Dear Client: As the Mexican government has deemed alcoholic beverage production non essential, breweries are theoretically shut down there until at least mid May-ish (though of course Constellation has said it is working with “reduced operations”).  That means potential U.S. supply shortages for any or all Mexican beer brands, any way you dice it.  Indeed: … Continue reading “HUSA Tells Distributors to Brace for Mexican SKU Shortages”

Dear Client: As the weather turns warmer, and parts of states from Florida to Texas, to Tennessee, Georgia and more begin to reopen their restaurants, we asked a handful of distributors what they’re seeing as the summer selling season starts.  PEOPLE ITCHING TO COME OUT? We asked how distributors were preparing to help their customers … Continue reading “Prepping for the Inevitable Reopening”

Dear Client: Per an 8-K filed today, Pabst is exercising its option to purchase Molson Coors’s Irwindale, California brewery, “including plant equipment and machinery and the underlying land.” The deal is expected to close in Q4 of this year, “subject to the satisfaction of certain customary closing conditions.” Recall, it was early January of this … Continue reading “Pabst Exercises Option to Buy Irwindale”

Dear Client: We’ve been assured that shortages will be minimal, but several smaller distributors are getting on allocation from Constellation Beers on all 12pkNRs, all 12pk cans (except Corona), 18pks Corona and Modelo NRs, 18pks Modelo cans, 24pk Modelo cans, and 24oz Modelo cans. Regional STZ reps are telling distributors not to put these allocations … Continue reading “Constellation Testing Trust with Analysts and Distributors”

Dear Client: This year people will not be flocking to bars and restaurants en masse to celebrate one of import beers’ largest holidays, Cinco de Mayo.  But Corona is still encouraging people to celebrate the holiday at home. They started airing this “#CincoAtHome” TV spot in late April (it will run through Cinco) encouraging people … Continue reading “Corona #CincoAtHome Virtual Concert Will Benefit Restaurant Employee Relief Fund”

Dear Client: The Seventh Circuit Court just handed down a decision saying that A-B is free to run those (in)famous 2019 Super Bowl ads that called out Miller Lite and Coors Light for using corn syrup, as Molson Coors themselves have claimed corn syrup as an ingredient.  Recall, Molson Coors (then MillerCoors) had contended that … Continue reading “Seventh Circuit Says A-B Corn Syrup Ads Are OK”

Dear Client: There wasn’t much “new” news on yesterday’s Molson Coors earnings calls that hadn’t been covered in the release (although chief Gavin Hattersley admitted that some cans/large packs could be capacity constrained, so watch out for that).  To summarize Q1: It wasn’t a bad quarter; U.S. depletions were even slightly up. But the company … Continue reading “Molson Coors Retooling, Recalculating”

Dear Client: Reporting Q1 results this morning, Molson Coors chief Gavin Hattersley said Coronavirus has “disproportionately” affected them as a company. Despite “mounting confidence and enthusiasm for our plans and for our brands” early in the quarter, the virus changed their landscape, obliterating the on premise.  “Specifically, we estimate that approximately 23% of our 2019 … Continue reading “Molson Coors North America Q1 Brand Volumes Up 0.4%, But U.S. STRs Fall 14% in April”

Dear Client: Lester Jones is hitting the virtual circuit. After presenting a deep dive on the coming economic crisis this past week [see BBD 04-23-2020], the NBWA chief economist was back on our computer screen yesterday highlighting the transformation taking place in the beer industry due to the pandemic. To illustrate these changes, Lester teamed … Continue reading “What’s Eating Up that Lost On-Premise Volume?”

Dear Client: Welp, we told readers it may be imminent, and now it’s come true: PepsiCo and Bang Energy maker, VPX, have “entered into an exclusive alliance for PepsiCo to distribute the portfolio of Bang Energy beverages in the United States,” the companies just announced, as PepsiCo reported Q1 earnings today. This alliance is “effective … Continue reading “PepsiCo and Bang Sign “Exclusive” North American Distribution Agreement, Effective Immediately”

Dear Client: “Fighting a revolutionary war can be … sucky. But do you know how George Washington kept his troops motivated? He made sure his troops had beer,” says actor Paul Giamatti in the latest Coors Light spots, over a series of historical pictures. (True story).  The Great Depression was “pretty sucky too,” says Paul. … Continue reading “New Coors Light Spots Say We #CouldUseABeer In These “Sucky” Times”

Dear Client: Amid all of our coverage of various keg returns programs from many of the largest brewers, many have weighed in. Some distributors believe that covering 50% or even 70% of the FOB cost of kegs isn’t fair, because a brewer has already been paid for that keg. But many brewers (and some distributors) … Continue reading “This Industry Vet Believes Big Brewers Should Offer 100% Credit for Kegs: Here’s Why”

Dear Client: After fielding an hour worth of questions from Wall Street on earnings last week, we hosted a video podcast with Boston Beer founder Jim Koch the following day to ask the real hard-hitting questions, like how does Jim Koch sequester? What he’s been up to? Is your wife tired of you yet? And … Continue reading “How Quarantine Life is Treating Jim Koch”

Dear Client: Whenever the viral spread begins to slow down, it seems that the economic crisis will pick up, NBWA chief economist Lester Jones shared in a BI/NBWA State of the Industry Briefing earlier this week. If there’s any comforting news for our industry as we head into this imminent economic crisis, it’s that alcohol … Continue reading “Lester: On-premise Shut Downs Could Bleed Beer Industry $8 billion Through June”

Dear Client: Yesterday Boston Beer reported another great quarter for depletions — up 36% in Q1. But with current uncertainties, they suspended providing full year guidance.  Indeed, the crisis has been costly for the brewer, which has had to shift more operations to third party brewers as they reduce their own brewery worker capacity for … Continue reading “Could Boston Beer Acquire its Way Into More Capacity?”