Dogfish Head co-founder Sam Calagione has been hitting the road to promote the company’s new year-round offering Citrus Squall, a higher ABV beer-cocktail hybrid, and its spirits-based canned cocktails at retailers across the country.
“Tomorrow when I go out with our distributors, I’m putting equal focus here on our crew drive on Citrus Squall, a beer-cocktail hybrid, as I am on Grapefruit Pomegranate Crush, which is a hybrid of all these culinary ingredients and a distilled spirit, from the same off-centered family.”
As spring resets take hold, those priorities show Dogfish Head’s varied focus in an effort to attract new consumers after a down 2022. Off-premise dollar sales of Dogfish Head’s beer portfolio declined -15.9%, to $57.5 million, while its volume was down -20%, according to NielsenIQ total U.S. xAOC+liquor+convenience data for 2022 shared by Bump Williams Consulting. Those trends have moderated in 2023 as dollars are down -2.1%, while volume is -6.6% through mid-March.
Meanwhile, sales of Dogfish Head’s canned cocktails in off-premise retailers were a bright spot in 2022, albeit at a smaller base. Retail sales of Dogfish Head canned cocktails increased +67.4%, to more than $13.78 million, while volume increased nearly +81%, the firm shared.
On a break from his travels, Calagione shared an update on Dogfish Head’s early 2023 efforts.
Citrus Squall Sold Through Early Inventory
Citrus Squall, Dogfish’s 8% ABV double golden ale and paloma cocktail hybrid, is off to a strong start, Calagione said. Although it is too early in Citrus Squall’s launch to share off-premise data, Calagione offered that the brewery has already sold through its early inventory.
“What I can say with great confidence is every ounce of it we’ve forecasted to sell has sold through thus far,” he said. “So even though the release is only a few weeks in, as a national brewery, we have to make some bets on what we’re producing and inventory and we’re exactly where we wanted to be for forecasts for the launch of Citrus Squall, both ratio of draft and in both 12 oz. and 19.2 oz. cans.”
In feedback from Dogfish Head’s sales force and distributors, Calagione said he’s hearing that retailers are pleased that a national craft brewery’s big innovation bet for the year is not in the IPA space.
“We’re hearing this is hitting exactly where we want to be for innovation and for ABV,” he said.
Early feedback from younger legal-drinking-age consumers during Calagione’s market visits to Hawaii, California and New Jersey in recent weeks is that they’re trying craft beer for the first time after being drawn in by a paloma-style beer.
Citrus Squall 19.2 oz. single-serve cans will be a top-two priority in the convenience channel for Dogfish head this year, he added. The goal is to pair Citrus Squall with 90 Minute IPA (9% ABV) singles in c-stores for a billboard effect.
Additionally, Calagione confirmed Buffalo Wild Wings and several other on-premise retailers are bringing on the brand.
Citrus Squall is also available in Dogfish Head’s latest variety pack, which also features Blue Hen pilsner, SeaQuench Ale and 60 Minute IPA. Over the last three months, Dogfish Head’s variety packs are up around 11%, Calagione said, citing Circana data.
More Canned Cocktail 8-Packs Hitting Retailers
Dogfish Head’s other priority for 2023 are its canned cocktails. Year-to-date through March 18, dollar sales of Dogfish’s canned cocktail portfolio increased +5.2% to more than $2 million, while volume is up +13.1%, according to NielsenIQ data shared by Bump Williams Consulting. Those numbers lag the overall ready-to-drink segment, which is +56.8% in dollars and +62.2% in volume through mid-March, the firm reported.
Calagione expects business to pick up heading into the spring and summer months as Dogfish Head brings additional 8-packs to market.
“We’re really about to put the foot on the gas for Dogfish canned cocktails as just getting to market now is the Crush variety pack and two straight 8-packs,” Calagione said.
Dogfish Head’s original variety 8-pack, Bar Cart (Strawberry & Honeyberry Vodka Lemonade, Blood Orange & Mango Vodka Crush, Blueberry Shrub Vodka Soda, and Cranberry Apple Vodka Mule) will be joined by the Crush variety 8-pack (Grapefruit & Pomegranate Vodka Crush, Blood Orange & Mango Vodka Crush, Lemon & Lime Gin Crush, and Pineapple & Orange Rum Crush), which began shipping a couple of weeks ago.
The company is also rolling out straight 8-packs of Strawberry & Honeyberry Vodka Lemonade and Blood Orange & Mango Vodka Crush to give on-premise retailers interested in can cocktails an option.
To take Dogfish Head’s canned cocktails to the next level, Calagione said the company needs “a warm season with staying in supply.”
“We had some out-of-stocks ahead of Memorial Day last year, and right now our inventory levels are looking awesome as we check in with our distributors and with the ordering schedule that’s in front of us,” he said. “And we need more opportunities to billboard the brand.
“Last year at retail, not only did we have out of stock issues, but we only had one big 8-pack,” he continued. “This year, we’re gonna have four big packs. And the goal is to get at least the two VPs next to each other everywhere, create a billboard both on the cold side and the warm shelf, and then at least one of the 8-packs particularly on-prem, in every market.”
Success for Dogfish Head’s canned cocktails in the Mid-Atlantic and Northeast is getting all four 8-packs into off-premise retailers, Calagione said. West of the Mississippi, success is a pair of the variety packs, he added.
Citing Circana data, Calagione noted that Dogfish Head’s Bar Cart 8-pack is the top-selling canned cocktail 8-pack on the market. The addition of the Crush pack has the company believing it may take over as the top volume package by October.
Calagione also teased a small-batch canned cocktail release that will premiere at the Weekend of Compelling Ales and Spirits festival (May 5-7) that “has terroir of Dogfish but also to my mother country, Italy.”
Catchy Chorus Double IPA to Celebrate Record Store Day
Dogfish Head’s eight-year relationship with Record Store Day will play out with the launch of Catchy Chorus double IPA (9% ABV). The beer’s recipe was constructed around the four so-called “magic chords” (E, B, C# minor and A), which appear in so many popular songs, with hop and grain varieties that share the same letter, including Eureka, Bravo, Calypso, and Azacca hops.
The timing of the release comes as vinyl sales eclipsed sales of CDs as the top-selling physical format for music for the first time since 1987, Calagione said.
“We’re really proud to say this is a trend that we’ve been on for a long, long time, but it’s really starting to gain a lot of traction globally,” he said.
As part of the release, Dogfish Head will be doing a series of events with Brooklyn Bowl locations across the U.S. to promote the launch and Record Store Day.
Mandarin & Mango Crush Fruit Beer, Utopias Barrel-Aged 120 Minute IPA Coming This Spring
Dogfish Head’s spring beer launches will include a fruit beer and a Utopias barrel-aged version of 120 Minute IPA.
Mandarin & Mango Crush (6% ABV) fruit beer is the second release in Dogfish Head’s Off-Centered Art Series. The company compared the beer to a “crush cocktail.” The beer, which was first released in 2022, will return in 6-packs of 12 oz. cans, with artwork by New York-based illustrator, designer and printmaker Natalya Balnova.
Dogfish Head’s partnership with Samuel Adams maker Boston Beer, its parent company, will see the release of Utopias Barrel-Aged 120 Minutes IPA (15-20% ABV), a collision of two of the sibling brands’ most notable offerings.
“Typically, we tend to associate light and fruity beers – like our Mandarin & Mango Crush – with the spring and summer seasons, but there’s always a place for a big, bold sipper – like Utopias Barrel-Aged 120 Minute IPA, even during the warmer times of year,” Calagione said in a release. “With these new product launches and the debut of our Off-Centered Variety Pack, we’re giving folks a whole gamut of drinking options, each of which is uniquely suited to kick off the spring sipping season.”