Will beer survive the latest consumer craze? The lion still roars, and more

Read time approx. 4 min.

Just Tapped

We've been chewing the fat lately about how shifting consumer habits and trends are causing some heartburn for the beer biz. One of those trends in particular has us scratching our heads and wondering about the bigger picture: the whole health and wellness thing. Along with that, this week we share a couple of quick stories about legacy breweries transitioning in a couple of different ways. Let’s get to it.

An Ethical Dilemma

The emerging health and wellness vibe in the U.S. is shaking things up, and it's not just the beer industry that's feeling the pinch. Consider the recent buzz about GLP-1 drugs like Ozempic. A whole lot of folks are turning to these drugs to shed some pounds. That trend is impacting more than America’s waistline.

Last week, in an interview with Bloomberg, a Walmart bigwig spilled the beans, revealing that Walmart’s data shows that shoppers who buy these GLP-1 drugs are also buying fewer snacks and groceries. Boom! Reports about those comments caused Mondelez International's shares to drop by 7.7 percent in just two days. Mondelez is the company behind snacks like Oreos and Ritz crackers. Other munchable companies like General Mills, Kraft Heinz, Hershey, and PepsiCo (Frito Lay) also saw their share prices take a significant hit. Good thing beer isn’t a snack food, right?

The alcoholic beverage industry is far from immune. The money-minded folks at Morgan Stanley recently conducted a study of 300 patients who are currently shedding pounds the GLP-1 way. Oh, and by the way, Morgan Stanley predicts that around 24 million Americans (about 7 percent of adults) will be using these kinds of drugs by 2035. The study showed that 62 percent of the patients are drinking less alcohol, and almost 25 percent are skipping the booze altogether.

According to the CDC, more than 40 percent of American adults qualify as obese. So, if some of our fellow Americans decide it's time to shed a few pounds, that's got to be a good thing. Right? Even if it means they're hoisting fewer pints, it's a good thing. Right? If you produce or sell beer, it's a bit of an ethical head-scratcher, no doubt.

Time once again for the craft beer industry to do what it does best: get creative. Is there a way we can legitimately pitch craft beer as part of a healthier lifestyle? “Craft beer is the reward for all of your other hard work.” “Skip the ice cream, not the IPA.” Got something better? Send us a pitch. Send us your thoughts.

A Legendary Lion Still Roars

Mac & Jack’s African Amber roared onto the scene back in 1993 and quickly grew into a surprisingly successful craft beer brand. By the mid-90s it was a regular offering, a familiar tap handle at sports bars and even some dive bars around the Seattle-Tacoma area. Craft beer was not there yet, but this one was. Mac & Jack’s was an early and remarkable success story.

That was a long time ago. Mac and Jack --the actual dudes, not the brand-- have been ready to move on for some time. Late last week, we learned that Mack & Jack’s Brewing was acquired by Ackley Brands, a Seattle-based wine company. By all indications, it’s about as good a situation as anyone could hope for. Read more about the acquisition and the transition here.

The End of a Long and Winding Road

The story of Two Beers Brewing is coming to an end. The 15-year-old Seattle brewery announced yesterday that it will cease operations in the coming months, following its 16-year anniversary celebration. The company did a few things that no other breweries did, carving out its own innovative, if not circuitous, path through the beer industry.

For instance, Two Beers Brewing spun off a sister company, Seattle Cider Co., which became much more successful than the brewery. It partnered with some Hollywood mucky-mucks who, for whatever bizarre reason, wanted to reintroduce beer drinkers to old-fashioned steel cans. (Failing with other people’s money is always entertaining😉.) It made a hard run at the hard seltzer gambit before most people even knew what seltzer was. In 2016, a French agricultural and food-processing group acquired the whole kit and caboodle. And that ain’t all. A circuitous path.

Short version, the brewery had been languishing for years in the shadow of the cidery. Shutting down the beer-making side of the business will not impact the cider-making side of the business. In fact, Seattle Cider Co. and its taproom will retain the brewery’s employees. So that’s some happy news: nobody is losing their job. Read more about it here.

Say What?

Last week we poked a little fun at the Great American Beer Festival and fully expected to get some feedback from GABF hardcores. We got none. So, what does that say? Whatever feedback you’ve got about whatever, we love to hear it.

This week's Taster Tray was composed by Kendall Jones.