White Claw Variety Pack #2 is #1 Growth Brand; Top 7 $$ Share Growth Brands All Seltzers
White Claw Variety Pack 2 is now easily #1 growth brand in industry and nowhere near supplying demand. It got 1.2 share of $$ (12 share of seltzer) in Nielsen all outlet for 4 weeks thru 6/13. What’s more, Variety Pack 1 is #2 growth brand, up 0.9 share of $$. Bud Light Seltzer and Truly Lemonade Variety Packs each got 0.7 share of $$ and were 3 and 4 growth brands respectively. Corona Seltzer, White Claw Mango and Black Cherry each got 0.5 of incremental $$ share, #5-7 $$ sales growth brands in period. Those 7 brands gained 5 share of $$. Right now seltzer growth far outpacing share gains of leading growth brands of last several years, Michelob Ultra and Modelo Especial, tho those 2 brands still gaining more $$. They are still up 27-28% each in latest 4 weeks, but only gained 0.3 share each.
June 23, 2020; INSIGHTS Express, Vol 22, No 134
More Constellation Forced Consolidation Coming in CA; Alford and Valley Notified; Trifecta
Last AB distribs with Constellation in Southern Cal got notified yesterday by co that they must sell brands within 30 days or get terminated. That’s mainly Alford Dist, way down by border in heavily Hispanic Imperial, CA. Alford sells about 100K cases of Constellation. And another nearby very small AB distrib, Valley, which only sells 20K cases or so of Constellation. Handwriting already on the wall for Alford and Valley earlier this yr, when Reyes Beer Division bought Molson Coors distrib Claypool in Imperial. Despite their majority Hispanic population, Alford and Valley reportedly both have share under 10 with Constellation brands, while rest of SoCal more like 30. Still, timing of this deal “heartless,” said one source, given that Alford recently got clobbered by COVID. Vast majority of its sales force out with virus at one point. But with beer declared non-essential in Mexico and largely unavailable there in Apr-May, huge influx of folks from across the border. So Alford sales reportedly went thru the roof. And some suggest Constellation actually waited before sending its latest “black rose,” to get past the worst of pandemic problem.
Here’s official statement from Constellation spokesperson: “We believe there are opportunities to accelerate performance on our brands to ensure we capitalize on growth prospects, especially in areas where we have lower share and focus. We consistently evaluate our business, industry dynamics, and route-to-market capabilities in order to make decisions that are in the best long-term interests of our ability to meet the needs of retailers and consumers.”
Then too, presuming the buyer is Reyes (safe bet), Alford and Valley likely to be well-compensated for their Constellation volume (7x GP in other CA deals). And Reyes likely to add to its volume yet again. That’s the trifecta. This was 3d CA development just this week that will bring incremental volume to Reyes. Recall, Diageo Beer Co notified 3 distribs that it wanted them to sell to Reyes within 30 days or get terminated. Then Reyes bought Elyxir in Watsonville, CA. And now this.
June 19, 2020; INSIGHTS Express, Vol 22, No 132