D.G Yuengling and Son (DGY) has agreed to swap territories with its joint venture with Molson Coors (TYC). In a letter to distributor partners last week, chief administrative officer Wendy Yuengling wrote that the brewery would trade its Louisiana, Arkansas and Mississippi territories to the JV for the yet-to-be-opened market in Michigan.
Yuengling wrote that Louisiana, Arkansas and Mississippi would be “more efficiently serviced” by the JV with production coming from Molson Coors’ production facilities in Fort Worth, Texas, instead of Yuengling’s brewery in Tampa, Florida. The transition will take place in the fourth quarter.
Yuengling wrote: “Given the proximity to Texas, this transition of the three DGY states of Louisiana, Arkansas and Mississippi to TYC provides potential logistics benefits, along with synergy of demographics with other TYC states, and the ease of aligning brands already brewed in Fort Worth. It also aligns several key retailer footprints, and provides more efficiency of Fort Worth capacity planning for the Yuengling brands.”
As for Michigan, Yuengling wrote that the state would “be more effectively” supplied by Yuengling’s Pennsylvania breweries.
She added: “No Michigan launch date has been set, but it will now be among future expansion markets for DGY (on top of the unopened New England states of Vermont, New Hampshire and Maine).”
However, the company plans to add Illinois through its JV in February via the Molson Coors network, Beer Marketer’s Insights reported last week.
Insiders can dive into Yuengling’s year-to-date scans through mid-June.
Year-to-date (YTD) through June 16, off-premise sales of the Yuengling portfolio increased +1.5% and volume (measured in case sales) increased +0.4%. Through mid-June, Yuengling is the 10th largest beer category vendor, with more than $226.5 million in off-premise sales and a 1.12% share of beer category dollar sales.
Yuengling’s overall trends flipped over the last four week’s with both dollar sales (-13.7%) and volume (-15.3%) declining double digits as they cycle comps to the 2023 gains during the conservative-led Bud Light boycott.
Yuengling Traditional Lager’s off-premise sales and volume declined -8% and -9%, respectively, YTD in Circana-tracked multi-outlet and convenience stores. Those declines accelerated to double-digits over the last four weeks, with dollars -20% and volume -21.6%.
The company’s second best-selling brand, Yuengling Flight, has increased dollar sales (+69.3%) and volume (+70.1%) YTD. Flight maintained its double-digit gains, albeit at a slower rate, over the last four weeks, growing both dollars (+28.8%) and volume (+32.7%).
Yuengling Light Lager’s YTD sales (+17.2%) and volume (+16.1%) were both up double-digits, although those trends fell into the red over the last four weeks with dollars (-13.9%) and volume (-14.9%) both in decline.