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The Hot Are Getting Hotter

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The Hot Are Getting Hotter Winter 2016 | V.87 ORIGLIO BEVERAGE THE HOT ARE GETTING HOTTER Retail Edge Seasonals The Beer Guy New Products Programs RICK CHAPMAN OF CORONADO BREWING CO. | WINTER SELECTIONS | ALL ABOUT THE STOUT Letter toTHE TRADE The Year Ahead: Predictions for 2016 In This S WE CLOSE THE BOOK ON 2015, YOU HAVE ISSUE to admit, it was an interesting year in beer. The A total number of U.S. breweries hit an all time high. There are now more than 4,144 breweries in the country, topping the historic high of 4,131 breweries in Cover Story .........................1 1873. Breweries merged and others sold stakes to larger companies and private equity firms. Brewer Highlight .................2 Consumers and industry analysts took to social media to ponder what would become of industry stalwarts such as Lagunitas, Firestone Walker and Dogfish Head, which forged McLaughlin’s Beverage .........3 relationships with larger entities. Having spoken to the likes of Tony Magee (Lagunitas) and Sam Calagione (Dogfish), I can tell you with certainty that they remain dedicated to producing the best quality and most interesting beers humanly possible. Redstone American Grill ......4 It was a summer of hard root beer and shandies for sure, and the fall saw a renewed interest in Oktoberfest lagers. IPAs continue to be the best-selling style New Products .....................5 for independent breweries, but a few brewers seem to be pivoting their attention towards – of all things – lagers. That brings us to 2016. I’ve compiled a list of five immerging trends as Seasonal Selections .............9 predicted by beer bloggers, industry analysts and local beer folk. Here they are in no particular order… Available Year-Round • Get ready for nitro beers. Sam Adams and Guinness are rolling out new beers and they are not all stouts. Perfect for the Season ....... 18 • IPAs will become less bitter as aroma and flavor trump massive bitterness. Check out Heavy Seas Double Cannon and Sierra Nevada Programs ......................... 18 Beer Camp Tropical IPA. • Crisp, refreshing pilsners, which are difficult to brew since there is no place for off-flavors to hide, will come out of the shadows cast by Retail Edge ...................... 24 thousands of ales. Great Lakes Turntable Pils is a great example. • Lesser known German beer styles will become more prevalent. Look The Beer Guy ................... 25 for lemony, slightly acidic, Berliner weisses and salty/sour goses. Sierra Nevada Otra Vez is a gose, so that style is on point. • Creamy stouts flavored with chocolate, coffee, chai tea and peanut butter will continue to attract new fans. Dock Street Sexy Beast, Lagunitas Cappuccino Stout and Weyerbacher Sunday Morning Stout are a few to consider. So there you have it, five predictions for the New Year. It will be interesting to watch the year unfold and see if any other trends actually take hold. Like many of you, I am a fan of beer. I look forward to trying new beers and enjoying my stand-bys, which never disappoint me. That’s a big part of why our industry is so much fun. We are blessed to be living through a golden age of beer that shows no sign of tarnishing anytime soon. As always, thank you for your business and allowing us to be your partner in beer. May 2016 be your best year yet! ® Sincerely, Heady Times is published five times a year, courtesy of Origlio Beverage. Dominic Origlio President CoverSTORY The Hot are Getting Hotter Authentic Mexican imports are the only beers with sales trends that rival the craft beer category and Constellation Brands are among the top sellers. Y NOW YOU KNOW THAT MEXICAN BRANDS ARE THE DRIVING force behind the ongoing success of the imported beer category. BBut did you know that Constellation has five brands among the top 20 best-selling imports sold in the United States? Corona Extra, Modelo Especial, Corona Light, Pacifico and Negra Modelo are all part of Constellation’s portfolio. In addition to their status as best-sellers, Modelo Especial and Corona Extra are the number one and two leading growth brands in the country. Corona Extra alone accounts for 25% of the import beer market and so it is not surprising that it is the best-selling imported beer in the United States. The newly designed Corona Extra can is one reason for that brand’s growth. The package represented more than 40% of Corona’s volume growth in 2015. Modelo Especial, up 18% this year, is growing in all 50 states. Consumers purchased more than 60 million cases in 2014 and its market share has doubled in just five years. Its growth isn’t expected to slow down anytime soon. Constellation sees a huge opportunity for the brand to grow beyond its loyal base of Hispanic fans. Their research revealed that 86% of general market male beer drinkers are aware of this iconic brand, but only 40% have ever actually tasted it. To capitalize on this fact, Constellation will hit the air waves in 2016 with television ads aimed at English speaking consumers. The campaign, called Discover the Especial, focuses on educating general market consumers about the brand’s heritage and full flavor taste. Corona Light continues to garner its share of devotees as well. Last year the beer was available on tap for the first time. Corona Light connects with both male and female consumers and it contains only 99 calories. The brand’s latest advertising will tout Corona Light’s flavor versus other light beers. Rounding out this group of best-sellers are Pacifico and Negra Modelo. Pacifico remains a strong discovery brand on the East Coast as the bulk of its national sales come from the western United States where it is popular among surfers. And Negra Modelo continues to show great momentum – its sales have increased by nearly 11%, but more interesting than its sales trends is the niche this beer has carved out for itself. Negra Modelo’s unique flavor makes it great for pairing with food which makes it very attractive to anyone who considers themselves a foodie. One industry analysist remarked that the brand sits at the “intersection of imports and craft.” No wonder it is the #13 Import Growth Brand. The Constellation Brands have an extraordinary growth story and many industry professionals don’t doubt that Constellation will continue to grow share in the United States. But one person is absolutely convinced that Constellation will see impressive sales trends for many years to come. Rob Sands, the President and CEO of Constellation Brands – a guy who puts his money where his mouth is, made a bold prediction back in February while speaking to Wall Street stock analysts during a routine earnings call. Said Sands, “We think that doubling the business over the next ten years is certainly a doable number based on what we think is going to happen in the beer market and in particular how imports are going to continue to grow.” www.origlio.com HeadyTimes v.87 1 BrewerHIGHLIGHT Rick Chapman Coronado Brewing Co. ROTHERS RON AND RICK CHAPMAN opened a beach town brewpub in their Bhometown of Coronado, California in the mid-90s when the state was home to only a few breweries. Their dream was to offer exceptionally balanced beer, that’s authentically inspired by their West Coast roots. Coronado Brewing Co. helped build the West Coast landscape for craft beer, developing flavor profiles for their abundantly hoppy ales that breweries nationwide look to replicate. In 2014, the brewery received the prestigious and highly coveted industry awards for Champion Mid-size Brewery and Champion Brewmaster at the World Beer Cup in Denver, beating out thousands of breweries from around the globe. With all of the kudos bestowed upon Coronado, which will celebrate 20 years of brewing this year, the passion to brew exceptional beer with an undeniable coastal vibe is just as strong as it was in 1996. market. “We launched in Philly a “After winning the awards, we now hold ourselves at a higher decade ago because of its standard,” says co-owner Rick Chapman. “Our growth has vibrant craft beer scene. escalated, so we have embarked on a multi-million dollar Philly’s pioneering bars expansion to keep up with standards and capacity. and craft beer drinkers We’ve added four new 240-barrel tanks, more silos are very astute. and purchased an additional building to create a They continue to larger production facility.” Outside of the increased set the bar for the capacity will be the introduction of cans to craft beer scene, Coronado’s lineup in 2016, and a new year-round globally.” IPA called Stingray will launch globally in January. [Product description on page 7.] “This is the first Coronado has time we have expanded our year-round portfolio been extremely since 2012 and we’re stoked about the beer,” successful in says Chapman. “We’ve launched small batches in achieving their California to stellar reviews and sales. We are also goals, but the adding a pale ale called Easy Up to our new can California-based lineup in April. And we will be introducing two new brewery has had to seasonal beers in 2016 – Berry the Hatchet in May deal with the drought and Pierless Imperial Brown Ale in November.” that has affected the entire state, making the In addition to the expansion, cans and new beers, the brewery’s brewing process a bit more logo and packaging have been redesigned. “As we have grown, challenging. “Being that we live in a coastal we recognize that we need a more focused and consistent brand desert, we have always been conscience foundation,” says Chapman.
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