BEERNET

Dear Client: Constellation Brands announced yesterday that it has purchased a minority stake in TÖST, a company specializing in alcohol-free sparkling beverages.  The brand bills itself as one “created for inclusivity.”  TÖST’s origin story, detailed on its site, says the brand was designed “to fill the immense space when the consumer is looking for more … Continue reading “Constellation Invests in Alcohol-Free Beverage Brand TÖST”

Dear Client: HSBC analyst Carlos Laboy penned a sharp report on ABI yesterday morning, downgrading the company to “hold,” stating the company has “deeper problems than [it] admits.” The longtime analyst of the company believes leadership is not “getting the brand culture transformation right” in the U.S., as evidenced by the current crisis surrounding Bud … Continue reading “Laboy Lobs Lots of Questions at ABI”

Dear Client: “After a successful regional launch, in which two-thirds of buyers were new to the Modelo brand, we’re confident that offering Modelo Oro across the country as the new gold standard for light beer will help us build authentic connections with new drinkers.” Indeed, Modelo Oro ranked number 2 in our proprietary survey of … Continue reading “Distributor Gut Check “

Dear Client: In case (unlike your friendly BBD editors) keeping track of the TTB’s deadlines aren’t something inked in red on your calendar, let us remind you: the public comment period deadline related to the TTB’s proposed beer industry trade practice modernization, spurred by President Biden’s 2021 Executive Order on economic competition, is June 7.  … Continue reading “BA Wants Feds to Go After Big Fish “

Dear Client: The April scan numbers are hot off the press from NIQ.  All numbers for the four weeks ending April 29.  As a benchmark, total beer volumes were down 3.2%, with dollars up 1.8%. VOLUME. A-B volumes were down 12.5%, while Molson Coors was up 7.6% and Constellation up 3.8%.  Bud Light was down … Continue reading “April Numbers Are In”

As Trade Inventories Build Dear Client: In March 2023, imports saw a 6.9% increase, but domestic tax paid shipments dipped by 2.3%, according to Danelle Kosmal of the Beer Institute. Let’s run it back: After months of import volumes bouncing up and down in a jarring manner, growth is back thanks to a 12% boost … Continue reading “Beer Shipments Beating Depletions”

Dear Client: Yesterday, we reported how Modelo Especial now joins Bud Light with a cheek on the top seat in convenience, as each brand held 10.6 dollar share of the channel in the latest four weeks of NielsenIQ data to April 22.  As stated in yesterday’s issue, it’s plausible that Especial could nudge Bud Light … Continue reading “What it Would Take for Bud Light to Lose No. 1 Spot in Off-Premise This Year”

Dear Client: It only took Anheuser-Busch InBev CEO (and former Anheuser-Busch chief) Michel Doukeris a couple of minutes into the Q1 call to address the situation with Bud Light in the U.S.  He addressed it more lengthily than we’ve heard from the c-suite to date, through the three “lenses” of “people, consumers and beer.”  He … Continue reading “Michel Doukeris Addresses Bud Light Backlash”

Dear Client: Anheuser-Busch InBev reported Q1 2023 results today, and before the call, you’d never know they’re dealing with a scandal for their biggest brand in the U.S. (Of course, the Bud Light backlash happened mainly outside of Q1.) Indeed, in some ways, Q1 results were better than the prior quarter. A-B depletions were down … Continue reading “What Scandal? Anheuser-Busch Q1 U.S. Depletions Down 3%, Shipments Down 1.6%”

Dear Client: During Q&A of Molson Coors first quarter earnings call yesterday, many of the same questions were asked in different ways. The most common: How much longer will Bud Light Gate last? Can Molson Coors’ supply endure the increased demand (even into summer)? And how might Molson Coors’ own marketing plans adjust, given the … Continue reading “Bud Light Gate Rules Molson Coors’ Q1 Call”

Dear Client: As BBD readers know, Miller Lite and Coors Light have been up double digits in scans for most of April, together snatching almost all the share that Bud Light has lost in the wake of that brand’s recent controversy.  However, that happened right outside of Q1, which ended March 31.  But Molson Coors … Continue reading “Molson Coors Pulls Out Better than Anticipated Q1 (in the U.S. too)”

Dear Client: Gallo has just announced that its spirit arm, Spirit of Gallo, will acquire the fast-growing/female founded Fishers Island Lemonade canned cocktail brand, where it will join High Noon. Terms were not disclosed. Arlington Capital Advisors advised the seller. Founder Bronya Shillo will remain on board to guide the brand and serve as its … Continue reading “Spirit of Gallo Acquiring Fast-Growing Canned Cocktail Brand, Fishers Island Lemonade”

Dear Client: The shocking deterioration of Bud Light Blue’s market share continued apace through the third week of April — and actually somehow worsened. We’ve never seen such a dramatic shift in national share in such a short period of time.  As we close out April, the controversy has fully entered the meme stage of … Continue reading “Bud Light Demand Continues to Deteriorate”

Dear Client: Boston Beer covered the gamut on their Q1 earnings call (see recap of results here), from the finer points of Truly and Twisted – the former, recently gaining share of seltzer in about half of scanning markets, chief Dave Burwick says; the latter, which the company expects to grow double digits for at … Continue reading “Looking for the Next Big Breakout Brand on Boston’s Call”

(But BUD up too) Dear Client: With all the talk of sales and market share shifts in the wake of the Bud Light / Dylan Mulvaney controversy, we thought we’d check-in on the business metric that “really matters”, and that’s the relative stock performance of the players involved.  Wall Street has been relatively mum on … Continue reading “In Wake of Controversy, Molson Coors Stock Roars”