Beyond Beer

Beer consumers are settling into the “next” normal — and that means increased sales in the convenience channel, according to Nielsen VP of beverage alcohol practice Danelle Kosmal.

During the Q&A portion of the call, Monster CEO Rodney Sacks was noncommittal when asked about the company’s potential interest in launching an alcoholic beverage product, specifically a hard seltzer.

Kalamazoo, Michigan-headquartered Bell’s Brewery will enter its 42nd state later this year, with the addition of distribution to Oklahoma. Bell’s, the seventh largest Brewers-Association-defined craft brewery, will be partnering with Republic National Distribution Company of Oklahoma.

The Boston Beer Company has hired marketing executive Don Lane as its new vice president of the Truly Hard Seltzer brand. Boston Beer is investing $85 million to quadruple production at its nearly 90-year-old Cincinnati production brewery, according to a press release.

Even amid persistent out-of-stock issues, Boston Beer Company’s Truly Hard Seltzer helped drive the company’s depletions (sales to retailers) growth to 46% in Q2. Boston Beer founder Jim Koch conceded Thursday that those inventory issues will last for the rest of the summer.

On this week’s Brewbound Frontlines, Danelle Kosmal, VP of Beverage Alcohol Practice at Nielsen, analyzes hard seltzer sales trends during the coronavirus pandemic, and leaders from Press Premium Alcohol Seltzer, Nauti Hard Seltzer and Bubs Hard Seltzer discuss how their regional and national brands are competing in the fast-growing segment.

The billion dollar weeks keep coming for the beer category in off-premise retailers. Beer category sales (beer, FMBs and cider) in off-premise channels increased 14.9%, to $1.007 billion, for the week ending July 11 compared to the same week one year ago, according to market research firm Nilesen. That makes eight consecutive weeks of beer category dollar sales in excess of $1 billion.

Mark Anthony Brands’ long-time senior vice president marketing Sanjiv Gajiwala will depart the maker of White Claw and the Mike’s Hard Lemonade franchise at the end of the month, according to a memo president Phil Rosse sent to wholesalers.

Kombrewcha CEO Garrett Bredenkamp is looking to the hard seltzer segment for inspiration as the hard kombucha brand backed by Anheuser-Busch’s ZX Ventures looks to compete in the fast-growing segment. As such, this fall, Kombrewcha will introduce two new flavors — Blood Orange and Mango Pineapple — to a 12 oz. 4-can variety pack, which also includes existing offerings Berry Hibiscus and Ginger Lemon.

Energy drink maker Monster Beverage could be entering the more than $2 billion hard seltzer segment, according to an analyst’s report. Stifel Financial analyst Mark S. Astrachan speculated that the energy drink maker is considering entering the alcoholic beverage market, “most likely” with a hard seltzer.

Nearly 60% of Drizly users ages 21-26 plan to drink hard seltzer this summer, the on-demand e-commerce marketplace and delivery platform for alcohol beverages, found during its second annual consumer survey.

Constellation Brands, which begins its financial year in March, had a rollercoaster of a first quarter for FY 2021, with net sales declining 6%, to $1.9 billion, but beer depletions (sales to retailers) increasing 5.6%.