Firestone Walker’s 2024 Plan: Unleash 805

Firestone Walker leadership shared their vision for 2024 with their wholesaler partners while also providing a business update of 2023 so far.

The lion’s share of the meeting with its distributor partners was centered around the Paso Robles, California-headquartered craft brewery’s top brand, 805.

In 2024, Firestone Walker’s priority is to “unleash 805,” while also developing the Cali Squeeze brand that was acquired from SLO Brew in 2021; reinvigorating the Mind Haze IPA franchise; and maintaining sight on the company’s artisanal roots.

New Firestone Walker chief sales officer Tony Amaral said unleashing the 805 brand family – 805 Blonde Ale and 805 Cerveza – means expanding distribution, growing share and building the brand.

Firestone Walker has positioned 805 as more than a craft brand. Firestone Walker CMO Dustin Hinz called 805 “a multigenerational” and “culturally immersive brand.”

Firestone Walker has worked to make the brand culturally relevant through film and ambassador marketing programs. The company has invested in “feature-length documentaries” that showcase professional athletes and “voices that you can connect with in a really interesting way.” He called the films “destination viewing” that get Firestone Walker into consumers’ living rooms and onto televisions via YouTube.

Next year, the goal is for those films to receive 20 million views and deliver more than 100 million media impressions as the programming extends beyond action sports into art, music and culture.

The programming is part of a bigger strategy to position the 805 brand family to compete within the broader beer space as a challenger in the domestic and premium segments with 805 Blonde and for Mexican lager drinkers with 805 Cerveza, Hinz and Amaral said.

The goal for 2024 is to increase 805’s physical distribution to 70% in large format and 60% in small format stores across the U.S., Amaral said. The company also is aiming to increase 805 Cerveza’s distribution in all packages to 70% of 805 Blonde. Additionally, the company wants to increase 805 Blonde’s presence in on-premise accounts.

2024 is about “focusing and closing the gaps,” not extending the brand with new styles, Hinz added.

Part of the focus next year is to be clear about 805 Blonde’s style, adding “California blonde ale” to packaging.

“We used to say, ‘It’s a mystery, that’s why 805 is great,’” Hinz said. “Well, you know what? It worked. But to get us to the next level, we got to make some changes.”

Style won’t be the only featured text added to 805 packs. Firestone Walker will be adding callouts to “highest quality” and “made in California” on packaging for both 805 Blonde and 805 Cerveza.

The biggest change for 2024, Hinz said, is 805 Cerveza’s move to clear bottles. Months of consumer testing showed that more than 70% of consumers preferred the clear bottles to amber bottles and they improved purchase intent by four times.

“We think this is going to be a move that’s really going to help us connect with new drinkers,” Hinz said.

Additionally, 805 Cerveza packaging will include calorie counts (110 per bottle), as well as increased font size of “Brewed with Lime” to help differentiate it from 805 Blonde.

805 Blonde and 805 Cerveza Top 2 24 oz. Singles in California

Firestone Walker’s blueprint in convenience is to drive distribution of 805 Blonde and 805 Cerveza singles, back them up with 6- and 12-packs, and support 3-pack cans. The plan also calls for implementing “two-for” pricing.

24 oz. singles are the No. 1 singles package in total beer, accounting for 60% of single sales (+11% year-over-over), Amaral shared. In California, 805 Blonde and 805 Cerveza are the top two craft 24 oz. singles. 805 Blonde is also a top 30 overall 24 oz. single in California c-stores.

Meanwhile, the 805 Blonde quart is the No. 10 overall quart (+90% YoY) and 805 Cerveza is the No. 12 overall quart (+110%) in California c-stores.

805 is also the No. 12 overall 3-pack in California c-stores (+5.5% YoY).

Nick Firestone, chief operating officer, called the convenience channel Firestone Walker’s “single largest untapped opportunity.” The company’s share in the convenience channel is down -0.69% in California, Arizona and Nevada top states and -0.17 across the total U.S.,

However, the company is gaining share over the last 13 weeks in both its core states +0.02% and total U.S. +0.06%. Those trends have accelerated over the last four weeks, up +0.24% in California, Arizona and Nevada and +0.13% in the U.S.

“We’re encouraged about what we’re bringing to market in 2024, we’ve got a great singles portfolio, and we think we’ve got the right plan to continue to win and convenience,” Firestone said.

Differentiating 805 Tap Handles in Bars and Restaurants

In 2024, Firestone Walker is aiming to close the gap between 805 Blonde and 805 Cerveza tap handles. As part of that program, the company is distinguishing 805 Blonde and 805 Cerveza with black and white tap handles.

Hinz noted that the company was reluctant to add the black handles, but when they tested them, they saw an +18% volume lift in those accounts.

Amaral added that Firestone Walker has picked up additional on-premise tap handles recently due to “the unfortunate situation with one of our competitors.”

“We’re really hoping these handles stick,” he added.

805 Blonde No. 1, 805 Cerveza No. 10 in California; 805 Blonde Top Craft in California C-Stores

Amaral shared bonafides for each of the beers:

805 Blonde has been the No. 1 craft beer in California since 2017;
805 Cerveza is the No. 10 craft beer in California;
805 Blonde is the No. 1 craft beer in California c-stores and is 20% larger than No. 2, Sierra Nevada’s Hazy Little Thing;
805 Blonde is a top 10 craft brand across the U.S., with distribution in just 16 states;
805 Cerveza is a top 45 craft brand in the U.S., with limited distribution;
805 Blonde 12-packs are the No. 1 craft SKU in California, and a top 15 overall 12-pack nationally;
805 Blonde is also the No. 2 craft brand in Nevada and No. 3 craft brand in Arizona, and growing in both states;
805 Cerveza is a top 10 craft brand in Nevada and a top 20 craft brand in Arizona.

Digging into data from grocery chain Kroger, 20% of 805 Blonde’s volume comes from Hispanic households. The 805 drinker ranges from 35-74 years old, with buyers 44% male and 56% female, with income above $150,000 annually, Amaral shared.

Firestone Walker sources 27% of its volume in Kroger from Hispanic consumers, Amaral continued.

Appealing to Hispanic and Latino Consumers

A big part of the strategy for both 805 beers will be appealing to Hispanic and Latino consumers. Hinz shared that 30% of 805 drinkers identify as Hispanic and Latino.

Amaral added that 20 million consumers in Firestone Walker’s core markets fit the Hispanic and Latino identity. Additionally about half of the new legal drinking age consumers entering the beer category in 2030 will be of Hispanic descent, he said.

So far, the strategy is working: