BEERNET

Dear Client:  It was less than a couple years ago that we asked A-B chief Brendan Whitworth at our Summit if they had given any consideration to divesting some of their craft acquisitions.  He responded quickly with a “No.” Clearly, times have changed since then.  Within the past three months, Anheuser-Busch has divested of numerous … Continue reading “A-B Divests, Tilray Digests”

Dear Client:  The scuttlebutt on the street for a couple of months now has been that Anheuser-Busch’s unloading of Appalachian Mountain Brewery back to its founders would not be the last of its craft divestitures [see CBD 05-18-2023] — especially as other beer companies like Constellation have pursued similar efforts.  And indeed, news is just … Continue reading “Tilray Buys Bevy of A-B Craft Brands”

Dear Client:  Scale matters. The proof: AB Inbev posted the worst quarterly performance in a generation in its largest and most profitable market, and Wall Street … yawns.  Turns out it’s good to be the king, as the world’s largest brewer was able to diffuse the North American results in a sea of global scale. … Continue reading “Wall Street: “Time to Move on” from Bud Light Controversy”

Dear Client:  Anheuser-Busch InBev, Monster, and Ball Corp. all reported earnings yesterday (after Molson Coors, Diageo and Heineken earlier this week). Here are the highlights from the latest calls. MONSTER SHEDS LIGHT ON BANG DEAL  It’s been less than a week since Monster officially closed on its $362 million purchase of energy drink rival, Bang, … Continue reading “Earnings Week: Digging Deeper into A-B, Monster and Ball Results”

Dear Client:  Anheuser-Busch InBev has just reported results for Q2 ’23, the first quarter capturing the unprecedented blow back the company has fielded over having sent online influencer Dylan Mulvaney a can of Bud Light earlier this spring.  Q2 2023, U.S. highlights included double-digit declines for both shipments and depletions – down 15% and 14%, … Continue reading “A-B Q2 U.S. Shipments and Depletions Sag Double Digits, Dragging Global Results”

Dear Client:  While we’ve had a good handle on the gains Molson Coors has made in the off-premise over the past several months, the company’s Q2 earnings call yesterday delivered more color on the increases they’ve made that are harder to nail down – like shelf space gains, tap handle gains, and how they’ve fared … Continue reading “Gavin Gives “Deeper” Detail on Recent Gains”

Dear Client:  Molson Coors is reporting a record Q2 in the U.S., where the company has achieved “its best quarterly brand volume trend since the MillerCoors Joint Venture in 2008, as Coors Light, Miller Lite and Coors Banquet each grew volume double-digits.” They grew volume and net sales in the coveted U.S. market, as well … Continue reading “Molson Coors Reports Best U.S. Quarterly Depletions Trend Since 2008”

July BPI bodes well for Summer beer trends, although below-premiums plummet. Dear Client:  Though the May Beer Purchaser’s Index came in with high inventory levels, June/July BPI trends are looking much better for beer.  Recall, at-risk inventory was 61 back in May – not ideal, as anything over 50 signifies too much. That plummeted to … Continue reading “Beer Rallies in Late Summer”

Dear Client:  Despite double-digit growth for Boston Beer Company’s portfolio darling Twisted Tea in Q2 (for the period ended July 1), similarly trending losses for Truly Hard Seltzer meant Boston’s projected 2023 guidance range of shipments and depletions down 2 to down 8% continues to hold true going into Q3. Boston’s Q2 depletions (for the … Continue reading “Boston’s Plan: “Fuel” Twisted Tea’s Growth, “Moderate” Truly’s Declines”

Dear Client:  How did Boston Beer fare in Q2? Well the horses (Twisted Tea and even Dogfish this time) pulled hard, but the stragglers (Truly, Angry Orchard, Sam Adams and even Hard MTN Dew this time) must have pulled harder.  Boston’s Q2 depletions (for the period ended July 1) were down 3%, with shipments down … Continue reading “Boston Q2: Depletions, Shipments Down Mid-Singles, But Spending for a Better Back Half”

Dear Client:  Anheuser-Busch has just announced “a very difficult but necessary division to eliminate a number of positions across our corporate organization,” per statement from chief Brendan Whitworth. The company positions the moves as “corporate structure changes” that “will simplify and reduce layers within its organization.”  IMPACTS “LESS THAN 2%” OF ITS U.S. WORKFORCE. A-B … Continue reading “A-B Restructuring Corporate Organization”

Dear Client:  The Coca-Cola Company reported earnings yesterday. In stark contrast to Pepsi earnings a couple weeks ago — which didn’t broach Blue Cloud or bev alc for that matter — chief James Quincey did field a question on their foray into bev alc.  Specifically, James addressed Red Tree Beverages (which we and Beverage Digest … Continue reading “Coke Chief: Red Tree a “Technicality” as they Wait for a “Material” Bev Alc Business to Grow”

Dear Client:  Yesterday the Coca-Cola Company confirmed to BBD that they have consented to Bang coming through their system in the U.S. and around the world, which means some beer distributors will have to fork it over. We understand that it is up to each bottler and their agreement with Monster (which of course is … Continue reading “Coke System Springs for Bang”

Dear Client:  The results of the latest Tamarron survey are in, and Boston Beer is once again the top-performing supplier, with an average performance score of 4.12.  “Constellation (CBBD) and Molson Coors (MC) were close behind with scores of 4.08 and 4.06, respectively,” per company. They were the only suppliers to score above a 4 … Continue reading “Boston Once Again Takes Tops in Tamarron Survey”

Does this set a precedent? Dear Client:  That was fast. Late last week the Ninth Circuit Court of Appeals reversed the lower court’s preliminary injunction — which you’ll recall put the brakes on Constellation’s termination of Olympic Eagle — and ruled to vacate on the grounds that Olympic has “not shown a likelihood of success … Continue reading “Court Gives Constellation Free Hand to Terminate Olympic Eagle”