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🚧 Craft Distilling Roadblocks Echo Craft Beer

Daily Briefing
Plus, the latest NB2A equipment grant recipients ...͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BrewboundAugust 19, 2024
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Today's Top Story

🥊 Survival of the Craftiest: How Distillers Are Battling Distribution and Regulation Roadblocks

🥊 Survival of the Craftiest: How Distillers Are Battling Distribution and Regulation Roadblocks

Earlier this month, an article in Food & Wine proclaimed craft spirits in crisis, kicking off a tense debate between wholesalers and craft spirit representatives about the root causes of the challenges facing distillers. 

The dispute centers not only on consolidation among distributors, but also a changing market under stagnant regulation that has put pressure on the creative backbone of the spirits industry. So where’s the relief for craft distillers?

Simmering tensions have come to a boil amidst an industry-wide slowdown, to which craft distillers haven’t been immune. In 2022, U.S. craft spirits topped $7.9 billion in sales, growing 5.3% in value and 6.1% in volume, but slowed considerably from the year prior (12.2% in value and 10.4% in volume), according to the 2023 Craft Spirits Data Project, released by the American Craft Spirits Association (ACSA) and Park Street.

Insiders can read more, including distribution challenges and craft distillers’ strategies for sustainable growth.

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From the Wire

🎁 Cajun Fire and Montclair Brewing Awarded NB2A Equipment Grants

🎁 Cajun Fire and Montclair Brewing Awarded NB2A Equipment Grants

New Orleans-based Cajun Fire Brewing is the new owner of a 20-barrel brewhouse.

The National Black Brewers Association (NB2A) and Russian River Brewing Company announced the donation of a 20-barrel brewhouse by the California craft brewery at an April press conference during the Brewers Association’s Craft Brewers Conference (CBC) in Las Vegas. Russian River used the brewhouse for more than two decades, brewing some of its iconic beers, including Pliny the Younger.

Additionally, Optimism Brewing has donated a canning line that has been awarded to Montclair, New Jersey-based Montclair Brewery. 

The donations were part of the NB2A’s Equipment Donation Grant Program, which awards Black-owned breweries “the tools they need to maximize productivity and sustain their businesses,” according to a press release.

Insiders can read more, including how the two breweries will be using their newly-acquired equipment.

👩🏼‍💼 Whitney Stevenson Joins JuneShine as President and Chief Commercial Officer

👩🏼‍💼 Whitney Stevenson Joins JuneShine as President and Chief Commercial Officer

Former Boston Beer Company division director Whitney Stevenson has joined JuneShine as president and chief commercial officer (CCO) of the California-based hard kombucha and canned cocktail maker. 

Stevenson announced the news Friday on LinkedIn, posting a photo of herself with JuneShine co-founders Greg Serraro and Forrest Dein, and writing: “Could not be more excited to join Greg, Forrest and the JuneShine Team! So many exciting things to come!”

Insiders can read more, including a refresher on recent JuneShine news, and how the company is drawing inspiration from Stevenson’s former employer.

On Tap This Week

🔮 BeatBox Sales Meeting, Brewbound Podcast on Tilray M&A, Sierra Nevada

🔮 BeatBox Sales Meeting, Brewbound Podcast on Tilray M&A, Sierra Nevada

Look for additional coverage from BeatBox’s first national sales meeting, including their idea for a “flavor wall” at off-premise retailers, as well as more on-the-ground reporting from Sierra Nevada and New Trail. 

A new edition of the Brewbound Podcast, featuring a lot of Tilray M&A talk and details of Zoe’s trip to Sierra Nevada, will hit podcast feeds midweek.

ICYMI

⏮️ More Craft Brands Headed to Tilray and Sierra Nevada, BeatBox and New Trail Distributor Summits

⏮️ More Craft Brands Headed to Tilray and Sierra Nevada, BeatBox and New Trail Distributor Summits

August is apparently Tilray acquisition month. 

Almost exactly one year after Tilray announced plans to acquire 8 beverage brands from Anheuser-Busch InBev (A-B), Tilray has not announced its planned acquisition of four craft brands from Molson Coors. 

The global cannabis company has reached “a definitive agreement” to acquire Hop Valley, Terrapin Beer, Revolver Brewing and Atwater Brewery. The four brands will join a portfolio that already includes Shock Top, Breckenridge Brewery, Blue Point, Red Hook, Widmer Brothers, 10 Barrel, Square Mile Cider, Hi-Ball, SweetWater, Montauk, Green Flash and Alpine. 

In other deal news, A-B has reached agreements to sell its wholly owned distributor branches in Massachusetts and Ohio to independent A-B distributors. The Boston-based branche will go to Martignetti-owned Quality Beverage, while the Canton, Ohio-based branch will go to Columbus DIstributing. 

Along with it being Tilray acquisition season, it's the annual business planning and wholesaler meeting season. Brewbound hit the road last week to check out 2025 plans for Sierra Nevada (held in Mills River, North Carolina) and BeatBox Beverages (held in Houston, Texas). 

Sierra Nevada is focused on “beer-flavored beer” in 2025, with new hazy, non-alcoholic and lager products releasing in the next year, plus a new seasonal and refreshed variety packs.

Party punch maker BeatBox beverages has several new flavors coming in 2025, including (but not limited to) Blueberry Lemonade, Big Papa Pickle Margarita and Grape Juice. The company’s portfolio is being supported in part by $38 million in marketing spend, and a new investment from sports megastar Shaquille O’Neal. 

Brewbound managing editor Jess Infante also headed to Pennsylvania earlier this month to hear about the happenings at New Trail Brewing, which has yet to have a “down month” in 2024, co-founder Dave Hertwig told wholesalers at the craft brewery’s inaugural distributor summit. 

Look out for further coverage of all three events later this week.

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In other craft news, New Belgium has restructured its sales and marketing organization, resulting in the elimination of seven roles. The restructuring aims “to lay a stronger foundation of support and to carry the momentum of our growing business into the future,” a spokesperson told Brewbound. 

In data news, beer inflation continued to outpace total inflation and total bev-alc in the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics (BLS). The CPI for beer at home increased +4% in July versus the same month in 2023, while beer away from home increased +3.1%. 

Read these stories and more on Brewbound.com, including:

Plus, check out the latest episode of the Brewbound Podcast, featuring NIQ VO if alcohol industry thought leadership Jon Berg discussing bev-alc’s H1 2024, and the “mega” fourth category.

And, get your gif and humor fix with the Insiders’ Week in Beer newsletter from Sean McNulty. 

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.

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    August 19, 2024 6:16pm

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