Dear Client:
In a bold and strategic move, Bud Light is debuting nutrition labels, similar to what you see in other CPG categories, next month. It would appear a shot across the high-calorie craft, import, and FMB brands cutting into Bud Light’s share, as younger drinkers increasingly look for those panels on everything they consume.
The big question: Will others follow?
THE DEETS. New packaging includes “a comprehensive on-pack serving facts and ingredient label, with the unveiling of a new secondary packaging design that will hit stores in February.”
You may recall that the Beer Institute’s Voluntary Disclosure Initiative, all the way back in 2016, saw the largest brewers — representing 81% of beer volumes in the U.S. — promise to voluntarily include a serving facts statement on their products by 2020.
The new Bud Light packaging lists all the regular stats of a FDA sanctioned nutrition label, including calories, carbs, fats, sugar, protein, and of course, ingredients, which are simply listed as: water, barley, rice, hops.
CREATING THE AWARENESS. To educate consumers on the labels, several TV spots (like this one) will broadcast the new move. They’ll start airing this weekend, during the NFL Divisional Championship Games. There is print support, too.
We asked: Why now?
As the biggest brand and industry leader, “it’s great for us to take the lead, to try to bring this transparency into the beer industry for consumers,” Bud Light chief Andy Goeler told BBD. “It’s time to do this because consumers are demanding such transparency. Consumers really want to know what ingredients are in their products.”
Plus: “We’re proud of what we put into Bud Light: We want to let people know.”
We postured that most light drinkers would likely know most of the stats listed on this packaging: Is this a move to force competitors’ and craft brewers’ hands?
“Absolutely not,” says Andy. “It truly has nothing to do with other beers. It’s purely about Bud Light,” and he points out that ingredients for many beers are already available in “many formats,” though obviously not in panel form on packages.
But “those facts on that label are damn good, it’s good for consumers to see that; I love all those zeros.”
Bud Light finished the year out down 5.5% in dollars in IRI multi-outlet and convenience data to 12/30, though it was down slightly less in more recent periods. We asked if they expected this move to provide some lift.
“We do always want more people to enjoy our beer,” Andy said, but this is more about transparency. Asked about key metrics, he said, “brand health continues on a very positive trend.”
OUR TAKE: This is a smart strategic move by A-B, because it will spark consumers’ curiosity once the ads hit. When a consumer sees the calorie count loud and clear on Bud Light’s packaging, they’ll begin to wonder ‘well, how many are in this beer and that beer?’ And they’ll soon realize that there aren’t a whole lot of brewers posting this information on their labels.
Some brewers may find it foolish to post these facts, as the calories and carbs are likely high across the board, but people can already find these facts if they want to. Type in any popular brew on Google and once you have the full name keyed into the search bar, you’ll see that the top suggestions on the search engine’s autofill are calories and carbs. Do brewers want to share the facts about their beer or rely on internet results?
BEER DOLLARS FINISH UP 1.8% IN IRI, VOLUME JUST UNDER FLAT
How did beer finish out the year in IRI? The full-year scandata, to December 30, just hit.
In multi-outlet and convenience, beer dollars were up almost 2%, thanks to imports, up 7.2%; craft, up 2.5%; super premiums, up 15%; FMBS, up almost 11%; and cider, up 10%. (No thanks to domestic premiums, down 4%.) Volume sales weren’t up as much as dollars, which resulted in a -0.3% result.
How did the top brands fare? Probably as expected, save a couple surprises: Bud Light, Miller Lite and Coors Light were all down low singles (Bud Light got into the mids), though those trends were slightly better for the most recent 4-week period, with Miller Lite dollars jumping to a +0.7% trend.
Mich Ultra Light was up around the 16% mark for YTD and most recent periods. Modelo was up almost 19% YTD, and more than 20% in the recent 4-week period. But Corona Extra was flat for the year, up 0.1% YTD but dipping into -0.9% for the latest 4 week period.
That’s just the 30,000 foot view: More next week.
TRADER JOE’S, COSTCO, AMAZON TOP CONSUMER GROCERY RANKING
Trader Joe’s finished atop a survey of customer preference among grocers, with Costco coming in second, according to data firm dunnhumby’s annual Retailer Preference Index, with surveys 7,000 US households.
As an aside, we note that Nielsen reports that Millennials spend less overall on FMCG (fast moving consumer goods, like toiletries) but they spend more per trip, indicating that they take fewer trips, (as they have fewer children), which feeds into why Costco is so popular.
The total rankings are: 1) Trader Joe’s, 2) Costco Wholesale, 3) Amazon, 4) H-E-B, 5) Wegmans Food Markets, 6) Market Basket, 7) Sam’s Club, 8) Sprouts Farmers Markets, 9) WinCo Foods, 10) Walmart, 11) Aldi, 12) Peapod, 13) The Fresh Market.
BEER BRIEFS:
BREWPIC: Here’s one way to lower the calorie count on your packaging. Coors Light is rolling out 8oz cans of their Rocky Mountain brew to Wal-Mart right now. We hear other chains will grab the “minis” as they get availability.
Until Monday
Harry, Jenn, and Jordan
“I can resist anything but temptation.”
– Oscar Wilde
———- Sell Day Calendar ———-
Today’s Sell Day: 9
Sell days this month: 22
Sell days this month last year: 22
This month ends on a: Thurs.
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
