Rick Turnbull

The Coca-Cola Company and Coca-Cola zero sugar...after a stronger-than-expected second quarter 2024 performance that was announced today, which saw net sales revenue increase 3% to $12.4 billion, the Coca-Cola Company has raised its full-year outlook. Coca-Cola’s latest earnings success comes at a time when the soda business as a whole is in decline. Between 2004 and 2023, the volume of carbonated soft drinks bought and sold in America decreased by -27%, according to trade publication Beverage Digest. Still, amid the category’s downward trajectory one brand has continued to rise, capturing more market share in the past 20 years than all the others. That brand: Coca-Cola Zero Sugar. Coca-Cola Zero Sugar is an ongoing example of how superior taste drives consumer demand, with Coca Cola Zero seeing a +20% global volumes increase. The strong performance of Coca-Cola's Zero sugar variants, is reflective of an overall beverages category move to Zero sugar offerings as consumers look for healthier beverages choices, with zero calories and sugar. For any beverages brand owner or manufacturer looking to create great tasting 😋 beverages innovations 💡 with reduced or zero sugar, please reach out to the beverages team at Kerry, we are here to help. #cocacola #cocacolazero #zerosugar #sugar #softdrinks #taste #zerocalories #refreshingbeverages #tastsesense Erlon Pereira Marc LEJEUNE Breda Kelly Tiphaine BEAU Farrah Gilsenan Thomas Hahlin Ahlinder Sheelagh Pentony Carol Dunne Gwyneth Kelly Michelle Osagie Mark Allen Leigh-Anne Vaughan Massimo Barbeni Romel Doshi, MBA Sam Choucha Nina Riggins Sergio Saavedra Rodríguez Birgit Schaaf Ian Chesworth Erika Minaguchi Magdalena Edyta Przewoźnik Barbara Lezzer David Deeley Brian Short Aoife Mc Donald Elaine Druhan Juan Soto Daniel S. Xavier Herrera

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"Thanks Kaleigh Theriault, great play by play on the first half, let’s take a look at what’s going to be needed to win the year." 🏈 Halftime Report: Preparing for the second half in the Beverage Alcohol Industry! 🏆 As we take a breather at the halfway point of 2024, it's clear that the beverage alcohol industry has seen some major plays and strategic moves. Let's huddle up and look at the game plan for the rest of the year: 🍺 Beer: The price increases in 2023 are putting pressure on consumers, with long-term inflation effects and multiple drivers pointing to lower volumetrics. To stay in the game, deeper price subsidization for core Beer categories is essential. However, Imports show potential for a positive finish. Maintaining consumer loyalty will be our MVP move here. 🍷 Wine: The $15-$25 range continues to be the sweet spot, driving consumer interest. But to achieve positive trends by year-end, we need to capitalize on Q4 gifting. A big comparable period is coming up, so some price adjustments might be necessary, especially for infrequent Wine shoppers. 🥃 Spirits: We're seeing a continued shakeout as consumers transition from traditional products to RTDs. Flavor and turn-key cocktails are the winning plays, making Q4 critical for gifting and entertaining. Price discounting is already in motion to boost revenue. 🍹 RTD (Ready-to-Drink): RTDs remain a game-changer this year. With their share of total Alcohol growing, we expect more stability in growth rates as the shift from Seltzers slows. Building consumer brand loyalty for Spirits RTDs is crucial, and we need to watch out for potential flavor fatigue in the second half. Let's get ready to tackle the challenges and seize the opportunities ahead! Here's to a successful second half of 2024! 🥂 "Why did the football team go to the bank at halftime? To get their quarterback!" 🏆 #BeverageIndustry #AlcoholTrends #Beer #Wine #Spirits #RTD #MarketInsights #SecondHalf #HalftimeReport Note: This report looks at the 26 week ending period thru July 6th, 2024

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The moderation trend is continuing to accelerate! The NA segment of on-premise beer sales in the U.S. jumped 33.7% over the last 52 weeks with broad-based gains in all 50 states! 💪 📈 🍻 At Partake Brewing we are seeing on-premise operators move from offering 1 NA beer option to now several with macros and craft represented in addition to house mocktails. 🍺 🍷 🍹 This is an exciting time for the non-drinker and moderator alike! Gone are the days of water, juice, milk, and soda as the non-alcoholic options. 🤩 https://lnkd.in/gibbdbPB

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🍺 According to Circana, 15 of the top 25 beer category vendors have seen YTD dollar sales and volume declines through November 3. However, trends appear to be improving for 13. Read the full breakdown of the data and what it means for the beer industry. https://lnkd.in/gjfQmZic #BeerIndustry #MarketTrends #BeverageInsights #AlcoholSales #BusinessIntelligence

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The US Beer industry landscape is changing fast. AB InBev's North America Normalized EBIT declined by over $1.3 B from 2022 to 2023. The volume market share decline (relative to Molson Coors Beverage Company and Constellation Brands) contributed to that EBIT decline by an amount of $400 Million. It has not helped that overall volumes between these three major players has declined by over 4%. It's a general sign of the headwinds facing the beer category as shopper and consumer preferences shift. For #ABInBev, that overall market decline cost them another $200M. A just less than 4% increase in Net Pricing contributed a +ve $560Million to the Normalized EBIT change, but was insufficient to mitigate the increased inflationary unit costs associated with Cost of Sales and the de-leveraging of other SG&A operating expenses. It will be interesting to track how these components of EBIT will change for 2024, given growth constraints associated with market share gains and price increase ceilings. Looks like some drastic OPEX cuts might be the only short-term remedy for now as AB InBev looks to rebuild brand equity and volume share. Send me a DM or write "send" in the comments section and I will forward you the document that also contains the related MVA operating breakdown for #MolsonCoors and #ConstellationBrands. It's interesting to see how and to what extent Molson Coors and Constellation Brands benefited from AB InBev's headwinds. You will also see why Constellation Brands might be the longer term winner here. #Beerindustry #beercategory #beerdistribution #Heineken #BeverageAlcohol #Asahi #Carlsberg #BostonBeer #beer #beverages #BudLight #MillerLite #CoorsLight #Corona #ModeloEspecial

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Craft Beer - Wemand has slowed: Craft is no longer in the meteoric growth phase of the 90s and 2000s and instead is declining. In volumes, craft beer declined 1% in 2023 compared to the year before Data is yet to be released for 2024, but initial estimates suggest declines will continue. In the association’s mid-year survey, craft saw an estimated decline in production of 2%. And Q3 scan data suggests weaker performance than the first half of the year #beer #beers #brewery #breweries #craft #craftbeer #beerindustry #beermarket

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The non-alcoholic spirits category is building amazing momentum in the US. In fact, over Easter the non-alc spirits became the fastest growing category within alcohol. Sales were up a huge 101% YoY and growth was 3x faster than any other category! It's great to see non-alc spirits continue to gain traction amongst consumers, and what's even more impressive is that CleanCo continue to outperform the category so far in 2024! --- Source: NIQ Measured Off Premise Channels (Easter = 2 weeks ending 04/06/24) #nonalcoholic #nonalc #nonalcoholicspirits #drinksindustry

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Keurig Dr Pepper is purchasing a 60% stake in the energy drink brand Ghost for over $1 billion. This acquisition aims to expand its presence in the energy drink market, which is seeing significant growth. Ghost, known for its unique flavors and branding, has grown rapidly since its founding in 2016. This deal aligns with Keurig Dr Pepper's strategy to broaden its portfolio and reach new consumer segments. Full distribution will shift to Keurig Dr Pepper's network by mid-2025. Keurig Dr Pepper's acquisition of Ghost offers several lessons for beverage brands looking to grow Strong Brand Identity: Ghost’s distinct branding and unique flavor offerings have set it apart. Beverage brands should prioritize unique visual identity, flavor innovation, and brand personality to engage modern consumers. Market Expansion Strategy: Ghost’s rapid growth highlights the importance of targeting high-growth segments, like energy drinks. Brands should assess trends to identify fast-growing markets and position their products accordingly. Distribution Leverage: By leveraging Keurig Dr Pepper’s distribution, Ghost gains wider reach and scalability. Beverage brands should seek strategic partnerships to scale distribution and improve market access. Long-Term Acquisition Pathway: The gradual acquisition model (starting with a majority stake and moving to full ownership) can be advantageous, allowing for brand continuity and growth within a larger corporate structure. Brands considering acquisition should evaluate flexible buyout structures for sustained brand evolution while integrating into larger companies. Consumer-Centric Innovation: Ghost has succeeded by listening to consumer preferences and creating products that align with their interests, like fitness and active lifestyles. Brands should conduct thorough consumer research and innovate based on emerging preferences to remain relevant and appealing. #cpg #beverageindustry #branding #marketing #energydrinks

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This is what I have been talking about. Mondelez says consumers shifting to value retailers: TJ, Lidl, Aldi, Costco. Mondelez International executives expect inflation-weary US consumers to respond to short-term price promotions and shift to more cost-friendly retail channels as they adjust to elevated pricing across food categories. ‘Wow, I used to think this costed so much, and now it costs a lot more.’ And they start to think a lot more (about) what to do. So it’s clearly a change with the consumer in the US.” Three years ago, Mondelez had 60% to 70% of its product range selling below $3, whereas now that price point stands at $4, Van de Put said. “We are underrepresented in discounters,” Van de Put said. “It is clearly a channel where we are growing faster than the rest of the business because we’re catching up on where we are. So it helps us in the short term also to focus on these channels.” Larry Finis Ryan Gomes Lauren Anderson Holly Newberry Shawn Berg #nynjfoodguru https://lnkd.in/e5YTGgia

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SAFE NOTES ARE NOW UNSAFE... OK so what is going to happen to the money that was poured into CPG Brands via these supposed SAFE Notes? Issue is that no priced round took place and now it is likely if it did happen it would be at a fraction of the valuation that was contemplated leading to massive dilution for the founder. Many have a cap...few have a floor. and unless they are converted it will be impossible to raise new money at any valuation. #cpg #safenotes #fundraising

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Molson Coors is divesting its four craft beer brands and shutting down its own craft label as the brewing behemoth exits an industry it once longed to access. The whiplash further signals that big beer makers are no longer enamored with craft brands as that slice of the market posts negative growth for the first time in its history. Molson Coors announced Tuesday the sale of its craft beer portfolio — Hop Valley in Oregon, Terrapin in Georgia, Revolver in Texas and Atwater in Michigan — to Tilray, a Canadian company with interests in cannabis and beer. In addition, Molson Coors announced it would shut down its Colorado-based, in-house craft brand AC Golden at the end of September, according to a memo obtained by Axios. Molson Coors chief commercial officer Michelle St. Jacques said the moves allow the company to focus on its premium national brands, Blue Moon and Leinenkugel, as well as non-beer alcoholic beverages, such as seltzers and hard cocktails. "As we map our path forward, we recognize we need to sharpen our focus on the segments where we see the greatest opportunity for our collective businesses," she wrote in the memo to wholesalers. Global beer makers like Coors and Anheuser-Busch rushed to acquire craft beer brands at the height of their boom a decade ago, but fortunes have shifted. The overall beer industry sank 5% in production volume in 2023, but saw retail sales increase 3%. Meanwhile, craft beer production decreased 1% — its worst number since the industry came into view in the 1970s. AB InBev divested eight craft brands, including Breckenridge, 10 Barrel and Shock Top breweries, to Tilray last August. Constellation Brands sold its craft breweries — including the billion-dollar Ballast Point — in recent years. Tilray's two acquisitions from big beer makers now positions the company as one of the five largest craft brewers in the U.S. "Tilray Brands plans to continue to invest in the future of these craft breweries, accelerating their growth and capturing a wide range of new market opportunities," Irwin D. Simon, Tilray's CEO and chairman said in a statement. "Tilray Brands is a beacon for craft brands, and we are committed to driving their growth and success within our portfolio." To earn the "craft beer" seal, it must meet the definition of small and independently owned, set by the industry's trade group, the Colorado-based Brewers Association. Now that Tilray is the owner, all four of its new brands will qualify as craft — a symbolic but significant indicator to consumers.

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Leading nonalcoholic brewer Athletic Brewing Co. raised $50m from General Atlantic "to increase production capacity and expand its offerings to meet rising consumer demand for nonalcoholic beer". Athletic is a unique brewer in that it exclusively offers alocohol-free beers, while at the same time being positioned as a craft brewer. It holds ~20% MS in alcohol-free segment (~$90m revenue) driving 32% of total nonalcoholic beer category growth (while being #20 largest brewer overall) The nonalcoholic segment is the fastest growing one in Beer, with strong tailwind especially from young consumers that are ditching alcohol consumption. While all incumbents are already in the race with a strong offering from their legacy brands (HEINEKEN Beverages AB InBev Molson Coors Beverage Company Diageo) and enormous advantage in go to market muscle, they cannot be also as aggressive in positioning itself as nonalcoholic brewers, an angle that is available to Athletic Brewing #fmcg #cpg #strategy ##mergersandacquisitions Frederic Fernandez & Associates

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#DYK that only 14,191 stores in #CA can sell spirits-based #RTDs, whereas over 28,000 stores can sell malt- & wine-based RTDs? It is UNFAIR to force spirits lovers to make a special trip for their fav spirits products. Tell your #CA Reps to support SB 277, to allowing spirits RTDs to be sold under the same license used for beer and wine!

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After two decades as the top-selling beer in America, Bud light lost its title last year. Modelo Especial … … took over as the most popular beer tracked in retail channels. The truth is, Bud Light’s downfall has less to do with Bud Light and more with profound changes in the US beer market — especially within the import category — which has disrupted the beer categories. Incidentally, what constitutes ‘Import Beer’ in 2024? Ask Toyota execs about its Camry, — made in Georgetown, Kentucky — for nearly 35 years … “It’s just beer.” — Stephen Carter King Source: Brauwelt [ International Report > The Americas ] #Beer #CraftBeer #NonAlcoholicBeer #Cider #Microbreweries #Taprooms #Brewpubs #ConsumerBehavior #BrandAwareness #EmergingTrends #BusinessIntelligence Slàinte☘️! ✦✦✦ Stephen Carter King Chief of Growth and Marketing and Strategy + CEO of Beerconomy 🍻 Beer Market Analyst with beer market trends, insights, data and forecasts • Thought Catalyst • Sherpa • Advisor • Speaker • Publisher of The Beerconomist

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Beer, tequila, mezcal drive exports 1Q2024. By product, the export product with the highest economic value was beer, with sales of 2.169 billion dollars and an annual growth of 19.6%. This is the first time that beer exports surpassed the 2 billion dollar mark for a similar period. This was followed by tequila and mezcal, with exports of 1.341 billion dollars. It remained in second place in terms of the largest Mexican sales abroad, despite registering an annual decrease of 2.9 percent. Grisel Vargas Master profiler of Spirits. Love, drink and live México🇲🇽🥂

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Major news in the FMCG world today - Mars and Kellanova have struck a historic $35.9 billion acquisition deal (14 times Ebita from last Qtr). This deal is one of the largest in packaged foods business since the Kraft and Heinz merger. Note Mars accquired Wrigley in 2008 for $23B. Will this move set to reshape the food manufacturing landscape? Mars’s acquisition of Kellanova is expected to complement its existing portfolio, which includes brands such as Snickers, M&M’s. In 2023, Mars reported net sales of more than US$50 billion, driven by its 150,000 associates across pet care, snacking and food businesses. Mars’s pet care portfolio includes the likes of Royal Canin, VCA, Pedigree, Banfield and Whiskas. As these giants combine forces. This will advance Mars’s strategic vision for the future of snacking. The integration of Kellanova’s brands will provide Mars with entry into new snacking categories, including the addition of billion-dollar brands Pringles and Cheez-It to its portfolio. The acquisition will also enhance Mars’s health and wellness offerings with products such as RXBAR and NutriGrain, aligning with global current consumer trends. Kellanova has their Better Days Promise initiative and Mars has their Sustainable in a Generation plan. Their combined impact will be significant in the world of food.

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