Dutch brewing giant Heineken N.V. reported its first half 2021 earnings today, and its U.S. business division recorded “high-single digit” beer volume growth through the first two quarters of the year.
Heineken USA CEO Maggie Timoney touted the “positive momentum” of the U.S. branch in a statement shared with media outlets.
“We are pleased to see the strong growth to date driven by the Heineken franchise, which grew by a mid-single digit,” she said. “The Heineken 0.0 growth continues to complement Heineken Original growth. Dos Equis also delivered a strong performance with double-digit growth driven not just by strong off-premise results but also the reopening of the on-premise, as well as the successful launches of Dos Equis Lime & Salt, the Dos Equis variety pack, and Dos Equis Ranch Water.
“Additionally, we are continuing our test and learn approach with other innovations, and are continuing to gain distribution with AriZona SunRise Hard Seltzer,” she continued. “We’re confident our plans for the back-end of the year for both our core brands and innovations will help us to continue a strong performance.”
Heineken’s global portfolio grew consolidated volume +8.2% (organic beer volume increased 9.6%), led by growth of Heineken Original, which increased volume 26.8% in the second quarter. Through the first six months of the year, Heineken’s brand volume increased 19.6%, which the company said is a 16.7% increase compared to the same period in 2019. Heineken 0.0 increased volume nearly 40% through the first half of the year.
Worldwide net revenues increased 14.1% to more than $11.8 billion, while operating profit increased 109.3%
Even with the “strong” first half results, Heineken N.V. chairman and CEO Dolf van den Brink offered words of “caution” in a statement.
“Firstly, COVID-19 remains a factor, with the biggest impact currently in key markets in Asia and Africa. Secondly, we see a rise in commodity costs, which, at current levels, will start affecting us in the second half of this year and have a material effect in 2022,” he said. “Overall, we expect full year financial results to remain below 2019.”
The only mention of Heineken-owned, U.S. craft brewery Lagunitas in a press release was of its IPNA non-alcoholic offering supplementing the growth of Heineken 0.0.
Molson Coors to Launch Whiskey Brand
Molson Coors Beverage Company announced plans today for the release of its first full-strength spirits brand, Five Trail by the Coors Whiskey Co. name, according to the Molson Coors Blog. The brand is slated to hit retailers on September 1 via Molson Coors wholesalers in Colorado, Georgia, Nevada, and New York.
The 95-proof whiskey is “distilled, blended and bottled in partnership with Bardstown Bourbon Co. in Bardstown, Kentucky,” and “made from a blend of Colorado single-malt whiskey and three bourbons, cut to proof with Rocky Mountain water,” the company’s blog reported.
750 mL bottles are expected to retail for $59.99.
Tivoli Brewing Appoints New CEO
Tivoli Brewing is undergoing another leadership change. The Denver craft brewery has named Ari Opsahl as its next CEO, taking the reins from Salomon Marcos Garza Jr., according to the Denver Post.
Garza, whose father leads GD Holdings, the real estate group that owns Tivoli, had led the company since January.
Opsahl previously spent seven years at Anheuser-Busch InBev, last serving as vice president of western U.S. wholesale operations, overseeing A-B’s wholly owned wholesalers, according to his LinkedIn profile. He comes to Tivoli from data firm Plutoshift where he served as VP of business development.
“After meeting Ari, I recommended to the board that he take over my role,” Garza told the Post. “Because of my experience, my age and my connections, which is going to take a couple of years to build, I was more than happy to step down.”
Garza had replaced CEO Ken Hehir in January. He will now become operations manager, effective August 9.
Garza told the Post that Tivioli has produced about 6,000 barrels of beer year-to-date. Tivoli’s taproom is expected to reopen on August 16 after being closed since November 2020.
Crazy Mountain Moves to Smaller Facility
Crazy Mountain Brewing Company has moved out of its 42,000 sq. ft. production facility in Denver’s Baker neighborhood to a 4,200 sq. ft. taproom space that formerly housed Alpine Dog Brewery, according to the Denver Post.
Crazy Mountain allowed its lease at the previous facility, where it had 100,000 barrels of annual capacity, to expire.
“I think it was a very challenging expectation to think that in five years or less we were going to fill the capacity of that brewery,” CEO Barry Watkins told the Post. “It’s a relief not to have to deal with the maintenance, upkeep and overall physical building anymore.”
Crazy Mountain is attempting to purchase Alpine Dog’s brewing equipment due to the landlord of its previous facility owning the equipment there. In the meantime, Denver-based contract brewing facility Sleeping Giant will produce six offerings for Crazy Mountain.
As for Alpine Dog Brewery, the company plans to relocate, with hopes of reopening in December, according to Denver alt-weekly newspaper Westword.
Treasury Dept. Seeks Public Comment on Competition in Beer, Wine, Spirits
The U.S. Department of the Treasury is seeking public comments on the “market structure and competition” in the U.S. beer, wine and spirits industries in the wake of President Joe Biden issuing an executive order on the promotion of competition within several industries.
The Treasury is asking for comments from industry insiders, as well as “consumer groups, public interest groups, and interested private parties.”
Those comments will help inform a report the Treasury is expected to create along with the attorney general and chair of the Federal Trade Commission.
That report is supposed to assess “the current market structure and conditions of competition [for beer, wine, and spirits], including an assessment of any threats to competition and barriers to new entrants.” It will also examine “unlawful trade practices; patterns of consolidation in production, distribution, or retail markets,” as well as “any unnecessary trade practice regulations of matters such as bottle sizes, permitting, or labeling that may unnecessarily inhibit competition.”
The Treasury will be accepting comments electronically here until August 18.
FIFCO USA Investing $18 Million to Expand Seagram’s Escapes Production
FIFCO USA is investing $18 million to expand production of its top-selling brand, Seagram’s Escapes, according to the Rochester Democrat Chronicle.
The company is in the process of installing eight 2,000 barrel storage tanks at its Genesee Brewery as part of a $5 million investment this year that will be followed by $13 million in the years to come, the Democrat Chronicle reported.
Production of the Seagram’s brand accounted for more than 40% of the volume at the Genesee Brewery last year, the outlet reported.
Jiant Raises $2.3M; The Long Drink Raises $25M
Up-and-coming alcohol brands Jiant and The Long Drink recently completed funding rounds.
Hard kombucha and hard tea maker Jiant has closed on a $2.3 million seed round of funding. Growth equity firm Natureza Growth Partners led the round, with participation from G5 Capital. The funding is earmarked to building national distribution, adding staff, launching new products and increasing its marketing presence.
Jiant’s offerings are distributed in California, Colorado, Utah, New York, Connecticut, New Jersey, Massachusetts, Rhode Island, and Texas, with new markets to follow by the end of the year. The company recently added long-time New Belgium vet Andrew “Mac” MacLeod to lead its national accounts efforts.
Meanwhile, The Long Drink, maker of The Finnish Long Drink, a ready-to-drink citrus soda and gin canned cocktail, has raised $25 million in funding, according to BevNet. The funding round was led by New York-based investment management firm Neuberger Berman.
Actor Miles Teller, DJ Kygo and pro golfer Ricky Fowler have all invested in the project. Other backers include Founders Brewing Company co-founder Mike Stevens; pro golfers Justin Thomas and Kramer Hickcock; tennis players Elliot Tebele and Reilly Opelka; NFL players Dalvin Cook and Braxton Berrios; and film director Peter Farrelly, among others.