Shane Lohman’s Post

There was some big beer news this week if you missed it. Tilray Brands added 4 Craft Brands via purchase from Miller Coors. This is about a year after buying 8 brands from AB InBev and bringing the total portfolio up to 20. This will land them around #4 in volume of craft brewers. There's a few things to watch that have my attention. 1. Does this move accidently challenge the previously acquired Shock Top? MC specifically says that this unloading frees them up to focus on brands like Blue Moon - the most direct competitor to Shock Top. “We have big plans to lean into above premium starting this year into next with a clear set of strategic priorities – from strengthening the core of Blue Moon and growing aggressively with new drinkers with Blue Moon Light and Blue Moon Non-Alc,” St. Jacques wrote. 2. This adds production capabilities around the country. That feeds the narrative that Tilray is building a massive beverage platform starting with beer and ultimately moving to Cannabis when the time is right. 3. Tilray's strategy with the previous brands was to crash threw a tidal wave of new products and see what happens. I imagine you'll quickly see the same from these 4. I don't see a lot of brand building happening though, and the pace of change is creating some really opaque brand positions when consumers need clarity more than ever. I think this plan has short term benefits, but long term detriments - maybe that's the point?

Ballast Point brewery was sold to Constellation Brands for $1 billion in 2015 … Yet craft beer sales ‘chinks in the armor’ we’re already showing in 2015 — craft beer was over-supplied in a crowded market. Constellation had made a huge mistake. They overpaid for a business in a declining marketplace — Constellation needed to cut their losses. Its distillery business was spun off to a new company, Cutwater Spirits, in 2017 and subsequently purchased by Anheuser-Busch in 2019. Also, in 2019, Kings & Convicts announced it was buying Ballast Point from Constellation. While Constellation took a huge haircut in selling to Chicago-based brewery Kings and Convicts for an “undisclosed price and terms,” a pittance of Constellation paid for Ballast Point a mere four years earlier. Now Kings & Convicts has closed Ballast Point brewery operations and subcontracts out all brewing, canning, packaging and distribution for Ballast Point. Across town in Chicagoland, Heineken was struggling with Lagunitas’s soft-sales and heavy expenses. A month ago, Lagunitas announced they’re closing the massive Chicago brewery, taproom and merch store. There’s more, too (notably CANarchy’s sale), as Monster Brewing is closing production facilities rght and left. And none of this is because of the pandemic. Tastes and habits stated changing 10 years ago. Never expand, or buy, in a declining market. The days of wine and roses are long-past. “Cha-cha-cha-changes, turn and face the stranger changes…” — David Bowie Source: Beerconomy PRO (Coming Soon!) #Beer #CraftBeer #NonAlcoholicBeer #Cider #Microbreweries #Taprooms #Brewpubs #Taverns #ConsumerBehavior #BrandAwareness #EmergingTrends #BusinessIntelligence “The best beers are the ones we drink with friends.” — Beerconomy Cheers🍻! ✦✦✦ Stephen Carter King Chief of Growth and Marketing and Strategy, Beer Market Analyst and CEO of Beerconomy sharing beer market trends, insights, data and forecasts • Thought Catalyst • Advisor • Sherpa • Speaker • Publisher of ‘The Beerconomist’

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:

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.

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.

Adnams plc’s core Brewing & Brands segment has been the primary driver of growth, expanding from £29.9 million in 2021 to £33.8 million in 2023, likely due to the company’s beer and spirits production and distribution operations. Additionally, the Pubs & Hotels segment has experienced significant growth, increasing from £13.9 million in 2021 to £20.1 million in 2023, reflecting Adnams’ successful diversification into the hospitality industry. However, the Retail segment has seen a decline in revenue, decreasing from £13.4 million in 2021 to £11.1 million in 2023, suggesting potential challenges or shifts in the company’s retail strategy. In terms of segment contribution, the Brewing & Brands segment accounted for approximately 51% of Adnams’ total revenue in 2023, followed by Pubs & Hotels at 30%, Retail at 17%, Central Operations at 2%, and Central Management contributing a negligible amount.

Initial thought on #NBWA (America's Beer & Beverage Distributors Conference): There was a coordinated and resounding call to action for strategic focus on the On-Premise bar/restaurant channel. Reading between the lines, or my take, #BevAl #brand owners and wholesale partners are negligent if they lack a clear, collaborative, and actionable On-Premise strategy. I'll paraphrase a few industry titans' perspective: - Maggie Timoney (Heineken USA) The on-trade is so important. Social connectivity is so important. Brands are built in the on-trade. It's a special channel. - Jim Koch (The Boston Beer Company) On-Premise drives Off-Premise. It's easy for a marketing org to write a $10m check to an ad agency for social media impressions. It's tougher to hire 75 sales people to build brand advocacy in On-Premise. Holistically, what's going to give me better return? Spend on people! - Bill Shufelt (Athletic Brewing Company) We want to win in every On-Premise bar, even if it's one case per month. One beer at a cool pizza bar results in three cases sold off premise throughout the year. Now multiply that by a million! I argue the On-Premise opportunity is not unique, or limited, to Beer. In subsequent posts I'll dissect the finer points of the conversation and share my personal thoughts. CGA by NIQ / NielsenIQ To anyone thinking, yes, I would love to focus on On-Premise but dropping pallets is way safer (read profitable) for delivery professionals than lugging 1/2bbls down old staircases - #pickleball is a dangerous game too.

In today's CBD: Two of the largest Black-owned breweries, California's Crowns & Hops Brewing Co. and Full Circle Brewing Co., have struck a watershed alliance to leverage its members’ strengths and show up at market in a much bigger way. The new shared resources platform is dubbed “Circle of Crowns Beverage Group” (CCBG). The alliance “combines two leading Black-owned brands and centralizes production, sales and marketing between the two companies,” per announcement. Production will be centralized at Full Circle. Currently, the brands produce about 10,000 barrels collectively. It’s about “unlocking untapped opportunities” in the craft market, by "leveraging retail and venue diversity programs." Historically, Black suppliers have lacked the infrastructure to address these opportunities on a wide scale. CCBG also includes the historic Speakeasy Ales & Lagers brand, one of the oldest in San Francisco, and Sonoma Cider. "As you know, there's 9,000-plus breweries out there, and there's only 1% that are Black-owned," Arthur Moye, Full Circle founder, told CBD. "And I think, during a good period of the last half a decade or so, people have wanted to support Black-owned businesses. So you have major retailers reaching out to those 1%; you have distributors reaching out to those 1%; but then there hasn't been a structure by which they could significantly respond, because that 1% is mostly represented by people that don't have production facilities and can't create the margins and the economies of scale to sit on the shelves throughout the distribution networks of the chains." This starts to solve that. More here, we left the story open to all. https://lnkd.in/gsHErbeK

Buying for your brewery can either be time consuming, costly, frustrating or all of the above. We’ll go over 3 ways to buy smarter and see measurable savings. We’ll also review how to save time in the process, which can be just as valuable to team running a brewery today. The outcome is techniques you can apply in the coming months at your brewery. We’ll also cover a few examples of some recent success from different sized breweries applying these same buying practices. My name is Dan Klasen and I’m the Founder and President of the Beverage Federation. The Beverage Federation is a Group Purchasing Organization that makes purchasing simpler for brewery/winery/distillery owners and suppliers. We help you overcome purchasing hurdles so that you stay profitable. Several years ago, before starting the Beverage Federation, I learned the hard lesson with my own business that lots of little expenses and mistakes will catch up. My company had millions in revenue, employees, IT, legal… We had all the things that you’re supposed to have as a business, but, regardless of how many extra hours I put in, we still struggled with profit margins. Eventually, we had to close our doors, which was the single hardest thing I’ve ever had to do in my professional career. Had I known then what I know now about the power of purchasing, things would have been a lot different. The Group Purchasing Organization (GPO) model has tremendous potential for the beverage industry. I see hundreds of great small/medium breweries, wineries, and distilleries suffering from the same problems that I had years ago. They are all doing their purchasing, spending too much money and time when buying, and not maintaining relationships with high-quality suppliers. Huge thanks to CDR BeerLab + ABS Commercial for all your support on our Fall Virtual Conference. Join us in-person for CBP Connects San Diego Half workshop, half networking San Diego, CA | December 10-12, 2024 Grab your spot now at http://cbpconnects.com/

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”.