Heineken has entered the increasingly crowded hard seltzer segment with two different brands in different parts of the world.
In Mexico and New Zealand, Heineken has launched Pure Piraña, a hard seltzer that checks in at 100 calories and 5% ABV. Flavors offered vary by country. Mexican consumers can choose from Grapefruit, Peach and Red Fruit. New Zealand will receive Raspberry and Lime. Pure Piraña comes in 330 mL cans.
“We are seeing more and more people look for a low-calorie alcoholic alternative and the result is the rapid growth of the hard seltzer category,” Heineken chief commercial officer Jan Derck van Karnebeek said in a press release. “The launch of Pure Piraña offers a way for us to meet customers’ evolving needs and explore a new growth opportunity for our business.”
The launch of Pure Piraña by Heineken N.V. comes as Heineken USA releases its long seltzer play Canijilla, a hard seltzer with Mexican-inspired flavors. Canijilla is available in two U.S. markets: San Bernardino, California, and McAllen, Texas. Heineken USA first teased Canijilla during the company’s national sales meeting in October 2019.
“We are offering flavor-seeking consumers a new beverage alcohol alternative to drive incremental sales and profits for retailers,” Heineken USA director of innovation Ryan Webb said in a press release. “Canijilla can broaden the pool of reach by delivering bolder flavor and true Mexican authenticity.”
Canijilla is imported from Mexico and comes in two flavors: Mango Picosito, which is “lightly sweet with a kickoff of spice,” and Limon Pepino, which is “fresh and slightly sour.” Both flavors scored high for purchase intent in pre-launch consumer research — 72% for Mango Picosito and 66% for Limon Pepino. Canijilla checks in at 120 calories and 5% ABV and will be available in 12 oz. 6-pack cans.
Heineken is fairly late to the hard seltzer segment, which reached $3.264 billion in off-premise sales in the 52 weeks that ended August 8, according to market research firm Nielsen, as most large-scale breweries have launched hard seltzer brands, and some offer several in their portfolios.
Canadian Aluminum Tariff Exemption Reinstated
After announcing the end of a tariff exemption for Canadian aluminum last month, President Donald Trump has changed his mind, according to a statement last week from the office of the U.S. Trade Representative.
“After consultations with the Canadian government, the United States has determined that trade in non-alloyed, unwrought aluminum is likely to normalize in the last four months of 2020, with imports declining sharply from the surges experienced earlier in the year,” the statement said.
In place of the tariff, the U.S. has set monthly quotas for non-alloyed, unwrought aluminum imported from Canada:
- September — 83,000 tons;
- October — 70,000 tons;
- November — 83,000 tons;
- December — 70,000 tons.
Six weeks after the end of each month, the U.S. will review aluminum shipments. If shipments exceed 105% of any quota, a 10% tariff will be imposed retroactively for that month and the next month’s shipments will be expected to decline accordingly.
“The United States will consult with the Canadian government at the end of the year to review the state of the aluminum trade in light of trade patterns during the four-month period and expected market conditions in 2021,” the statement said.
E-Commerce’s Potential to Elevate Beer’s Long Tail
Brewers Association chief economist Bart Watson delved into the intersection of e-commerce and the beer industry in a new report.
Social distancing practices put in place during the COVID-19 pandemic have sped up changes to the ways Americans shop, with online shopping increasing in popularity. For beverage alcohol, online ordering has taken several forms: click-and-collect ordering through the websites and apps of traditional brick-and-mortar retailers, ordering directly from breweries’ websites for pickup or home delivery, and e-commerce aggregator apps such as Drizly and Minibar that provide a platform for consumers to connect with retailers.
When digital storefronts replace physical retail environments, the constraints of finite cold boxes and warm shelves fall away, and could make more room than ever for new brands and SKUs, Watson wrote.
“Although digital technology made it easier than ever to find beer information, for the moment, beer distribution and retailing continue to still very much be shackled by the tyranny of physical space – there are only so many SKUs distributors are willing to carry, only so many taps and shelf placements allocated to beer, and only so much beer a local retailer is willing to stock in their store,” he added.
The physical nature of beer and its need to be kept fresh and alcohol’s regulatory restrictions have stymied extreme innovation in beer e-commerce.
“Many of the new digital platforms seem intent to reinforce current systems rather than engage in creative destruction,” Watson wrote. “Delivery apps largely add a fourth tier rather than pushing on existing distribution systems. They make their money as much through advertising and promotion of existing market leaders as they do by leaning in on algorithms to help consumers find new products in the long tail.”
Whether or not the long tail finds its way to digital marketplaces will depend on consumer preference and legislation at the state level, Watson said.
“Even if consumers want more than just the hits, which indie beers they will be offered over the next decade will be decided by statehouses as much as by apps and their own preferences,” he wrote.
Big Boiler Brewing Agrees to Acquire Castle Brewing
Hophog LLC, a business entity owned by the owners of Lowell, Michigan-based Big Boiler Brewing, has acquired Greenville, Michigan-based Castle Brewing Company.
“We are very pleased to be adding Castle Brewing to our family,” Hophog co-owner Brent Slagell said in a press release. “We love Greenville and are looking forward to investing in the community and company.”
Castle Brewing was founded in 2012 as 57 Brew Pub and acquired by investors in 2017, when it was renamed to honor J.R.’s Roller Castle, a rollerskating rink that had long stood on the brewery’s site.
In 2019, Big Boiler produced 253 barrels of beer, according to data from industry trade group the Brewers Association (BA). Castle produced 96 barrels.
Grand Rapids, Michigan-based Small Business Deal Advisors advised Castle Brewing on the sale. Financial terms of the deal were not disclosed.
Figueroa Mountain and Flying Embers Launch Co-Branded Taproom
Two California-based brands are teaming up with a shared taproom in Santa Barbara.
Buellton-headquartered Figueroa Mountain Brewing has invited Ojai-based Flying Embers Hard Kombucha to share its Santa Barbara taproom, known as the craft brewery’s “Funk Zone.”
The joint taproom opens today, but has been in the works for a year, the companies said in a joint press release. Figueroa Mountain president and partner Steve Almaraz and Flying Embers co-founders Bill Moses and Beryl Jacobson forged a relationship while Almaraz was the craft category director at Reyes Beer Division.
“From the start, we felt a shared connection with Steve,” Jacobson said in the release. “He was a tremendous partner to us at the distributor level, and continued to be a trusted advisor and friend after he moved to the supplier side. It was only natural that we continued our partnership and we’re excited to do so in a way that’s both mutually beneficial and progressive for the industry.”
Flying Embers will brew at the Santa Barbara location, which Figueroa Mountain has been in for six years. The brewpub was Figueroa Mountain’s first research and development brewery.
“It is where many of our beers were born and tested,” Figueroa Mountain co-founder and owner Jaime Dietenhofer said in the release. “It is only fitting that we use this location to team up with a great local company and our friends at Flying Embers to not only brew new and innovative liquids but to create a unique taproom experience for all who walk through the door.”
Bud Light Showcases Black Business Owners in Commercials
Anheuser-Busch’s Bud Light brand, the official beer of the NFL, is using the advertising slots it purchases during Thursday Night Football to highlight Black restaurateurs.
The series, titled the Bud Light Thursday Night Shoutout, aired its first video last Thursday during the Cleveland Browns’ season opener and featured Beckham’s B & M Bar B Que, a family-owned southern restaurant in Cleveland.
Anheuser-Busch InBev partnered with filmmaker Jason Harper and Anthony Edwards, co-founder of Black-owned restaurant directory and app EatOkra, to develop the series.
“Making films about members of the Black community during these historic times gives me pride and a profound sense of responsibility,” Harper said in a press release. “I’m encouraged that Bud Light decided to use their national visibility to spotlight these stories that humble us as storytellers.”