Firestone Walker is the latest top craft player to enter the non-alcoholic (NA) beer space by leveraging the brand equity of its biggest brand.
8ZERO5 blonde, an NA version of the Duvel Moortgat-owned craft brewery’s 805 flagship, will only be available in its home state of California following Labor Day. The beer will be sold in 6-pack cans.
Firestone Walker CMO Dustin Hinz told Brewbound that using the 805 brand family for the brewery’s first large-scale NA beer release gives it “a really strong brand position and brand recognition” at launch. He added that there is “a pretty sizable percentage of 805 drinkers” who are interested in an NA version.
“That instantly gives us another drinking occasion with our core customer and more share of fridge,” he said.
Firestone Walker chief sales officer Tony Amaral added that while he doesn’t believe that NA beer will ever reach 10% of the beer category, he sees “a good opportunity to grab quite a bit of business” if it becomes 3% of the category.
“It’s going to be a really disciplined launch in controllable, high-volume accounts both off- and on-premise,” Amaral said. “We’re not going to go shucking this thing everywhere out of the gate. We want to make sure we do it right.”
Amaral added that Firestone Walker’s leadership worked with its California wholesalers to pinpoint controllable chain grocery accounts with strong NA beer volume. They did the same in the on-premise, seeking accounts that make up 70% of 805’s draft volume.
Hinz recalled “one of the top buyers in the country” saying, “I don’t need another non-alc, I need 8ZERO5.”
“It reinforced that it was the right decision for us,” he said of the conversation.
The development of 8ZERO5 has been a two-year process, led by brewmaster Matt Brynildson. The beer was secretly tested in Firestone Walker’s taprooms under the codename “Good Decision.” Brewbound Insiders received a preview in our December 11, 2023, newsletter with a look at Good Decisions on the menu at The Propagator taproom in Venice (with some Brewbound Live attendees sampling as well). The beer was listed at 60 calories with “a delicate noble hop character” on the rotating draft menu.
Firestone Walker is not looking beyond 8ZERO5’s California launch, as Hinz reminded that the Golden State is the fifth largest economy in the world.
Much like 805 blonde and 805 Cerveza, 8ZERO5 will feature of roster of brand ambassadors known as “Authenticos,” including pro surfer Lakey Peterson, X-Games champion Tyler Bereman, downhill mountain bike pro Tyler McCaul, MMA fighter Tabatha Ricci and Cumbia punk rock band Tropa Magica.
“It’s just a natural fit within our athlete roster,” Hinz said, noting that several of the company’s “high-performance athletes” take breaks from drinking, whether it’s for the World Surf League, a UFC fight or the X-Games.
“A lot of the new campaign is really going to hit on the moments,” Hinz continued. “From the soundcheck to the afterparty, from the paddle out to the podium, the idea is there’s occasions within everyone’s ecosystem. When there’s a time to celebrate, there’s a beer for you. When there’s time to be focused on maybe a major feat of athleticism, we’re gonna have 8ZERO5 for those drinkers.”
‘Summer Of Cerveza’ Receives Firestone’s Biggest Media Investment Yet
Firestone Walker’s main focus is on making 2024 the “Summer of Cerveza,” with a push behind Mexican-inspired lager 805 Cerveza. It’s part of the largest media investment the company has ever made, Hinz shared.
For the summer, 805 Cerveza, the fifth best-selling craft beer in the Golden State, will receive top billing in an ad campaign across ESPN, Hulu, Meta and the streaming channels of the World Surf League. The spot will feature pro surfers Peterson and Nate Tyler; Tropa Magica; and pro skater Greyson Fletcher. The brand will also be backed by point-of-sale and out-of-home advertising throughout the season.
The company is making a concerted effort to get in front of sports fans, Hinz said. He added that the import business “is on fire” and the company is already seeing positive trends as 805 Cerveza in clear glass bottles shows up at retailers. In Firestone’s core three states – California, Nevada and Arizona, which make up 91% of the business – 805 Cerveza trends are accelerating: +17.3% in the last four weeks through March 23 in NIQ-tracked channels, compared to +7.2% in the 13-week and +5% in the 26-week periods.
The summer campaign continues Firestone Walker’s work to position the 805 brand family as a mainstream California lifestyle brand and steer it away from the craft label, Hinz said. He added that new drinkers entering the category aren’t asking, “What’s the best craft brand?” They’re seeking beer brands based on flavor, brand and ABV and less so on style.
“That’s one of the things that we have to continue to articulate to the entire business and consumers is that 805 is a wildly exciting premium California beer brand,” Hinz said. “And if we can do that and we can continue to look at it through that lens, I think we’re all going to be a lot more successful.”
Firestone Walker is working to reverse negative trends from 2023 following a series of price increases on 805 that “cratered” velocity, Amaral said. The company acknowledged the price sensitivity around the brand, and Amaral believes its price issues have been corrected as “velocities are returning to normal.”
“Basically, 7% to 10% puts us one price point above the prevailing price for import, and we believe based on as hard as we market, and how cool the brand is, consumers will trade up to 805 at that index,” Amaral said.
805 blonde ale is the top-selling craft beer in California and Nevada and the 13th best-selling craft beer in the U.S. with distribution in only 16 states. The brand’s trends are improving in the latest rolling four-week period (+7.6%) compared to 13-week (+3.1%) and 26-week (+2.8%) trends in its three core markets.
New Mind Haze IPAs, Campaign Aimed at Swinging Trends
Firestone Walker will support its Mind Haze franchise with a “Let Your Mind Wander” campaign this summer, including a trippy 15-second spot that will run across connected TV, digital media, trade and out-of-home advertising.
Hinz said the “brand positioning” for Mind Haze “wasn’t that strong” previously and noted a pair of branding misses with Double Mind Haze and Mind Haze Light IPA.
Now, the idea behind the brand is to serve as an “playground” for “flavor-forward, high-quality, ABV-driven beers” and a modern “facelift.” A pair of new high-ABV Mind Haze beers – Brain Melter imperial IPA (8.5% ABV) and Cosmic Crusher juicy imperial IPA (9.5% ABV) – earlier this year with a more psychedelic look. Over the last eight weeks, 74% of accounts have purchased those offerings in 19.2 single-serve cans at least four times or more.
“So the rate of sale is there,” Amaral said.
“I really truly believe that brands like Mind Haze and other hazy beer is a total gateway into the idea of beer,” Hinz added. “What we’re very focused on is not proactively turning consumers off with a style label, but trying to bring them in with flavor.”
Amaral added that the new Mind Haze variety pack has a 32% higher rate of sale than its predecessor variety pack. Meanwhile, Mind Haze 6-packs accounts have purchased an average of three cases each, he added.
“It’s literally a 40-point trend swing [for the] total Mind Haze family between where we finished ‘23 and where we sit coming out of the first quarter of ‘24,” Amaral said. “It’s too early to declare victory, but it’s definitely changed the trajectory of the brand.”
Cali Squeeze Becomes On-Premise Priority
The main focus for the Cali Squeeze brand is Blood Orange in both the on- and off-premise, Amaral said. Blood Orange draft has 35% of the distribution of 805 and has produced 60% of the volume of an 805 Blonde handle, the company shared.
“Outside of our three core markets – California, Arizona, Nevada – it’s contributing more volume to our total portfolio than it is in those core three states, and it’s the highest growth,” Amaral said. “If you look at California growth for Cali Squeeze in the three core, we’re up about +60% year-to-date, but if you look outside in our emerging markets, we’re up at about +168% to start the year.”
Blood Orange could be a lead brand as Cali Squeeze opens future states, Amaral said.
“While 805 is just an incredible brand under the same California branded lifestyle, 805 is a bit more of a mystery,” Hinz said. “It requires a lot of storytelling to explain what 805 means. With Cali Squeeze, it tells you right on the handle and right on the box. Cali Squeeze Blood Orange, it screams California, it screams flavor and it doesn’t require as much storytelling and effort as communicating the idea of 805.”
In NIQ-tracked channels in Firestone Walker’s core three markets, the brand is up +44.8% over the last rolling four-week period, with growth hovering in the mid-40s through the rolling 13- and 26-week periods.
The fruit-forward subbrand of beers will receive its own campaign, “Real Beer. Real Fruit. Real Life,” including a 30-second spot that will stream on Hulu, ESPN, YouTube, Meta and other social platforms, along with point-of-sale and out-of-home advertising. The goal is to develop the brand with the next generation of drinkers.
Cali Squeeze is also getting a new variety pack featuring the debut of Cali Squeeze Peach Pomegranate.
Hinz and Firestone Walker brand director Hannah Barnett joined the Brewbound Podcast earlier this year to talk about Firestone Walker’s portfolio of brands and the brewery’s ambassador partnerships. Listen to the episode here.