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04/23/2020

Lagunitas Declined “High-Single Digit” in US thru Q1

Lagunitas had its tuffest qtr yet in US since acquired by Heineken. Volume slipped “high-single digit,” parent co Heineken noted in its Q1 release. That follows low-single digit declines in US each of the last 2 yrs tho co continued to grow overall thanks to big increases internationally. But in Q1, Lagunitas US sales were softer than separately run Heineken USA unit (down mid-singles) for first time.  So total Heineken sales in US took another tuff hit altogether, even as Heineken brand family grew low-singles driven by Heineken 0.0.

Of course, COVID-19 played its part in impacting Q1 numbers, including some of Lagunitas’ largest mkts (i.e. NorCal) among earliest to shelter in place. Globally, Heineken anticipates performance across all biz units “to worsen in the second quarter” and be “impacted” thruout 2d half of the year. But Lagunitas had been on a tuff track outside of coronavirus impacts as well. Recall, several key leadership members have been replaced recently, including CEO, CMO, VP of sales, as co also went thru sizable rounds of layoffs over last couple yrs. Sales of flagship Lagunitas IPA noticeably picked up off-premise since introduction of 12pk cans, flyin’ nearly +40% in latest pantry-loading periods. But several other core brands are slippin’ at steep rates, including Little Sumpin’ $$ down 19%, Sumpin’ Easy down 15%, and Lagunitas Seasonal and 12th of Never each down more than 30% YTD thru Mar 22 in IRI multi-outlet + convenience data shared by BWC Consulting.

Overall, Lagunitas continues to improve in latest tracked off-premise scan data, consistently growing double-digits each week and $$ now up 3% YTD thru Apr 12 in IRI. But loss of on-premise seems to be weighing heavy on Lagunitas.

Publishing Info

  • Year: 2020
  • Volume: 11
  • Issue #: 38
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