reviews last week, diving into how craft has performed so far in 2024. Independent craft volume is down an estimated -2% so far this year, and has been following similar patterns to 2023, according to Watson.

Then, National Beer Wholesalers Association (NBWA) chief economist Lester Jones zoomed out on total beer, including on-premise trends using invoice data from Fintech and bonus analysis from Fintech VP of distributor strategy Eric Kiser. 

Brewbound reporter Zoe Licata also continued to dive into BarthHaas’ annual report, including global beer volume data. Insiders can check out the link above to see what countries and companies produced the most beer in 2023. 

In craft beer news:

Massachusetts’ Exhibit A has closed its Framingham location, and is moving to Williamsburg.
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Brewbound editor Justin Kendall explores the tumultuous nature of creating THC products in a time of ever-changing regulations, dishing on how THC-infused beverage maker Climbing Kites has adjusted to new guidance in Iowa. 

Southern Glazer’s is continuing to expand its footprint, with plans to acquire Horizon Beverage, adding Massachusetts and Rhode Island as its 45th and 46th states, along with Washington, D.C., Canada, the Caribbean and Central and South America. 

Boston Beer dominated the news late in the week, releasing its Q2 financials that included a -6% year-over-year decline in shipments (sales to wholesalers) and -4% decline in depletions (sales to retailers). The soft quarter led to a revision in the company’s guidance (details in the link). 
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During Thursday’s earnings call with analysts and investors, leadership acknowledged that the company’s two hard tea brands – Twisted Tea and Sun Cruiser – were the only brands to grow in the quarter, as declines continue for Truly Hard Seltzer and Boston Beer’s beer brands. The latter, including Samuel Adams and Dogfish Head, have suffered in part due to the company deprioritizing draft – something that will change moving forward, according to founder Jim Koch.  

Bernstein analyst Nadine Sarwat read the tea leaves ahead of Thursday’s call, diving into the importance of Twisted Tea, which is now the “only meaningful source of growth” for Boston Beer. Twisted Tea’s share of Boston Beer shipments has grown from 20% in 2020, to 41% in 2023. 

Insiders can read all these stories, as well as the latest edition of A Round With, featuring Wandering Soul’s Matt Smith, and the latest Week in Beer newsletter

Plus, listen to the latest episode of the Brewbound Podcast, featuring an interview with Almost Friday co-founder and CEO Jack Barrett and Corestone Capital founder and CEO Will McDonough. 

Save the Date

🎤 Pitch Your Beer or Bev-Alc Startup at Brewbound Live

🎤 Pitch Your Beer or Bev-Alc Startup at Brewbound Live

Discover the future of beer and beverage-alcohol at the Brewbound Live Pitch Slam during Brewbound Live, December 11-12 in Marina del Rey, CA. Watch 12 dynamic startups pitch to industry leaders and cheer on 6 finalists competing for a $10,000 ad package. Apply by September 30 to participate—no cost beyond Brewbound Live registration.

🏨 Brewbound Live Winter 2024: Discounted Room Block Open in Marina del Rey

🏨 Brewbound Live Winter 2024: Discounted Room Block Open in Marina del Rey

It’s time to book your room for Brewbound Live! Our two-day event for beer and beverage-alcohol professionals heads to Marina del Rey, California, on December 11 + 12. Register now to stay just steps from the action and save on your stay at the Marina del Rey Marriott Hotel (4100 Admiralty Way, Marina Del Rey, CA).

The Brewbound Live room block always sells out, so we encourage you to register today to secure your place among brewers, retailers, investors, distributors, beer leaders, and industry partners. Once registered, you will receive an email with the link to the discounted room block. Plus, right now you can take advantage of early registration pricing and save $100 per registration. Plan ahead to save and take advantage of both the room block and early registration discounts.

Attendees can look forward to expert presentations from brewery leaders, retailers, beverage-alcohol suppliers, wholesalers, and data providers, business conversations during scheduled networking breaks, the Brewbound Live Pitch Slam, samples of the latest innovations in the industry and the Brewbound Live Official Party, all set against the backdrop of sunny Southern California.

Register for Brewbound Live Winter 2024.

🛒 Meet One-to-One with Buyers from Whole Foods Market at Brewbound Live 2024

🛒 Meet One-to-One with Buyers from Whole Foods Market at 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.

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    July 29, 2024 5:22pm

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