The Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage sector. From inaugural product lines to big investments and controversial topics, this column aims to quench the thirst for developments in the category.
Boston Beer bets light beer will quench sales thirst
A well-known beer brand aiming to refresh its drink lineup is targeting consumers seeking a light beverage for the upcoming hot summer days.
Boston Beer announced Samuel Adams American Light, a lower-alcohol brew. The drink contains 4.2% alcohol-by-volume and 115 calories per 12 ounce can. The beer will roll out in 14 states this summer in cans and 15 states on draft, with national distribution to follow in 2025.
“We know beer lovers are seeking lighter, easier-to-drink options that they can enjoy throughout the day – whether it’s at the beach, at a friend’s party, or at a happy hour,” said Lauren Price, the brand’s marketing director, in a statement. “For those times they want to ‘upgrade’ those occasions with a great-tasting light beer, American Light is the answer.”
Lower-alcohol offerings continue to attract new consumers that are looking to limit their consumption, namely Gen Z drinkers. Many consumers of low and no-alcohol drinks switch between them and higher-ABV offerings, according to IWSR data.
Boston Beer is aiming to recapture momentum after a period of disappointing sales and wider beer industry woes, as many consumers drop lower-value brews in favor of other beverages. Michael Spillane, an industry veteran with experience at Nike and Converse who has served on the company’s board for eight years, took over as CEO last month with a goal of ushering the brewer into a new phase of growth.
On Boston Beer’s most recent earnings call last month, the CEO said innovating its core brands with new product launches is a key tenet of its growth strategy.
“Our goal is to generate a steady cadence of brand innovation which will test in smaller markets to determine the winners and move forward to national launches,” Spillane said.
In April, Boston Beer also debuted General Admission — a line of nonalcoholic brews that it said combines fruit-flavored seltzer and booze-free beer — in select markets and direct-to-consumer on its website.
— Chris Casey
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Courtesy of Nestle
Nesquik takes a sip of the popular churro
Nesquik’s popular chocolate flavoring is tapping into other hot trends, cinnamon and churro flavors, with its latest product launch.
The Nestlé-owned brand is introducing Nesquik Cinnamon Churro Flavored Powder. The flavoring, which comes ahead of National Churro Day on June 6, combines milk with the sweet and spicy flavors of cinnamon and sugar in a glass, eliminating the need for baking.
The Nesquik offering will debut at Walmart nationwide, with additional retailers to follow. Nesquik Cinnamon Churro has no high fructose corn syrup and no artificial flavors, colors, or sweeteners.
“Consumers drive what we do and the launch of our newest offering, Nesquik Cinnamon Churro Flavored Powder, is no different,” Jacqueline Jimenez, senior director of marketing at Nestlé USA, said, in a statement. “As demand rises for indulgent and unique flavors, this product provides a first-of-its kind offering from Nesquik, introducing the delicious taste of cinnamon churro to your nutritious glass of milk.”
Nestlé, citing Datassential figures from last November, noted that 81% and 55% of consumers love/like cinnamon and churro flavors, respectively.
It’s a big reason why other brands and companies are latching on to the churro trend with their product rollouts.
Last year alone, Ben & Jerry’s launched Churray for Churros!, while Hershey’s Kit Kat Churro introduced a limited-time version of the confection that was a mix of buttery cream, sugar and cinnamon coating the candy’s signature crispy wafers.
— Christopher Doering
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Courtesy of Sapporo-Stone Brewing
Sapporo-Stone Brewing aims to enter top ten breweries with $60 million expansion
A brewer jockeying to increase its presence in the craft beer market is on its way to boost its capacity to 700,000 barrels ber year.
Sapporo-Stone Brewing announced this week it has completed the first phase of construction on its $20 million facility in Escondido, California — the expansion of which is almost complete — and has begun construction on its $40 million Richmond, Virginia manufacturing plant.
Sapporo U.S.A., the American arm of the prominent Japanese brewer, purchased Stone Brewing for $165 million in 2022 in a bid to capitalize on the U.S. craft beer market. The California-based craft brewery said the goal of the acquisition is to brew, sell and market all of Sapporo’s beer products for the U.S. market. The Escondido facility includes new tanks and packaging lines to boost efficiency, according to Sapporo-Stone.
While the craft beer category is facing plateauing sales and overcrowding, Sapporo-Stone is aiming for a bigger presence in the space. The company said in the press release it is aiming for a spot in the top ten largest breweries in the U.S. by volume — it currently sits at twelfth place.
The brewer believes there are promising signs for the acquisition, citing Nielsen data which found its U.S. sales increased 13.1% in the 12 month period ending in April, while Stone’s three core IPAs grew 13.2% in the same time frame.
Zach Keeling, Sapporo-Stone Brewing’s interim CEO, said in a statement Sapporo’s acquisition of the craft brewer is operating more like a merger.
“Our two companies are now fully integrated – Innovating, brewing, selling, marketing, and operating as a single, combined business. The Sapporo and Stone Brewing brands will maintain their individual identities, but we are Sapporo-Stone in name, operations, and culture.”
— Chris Casey