Hard Mtn Dew was a bright spot in an otherwise challenging second quarter for Boston Beer. Founder and Chairman Jim Koch said the flavored malt beverage (FMB) product, produced under a license from PepsiCo, is among three brands including Twisted Tea and Truly hard seltzer that have “the most potential to positively impact our business” during the second half of this year. The comments came during a quarterly conference call for investors on July 21. Hard Mtn Dew is distributed by PepsiCo’s Blue Cloud alcohol distribution arm. Boston Beer CEO Dave Burwick, a former PepsiCo executive, said Hard Mtn Dew had reached seven states, with five additional states expected to launch this year. That represents a slowdown in the pace of state-by-state introductions, some of which have been shifted to 2023, according to Boston Beer. As BD has previously reported, the rollout has been delayed “in certain states due to a slower-than-expected regulatory process,” Burwick said. Hard Mtn Dew’s performance has showed “good promise,” grabbing an 18 share of FMBs “in measured off-premise channels where it’s distributed in those markets,” he said, adding, “We’re in this for the long-term, and we’re very encouraged the early consumer response has been so positive.”
TOO EARLY TO DETERMINE REPEAT RATES, CEO SAYS. Asked by an analyst about repeat rates for Hard Mtn Dew, Burwick said it was too early to make a call on that measure “because it’s a strange launch” with varying timing per state and a focus on large grocery stores with ambient displays, rather than immediate consumption stores such as convenience stores. FMB market share trends for Hard Mtn Dew have fallen from the 20s in the spring, Burwick acknowledged, adding, “The amount of trial that was delivered off this is extraordinary. I’ve never seen anything like it, quite honestly. There’s a novelty around Mountain Dew that drove huge trial rates.” Burwick said the brand is the No. 1 FMB in markets where it is sold, and that the product’s sales velocity at retail is two-times to five-times that of the No. 2 brand. “Ideally next year, we want to go all out,” he said. “As we get more distribution, and importantly deeper distribution within these markets, then we’ll get a real sense of repeat.”
© 2022 Beverage Digest.
Design, CMS, Hosting & Web Development :: ePublishing