The Hot Are Getting Hotter
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Winter 2016 | V.17 FINLEY DISTRIBUTING THE HOT ARE GETTING HOTTER Retail Edge Seasonals The Beer Guy New Products Programs THE BOTTOM LINE ON MILLENNIALS | WINTER SELECTIONS | THE ART OF TASTING BEER Letter toTHE TRADE HOPE EVERYONE HAD AN ENJOYABLE HOLIDAY SEASON! In This As we begin 2016, I’d like to talk a bit about Millennials to remind ISSUE I you they are a major population force. There are 80 million Millennials in America who represent 25% of the population, with $200 billion in annual buying power. They are trendsetters who influence older generations, and they are more likely to try new and Cover Story .........................1 different beers/brands, over choosing a favorite. For this reason, it is important to have a few of the latest brews and innovations available in your portfolio. Here are a few product launches you might consider when Brewery Highlight ...............2 making your line-up revisions for this season. First, our friends at Firestone Walker are bringing 805 to Arizona. This light and refreshing blonde ale was crafted for the California lifestyle. It has already The Beverage Barn ..............3 exploded along the California coast, and I know it will perform well in AZ! 805’s subtle malt sweetness is balanced by a touch of hops, creating a versatile beer with a clean finish. Backed by digital print marketing and advertising at the Che’s Lounge .......................4 regional and national levels, through social engagement, and in store contests and events, consumers will be part of 805’s Central Coast experience. New Products .....................5 Another segment with new opportunities is Hard Soda. Hard Sodas grew over 89% in a 3-month period in 2015 and bring many new drinkers to the category. Millennials are asking for more choices of products, and Small Town Brewery has Seasonal Selections .......... 10 delivered with Not Your Father’s Ginger Ale, an addition to their portfolio which also includes the award-winning Not Your Father’s Rootbeer. At the end of January, MillerCoors will break into the Hard Soda segment with the launch of its first two Available Year-Round flavors: Ginger Ale and Orange. Made with real cane sugar, natural flavors, and Perfect for the Season ....... 15 only 4.2% ABV, this flavored malt beverage should appeal not only to Millennials, but also Gen X consumers looking for something different. Henry’s Hard Soda will have full national media and targeted local support and POS elements will create Programs ......................... 16 brand awareness to set Henry’s apart from other brands. IPA’s are the #1 craft beer style, and I don’t see that changing any time soon. Our newest version of this popular style is Guinness Nitro IPA. This balanced IPA Retail Edge ...................... 24 boasts robust hop aromas and is infused with nitrogen. With 5.8% ABV and 44 IBU’s, Guinness has created a new way to enjoy the flavors and aromas of the IPA style, while packaging in a format that allows for a smoother, more balanced The Beer Guy ................... 25 drink. Guinness is a proven innovator and will support the Nitro IPA at the national level through advertising and at the local level though in store activations. Speaking of the growing Nitro category (up 85% YTD) Samuel Adams will carry their reputation for quality into the segment with White Ale, Coffee Stout and IPA starting in January. Used as the 5th ingredient, nitrogen creates a stormy cascade, thick head and creamy mouthfeel. Brand support will come in the form of TV spots, social media, digital advertising, sampling events, and launch parties, along with various Point-of-Sale items. Change is constant in the beer business. Keep yourself relevant with your customers by keeping up with current trends and preferences of consumers. Your route manager is the best person to help you with this. I look forward to our continued partnerships this year! Heady Times is published four times a year, courtesy of Finley Distributing Co., LLC. Dennis Shields 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.finleybeer.com HeadyTimes v.17 1 BreweryHIGHLIGHT Firestone Walker IRESTONE WALKER BREWING COMPANY is renowned for crafting iconic pale ales and F pioneering barrel-aged beers on California’s Central Coast. Everything they do revolves around one goal: to make the world’s best beers. Brothers-in-law Adam Firestone, a.k.a. The Bear, and David Walker, a.k.a. The Lion, own the brewery together. Together, they dreamed of building an unparalleled regional brewery, one that combined the authenticity of Old World craft with the innovative spirit of California. Currently, 805 is only available in California. This approach was embodied by their patented Firestone Union oak barrel In the southern California grocery market it fermentation system, which was responsible for DBA’s distinctive oak- ranks #1 among overall craft beer brands, accented quality. This system was inspired by the famed Burton Union #4 in northern California grocery chains, fermentation method created in 19th century Britain. The Firestone Union and it’s in the top 20 among craft brands in method remains a centerpiece of the brewery, and Firestone Walker Brewing national grocery accounts – pretty impressive Company remains the only American brewery to ferment beer in a union of considering it is only distributed in one state. oak barrels. Distribution in Arizona is planned for early In 2001, fate intervened when the former SLO Brewing Company facility March 2016. became available in Paso Robles, right at the time they were outgrowing 805 promises to continue Firestone Walker’s their original small brewery. So they moved their brewing operations to this tradition of producing great beers. Matt and larger modern brewing facility just up the coast. his brewing team at Firestone Walker Brewing In another stroke of fate, they also inherited Brewmaster Matt Brynildson, Company earned “Mid-Size Brewing Company formerly of SLO Brewing Company, who quickly took the brewing operations and Mid-Size Brewer of The Year” honors to the next level. In the years since, Matt has established himself as one of once again at the 2015 Great American Beer the world’s leading brewmasters.