Big Beer

Rob Sands will step down as CEO of Constellation Brands on March 1, 2019, the New York-based alcohol beverage company announced today. Assuming the role from Sands will be Bill Newlands, who joined Constellation as chief growth officer in 2015 and took over as president from Sands in February.

William “Bill” Coors, the former chairman of the Adolph Coors Company, died Saturday at the age of 102. Coors, the grandson of Adolph Coors and heir to the family brewing business, died at his home, according to a statement released by Molson Coors. “Our company stands on the shoulders of giants like Bill Coors,” Molson Coors president and CEO Mark Hunter said in statement.

Constellation Brands reported its second-quarter fiscal 2019 earnings today, which were highlighted by 10.1 percent growth in beer depletions (sales-to-retailers) and an 8.7 percent increase in shipments (sales-to-wholesalers) for the comparable three-month period ending August 31. Net sales of Constellation Brands’ beer portfolio increased 10.5 percent during the quarter, to more than $1.5 billion.

During Boston Beer Company’s annual Great American Beer Festival breakfast, founder Jim Koch unveiled a new series of Samuel Adams ads and announced a new grant program that will give $1 million to early stage food and beverage companies. Koch said the new series of folksy ads, which highlight hop selection in Germany for Samuel Adams’ flagship Boston Lager, focus on “craftsmanship” and “artisanal values.” The ads end with the tagline: “Brewed inefficiently since 1984.”

In this week’s Press Clips: Anheuser-Busch plans to feature NBA and MLB athletes in ad campaigns; Celis Brewery assumes sales responsibilities for Uncle Billy’s and Pedernales brands; the Beer Institute releases domestic tax paid estimate for August; and more news.

Midway through 2018, Lagunitas Brewing Company is the only top five U.S. craft beer brand gaining dollar share, according to CEO Maria Stipp. Speaking to Brewbound, Stipp shared the company’s results through the first half of 2018, noting that Lagunitas ranks fourth in dollar share (up 4 percent) and sixth in volume (up 5 percent) through July 14, according to data from market research firm Nielsen.

On the same day that it announced a $4 billion investment into Canada’s Canopy Growth Corporation, Constellation Brands also laid off dozens of employees tasked with selling the company’s craft and specialty beers throughout the U.S. Constellation — whose craft portfolio includes Ballast Point in California, Funky Buddha in Florida and Four Corners Brewery in Texas as well as Mexican import brands Corona, Modelo and Pacifico — terminated around 60 of its 100 or so craft and specialty reps, a source familiar with the situation told Brewbound.

Anheuser-Busch announced several personnel moves on Tuesday, including changes to its U.S. marketing and North American sales teams. In separate notes to the company’s wholesalers, chief marketing officer Marcel Marcondes and chief sales officer Brendan Whitworth discussed the changes, which are part of North American CEO Michel Doukeris’ commercial reorganization plan.

In this week’s edition of Last Call: Boston Beer founder Jim Koch dines with President Trump; Buffalo Wild Wings considers sports betting; Interior Secretary Ryan Zinke’s ties to a Montana brewery project come under scrutiny; a federal appeals court rejects a challenge to the MegaBrew merger; and more news.

Following the release of Craft Brew Alliance’s second-quarter results on Wednesday, CEO Andy Thomas hailed his company’s financial performance as the “strongest validation” yet that CBA is a “company transformed.” During a call with analysts and investors today, Thomas said CBA is now in its “strongest operational and strategic position” company history, which he attributed to the growth of the Kona brand, a reshaped CBA portfolio that now includes three smaller craft partners, a rationalized brewery footprint, improved gross margin, and a “far more profitable business model.”

Craft Brew Alliance (CBA) today reported its second-quarter earnings, which were highlighted by a 2 percent revenue increase, to $61.8 million. CBA attributed the uptick in net sales to increased shipments of the Kona brand, and increases in average unit pricing, despite continued Widmer Brothers and Redhook declines.

After just six months, MillerCoors has pulled the plug on Two Hats, a light beer brand that was targeted at 21- to 24-year-old consumers. The company announced the decision to cease production of the beer, which will remain on retail shelves until early 2019, in a letter to employees and wholesalers on Monday.

Molson Coors Brewing Company today reported its second-quarter earnings, however the financial results took a backseat to news that its Canadian business division had formed a joint venture with a Quebec cannabis company. The JV between Molson Coors Canada and HEXO, a recreational cannabis “sister brand” to The Hydropothecary, a licensed producer and distributor of medical cannabis, will be structured as “a standalone start-up company” led by its own board and management team.

Boston Beer Company’s return to growth continued for a second consecutive quarter. The company — which makes the Samuel Adams, Angry Orchard, Twisted Tea, and Truly Spiked & Sparkling products — yesterday reported its second-quarter earnings results, which were highlighted by a 10.2 percent increase in net revenue to $273.1 million. For the 26-week period ending June 30, Boston Beer’s net revenue was up 13.2 percent, to $463.6 million.