July and August Newsletter FRANK B.FUHRER WHOLESALE COMPANY

FRANK B.FUHRER WHOLESALE COMPANY

July and August Newsletter

By Mike Pomranz How Will Coronavirus Impact Craft Beer? Updated June 23, 2020

Brewers Association predictions suggest small brewers need your support now more than ever. For generations, in times of stress, beer has offered an outlet: a chance to relax and a chance to socialize. Unfortunately, in these stressful times of social distancing, quarantines, and bar closures, 7/01/2020 the coronavirus has stripped beer of half its powers: It can still intoxicate, but it shouldn’t socially lubricate. So the question becomes what does that mean for the brewing industry? Clearly, fewer Inside this issue: people will be going out to drink, but will more people be stockpiling at home? And what about smaller breweries that rely on taproom sales?

COORS/DIAGEO/ 2-5 Yesterday, Bart Watson—chief economist for the craft beer trade group the Brewers Association BOSTON DIVISION (BA)—weighed in on “The Coming Economic Challenges Facing Craft Brewers.” Despite the title of his analysis, his assessment was about as upbeat as things can be at a time when entire industries are YUENGLING/ 6-13 at risk of getting decimated. Two things appear to work in beer’s advantage: One, it’s the kind of IMPORT/ CRAFT item some people may want to be well-stocked with during an emergency, and two, even in times of ANHUESER 14-18 economic trouble, people don’t necessarily give up their brewskis. BUSCH DIVISION Of course, on-premise sales at bars, restaurants, and breweries are in trouble, and Watson didn’t pull BREWERY NEWS 19-23 any punches, saying sales “are certain to fall.” And yet, for breweries that package their beer, “the short-term effects may be more mixed.” “Some consumers may actually buy more beer as they prepare to self-isolate,” he writes. “That said, beer is a luxury, and so others may buy less as they stock up on other goods.” For now, though, the numbers would seem to show that beer is a part of people’s prepping plan. For BA-defined craft breweries, sales volumes had actually been down 0.3 percent for the first nine weeks of 2020 compared to last year, but last week, sales jumped up 3.7 percent over the year before. “One week is a small sample that I typically don’t like to show, but these are unusual times,” Watson wrote. Special points of in- And what about long term? If the stock market is any indication, our economic situation moving terest: forward could be troublesome. But again, Watson speculates that beer as a category may be okay. “The good news is, although beer on average has performed slightly worse during recessions than • Yuengling COVID-19 during periods of economic growth, the differences aren’t huge,” he writes. “My oft-repeated phrase support on the subject is ‘beer isn’t recession proof, but it’s recession resistant.’” In general, beer has been relatively stable during economic downturns; though Watson also explicitly • Tailgate with Yuengling states, “Comparing a recession brought on by a novel virus pandemic to one brought on by bankers taking huge risky bets on the housing market isn’t taught in Econ 101.” • Coors Light College Foot- ball program The worst impact may be reserved for the smallest breweries. Watson told me via email that independent breweries—which now number over 8,000 and have consistently and significantly grown over the past decade—could be in trouble. “This will halt and perhaps reverse the growth in the • Labatt Is Showering number of breweries in the short-term,” he explained. “It’s impossible to predict how many breweries Essential Workers will close this year, but it’s going to be the highest number we’ve seen in recent years.” • Win Watkins Glen VIP His suggestion: If you have a local brewery you love, do everything you can to support them. Experience “Consider buying beer to go (if available) or purchasing a gift card from [your] favorite local brewery (or favorite five or ten),” he said. “Thousands of breweries around the country are currently seeing cash flow dry up and until the government steps in, they still have rent to pay.” COORS/DIAGEO/BOSTON DIVISION

Page 2 FRANK B.FUHRER WHOLESALE COMPANY Molson Coors to launch Coors Seltzer in July Coors Seltzer – A hard seltzer made with a mission to taste good and do good. Coors Seltzer is the first hard seltzer rooted in a higher purpose to give back, making it easy for consumers to make a positive impact on the world. MolsonCoors is partnering with Change The Course to protect America’s rivers that provide clean water to wildlife and millions of people. $1 per case is Donated to Change the Course River Initiatives. Coors Seltzer Variety Pack will include flavors: Black Cherry, Lemon Lime, Grapefruit and Mango. Only 90 calories, Gluten Free and 4.5% ABV. Package: 12oz Slim Can- New Year Round

Coors Light Summer Packaging

Coors Light is ready to chill along with everybody else this summer, decked out in thermochromic shades For a limited time, fans can get their hands on mountain-cold refreshment in these unique color-changing cans, perfect for backyard barbecues or days on the shore, ready to chill on any hot sunny day. They’re sure to inspire people to stock up and chill out this summer. Availability: Now!

The Official Craft Beer of the Derby

The Kentucky Derby is the second-largest most watched sporting weekend (behind Super Bowl) with 19.1 million viewers and is a significant social occasion that includes at-bar and at-home Derby parties across the country with more than 3.3 million Kentucky Derby viewing parties hosted each year in all major US markets. As the official craft beer of the Derby, Blue Moon puts a fresh twist on Derby party tradition and brings consumers the ultimate solutions for hosting. Make it a Once in a Blue Moon Derby