Scot De Lorme

300+ Years in the Game and Still Leveling Up 🥃 E&A Scheer the rum sourcing OG with over three centuries of expertise, is doubling down—literally. They’re investing to double their capacity as they gear up for major growth in premium rum. If this isn’t a sign of where the biggest players in the category are heading, I’m not sure what is. At Coconut Cartel, we’re right there with them. Premium rum is on the rise, and we’re pumped to be part of the movement. https://lnkd.in/ecBjMMrU

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We discussed this on our latest episode of CPG Vibes, BIG BIG news from KeHE Distributors on 11/22, a new program dubbed 'AAP' (administrative allowance program). A flat 2 % off-invoice allowance for specific fees including New item intros, extra performance fees, MCBs, new item set up fees, and lumping fees. My quick thoughts: This is a step in the right direction for sure. UNFI implemented SSI which is a similar program to help brands budget for costs and fees associated with doing business with large national distributors. With all that said, these categories are pretty large and encompassing, so for all the other fees associated with Kehe that can chop down a brand's margin, will this program truly cover it? Likely not, but at least it covers some. What are your thoughts?

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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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The non-alcoholic drinks market continues to grow and grow (and mature). Check out recent insights + stats from our friends at Grüvi: March Off Premise Retail Sales: → $48.6M > Identical to February, up 23% YoY → You can see subcategory performance in the chart below. Gruvi predicts: → 30-35% of YoY NA category growth. → 25%+ in off-prem and 50%+ in on-prem. → Premium, high quality craft or import NA beers will capture most of the growth of the NA beer market. → Big bet on NA RTDs to surpass NA wines by end of year. Gruvi has some more great stats in their blog post (link in comments). I’m hearing this same type of growth from members of the Adult Non-Alcoholic Beverage Association (ANBA). There's been some questioning about the growth of the category because of the recent Chapter 11 bankruptcy by non-alc beverage retailer Boisson and the closing of their retail locations. I was going to share some thoughts on this but the Gruvi team summed it up well: “Having served as a supply partner for Boisson, and being intimately familiar with their retail locations, it became apparent that they faced challenges across their retail and e-commerce channels. Boisson positioned itself as the upscale destination for NA beverages, boasting premium locations and a curated assortment. However, despite the overall growth in the NA market, it remains predominantly composed of NA beer (80%) and NA wines/RTDs under $12 (10%). As larger retailers expanded their NA offerings to target the mainstream consumer—the 90% of the market as seen above - Boisson was left with a small addressable market. Unfortunately, the demand proved insufficient for Boisson to sustain its operations.” Andrea Hernández also has a great take on it in her most recent Snaxshot (link in the comments). The adult NA category is maturing. Brands that do not have good business models, have bad product-market, or average quality products will need to adapt or close their doors. And this is not a bad thing. Because what rises out of this are business and products that better serve the consumer. I’m always impressed by the continued release of higher and higher quality NA products, with each raising the bar for the category. And this is great for people looking to moderate or not drink alcohol for whatever reason, and in whatever situation that best suits them. The adult NA category is getting bigger and better each day. And ANBA, our members, and I are here to continue to create a world where everyone has access to great tasting adult non-alcoholic beverages to enjoy in every social situation. And that is something we can all celebrate! 🍾 🥂 🍻 You can join us in growing the category and this movement by visiting ANBA's website and signing up for a soon to launch newsletter (link in comments). And you can follow me, Marcos Salazar 🍺🍷🥃, (& click the bell under my profile banner) to get regular insights and news about NA drinks. ♻️ #Repost if you like this post :-)

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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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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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"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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Ingredient Spotlight: Get to Know the Spirits Used in Cocktails Spirits, also known as liquors, make for the base ingredient in most cocktail blends. They are supposed to have a neutral flavor profile and are used to add a boozy kick to the mix. If you know a little about cocktails, you’ll know that the base typically consists of distilled liquors such as vodka, whiskey, tequila, brandy, gin, rum, etc. These are the top choice in spirits and are always stocked in bars all around the world. If you’ve got an exquisite bottle of liquor sitting at home but don’t know what to do with it, try some of our favorite recipes. - Vodka Cocktails: Espresso Martini, Vodkatini, Black Russian, Milano, Vodka Sour, Kangaroo - Gin Cocktails: Negroni Cocktail, Dry Martini, Coffee Sour, Income Tax Cocktail, Clover Leaf - Whiskey Cocktails: Manhattan, Whiskey Sour, Mint Julep, Old Fashioned, Scotch Sour, Scotch Negroni, Highlander, Dreamsicle - Rum Cocktails: Daiquiri, Mojito Cocktail, Casablanca, Sloppy Joe, Mint Daiquiri - Brandy Cocktails: Cognac Julep, Brandy Sour, Brandy Manhattan, Sidecar, Pierre Collins, Hot Toddy - Tequila Cocktails: Margarita, Picador, Tequila Sour, Mexican Manhattan, Tequila Sunset, Tequila’tini, Rosita Don’t have the right glassware for serving cocktails? Start your collection with a versatile set of go-to pieces like these round cups and goblet-style glasses. Then keep adding as you go! #CocktailIngredients #CocktailCreations #DrinkInspiration #MixologyMagic #BartenderEssentials #CraftingCocktails #CocktailCulture #CocktailHour #CocktailInspo #DrinkIdeas

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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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The brand-new "Keto Air-Dried Beef Jerky Series" is on its way! Following the "Asian BBQ seasoned" and "Sichuan zest" flavors, we’re excited to introduce the "Original Braised Flavor" this time! Non-spicy, keto-friendly, rich in savory braised flavor, and made fresh from top-quality local Canadian beef. It’s perfect as a snack for kids and teens to replenish high-quality protein during snack time. Of course, it’s also great for anyone who prefers a non-spicy treat! Why launch this flavor? First, it's a unique taste you won’t find on the market. Second, many customers have given feedback that their kids love beef jerky, and need a protein boost during school snack time or after sports. This pack is just right for that. I’m working at full speed—look out for it by the end of September! #CPG #beefjerky

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A simple quote from Mike Tyson and one of my favorites of all time: "Everybody has a plan 'till they get punched in the mouth." It rings true in the day to day battles of business, especially in CPG. Here are some examples many CPG founders go through or ones I've personally battled: 🥴 You launch a product, did all the research for R&D, focus group testing, and reviewed the packaging thousands of times before launching, but still something went wrong either with shelf life, negative consumer/retailer feedback, or weak sales on shelf 💰 You had cash flow projections in place and expected that with X amount raised, it would last you for Y Months, but ran short of runway and were scrambling to raise more cash to keep the company going in difficult times 🤝 Formed partnerships, only disappointed to find out the partner backed out, or it wasn't the partnership you envisioned and now you are doing damage control and it's causing emotional pain to be with this person 🚛 Brought on a distributor thinking they would push the brand and it would be an estimated cost, but they didn't do their job, and the costs ended up sky-rocketing from chargebacks, thus losing money on every unit 😲You release a great product, and then a competitor comes up with a version of yours that is a lower price point and they have all the marketing dollars in the world to out-compete you. I can go on and on, but in this business, like any business, you have intentions when you go into it, and many times, it doesn't turn out the way you envisioned. What's your story of getting punched in the mouth?

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As we hold on to the last remnants of summer, let's talk tequila. While there’s an ongoing discussion about the use of additives in tequila, these blind-tasting results kind of speak for themselves. This summer we conducted multiple taste challenge masterclasses that had consumers and bartenders blind tasting 8 tequilas. For the first time, we actually employed black tasting cups so that the color wouldn’t give away the brand/type - because at Flavor Camp, we’re focused on #flavorfirst Based on more than 100 consumers’ written feedback (all based in Vancouver, BC), it appears that the Anejos reigned supreme with Casamigos Anejo, Espolon Anejo & Hornitos Cristalino (which is a charcoal filtered anejo), were the top three picks based on taste. Personally, I’ve been an enormous fan of the new-wave of ‘Rosado’ tequilas being released by brands and wanted to market test them and it seems that they resonated more, profile wise, with Bartenders, than consumers. So what kinds/brands of tequila are you drinking currently and why? Let’s start a conversation.

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Is strategic M&A dead?? Are line extensions and private label the new thing?? Are we going to start to see more PE exits instead? Will see some IPO filings next year? 2025 shaping to be a transformative year 🚀🚀

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What Got You Here Won’t Get You There: This is the story of many CPG brands that once enjoyed profitability and significant market share but are now struggling to stay relevant in a rapidly evolving competitive and technological landscape. For a CPG brand that once thrived but now finds itself grappling with low cashflows, shrinking margins, and a stagnant topline, the future depends on decisive, strategic shifts. It’s a classic catch-22: do you invest in brand building to stay top-of-mind, or refocus on reformulating products or upgrading machinery to stay competitive? Here’s a strategic playbook to help navigate these complex choices: ◀️ Laser-Focused Investment: Develop a clear game plan. Prioritize investments in the brand, product innovation, and operational efficiency—but stay selective. Every dollar should bring measurable impact. ◀️ Modern Brand Building: Leverage content creators over traditional media. They bring authenticity and targeted reach, often at a fraction of the cost of TV or other conventional ads. ◀️ Lean Inventory Management: Adopt Just-in-Time practices, reduce slow-moving products, and optimize your inventory to save on warehousing and carrying costs. ◀️ Strengthen Cash Flow: Tighten working capital by reducing customer credit terms, exploring receivables financing, and negotiating extended payment terms with vendors. ◀️ Smart Reinvestment: Channel profits back into quality improvement, sustainability initiatives, and cost-efficient warehousing, transportation, and supply chain improvements. Waste reduction should also be a priority to further enhance margins. A full-time or Fractional CFO can be a game-changer in guiding this journey. They bring accountability, track key KPIs, and implement a Balanced Scorecard to keep tabs on your brand’s financial and operational health. It’s time to take a bold, structured approach to stay relevant—and profitable—in today’s evolving market. ****************************************** P.S. I am a Fractional CFO helping businesses take informed financial decisions with peace of mind while having some fun in this process. Please contact me at [email protected] if I can be of any help in your CPG Transformation Journey. Brain Expansion Group Startup Ecosystem Canada Fractional CFO The CFO Centre Canada

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Constellation Brands Inc. saw its stock climb during premarket trading on Thursday following an upward revision of its adjusted fiscal 2025 profit forecast, surpassing analyst predictions. The company also reported a robust fourth-quarter profit, driven by the stronger-than-anticipated performance of its beer division. CEO Bill Newlands highlighted the beer business's consistent volume growth over 56 quarters, coupled with impressive margins, although wine and spirits sales experienced a decline. https://lnkd.in/ggNU_G9r Constellation Brands Bill Newlands Branded Hospitality Ventures #Technology #Business #Innovation #AI #investing #venturecapital MarketWatch

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Over a Billion dollars in creator-led CPG brands? Easily and growing! Check out the VidMart store of creator-led CPG brands at VidSummit 2024 in Dallas, Texas. Proud to see MATADOR ENERGY and Danny Duncan featured prominently among the many other Night Ventures brands emerging in CPG categories from food and beverages to health and beauty.   The team at Spacestation Integrations (Travis McBride, Sean Holladay, Shaun McBride) and YouTube (great to connect Jason Cosgrove), have created a truly immersive and supportive event for creators. Over 3,000 attendees (mostly creators) converging to share best practices, connect with mentors and peers, and share in the journey. It is a creator ‘safe space’ to work through the challenging profession of being a creator. I don’t think most consumers of social media truly understand the hard work and intense discipline required to become a professional creator. I certainly didn’t! But now with an inside view of what Danny, his business partner Stefan Toler, and other creators I’ve met through Danny (shout out MMG), I can tell you this is a dynamic and challenging profession, requiring constant creativity, always-on work ethic, and an intuitive radar for trend spotting and social movements. This is not a 40-hours a week profession! Be sure to follow Jon Youshaei (contributor to Forbes) who does an amazing job covering the creator-led media evolution. It is evolving quickly. One more note: I’m still dizzy with anxiety/curiosity/excitement from Tom Bilyeu’s speech on AI’s impact on social engagement and creator’s (or AI virtual creator’s) eventual hyper-personalized relationships with followers. #creatoreconomy #youtube #socialmedia #brands #socialmediamarketing #cpg #emergingbrands

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Domino’s Hungry for MORE strategy drives strong Q1 Results 🚀 As we announced this morning, our first quarter results continue to demonstrate that our Hungry for MORE strategy is working, and our incredible team members and franchisees are delivering on our promise to drive MORE sales, MORE stores, and MORE profits.  Key Highlights: • MORE Sales: Excluding the impact of foreign currency, global retail sales grew 7.3%, driven by strong U.S. and Intl. comps and global net store growth. In the U.S., our same store sales rose by 5.6%, driven by both delivery and carryout, up 2.9% and 9.5%, respectively.    • MORE Stores: We added 20 net new stores in the U.S., bringing our U.S. system store count to 6,874 stores. Our international store count increased by 144 net stores in the first quarter, bringing our system store count to over 20,700 stores at the end of the quarter.   • MORE Profits: Our new and improved Domino’s Rewards loyalty program drove outsized comp performance and flowed through to our income from operations, which increased 19.4% (excluding FX). Our unit economics remain strong, and we remain on track to achieve our target of $170k or more in average U.S. franchise store profit for 2024. We made a number of key strides in the quarter to deliver against our Hungry for MORE strategic pillars. In the first quarter, we were on air with Pan Pizza for the first time since 2014, showcasing our Most Delicious Food and the variety of crusts that we have to offer. We continue to see benefits from our service initiatives that we rolled out in prior periods against our Operational Excellence objective. In Q1, we delivered more pizzas than we did in Q1 of last year, and at improved delivery times. We've always been known as a premier value player, but Renowned Value is not about having just the lowest price in the market, it’s about providing value that is innovative and memorable. Our Emergency Pizza campaign broke through the ‘sea of sameness’, performing better than any ‘BOGO’ I’ve done in my career. This innovative campaign drove active Domino’s Rewards member growth, particularly among new, lapsed and light users. This, in turn, helped to drive increased order counts in the U.S. across all income groups in both our carryout and delivery segments! Everything we do at Domino’s is Enhanced by our Best-in-Class Franchisees, and I can’t wait to host them at our Worldwide Rally next week. They were the inspiration behind Hungry for MORE and I’m looking forward to bringing our strategy to life across our global system. I could not be more excited about 2024 and beyond for Domino’s Pizza. Our first quarter results clearly show that our strategy is resonating with customers. This gives me great confidence in our ability to deliver against our short and long term Hungry for MORE goals and drive significant value creation for Domino’s franchisees and investors. #Dominos #HungryforMORE

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Offering a unique blend of convenience and premium appeal, these top-rated RTDs present a lucrative opportunity for businesses looking to capitalize on consumer preferences.

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