Craft Brew News – 1/25/2019

ZX Ventures-Backed Kombrewcha Refreshes Look, Expands Distribution

Amid growing interest in more “functional” alcoholic beverages, one of the country’s pioneering hard kombucha brands is undergoing a makeover in an effort to appeal to younger female consumers looking for boozier versions of the fermented tea beverage.

Originally launched in 2013 as a more traditional non-alcoholic kombucha, Kombrewcha — which was co-founded by Honest Tea co-creator Barry Nalebuff and received investment from Anheuser-Busch’s ZX Ventures in 2016 — has upped its alcohol content and unveiled new packaging as an emerging hard kombucha category begins to develop.

Speaking to Brewbound, Kombrewcha CEO Garrett Bredenkamp said the moves — which include a transition from bottles to cans and expanded distribution to the Pacific Northwest — were the byproduct of consumer feedback from the last year. The company’s core customer — active 28- to 45-year-old women — wants a sessionable beverage with a slightly higher ABV and natural ingredients packaged in cans, he said.

So starting in March, Kombrewcha will increase the ABV of its three core offerings — Royal Ginger, Lemongrass Lime and Berry Hibiscus — from 3.2 percent ABV to 4.4 percent ABV.

Those products will also move into 6-packs of 12 oz. cans, sold at a suggested retail price of $11.99, as the company phases out 4-pack bottles.

Kombrewcha, which was originally founded as a non-alcoholic beverage company, pivoted a little more than a year ago to become one of the first hard kombucha brands. The boozy version of Kombrewcha launched in New York City, where it gained shelf placements at Whole Foods and Trader Joe’s stores, as well as more than 100 on-premise accounts.

New York Prohibition Party Seeks Alcohol Ban

A political party seeking to ban beer, wine and spirits has re-formed in New York, according to NYup.com. Dormant since the 1940s, the New York Prohibition Party reemerged in 2017 with a goal of establishing “a lasting prohibition of the manufacture and sale of alcohol, to abolish the alcohol industry, and to establish a teetotal culture,” the outlet reported.

The party is targeting Gov. Andrew Cuomo, who has been a vocal supporter of the state’s craft alcohol industry and given tax credits, grants and other incentives to emerging companies.

“Governor Cuomo is perhaps the worst governor on alcohol issues that our state has had since Herbert Lehman [New York’s governor when Prohibition ended in 1933],” the NY Prohibition Party told NYup.com in an email. “His support for the alcohol industry is unethical and has harmed the people of New York.”

BrewDog to Fly UK Investors to Ohio

BrewDog is getting into the airline business… sort of. The Scottish craft beer makers announced an exclusive trip for its Equity for Punks investors to go from London to Ohio, on February 21st through the 25th.

“Our shareholders are involved in every aspect of our business – for a chance to check out our Columbus brewery like never before, there’s no better way to travel than with BrewDog Airlines,” the company wrote on its website.

BrewDog said it would give travelers a behind-the-scenes look at its Columbus brewery as well as tours of other breweries in the region.


Canopy Growth Corporation to Invest Up to $150 Million in New York Production Facility

Less than a month after the signing of the 2018 Farm Bill, Canadian cannabis company Canopy Growth Corporation has announced plans to invest up to $150 million to establish its first U.S. production facility in New York state.

Earlier this week, Canopy announced that the Empire State had granted it a license to begin processing and producing hemp. In a press release, Canopy said it would invest between $100 million and $150 million to build a U.S. operation in New York’s Southern Tier. The company added that it plans to establish “large-scale production capabilities focused on hemp extraction and product manufacturing,” which would allow it to produce “tons of hemp extract” annually.

Canopy called its expansion into the U.S. “another example of the strategic advantage” last year’s $4 billion investment from Corona and Modelo maker Constellation Brands provides the company.

For their part, executives with the New York-headquartered Constellation Brands have expressed confidence in Canopy’s ability to achieve a $1 billion (Canadian) revenue run rate within the next 18 months. CEO Rob Sands, who will be supplanted by current president and COO Bill Newlands in March, has referred to cannabis as the “most significant global growth opportunity for the next decade.”

Sales of legal cannabis in North America are forecasted to grow to $24.2 billion by 2021, according to BDS Analytics, which tracks cannabis industry trends.

Canopy credited the work of U.S. Sen. Charles Schumer in helping pass the Farm Bill, along with Gov. Andrew Cuomo’s creation of the “Hemp Research Pilot Program,” for its decision to establish a base in New York state.

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Michael Potorti is the Host of Craft Beer Storm and Founder/Brewer at Beara Brewing Co. in Portsmouth, NH

Michael Potorti
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michael@bearairishbrew.com

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