Dear Client: One of the themes that came out of our conference in January is that beer will return to 2019-level or above discounting levels, and it appears to be happening. Remember that when price gaps get out of whack -- not only within and among beer categories but compared with wine and spirits -- … Continue reading "Beer Getting Promotional"
Dear Client: We've already brought you the high-level scoop on Anheuser-Busch's Super Bowl plans [see BBD 01-11-2023]. And after last week's SAMCOM meeting coverage, readers also know the sky-high hopes that A-B brass has for Mich Ultra, which the company thinks can get to 10 share by 2025 [see BBD 01-27-2023] -- particularly by closing … Continue reading "Inside Mich Ultra’s “Boldest, Most Ambitious” Super Bowl Plan Yet"
Dear Client: A 45-year Tri-State area Sapporo distributor claims in a lawsuit the supplier has threatened to terminate the parties’ decades-long relationship, citing the distributor’s poor post-Covid performance as a pretextual reason for pulling the contract. Wine of Japan Import Inc. (WOJ) and its import affiliate, Sanwa Trading Co. Inc., distribute “Sapporo products in the … Continue reading "Longtime Sapporo Distrib Sues Supplier Over Termination Notice"
Dear Client: The founders of “party punch” in a box – BeatBox Beverages – took the stage at our Beer Summit earlier this month to talk ‘23 plans for the company following an uber-successful ‘22. Let’s dig in. DOUBLING THEIR BUSINESS. In 2022, BeatBox “more than doubled,” co-founder Justin Fenchel said, to over $40 million … Continue reading "BeatBox on Building the Brand to 100K Bbls"
Dear Client: In a recent conversation regarding the flimsy supplier agreements non-alc purveyors are thrusting upon beer distributors, he indicated that wholesalers needed to take a page from the playbook of labor unions and hold the line collectively and not give in to contracts that heavily favor the supplier. Wholesalers we've spoken with all agree … Continue reading "A Beast of a Contract"
Pricing hits the Deuce ceiling, but tougher comps will bring it back down. Dear Client: David Williams of Bump Williams Consulting represented our industry on the Today Show to talk about, what else? Beer pricing. Beer was late to the price increase game, but when we did, we came in hot, and consumers along with … Continue reading "Pricing Breaks the Sound Barrier"
Dear Client: "Over the past several years, RNDC’s performance as a distributor grew worse and worse. Sazerac has attempted to work with RNDC to come up with ways to improve its performance. None of those efforts have worked." So starts the 13-page lawsuit Sazerac filed against its longtime distributor, Republic National Distributing Co. (RNDC), in … Continue reading "Sazerac Sues RNDC for Millions for Alleged Non-Payment of Inventory"
Dear Client: After Constellation's recent quarterly results and recent scan data showing a marginal weakening of growth trends for powerhouse brand Modelo Especial, the latest narrative at the Beer Summit and elsewhere focused on more transitory headwinds rather than structural ones. Nik Modi of RBC Capital Markets writes to investors that "most distributors/retailers had a … Continue reading "Are Modelo’s Softening Trends Transitory?"