Welcome to Issue #1 of The Quench Report, the newsletter that delivers the latest and greatest in Beverage Alcohol shaken and stirred straight to your inbox.

What’s on tap for today:

• 🍺 Top 10 beer brands in the U.S. over the last nearly 50 years

• 🆕 The opportunity for emerging Delta-9 brands

• 🌎️ Food vs Bev-Alc - a GLP-1 showdown for the ages

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🍺 A BRIEF HISTORY OF THE TOP BEER BRANDS IN THE U.S.

People newer to the Bev-Alc industry might be surprised to jump in the DeLorean and review the top 10 beer brands of 1980. Miller Genuine Draft #2? Bud Light, not even a twinkle in the eye yet of Budweiser? No Seltzers? Great Scott! Check this out 👇️ 

• While the largest few brands have been relatively stable, the next tier comes and goes. More often than not, brands that enter the bottom of the top 5 stay there for less than 10 years.

🆕 CATEGORY REVIEW - DELTA9 - A COMMENT ON CHURN

Given the rapid regulatory oscillation in Texas around Delta-9, we thought it would be interesting to examine one of the biggest opportunities today with Delta-9 beverages: improving repeat purchase rates and reducing brand churn.

Right now, repeat purchase rates are... well, let’s say they’re a work in progress. They’re trending up, but only about a third of what we see in the top energy drink or bev-alc brands. Unsurprisingly, the category's still young, and consumers are just starting to dip their toes.

Want a peek at how wobbly brand loyalty can be? Let’s head north, where they have had legal beverages for many years. In Canada, it’s common to see only 2 or 3 of the top 5 brands hang onto their spots year over year in the top provinces. That’s highly unusual in CPG — a sign that consumers are still shopping around for brands to love, not just try.

🌎️ A GLP-1 SHOWDOWN - FOOD VS BEV-ALC

Wondering how analysts' concern over GLP-1 in Bev-Alc compares to Food?

Considering that question, we looked at quarterly investor call prepared remarks and Q&A transcripts for the largest public Bev-Alc and Food suppliers. What we found. 👇️ 

Short answer: No surprise, there is more intense attention in Food.

Long answer: Intensity and timing of GLP-1 related questions were somewhat unexpected…

In Bev-Alc, there is a slow simmer - a CEO might get a question on it once a year, but the category intensity isn’t there. It’s rare for more than two suppliers to get a question during any cycle.

Food is different. In certain quarters, generally those that capture the winter holidays, virtually every CEO gets the question and intense scrutiny.

Call us biased, but we believe GLP-1 has minimal impact today in Bev-Alc. That belief is demonstrated by the relatively minimal and sporadic attention the topic receives in quarterly investor messaging compared to a more impactful category like Food.

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