2019-06-01_Market_Watch

(Chris Devlin) #1
JUNE 2019 | MARKETWATCHMAG.COM | MARKET WATCH 87

BEER BUZZ


A New Era Of Partnership
Craft brewers and grocery stores join forces on special products and new releases

A


mid competition from
brewery taproom special
releases and draft-only
beers, retailers are in a battle to
become destinations for must-
have brews. For some top grocery
chains, the solution is to partner
with local craft brewers on exclu-
sive or nearly exclusive beers,
driving fans to their business.
Over the past year, Rochester,
New York-based grocery chain
Wegmans has partnered with
several craft brewers on special
releases for its “Freshest Beer”
program. Last fall, the grocer
unveiled Neon Rainbows IPA
($14 a 4-pack of 16-ounce cans)
from Cooperstown, New York-
based Brewery Ommegang at its
New York stores. It marked the
first time that the limited-
volume New England-style IPA
was sold in cans, and it was deliv-
ered to the grocery stores just
days after being brewed. “This
was a smart response by Wegmans
to participate in that consumer
demand for brewery-fresh beers,” says Ommegang president
Doug Campbell. The partnership was so successful that the
two companies expanded upon it this year, with a total of
eight beer specials set for 2019.
Wegmans, which has approximately 100 stores in six
eastern states, has partnered with other brewers as part of
its “Freshest Beer” initiative. Queens, New York’s Single-
Cut Beersmiths teamed up with the grocer last year to
deliver its 18-Watt IPA ($13-$14 a 4-pack of 16-ounce
cans) to stores in New York, Pennsylvania, and Massachu-
setts. The beer sold out in just three days. Last month,
SingleCut and Wegmans partnered again on a special dry-
hopped double IPA called When Time Just Slips, with
availability expanded to Wegmans stores in New Jersey
and Virginia. While it was available at some independent
accounts shortly after release at Wegmans, SingleCut
general manager Dan Bronson notes Wegmans received
the lion’s share of the beer. “They got first dibs,” he says.
Wegmans also partnered with Virginia’s Pale Fire Brewing

last year for distribution of Major
Tom IPA ($16) in nine Virginia
stores. “Customer response was
fantastic,” says Pale Fire founder
and general manager Tim Brady.
Elsewhere, Food Lion, the North
Carolina-based supermarket chain
with more than 1,000 stores in ten
states, teamed up with a local
craft brewery last year on limited
releases. New Sarum Brewing—
located in Food Lion’s hometown
of Salisbury, North Carolina—
approached the grocer with the
idea of producing several limited-
batch brews under the Lion Series
banner for distribution in the Tar
Heel State. New Sarum produced
a lemon shandy and raspberry
blonde ale (both $10 a 6-pack of
12-ounce cans), and Food Lion
bought the entire run. Gian-
Mauro Moscardini, co-owner and
vice president of sales and
marketing at New Sarum, says
there’s talk of continuing the
series this year, although no deci-
sion had been announced as of
press time. For its part, Food Lion has been enthusiastic.
“Over the last several years we have made it a priority to offer
our customers an expanded selection of local craft beers and
limited-release batches,” says Adrian Baker, the chain’s vice
president of center store category management.
Large beer marketers also work with select on-premise
accounts on special programming. Last fall, for example,
Heineken USA introduced Dos Equis Mexican pale ale on
draft exclusively at sports bars, including Buffalo Wild
Wings, in the first phase of what could be a broader national
launch. “The on-premise is where trial occurs,” says Dos
Equis brand manager Lindsay Certilman, who adds that the
experience was a novel one. Since last year’s launch,
Heineken has expanded Mexican pale ale into other
on-premise accounts in Texas, as well as off-premise venues
in the state and neighboring New Mexico. And more expan-
sion may be in the works: Heineken USA will decide next
year whether the beer will be rolled out nationally. mw
Terri Allan

New York-based Wegmans partners with craft brewers for
its “Freshest Beer” program. Last year, the store launched
Neon Rainbows IPA (pictured) from Brewery Ommegang.
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