Dear Client:
Don’t look now, but indeed it seems like the tough comps and throngs of people at bars and restaurants are definitely leaving off-premise sales to sink like a pencil diver.
In the latest NielsenIQ data, the four weeks to 6/19, overall beer dollars are down 6.1%, vs. -0.9% YTD. And the craft segment has one of the worst showings, down 12.2% vs. -3.7% YTD.
Even hard seltzer dollars are only up 11%, less than half the YTD trend of +26.3%.
Practically nobody in craft is safe from the slowdown. New Belgium, which has spent most of the last couple of years growing Voodoo Ranger double and triple digits, is up roughly 6% in dollars the latest period, vs. 16% YTD. The rest of “top craft” looks much worse. Blue Moon is down almost 13% for the latest four weeks. Sierra is down almost 14%. Sam Adams is down almost 12% (though overall Boston Beer is up 17.5%). Lagunitas is down 14%.
Most of those supplier trends are far worse than their YTD showing. And yet, no craft producer but New Belgium is trending positive anyway this year in this data set.
Curious about seltzer trends? Why not, we’ll whet your appetite. After all, that segment is craft giant Boston Beer’s bread and butter.
White Claw dollars are actually down 11.7% the latest four weeks, vs. -2.2% YTD. Truly is up 34.8%, vs. 56.1% YTD. Everyone else is down — Smirnoff and Corona hard seltzer are down double digits the latest period — or just barely up: Bud Light Seltzer is up 2.4% for the latest period (vs. 30.4% growth YTD).
SWEETWATER AND BROKEN COAST CANNABIS COLLABORATE ON SWEETWATER BROKEN COAST BC LAGER
SweetWater Brewing Company and Canada’s Broken Coast Cannabis have announced new SweetWater Broken Coast BC Lager, which they’re dubbing as “the first collaborative brew between craft beer favorite, SweetWater, and Canada’s leading craft cannabis brand, Broken Coast.” Note, this beer does not have cannabis in it. But it is hitting the U.S. on premise and “select retail locations” as we speak, with 6-pack cans available mid-July.
But the two companies share a common parent in Tilray, which merged with Aphria in May. That was after Aphria purchased Sweetwater last fall for $300 million [see CBD 11-04-2020], as the company saw a beer brand that “aligns with a cannabis lifestyle and provides a scalable platform for expansion into the U.S. and Canada.”
Back to Broken Coast BC Lager. The company says the 5.5% ABV “coastal lager is specially brewed to give a nod to one of the most beautiful coastlines in the world. Flowing in taprooms and available to purchase and pair with your favorite outdoor adventure, the base lager is refreshing with added twists of key lime and orange.”
“With a strong aligned passion and value system, working with Broken Coast on the inspiration for this special brew was an exciting process for our team,” said SweetWater CMO Brian Miesieski. “British Columbia is known for its coastal shorelines, and with it being one of the most beautiful and adventurous places in North America, we wanted beer drinkers to feel as if they are transported there each time they sip on this new lager.”
More soon.
FX MATT CHIEF MATT ON EVERYTHING FROM LEADERSHIP TO LUCK
In an age where toxic workplaces get “outed” daily, this Syracuse.com piece on leadership at F.X. Matt Brewing – a family-owned company that’s survived Prohibition, fires and erratic consumer tastes for more than 100 years – offers a glimpse on what keeps the Matt train rollin’.
The paper sat down with an introspective Fred Matt, president of the company that, as we reported this spring, not only has its own craft and seltzer brands, but also contract brews for craft — and increasingly for the hot seltzer and canned cocktail brands on the market [for more on that end of the business see BBD 04-30-2021].
Fred has been with the company business since 1989, when his uncle Nick, who’d been working at Richardson Vicks, plucked a young Fred from his job at Grey Advertising in New York City. They were going back to work for the brewery.
FINDING A WAY OUT OF TOUGH TIMES. “The 1980s were tough sledding for regional breweries,” Fred told the paper. “The majority went out of business. We hung on by our fingertips. The brewery, I believe, lost somewhere around $10 million from 1984 to 1989.”
He said the regional breweries had a tough go of it as national guys spent on ads and slashed prices (sound familiar)?
“We focused on quality, and the national breweries came in and lowered prices. Our way of dealing with it was to hold pricing down. The hold [on] pricing was two curses. One, you didn’t have money to build your business, and, two, holding your price gave the perception your quality wasn’t as good.”
The way out shone in the early 90s, when Saranac won a GABF award and Nick decided to lean into the Saranac end of the business: The margins were good, and craft was growing.
“Dad had created Saranac in 1986, but it was really before its time,” said Fred. “In 1991, when we won the Great American Beer Fest, Saranac was like 20,000 cases. And that’s when Nick said, let’s lean into Saranac and drive it forward. That was a great decision.”
FIRSTS, AND MULTIFACETS. The company has always been multifaceted, and Fred claims a lot of “firsts”: Utica Club was the first beer brewed after Prohibition. (“We have the No.1 license,” said Fred.) Besides having popular beers like Matt’s Premium in the 70’s and 80’s, Fred’s dad, F.X. Matt II, “got us into contract production and Saranac beer.”
He says they created the first mix packs in craft beers. They even helped the “father of seltzer,” Nick Shields, produce his seltzer brand, SpikedSeltzer (now A-B owned BonV!v) circa 2016.
There are two main parts to the company.
“We have our own brands which comprise Saranac beer, Saranac soft drinks, obviously Utica Club, and then we make Saranac green tea seltzers. …
“Then we have the contract side of our business, which is heavily craft. Almost anybody on the East Coast that’s been successful in the craft category has worked with us. Arguably, the first craft beer on the East Coast was New Amsterdam, and it started here in 1981.” By now, they’ve invested roughly $50 million in that end of the business, partly to diversify their production. They do everything from canned wine, to spirits, non-alc and more.
And just when you think you know every pie they have their finger in, yet another “leg” appears on their stool. For instance: “We also own the Flying Bison Brewery in Buffalo and that has another seven employees. Another cool thing is that we do all our mix packs, over 2 million cases, with Oneida County Arc. We employ about 25 to 35 people at Arc. That relationship is growing.”
ON LEADERSHIP AND CULTURE. But the whole thrust of the story was how this family-owned company has grown even amid so many changes and eras. In a nutshell, says Fred: It’s people.
“We have this ability to do things we probably shouldn’t be able to do. It’s because we have a group of people that work together, are passionate about what they do, and have pride in the product. It results in a resilient company that has survived and thrived for 133 years.
“If you ask me what one single thing made it happen, I’d say, one, we’ve always delighted our customers, and, two, people that have worked here made it happen.”
But if you ask him his advice on effective leadership, he says: “I think it’s lead by example. I think it’s providing clarity of expectations and direction. People come to work wanting to do a good job. If they’re clear on what they’re doing and what’s expected of them, they succeed.”
Listening, celebrating “wins” and being open and honest – even on a personal level – is key.
What’s “out?” Poor leadership and harassment. “People are becoming less and less tolerant of that kind of poor leader, because it just isn’t right.”
Until tomorrow,
Harry, Jenn and Jordan
“The secret to staying young is to live honestly, eat slowly, and lie about your age.” -Lucille Ball
———- Sell Day Calendar ———-
Today’s Sell Day: 21
Sell days this month: 22
Sell days this month last year: 22
This month ends on a: Wed.
This month last year ended on a: Tues.
YTD sell days Over/Under: -1
