Press release

Investor presentation

Shares of Tilray (TLRY) increased 36% Tuesday, 8/8/20 (announcement came after market closed)

Tilray acquired eight brands for $85M from AB InBev all-cash. The brands include Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy (was discontinued in May 2023). Based on volume, this will make Tilray the 5th largest craft beer company in the U.S., jumping from ninth (SweetWater, Montauk, Alpine and Green Flash). The acquisition turns Tilray into a diversified cannabis, beverage, and hemp company with recognizable brands. Tilray also owns Breckenridge Distillery and Happy Flower CBD sparkling non-alcoholic cocktails.

Four of the brands—Shock Top, Breckenridge, 10 Barrel and Blue Point—produced a combined 495,000 barrels of beer in 2022, according to the Brewers Association (BA). Production data for Widmer Brothers, Redhook, Square Mile and Hiball were not broken out separately. In the last 13 weeks (ending June 17), total dollar sales for Shock Top declined -23.2% YoY in NIQ-tracked off-premise channels, according to data shared by 3 Tier Beverages. Brand volume declined -29.2% YoY in the period. In the last 13 weeks, Breckenridge off-premise dollar sales declined -11.4% YoY, while volume declined -14.5%, according to NIQ data shared by 3 Tier Beverages. In the last 13 weeks, Blue Point dollar sales declined -21.6% YoY and volume -29.6% in NIQ-tracked off-premise channels. Unlike its counterparts, 10 Barrel increased dollar sales (+8.9% YoY) and volume (+3.2%) in the last 13 weeks in NIQ-tracked channels.

After the deal, AB-Inbev will be left with 12 craft beer brands—Goose Island (495,000 barrels), Elysian (305,000 barrels), Golden Road (215,000 barrels), Karbach (155,000 barrels), Four Peaks Brewing (140,000 barrels), Wicked Weed (115,000 barrels), Devils Backbone (75,000 barrels), Platform (20,000 barrels, ceased operations in Ohio; lives on as three IPAs), Cisco Brewers (N/A), Omission (N/A), Veza Sur (N/A), and Wynwood Brewing (N/A).

The strategy has been building for some time now:

• CEO Irwin Simon has a history of roll ups at Hain Celestial

  

• The deal is projected to triple the size of Tilray's beer portfolio

• In November 2020, Tilray (Aphria) acquired SweetWater Brewing Company for $300M. In December 2021, Tilray acquired Breckenridge Distillery. In January 2022, Tilray acquired Green Flash and Alpine for $5.1M. In November 2022, Tilray Brands acquired Montauk Brewing Company.

• Beverage-alcohol revenue is expected to be $300M, with ~$250M coming from craft beer

The acquisition further increases Tilray’s approach to winning in Cannabis—acquire brands and distribution—and have a strong baseline to win when U.S. Federal legalization happens.

• While some brands are more recognizable than others (Sweetwater, Shock Top), the more important strategic rationale for the acquisition is that it expands the company’s capabilities in beverage

• Strengthens relationship with Anheuser-Busch owned/partner distributors, creating national access across all major channels

• Six production facilities (adding two in OR, one in CO, one in NY from this transaction) and 12 brew pubs provides infrastructure to immediately jump into cannabis beverage / lounge upon legalization. Craft brewers have used brew pubs to test out new products and engage with consumers.

• Overall, the transaction adds EBITDA / improves EBITDA Margins in the short-term while providing optionality in the long-term. Craft beer volumes declined (6%) in 2021 and (9%) in 2022, while the purchased portfolio has seen dollar sales declines of (6.4%) year to date and a (8.5%) decline in 2022

Increases diversification of geographic reach. Tilray’s current portfolio (with Sweetwater being the majority) meant its 65% of volume came from the Southeast and 25% from the Northeast. With this deal, the combined portfolio will now be 28% Northeast, 18% Northeast, 17% Central, 30% Pacific Northwest, and 7% West Coast. The acquisition puts Tilray Brands in markets that it wouldn’t otherwise have been able to enter with its current beverage business.

Portfolio maintains even distribution of retail chain and independents channels. Tilray Brands was already in 59% of chains and 41% of independent stores, but will be more slightly more balanced with 56% of chains and 44% of independent stores.

Not Waiting on Cannabis Legalization. Irwin Simon, Tilray chairman and CEO, joins ‘Squawk on the Street’ to discuss Tilray’s decision to buy some alcohol brands from Anheuser-Busch, the company’s decision to move away from cannabis legalization and more.

Make “craft beer cool again.” In an interview with Yahoo!, Irwin Simon says he sees such an opportunity within the craft beer business. Simon says Tilray's strategy is "how do we make craft beer cool again?" Irwin says they will try to make "craft beer cool again" by "coming up with unique products, connecting with the consumer, and, with that, we will hopefully get these products growing in the right direction." However, Irwin does say that it will cost the company money to improve packaging and market the brands.

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👋 Highly Objective is a weekly Cannabis newsletter and podcast curated by Dai Truong, who leads Cannabis Investment Banking at Arlington Capital Advisors. Third-party information presented here and links to third-party content are for informational purposes only and are not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument, security or investment.  The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Linking to third-party sites in no way implies an endorsement or affiliation of any kind between Arlington Capital Advisors, LLC, or its affiliates and any third party.  The information in this blog constitutes my own opinions (and any opinions posted by guest bloggers from time to time) and it should not be regarded as a description of services provided by Arlington Capital Advisors, LLC or any affiliate.

National Convenience Distributors (NCD), the 4th largest wholesale distributor to the convenience industry, acquired Colonial Wholesale Distributing, one of the Southeast region's largest full-line wholesale distributors to the convenience and grocery store industries. National Convenience Distributors now services thirteen (13) states with annual revenues approaching $3.5 billion.

The Coca-Cola Company and eight bottling partners (The Coca-Cola Company, Arca Continental, Coca-Cola Bottling Co. UNITED, Coca-Cola Consolidated, Coca-Cola Europacific Partners, Coca-Cola FEMSA, Coca-Cola HBC, Reyes Coca-Cola Bottling, Swire Coca-Cola) from around the world closed a new, $137.7 million venture capital fund focusing on sustainability investments. Greycroft, a seed-to-growth venture capital firm, will manage the Greycroft Coca-Cola System Sustainability Fund. The fund is the first of its kind for Greycroft, which invests in enterprise and consumer solutions across life cycles and industries. The Coca-Cola system’s carbon footprint is a major priority for the fund, so it will focus on five key areas with the most potential impact to start: Packaging, Heating and cooling, Facility decarbonization, Distribution, Supply chain

Liquid Death has reportedly hired Goldman Sachs to lead a potential IPO, which could come as soon as spring 2024. The Company last raised a $70 million Series D funding round in October at a $700 million valuation. Board member Peter Pham said the company was on pace to double its projected 2022 revenue of over $130 million in 2023. As of last fall Liquid Death had 94% national distribution coverage via DSD and broadline with the ability to service 346,000 doors, according to an internal deck. In October, Pham wrote that the brand was in 60,000 accounts nationwide at the time.

Prime is being called out by Majority Leader Schumer Demands FDA Investigate For Absurd Caffeine Content And Marketing Targeting Kids On Social Media; Schumer Warns Parents That Summer’s Hottest Drink Has So Much Caffeine That It Puts Red Bull To Shame. The Canadian Food Inspection Agency (CFIA) recalled Prime energy drink, though it has not yet officially launched in Canada, and the company plans to adhere to local regulations when it does.

Schumer said a 12-ounce can of Coca Cola contains 34 milligrams of caffeine and an 8.4-ounce can of Red Bull has 80 milligrams. A 12-ounce can of Prime energy, by contrast, contains 200 milligrams of caffeine.

Anchor Brewing, the Oldest Craft Brewer in the U.S., Will Close After 127 Years. The brewer’s sales had been declining since 2016, and in 2017, the company was acquired for around $85 million by the Japanese beer giant Sapporo.

Production under Sapporo’s leadership declined in every other year with the exception of 2021, when volume increased +45%, to 72,500 barrels, its highest point since the 89,612 barrels produced in 2018, according to the Brewers Association’s New Brewer Magazine. In 2022, Anchor’s volume declined -10% in 2022, to 65,000 barrels.

A medical diagnosis led Ted Fleming to found non-alcoholic beer company, Partake Brewing, that’s now selling close to $20 million in annual revenue.

Perfect Day has laid off roughly 15% of its workforce, 134 employees, as it moves to exit its consumer-facing business, The Urgent Company (TUC), in order to focus solely on its B2B ingredient sales and nth bio “consulting” precision fermentation business.

The TUC division houses four brands: Modern Kitchen (cream cheese), Brave Robot (ice cream), California Performance Company (whey protein) and Coolhaus (ice cream and frozen novelties).

Sunday’s Finest Gold Fashioned’s interpretation of the Old Fashioned, ringing in at $150.00 for a 750ml bottle (about 10 to 12 cocktails).

NuZee (NUZE, $7.5M Market Cap) Secures Five-Year Global Licensing Deal with Stone Brewing to Launch a Full Line of Specialty Coffee Products

Heaven’s Door adds “Ascension” Kentucky Straight Bourbon to its core collection of Tennessee whiskeys.

BuzzBallz Cocktails is adding a bold new flavour to its popular premixed drinks range with a premium, limited edition flavour the UK market—Pornstar Martini, a modern classic, featuring top quality vodka and passion fruit juice this fun cocktail creation is set to be a real hit over the summer months and beyond. The product offers a hefty ABV at a bargain-bin price tag, and proudly flaunts that it’s woman-owned, an attribute increasingly important to younger, diverse consumers. BuzzBallz also comes in a dizzying number of flavors (13 core cocktails with seasonal offerings) and based on its TikTok fans, has lived up to its original inspiration as a “party ball.”

Bossa Nova, the functional sparkling water brand has struggled to secure the necessary financing to maintain its business despite good margins and high velocities at its natural channel retail partners (2,000 Sprouts Farmers Market, Central Market and H-E-B).

CEO Alton Johnson said that the current financial environment, where potential investors are more focused on brands showing profitability than growth, has made it more difficult to secure the necessary financing. While some potential investors have told Johnson they would be interested in participating in a Series A for the company, he said the brand is still too young for that type of round. Johnson said the company still has breathing room as it seeks out new investors, with at least a year’s worth of cash on hand and incoming revenue to maintain the business.

Top 10 spirits launches in June 2023: Fettercairn 18YO, No. 3 Gin’s bottled Gimlet, Suntory’s anniversary whiskies, Cambridge Distillery’s seasonal gin, De Kuyper RTD cocktails, Frapin 30YO, Sphynx Tequila, Betty Booze, Benriach 40YO, Neurita Tequila

375 Park Avenue Spirits has entered into a spirits distribution agreement with the United Kingdom’s largest independent craft gin distillery, Warner’s Distillery. Under this agreement, 375 Park Avenue Spirits will assume responsibility for all sales of Warner’s Distillery’s portfolio of super-premium spirits within the United States, as well as supporting the brand’s marketing efforts in the U.S. market.

Exit 9 Liquors in Clifton Park, NY — 20 minutes northwest of Albany — was born out of a vision of a better liquor store.

Tractor Beverage Company, the first and only certified organic, non-GMO beverage company dedicated to foodservice, is launching its debut consumer ad campaign that takes industry monoliths head on.

Proudly served in over 5,900 locations across all 50 states including Chipotle, PLNT Burger, Kevin Hart’s Hart House, WOWorks’ Saladworks, Garbanzo Mediterranean Fresh and more, Tractor's thoughtfully crafted drinks feature clean ingredients that deliver on taste, functionality, and experience, without any of the bad stuff.

Tromba used the funds it has raised over the last few years to purchase and preserve a 28-hectare plot of land on which more than 6,000 endangered agave seedlings were planted.

Moth launched an OOH advertising campaign with a focus on its pre-mixed Margarita cocktail

Interview: Liz Rhoades & Meghan Ireland, Distillers, WhistlePig – Rhoades and Ireland spoke with Taste Radio editor Ray Latif about their respective backgrounds in the spirits industry and WhistlePig’s expansion from rye whiskey into North American single malt whiskey category with the launch of an ultra-premium 21-year-old expression named The Beholden They discussed how the whisky fits into the company’s “rebel” ethos, the craft of aging and blending and their perspectives on women in the whiskey industry.

Interview: After 20 Years Of Ilegal Mezcal, Founder John Rexer Talks What’s Ahead. Ilegal grew by 80% in 2021, and then close to 80% again in 2022. How we prepare for the future is important for the economic and environmental sustainability of mezcal and of Oaxaca.

“The biggest opportunity, but also biggest challenge, is to apply as many best practices as possible and to learn from the mistakes of others. Tequila has had boom/bust cycles which over time has created economic instability and has led to hyper industrialization of many brands. Mezcal, as an international business, is still young enough to build a more sustainable model that benefits everyone throughout the chain, one that evens out the highs and lows, and protects environmental diversity. It is not an easy mission, but one the bigger players should lead as they expand their business.”

Liberum downgraded Naked from ‘hold’ to ‘sell’ in a note to its investors, saying that the “stop-start growth strategy” of the company had historically brought about “way too much volatility” and it seems “those days could return”. “Naked Wines’ business model struggles with the balance between growth and profits, as its high CAC and not high enough retention rates imply a need to spend significant money to replenish the sales and customer base every year,” it noted, adding that “If one had thought the ‘stop-start’ growth strategy had come to an end, well think again.”

Vodka, By the Numbers. With $7.2 billion in sales in 2022, vodka continues to be the backbone of the spirits industry. (For comparison’s sake, the second-highest-grossing category of distilled spirits was tequila and mezcal, coming in at $886 million.)

Non-alcoholic beverage sales stabilized in the two-week period ending July 1. Dollar sales growth was up 6.3% in the two-week period, compared to 6.2% in the four-week period and 8.8% for the 12-week period. Meanwhile, volume fell -4.8%, improving from -5.7% in the four-weeks. Average pricing growth was up 11.1%, decelerating from 11.9% in the four-weeks.

The latest data from IWSR Drinks Market Analysis shows global beverage alcohol growth by volume slowed to around 1% in 2022, “and is likely to grow at around 1% per annum over the next five years” to 2027, Emily Neill, chief operations officer, research and operations at IWSR Drinks Market Analysis, said during a webinar on the company’s latest insights. “Value is forecast to grow by a more positive 2% year on year.”

PepsiCo CEO Ramon Laguarta said that consumers are looking for better deals and shopping more from dollar stores and club retailers.

Tales of the Cocktail, the cornerstone event of the spirits industry, turns 21 this year. Over that time period, the New Orleans cocktail conference has grown from a walking tour guiding a handful of local enthusiasts to a weeklong destination for nearly 25,000 global industry professionals.

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Disclosure: Highly Objective is a Beverage and Cannabis blog curated by Dai Truong, who leads Cannabis Investment Banking and Total Beverage Business Development at Arlington Capital Advisors. Third-party information presented here and links to third-party content are for informational purposes only and are not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument, security or investment.  The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Linking to third-party sites in no way implies an endorsement or affiliation of any kind between Arlington Capital Advisors, LLC, or its affiliates and any third party.  The information in this blog constitutes my own opinions (and any opinions posted by guest bloggers from time to time) and it should not be regarded as a description of services provided by Arlington Capital Advisors, LLC or any affiliate.

🤝 M&A:

Stock Spirits buys Clan Campbell whisky from Pernod Ricard. In its statement, the company called Clan Campbell “one of the leading brands” among the blended 12-year-old Scotch whiskies sold in France. It is also sold in other European markets including Spain and Italy. The company recently launched a rum-based spirit drink under the Clan Caribbean brand. 1.3M cases of Clan Campbell were sold in the last financial year. UK-based Stock Spirits, acquired by private-equity firm CVC Capital Partners for GBP 750M, has a portfolio that includes Żołądkowa Gorzka (vodka), Stock Prestige (vodka), Żołądkowa de Luxe (vodka) Lubelska (vodka), Božkov Republica (rum), Limoncè (limoncello) and Stock 84 (brandy), Millhill’s Gin and Fernet Stock.

Lucky Jack coffee quietly exited to private label manufacturer Magnum Coffee Roastery in mid-May. The acquisition builds on the two companies existing relationship: Lucky Jack had been a Magnum client over the years sourcing green coffee beans and for wholesale purposes.

💰 Capital Raises:

N/A

🥃 Whiskey:

Still Austin Whiskey Co. Launches Bottled in Bond Seasonal Series

🌵 Mezcal / Tequila:

Cierto, founded by VC Todd Chaffee, is being distributed by Southern Glazer's Wine & Spirits. Launched in nine states in February of 2023, it is now in 40 with plans to be in every state by the end of the year. Its four expressions, Blanco, Reposado, Añjeo, and Extra Añjeo, start at $89.

📈 Data:

Research from CGA’s On Premise User Survey shows that the average RTD drinker is young, a little wealthier than the average American, and dine out often.

Hard Teas are driving the growth within FMBs; the subcategory increased dollar sales +38.7% YTD, to nearly $385 million, now accounting for 2.3% share of total beer dollar sales in NIQ-tracked channels. Across all outlets (on- and off-premise), dollar sales for hard tea have improved +31% YTD versus 2022, maintaining that momentum in the last four weeks (+39% L4W).

RTD spirit preference—More than two-thirds (70%) of American consumers are more likely to opt for a vodka-based ready-to-drink (RTD) beverage over any other spirit. Tequila comes in second with more than half of RTD consumers, rum was selected by 42%, and gin was found to be the least appealing white spirit base (30%). Meanwhile, whisky (43%) is almost twice as desirable as brandy and Cognac (23%).

The total spirits category is up 2.1% year-over-year, led by tequila (6%), Whiskey (2.5%), and vodka (0.8%). As for vodka types, unflavored vodka remains the most in-demand type, with 2.1% growth, compared to more negatively performing flavored vodka (-3.3%), which holds the category back.

Before the first lockdown of the Covid-19 pandemic (March 2020), sales of Tequila in UK shops and supermarkets were recorded to be worth £17 million (US$20.5m), however in the 12 months to 26 March 2022, sales were worth £33m (US$39m), equating to a 94% increase in sales.

💧 Product:

The playground demand for Prime energy drinks, explained

The Pornstar Martini (passionfruit, vanilla, vodka & citrus) is the second most-searched for Cocktail on Google, behind the Margarita.

6666 Ranch launches in ~200 The Save Mart Companies (TSMC) stores (Save Mart, Lucky, and FoodMaxx)

Muscle Milk posted double-digit growth in 2022 and is replicating that again this year, according to PepsiCo. The company said the brand also is gaining market share as it finds broader appeal among consumers as an ingredient in coffee, ice cream and baked goods.

Great Lakes Brewing Co. Launches Limited Rocket Pop Hard Seltzer

🏨 Earnings:

National Beverage Corp (Q4 and FY ended April 29, 2023): FY Q4 2023: Net sales of $287M; Gross margins grew 130 bps to 36% GM; Net income increased 6% to $36M; and EPS increased to $0.39. FY2023: Net sales increased $35M to a record $1.2B; Net income was $142M; EPS was $1.52; and Net cash generated by operations was $162M.

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Disclosure: Highly Objective is a Beverage and Cannabis blog curated by Dai Truong, who leads Cannabis Investment Banking and Total Beverage Business Development at Arlington Capital Advisors. Third-party information presented here and links to third-party content are for informational purposes only and are not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument, security or investment.  The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Linking to third-party sites in no way implies an endorsement or affiliation of any kind between Arlington Capital Advisors, LLC, or its affiliates and any third party.  The information in this blog constitutes my own opinions (and any opinions posted by guest bloggers from time to time) and it should not be regarded as a description of services provided by Arlington Capital Advisors, LLC or any affiliate.

Brown-Forman Corporation (NYSE:BFA, BFB) sells Finlandia vodka brand to Coca-Cola HBC AG for $220M. The company acquired Finlandia from Altia Corp. (predecessor to the current production partner Anora Group Plc) in multiple phases, obtaining full ownership in 2004. Finlandia was established in 1970 and has remained a leading vodka brand in Central and Eastern Europe with annual volumes of 2.7 million 9-liter cases globally, of which more than 60% is generated within Coca-Cola HBC’s geographic footprint.

Gallo acquires the Hahn Family Wines portfolio, complementing Gallo's existing Central Coast offerings. The strategic investment includes the Smith & Hook, Hahn, and Hahn SLH brands.

Stoup Brewing to acquire Optimism Brewing, a fellow Seattle-based craft brewery. Optimism Brewing produced 1,400 barrels in 2022, up from 1,300 barrels in 2021. Stoup operates taprooms in the Seattle neighborhoods Ballard and Kenmore. The company produced 7,059 barrels of beer in 2022, a +7% increase Y/Y after a +83% increase, to 6,594 barrels in 2021.

After extensive analysis during the diligence phase, Cape May Brewing Company has determined it will not complete the planned acquisition of Flying Fish. In 2021, Flying Fish’s volume declined -13%, to 16,688 barrels, down from its five-year high of 19,250 barrels in 2020, according to the most recent data available from the Brewers Association (BA). Cape May produced about 43,000 barrels in 2022, a decline of around -5%.

💰 Capital Raises:

Alkaline beverage company Hawai‘i Volcanic rasies $10M from L.A. Libations (SIP incubation program), others. Distributed by PepsiCo Hawai'i. Currently in 4,000 accounts. Competitor Waiākea, $12.6M raised, has partnerships with Aaron Judge and

Energy drink brand Gorgie rasies $6.5M from individual investors. CEO Michelle Cordeiro Grant exited online intimate apparel company, Lively, to Wacoal International Corp. for $105M. BevNET New Beverage Showdown.

🥃 Whiskey:

Since opening in 2014, New Riff has seen continual, steady growth. Production and storage facilities have expanded in recent years, with a new barrel warehouse added this year and a distillery expansion that increased production by 50% in 2021. New Riff has also increased its distribution, currently available at retail locations and via direct-to-consumer shipping in a total of 31 states.

🌵 Mezcal:

Mezcal Amarás enters distribution partnership with Beam Suntory. Consumer interest in agave-based spirits continues to grow and it is now the second-largest category in the U.S., with mezcal representing the fastest-growing spirits category globally. In addition to its strength in Mexico, Mezcal Amarás is also available internationally in more than 24 markets including the UK, Spain and China. 

A number of environmental issues regarding unsustainable farming practices: depletion of native vegetation, the harvesting of younger agaves, the use of chemicals, eroding top soil by over-farming, and monoculture (the practice of only growing one type of crop at one time in a specific field). Unsustainable production practices: inefficient use of maguey, fermentation boosters, excessive use of water, animal cruelty (such as the use of donkeys or horses to pull the tahona to crush the agave) and excessive manpower.

📈 Data:

Maine Craft Distilling launched its successful line of RTD craft cocktails in 2018 and the brand continues to show growth in its core New England Region, where it is the third largest brand in both volume and revenue in the highly competitive grocery channel, currently growing 32% in revenue over last year according to recent Nielsen data.

Sales of bitters rose by 6.2% last year, from 51 million cases in 2021 to 54.2m in 2022.

Vodka took the reins as the best selling spirits product in the 1990s but has now ceded the top spot back to tequila with American whiskey close behind. In 2022, American whiskey grew 10.5%, to $5.1 billion.

In the last 52 weeks (ending June 4), Hard seltzer’s dollar sales declined -8.5% and volume -14.7% in multi-outlet plus convenience channels tracked by Circana.

In the last 52 weeks (through May 20), beer increased dollar sales +3.8% in NIQ-tracked off-premise channels (total U.S. xAOC + liquor + convenience). Comparatively, spirits increased dollar sales +2.4% and wine declined -1.7%.

Schilling Cider Q2 shows a 27% increase in depletions compared to 2022, driven by the success of the Excelsior Brand Family and Local Legend. Top growth cider company on the West Coast and the #2 dollar growth Craft or Cider Brand.

5 key trends shaping the liquor industry: 1. Celebrity brands 2. Premiumization 3. No-and low-alcohol 4. Conscious consumers want a story 5. Supply chain and inflationary issues persist

Poppi has achieved success due to its flavorful profiles and functional ingredients, becoming an Amazon best-seller and hitting massive growth, 611% YoY, in retailers like Target.

Spindrift Spiked increased sales +188% and volume (measured by case sales) +31% in NIQ-tracked off-premise channels in the last 52 weeks (through April 22), according to data shared by 3 Tier Beverages.

The world’s biggest-selling vodka brands ranges from 4.1M to 28.1M cases (Sminoff). The category sold 341.5M nine‐litre cases last year, compared with 331.4M in 2021.

💧 Product:

HOP WTR launches Ruby Red Grapefruit flavor

Heaven’s Door, American whiskeys founded by Bob Dylan, unveiled the latest addition to its Decade Series with a Straight Rye Whiskey aged for 10 years, priced at $99.99

Solento Organic Tequila goes national with Total Wine

Bizzy Cold Brew updates branding that emphasizes sustainability and speaks clearly to its consumer base about the value proposition of the brand

Wildwonder launches Pineapple Paradise. The full lineup now consists of 7 SKUs including flavors like Mango Gold (formerly Mango Turmeric), Guava Rose and Strawberry Passion.

Pureboost, Amazon’s number one best-selling antioxidant clean energy drink, launches its newest product – Apple Cider Vinegar.

Casa Azul Tequila Soda launches Grapefruit flavor. The brand differentiates itself from many traditional canned drinks by utilizing real spirits, not malt liquor, and features a simple ingredient list that includes sparkling water, Tequila, natural fruit flavors, and agave nectar. 

Cape May launches Beach Blends Canned Cocktails through Cape May Spirits Co

Hercules Mulligan will now be available in over 40 markets across the U.S., which includes RNDC, Martignetti, and Empire

Blake’s Hard Cider launch two new low ABV core ciders

NOVA and San Diego Wave FC unveil La Ola Dragon Fruit

BODYARMOR rapid rehydration beverage, BODYARMOR Flash I.V.. Designed to deliver the latest in active hydration and functionality for consumers without compromising on taste, BODYARMOR Flash I.V. is scientifically formulated to ensure the perfect balance of carbohydrates and electrolytes for faster absorption and replenishment.

🏨 Conference:

BevNET: The crossover of bev-alc and non-alc products has faced some pushback, with some, including the National Beer Wholesalers Association, expressing concerns that large non-alc beverage companies are using pay-to-play relationships – prohibited in bev-alc – to get better shelf space.

BevNET: Super Coffee’s is planning for flat growth to reset on business fundamentals and in the end.

BevNET Live: Beverage Showdown finalists include The Bad Tea Co extra caffeinated tea, Gutsy fermented beverages, Gorgie sparkling energy drinks, PARCH non-alcoholic agave spirits, daio sparkling water and Life Cider sparkling apple cider vinegar lemonade. Parch, currently available in 47 states and 550 stores and exporting into Canada, won the showdown.

Disclosure: Highly Objective is a Beverage and Cannabis blog curated by Dai Truong, who leads Cannabis Investment Banking and Total Beverage Business Development at Arlington Capital Advisors. Third-party information presented here and links to third-party content are for informational purposes only and are not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument, security or investment.  The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Linking to third-party sites in no way implies an endorsement or affiliation of any kind between Arlington Capital Advisors, LLC, or its affiliates and any third party.  The information in this blog constitutes my own opinions (and any opinions posted by guest bloggers from time to time) and it should not be regarded as a description of services provided by Arlington Capital Advisors, LLC or any affiliate.

M&A: Corby (Pernod Ricard Canada) acquires 90% stake in Ace Beverage Group, Classic Beverage to acquire Scout Distribution, CircleUp acquired by Brightflow AI, DuClaw Brewing acquired by River Horse Brewing

Funding: AF Drinks (Convivialité Ventures), Aplós ($5.5M Series A), Chamberlain Coffee ($7M Series A-2), Green Light Distribution (SixSibs Capital), PartnerSlate Raises $4M, Ohanafy Raises $2.8M, Selva Ventures $34M Fund II 

Product: BeatBox Beverages Hard Tea, Served (Canned Cocktails), Peroni Stile Capri Light Beer, SAYSO packaging redesign

Data: Five Trends Impacting Global BevAlc Growth (IWSR). The Brand Champions 2023 report, Modelo edges Bud Light for selling beer in U.S.

Events: Bar Convent Brooklyn (6/13-14)

Other: Brown‑Forman ($200M Casa Herradura Distillery), Diddy vs. Diageo, Whitebox Cocktails £450,000 Seedrs

Link Only: Carlsberg Marston (CMBC) puts Ringwood Brewery up for sale; Marston’s acquired the company for £19.2M in 2007. Sierra Nevada CEO Jeff White Retires, Founder Ken Grossman Steps in as Interim CEO. New Belgium CEO Steve Fechheimer to Depart, Diageo CEO Sir Ivan Menezes dies following short illness. Southern Glazer’s President Sheldon Stein retires. Pressed Juicery appoints former CEO of Eureka! Restaurant Group, Justin Nedelman as new CEO.

🥃 Bud Light no longer America’s top selling beer [Newsweek]

Constellation Brands has claimed Mexican lager Modelo Especial is now the number one selling beer in the US, overtaking Bud Light, according to reports.

• Newsweek said Modelo Especial sales topped $333M in the four weeks to ending May 28th, which is a 15.6% rise across the same period from last year. Bud Light sales were $297M, a (22.8%) decline over the same period

• NielsenIQ sales data revealed Modelo Especial’s sales were around $341.9M compared to Bud Light’s $298.6M in a similar four week period

• A Jefferies’ survey found that a majority (65%) of distributors surveyed expect the Bud Light downturn to last at least another 6 months, while 32% believe it could be permanent

• Goldman Sachs analyst Bonnie Herzog found that most respondents are “pessimistic about the potential for a full recovery” of Bud Light’s “brand equity and market share.” Those who do see the potential for a turnaround say it could take three to five years.

🥃 Pernod Ricard’s Canadian affiliate Corby to acquire majority stake in Ace Beverage Group Canadian RTD market leader [PR]

Pernod Ricard’s Corby Spirit and Wine (Corby) is to acquire a 90% stake in Ace Beverage Group (ABG), the largest independent player of the fast-growing Canadian ready-to-drink (RTD) market, at an Enterprise Value of CAD$165M.

• Corby will have a path to full ownership of ABG through a series of two call options on the remaining shares, exercisable in 2025 and 2028

• Established in 2020, through the merger of Cottage Springs (founded 2013) and Ace Hill (founded 2015), Ace Beverage Group has become a Canadian RTD leader

• Its flagship brand Cottage Springs is the leading RTD brand in Ontario, with bestselling products that include Cottage Springs Vodka Soda, Vodka Water and Tequila Soda. ABG also boasts a rich and diversified portfolio of other brands such as, Ace Hill, Cabana Coast and Liberty Village.

🥃 Aplós raises $5.5M Series A led by McCarthy Capital. [Food Dive]

Aplós launched in 2020 as a mixologist-crafted, non-alcoholic spirit infused with sustainable, organically-grown broad-spectrum hemp. It was designed to be an alcohol alternative without the calories and hangover, the company said.

• Global sales of no- and low-alcohol category value topped $11B in 2022, according to IWSR

• The nonalcoholic beverage category is expected to grow by 27.6% among 21- to 24-year-olds by 2025, according to IWSR research cited by Molson Coors

🥃 Chamberlain Coffee Closes $7M Funding Round led by existing Blazar Capital, United Talent Agency and Chamberlain herself [BevNet]

The round also brings new investors to the company’s cap table, including growth equity firm Volition Capital, Electric Feel Ventures, PLTFRM founder Noah Bremen, and beverage incubator L.A. Libations, the latter of which had previously worked with the brand to help establish its retail business last year.

• Chamberlain Coffee started in D2C through the company’s website and Amazon, however, started moving into retail with Sprouts, and in April, across 4,000 Walmart stores and will be launching in additional retailers this year

• This $7M round closed in April follows a $7M Series A that closed in August 2022. The Company plans to use the funds for new products and improving supply chain

🥃 AF Drinks raises from Convivialité Ventures [Forbes]

In its home country New Zealand, AF Drinks offers 11 SKUs — Palomas, apero dpritzes, Cuba Libres and more; all zero-proof iterations of regular-proof classics — at 300 different grocery liquor outlets.

• Though the brand only launched in December of 2020, AF now commands 35% of market share within the New Zealand non-alcoholic spirits and ready-to-drink (RTD) category. You can even sip AF Drinks products on Air New Zealand flights.

• After two years in New Zealand, the brand expanded to the United States last February with four SKUs: a zero-proof, zero-sugar vodka spritz, apero spritz, Paloma, and Cuba Libre. AF Drinks is known as Free AF in the US market.

💻 PartnerSlate Raises $4M in Funding [PR]

PartnerSlate is a San Francisco, CA-based online marketplace connecting food & beverage brands and contract manufacturers.

• CPG brands that list in the marketplace get matched to nearly 6,000 co-mans in PartnerSlate’s database

• PartnerSlate has already connected over $1 billion dollars worth of food and beverage projects to co-mans in 2023

💻 Ohanafy Raises $2.8M in Seed Funding [PR]

Ohanafy, a Wilmington, NC-based company which specialises in craft beverage management software, raised $2.8M in Seed funding, led by Cape Fear Ventures.

• Ohanafy’s platform covers all aspects of brewery management, from raw material procurement to sales and distribution

🥃 Sweden’s Norrbottens Destilleri raises £700,000 [The Spirits Business]

The company also launched a modern interpretation of a aquavit, with notes of caraway and dill, with a kick of batak pepper and sun-dried citrus.

• The brand was awarded three Gold medals in the The Gin Masters 2022

Green Light Distribution raises from SixSibs Capital [BevNet]

Green Light Distribution, a leading distributor of small and mid-sized wine and craft spirits brands, announced a new minority growth equity investment led by SixSibs Capital, a Milwaukee-based family-owned private investment company.

• WIth 60 salespeople and five locations with 240,000 square feet of warehouse space across Texas, Green Light offers its supplier partners state-wide coverage, including more than 4,000 retail outlets and premium distribution services

• Green Light expects sales of $250M in 2023

🥃 Jinro, the world’s biggest spirit brand, surpassed 100M cases in 2022 [The Spirits Business]

The Korean soju brand increased by 6.8% to 100.9m nine-litre cases, marking its fifth consecutive year of growth.

• Korea’s soju market is very competitive and limited in size, but even under such difficult circumstances, we have maintained our position as the number-one brand through the brand power accumulated over 100 years and differentiated marketing and sales activities.

• The company will also look to launch new products to “strengthen” its portfolio in the mid to long term. While Jinro’s popularity has attracted competitors, they are not worried.

🥃 Sierra Tequila joins low-ABV trend [The Spirits Business]

Owned by Hamburg‐based spirits company Borco‐Marken‐ Import Matthiesen, Sierra Tequila de México has developed a loyal following in markets around the world, including Germany and the UK. It is available in more than 91 countries, from Australia to Thailand and Chile.

• Since its launch in 1981, the Mexican brand has become known for its iconic sombrero and for being the market leader in Europe. Sierra is also one of the fastest‐growing brands in the spirits sector.

• The company said it has a brand awareness of 53%, citing YouGov’s Brand Index data for 2022.

🥃 Beam Suntory debuts Ardray blended Scotch [The Spirits Business]

Laphroaig owner Beam Suntory has released a new blended Scotch that combines malt and grain whiskies from the Highlands, Lowlands and Islands, called Ardray.

• Beam Suntory owns the Bowmore, Laphroaig, Auchentoshan, and Ardmore Scotch distilleries. The company said it drew liquid from a ‘handful’ of its Scotch distilleries, as well as whisky from its partner, Scottish spirits firm Edrington, owner of The Macallan, Glenrothes and Highland Park.

🥃 Loverboy Launches Limoncello Spritz [BrewBound]

Unlike drinking Limoncello straight, Loverboy’s Spritz is entirely approachable – gently sweet and zesty, never syrupy. Like the rest of the Loverboy Spritz lineup, the new flavor is gluten free, made with zero added sugar and just 110 calories per can.

🥃 Served launches “bar-quality” canned cocktails. [The Spirits Business]

Served’s ready-to-drink (RTD) cocktail range is composed of three of the UK’s ‘most popular’ flavours: Mojito, Passion Fruit Martini, and Piña Colada.

• All of the cocktails are presented at 8% ABV and have have been created to ‘bridge the gap’ between inferior quality, low-ABV canned cocktails and ‘less sessionable’ 10% ABV-and-above offerings

• Served has chosen to naturally sweeten its cocktails with real fruit instead of sugar, giving them an ‘authentic and refreshing’ flavour profile in a category that it says has previously been dominated by ‘sickly sweet, artificial tasting’ products

• The UK RTD category has grown 47.5% in five years and was worth £866M ($1.1B) in 2022, according to the UK White Spirits and RTDs Market Report 2023 by Mintel

🥃 SAYSO Unveils New Sustainable Packaging And New Cocktails [BevNet]

SAYSO has replaced its current box packaging with pouches made from post-consumer recycled materials.

• As a result of this packaging redesign, consumers will enjoy a lower price point of $16 for eight cocktail tea bags, down from the previous price of $24

• SAYSO offers an all-natural alternative using only the freshest, granulated ingredients including dehydrated fruits and herbs dried at peak flavor

• Since July 2022, monthly sales have grown 600% or 38% on average

🧃 BeatBox Beverages ParTEAs Harder with Nationwide Hard Tea Launch [PR]

As the alcoholic tea space grows BeatBox brings its unique take with its Hard Tea: 11.1% ABV, non-carbonated, resealable and recyclable packaging, and low sugar.

• BeatBox Hard Tea was the #1 highest velocity item for the company over the last 4 weeks in test markets. With chains like Circle K, Stater Bros. Markets, GoPuff, Kroger, ampm, and more participating in the test, results have secured additional chain distribution with national partners like QuikTrip, Casey's, Kum & Go, GPM, and countless regional retailers.

• More than 55,000 accounts buying in the last 90 days

Mela partners with Stone Distributing Co. [BevNet]

Mela (11 employees) has partnered with independent California distributor Stone Distributing Co., making it one of the first non-alcoholic beverage brands in the DSD house’s portfolio of beer, hard kombucha and spirits brands.

• Products are sold in single-serve 16.9 oz. cans in about 3,000 stores total across 10 states, including 1,500 accounts in California, and 12-packs of 11.15 oz. cans are available online direct-to-consumer and through Amazon

• Citing SPINS data for the 24-weeks ending March 26, 2023, the brand said it has grown sales by 33.4% in natural, 23.3% in conventional and 62.6% in convenience stores

Ready-to-Serve (RTS) Grew 105% to $298M in Last 52W Sales [BevNet]

Ready-to-serve (RTS) drinks have emerged lately from some big names—Grey Goose’s Martini, Jennifer Lopez’s Delola cocktail, William Grant & Sons’ Milagro Margarita.

• The reach towards RTS is part of the evolution of ready-to-drink products, with spirits-based RTDs and soft drink crossovers the latest in the category evolution kicked-off by rapid growth from hard seltzers

• While RTD growth was at 7% over the last 52 weeks in off-premise channels ending May 13, the premium plus ready-to-serve segment grew 105%, representing $298M in sales

Plaato provides fermentation solutions in large-scale fermentation monitoring [Forbes]

The company was established in 2015 in Oslo by founders Pål Ingebrigtsen and Michael Kononsky, after realizing the existence of a hiccup in the craft beer sector: the impossibility to monitor a process happening behind steel walls.

• The Plaato's proofed tech allows real-time fermentation insights now available to breweries, cideries, and distilleries around the world

• The Plaato's low-cost plug-and-play fermentation sensor links to the SaaS platform that offers remote monitoring and data analysis

• Plaato is currently serving over 250 small or medium sized breweries, cideries and distilleries across 32 countries, including Australia, the U.K. and Canada

📈 Five Trends Impacting Global BevAlc Growth (IWSR/BevNet)

India, Mexico and Brazil take over from the US and China as volume growth drivers; US and China remain key to the industry’s value growth

• Premiumization in whisky will be a key growth driver for the overall spirits category; the premium plus whisky segment contributed most growth to the whisky category in the U.S last year, and will continue on an upward trend (4%)

• Consumer awareness of tequila and mezcal is projected to boost agave alternatives as well (raicilla, bacanora, and sotol) collectively increased by nearly 40% in the U.S. in 2022, and will continue to climb

• After years of double-digit numbers, RTD growth has slowed, declining sharply in the U.S. Globally, RTDs grew 2% by volume in 2022, compared to historical growth of 20% annually from 2018 to 2021

• Globally, the no-alcohol category grew 8% in 2022, and will continue at 7% growth annually until 2027

• Outside the U.S. beer’s outlook is positive with global beer volumes growing 3% in 2022, buoyed by strong performance in India, Vietnam, Mexico, and China

🥃 Bushmills sales pass 1M cases for first time [The Spirits Business]

The Proximo Spirits-owned Bushmills Irish whiskey reported a 9.7% rise in volume sales in 2022 to reach 1.0M nine-litre cases, up from 0.9M.

• The growth marks the first time Bushmills has featured in The Brand Champions, an annual report into the world’s biggest-selling spirits

• Earlier this year, Bushmills opened its £37M ($46M) Causeway Distillery, which more than doubled its production capacity

• Other new entries to The Brand Champions 2023 report include: Belaya Beriozka, a vodka brand owned by Alcohol Siberian Group, grew 43.5% to 1.3M cases. United Spirits also had two brands make it: Indian brand Antiquity Whisky, grew 51.4% to 1.1M cases; and Black Dog Scotch whisky, which grew 51.4% growth to 1.1M cases. Radico Khaitan’s Morpheus Brandy saw 45.5% growth to 1.1M. Bacardi’s Cazadores Tequila grew 32.5% to 1.0M.

🍺 Asahi invests £17.3M ($20M) in lighter beer push for Stile Capri [DrinksRetailing]

The lager, which is 4.2% abv and contains lemon zest, is the brand’s first extension since 1963, the company said. The push will feature four 30-second TV ads.

• Aiming to target 25- to 45-year-olds who want a “more informal beer choice”, this is new territory for Peroni Nastro Azzurro and the first time the brand has entered the lighter lager market space

• According to Asahi, the Peroni brand’s research shows that consumers are seeking lower abv beverages, as part of wider health trends

🥃 Brown‑Forman Invests $200M in Casa Herradura Distillery [PR]

Casa Herradura has been hand harvesting, producing, and estate bottling fine tequilas from the small town of Amatitán, Jalisco, since 1870. Brown‑Forman acquired Casa Herradura in 2007. 

“The world’s growing taste for premium tequila is driving double-digit net sales growth (based on reported net sales growth for the nine months ended January 31, 2023) of our Herradura and el Jimador brands. We believe strong consumer interest in tequila will continue and we’re expanding our production capacity to meet this demand.This strategic investment will improve our production efficiencies and increase our competitiveness.” said Lawson Whiting, President and CEO, Brown‑Forman Corporation

• The first phase will expand the water recycling and treatment plant, followed by the expansion of capacity for distilling, bottling, maturation, and processing. It builds upon Casa Herradura’s commitment to environmental sustainability

• Tequila is the fastest growing spirits category globally by value with the majority of the growth driven by the super premium+ price segment. The U.S. market accounts for 32 million 9L cases and $12B in retail value (IWSR 2022)

• Brown-Forman’s recent M&A activity has been targeted at premium brands, including the purchase of the Diplomático Rum family of brands, which hold top placements for super and ultra premium rums, and Gin Mare, the world’s #1 ultra-premium gin. Its portfolio growth is still driven by its major whiskeys, Jack Daniel’s Tennessee Whiskey and Woodford Reserve, as well as its RTDs offerings. [BevNet]

• Brown-Forman reported 8% organic growth in FY 2023, fueled by its major whiskey brands Jack Daniel’s Tennessee Whiskey and Woodford Reserve, as well as the launch of Jack & Coke RTD cocktail

• The Tequila portfolio rose 10%, with Herradura growing by 11% in its most recent quarter. During the financial year, Brown-Forman purchased Gin Mare and Diplomático Rum

🥃 Diddy is suing Diageo over his vodka and tequila brands [CNBC]

Sean “Diddy” Combs is suing multinational spirits giant Diageo for alleged racial discrimination in the handling of his Ciroc (vodka) and DeLeon( tequila) brands, which Combs claims the company typecast as “Black brands.”

• Diddy claimed Diageo also “sabotaged” his DeLeon brand tequila with shoddy packaging that “made the product look cheap,” while showing other celebrity brands, such as Casamigos tequila, more attention and resources

• Diageo acquired Clooney’s Casamigos in 2017 for $1 billion. It’s the top-selling U.S. tequila brand, representing 12.6% of tequila sales in U.S. retail stores, according to data from Nielsen and consulting firm Bump Williams

• Combs Wines and Spirits entered an equal partnership with Diageo in 2007 for the marketing and promotion of Ciroc. Following the success of the partnership, Diageo co-purchased the DeLeon tequila brand with Combs’ company in 2013

🥃 Whitebox Cocktails seeks £450,000 on Seedrs [The Spirits Business]

The Seedrs crowdfunding campaign will launch on Tuesday 13 June. Whitebox Cocktails has a valuation of £7m ($8.7M). The funds will help to further grow London and Edinburgh-based Whitebox Cocktails, which has experienced ‘rapid growth’ in the UK.

• In 2022, Whitebox Cocktails grew its UK distribution from 60 to more than 700 independent outlets. The brand has recently launched in Selfridges, and is stocked at independent retailers including Shop Cuvée, Clapton Craft and Yield

• Available in Denmark, France and Ireland, Whitebox recently secured a US distribution partner, achieving 400% sales growth in the first 6 months

• In November 2021, Whitebox secured £350,000 ($477,370) to fund a production site in Edinburgh

💻 CircleUp Acquired by Brightflow AI [PR]

The acquisition will combine CircleUp's data and machine learning capabilities with the Brightflow AI financial intelligence toolkit to create a comprehensive solution for consumer companies that need help growing their businesses.

• Despite tracking over 1.6 million brands and 16 million attributes, some brands previously told NOSH it was difficult to gain sustained value from Helio given its price point and limited data set

• The remaining unknown for CircleUp is the future of its venture arm, CircleUp Growth Partners. Though portfolio companies had been told the book of business had been acquired by another firm, with the core investment team moving over as well, the specific acquirer has yet to be disclosed

🚚 Classic Beverage to Acquire Around 1M Cases From Scout Distribution in San Diego [BrewBound]

The San Diego deal between Scout and Classic follows a September transaction that saw Scout and Classic merge beverage-alcohol portfolios in the greater Los Angeles area under the Scout Distribution LA banner.

• Newport Cove Investment Holdings, the parent company of Classic Beverage, became an equity partner in Scout Distribution’s parent, Ocotillo Holdings

• The addition of Scout’s San Diego portfolio will increase its volume to more than a million cases from brands such as Harland Brewing, Latitude 33 Brewing, Nova Brazil Hard Kombucha, Thorn Brewing, 2 Towns Cider, Eppig Brewing, Abnormal Beer Company, and Fall Brewing, among others

• Earlier this year, Classic Beverage added several non-alcoholic brands to its portfolio from Congo Brands (Prime Hydration and Energy brands and Alani Nu)

🍻 DuClaw Brewing (Baltimore, MD) Acquired by River Horse Brewing (Ewing, NJ) [BrewBound]

At its peak in 2021, DuClaw produced 30,201 barrels of beer annually, River Horse Brewing’s production peaked in 2017, with an estimated 10,473 barrels.

• DuClaw is available in 24 U.S. states, the District of Columbia, and Canada

• DuClaw distributes its beers in 23 states, plus Washington, D.C., and Canada

• River Horse will be expanding capacity at its Ewing facility “in order to meet the demands of DuClaw’s national distribution footprint”

💰 Selva Ventures closes $34M Fund II for Emerging Health & Wellness Consumer Brands [PR]

Launched in 2019 with a $10M Fund I, Selva Ventures has invested in leading better-for-you brands including MUD\WTR (coffee alternative), Native Pet (pet supplements), Mid-Day Squares (functional chocolate) and Cake (sexual wellness). The firm focuses on Seed and Series A startups with proven early momentum, and supports their traction with capital and resources across finance, operations and retail partnerships.

• The firm has received backing from Unilever Ventures, PagsGroup and Obelysk, highlighting an investor base that includes a number of investors across the consumer products and professional sports industries

• As Selva Ventures expands its capital base, it is diversifying its areas of focus, with a particular emphasis on the beauty and personal care sector

• More details on the fund from The Consumer VC Podcast

Disclosure: Highly Objective is a Beverage and Cannabis blog curated by Dai Truong, who leads Cannabis Investment Banking and Total Beverage Business Development at Arlington Capital Advisors. Third-party information presented here and links to third-party content are for informational purposes only and are not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument, security or investment.  The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Linking to third-party sites in no way implies an endorsement or affiliation of any kind between Arlington Capital Advisors, LLC, or its affiliates and any third party.  The information in this blog constitutes my own opinions (and any opinions posted by guest bloggers from time to time) and it should not be regarded as a description of services provided by Arlington Capital Advisors, LLC or any affiliate.

Penelope Bourbon was crafted and created in a classic American tradition – to celebrate an impending birth of a child. In 2018, Mike Paladini and his wife, Kerry, found out they were expecting a baby girl, Penelope. To commemorate this occasion, Mike quickly realized he wanted to create a spirit that embodied the daily joy of celebrating life’s pleasures – big and small. Teaming up with his close childhood friend and neighbor, Danny Polise, they set out to discover and produce a Straight Bourbon Whiskey everyone could appreciate and enjoy. A company was born.

🥃 Product.

Penelope’s core expressions, Four Grain, Barrel Strength, Architect and Toasted Series, have received over 30 combined awards and industry accolades.  Most recently, the brand won Double Gold and ‘Best of Class’ at the 2022 San Francisco World Spirits Competition, and was awarded three Double Platinum Medals – along with the title ‘Blender of the Year’- by the ASCOT Awards (2022). In addition to its cornerstone expressions, Penelope continues to introduce new and innovative limited releases within its Cooper Series, Private Select and Founders Reserve lines. Today, Penelope Bourbon is sold in over 30 states and 4 countries.

👨👩 Team.

CEO & Founder, Michael Paladini is also the Founder of Bear Mattress, a Brooklyn-based bed-in-a-box company. He previously worked in Employee Communications at Dynamic Signal, Director of Talent Acquisition at SmartRecruiters and a Director at Buddy Media/Salesforce.

The company has 14 employees on LinkedIn, so the 15 below is likely all FT employees at time of acquisition.

💲 Sales

While MGP’s announcement didn’t include any financial data / valuation multiples, Nielsen off-premise data shows that Penelope had ~$1.6M in Q1 2023 sales, which is up ~104% when compared to Q1 2022 sales. This compares with ~$4.1M in 2022 sales, which grew ~203% over 2021. What we’re missing here is on-premise sales data to try and get a fuller picture of sales.

💵 MGP Acquisition for $215.8M ($105M at close, $110.8M earn-out)

MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of distilled spirits, branded spirits, and food ingredient solutions, announced that Luxco, Inc. subsidiary has reached a definitive agreement to acquire 100% of the equity of Penelope Bourbon. The acquisition includes all intellectual property and inventory of bottled product, as well as Penelope’s aging whiskey inventory on a debt-and-cash-free basis. The upfront consideration is $105.0 million in cash to be paid at closing, with further potential earn-out contingent consideration of up to a maximum cash payout of $110.8 million measured through December 31, 2025 if certain performance conditions are met, reflecting the brand’s current growth potential. The acquisition is expected to be financed using MGP’s existing revolving credit facility and cash on hand.

Transaction Highlights:

• Enhances presence in growing American Whiskey category

• Expands portfolio of premium-plus price point brands

• Leverages Branded Spirits national distribution platform to extend Penelope’s reach

• Current MGP Distilling Solutions customer

• Expected to be immediately accretive to Branded Spirits segment gross margin and consolidated adjusted basic earnings per share after close

• Anticipated total cost synergies of approximately $5 million by December 31, 2025

• Transaction is anticipated to close in June 2023

📈 MGP Strategy

MGP noted in its Q1 2023 Investor Presentation (below) that M&A will continue to be an important lever to increase their capabilities, margin up the portfolio, and accelerate growth in Branded Spirits. Smoke Wagon was also rumored to be a target as the brand is also the largest single purchaser of barrels from MGP outside of Diageo (Dickel and Bulleit), Pernod Ricard (Smooth Ambler) and Constellation Brands (High West and Nelson’s Green Brier) which meant that they could have benefitted from selling more cases immediately as well as having a huge supply of new-make bourbon ready to use in the future.

🧾 MGP Investor Presentation (Q1 2023)

Q1 2023 compared to Q1 2022

• Sales increased 3% to $201.0M

• Gross profit decreased 3% to $69.8M (34.7% GM)

• Operating income decreased 17% to $41.6M

• Net income decreased 17% to $31.0M

• Adjusted EBITDA decreased 15% to $47.1M

• EPS decreased to $1.40 per share from $1.69 per share

• Diluted EPS decreased to $1.39 per share from $1.69 per share

2023 Outlook

• Sales are projected to be in the range of $815–$835M

• Adjusted EBITDA is expected to be in the range of $178–$183M

• Adjusted basic EPS is forecasted to be in the $5.05–$5.20 range, with basic weighted average shares outstanding expected to be ~22.2M at year end

Disclosure: Highly Objective is a Beverage and Cannabis blog curated by Dai Truong, who leads Cannabis Investment Banking and Total Beverage Business Development at Arlington Capital Advisors. Third-party information presented here and links to third-party content are for informational purposes only and are not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument, security or investment.  The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Linking to third-party sites in no way implies an endorsement or affiliation of any kind between Arlington Capital Advisors, LLC, or its affiliates and any third party.  The information in this blog constitutes my own opinions (and any opinions posted by guest bloggers from time to time) and it should not be regarded as a description of services provided by Arlington Capital Advisors, LLC or any affiliate.

🥃 Bacardi Nears Deal To Buy Ilegal Mezcal [BevNet]

Bacardi is close to a ~$200M deal to purchase Ilegal Mezcal, according to reporting in Bloomberg Finance. The group bought an unspecified minority stake in the major mezcal brand in 2017, granting it national distribution.

• L Catterton is also engaging in conversations to purchase the brand, which also also raised from VMG

• The possible deal signals the continued rise of agave spirits. With tequila driving spirits sales, other major spirit groups have brought mezcal and sotol brands into their portfolios. But Ilegal would be Bacardi’s first mezcal, joining tequilas Patrón, Cazadores and Corzo

• In 2017, Pernod Ricard purchased a majority stake in Del Maguey Mezcal for an undisclosed sum, and Constellation brands acquired a minority stake in Dos Hombres Mezcal in 2021

• The mezcal market is currently valued at $338M and is projected to reach $2.1B by 2030, according to Straits Research

🥃 Mark Anthony Brands ‘Bullish’ on Flavor as Bev-Alc’s Present and Future Growth Driver [BrewBound]

In 2022, the flavor category was around 400M cases and $17B in retail sales, with 80% of the volume sales coming from hard seltzers and FMBs and 10% from spirits-based RTDs and 10% from ciders and cheladas

• The fourth category is expected to keep growing with a ~6% CAGR through 2026, pushing to 500M cases and $30B in value. By comparison, traditional beer, wine and spirits are expected to grow by ~1% during the same period

• Beyond growth, flavor is first in: attracting new consumers to alcoholic beverages; household penetration gains; driving innovation sales; and consumer choice

🥃 Amber Beverage Group (ABG) Net Sales grow 17.9% in 2022, driven by its Tequila and Irish whiskey brands. [The Spirits Business]

Luxembourg-based ABG reported sales of €365.8M ($390.8M) for 2022 and EBITDA of €42.9m ($45.8M).

• The group highlighted “strong growth” for its agave spirits portfolio, which includes Rooster Rojo Tequila and Kah Tequila

• Among the challenges highlighted by ABG were an increase in prices for raw materials and energy, the availability of materials, the need to restructure supply chains to meet production plans, and the need to review sales prices

🥃 J.M. Smucker Company to launch liquid coffee concentrate [Food Dive]

The liquid concentrate style will likely spread to Smucker’s other coffee brands (Folgers, Cafe Bustelo) in the near future. [note: this reminded me of Cometeer’s success so far]

• Coffee’s fourth wave hasn’t just brought new life to liquid coffee extracts. It’s also reinvigorated instant coffee grounds

• “Younger consumers want something fast and don’t want to have to worry about brewing, [so] instant is starting to come back into the portfolio” — Joe Stanziano, SVP and GM of Coffee

Heywell and Foxtrot Market Launch Limited-Edition Cherry Limeade Flavor in Time for Summer [BevNet]

As two Chicago-based startups, the relationship between heywell and Foxtrot began when heywell founders Ashley Selman and Britt Dougherty worked from a Foxtrot market as they developed heywell, and continued on as Foxtrot became the brand’s first account.

• heywell quickly became a fan favorite and best seller at Foxtrot, and together have introduced consumers to modern functional beverages and adaptogens

🥃 G.O.A.T Fuel, co-founded by NFL Hall of Famer Jerry Rice in 2020 raises $5M Seed. [Press Release]

• The seed round was led in conjunction by Stage 1 Fund and Morrison Seger Venture Capital Partners, with past investors in the company including former 49ers owner Eddie DeBartolo Jr., serial entrepreneur and Minnesota Timberwolves owner Marc Lore, and co-founder Jerry Rice

• G.O.A.T. Fuel is becoming a go-to energy drink for those looking for healthier, great-tasting energy, and is available online and at roughly 10,000 retail locations across the country including Publix, Target, Walmart, and HEB

• Known for its cordyceps mushrooms—the first energy drink to tap into the powerhouse adaptogen—G.O.A.T. Fuel delivers sustained energy and is also powered by natural caffeine, green tea, BCAAs and 10 essential vitamins to improve recovery. It’s the official energy drink of the Los Angeles Lakers

🥃 The Newest Trend In Gin Is About What’s On The Bottle, Not In It [Forbes]

Recently, a new crop of gins have leaned into design, producing artfully-made bottles that are equally excellent on the palate.

• Brad Pitt’s Gardener Gin, a London-style gin made in partnership with ex-Tanqueray distiller Tom Nichol

• Portofino Gin captures coastal Italy in a square, turquoise-blue bottle painted with a candy-hued panorama of the Riviera coastline

• Glendalough Gin just overhauled the branding of their Wicklow Mountains gin, making it into an arching bottle with a cork top

🥃 Founders Buy Dallas’ Four Corners Brewing Back from Constellation Brands [Dallas Innovates]

The deal comes after Constellation Brands—which bought Four Corners in 2018—made a strategic decision to concentrate on core beers: Modelo, Corona, and Pacifico.

• According to The Dallas Morning News, Four Corners made 14,000 cases in 2013 and grew that number to 178,000 cases in 2018. That’s the year Constellation acquired the brewery

• Four Corners topped out at 228,000 cases in 2020 and scaled back to 165,000 cases by the end of 2022

🥃 Appalachian Mountain Brewery purchases company back from Anheuser-Busch InBev [BrewBound]

AMB has been under A-B control since 2020, after the beer giant acquired the remaining stake in Craft Brew Alliance (CBA), bringing the company’s portfolio into A-B’s Brewers Collective

• The sale of AMB comes at a point of transition for its craft division. In February, A-B ceased production at Platform Beer Co.’s Ohio breweries and shuttered its taprooms, while continuing to produce three of its IPAs for distribution

• The same month, A-B laid off an unknown number of staff members at several of its craft breweries, including Karbach Brewing, Blue Point Brewing, Devils Backbone, Wicked Weed and Goose Island

• Last year, AMB’s volume hovered between 11,000–12,000 barrels. The brewery’s 2023 output is expected to decline slightly as AMB looks for a contract brewing partner

🥃 InvestBev Establish Algoma Capital Lending Platform to Provide Financing to the Craft Spirits Industry [BevNET]

The firm will now have over $100M invested into raw distillate, and owns over 100,000 barrels of aging bourbon, whiskey and Irish whiskey across around the world

• Its new sister company, Algoma Capital, provides credit to premium distillers, brand owners and suppliers seeking to finance barrel inventory on an asset-basis

• The platform is a joint venture with Monroe Capital, a $16B credit shop in Chicago. Algoma sources, underwrites and vets the opportunity, and Monroe services the loan

🥃 Funky Buddha Brewery reacquires business from Constellation Brands. [Brewbound]

“As the industry evolves, trends throughout the craft beer segment have changed significantly and we have therefore made the strategic decision to bring our dedicated Craft & Specialty efforts to a close and transition our remaining brands so that we may focus on driving accelerated growth for our core portfolio, while fueling innovation in key spaces to develop a pipeline of strong brands for the long term,” a Constellation Brands spokesperson told Brewbound.

The brand was acquired by Constellation Brands in 2017 and has had a successful partnership that expanded the brand's distribution.

🥃 Alcohol Pickup & Delivery: Consumer Trends for 2023 [DoorDash]

According to Beverage Daily, alcohol ecommerce is poised to grow 66% by 2025. With that significant growth projection, restaurants and other retailers have an opportunity to capture a slice of the lucrative alcohol delivery market.

• One in ten consumers in the U.S. has ordered alcohol delivery in the past six months

• 67% reporting that they order alcohol online as a treat

• 57% of orders are same-day delivery

• Top types of alcohol ordered:

  • Flavored malt beverages (like White Claw) and hard cider

  • Whiskey, bourbon, scotch

  • RTD cocktails

  • Tequila

  • Vodka

  • Wine and champagne

• Valued at $782 million in 2021, the RTD cocktails market is expected to grow at a compound annual growth rate of 13.4% from 2022 to 2030

• Another category expanding its footprint is low-ABV and non-alcoholic beverages. According to Forbes Magazine, the booze-free drinks market surpassed $11 billion in 2022, driven by consumers who are sober-curious or looking for a healthier lifestyle

🥃 “Diddy Direct” Platform To Locate Combs Spirits [Vibe]

The platform helps retailers and consumers conveniently find, inquire, and purchase any of the bestselling spirits under his Combs Spirits portfolio (CÎROC Vodkas, CÎROC Spritz, CÎROC VS, DeLeón Tequila, and all variants). The new platform also connects customers with bars, nightclubs, and restaurants serving Combs Spirits.

• Combs Global spans across the music, entertainment, media, fashion, and spirits industries with brands including Combs Spirits—Cîroc Vodka and DeLeón Tequil— Bad Boy Entertainment, Love Records, REVOLT MEDIA, Sean John, AQUAHydrate, Capital Preparatory Charter Schools, and The Sean Combs Foundation

🥃 Moth is UK’s fastest-growing RTD brand [The Spirits Business]

Canned cocktail brand Moth is the UK’s fastest-growing, premium ready-to-drink (RTD) brand in the UK, according to new data by Nielsen. Since launching in Waitrose stores in February 2021, the pre-mixed cocktail brand has increased its off-trade distribution by 161%, and can now be found in 2,775 supermarkets across the UK, including Sainsbury’s, Tesco, WH Smith and Morissons. The brand’s portfolio now includes eight cocktails made with award-winning spirit partners in fully recyclable cans.

🥃 Scotch Whisky Association (SWA) said spirits revenue from excise duty grew to £4.1B (US$5.1B) in 2022/23, up 40% since 2013/14 when its revenue was reported as £3.1bn (US$3.8B). [Scotch WHisky Association]

In the same 10-year period, from 2013/14 to 2022/23, beer saw revenue grow by 7% compared with spirits’ 40%, while cider revenue fell by 28%.

• Spirits now account for 33% of all alcohol revenue, up from 29% in 2013/14

🥃 45% of Regional Craft Breweries Beyond Top 50 Increased Volume in 2022 [BrewBound]

Just under 45% of regional craft brewers beyond the top 50 increased production last year, significantly below the nearly 80% that increased production in 2021, as the craft segment continues to battle distribution volume declines.

• Three regional breweries would have made the BA’s top 50 list if contract production was included: #13 Octopi Brewing and its offshoot Untitled Art (+38%, to a combined 220,000 barrels); # 28 Two Roads Brewing (-1%, to 104,025 barrels); and #39 Brew Hub (-3%, to 73,000 barrels)

• Similarly, #46 Montucky Cold Snacks (+21%, to 63,250 barrels) was not included in the top 50 list as it produces its beer at Ninkasi Brewing and City Brewing

🥃 Blake Lively’s Betty Buzz Named Official Training Kit Sponsor of Rob McElhenney and Ryan Reynolds’ Wrexham AFC [Press Release]

Betty Buzz will also be taking over the naming rights of the hospitality suite used by the co-chairmen at the Racecourse Ground, set to be redesigned this June.

• Additionally, Betty Buzz will be a traveling sponsor of the Wrexham AFC American tour – the first time in the club’s history that the first team squad will travel to the United States – offering sample opportunities in and around all stadium locations

• The timing of this announcement marks the beginning of Betty Buzz’s international expansion. All 5 flavors of Betty Buzz are now available in all Whole Foods Market stores within the UK

🥃 The Plot to Steal the Other Secret Inside a Can of Coca-Cola [Bloomberg / @drakepbennett]

Shannon You had access to some of the most closely held information at the company: a set of detailed chemical recipes for the 2-micron-thick plastic liners inside the beverage cans Coke filled and sold. Developed at great expense, they were likely even more important than the theatrically guarded recipe for Coke’s namesake soft drink—that sugary, acidic brew would, without a liner, devour the metal of its can. The liner formulas didn’t actually belong to Coke but to the multinational paint and coatings companies that were its partners. You was responsible for evaluating the formulas; she was one of only two people at Coke with access to many of the specifics.

• Most of the objects we touch, and many we don’t, have a coating

• All of these are developed and sold by paint and coatings companies such as Akzo Nobel, Dow Chemical, PPG Industries and Sherwin-Williams.

🥃 AB InBev stock drops as Analysts look for 'stabilization' in Bud Light sales declines [Yahoo / Brooke DiPalma]

Shares of Bud Light parent company Anheuser-Busch InBev (BUD) are down 7.6% since the company reported earnings May 4 as the Dylan Mulvaney controversy continues to weigh on the beer giant's sales.

• Bud Light sales during the week of May 6 declined 23.6% compared to the same time period last year

• That's a slightly larger decline than the prior week ending April 29, which saw Bud Light sales down 23.4% year-over-year

• Following the initial boycott, sales were down 6.9% for the week ending April 8

🥃 Four Tequila Brands Drive Half of the Category’s On-Premise Sales [Union]

According to recent OnPrem Insights data, Tequila commanded nearly one-third of all spirit sales at Union venues, racing ahead of Whiskey sales.

• The four best-selling Tequila brands — Casamigos, Espolòn, Don Julio, and Patrón — appeared to be securely locked in, representing more than half of all Tequila sales at Union venues over the past year

• Though Tequila is often ordered by brand name, House/Well Tequila drinks (the countless unspecified brands that are not listed by name on a menu) are still the most popular order amongst Union guests

• When it comes to category affinity, Tequila’s dollar sales rival Vodka and Whiskey, but its adoption funnel rates by units still fall slightly below in comparison

🥃 Molson Coors Slaps Anti-‘Woke’ Critics—Like Joe Rogan And Ben Shapiro—And Defends Miller Lite Women’s History Ad [Forbes]

• Miller Lite maker Molson Coors defended a months-old commercial featuring actress Ilana Glazer criticizing the sexist history of beer advertising after it came under fire from conservative commentators and social media users

• Miller Coors has been enjoying a sales bump in the wake of Bud Light’s backlash over their campaign with Dylan Mulvaney

• According to Beer Business Daily, sales volumes of Bud Light for the week ending May 13 fell by (28.4%)

🥃 Non-Alcoholic Space Was $11B Business in 2022 [Food Navigator]

According to Nielsen, the category is up 100% year-over-year

• Brands like Ritual, which makes non-alcoholic whiskey, rum, tequila, and gin, were up 177% Y/Y. It’s currently being tested at 300 CVS locations.

🥃 Texas Beer Distributors Create 14,813 Jobs and $5 Billion in Economic Impact [NBWA]

The National Beer Wholesalers Association (NBWA) and the Beer Institute study found that the U.S. beer industry supports ~2.4 million local jobs and contributes more than $409 billion to the economy (1.6% of GDP). The beer industry also pays more than $132 billion in wages and $63.8 billion in taxes.

🥃 Spirit, Diageo World Class documentary airs [The Spirits Business]

A new feature documentary about Diageo’s World Class competition has aired on Amazon Prime, promising to ‘change the way we think about cocktails forever’.

• The documentary offers insight from some of the industry’s leading trailblazers, including Lyaness owner Ryan Chetiyawardana; director of mixology at The Connaught Bar in London, Agostino Perrone; and World Class Global Bartender of the Year 2017, Kaitlyn Stewart

🥃 White Claw® Introduces New White Claw™ Premium Vodka, the World's First Triple Wave Filtered™ Vodka [Press Release]

White Claw Premium Vodka takes advantage of a change in regulations that for years made vodka tasteless by law in America. The Alcohol and Tobacco Tax and Trade Board (TTB) required the spirit to be "without distinctive character, aroma, taste, or color," so American vodka was engineered to be the same, neutral at best. In 2020, regulators changed the rules to allow for distinction.

Mark Anthony Brands launched the vodka for a few reasons—to take advantage and ownership of the seltzer being served with added vodka along with going head-to-head with older brands like Tito’s, Smirnoff and Absolut that dominate the category. In terms of stealing market share for its vodka range, Mark Anthony Brands has said that it has its eyes on Tito’s and admitted that was largely to do with making its premium vodkas “accessible” for next generation consumers.

White Claw has teamed up with the B&S Group (Dutch company B&S Group with a portfolio of duty free airport shops, trading under the names B&S Shop Fly, Capi and Crew Shop and B&S Shop Fly stores) for global travel retail (GTR).

🥃 Truly Reintroduces Vodka Soda [Press Release]

Boston Beer Company's Truly Hard Seltzer reintroduces its first spirits-based seltzer as Truly Vodka SodaTruly Vodka Soda combines six-times-distilled vodka, real fruit juice, and premium flavors.

• Truly Vodka Soda is renamed from Truly Vodka Seltzer to reflect the classic bar call and stand out on shelves with bright packaging and an expanded range of can't-miss flavors

• All Truly Vodka Soda flavors are 5% ABV with just 110 calories, two grams of sugar, and are naturally gluten-free

🥃 High Noon Tequila Seltzer Launches [Press Release]

High Noon Tequila Seltzer is made with real fruit juice, real blanco tequila, is 100 calories, gluten-free with no added sugar.

• The High Noon Tequila Seltzer 8-Pack will contain eight 355ml cans for an MSRP of $21.99

• "Tequila continues to gain momentum and is one of the fastest growing spirits in the market. We saw an opportunity to expand our offering and bring tequila fans a hard seltzer we know they'll love." — Britt West, SVP & General Manager, Spirit of Gallo

Sweetwater Brewing Launches RTD Mixed Cocktails [PR]

Vodka Soda Citrus and Vodka Soda Punch are available in 12-ounce cans at 105 calories each, featuring premium vodka and real citrus fruit juices.

Owl's Brew Launches New Flavors and Packs [BevNET]

Owl’s Brew’s line of Boozy Tea Cocktails will also include three flavors of Real Tea and Vodka (5% Alc/Vol). The Skinny Hibiscus Margarita was created in collaboration with Jeannie Mai Jenkins and Tequila Tromba. It brings hibiscus, black tea, lime, and strawberry juice.  

• Since its conception in 2020, Owl’s Brew has won over 17 tasting awards for their flavors, and expanded to 18 states

Classic Mineral Water invests £3.4M in third bottling line [PR]

Classic Mineral Water is the oldest water bottling company on the island of Ireland and is an approved supplier of ALDI, Lidl, Dunnes Stores, Musgraves, Bestways and Tesco. It recently announced that it has signed a new £3.8M deal with ALDI Ireland.

• Liam Duffy, CEO and owner of Classic Mineral Water, said: “Through investment in innovative technology and skills we have transformed Classic Mineral Water into a high-speed, state-of-the-art, soft drink processing facility and have achieved a six-fold increase in sales to £12million in just a few years.”

• The company expects to surpass £20M in sales by 2024

BrainPOP, a functional, botanical-enhanced energy drink is building out a better-for-you soda with nootropic ingredients [BevNET]

BrainPOP is now selling in an under-utilized niche in medical clinics, surgery centers and hospital cafes in the metro New York/New Jersey area.

• While the brand might be aimed at medical professionals, a major obstacle to this channel strategy has been that many hospital vending machines and foodservice options are contracted to “juggernaut” large distributors that BrainPOP has not been able to break into yet

• For now, the brand has puffed out its distribution with over 500 locations in convenience stores like 7-Eleven as well as small specialty/natural grocery stores in New York and New Jersey

Josh Landan Shares Why the Ninkasi and Wings & Arrow Merger was the ‘Perfect Fit’ [BrewBound]

Landan, who founded the now defunct Saint Archer Brewery in 2013 and sold it within two years to MillerCoors, is now the CEO of Great Frontier Holdings (GFH), the newly formed parent company of Ninkasi Brewing in Eugene, Oregon, and Wings & Arrow beyond beer offerings Ashland Hard Seltzer, Mucho Aloha Hard Lemonade, Villager Spirits, Voyager Hard Tea and Wings & Arrow Beer Co.

• Between the owned brands, GFH will do about 120,000 barrels, covering about six western states. The co-pack business will add another 40,000 to 50,000 barrels this year (Mother Road and Montucky are lion’s share)

• 250,000 capacity barrels out of facility

• Ashland hit 40,000 barrels in 2022 and did about 36,000 barrels in 2021

E. & J. Gallo Winery (Gallo) acquired Bev and its portfolio of premium canned wines and spritzers. [PR]

The acquisition comes two years after Gallo obtained exclusive U.S. distribution rights for Bev and began to bring the popular brand to more consumers across the country.

• The first ever TTB-approved "zero sugar" canned wine on the market, Bev wines are three carbs, 100 calories per serving, 11.9% ABV, and are all gluten free

• Gallo's Bev portfolio includes Bev Rosé, Bev Blanc, Bev Gris, Bev Noir, Bev Glitz, Bev Glam, Bev Glow, Bev PRIDE, and the newly released Bev Brite. All varietals are from California and are available in 4-packs of 250ml cans and retail between $15.99–$17.99

Datasembly Closes $16 Million Series B Funding led by Noro-Moseley Partners with participation from Grotech Ventures, Topmark Partners and Staley Capital.

“Datasembly provides the best-in-class solution, collecting and normalizing billions of data points weekly. As its customers continue to fight inflation and weather supply chain issues, Datasembly is instrumental in empowering effective pricing, promotion and assortment decisions.”

Datasembly provides critical software and tools to some of the largest and most competitive CPGs and retailers in the world. The new funding will allow Datasembly to scale in a capital-efficient manner, bringing new tools to the market quickly. While legacy market research platforms continue to rely on manual data collection, Datasembly provides competitive intelligence tools that CPGs and retailers need to stay ahead in an instant. [link]

Disclosure: Highly Objective is a Beverage and Cannabis blog curated by Dai Truong, who leads Cannabis Investment Banking and Total Beverage Business Development at Arlington Capital Advisors. Third-party information presented here and links to third-party content are for informational purposes only and are not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument, security or investment.  The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Linking to third-party sites in no way implies an endorsement or affiliation of any kind between Arlington Capital Advisors, LLC, or its affiliates and any third party.  The information in this blog constitutes my own opinions (and any opinions posted by guest bloggers from time to time) and it should not be regarded as a description of services provided by Arlington Capital Advisors, LLC or any affiliate.