D.G. Yuengling & Son’s joint venture with Molson Coors has run into supply issues just weeks after rolling out packaged beer in Missouri, Kansas and Oklahoma.
Yuengling launched draft beer in the three Midwestern markets in February, followed with packages of Traditional Lager, Light Lager 99, Golden Pilsner, and Flight in early March.
Paul Capelli, director of communications for Yuengling, told Brewbound that a combination of higher than expected demand and supply chain issues related to inventory of green and clear bottles led to “reduced availability.”
“The response to Yuengling’s arrival in Missouri, Oklahoma and Kansas has exceeded The Yuengling Company and our distributors’ expectations, and we are receiving more orders for draft and packaged beer than initially expected,” Capelli told Brewbound in a statement. “We are working hard to catch up to the huge demand for our beer in these new markets.
“This demand is combined with some supply chain restrictions for green and clear bottles in the marketplace, which is contributing to reduced availability, he continued. “We appreciate our loyal fans’ patience. Yuengling is doing everything it can to ramp up our production, packaging, and shipping to meet customer demand.”
The out-of-stocks have affected all four beers launched in the three states, with production sourced from Molson Coors’ brewery in Fort Worth, Texas.
“We anticipate supply catching up to demand as we progress over the next couple of months, and being in a good position prior to the key summer holiday weeks,” Capelli added.
In Missouri, Yuengling partnered with Breakthru Beverage in the St. Louis area. In the Kansas City metro area, Yuengling is with Central States Beverage on both sides of the state line.
In Oklahoma, Yuengling partnered with Capital Distributing, LDF Companies, Fisher 59, Hitchcock Distributing, Pope Distributing and Jett Distributing.
Yuengling’s beer is sold in 22 states, primarily in the eastern half of the U.S. The Pottsville, Pennsylvania-headquartered brewery announced a partnership with Molson Coors to add western states in September 2020, starting in Texas in August 2021.
Year-to-date through February 26, off-premise sales of the Yuengling portfolio have declined -5.3%, to $55.88 million, while volume (measured in case sales) is down -10.2%, according to multi-outlet and convenience store data shared by market research firm Circana (the former IRI). Through the first two months of 2023, dollar sales of Yuengling Traditional Lager have declined -3.3%, to $43.4 million, as volume declined -8.3%, the firm reported.