Beer Marketer's Insights
Keurig Dr Pepper delivered another strong performance on bevs in Q1 even tho its coffee biz remained soft, and said it's sticking by its full-year guidance despite tumultuous economic environment. And as CEO Tim Cofer proves up to job of honchoing complex matrix of brands, the changing of guard has continued, with exec chmn and former CEO Bob Gamgort relinquishing "exec" part of title as what co termed "next step in our governance." As non-exec chmn, Gamgort presumably will continue to be directly involved in search for new partner brands, role he'd said he'd coveted during prior CEO transition that was aborted when his successor abruptly left co over personal behavior issue, forcing Gamgort's return to post. KDP also continued to refresh its board, adding Southwest Airlines vet Mike Van de Ven and Brown Forman CEO Lawson Whiting. Those moves were all effective today. Cofer is Mondelez vet who joined KDP a year and a half ago, starting with 6-mo shakedown cruise as COO before being handed CEO reins.
American Rebel Light, a Conservative-targeted 4.3% ABV brand, has entered into a distrib agreement with Adams Beverages to ship to 28 counties in NC. Big step up for co, which is also teaming up with Charlotte Motor Speedway as the title sponsor of this weekend's Natl Hot Rod Assn (NHRA) 4-Wide Nationals; already sponsors/outfits Matt Hagan's Tony Stewart Racing car. The company is "burning patriotic fuel" in its Southeastern expansion plan, sez founder Andy Ross in release. Announcement also notes that Rebel Beer is now in 10 total states with more to be announced soon.
The Financial Times visited The Heineken Studio at Amsterdam's Heineken Experience and came away asking: "Could it be the future of beer?" Located on a rooftop at end of Heineken tour, it features self-serve taps with LED screen (and many options across its global portfolio); setup strongly evokes that of Atlanta's World of Coca-Cola, featuring tasting room of all global brands at tour's end before funneling into gift shop. "If the exhibits in this innovation showcase are anything to go by, ordering a pint may one day involve as many decisions as a New York deli sandwich," wrote FT.
Late yesterday, Johnson Brothers announced purchase agreement to buy Maverick Beverage Company in TX, CO, FL and AZ. Maverick will continue to operate in MN and IL. "As part of the acquisition, approximately 400 Maverick team members will join the Johnson Brothers family," said release. Johnson Brothers operates across 17 states.
US Beverage's unique and increasingly diverse platform sells approximately 2.5 mil cases/yr in the US, spanning imports/international brands, craft beers, FMBs, hard ciders and spirits servicing all 50 states and ~350 distribs. Co's actively looking to build its portfolio with brands that complement the mix as its biz capabilities enhanced from a sales & mktg platform to "full-service," US Beverage veep of biz development Kris Sjolander told INSIGHTS. It "could have a portfolio three times the size tomorrow" with many suppliers lookin' for partners, but that "doesn't make sense" for its platform, Kris underscored. Co thinks of itself as "brand builders" with exec team chock full of distrib-side experience that knows the ins and outs of the biz, sales team of ~40 reps across the country, and a willingness to invest as the portfolio continues to change.
After improving depletions to flat in Q4 and staying that way thru first 8 wks of 2025, how might Boston Beer fare in its first quarter earnings? Just so-so, sez RBC's Nik Modi, who expects "muted topline to persist" on depletions even as he's "expecting volume growth" in the quarter, to be reported Thurs.
Privacy, Money and Demographics Drive Differences in Gen Z Drinking Trends: Rabobank Report
A distinct lack of privacy during their teen years may have delayed Gen Z from drinking the way older generations did, but demographics could depress long-term demand, Rabobank analyst Bourcard Nesin argues in recent report. Can't ignore that most of the generation is still underage and few of them live on their own. They're still spending 0.72% of their disposable income on alcohol, fed data shows, same as Millennials and even slightly above Gen X, Bourcard explains. But in 2012-2013, households led by folks under 30 spent more like 1.1% of their disposable income on alcohol. That dropped to 0.74% a decade later, about 1/3 less.
Ruling in favor of Dunkin' and its franchisees, a fed judge in Calif dismissed a lawsuit accusing stores "of disability discrimination for charging extra for nondairy milk alternatives," reported USA Herald. Lawsuit was filed on behalf of lactose-intolerant customers and claimed the surcharge violated the Americans Disability Act and Calif civil rights act.
Just weeks after announcing $500 mil expansion of its Idaho plant (BBI, Mar 20), yogurt, creamer and coffee purveyor Chobani said it's building $1.2 bil plant in upstate NY, not far from where its immigrant founder Hamdi Ulukaya began co 20 years ago at shuttered Dannon plant. The 1.4-mil-sq-ft plant will be sited in Rome, NY, on 150-acre tract that once housed Griffiss Air Force Base, and will house 28 production lines with capacity to process 12 mil lbs per year of raw milk per day - 6 bil lbs per year at full capacity. It will employ over 1,000, nearly doubling co's NY State workforce counting original site in S Edmeston about 45 miles south. The groundbreaking yesterday concluded nationwide search and was juiced by $73 mil in tax credits from Empire State Development authority that are keyed to co's delivery of the 1,000 promised jobs. NY Gov Kathy Hochul called it the country's largest-ever single investment in natural-food processing. Chobani, of course, also owns La Colombe Coffee.