Sebastien J.’s Post

Did you know that Mexico exports over 35% of the world's beer? Let’s take a look at how this global beer powerhouse continues to dominate the market 🍺 While the U.S. recently celebrated Labor Day—a top occasion for beer sales—beer isn't just an American favorite. This beloved beverage fuels a multibillion-dollar industry enjoyed across the globe, and Latin America, especially Mexico, plays a leading role. Mexico has outpaced traditional European beer giants to become the world’s largest beer exporter since 2010. With brands like Corona and Modelo leading the charge, Mexican beer exports brought in nearly $6 billion in revenue last year, far surpassing countries like Belgium, Germany, and the Netherlands. How did this happen? Strategic mergers and acquisitions played a key part. Heineken acquired Cervecería Cuauhtémoc in 2010, and AB InBev took over Grupo Modelo in 2013. Now, brands like Tecate and Corona are brewed in Mexico but owned by European companies, making Mexico a central hub for global beer production. Driven by the massive demand from the U.S., Mexico now controls over a third of the $17 billion global beer export market. Not bad for a country more famous for tequila and mezcal! 🍻 So, if you’re enjoying a cold Modelo—the top-selling beer in the U.S.—remember that Mexico has become a true beer-exporting powerhouse.

🚨 Major NA #beer News: On Tuesday, Athletic Brewing Co. announced it closed a $50 million equity financing round led by private equity firm General Atlantic, with participation from other investors. As part of the transaction, General Atlantic assumed a seat on Athletic’s board of managers. According to a press release, the company plans to use the funding to drive long-term growth. This includes renovating the recently purchased Ballast Point brewing facility in San Diego and expanding distribution to new international markets. Athletic is America’s fastest-growing non-alcoholic beer brand with over 19 percent of the category’s total market share, and according to NielsenIQ, is currently driving 32 percent of the category’s growth. Read more at VP Pro: https://lnkd.in/eAAeqF3q

I don’t really make a moral judgment on Tilray Brands' follow-the-leader approach to product "innovation." I'm much more interested in simply watching the relative newcomer to the US beer business feel around for the upper limit on over-extending its recently-acquired brands in real time. The company's line-extending tendencies (extendencies?) are especially transparent on one of the other breweries it scooped up from ABI, 10 Barrel Brewing Co., and its sub-brand called Pub Beer. Its expansion under Tilray’s ownership as been revealing. More: https://lnkd.in/gVCFiCFy

Lager led boost for Coopers defies national downturn A new lager beer release has fuelled strong sales growth for Australia’s largest independently owned brewer Coopers Brewery. The launch of Coopers Australian Lager has helped family-owned Coopers to post a 1.5 percent rise in total beer sales for the 2024 financial year, defying a year on year 2,.6 percent decline in total Australian beer sales. Coopers’ beer sales, excluding non-alcoholic beers, hit 78.7 million litres, up from 77.6 million litres the previous year. Profit-before-tax for the 2024 financial year was $32.8 million, compared with $28.5 million the previous year. #manufacturing #brewing @coopersbrewery Coopers Brewery https://lnkd.in/gChYdzDR

Potential HUGE consolidation pending in the alcohol industry: Is Boston Beer about to be acquired? Rumors have been swirling since last month that the $4B beer co is a takeover target. Some quick background and potential implications for the beer industry: Boston Beer has had a hell of a run since it was founded in 1984 by Jim Koch. The flagship brand- Sam Adams- is named after the US Founding Father who, turns out, was a brewer/maltmaster. Boston Beer has built a strong portfolio across beer/malt through M&A and innovation: - Sam Adams - DogFish Head - Truly Seltzer - Twisted Tea - Angry Orchard Their stock rocketed during Covid, but has come back down in the last year or so for a relatively flat 5 year net return. Consolidation is the standard in the alcohol industry: much of corporate strategy is fueled by M&A. In fact, many/most of the brands you'll see on shelves/bars are owned by a surprisingly small number of conglomerate holding companies. Beer's had a rocky last few years with sales normalizing after a covid-spike and seemingly endless bad press for the category. The bad press is critical because its amplified (and likely over exaggerated the situation) but its had a material effect on many public beer stocks. There was also a glut of beer brands launched after the craft beer boom of the late 2010's, so the entire category is due for somewhat of a shakeup. For all of those reasons, some consolidation in the beer industry makes sense right now. My gut is that it will be one of the large beer companies or a take-private strategy by a PE fund. In any case- I think it's a great buy for anyone who can afford it. Boston Beer's underlying portfolio is strong; if integrated into a larger beer organization, some obvious and immediate efficiencies will be had on distro, sales, marketing, supply chain, etc. There are also some interesting potential line extension efficiencies or tuck-in acquisitions that might complement the portfolio. In any event, I think we'll see more consolidation in the beer industry in the coming years, which will setup a big bull run for the category. Despite the rough few years for the space, I think the bottom is in and bright times are ahead. (https://lnkd.in/esbqfWG9) Whether or not Boston Beer actually gets acquired anytime soon, expect to see more beer brands (large and small) get scooped up by sharp roll-up strategies or aggressive larger companies. The industry was/is ripe for a bit of a clear out/integration of many brands that might be stronger together (and also a wipe out of some of the weaker brands). This provides the foundation for a more efficient beer market in the years to come. I fully expect to see a strong next decade for beer. The companies that make good strategic moves right now will be well-poised to capture some serious growth in the years to come. Exciting times ahead for beer!

NEW: Big news for the beer industry today: one of Britain’s best-known pub companies is severing its ties with brewing after selling the remainder of its beer business to Carlsberg for £206m. The 190 year-old Marston’s said on Monday that it had agreed to offload the outstanding 40pc stake in its brewery business as part of a push to focus on pubs. Money received from the Danish drinks giant will be used to help Marston’s pay down its debts, which have recently been racking up millions of pounds in interest. Carlsberg’s move for Marston’s came alongside a separate deal for Robinson’s maker Britvic, which it has agreed to buy after submitting an improved £3.3bn offer. A previous bid of £3.1bn was rejected in June, with the latest offer representing a 7.9pc premium on Britvic’s share price last Friday. Read more via The Telegraph

Tilray's acquisitions highlight an important truth: adding distribution alone doesn't ensure brand growth if the brand lacks the ability to resonate with consumers. Points of distribution do not automatically translate to rate of sale. Expanding to new markets isn’t just about increasing distribution—it’s about creating brand resonance. Simply adding brands to a portfolio does not guarantee increased sales or profitability for those brands. The craft beer industry, in particular, demands more than just analyzing numbers on a spreadsheet. It requires a deep understanding of brand identity, market plans, and effective distribution strategies—areas where I’ve seen brands either thrive or struggle firsthand. Without a clear plan to enhance these brands and make them resonate with consumers, Tilray risks repeating the mistakes of previous owners. Successful brand building is more than just expanding reach; it's about forging meaningful connections with consumers in each market.

Athletic Brewing raised $50M at a $800M valuation 🍻 General Atlantic led the investment, boosting the nonalcoholic beer brand's production and global expansion. No longer a buzzkill, Athletic Brewing Co.’s NA craft beers are in high demand: • Sales grew 60% YTD through June. • It holds 19% of the nonalcoholic beer market. • It became a top-20 US brewer by volume last year, making 258K barrels. Targeting the 41% of Americans seeking to reduce—but not eliminate—alcohol, its beverages are a healthier stand-in for social gatherings and recreational pursuits. Unlike functional beverages, NA beer is surging for what’s *not* in it. With younger generations ditching alcohol, more sober swaps will follow — and Athletic will be ready for another round.

Adding a distillery to a brewing business can be a big leap—but there are synergies that can help the cost and effort pay off. Here’s how getting into craft spirits can add value to your brewery while leveraging costs. https://lnkd.in/gd8jNah9

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