Print Page   |   Sign In   |   Join IABR
News & Press: Industry News

IABR Industry Report

Wednesday, September 30, 2015  
Share |


(MARCH 2015)

Craft Beer and the Big Dance “If craft beer ever wants a place in March Madness beyond beer writers’ seasonal brackets and pre-game meetups at taprooms and brewpubs outside NCAA venues, it may have to do everyone a favor and acknowledge that beer has just about no place in the college game at all. And that the best beer drinkers and brewers are those mature enough to appreciate it one beer at a time.” Read the full industry report here by Jason Notte, who writes for The New York Times, Huffington Post and Esquire.


Pop Marketed Like Craft Beer: Mountain Dew is set to roll out DEWshine, a soda sold in a bottle resembling the packaging of craft beer. The craft craze is making brands revamp their image -- much to the scorn of the public and craft beer makers. Mountain Dew is no exception, it is trying to join the millennial trend with a new product that is made with real sugar rather than high-fructose corn syrup and is "inspired by the brand's roots in the backwoods of Tennessee," said spokeswoman Jennifer Ryan. It will be sold in four-packs of glass bottles for $3.99. It's unclear whether the product will be caffeinated but it is likely it will as tradition with other products. Those from the craft industry and food and beverage watchdogs criticized the new angle. "The line between alcoholic and non-alcoholic beverages is intentionally being blurred by producers of both," Michael Scippa, director of public affairs at the advocacy group Alcohol Justice, told USA Today. "Producers of high-sugar-content and high-alcohol-content beverages grow their markets by appealing to young people." DEWshine is non-alcoholic. Source: UPIA Russo-Baltique Vodka


Martini Chilled by 1,000-Year-Old Ice: Just imagine dining at the Burj Al Arab flagship Al Mahara restaurant in Dubai, delighting in your Wagyu Carpaccio appetizer while sipping a $10,000 martini in a glass of Swarovski crystal that has been served on the rocks with ice mined from the melting Svartisen glacier in Norway's polar circle. Svartisen is mainland Europe's lowest lying glacier and it is located in Norway. The name comes from two elements, Svard meaning black, and isen meaning ice. The ancient ice is not black, however, but dark blue and turquoise. Extracting the ice will require specially developed heavy and robust mechanical/hydraulic equipment for use atop the glacier and the ice blocks will be removed and flown by helicopter to a Oslo warehouse where it will be distributed to the worlds most exclusive and luxurious restaurants and bars in Dubai, London and New York. The ice cube is said to audibly crack in pieces once alcohol is poured over it and the "ice cubes hiss and pop as they melt-they practically sing to you while you sip." The cube melts slower than regular ice and is said to taste like mineral water so that the cocktail will never taste diluted. Source: Daily KOS


Cincy Brewer Updating and Expanding with $10 Million Investment: Rhinegeist Brewery is investing $10 million to purchase its historic building, install a massive new brewhouse, and build a private event space & rooftop bar. Currently, Rhinegeist self-distributes its beer in Cincinnati and Dayton, and also sells its products in Northern Kentucky via Riverghost Distributing. Demand for their hoppy, sessionable beers is still outpacing supply, despite maxing out production on their existing brewhouse. In fact, Cincy is so thirsty that the Brewers Association recently announced that Rhinegeist was the #1 top selling new craft brewery in the entire nation in 2014 (based on data from IRI, which compiles supermarket sales). That was a pretty shocking statistic, considering Rhinegeist only had its beer in a subset of regional supermarkets, and only for a portion of the year. So, just 18 months into its operations, the Rhinegeist team put the wheels in motion on its 5-10 year plan to buy the building and construct a new brewhouse to increase capacity. The project will allow Rhinegeist to grow from the near 11,000 barrels sold in 2014, to upwards of 30,000 barrels in 2015, and substantially more than that over time. The hard-working, beer-loving team at Rhinegeist has grown at a similar pace, from 5 people in early 2013, to over 50 today, with plans to reach over 100 by 2017. Source:


SBA Loans to Liquor Stores Under Scrutiny: In Oklahoma and Colorado, SBA provided more than $9 million in loan guarantees to start-up and grow liquor and tobacco small businesses in the past five years, data revealed. "This is a great example of government hypocrisy and inefficiency," said Openthebooks CEO Adam Andrzejewski after explained the expenditures it found. "It's not only wasteful, it's contradictory." Chris Chavez, SBA regional communications director, conceded there's a legitimate question about whether one agency should back businesses that other agencies are fighting to control. But Chavez said the SBA doesn't consider the nature of the business when guaranteeing loans, as long as it's a legal business. The SBA, for example, could not work with Colorado's legal marijuana dispensaries because pot is illegal under federal law, he said. In Oklahoma, Getting Place LLC and Joe's Liquor in Canute, Okla., received a $425,000 SBA loan guarantee in 2010, according to the data. In 2011, 2012 and 2013, The Cigarette Store in Boulder, Colo., had a series of transactions, including a $4 million loan guarantee in 2011 that appeared to be paid back the following year and a $1.05 million loan guarantee - $88,000 of which was paid back in 2013, data shows. Andrzejewski said it's time Congress takes a close look at the whole SBA loan guarantee program. "This has to lead to oversight hearings in Congress," he said. Source:


Alabama Extending Sunday Alcohol Sales: Alabama Gov. Robert Bentley has signed bills that will allow the sale of alcohol on Sundays in Wetumpka and Millbrook. Both city councils were unanimous in lobbying lawmakers to push the bills through the legislature so they are both expected to approve resolutions Tuesday. The bills allow retailers licensed by the Alcoholic Beverage Control Board in both cities to sell draft beer on Sundays. The bills specifically say the sale of keg beer isn't permitted. Licensed restaurants, hotels and nightclubs in Wetumpka will be able to sell alcoholic beverages between noon and 9:30 p.m. on Sundays. Licensed retailers in Millbrook that serve the general public, including hotels, conference centers and golf courses will be allowed to sell alcohol after 12 p.m. on Sundays. People who serve alcohol in Millbrook on Sundays will be required to complete responsible vendor training provided by the ABC Board. Wetumpka city leaders had pushed for Sunday alcohol sales for years but had difficulty getting the bills through the legislature. Source:


More Gas Stations Want to Sell Beer on Tap: Move over slushy machines. Gas stations and convenience stores are making room for a more adult beverage dispenser. Draft beer taps where customers can have 64-ounce growlers filled with beer to go have been installed in dozens of gas stations, grocery stores and other retailers around the country. According to industry reports, about 35 states allow retailers to sell the refillable, half-gallon glass jugs known as growlers, according to the Brewers Association, a national trade group. Several states, including Florida, Iowa and Missouri are considering laws to allow the practice. "It's definitely becoming more popular," said Paul Gatza, director of the Brewers Association, a national industry group. "The American public wants to be able to control their experience. They want to be able to take their beer home and pour as much or little as they want." One of the first retailers to embrace growlers was Sunoco. The fuel and convenience store company opened its first "Craft Beer Exchange" in 2011 in a Buffalo, N.Y., gas station. Today, Sunoco fills growlers in 65 convenience stores in New York and South Carolina. Each has six to 12 beers on tap ranging from $8 to $20 per half-gallon. Customers can bring in an empty growler or buy one for about $4. Employees trained to work the taps fill and seal the growlers. Some brewers remain skeptical. Brewers guilds in Colorado and California have voiced opposition to retailers filling growlers, Gatza said. The concern is that a dirty keg line or an unwashed growler could result in tainted beer that reflects poorly on the brewer. Source: Des Moines Register


Costco's Beverage Strategy: As one of the U.S. market's dominant beverage alcohol retailers, Costco holds enormous sway in connecting consumers with drinks brands from across the industry. Annette Alvarez-Peters, the retail giant's assistant general merchandise manager, beverage alcohol, addressed the 39th Annual Impact Marketing Seminar on March 19 to discuss the chain's alcohol strategy. Now the second-largest retailer worldwide with sales of $110 billion and 671 locations, Costco did $3.4 billion in beverage alcohol sales in its last fiscal year, ended in August. Alvarez-Peters noted that while Costco has grown exponentially since she joined the company in 1983, its merchandise philosophy has stayed largely the same. "We have a very limited selection, and 80% of sales are done with 20% of the items," she said. "Our goal is to offer substantial savings on all items and constantly rotate in new products." The smaller selection helps the company show a large variety of merchandise throughout the year while saving on inventory costs, she explained. In beer, wine and spirits, Costco carries a total of 250 SKUs, with the majority of items in rotation, creating a "treasure hunt" atmosphere rather than appealing to brand loyalty. "We've found that our members are prepared to give up brand loyalty for a deal on another quality item. We buy items, not categories, wherein each item stands on its own," Alvarez-Peters said, adding that margins are capped at 14% and a key objective is to trade consumers up. Costco's Kirkland Signature private label brand represents less than 20% of the group's beverage alcohol business, she added. Source: Shanken News Daily

Association Management Software Powered by YourMembership  ::  Legal