In California’s Coachella Valley, Peter Heimark, president and CEO of Indio-based Heimark Distributing, reported that it was “100 degrees and rising,” and shared that NA beers are taking off in the desert, among other observations.
Heimark Distributing’s beer portfolio includes products from Anheuser-Busch InBev (A-B), Tilray, Firestone Walker, Coronado, Karl Strauss and other California craft breweries. Below is our Q&A with Heimark, edited slightly for clarity.
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How would you describe summer trends so far?
Heimark: Summer trends leading into Memorial Day were really bad. Circana accounts were off 7% for Memorial Day week. We gained a little share probably because Mexican brands (mostly with Reyes) are getting hammered by the immigration situation in California. June so far is not much better.
Which new brands have momentum this summer and how can they keep it going?
Heimark: NA Beers are crushing it. [A-B’s Michelob] Ultra Zero and [Firestone Walker’s] 8zero5 are both doing extremely well. We are pushing aggressively into the on-premise. Athletic is carried by our competitor, but still doing well.
We just launched Happy Dad hard seltzer – not new to market, but new to us – and it is far exceeding expectations. Turns out beer wholesalers do know how to sell things like Happy Dad after all.
We also just launched Sunboy spiked coconut water, and we are having a lot of fun with it.
Which established brands are surprising you this summer?
Heimark: Budweiser! Although not up, it’s gaining share. Busch Light is not “surprising,” but has been such a non-factor in California before now. It is finally showing up.
On the competitive side, [Constellation Brands’] Modelo is feeling the brunt of the immigration scares, but Pacifico is doing very well.
What’s one trend (style/flavor/segment) that’s really working?
Heimark: N/A beers are really having their day in the (hot desert) sun.