After reaching nationwide distribution in 2023, Bell’s Brewery has refocused on its core Great Lakes markets.
New Belgium CEO Shaun Belongie explained that the Michigan craft brand struggled in far away markets, leading the company to double down at home.
Belongie said the move has paid off now that distribution losses have been cycled after April/May.
“Now you can really see the brand in its stronghold in the Great Lakes and what it can do,” he said. “And we’re seeing really, really strong growth still from Big Hearted and some good results from the Hearted [IPA] variety pack.”
Belongie added that Bell’s is outperforming the craft segment in the Great Lakes, although trends down 2.5%. The brand is also attaining “significant share” gains and posted growth in June, driven by its key Hearted and Oberon families.
The Hearted family (Two Hearted, Big Hearted, Hazy Hearted, Light Hearted) is helping drive growth in June, Belongie shared. Although the Hearted family is “down a couple of points” YTD, it’s gaining around a half share point in the Great Lakes, he added.
Belongie touched on New Belgium’s revised innovation strategy, the potential addition of a non-alcoholic beer, Voodoo Ranger Hardcharged Tea’s Year 2 struggles and Kirin’s distribution alignments. Here are snippets from his conversation with Brewbound.
Incubation Approach to New Products Coming
New Belgium is shifting its innovation roll-out strategy moving forward. The company will leverage an incubation approach to new products outside of its core craft wheelhouse, doing “test-and-learn” launches in smaller footprints to “build out a velocity story” before expanding them, Belongie said.
“Oftentimes when you launch, especially a brand like LightStrike, it’s very hard to have everything right at the get-go,” Belongie explained. “Trying to evolve and adjust those on the fly nationally, it’s tough. Again, with that mindset that retailers have – hey, either it works or get out of here – it makes it that much harder to succeed.”
A New Belgium or Bell’s Non-Alc? Maybe
New Belgium is exploring opportunities within the non-alcoholic (NA) beer space, Belgonie said. However, he doesn’t believe the company has cracked the code on capturing attention in the crowded segment, he admitted.
“What’s going to be different about this? Why is this going to stand out in the category?” Belongie asked. “It’s going to take something significant to really answer those questions.”
As distributors have narrowed their focus to winning brands, launching an NA doesn’t carry the same weight as a new Voodoo Ranger offering.
“There’s no way this NA brand is going to be bigger than a Voodoo Ranger item,” he said. “It’s always going to be more incremental, and it’s always gonna be a bigger opportunity for us to do a Voodoo Ranger item than it is to do an NA.”
Hardcharged Tea Struggles in Year 2; Tiger’s Blood on the Way
A mentality emerging at retail from bev-alc’s blurred lines is that “everything is everything,” leading to a “lack of patience” for new products to develop, Belongie said. Buyers are now quick to pull shelf space and move on to other products.
Voodoo Ranger Hardcharged Tea has been among the brands to suffer distribution losses even after being the “No. 1 hard tea launch,” Belongie said. The brand’s rate of sale was “good but not great,” especially compared to the whole of beyond beer, leaving the company “caught off guard” when grocery buyers pulled around 50% of its distribution, Belongie said.
“We’re not living in a hard tea world, anymore,” he said. “We’re living in an all of the above world, of which hard tea is a part of. Then you throw on top of that, it’s a malt-based tea. And now there’s [vodka-based] Surfside and Sun Cruiser, and those are gobbling up a lot of interest and shelf space, so it just makes it a very challenging environment to participate in.”
New Belgium is focusing on the markets where the Hardcharged Tea has performed well, Belongie said. The company has added a second variety pack and a new 19.2 oz. single-serve flavor, Tiger’s Blood (7% ABV), which is a callback to the classic shaved ice flavor with a blend of watermelon, strawberry and a hint of coconut.
Kirin Ichiban Slowed By Distribution Shift
A longer than expected transition in distribution networks from Anheuser-Busch to Molson Coors, overlapping with hurricane recovery, hampered Kirin Ichiban through the first quarter, Belongie shared.
The company shipped nothing in January, he added. Kirin is now 90% aligned, which has led to increased points of distribution and share gains within the Japanese import space, he added.
“We’re seeing velocities increase. We’re seeing share gains,” Belongie said. “So just, there’s a lot of momentum behind this brand now.”
Catch up on previous coverage:
New Belgium Learns From Focused 2025; Mini Rippers in 25K Outlets; LightStrike Finds C-Store Groove
New Belgium CEO on Post-Helene Biz, ‘Lights Out’ Oberon Light Launch, Fat Tire Pricing