CBA Turns its pH Experiment into New Growth Unit

Dear Client:

Last year, Craft Brew Alliance announced a new project to mine consumer insights. Dubbed the pH Experiment beverage initiative, its objective was to “explore opportunities outside of beer.” Meanwhile they also launched a consumer research projects with the Yale Center for Customer Insights and global consultancy Prophet.

Now they’re codifying these initiatives in a standalone business unit. Where last year’s project simply tapped consumer focus groups for insights [see CBD 09-05-2018], this evolution will actually pilot a handful of brands in certain markets this year, to either eventually scale, or quickly scrap.

The first brand to hit the market from this unit? Pre Aperitivo Spritz, a 6.6% ABV “dry, botanical bubbly with an herbaceous bitterness that stays unapologetically true to a classic Italian aperitivo.” Available in both 12 oz. six-pack cans and clear bottles, to test which is more popular in certain markets (they’ll announce specific markets shortly), Pre is gluten free and has only one gram of sugar. It is set to hit sometime this spring.

They’re not just looking at craft beer. “As opportunities arise, the unit will also explore options to partner or access resources beyond current capabilities. The pH Experiment is targeting $25 million in revenue by 2025,” per announcement.

More details in BBD.

HERE’S WHO’S DISTRIBUTING AND PRODUCING THE 19 CRIMES BEER LINE

Yesterday we shared news of the popular wine brand, 19 Crimes, testing a trio of beers in Ohio [see CBD 03-04-2019]. Today we have a few more details on the matter, regarding the producer of these brews in the state, the distributor, and why Ohio?

Alright first things first, who’s creating these new brews? That’d be the popular contract brewing company out of Denver, Colorado, Sleeping Giant Brewing Company. Treasury Wine Estates, owner of the 19 Crimes brand, tells CBD that they’ve selected Sleeping Giant to be the “exclusive brewer for the 19 Crimes beer range.”

And what about distribution in Ohio? TWE has tapped their wholesale partner in the state, Heidelberg Distributing, to handle distribution duties for the new beer line statewide. Recall the three beers – an IPA, lager, and pilsner – hit Ohio earlier this month and each carry a hefty price tag of $12.99 per six pack of cans.

So if the line is coming from Denver why test it up in Ohio? TWE says they selected Ohio as the testing ground for the line, as the state “has always been an enthusiast market for us with an incredible distribution partner who distributes both our beer and wine.”

More as it rolls in.

Until tomorrow,

Jenn, Jordan, and Harry

“There is only one you… Don’t you dare change just because you’re outnumbered!” – Charles Swindoll

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