CPI for Beer At Home and Away From Home Outpaces Inflation in March vs. 2022
The Consumer Price Index (CPI) for beer both at home (+6.1%) and away from home (+5.5%) outpaced overall inflation (+5%) in March 2023 compared to March 2022, according to the U.S. Bureau of Labor Statistics (BLS).
The CPI for all items has continued to slow, as last month it was +6% compared to February 2022.
“This was the smallest 12-month increase since the period ending May 2021,” BLS noted in its monthly summary.
At +3.9% compared to the same month last year, the CPI for overall beverage-alcohol at home was driven up by the beer category’s +6.1% increase. The CPI for spirits at home increased +2.1%, while wine at home increased +2.4%.
Rising costs for bev-alc away from home paint a different picture. The CPI for the overall category increased +5.8%, driven by wine (+6.9%). Both beer (+5.5%) and spirits (+5.1%) away from home lagged behind overall inflation.
Brewers Association (BA) chief economist Bart Watson called beer’s CPI “still high in historical terms” and noted “seasonal adjusted pieces haven’t really moved since December” in a tweet.
The CPI for beer at home reached its highest point of +9% in January.
Constellation Brands Records $66.5 Million Impairment Charge
Constellation Brands recorded an impairment charge of $66.5 million pertaining to what’s left of its craft beer division in its fiscal year 2023 fourth quarter, according to its most recent 8-K form filed with the U.S. Securities and Exchange Commission (SEC).
“We recognized trademark and other long-lived asset impairment losses in connection with certain continued negative trends within our craft beer business,” Constellation wrote.
Constellation’s remaining craft brands are Funky Buddha, which it acquired in 2017, and Four Corners, which it acquired in 2018. It acquired Ballast Point for $1 billion in 2015, but sold the brand and its properties to Kings & Convicts for $41.1 million in 2019.
The company noted a $6 million impairment charge to Four Corners’ trademark, previously valued at $10 million, in its Form 10-K annual report to the SEC in April 2021. Constellation recorded similar impairments to Ballast Point’s trademark before the sale of the brewery. In FY2019, Constellation wrote down the value of the Ballast Point trademark from $136 million to $28 million. Constellation again wrote down the value of the Ballast Point trademark by $11 million in FY2020, dropping the value to $17 million.
The $66.5 million impairment charge most likely pertains to Funky Buddha, the acquisition price of which is part of $149.1 million reported in Constellation’s 2018 annual report for the purchase of both Funky Buddha and Schrader Cellars.
Funky Buddha’s output increased +15%, to 43,500 barrels, in 2021, the most recent year for which data is available from the BA.
Harpoon to Expand Rec. Weed THC-Infused Beverage to Maine
Less than two months after debuting Rec. Weed in its home state of Massachusetts, Harpoon Brewery is bringing the non-alcoholic THC beverage to recreational cannabis dispensaries in Maine.
“The reaction to the Massachusetts launch of Rec. Weed was overwhelmingly positive and we’re looking forward to bringing this unique beverage to the great state of Maine,” Harpoon co-founder and CEO Dan Kenary said in a press release.
To create the drink, which contains 10 milligrams of THC per 12 oz. bottle for the Maine market, Harpoon has extended its partnership with Novel Beverage Company, a THC-infused drink maker with production facilities in Scarborough, Maine, and Salisbury, Massachusetts.
“Novel Beverage Co. has been an incredible partner for us with their deep knowledge of the THC space and has allowed us to combine our expertise to create a one of a kind offering with Rec. Weed,” Kenary said.
Rec. Weed, whose name is a play on Harpoon’s Rec League brand family of beers, features passion fruit puree and green tea and is steeped with Citra and other West Coast hops before being carbonated, according to the release.
The beverage will be available at recreational dispensaries in Maine in 12 oz. bottles with a suggested retail price of $7. The offering is sold in 12 oz. slim cans in Massachusetts.
Due to state regulations, Rec. Weed must be produced in each state where it is sold, as cannabis products cannot cross state lines, a Harpoon spokesperson told Brewbound. Novel’s facilities have different packaging capabilities in each state.
Lazy Magnolia Brewing Sold to New Owners
Kiln, Mississippi-based Lazy Magnolia Brewing is under new ownership, as the brewery’s founders have agreed to sell to Jason Anderson and Ryan Bowen, according to a report from WLOX.
“There’s a lot of excitement here about the new opportunity this provides both for us and for Lazy Magnolia,” Anderson told the local TV station. “We look forward to building on the brewery’s strong foundation and continuing to impress our customers with exceptional beer and by expanding our product offerings.”
When co-founders Leslie and Mark Henderson opened Lazy Magnolia in 2005, months before Hurricane Katrina devastated the Gulf Coast, it was the first packaging brewery to open in Mississippi since prohibition.
Anderson and Bowen plan to invest $1 million to renovate the facility and equipment to ramp up the brewery’s packaging capabilities, Anderson told WLOX. The sale to Anderson and Bowen took shape in December, and the Hendersons guided them through a three-month ownership transition, he said.
“Old owners have been great to stick around and help us grow and continue to work on the products and that together,” Anderson said.
Lazy Magnolia’s output declined -13%, to 7,392 barrels in 2021, the most recent year for which BA data is available.