Does ‘Sober Curious’ Pose a Threat to Bev/Al Marketers?

Posted on October 3, 2021 by Joel Whitaker

The Wall Street Journal is noting that a “sober curious movement” is building online.  The story posted on WSJ.com Sunday morning and will, we suspect, run either Monday or Tuesday.

“Sober curious, or gray-area, drinkers suspect they drink too much but say the term ‘alcoholic’ doesn’t accurately describe them,” The Journal explains.  So they don’t join Alcoholic Anonymous, which is free, opting instead to pay anywhere from $14 a month to $197 a month for an online service.

Women make up the majority of the users of the services, which say many members have joined to curb pandemic drinking.

Do these services pose a threat to alcohol beverage marketers?  Maybe.  But we don’t think it’s a particularly serious threat, since the users of such services typically are people who suspect (or know) they drink not in moderation but to excess.  Also, unlike AA which advocates for a strict never-touch-a-drink policy, the new services concede that a drink now and then is not necessarily a bad thing.

Nonetheless, these services are something marketers should keep an eye on.  And if they find the services are hurting sales, consider offering a nonalcoholic or dealcoholized version of their product.

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Simply Wall St Finds ABI’s Returns Aren’t Growing

Posted on October 3, 2021 by Joel Whitaker

Back when a gaggle of Brazilian investment bankers were stalking Anheuser-Busch InBev, we observed that they might be good in seizing control of companies, but their marketing chops left something to be desired.   Nothing since they deposed the Busch family from controlling the leading U.S. brewer has changed our opinion.

Slowly, Wall Street is coming to that conclusion, too, using the metrics that especially appeal to investment bankers.  They latest is Simply Wall St, a Australian-based website with 4 million users worldwide that covers 100,000 stocks in 95 countries.  It took a look at ABI’s returns and finds them, well, disappointing.

“Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine,” Simply Wall St explains.

And how does ABI stack up?  “We aren’t jumping out of our chairs at how returns are trending,” it says.

ABI’s return on capital employed is 7.4%, below the 9.1% figure generated by the beverage industry. “The returns on capital haven’t changed much for Anheuser-Busch InBev in recent years. The company has consistently earned 7.4% for the last five years, and the capital employed within the business has risen 20% in that time. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don’t provide a high return on capital,” it says.

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Sugarlands in Multi-Year Sponsorship of New Orleans Saints

Posted on October 3, 2021 by Joel Whitaker

The agreement makes Sugarlands Shine the “Official Moonshine of the Saints.” As part of the deal, Sugarlands Distilling Co., Gatlinburg, Tenn., will also produce two specialty products unique to the New Orleans market and surrounding areas.

The first is Voodoo Punch, a lightly carbonated canned moonshine cocktail featuring a blend of tropical fruit including pineapple, coconut, citrus and a hint of cherry and the first canned moonshine cocktail to feature official NFL marks.  It was released during Sunday’s game against the New York Giants.

Release of Voodoo Punch follows the debut earlier this month of Sugarlands’ first ready-to-drink (RTD) canned moonshine cocktail, One-Two Punch.

In addition, Sugarlands will release a limited-edition Voodoo Punch Moonshine, which commemorates 55 years of thrilling Saints football history. Voodoo Punch Moonshine is made from Sugarlands’ signature shine, blended with the taste of tropical fruit punch, coconut, citrus and a hint of cherry. Voodoo Punch canned moonshine cocktail, Voodoo Punch Moonshine and other Sugarlands products will be distributed in the state of Louisiana through Republic National Distributing Co.

As part of the partnership, The Corner Office, a specialty cocktail tavern that opened at the Superdome in 2018 is being rechristened Sugarlands Distilling Co. at The Corner Office.

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Sycamore Partners Completes Acquisition of Ste. Michelle Wine Estates

Posted on October 3, 2021 by Joel Whitaker

As expected, Sycamore Partners, a private equity firm specializing in consumer, retail, and distribution investments, said it completed its acquisition of Ste. Michelle Wine Estates from Altria Group, Inc.

“We believe Ste. Michelle Wine Estates’ outstanding portfolio of iconic wine brands have tremendous potential for continued growth and success,” said Stefan Kaluzny, managing director of Sycamore Partners. “We look forward to working with the team at Ste. Michelle Wine Estates to build on its position as the largest wine company in the Pacific Northwest and third-largest premium wine company in the U.S.”

“We are thrilled to partner with Sycamore in this exciting new chapter for our team, as we move forward as an independent, privately held company,” said David Dearie, Ste. Michelle Wine Estates’ Chief Executive Officer. “With the benefit of Sycamore’s support and expertise, we will be well-positioned to continue to draw on our rich heritage to provide our customers with exceptional wines from the world’s premier regions and legendary wine producers.”

Kirkland & Ellis LLP served as legal advisor to Sycamore Partners.

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F.Y.I. —

Posted on October 3, 2021 by Joel Whitaker

Painless, Silent Organ Damage Seen in Covid ‘Long Hauler’ Study

Injury to the blood-filtering organ can occur among people who recover from the coronavirus at home, and escalates with the severity of Covid, Bloomberg reports. Even non-hospitalized patients with no renal problems have almost a twofold higher risk of developing end-stage kidney disease, compared with someone who never had Covid.

The findings, reported Wednesday in the Journal of the American Society of Nephrology, highlight yet another pernicious burden of the pandemic that’s sickened more than 200 million people globally.  9BLOOMBEERG)

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CBrands Top Stock Pick for Credit Suisse. Here’s Why

Posted on October 1, 2021 by Joel Whitaker

That recommendation will hold through year-end, Credit Suisse says, citing Constellation Brands‘ “healthy depletions, minimal seltzer exposue and margin upside” along with expected improving supply and “steady on-premise performance.”

It’s an example of how staying focused on the fundamentals, and not chasing every hot trend, can work wonders for investors in a company’s stock.

To be sure, depletions are expected to run below shipments tis quarter, says Credit Suisse analyst Kaumil Gajrawala, who notes off-premise has showed as consumers shifted channels during the Covid-19 Delta surge.

In New York Stock Exchange trading, Constellation closed at $210.69, down 0.51% Thursday.

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