Craft Brew News

01/24/2020

(Courtesy of Brewbound – www.brewbound.com)


Off-Premise Beer Sales Top $37 Billion in 2019

Total beer dollar sales in 2019 increased to $37.2 billion in U.S. off-premise retailers, according to market research firm IRI.

Market research firm Nielsen reported that total beer, FMB and cider dollar sales in the U.S. grew 3.4%, to $39.6 billion, while volume sales increased 0.7% for the 52-week period ending December 28.

Dollar sales of FMBs, which include hard seltzers, increased 43.1%, to nearly $4 billion, while volume sales increased about 42% last year.

Flavored Malt Beverage (FMB), an alcoholic beverage made from original base containing malt, but then stripped of malt character and then flavored.

Nielsen, which breaks out hard seltzer segment data from FMBs, reported that off-premise dollar sales of hard seltzer increased 212.5%, to $1.5 billion, in 2019.

Much of the growth in FMBs is being driven by the triple-digit growth of Mark Anthony Brands’ White Claw offerings (+330% dollar sales) and Boston Beer Company’s Truly Hard Seltzer (+180.2%), according to IRI. Portfolio-wide White Claw dollar sales reached $833.6 million last year, while Truly brand family dollar sales topped $368.8 million.

Lagunitas Cuts Less Than 5% of Workforce in Restructuring Effort

Lagunitas Brewing Company is cutting less than 5% of its workforce as part of a restructuring plan, the Heineken-owned, Petaluma, California-based craft brewery confirmed today to Brewbound.

Lagunitas, which was wholly acquired by Heineken International in May 2017, declined further comment about the restructuring and job losses.

The latest round of job cuts comes about 16 months after the company slashed 12% of its workforce, in a move that impacted at least 100 employees.

Lagunitas showed signs of tightening its purse strings in October, when the company closed its Portland, Oregon-based “Community Room,” a venue for local organizations and non-profit organizations to host events at no charge with donated beer.

Molson Coors to Acquire Detroit’s Atwater Brewery

Molson Coors Beverage Company’s craft arm, Tenth and Blake, has reached an agreement to acquire Detroit, Michigan-based Atwater Brewing. Terms of the deal were not disclosed but the deal is expected to close in the next couple of months.

Atwater’s production volumes reflect a steady climb out of a turbulent dive in 2016. The brewery produced 40,225 barrels in 2014, 48,500 barrels in 2015 (+21%), 24,000 barrels in 2016 (-51%), 32,300 barrels in 2017 (+35%), and 35,500 barrels in 2018 (+10), according to trade group the Brewers Association.

In recent years, the company diversified its portfolio, adding hard seltzers and craft spirits. In 2019, Atwater partnered with the NBA’s Detroit Pistons to collaborate on Triple Double, a low-calorie, low-alcohol light ale.

Tenth and Blake includes the Jacob Leinenkugel Brewing Company, AC Golden Brewing Company, Saint Archer Brewing Company, Terrapin Beer Company, Hop Valley Brewing Company and Revolver Brewing.

BrewDog Tops 50,000 Barrels in 2019; Expands Alcohol-Free Line and Adds Nitro Series in 2020

Scottish craft beer maker BrewDog’s U.S. operations posted strong growth in 2019. Production at the Scotland-headquartered craft brewery’s facility in Columbus, Ohio, increased nearly 46%, to 53,000 barrels, chief revenue officer Adam Lambert told Brewbound.

In 2020, Lambert said BrewDog is asking its wholesalers to maintain focus on the company’s core beer portfolio, with an occasional shift to new product lines, including non-alcoholic offerings in the “AF” line and a nitro series, as well as limited releases.

BrewDog’s new nitro series will roll out in Q1 with a nitrogenated version of Jet Black Heart with espresso both on draft and in 16 oz. cans. Nitro beers will change seasonally. BrewDog believes there’s room in the market for more nitrogenated craft beers.

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