📈 FMBs Surpass Craft in YTD Scans

Hey there, beer aficionados! Zoe Licata dropping by with a quick note. As you know, you're currently sipping on the Lite Edition of our Daily Briefing -- a tasty teaser, if you will. But here's little secret: Our editorial team works harder than your grills did this weekend to bring you the latest updates in the industry. And we couldn't do it without our Insiders. They're the unsung heroes behind every story, providing the fuel that keeps our editorial engine running and content coming your way. 

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Beer is starting to reap the benefits of the summer selling season, according to the latest monthly beer report from market research firm Circana.

Total beer dollar sales in Circana-tracked off-premise channels (total U.S. multi-outlet + convenience) have now declined -0.5% and volume -2.5% year-to-date (YTD), through June 16. While still in decline, trends have improved versus Circana’s previous report (ending May 19), when dollar sales were down -0.9% and volume -2.3%.

Insiders can read more, including how all beer segments performed in c-stores, grocery and multi-outlet, and what channel is seeing the largest price hikes.

Constellation Brands’ share price declines Wednesday seemed not to shake company leadership, who expressed optimism about continued growth during the company’s Q1 FY 2025 earnings call with investors and analysts.

Constellation posted a strong first quarter, increasing net sales +6% versus Q1 FY24, to $2.662 billion, led by the company’s Mexican beer import portfolio of Modelo, Corona, Pacifico and Victoria, which increased net sales +8%, to $2.272 billion.

(Brewbound previously covered Constellation’s Q1 full financial results. Catch up here).

Constellation’s Q1 was supported by the Cinco de Mayo holiday, which the company led “as usual,” CFO Garth Hankinson said. Additionally, the company “once again won the Memorial Day holiday.” 

Insiders can read more, including how Constellation’s share price fluctuated, and leadership’s thoughts on the impact of the future presidential administration on Constellation’s continued growth.

D.G Yuengling and Son (DGY) has agreed to swap territories with its joint venture with Molson Coors (TYC). In a letter to distributor partners last week, chief administrative officer Wendy Yuengling wrote that the brewery would trade its Louisiana, Arkansas and Mississippi territories to the JV for the yet-to-be-opened market in Michigan. 

Yuengling wrote that Louisiana, Arkansas and Mississippi would be “more efficiently serviced” by the JV with production coming from Molson Coors’ production facilities in Fort Worth, Texas, instead of Yuengling’s brewery in Tampa, Florida. The transition will take place in the fourth quarter.

Insiders can dive into Yuengling’s year-to-date scans through mid-June. 

More than 4.043 million barrels of beer were imported into the U.S. in May, marking the first time more than 4 million barrels were imported in a single month, according to Beer Institute (BI) chief economist Andrew Heritage, citing the latest report from the Department of Commerce. 

May import volume increased +9.2% year-over-year (YoY). Year-to-date (YTD), beer imports have increased +8.9%, to nearly 17.92 million barrels, an increase of nearly 1.5 million barrels versus the same five-month period in 2023. 

Insiders can read more, including state shipment results and Heritage's comments whether production increases are translating into consumer sales.

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Who is the craft beer and beverage-alcohol consumer? The Brewers Association’s economics and statistics tag team of Bart Watson and Matt Gacioch will break down changing drinker preferences, changes in consumption frequency and which occasions align best with particular drinks. The lunchtime webinar goes down Thursday. Look for coverage Friday.

The Brewbound Podcast will return midweek as the Brewbound team reconvenes after a long weekend to discuss the July 4 holiday and the latest headlines.

There was positivity in the air around total beer last week, with the Beer Purchasers’ Index reaching a three-year high for June, and five of the seven beer segments recording flat or increased readings year-over-year. 

On-premise establishments are also reaping the benefits of the summer season, according to CGA, a NIQ-powered on-premise market research firm. More than a quarter of respondents to CGA’s latest survey said they plan to visit bars and restaurants more this summer than they have so far in 2024. 

Several People Moves were announced last week:

• Former Boston Beer head cider maker Ryan Burk has joined Blake’s Beverage as VP of quality & innovation. Blake’s portfolio of brands include Blake’s Hard Cider, Austin Eastciders, and AVID Cider Co., making it the second largest independent cider company in the country;
• Townsend Ziebold has joined Arlington Capital Advisors as of July 1, following five years as the lead of TD Cowen’s bev-alc practice;
• Suntory has promoted internally for its new U.S. RTD director, selecting for COO of Suntory Beverage and Food Great Britain & Ireland (SBF GB&I), Carol Robert. Suntory aims to reach $3 billion in global RTD sales by 2030.

Speaking of RTDs … the North Carolina Senate passed a bill last month that would lower the tax rate on spirits-based RTDs, as well as allow bev-alc delivery and cocktails to-go and would permit alcohol sales on major holidays. 

Pennsylvania also moved forward new spirits-based legislation. Get the details from BevNET spirits editor Ferron Salniker in the link above. 

TikTok has opened an ad platform for bev-alc brands in the U.S., after reaching the 73.8% threshold of users who are at or above legal drinking age (LDA). The percentage is based on the number of LDA adults in the country, according to the census, and is enforced by industry trade groups’ marketing and advertising guidelines. 

Bev-alc brands won’t have total free rein on the platform. Brewbound managing editor Jess Infante has all the details.

Kirin is moving its U.S. production from Anheuser-Busch to New Belgium. Starting in January 2025, New Belgium’s Fort Collins, Colorado and Asheville, North Carolina, facilities will produce Kirin Ichiban and Kirin Light. 

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.

Speakers for this year’s conference 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
• Gulf Distributing senior VP of legal and government affairs Rebecca Maisel
• 3 Tier Beverages consultant Mary Mills
• NIQ director of thought leadership for bev-alc Kaleigh Theriault
• Bump Williams Consulting VP of business development BK Krueger
• Full Circle Brewing owner Arthur Moye.

Additional speakers will be announced in the coming weeks.

Register for Brewbound Live 2024.