Jenn Litz-Kirk’s Post

Carlsberg Marston’s Brewing Company Axe Well-Known Beer Brands, Says CAMRA The Campaign for Real Ale (CAMRA) has reported that pubs will soon be unable to stock iconic beers, including Banks’s Mild, following the Carlsberg buy-out of the last of Marston’s UK brewing operations. Fears that global brewers hugely reduce consumer choice in the UK have, CAMRA say, been realised as Carlsberg Marston's Brewing company (CMBC) axes eight classic British cask beers. The decision to delist these brands by the end of the year will have a huge impact on both pubs and pubgoers dealing brewing, consumer choice, and industry jobs another blow they said Despite an investigation by the Competition and Markets Authority finding that the merger of Marston’s and Carlsberg would not have negative effects, it is now confirmed that the consolidation of the businesses will be followed by the consolidation of their brands, resulting in a huge loss of choice at the bar for consumers. Eight cask beers and a further three keg brands will no longer be available to pubs. The Eight cask beers and a further three keg brands which will no longer be available to pubsare: - Banks’s Mild - Banks’s Sunbeam - Bombardier - Eagle IPA - Jenning Cumberland Ale - Mansfield Dark Smooth - Mansfield Original Bitter - Marston’s Old Empire - Marston’s 61 Deep - Ringwood Boondoggle - Ringwood Old Thumper Commenting, CAMRA’s Real Ale, Cider and Perry Campaigns Director and Vice Chair, Gillian Hough said: “This is another example of a globally owned business wiping out UK brewing heritage. “I hope that this change will mean space on the bar for licensees to stock guest beers from local independent breweries, but realistically, I suspect this isn't what CMBC plans. This loss of consumer choice is the inevitable outcome of a brewing conglomerate run by accountants and the bottom line. This is a sad and disappointing decision that puts both the history and the future of British brewing in jeopardy.” Read More:

TailGate Brewery distributes in Tennessee only. Why? Since 2014, we've *only* distributed in Tennessee. The "*only*" is because we used to have a really neat niche of distribution in the UK of all places. But that was pretty small potatoes, and was really just too cool to pass up. We enjoyed a cult following for some of our core beers, and we were able to participate with the Brewers Association's export and development program. These days, it's all Tennessee. On the topic of craft beer distribution, I like the saying: "a mile wide and an inch deep." Since we opened in West Nashville in 2014, a lot of breweries were able to grow by opening new distribution markets in a nearby state. But what's interesting is, everyone was opening new markets. So what happened was: a brewery would send a truck of beer, enjoy the bump in sales...and never get a reorder. That beer would sit, go out of code, have to get bought back....all sorts of nightmares. But the brewery could launch another state to help smooth the bumps. Right? Eventually, your distribution footprint becomes huge. It's spread all over, but has no depth. The distribution footprint becomes....a mile wide and an inch deep. We had no crystal ball in 2014, but we could see which way the wind was blowing. Other states have other laws. The distributor end of the three tier system can be about as fair as robber barons in the early 19th century. And trying to manage all sorts of operations 4-10 hrs away? Forget about it. We chose home. All things change. All things evolve. But sitting here today, we're Tennessee only. And we have no real designs on other states. Yes we get asked a lot to expand. Yes we have opportunities to expand. But there's not real measurement when that time will be. But for now? We're here to continue our business plan of: Be the The Best Brewery in Tennessee. From there? We'll see.

Congrats to Athletic Brewing Co. on their $50M raise at an $800 million valuation. Bill Shufelt has built an impressive company and is leading the non-alcohol beer segment. A lot of people asked me if Athletic Capital invested in this round. We didn't. Here are the 3 reasons why: 1. Valuation - Despite Athletic Brewing being a fast growing, category leading brand, the valuation doesn't make sense to me. Private equity investors usually target investment returns of 3-4x. At an $800M valuation, that means that Athletic has to grow to $2.4-$3.2B company. This would make it approximately the same valuation as publicly traded Samuel Adams. Beyond its namesake beers, Samuel Adams also owns Truly, Angry Orchard, Twisted Tea, and Dogfish Head. It does $2B/year in revenue compared to Athletic's ~$100M in revenue. I'm doubtful Athletic will generate $2B anytime soon to reach the revenue required for a 3-4x return. 2. Market Size - Athletic Brewing owns ~20% of the non-alcohol market, which means that the total market for brewer's revenue is ~$500M (the market size is larger if you account for retail revenue, which is ~2x brewer revenue). If Athletic holds onto its 20% share, the non-alcohol market has to grow 20x for Athletic to reach the revenue of Samuel Adams. I am doubtful that the market grows 20x anytime soon, as the alcohol market goes through fads every few years (remember Smirnoff Ice... Lime a Ritas... Hard Ciders... Hard Root Beers... Hard Seltzers...). Non-alcohol beer is having a moment due to a post-covid hangover, but history says that it will not last, and won't grow 20x... 3. Market Share- Even if the non-alcohol beer market grows 20x, I am doubtful that Athletic Brewing holds on to its 20% market share. Unfortunately, Athletic Brewing is viewed as a craft brewery. The largest craft brewery in the US is Yuengling, and it owns ~10% of the craft industry. There is a long tail of ~10k craft brewers that make up the other 90% and consumer preference tends towards local breweries. All of these local breweries can make non-alcoholic beers, and many are now starting to because they see Athletic making money. This will lead to increased competition and declining market share as local breweries grow their offerings. My guess is that Athletic will have less than 10% share of the non-alcoholic beer industry in three years (and the industry will be smaller than expected). For these reasons, I don't think that Athletic's valuation grows much further. Maybe someone like Dr. Pepper/Coke/Pepsi buys the company for $1 billion to put a toe in the beer cooler, but I don't think they can justify much beyond this. Therefore, I don't think this round was a good investment opportunity. Let me know if you think my reasoning is flawed and we should have invested. https://lnkd.in/gqWMB2vG

CBP CONNECTS: Portland, ME June 10-12 "Beer Before Liquor: Adding a Distillery to Your Brewery" Panelists: Bill Heafy (ABS Commercial) Eric Meyer (Cahaba Brewing) John Quade (Batson River Brewing & Distillery) Matt Albrecht (River Drive Cooperage) Craft beer is all about innovation and more breweries are diversifying their product lineup to reach more potential customers. As you seek to grow, expand your audience, and increase profits, adding a distillery may be something to consider. We will dive into why our panelists chose this model, strategies for success, lessons they’ve learned, and items for you to consider if looking into a similar concept. In this session, we will explore the strategic considerations, potential opportunities, and operational challenges of seamlessly integrating a distillery into your existing brewery. Register now: http://cbpconnects.com/

6 groups account for ~65% of global beer production Over the past two decades, companies such as Anheuser Busch InBev, Heineken or Carlsberg have consolidated hundreds of beer brands under their roofs, creating an illusion of choice for consumers around the world. Take the five most valuable beer brands according to Brand Finance for example, four of which belong to AB InBev, which owns world-famous brands such as Budweiser, Beck’s, Stella Artois, Leffe, Modelo and Corona. And while the company was forced to sell the U.S. business of the latter two to Constellation Brands due to antitrust concerns in relation to its acquisition of Grupo Modelo, it still goes to show what a wide variety of international brands the world’s largest brewing group owns. You could easily go to a bar, try five different beers from five different countries, nay continents, without realizing that AB InBev was your exclusive beer provider for the evening. And while we have seen a boom in independent craft breweries over the past few years, their output is still dwarfed by the aforementioned global players. According to the Brewers Association, America’s 9,118 operating craft breweries produced 24.8 million barrels (around 30 million hectoliters) of beer in 2021. AB InBev alone produced nearly 20 times that according to official company figures tracked by hops specialist BarthHaas. Meanwhile, the 40 largest brewing groups in the world, accounted for 91.4 percent of global beer output in 2021, showing how small the impact of independent brewers is at a global scale.

AB InBev-owned Budweiser Brewing Group UK&I has revealed that Euro 2024 resulted in 5.8% value and 5.1% volume growth in the beer category, with the return of the football season likely to drive more at-home drinking moments. England’s long run (more…) The post Budweiser Brewing Group Reveals Trends In Beer Category During Euro 2024 appeared first on KamCity.

What do you think Hamdi Ulukaya, the founder of Chobani will do with Anchor Brewing Company? He announced the purchase last month and the path forward isn’t clear. Based on trends in the craft beer industry over the last decade, here are a few potential scenarios for the brand: 1. Expansion and wider distribution: Many acquired craft breweries use the newly found resources to expand production and distribution. After Lagunitas Brewing Company was acquired by Heinekin, it was able to significantly expand its presence in international markets. 2. Maintaining independence: Some breweries maintain a high degree of autonomy. New Belgium Brewing, after being acquired by Lion Little World Beverages (a subsidiary of Kirin), has maintained much of its independent operations and decision-making. 3. Product innovation: With access to more resources, some acquired brands increase their focus on developing new and experimental beers.Ballast Point Brewing Company after its acquisition by Constellation Brands (and later sale to Kings & Convicts), continued to release new varieties and styles. Chobani milk stout perhaps? 4. Facility expansion: Many acquired breweries invest in expanding their production facilities. For example, Founders Brewing Co., after partial acquisition by Mahou San Miguel, expanded its brewing capacity significantly. Any bold predictions on what might be next?

Molson Coors to Invest £100m in UK Brewery and Beverage Network Molson Coors Beverage Company has unveiled ambitious plans to inject over £100 million into its UK brewery and beverage infrastructure over the next five years. This significant investment aims to enhance capabilities, increase efficiencies and support the company's growth in the UK market. Fraser Thomson, Chief Supply Chain Officer for Western Europe at Molson Coors, emphasised the strategic nature of this investment, by stating that: “This plan is an investment in our future, giving our people and brands the tools to fulfil our potential in the UK market while making strong progress against our sustainability targets". Key components of this investment include upgrading brewing capacity and packaging capabilities at Molson Coors' major UK facilities, notably the breweries in Burton-on-Trent and Tadcaster. The Burton brewery will benefit from a new 24-tonne high-speed can filler, capable of filling an impressive 120,000 cans per hour. Moreover, the packaging keg lines at Tadcaster and Aspall Cyder House will also undergo enhancements. Molson Coors is also directing resources towards Sharp's Brewery in Cornwall, supporting new and existing ale brands such as Doom Bar, Solar Wave Hazy and Twin Coast. This builds on previous investments, including a recent £13 million expansion at the Aspall Cyder House and a £21 million investment in a new canning line in Burton. Molson Coors' focus on upgrading its facilities reflects its commitment to meeting market demands and advancing sustainability goals. Furthermore, the company's growth in the UK market is highlighted by the success of its brands, particularly Madrí Excepcional. Thomson described Madrí Excepcional as “the country’s fastest-growing major beer brand in both volume and value sales” in late 2023, reinforcing the need for expanded brewing and packaging capacity. In sum, this substantial investment by Molson Coors is not only about modernising its infrastructure but also about empowering its workforce and ensuring environmental responsibility. Thomson added: “This is a landmark moment in our history as we evolve to meet the demands of our growing portfolio and bring new innovations in the years ahead, while continuing to reduce the impact our business has on the environment”.

Michael Roper, owner of one of the US's best beer bars, described Maine Beer Company thusly: "You could almost say that they are diabolically brilliant in their counterintuitive marketing strategy." If a brewery sticks to its guns long enough, and its beers are great enough, maybe those unorthodox choices become a point of distinction rather than a liability. That's what's happened for Maine, and it's set the brewery up for growth at a time when most other regional breweries are treading water. I dive into the brewery's decision-making, trade-offs, pricing, and more for this Brewing Industry Guide case study: https://lnkd.in/gSb-akKE