Press Clips: Utah Lawmakers Consider End of 3.2 Beer; Cheap Suds in Michigan

Utah Lawmakers Consider Ceasing Sales of Low-Alcohol Beer

With Colorado, Kansas and Oklahoma set to allow stronger beer to be sold in grocery stores in the next couple of years, Utah lawmakers have begun discussions on what to do if large suppliers such as Anheuser-Busch and MillerCoors stop making 3.2 percent alcohol by weight beer (4 percent ABV).

Utah grocery and convenience stores reportedly sell 94 percent of the beer in the state. The Utah Department of Alcoholic Beverage Control, which handles the sale of higher-alcohol beer in state stores, does not have the staff to purchase, store and distribute the extra product should production of 3.2 beer cease, according to the Salt Lake Tribune.

“The volume of beer that is being sold in the convenience stores and grocery stores is five times all the wine, heavy beer and spirits we sell at state liquor stores,” DABC executive director Sal Petilos said during a recent legislative committee meeting. “The DABC cannot realistically replace that market if there is a complete reduction of 3.2 beer.”

Meanwhile, David Davis, president and chief legal officer of the Utah Food Industry Association/Utah Retail Merchants Association, has suggested allowing grocery and convenience stores to sell beer with an alcohol by weight of 4.8 percent.

“By moving the alcohol content from 3.2 to 4.8, you are going to capture the lion’s share of the production-line beer that is out there, and consumers would not see some of these negative effects,” he told the committee.

Study: Michigan Has the Cheapest Cases of Beer in U.S.

With an average cost of $14.62, the state of Michigan’s domestic premium 24-packs are the least expensive in the nation, according to a study conducted by website Simple Thrifty Living.

Simple Thrifty Living gathered pricing data for Bud Light and Miller Lite from national retailers Total Wine and Walmart, selecting 10 stores in different zip codes in each state, mixing urban and rural areas.

Rounding out the least expensive states were California ($14.87), Illinois ($15), North Carolina ($15.23) and Connecticut and South Carolina ($15.96).

Pennsylvania ($21.98 on average) led the states where 24-packs cost the most, followed by Tennessee ($21.97), Texas ($21.66), North Dakota ($21.38) and Rhode Island ($21.10). Alcohol taxes and regulations in each state can also inflate the cost of beer.

Denver’s River North Brewery Moving Back into RiNo District

River North Brewery is moving back into its namesake Denver neighborhood. Earlier this month, the brewery announced plans to move its flagship taproom, along with a 5- to 7-barrel brewhouse, into a space at 3400 Blake Street. The brewery plans to open the taproom later this year or in early 2018.

“Once up and running, we’ll be brewing plenty of unique small batch beers that will only be available at Blake Street,” the brewery wrote on its website. “From stouts to sours to IPAs – some hazy, some bright as a bluebird ski day – the RiNo taproom will offer an ever-changing selection of one-off brews and classic River North beers, too. It will also feature a deep cellar list of vintage River North bottles, a 32-ounce Crowler machine for endless take-home options, and a steady rotation of the city’s best food trucks.”

River North’s Washington Street taproom will remain open in the interim, and the company will maintain the location as River North’s production headquarters for canned and bottled beer.

Sierra Nevada “Insiders” Drink 37 Beers Per Month

Earlier this year, Sierra Nevada began surveying its customers in an effort to get a better feel for consumer demand for its products. The move appears to be aimed at helping Sierra, the third largest Brewers Association-defined craft brewery, begin chipping away at declining sales (down 7 percent in 2016) by responding to changing consumer tastes.

In an email linking to its June survey, Sierra Nevada shared a few takeaways from its first “insider” survey. Among them:

  • 79 percent of respondents like hop-forward beers.
  • The average survey respondent drinks 37 beers in a month.
  • Survey respondents’ three favorite Sierra Nevada beers are Pale Ale, Celebration IPA and Torpedo Extra IPA.

In the June survey, Sierra Nevada asked respondents several questions, including “what makes a beer craft?” Sierra also asked respondents to identify which brands were “craft,” listing Lagunitas, Ballast Point, Goose Island, Stella Artois and Sam Adams, among others.

Anheuser-Busch InBev Selling 2 German Brands

In the latest divestiture move following its acquisition of SABMiller, Anheuser-Busch InBev has begun the process of selling two small German beer brands — Hasseroeder and Diebels — by issuing information packets to prospective bidders, according to Reuters.

Hasseroeder and Diebels are only available in Germany, but both brands boast high profit margins and could sell for several hundred million euros, according to Reuters.

Octopi Brewing Kills 3rd Sign Brewery Brand

Wisconsin-headquartered Octopi Brewing has pulled the plug on its house brand, 3rd Sign Brewery, according to Isthmus.

3rd Sign was approximately 8 percent of Octopi’s business — about 1,400 barrels in 2016 — and the company was projecting sales of 2,500 barrels this year, according to Madison.com.

Octopi, which serves as a contract brewery for several Midwestern brands, ceased production of 3rd Sign after its wholesaler, River City Distributing, was sold to Wisconsin Distributors, an Anheuser-Busch house.

Following the sale, Octopi had looked to recapture the distribution rights to its brand and begin self-distribution. But the company “hit a roadblock” with its wholesaler, which the brewer claimed was “asking for a huge amount of money, a daunting number for a small craft brewery.”.

River City was seeking $93,000, according to a Madison.com report.

3rd Sign has since filed a lawsuit against River City, challenging the state’s franchise law that handcuffs the two businesses together.

Lime-A-Rita, Dos Equis Drop Ad Agencies

Just months after launching a female-focused “Make it a Margarita Moment” campaign, Anheuser-Busch InBev has dropped FCB Chicago and opened a creative review for its Lime-A-Rita brand, according to AdWeek.

“We are proud of the work that was created from our collaboration with FCB Chicago and Lime-A-Rita, which has produced a number of memorable ads since 2015,” a Lime-A-Rita spokesperson told AdWeek. “As the brand evolves, we continually look to refresh our perspective and evaluate our agency structure.”

Lime-A-Rita volumes declined 23 percent in the fourth quarter of 2015. FCB reportedly launched Lime-A-Rita’s largest campaign in the brand’s history last year; Kantar Media reported that A-B spent about $15 million on measured media to promote the brand in 2016.

Heineken USA is also making a change, moving Dos Equis’ Most Interesting Man in the World campaign to a new ad agency.

Ad Age reported that Heineken has dropped Havas Worldwide, which created the campaign in 2006, in favor of Droga5.

“Droga5 is well-known for breakthrough advertising and we are excited to collaborate with them on the evolution of the campaign, as well as new ways to engage our consumers,” Heineken USA said in a statement.

Havas’ campaigns will run through the remainder of 2017, and Droga5’s work will emerge next year.

The move comes less than a year after Havas recast the Most Interesting Man in the World with a younger actor, Augustin Legrand, who replaced Jonathan Goldsmith.