Anheuser-Busch InBev (A-B) is exploring selling some of its German beer brands, valued at $1.2 billion, Bloomberg reported Monday, citing “people familiar with the matter.”
A-B employs more than 2,000 people in Germany, with brands such as Franziskaner Weissbier, Hasseroeder and Spaten in its portfolio, the outlet reported..
While the move isn’t set in stone, A-B is exploring options with an advisor, as the beer giant is focusing on its beyond beer brands.
Molson Coors To Release Topo Chico Margarita Hard Seltzer Variety Pack
Molson Coors Beverage Company will release a Topo Chico margarita hard seltzer variety pack in 2022.
The 12-pack of 12 oz. cans will feature four flavors: Signature Margarita, Tropical Pineapple, Strawberry Hibiscus, and Prickly Pear. Each offering checks in at 4.5% ABV and 100 calories.
“Most of the prepackaged margarita flavored options out there right now taste artificial and nothing like the actual cocktail,” Matt Escalante, Molson Coors’ senior director of hard seltzers, said in a press release. “With Topo Chico Margarita Hard Seltzer, we’re capturing the complexity of a real margarita in hard seltzer form infused with lime, salt and tequila notes and lightly sweetened with agave.”
This is the second hard seltzer variety pack from Topo Chico. Its original pack includes Strawberry Guava, Tangy Lemon Lime, Exoctic Pineapple, and Tropical Mango.
Molson Coors produces Topo Chico hard seltzer through a multi-year partnership created in 2020 with Coca-Cola, which produces Topo Chico mineral water. For the week ending September 26, 2021, Molson Coors claimed a 6.2% share of the hard seltzer segment in multi-outlet and convenience stores tracked by market research firm IRI. A Molson Coors spokesperson said Topo Chico will be a key part of the company’s goal of gaining 10% share of the segment by the end of 2021.
A-B Says Company Will Renew Hard Seltzer Focus
Brendan Whitworth, A-B’s North America president and U.S. CEO, doubled-down on the world’s largest beer maker’s beyond beer focus over the weekend in a Wall Street Journal (WSJ) report.
Whitworth, who began his position in July, said the brewer is refocusing on broadening its range of hard seltzer and ready-to-drink canned cocktail offerings to succeed in the emerging “fourth category” of offerings.
“I will give us, in terms of progress, a six out of 10,” Whitworth told the WSJ of A-B’s previous hard seltzer attempts. “It is hard to turn a ship around. … You’ve got to bring a lot of people along that have done certain things certain ways for an extended period of time, and that’s not easy.”
A-B was a first mover in the hard seltzer segment with Bon & Viv, originally known as Spiked Seltzer, which A-B acquired from Boathouse Beverage LLC in 2016, and rebranded in 2019. Initially marketed to target female consumers, the company partnered with National Football League (NFL) as its official hard seltzer partner in 2019.
Now, the brand (now Bon V!v) represents just 0.5% of the U.S. seltzer market, with retail sales dropping 70% in the past year, according to Goldman Sachs analyst Bonnie Herzog. Similarly, A-B’s Natural Light hard seltzer — aimed at young legal-drinking-age, budget beer drinkers — makes up 0.8% of the segment, and its sales have dropped 52% compared to 2020.
Whitworth attributed A-B’s previous failures to dominate the segment to the company’s focus on its more traditional beer brands, such as Bud Light. But he told the WSJ that A-B — now led by global CEO Michel Doukeris — is now prioritizing the fourth category.
BPI: September Wholesaler Hard Seltzer/FMB Purchasing Contracts
The National Beer Wholesalers Association’s (NBWA) monthly Beer Purchasers’ Index (BPI) indicates that flavored malt beverages (FMB) and hard seltzers contracted in September 2021.
The overall beer index for September declined to a reading of 55, down from 80 in September 2020. A reading of 50 or higher indicates expansion, while a reading below 50 indicates expansion. This month’s 55 reading “takes the industry back to pre-Covid trends when a mid-50s reading was more typical for this time of year,” the NBWA wrote in a press release.
“However, the components that make up the aggregate BPI reading continue to show very different trends,” the NBWA continued. “Most importantly, the FMB/Seltzer BPI reading took yet another dramatic hit, falling to an unprecedented 40 in September 2021 from 91 in September 2020.”
Imports were the sole segment to expand significantly with a reading of 65, flat to its September 2020 reading of 65.
Premium lights’ expansion reading of 50 was down 24 points from its 74 reading in September 2020, the second sharpest year-over-year decline after FMB/hard seltzer. The premium lights segment has expanded every month in 2021, according to the NBWA.
Premium regulars declined to a reading of 41, down 19 points from a September 2020 reading of 60.
Below premiums declined 21 points from September 2020, to 29 in September 2021.
Craft beer posted a reading of 44, down from 55 in September 2020. September 2021 marked the first month in which craft entered contraction territory in five months.
Cider was in contraction for another month, with a reading of 34 in September 2021, down from a September 2020 reading of 45.
“At-risk” inventory — beer that could go out of code soon — across nearly all segments posted readings below 50, which indicates “continued supply contractions in the distribution industry heading into the fourth quarter of 2021,” the NBWA wrote. The only segment to buck that trend is FMBs/hard seltzers, which posted an at-risk inventory reading of 59, indicating excess inventory at wholesalers’ warehouses.
The September 2021 BPI was released during the NBWA’s annual conference. In his opening remarks, NBWA chairman Pat Blach pointed out that the BPI shows that “NBWA distributors are the first to know where the market is headed.”’
“For example, this past June, the FMB/seltzer index saw its single largest drop ever,” Blach said, referring to the hard seltzer segment’s slowdown this summer. “Distributors knew about this trend well in advance, before many interested parties in the industry, including the national media or Wall Street analysts.”
NACS: U.S. C-Store Sales Could Surpass Pre-Pandemic Levels
Retailers are optimistic about 2021 convenience store (c-store) sales, with a majority expecting sales to top 2019 numbers, according to a September survey by NACS, a global trade association representing the convenience and refueling retailers.
Of the 61 retailer members surveyed (representing 1,525 stores), three in four (74%) said they expect 2021 c-store sales to surpass 2020, while 67% expect in-store sales to also pass pre-COVID-19 pandemic sales levels from 2019.
Meanwhile, only 11% of retailers expect sales to be below 2020, and 13% expect it to be below 2019.
Sales are being driven by the return of morning customers. More than half of retailers (53%) said morning sales increased this year compared to 2019, while 47% said lunchtime sales increased.
With sales increasing, 75% of surveyed retailers said they have concerns of labor shortages and finding qualified candidates. Additionally, 60% expressed concern over supply chain shortages.
Constellation Signs Multi-Year Partnership with the College Football Playoff
Constellation Brands has signed a multi-year partnership to make Modelo the official beer sponsor of the College Football Playoff (CFP), the annual postseason tournament for NCAA football.
With the partnership, Modelo will have rights to the CFP marks/IP, and marketing exclusivity on-site during the CFP national championship weekend and New Year’s Six games (the Rose Bowl, Sugar Bowl, Orange Bowl, Cotton Bowl, Peach Bowl, and Fiesta Bowl), according to a press release.
The news comes one month after Constellation signed a multi-year partnership with the NFL’s New York Jets and New York Giants, and MetLife Stadium. Modelo Especial was named the official beer sponsor of the New York Giants, while Corona Extra was named the official beer sponsor of the New York Jets.
Massachusetts Brewpubs Ask to Distribute Small Orders Without Wholesalers
Massachusetts brewers and brewpub owners testified before the Joint Committee on Consumer Protection and Professional Licensure last week and expressed support for a bill that would allow brewpubs to directly sell up to 50,000 gallons of beer without the need of a third-party distributor.
Introduced by Rep. Jonathan Zlotnik, D-Gardner, the bill would apply to sales in other states, territories, and countries, and would also allow brewpubs to sell bottled beer to-go, reported State House News Service.
Owners expressed the flexibility the bill would allow for them to make small local deliveries without incurring extra costs from working with a wholesaler to make small drops of beer to local retailers.
Sam Hendler, co-owner of Framingham-based Jack’s Abby Craft Lagers and president of the Massachusetts Brewers Guild, told the News Service that the bill would give these small brewers “additional access to the marketplace and an easier time to conduct their business.”
Hendler previously helped successfully negotiate franchise law reform with distributors during the last legislative session. The new law allows a brewer producing under 250,000 barrels a year to end its relationship with a distributor without being required to show cause, as long as the brewer pays fair market value for the brand and buys back the wholesaler’s inventory.
Hard Tea Maker Owl’s Brew Completes $9 Million Series A Funding Round
Stamford, Connecticut-based sparkling hard tea maker Owl’s Brew announced it secured $9 million in Series A funding last month.
The funding round, led by Cincinnati, Ohio-based huge fund Formidable Asset Management, also included investment from Cambridge SPG, Connecticut Innovations, and Tidal River, as well as TV personality and Owl’s chief brand officer Jeannie Mai, British director Sam Taylor-Johnson, and model and actress Keleigh Sperry Teller, among others, according to Forbes.
The funding will be used primarily for distribution expansion, as well as new marketing initiatives and new hires, reported Finsmes.
Owl’s Brew initially launched in 2015.