21st Amendment Transforms San Leandro Facility into Contract Operation
21st Amendment Brewery has “reimagined” its 120,000 sq. ft. production facility in San Leandro, California, into a canned beverage co-packing facility capable of producing beer, non-alcoholic beer, FMBs, seltzers, canned cocktails, energy drinks, juices, sodas and more, the company announced this week.
The facility can produce batches from 100 to 500 barrels and has 300,000 barrels of annual capacity. The plant is also capable of producing 12, 16 and 19.2 oz cans and variety pack configurations from 4 to 30 cans. A tunnel pasteurizer will be operational by Q4 2023.
“When we first began packaging our beer almost 15 years ago, we employed a co-pack facility to help us scale and grow,” 21A co-founder and COO Nico Freccia said in a press release. “We have worked with several of the biggest and most experienced co-pack facilities across the country and so we feel like we know a thing or two about co-packing. And now we’re excited to be able to invite new partners to our San Leandro facility.”
21st Amendment was the 42nd largest Brewers Association-defined craft brewery by volume in 2021. The brewery’s production declined -21%, to 62,843 barrels, in 2021. After first crossing the 100,000-barrel mark in 2015 and peaking at 112,854 barrels in 2018, the company’s output declined three straight years (-10% in 2019, -21% in 2020, and -21% in 2021). Production numbers for 2022 have not yet been released.
Molson Coors Follow Up: Michelle St. Jacques’ Salary, Pete Marino’s End Date
After announcing an executive and operations shakeup earlier this week, Molson Coors detailed compensation for new chief commercial officer Michelle St. Jacques and offered details of its upcoming separation with president of emerging growth brands Pete Marino.
As part of St. Jacques’ promotion from chief marketing officer to CCO, she will receive a gross annual salary of $710,000. She is also eligible to take part in the Molson Coors incentive plan, with a target annual bonus of equal to 90% of her eligible earnings. St. Jacques is also eligible to participate in Molson Coors’ long-term incentive plan, with a target grant date value of $1.5 million.
Marino is expected to finish his tenure with Molson Coors on April 30. The company expects to enter into a severance agreement with Marino, but offered no details of that package.
Olde Mecklenburg Brewery to Invest $18M in 3 New Charlotte Locations
The Olde Mecklenburg Brewery (OMB) plans to invest more than $18 million over the next two years in three new facilities around its home region of Charlotte, North Carolina, the Charlotte Business Journal reported.
The first facility is already under construction in Charlotte’s Ballantyne district. The location will feature a 14,000 sq. ft. dining area, 7,000 sq. ft. outdoor patio space and 1-acre biergarten, making it the largest brewery in Charlotte, according to WCNC Charlotte. The facility – which will be OMB’s second taproom/biergarten – will be the anchor tenant of a mixed-use development, built on land that was previously a golf course, and is expected to open in early 2024. Production will remain at the company’s existing brewery.
The second new facility will be in Mount Holly, and is expected to open later in 2023. OMB has purchased 2 acres of land for the project and have committed to building an at-least 5,000 sq. ft. facility, but details of the project are still in the works, OMB founder John Marrino told the Business Journal.
“We had to revisit things because the costs have gone way up,” Marrino said. “Design work continues on that work.”
The third and final project will be a brewery and biergarten in Cornelius and will eventually be the largest location of the three, Charlotte Stories reported. The location will be the anchor tenant of a 24-acre mixed-use project which will include 398 apartments and 50 townhomes.
The large Charlotte investments come as the company tones down its “Charlotte-centric” approach to distribution and packaging. The company refreshed its packaging last month, toning down its references to Charlotte to appeal to a broader base, and aligned with the Anheuser-Busch network throughout North Carolina to achieve statewide distribution for the first time.
“Now that we’ll be statewide in North Carolina, a less Charlotte-centric approach makes sense, ” COO Jim Birch told Brewbound. “But at the same time, we are doubling the investment in our hometown.”
OMB is projecting double-digit production growth in 2023 after a flat 2022. The company increased production volume +5% in 2021 to 21,500 barrels, according to the Brewers Association.
“And 20-30% is very optimistic, but we’ve seen other breweries refresh like this,” Birch said. “Based on the preliminary feedback that we’ve gotten from the wholesalers and the key accounts, we’re getting really excited.”
Previous Darwin Brewing Owner Buys Brewery Back from Big Storm Brewing
Darwin Santa Maria, one of the original owners of Darwin Brewing, has bought back the Bradenton, Florida-based brewery, less than two years after it was acquired by Clearwater, Florida-based Big Storm Brewing.
Santa Maria, an award-winning chef, plans to open a new Darwin Brewing facility in Sarasota in late 2024. The facility will feature a full-service restaurant, brewery and distillery as well as soccer fields and a live music stage, according to a press release.
Until the new facility is open, Darwin will produce “small test batches” of new beers “off-site,” which will be served at Santa Maria’s brewpub restaurant Almazonica Cerveceria.
Financial details of the acquisition were not released.
“I’m thrilled to be back at the helm of Darwin Brewing and can’t wait to share my passion for great beer and delicious food with our customers,” Santa Maria said in the release. “This new facility will allow us to really showcase what we can do, and I’m confident that our beers and restaurant will become a go-to destination for beer lovers and foodies alike.”
Darwin Brewing was founded in 2012 out of a Latin American gastropub called Darwin’s on 4th. In 2013, the company expanded into a 15-barrel production facility and taproom in Bradenton. Santa Maria left the company in 2016 to “pursue other ventures,” according to the release.
Big Storm Brewing purchased the assets of Darwin Brewing in late 2021. At the time, the brewery was producing 2,450 barrels of beer annually, according to the BA.
Big Storm Brewing itself opened its fifth location last month. The 11,000 sq. ft. taproom and restaurant is located in the Tampa neighborhood of Ybor City. The brewery produced 7,250 barrels of beer in 2021, a +12% increase year-over-year after a -19% decline in 2020 during the COVID-19 pandemic.
CGA: On-Premise Velocity +7% YoY Driven by Increased Visitations and Check Value
Total U.S. on-premise sales velocity was up +7% in the week ending February 25 versus the same week in 2022, according to CGA, a NielsenIQ on-premise data firm, in its latest On Premise Impact Report.
The velocity increase is partially due to a +6% increase in check value year-over-year (YoY), as inflation continues to cause price increases, but also due to “an uptick in visitation level,” according to CGA.
The week followed a strong on-premise performance from Valentine’s Day (February 14) in the week ending February 18. Valentine’s Day caused a +132% increase in sales velocity versus an average Tuesday in 2023. Traffic (+98%) and check value (+17%) both increased versus an average Tuesday, with food-led outlets recording a +137% increase in velocity and drink-led venues recording a +51% increase.
“Unsurprisingly, eating-led outlets benefitted from both the boosts to traffic and check value seen across the country this Valentine’s Day,” Andrew Hummel, CGA client solutions director, North America, said in the report. “The fine dining channel was the popular choice by consumers – experiencing its biggest day of the year so far (+159% velocity vs. the average Tuesday).”
The holiday uptick resulted in week-over-week (WoW) declines in the latest week (ending February 18), with sales velocity declining -8%, following “a similar pattern to previous years.” Sales velocity declined WoW in all five key states observed by CGA: California (-12%); New York (-9%), Texas (-8%), Florida and Illinois (both -5%).
Illinois (+14%), Texas (+11%) and New York (+6%) each recorded a YoY increase in velocity versus the same week in 2022, while Florida and California each recorded a -1% decline.
Frieda Maisel Dies at Age 95
Frieda G. Maisel, former owner of Mobile, Alabama-based Gulf Distributing Company died last week, shortly after her 95th birthday.
Maisel purchased what would become Gulf Distributing in 1973, becoming “the first woman to own a beer distributorship outright and not through inheritance,” Rebecca Maisel, Maisel’s granddaughter and secretary, SVP and general of the National Beer Wholesalers Association (NBWA) shared during the NBWA’s annual conference in October.
During the conference, the NBWA announced the Frieda G. Maisel Trailblazer Award, an annual award given to “an organization or person that has been a trailblazer for inclusivity in the beer distribution industry.”
Read Maisel’s full obituary here.
42 North Release Listen Local, Drink Local Video
East Aurora, New York-based 42 North Brewing released a video this week paying tribute to the music and beer scene in Buffalo. The video encourages consumers to “Listen Local. Drink Local” by supporting local musicians, clubs and beer companies.
Watch the video, which includes Robby Takac of the Goo Goo Dolls, above.