Beer Garden Troubles in NYC, Boston
The liquor license of New York City’s oldest beer garden — The Beer Garden at Bohemian Hall in Astoria — has been suspended for violating the state’s COVID-19 guidelines, QNS reported.
The Beer Garden and nine other restaurants and bars in Queens had their liquor licenses suspended recently, the outlet reported. More than 130 restaurants and bars in New York have faced suspension since the start of the pandemic.
According to the New York Post, on August 8, investigators warned The Beer Garden that customers were not allowed to stand and consume alcoholic beverages outside the premises. That same evening, investigators found 20 customers “standing and drinking outside of the establishment’s outdoor area, ignoring social distancing guidelines without facial coverings.” Investigators went inside the establishment to find 20 people lined up at the bar for drinks in violation of Gov. Andrew Cuomo’s executive order issued in mid-March.
The Beer Garden closed on Sunday.
Meanwhile, in Boston, the Boston Licensing Board held a meeting Thursday with the operators of several beer gardens who allegedly have not enforced guidelines requiring masks and social distancing, WHDH Boston 7 News reported. There have been 311 complaints about customers not adhering to the guidelines, including allowing long lines outside of the premises to form, customers not wearing masks or social distancing while waiting in those lines, and not wearing masks when ordering or picking up food and alcoholic beverages.
Operators face revocation of their outdoor dining licenses. According to Eater Boston, a couple of complaints about Cisco Brewers’ beer garden in the Seaport acknowledged enforcement within the beer garden but noted that the reduced capacity is creating lines of 50 to 150 people who are not social distancing.
Bart Watson: Hard Seltzers to Pass Craft in Off-Premise Dollar Scans
Dollar sales of hard seltzers in off-premise retailers will soon surpass craft beer sales, Brewers Association chief economist Bart Watson reported recently, citing data from market research firm IRI.
“[S]eltzer has emerged almost overnight into a huge category that may not have caught up with craft’s sales levels just yet, but is on its way,” Watson wrote.
Nevertheless, craft beer is holding onto its share, and overall craft beer sales would look better without a pandemic forcing on-premise closures.
Watson noted that there’s been a “slowdown” in the growth rate, but that growth rate is still in the triple digits (140% year-over-year during the latest four-week period). That’s the slowest year-over-year growth over the last year and a half. Watson conceded that is partly due to out of stock issues and also tougher comparisons to the previous year.
Watson also looked at who is drinking hard seltzer, citing info pulled from the BA’s annual Nielsen survey. Although that survey comes with some caveats, Watson wrote that the percentage of craft beer consumers who drink seltzer at least once a month has grown from 28% in 2018, to 36% in 2019 and 52% in 2020.
Weekly craft drinkers are also consuming seltzer more, with the percentage drinking seltzer once a month growing from 49% in 2018 to 70% in 2020, and those drinking both craft beer and hard seltzer weekly growing from 33% in 2018 to 51% this year.
“Increasingly, craft drinkers are seltzer drinkers,” Watson wrote. However, it’s not necessarily coming at the expense of craft but more so mainstream lagers.
There’s much more. Read it here. Also, for craft brewers looking at getting into the space, the BA’s Brewers Publications is releasing a book called “How to Make Hard Seltzer,” by Chris Colby, on September 7.
Jose Cuervo Joins Hard Seltzer Race with Playamar
The hard seltzer space continues to get more crowded. On the heels of Coca-Cola’s Topo Chico and Sparkling Ice’s Spiked hard seltzer announcements — and with Monster mulling an entry itself — Jose Cuervo has released Playamar, a hard seltzer made with Jose Cuervo tequila.
Playamar — in lime and grapefruit flavors — checks in at 90 calories, 4.5% ABV, with zero carbs and sugar. The offerings — sold in 12 oz. 4-pack cans for around $11.99 — are available in Colorado, Delaware, Georgia, Illinois, Indiana and Ohio, according to The Spirits Business.
Meanwhile, Nick Greeninger, who last served as director of business development for Future Proof, has launched Tolago Hard Seltzer. Greeninger, who is serving as CEO of Tolago, previously worked in branding and marketing roles for Saint Archer and BeatBox Beverages.
Tolago plans to differentiate by making its product with “all-natural ingredients, including ethically sourced fresh fruit juices, purees, and natural botanicals from Southern California, as well as fair-trade certified 100% organic agave nectar from Mexico.”
Tolago is 5% ABV and comes in four flavors: Ginger Pear, Guava Mango, Cherry Rose, and Agave Lime. The offerings are available in 6-, 12- and 24-packs with suggested retail prices of $12.99, $24.99 and $49.99, respectively. Single-serve cans are available for $1.99. Young’s Market will be distributing the product in California in September.
And another craft brewer is getting into the seltzer game. The Spoetzl Brewery plans to begin sales of Shiner Straight Shooter hard seltzer in Texas retailers by the end of August, according to the Dallas Morning News. Shiner Straight Shooter will be available in four flavors — wild cherry, lemonade, mango and grapefruit and lime — and sold in 6- and 12-packs of cans. The seltzer is 4.5% ABV, with 90 calories, zero carbs and zero grams of sugar.
Wholesaler Purchasing Expands in July 2020
After posting a record high index of 81 in June 2020, the National Beer Wholesalers Association’s (NBWA) Beer Purchasers’ Index — a survey of wholesalers’ purchasing behavior — registered a 70.5 in July 2020. Readings above 50 indicate expansion, while readings below 50 show contraction.
Driving purchases in July 2020 were FMBs and hard seltzers, which posted an index of 94 for the second consecutive month. Those purchases also outpaced the July 2019 reading of 81.
Imports posted a 59 reading in July. Although the segment expanded, the reading was below the July 2019 index of 65.
The NBWA noted that premium lights (71), regulars (58) and below premiums (57) “all continue to post historically high readings in July” and continued a four-month streak of posting higher readings than craft and imports.
Two segments — craft beer (41) and cider (37). — contracted.
Beer Imports -15% in June 2020
The Beer Institute offered a look at its monthly import-export report for June. The trade group noted that volume trends improved from May 2020 to June 2020. Import volumes declined 15.1% in June, and now stand at down 13.8% through the first six months of the year.
Volumes from Mexico declined 7.9% in June, and are down 13.4% year-to-date, due to brewery closures and slowdowns in April and May caused by the pandemic.
The situation was much worse for imports from Germany and Italy, which were down 45.8% and 88%, respectively. The decline in imported German beer amounted to more than 1 million barrels, while Italian beer declined 922,665 barrels.
Reuters: Bira Considers Sale
Bira maker B9 Beverages is considering a sale of as much as 20% of the company, according to Reuters.
“We’ve been looking for a combination: (an) international beer company as a strategic investor and a separate financial partner,” CEO Ankur Jain told the outlet. “We’ve been talking to beer companies that are not competitive in India or have minimal operations in India.”
Headquartered in India, B9 Beverages is 45% owned by Sequoia Capital and 30% owned by Jain’s family.
Reuters reported that sources said Kirin Holdings has held talks with B9 Beverages. But a Kirin spokesman also told the outlet that there was “absolutely no discussion at the moment.”
A source told Reuters that “Bira is really struggling financially at the moment and they badly need a lifeline.”