American craft brewers are now bracing for a shakeout after years of strong gains, and alcohol brands cite legal concerns with advertising on Snapchat. This year’s weather conditions cause an early harvest for Southern Rhône Valley, and Latis Imports and Radeberger Gruppe USA mutually end their sales arrangement. This is the news we’re thinking about here at SevenFifty Daily.

August 24, 2017
1. Fox Business

For some craft brewers, sales decline

Shipments are falling for many independent brewers stuck in the middle between local niche brands and competitors that were bought by megabreweries like Anheuser-Busch InBev and Molson Coors. Those losing ground include Sierra Nevada Brewing Co. and Sam Boston Beer Co., as well as smaller producers such as upstate New York’s F.X. Matt Brewing Co. and Louisiana’s Abita Brewing Co. According to Beer Marketer’s Insights, craft breweries are either stretched too thin, in too much debt, or are unable to retain their independent appeal to customers while expanding.

2. Digiday

Alcohol brands are reluctant to advertise on Snapchat

Alcohol brands say they are hesitant to spend money on Snapchat, citing concerns about the platform’s ability to verify that ads are only served to people 21 and up, as well as the overwhelming numbers of younger people who use the app. Snapchat’s users’ ages break down as follows, according to a spokesperson: 22 percent are between 13 and 17; 36 percent are 18 to 24; 27 percent are 25 to 34; and over 15 percent are over 35. An eMarketer report released this week found that Snapchat will overtake Facebook and Instagram among the 12-to-17 and 18-to-24 age groups in the U.S. this year.

3. The Drinks Business

Early harvest for Southern Rhône Valley

Harvest started in Southern Rhône Valley on August 21st this year, weeks before harvest last year. In the Northern Rhône, harvest is predicted to start on September 4th, two weeks earlier than in 2016. The Southern Rhône experienced a mild, dry winter with unseasonably warm temperatures in February and March, which led to an early bud-break. Conditions improved in mid-May as the rain passed and temperatures rose well above the seasonal average, causing rapid vine growth. At the beginning of summer, temperatures increased further, with very hot and dry weather speeding up grape ripening. The Southern Rhône has experienced “extreme heat” in the last few weeks meaning the grapes are approaching optimum ripeness.

4. Brewbound

Latis Imports and Radeberger Gruppe USA End Sales Arrangement

Bavaria N.V. owned Latis Imports has announced plans to mutually end its sales agency agreement with Radeberger Gruppe USA (RGUSA) at the end of September. Following its sale to Bavaria N.V., Latis Imports determined that it wanted to oversee sales of the Palm and Rodenbach brands, in addition to the new Bavaria brands, such as Hollandia, that it was now tasked with selling in the U.S. Latis Imports plans to employ as many as eight sales representatives and territory managers to sell the company’s portfolio.