Edgar Garza

The US Beer industry landscape is changing fast. AB InBev's North America Normalized EBIT declined by over $1.3 B from 2022 to 2023. The volume market share decline (relative to Molson Coors Beverage Company and Constellation Brands) contributed to that EBIT decline by an amount of $400 Million. It has not helped that overall volumes between these three major players has declined by over 4%. It's a general sign of the headwinds facing the beer category as shopper and consumer preferences shift. For #ABInBev, that overall market decline cost them another $200M. A just less than 4% increase in Net Pricing contributed a +ve $560Million to the Normalized EBIT change, but was insufficient to mitigate the increased inflationary unit costs associated with Cost of Sales and the de-leveraging of other SG&A operating expenses. It will be interesting to track how these components of EBIT will change for 2024, given growth constraints associated with market share gains and price increase ceilings. Looks like some drastic OPEX cuts might be the only short-term remedy for now as AB InBev looks to rebuild brand equity and volume share. Send me a DM or write "send" in the comments section and I will forward you the document that also contains the related MVA operating breakdown for #MolsonCoors and #ConstellationBrands. It's interesting to see how and to what extent Molson Coors and Constellation Brands benefited from AB InBev's headwinds. You will also see why Constellation Brands might be the longer term winner here. #Beerindustry #beercategory #beerdistribution #Heineken #BeverageAlcohol #Asahi #Carlsberg #BostonBeer #beer #beverages #BudLight #MillerLite #CoorsLight #Corona #ModeloEspecial

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📰 Snack Trends Alert! 📰 Dive into the latest article "Sizing Up Snacks" from CStore Decisions to uncover the hottest trends shaping the snack industry today. 🍿🍫 From healthy options to indulgent treats, this comprehensive guide breaks down what consumers are craving. With snacking habits evolving rapidly, staying ahead of these trends is crucial for c-store success.📈🍪 Read full article here --->: https://bit.ly/3S5Sww8

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🚨FOOD INDUSTRY NEWS🚨 PepsiCo has reported quarterly earnings and revenue that beat analysts’ expectations, despite weaker U.S. demand caused by Quaker Oats recalls and backlash to higher prices for its drinks and snacks. Shares of the company fell more than 2% in morning trading. Earnings per share: $1.61 adjusted vs. $1.52 expected. Revenue: $18.25 billion vs. $18.07 billion expected. 🥤 #pepsico #earnings #inflation #foodindustry #newsletter

Today’s food & beverage market is as competitive as ever. More brands, with more ways to access those brands, equals more choices for consumers and more competition for producers. Contract manufacturing is a viable option for brands to flourish in this volatile market. Learn about some of the benefits of having an effective food contract manufacturer and what to consider when selecting a contract manufacturing company. https://lnkd.in/e9Ck5mUe

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Two hot topics within the current beverage alcohol industry are Gen-Z and Ready-to-Drink (RTD). According to Circana’s State of the CPG Beverage Alcohol Industry report, RTD reached $10.3 Billion in 2023. Part of that growth is due to Gen-Z members' strong preference for higher ABV offerings and unique packaging. But what are the top RTD cocktail brands among Gen-Zers according to Circana? 🔥 Buzzballz, LLC / Southern Champion 🎵 BeatBox 🍸 LIQS Cocktail Co. 👑 Crown Royal & Whiskey Cola 🍹 Monaco Cocktails 🥃 Jack Daniel’s & Coca-Cola Read more about the State of the Alcohol Industry here: https://hubs.li/Q02xggvP0 #ReadyToDrink #GenZ #BeverageAlcohol #Circana

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"What we do now is good enough..." Well, is it really? Beer glass rinsers were good for their time, because it was the best of what was available to clean bar tools. They were repurposed to clean bar tools because there was a definite need in the market. But when you use equipment for something it was never designed for, you end up with problems. Beer glass rinsers: ❌ are inconsistent ❌ waste a lot of time ❌ require manual operation ❌ only rinse one vessel at a time ❌ do not rinse the outside surfaces of vessels And the list goes on and on. That's why I invented a custom, bespoke solution to clean bar tools. Auto-Rinse™ is everything a beer glass rinser is trying to be: ✅ fast ✅ durable ✅ automatic ✅ easy to clean ✅ rinses 2 tins and a strainer simultaneously And the list goes on and on... If you really want the most efficient way to rinse bar tools, you need to consider Auto-Rinse™ for your operations. Saving seconds per drink build = getting your servers back on the floor so they can sell. Learn more here: https://lnkd.in/et9MuYD #bars #restaurants #cocktails #specialtycoffee #bubbletea

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Keeping an eye on #ENERGY. "C-store sales surged 10.8% for the year ending May 19, according to Chicago-based research firm Circana. And while inflation of about 3% on average was part of the sales growth, energy drinks also saw unit sales grow 7.5%." The energy drink market is evolving rapidly, with convenience stores leading the way in adapting to new trends. Plant-based ingredients and brain-boosting formulations are on the rise, catering to health-conscious consumers. The demand for functional beverages offering natural energy and cognitive benefits is also growing. Convenience stores are responding by offering a diverse range of innovative energy drinks to meet these changing preferences. This shift underscores a focus on health, functionality, and convenience in the energy drink industry. C-Store Dive Read more: https://lnkd.in/eZDjjKgW #beverage #functionalbeverage #convenience

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"Thanks Kaleigh Theriault, great play by play on the first half, let’s take a look at what’s going to be needed to win the year." 🏈 Halftime Report: Preparing for the second half in the Beverage Alcohol Industry! 🏆 As we take a breather at the halfway point of 2024, it's clear that the beverage alcohol industry has seen some major plays and strategic moves. Let's huddle up and look at the game plan for the rest of the year: 🍺 Beer: The price increases in 2023 are putting pressure on consumers, with long-term inflation effects and multiple drivers pointing to lower volumetrics. To stay in the game, deeper price subsidization for core Beer categories is essential. However, Imports show potential for a positive finish. Maintaining consumer loyalty will be our MVP move here. 🍷 Wine: The $15-$25 range continues to be the sweet spot, driving consumer interest. But to achieve positive trends by year-end, we need to capitalize on Q4 gifting. A big comparable period is coming up, so some price adjustments might be necessary, especially for infrequent Wine shoppers. 🥃 Spirits: We're seeing a continued shakeout as consumers transition from traditional products to RTDs. Flavor and turn-key cocktails are the winning plays, making Q4 critical for gifting and entertaining. Price discounting is already in motion to boost revenue. 🍹 RTD (Ready-to-Drink): RTDs remain a game-changer this year. With their share of total Alcohol growing, we expect more stability in growth rates as the shift from Seltzers slows. Building consumer brand loyalty for Spirits RTDs is crucial, and we need to watch out for potential flavor fatigue in the second half. Let's get ready to tackle the challenges and seize the opportunities ahead! Here's to a successful second half of 2024! 🥂 "Why did the football team go to the bank at halftime? To get their quarterback!" 🏆 #BeverageIndustry #AlcoholTrends #Beer #Wine #Spirits #RTD #MarketInsights #SecondHalf #HalftimeReport Note: This report looks at the 26 week ending period thru July 6th, 2024

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The moderation trend is continuing to accelerate! The NA segment of on-premise beer sales in the U.S. jumped 33.7% over the last 52 weeks with broad-based gains in all 50 states! 💪 📈 🍻 At Partake Brewing we are seeing on-premise operators move from offering 1 NA beer option to now several with macros and craft represented in addition to house mocktails. 🍺 🍷 🍹 This is an exciting time for the non-drinker and moderator alike! Gone are the days of water, juice, milk, and soda as the non-alcoholic options. 🤩 https://lnkd.in/gibbdbPB

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AB InBev has reported a rise of 2.6% in first-quarter sales, in line with forecasts, but the impact of a roughly year-old U.S boycott of key brand Bud Light continued to hurt the brewer. AB InBev also sold slightly more beer than anticipated, with volumes falling 0.6% versus the 1% anticipated by analysts. Own beer volumes declined by 1.3%, while non-beer volumes rose by 3.5%. Read more https://lnkd.in/dCKmtukA

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🍿 Amid pandemic-driven shifts towards grocery shopping and home dining, coupled with rising inflation, the salty snack category has faced challenges. Our mission: uncover trends and opportunities for clients. 🔍 Insights revealed a growing focus on health-focused ingredients, flavor innovations, and the profound impact of social media on consumer behavior. 📊 Over 4 weeks, our team analyzed over 2.5 million data points from company sites, social media, news, and brand platforms to guide a leading snack company. 🌐 Discover how CREWASIS is reshaping market strategies with advanced data analytics. Book a demo today: https://crewasis.ai/ #SnackIndustry #MarketTrends #ConsumerInsights #CREWASIS #AI #DataAnalytics #BusinessGrowth #MarketingStrategy

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Year after year I’m impressed with the number of innovative, new beverage brands that enter the market. As always, #BevNet provides an amazing opportunity for these brands to be seen, to learn, and to network. There were so many takeaways, but here are three to share from this year’s conference: 1. If you’ve been waiting for the #Hemp-#THC infused beverage category to take off, it’s here. We saw lots of great new brands and very impressive data on sales volume and consumer demand. 2. Interesting advice from Whole Foods Market: It’s no longer enough to just present a great brand. You need a great brand with a strategic plan for success. 3. With #NIL there’s a growing opportunity to use student athletes as influencers and brand endorsers. If you’re looking to reach GenZ this is a great way to go. Thanks again to the team at #Bevnet for making every show invaluable. #beverageindustry #entrepreneur #innovation #kickstartflorida SAS Sales and Marketing

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This is an interesting article, although I don't think Kellanova and WK Kellogg are really on different paths as implied. The ban of Red 3 in California is a de-facto national ban since it is not possible for major food retailers to segregate what they sell in each State. Consumer Brands Association is right that the patchwork approach is going to lead to potential chaos. At Sensient, we are working brands who want to prepare for potential changes to other colors, while providing safe synthetic and natural colors. https://lnkd.in/gu-CHAKh

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The Krispy Kreme - McDonalds partnering deal is going to be a three-year brand growth masterclass in the flywheel brand growth power of physical and mental availability. For Krispy Kreme: Current 2024 Points-of Access (US): 7,775 Incremental 2026 McDonald's Points-of-Access(US): +12,000 Global longer term opportunity: + 100,000 Why is this believable? Solid Krispy Kreme mental availability platform to re-energize and re-invest some creative advertising to support that expansion. This is going to be a household penetration tsunami for the brand. (Credit to Ehrenberg-Bass Institute for physical and mental availability frameworks, cool laws and other amazing BS-busting research.) Important question for Byron Sharp Jenni Romaniuk Prof. dr. Koen Pauwels: Donuts or Doughnuts? https://lnkd.in/gHgZzXkF #Brandgrowth #mentalavailability #physicalavailability #brands #QSR

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🔥 Our 2023 Plant-based foods in US foodservice report is hot off the press! Download now: https://bit.ly/3KUdXw8 Highlights and key insights below: 🥛 The plant-based milk segment has expanded over the last five years, with pound sales up 55% and dollar sales up 81% since 2019. 🌭 In 2023, plant-based meat analogs — products designed to recreate the taste and texture of conventional meats — represented 50% of plant-based protein pound sales, up from 39% in 2019. 🏫 Plant-based protein purchasing from educational institutions has surged in the last three years, growing 36% from pre-pandemic levels in 2019. 📈 Consumers in 2023 paid an average of 25% more for food than they did in 2019, before the start of the pandemic. As inflation eases in 2024, plant-based manufacturers and operator partners should prioritize closing the price gap to drive trial and repeat purchases within these categories. 🍽️ An August 2023 survey showed 39% of respondents had never tried plant-based meat products. The foodservice sector can play an impactful role in delivering unique, accessible, and often elevated experiences and can move the needle on growing awareness and acceptance of the larger plant-based category. Dive into our full analysis of category sales, comparisons to the conventional meat market, emerging segments, pricing, consumer insights, and future opportunities: https://bit.ly/3KUdXw8 In July, GFI will host a webinar about this report featuring a panel of experts to answer your most pressing foodservice questions. Have questions for our panel? Submit them here: https://bit.ly/3VxrKOi

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Having a mentor can positively impact your trajectory in the business world, and Conagra Brands's EVP Jon Harris is a prime example. Through his experiences with his mentor — Conagra Brands President and CEO Sean Connolly — across three companies, this guidance has shaped his upbeat, optimistic style of management at the food giant. Read on as Jon Harris highlights the invaluable impact of mentorship in propelling professional growth: #Mentorship #LeadershipDevelopment

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