Artisanal Brewing Ventures’ (ABV) key brands are trending up as summer begins.
Year-to-date (YTD) through June 4, the craft brewery platform’s off-premise sales (+13.1%) are outpacing the beer category (+3.8%) and the craft segment (-1.4%), CEO John Coleman shared, citing data from market research firm Circana.
Coleman credited ABV’s long-standing strategy centered around “core brands” and “core markets.” Home for ABV’s brands – Victory Brewing in Pennsylvania, Southern Tier and Sixpoint in New York, and Bold Rock in Virginia — covers the East Coast, where more than half of the industry’s total volume is concentrated.
The strategy is paying off so far. Off-premise dollar sales of the Victory (+9.8%) and Southern Tier (+17.6%) brand families are up YTD through mid-May, with both craft breweries ranking among the top 20 best-selling craft breweries in the off-premise, at No. 13 and No. 20, respectively, per Circana data shared by Coleman. Meanwhile, Bold Rock is the second best-selling hard cider company through mid-May, with dollar sales up +18.9% YTD, per Coleman.
ABV’s franchise brands are posting double-digit off-premise dollar sales gains through mid-May:
- Victory’s Monkey family (+13.2%)
- Southern Tier’s 2XIPA family (+38.2%)
- Bold Rock Apple family (+16.3%)
- Southern Tier Overpack’d IPA variety pack (+12.4%).
Total ABV depletions are up +3%, growing in the off-premise (+2.9%), on-premise (+3.3%) and in chain stores (+4.6%), according to VIP depletions YTD through May, shared by Coleman. The company’s points of distribution in chains are up +16.7%.
Coleman shared a few of the company’s successes through the first half of 2023.
19.2 oz. single-serve cans: Coleman described ABV’s single business as “off to the races.” Singles are the company’s biggest growth package, up +87.3%, Coleman shared, citing VIP data. The goal is to get a billboard on shelf for ABV’s brands, although distribution has proven challenging, Coleman said.
Coleman believes some of the shift to singles is being driven by consumers trading away from 6-packs due to the economy.
Brand extensions: ABV has been deliberate in its brand family building efforts. The Victory Monkey brand family has been the company’s strongest and best traveling brand, and the company has extended the family with another brand in distribution again this year, Coleman said.
Juicy Monkey hazy imperial IPA (9.5% ABV) launched this year, joining last year’s roll out of Berry Monkey fruited sour tripel. They join the original, Golden Monkey Belgian-style tripel, and Sour Monkey tripel.
IPA was a logical next step for Monkey, with the brand entering six markets in 6-packs and draft. Coleman expects Juicy Monkey to be within Victory’s full footprint by October.
Meanwhile, Berry Monkey sold triple its forecast last year, starting with draft and one package, Coleman said.
For Southern Tier, the priority is the 2X series of IPAs. The company added 2X Haze last year and introduced 2X Juice Jolt this year, playing in the hazy imperial fruited IPA style New Belgium’s Voodoo Ranger Juice Force hazy IPA successfully established last year on a national basis.
Coleman described the early returns for 2x Juice Jolt as “gangbusters” sales.
Bold Rock is locked on its core brand Apple cider and its seasonal, which are growing +2% and +57%, respectively, YTD. The introduction of a Bold Rock Imperial Hard Cider (8.2% ABV) is also off to a strong start.
Sixpoint can changes: Sixpoint transitioned away from slim cans in Q1 to the more traditional 12 oz. cans. The move has led to “better pack out on the shelf,” allowing for a two-high stack on the shelf and better merchandising, Coleman said.
For Sixpoint, the focus is on long-time core brands The Crisp pilsner and Resin imperial IPA, the latter of which is under consideration for additional offerings, Coleman said.
RTDs: Between Southern Tier and Bold Rock, ABV expects to sell around 120,000 cases of ready-to-drink offerings this year, Coleman shared. He described the canned cocktail business as “kind of a slow build, but as we see that space kind of grow a little bit, we’ve got some great offerings in there.”
Coleman said he’s watching state level legislative efforts led by spirits producers to gain market access and lower excise taxes for spirits-based canned cocktails.
Taproom business: ABV’s taproom business has returned to 2019 levels, Coleman said. However, the overall on-premise business hasn’t bounced back to pre-pandemic levels.
On Consolidation … Consolidation within the craft brewing industry has picked up with several craft-on-craft deals. ABV was among the first craft brewery platforms to form when Ulysses Management merged Southern Tier (acquired in 2014) and Victory Brewing under the ABV banner in 2016.
ABV added Sixpoint in November 2018 and Bold Rock Hard Cider in November 2019. However, the firm has stood pat in the years since, despite receiving inbound interest from many smaller breweries under 10,000 barrels, many of which are not profitable.
“If you’re not doing 100,000 [barrels], we’re probably not interested,” Coleman said.
Nevertheless, ABV will “always be in the market for the right opportunity,” Coleman shared. He pointed to the additions of Bold Rock and Sixpoint as acquisitions that each brought value adds to ABV.
“Really, what we look at it – and the 100,000 may be a slight exaggeration – but it’s gotta be something of size, and it has to have meaningful brands that complement our portfolio,” he said. “I don’t think any of us just need another IPA for the sake of another IPA when we’ve got plenty across our portfolio.”