The whirlwind that is the Craft Brewers Conference is finally over. Through a haze of honky-tonks and jet lag, I’m still unpacking the week of beer business talk in Nashville.
First, if you missed Brew Talks, we got you. This week’s Brewbound Podcast rebroadcasts our conversations with the National Black Brewers Association and our out-of-state taproom conversation. Listen free here.
Plus, video replay of the entire event is also available, including Zoe’s conversations with Tennessee Craft Brewers Guild executive director Sharon Cheek, and then a chat about craft beer’s seemingly contradictory growth drivers with Dogfish Head’s Sam Calagione, Greater Good’s Colleen Quinn and Athletic Brewing’s Bill Shufelt.
A huge thank you to everyone who joined us for beers, networking and conversations.
Speaking of Brew Talks, we’re coming back to Boston on July 12. Get your tickets now.
Also in Nashville, Brewers Association chief economist Bart Watson gave a sobering talk about the challenges in finding growth. Watson shared that slow to no growth is craft’s new normal — and will continue to be until brewers figure out how to attract new consumers, break into new channels or find the next breakthrough.
BA president and CEO Bob Pease remains bullish on craft, saying “craft’s best days are ahead.”
The BA is also focused on modernizing trade practice rules, namely category management practices and large venue sponsorships. General counsel Marc Sorini offered a sneak peek at the trade group’s comments as part of the Alcohol and Tobacco Tax and trade Bureau’s comment period, which closes June 7.
Sorini and BA senior director of federal government affairs Katie Marisic broke down the state of play at both the state and federal level. Think DTC shipping privileges, franchise reform and defending the federal excise tax cuts.
In other news …
After losing the Constellation Brands and Sierra Nevada portfolios last year, Antioch, California-based Markstein Sales Company is adding 15 brands to its portfolio from Bay Area Distributing, as owner Ken Sodo prepares to retire. The new brands will add 350,000 case equivalents annually, bringing Markstein’s business to 5 million cases per year.
Among the new additions are Northern California-based brands Drake’s and Bear Republic, which merged earlier this year, as well as Japanese import Asahi, Dust Bowl Brewing, Famosa Imported Beer, Farmers Brewing, Full Circle Brewing, High Water Brewing, Shadow Puppet Brewing and Two Pitchers Brewing.
The National Black Brewers Association officially named Kevin Asato as executive director.
Younger drinkers remain “promiscuous,” according to Circana. The market research firm formerly known as IRI offered more insights in its state of beverage alcohol report.
Overall inflation (+4.9%) may be slowing but the Consumer Price Index (CPI) for beer both at home (+5.9%) and away from home (+5.1%) continued to outpace it in April 2023, per the U.S. Bureau of Labor Statistics (BLS).
Domestic shipments went in the red (-2.3%) in March, following consecutive positive shipment months to start the year, per the Beer Institute. Imports from Mexico also remain a bright spot.
A month after CBC, the BA is adding a new, pre-Homebrew Con event called Full Pour. It’ll take place in San Diego on June 21. Featured speakers include Watson, New Realm Brewing’s Mitch Steele and Beer Marketer’s Insights’ Chris Shepard.
Monster’s bet on alcoholic beverages is paying off so far. The company’s alcohol brands — The Beast Unleashed flavored malt beverage and CANarchy craft brands acquired in 2022 — grew net sales 204.4% ($46.3 million) year-over-year, with $20.5 million coming in Q1 2023.
Sazerac CEO Mark Brown plans to leave his role in June as part of “a long-signaled and eight-year succession plan,” that will see Brown move to the role of executive chairman.
Luxco, Inc., a subsidiary of Indiana-based whiskey giant MGP Ingredients, has acquired Penelope Bourbon for $105 million, the company announced Monday. MGP’s acquisition of Penelope builds on the company’s efforts to grow its own brands in the premium-plus American whiskey space.
That’s it for this week. Thanks again to everyone who hung out with us at Brew Talks and stopped us to say hi during CBC. We’re looking forward to doing more of it very soon. Details to come.
A huge thank you to Jess for covering for Zoe and I all week.
Finally, thanks to all of you for reading Brewbound and supporting us through your Brewbound Insider subscriptions. If you’d like to become an Insider, follow this link.
See you all next week.