Last Call: A-B CEO Pens Farewell Note; Nelk Boys See ‘Multibillion-Dollar’ Opportunity in Hard Seltzer; GoPuff Launches NIL Program

A-B InBev CEO Carlos Brito Officially Steps Down

Anheuser-Busch InBev CEO Carlos Brito officially passed the torch Thursday to Michel Doukeris after 15 years with the world’s largest beer manufacturer.

Brito penned a farewell letter to investors and analysts yesterday, expressing his appreciation on his last day and his confidence for the company moving forward.

“I would like to thank you all for the time you have spent learning and supporting our company over the years,” he wrote. “You have asked the tough questions, challenged us to think about our business from different perspectives, shared insights from other companies and driven us to continuously identify and close gaps. We are a better company today because of what we have learned from you.”

Brito said A-B InBev is well-positioned for future success, citing continuous innovation and new connections with consumers through digital platforms. He also expressed pride in the company’s progress toward its sustainability goals, which he said it is on track to meet in 2025, as well as its diversity and inclusion efforts.

Doukeris, the previous president of A-B’s North American zone and U.S. business, assumed the role on Thursday. He was unanimously elected to the position by the company’s board in May.

In his new role, Doukeris will invest in and accelerate “what is already working”: category development, premiumization, beyond beer and direct-to-consumer digital transformation, he said in a release.

“I have no doubt that I am leaving the company in excellent hands,” Brito said of his “longtime friend and colleague” Doukeris.

Brendan Whitworth has also succeeded Doukeris as the zone president for North America and as CEO of A-B’s U.S. operations.

NBWA: FMB/Seltzer Dropped 25 Points in June 2021 Versus 2020

The FMB/Seltzer segment decreased 25 points in the National Beer Wholesalers Association’s (NBWA) June 2021 Beer Purchaser’s Index (BPI), to an index of 69, compared to June 2020’s reading of 94.

While a reading above 50 indicates there is still expansion in wholesaler purchasing behavior in the segment, the June index marked the hard seltzer segment’s biggest drop year-over-year. The “at-risk” inventory — inventory at risk for going out of code in the next 30 days — for the segment posted an index above all other segments in the industry, according to the report.

“The lower index relative to June 2020 indicates that more distributors are reporting they are ordering ‘about the same’ amount of product as the same time last year,” Lester Jones, the NBWA’s chief economist, said in a release. “This is not a big surprise as the segment has experienced significant amounts of distribution growth over the past 12 months.”

The overall reading for June 2021 (70) fell 11 points compared to June 2020 (81). At-risk inventory across the industry is still below 50, which the NBWA said signals continued supply constraints in the system.

Imports were one of two segments to index above June 2020 readings, growing from 66 to 72. While all other segments except for cider saw index declines year-over-year, premium lights (59) and craft (53) are continuing to grow. This is the third monthly reading above 50 for craft.

Regular domestic beer and cider both indexed at 40 (-22 and +3 year-over-year, respectively). Below premium (35) recorded the most contraction of the segments, falling 30 points from June 2020 (65).

Nelk Boys: Happy Dad Hard Seltzer First Step In Product Empire

Happy Dad Hard Seltzer is just the first in a line of products and services by the Nelk Boys, the Canadian YouTubers told the New York Times in a feature this week.

Nelk Boys member John Shahidi told the Times that they “have a network of drivers that can eventually deliver anything that’s in our ecosystem — whether that’s a hoodie or 12-pack of Happy Dad or protein bars.”

Happy Dad launched last month online and in liquor stores across California, selling out in both channels. The product is scheduled to launch in Nevada, Georgia, Massachusetts, New Hampshire, and Florida this month, as well as Texas, New Jersey, New York, and Canada in August, according to the Happy Dad website.

Shahidi said Nelk brands have the potential to compete with multinational corporations such as Amazon, Anheuser-Busch, and Apple.

“YouTube money is pennies compared to building businesses like a seltzer,” Nelk Boys co-founder Nick Forgeard said. “We’re not going to sacrifice our content or change to make $500,000 a month from YouTube. Maybe in the short term we’re not buying Lambos like other YouTubers, but we could have a multibillion-dollar business on our hands with this hard seltzer.”

GoPuff Among Companies Taking Advantage of New NCAA NIL Rules

The NCAA board of directors suspended rules Wednesday that prohibited college athletes from selling the rights to their names, images and likenesses (NIL).

Laws prohibiting schools from enforcing NIL restrictions went into effect Thursday. The latest adjustment from the NCAA will extend these freedoms to athletes across all other states.

As of Thursday, student athletes can officially make money through endorsements and other ventures — with the condition that they do not receive payments for their athletic achievements or as recruiting inducements, according to ESPN.

Companies have already started partnering with collegiate athletes, including GoPuff, an e-commerce, on-demand delivery service that operates in more than 650 cities. Dozens of college athletes have tweeted ads for GoPuff with the #GopuffPartner, including Ohio State’s Cameron Kittle and Tyreke Smith, and University of Nebraska’s Cade Povich.

“Beyond the biggest stars and household names, there are countless student-athletes across the country who are pillars of their communities and appeal to broad, devoted fan bases,” Marshall Osborne, GoPuff’s head of business development, said in a release.

GoPuff has partnered with Opendorse — an app that connects athletes with endorsements — allowing the company to offer brand deals directly to student athletes. According to a May Associated Press survey, at least 23 Power Five schools have made contracts with service providers such as Opendorse and INFLCR.

“This is a once-in-a-generation moment for college athletics, and we’re thrilled to partner with GoPuff to unlock real value for every college athlete,” Opendorse CEO Blake Lawrence said in the release. “We believe that NIL opportunities will exist for every college athlete, and GoPuff is making that a reality on day one.”

GoPuff has not disclosed how much it will pay participating athletes.

Walmart Sues Texas Over State Liquor Laws

Walmart filed a lawsuit against the state of Texas in Travis County District Court this week allegeding preferential treatment of other businesses, according to Law 360.

The latest lawsuit is part of Walmart’s continued effort to change Section 22.16 of Texas’s Alcoholic Beverage Code, which prohibits companies listed on the public stock exchange from owning a package store permit, which allows the sale of liquor. The company currently sells beer and/or wine in 588 Walmart and Sam’s Clubs locations across the state.

Walmart sued Texas in federal court in 2015, arguing the rule was discriminatory and violated the Commerce Clause of the U.S. Constitution. Although a federal judge in Austin initially sided with Walmart in 2018, the Texas Alcoholic Beverage Commision (TABC) won an appeal in the U.S. Fifth Circuit Court of Appeals. The U.S. Supreme Court denied Walmart’s request to hear the case in November 2020.

“Our Texas customers expect choice and convenience from their shopping experiences,” Lauren Willis, Walmart’s global communications director, said in a release. “Texas law arbitrarily and unfairly prohibits publicly owned businesses like Walmart from owning package liquor stores, preventing us from participating in the retail sale of spirits. Walmart is seeking a level playing field that allows us to better serve Texas shoppers.”

Oregon Grocers Petition to Sell Hard Liquor

Two Oregon grocery chains have filed petitions asking the state to allow the sale of hard liquor in their stores, the third such effort by grocers in the state since 2014, according to Willamette Week.

Laruen Johnson of Newport Avenue Market and Bill Caldwell of McKay’s Markets have begun gathering signatures for two initiatives: one that would allow grocers to sell craft spirits, and one that would allow them to sell all hard liquor.

“Our measures allow local, independent, and chain grocers that have safely marketed and sold beer and wine for over 80 years to sell distilled spirits, while creating a new and sustainable state revenue stream for addiction and treatment service,” Johnson said in a release.

The Northwest Grocery Association has backed the initiative, saying it will decide which ballot measure to pursue further in 2022 after signatures have been gathered. The two previous efforts have failed to make the ballot, most recently due to lobbyists directing resources to fighting tax increases, according to Willamette.

In Oregon, 65% of people support spirits being sold in grocery stores, according to a survey earlier this year by DHM Research, a Portland pollster.

Lara Krug Leaves A-B for Kansas City Chiefs

The Kansas City Chiefs named Lara Krug executive vice president and chief marketing officer this week.

Krug spent more than seven years in multiple marketing roles with A-B InBev. For the past three years she’s served as vice president of U.S. marketing for Stella Artois. During her tenure at A-B, Krug helped create campaigns for Super Bowl LIV (2020) and the 2018 FIFA World Cup.

“We are thrilled to welcome Lara to Chiefs Kingdom as part of our executive team and as the first executive vice president and chief marketing officer in club history,” Chiefs president Mark Donovan said in a release. “Her track record of success in brand marketing across multiple industries gives us confidence that her voice and expertise will be extremely beneficial for our organization.”

In her new role, Krug will be focused on building the team’s fan base locally, nationally and internationally and expanding its digital following and audience scale across all platforms. She will also be responsible for identifying opportunities to help internal and external stakeholders achieve key growth objectives.

Grubhub Releases Third Annual ‘State of the Plate’ Report

Grubhub released its third annual “State of the Plate” report this week, detailing the top food and beverage trends in the first half of the year for the online food delivery marketplace.

The top alcohol orders ranged from across several categories, according to the report. Dutch lager was the top seller, followed by hot sake, japanese beer, hibiscus margarita, and blood orange margarita. Finishing out the top 10 were aperol spritz, hard seltzer, peach paloma, pina colada, and mimosa.