Distribution

Distributors noticed stronger beer trends this summer versus last summer, “despite headline concerns over the slowing category and ongoing Bud Light pressures,” Goldman Sachs analysts reported in the company’s latest Bev Bytes Beer Distributor Survey.

Beer trends continue to improve in the off-premise, according to Circana in the market research firm’s monthly beer report.

Seven California beer and beverage distributors have formed an alliance to provide a nearly statewide network to suppliers under the California Beverage Solution banner. The founding seven distributors include six independent Anheuser-Busch distributors, along with one of the largest craft-focused distributors in the country.

Craft beer off-premise dollar sales in the last four weeks (ending July 16) increased +1.2% versus the same period in 2022, according to market research firm Circana in its monthly beer report.

According to a letter to distributors viewed by BevNET and Brewbound, Tony Short, CEO of Monster-owned beer maker CANarchy Craft Brewery Collective, confirmed previous reports that The Coca-Cola Company has begun the process of onboarding Bang within its national red-truck distribution system, marking the brand’s second go-round with one of the country’s largest beverage suppliers.

While bev-alc has been plagued with demands for “new, new, new” at an accelerated pace in recent years, distributors are concerned that “recent innovation is not disciplined,” according to the latest Tamarron Consulting survey.

Breakthru Beverage Group founder W. Rockwell “Rocky” Wirtz has died at age 70 following a brief illness, the company announced Tuesday evening.

Total bev-alc sales in off-premise channels (multi-outlet plus convenience) declined -4% week-over-week (WoW) in the week ending July 9, which included the July 4 holiday, according to Circana analyst Scott Scanlon.

Convenience store retailers had a “slightly more pessimistic outlook” for beer trends in Goldman Sachs’ Q2 Beverage Bytes survey, citing “broader economic pressures/fears of recession, impacts from cooler weather” and the continued “negative impacts from the recent Bud Light controversy.”

Brewers with seasonal or variety pack placements in Walmart stores may be in for a bumpy ride. The Beer Industry Electronic Commerce Coalition threw up a warning flare last week that the largest brick-and-mortar retailer in the U.S. would be mandating that all seasonal brands and variety packs use unique UPC codes, starting in early 2024.

Craft trends in off-premise channels “remain underwhelming,” but there are “signs of improvement” in Q2, according to Bump Williams Consulting’s (BWC) quarterly craft report.

As the Bud Light brand continues to lose sales and share amid conservative-led backlash over a one-off social media influencer partnership with a transgender woman, the company is now pledging financial support for its wholesaler partners, according to a 6K filing with the SEC.

The wheeling and dealing between Classic Beverage and Scout Distribution continues in California. Classic Beverage of San Diego announced a deal on Friday to acquire Scout Distribution’s business in San Diego. Financial terms of the transaction were not disclosed, but the deal is expected to close by August 11, pending supplier approvals.

A pair of beer distributor surveys found that many in the middle tier believe that the conservative led boycott of Anheuser-Busch’s Bud Light brand may be permanent. Financial services firm Jefferies’ survey found that a majority (65%) of distributors surveyed expect the Bud Light downturn to last at least another six months, while 32% believe it could be permanent. A separate distributor survey by Goldman Sachs analyst Bonnie Herzog found that most respondents are “pessimistic about the potential for a full recovery” of Bud Light’s “brand equity and market share.”