1 00:00:00,200 --> 00:00:02,640 Speaker 1: Here's a big story that came out of the beer world, 2 00:00:02,840 --> 00:00:06,240 Speaker 1: and it was that michelob Ultra is now the number 3 00:00:06,240 --> 00:00:08,640 Speaker 1: one beer in the United States of America. 4 00:00:08,680 --> 00:00:09,840 Speaker 2: Did that news surprise you? 5 00:00:09,960 --> 00:00:12,040 Speaker 3: It did surprise me. And the first thing we did 6 00:00:12,160 --> 00:00:14,280 Speaker 3: was try to find a guy. Well, you know, we 7 00:00:14,320 --> 00:00:16,360 Speaker 3: always got a guy no matter what the topic is. 8 00:00:16,360 --> 00:00:19,439 Speaker 3: The Kendelin Casey Show has a guy, and we've got 9 00:00:19,480 --> 00:00:22,119 Speaker 3: a guy. Brad Koppenstein has worked in the beer industry 10 00:00:22,160 --> 00:00:25,079 Speaker 3: for decades and knows it better than anybody else I know. 11 00:00:25,280 --> 00:00:28,400 Speaker 1: Yeah, so let's get him on the WIBC hotline and 12 00:00:28,600 --> 00:00:32,640 Speaker 1: get his take on this. Brad, Mick Ultra now the 13 00:00:32,840 --> 00:00:35,640 Speaker 1: number one selling beer in the United States. 14 00:00:35,760 --> 00:00:36,440 Speaker 2: Your thoughts. 15 00:00:37,320 --> 00:00:40,760 Speaker 4: It's interesting, it's inevitable. However, it's almost kind of like 16 00:00:40,800 --> 00:00:41,839 Speaker 4: a race to the bottom. 17 00:00:42,240 --> 00:00:44,200 Speaker 2: Oh interesting, Why do you say that. 18 00:00:44,960 --> 00:00:48,040 Speaker 4: Well, beer sales are down overall about five percent I 19 00:00:48,040 --> 00:00:51,080 Speaker 4: think this year, and so it's not so much that 20 00:00:51,159 --> 00:00:55,520 Speaker 4: Mick Ultra is increasing drastically. It's that Madilos really started 21 00:00:55,560 --> 00:00:56,200 Speaker 4: to fall off. 22 00:00:56,920 --> 00:01:00,960 Speaker 1: Okay, Now I saw in this report that it's not 23 00:01:01,160 --> 00:01:05,840 Speaker 1: by sales, it's by volume that Mickultra is number one. 24 00:01:06,800 --> 00:01:10,480 Speaker 4: That is correct. So if you look out there, so 25 00:01:11,080 --> 00:01:14,240 Speaker 4: domestic beer, bud Light, Miller Light, Core's Light, those are 26 00:01:14,240 --> 00:01:16,319 Speaker 4: all going to run you twenty to twenty five dollars 27 00:01:16,400 --> 00:01:19,480 Speaker 4: a case. Mcultra is going to be twenty five to 28 00:01:19,520 --> 00:01:21,440 Speaker 4: thirty it's a little higher, but Midello is going to 29 00:01:21,520 --> 00:01:23,880 Speaker 4: come in more like thirty five dollars a case. So 30 00:01:24,720 --> 00:01:28,080 Speaker 4: just my pure dollar volume, Medello still is the leader 31 00:01:28,160 --> 00:01:30,319 Speaker 4: just because if they have a higher per case price. 32 00:01:31,040 --> 00:01:33,800 Speaker 4: But if you're just looking at pure barrels, it is 33 00:01:33,840 --> 00:01:34,560 Speaker 4: now Mickultra. 34 00:01:35,360 --> 00:01:39,399 Speaker 3: So Brett, where does the entire beer industry stand? And 35 00:01:39,440 --> 00:01:42,080 Speaker 3: I know you've got a strong background in this, but 36 00:01:42,120 --> 00:01:45,360 Speaker 3: from my perspective, you know, from about nineteen ninety to 37 00:01:45,440 --> 00:01:48,920 Speaker 3: about twenty twenty was probably like the greatest run for 38 00:01:49,000 --> 00:01:51,640 Speaker 3: the beer industry ever. We had all these micro breweries 39 00:01:51,680 --> 00:01:54,920 Speaker 3: coming in and craft beer was big. But now that 40 00:01:55,000 --> 00:01:57,760 Speaker 3: run up seems to be over. Where do you see 41 00:01:57,760 --> 00:02:00,520 Speaker 3: the kind of overall state of the beer industry right now? 42 00:02:01,200 --> 00:02:03,400 Speaker 4: It's trying to find its legs, and some of it 43 00:02:03,440 --> 00:02:05,920 Speaker 4: is there's just so many alternatives out there. You've got 44 00:02:06,720 --> 00:02:09,720 Speaker 4: all these Seltzers that are out there, things like long Drink. 45 00:02:10,919 --> 00:02:14,880 Speaker 4: It just the options for consumers are huge now, Jim, 46 00:02:14,919 --> 00:02:19,120 Speaker 4: to your point, per tapita, beer consumption actually peaked in 47 00:02:19,240 --> 00:02:23,320 Speaker 4: nineteen eighty. In nineteen eighty, so it was our parents 48 00:02:23,440 --> 00:02:24,440 Speaker 4: they drank a lot. 49 00:02:24,600 --> 00:02:29,200 Speaker 3: Wow. Okay, that surprised me because, like I said, it 50 00:02:29,200 --> 00:02:31,240 Speaker 3: seemed like, you know, in the nineties and early two thousands, 51 00:02:31,280 --> 00:02:33,960 Speaker 3: we had all these micro brews and craft beers and 52 00:02:34,160 --> 00:02:37,000 Speaker 3: everybody seemed to be talking about beer. But beer consumption 53 00:02:37,080 --> 00:02:39,400 Speaker 3: had already declined by that point. 54 00:02:39,360 --> 00:02:42,040 Speaker 4: Right, just yeah, on a per person. So in the nineties 55 00:02:42,080 --> 00:02:45,880 Speaker 4: and the early two thousands, the adage in the beer 56 00:02:45,919 --> 00:02:49,200 Speaker 4: business was that people were drinking less, but they were 57 00:02:49,240 --> 00:02:52,560 Speaker 4: drinking better. And so, you know a lot of these 58 00:02:52,560 --> 00:02:54,400 Speaker 4: styles that had kind of gone away, you know, you 59 00:02:54,480 --> 00:02:58,440 Speaker 4: did through the eighties you never saw wheat beers. You know, 60 00:02:58,480 --> 00:03:01,280 Speaker 4: you would barely ever see October Best or back beers. 61 00:03:01,400 --> 00:03:03,760 Speaker 4: And then you know, all the all the really rich styles, 62 00:03:03,880 --> 00:03:06,920 Speaker 4: the IPAs and things, they really started to make a comeback. 63 00:03:07,040 --> 00:03:10,440 Speaker 4: So dollars were still flowing into the industry. The cacraft 64 00:03:10,440 --> 00:03:13,280 Speaker 4: brewing industry was really starting to grow and carve at 65 00:03:13,280 --> 00:03:17,560 Speaker 4: its niche. But in recent years, people have been turning 66 00:03:17,560 --> 00:03:19,520 Speaker 4: a lot more to spirits, I know, Jim, you're kind 67 00:03:19,520 --> 00:03:20,320 Speaker 4: of a whiskey guy. 68 00:03:20,440 --> 00:03:20,799 Speaker 3: I am. 69 00:03:21,000 --> 00:03:23,600 Speaker 4: And yeah, and so, you know, people have kind of 70 00:03:23,600 --> 00:03:26,520 Speaker 4: shifted the spirits. Some of this was societal, I know, 71 00:03:26,760 --> 00:03:28,760 Speaker 4: like back when I was in college in the late 72 00:03:28,760 --> 00:03:31,960 Speaker 4: eighties early nineties, it was all about keg parties. Well, 73 00:03:31,960 --> 00:03:35,160 Speaker 4: when they started cracking down on keg parties on college campuses, 74 00:03:35,480 --> 00:03:38,920 Speaker 4: then people shifted to pregaming, pregaming with a handle of 75 00:03:39,000 --> 00:03:42,040 Speaker 4: vodka or something, and people's flavors, you know, their their 76 00:03:42,080 --> 00:03:43,080 Speaker 4: preferences changed. 77 00:03:43,600 --> 00:03:45,960 Speaker 3: Yeah, you know, and I see a lot of reports 78 00:03:45,960 --> 00:03:49,200 Speaker 3: too about how gen Z overall drinking a lot less 79 00:03:49,200 --> 00:03:52,640 Speaker 3: alcohol in general, So that's affecting things. Where does the 80 00:03:52,640 --> 00:03:55,160 Speaker 3: beer industry kind of go from here? What do they 81 00:03:55,200 --> 00:03:57,360 Speaker 3: do to kind of turn this tide of this decline 82 00:03:57,400 --> 00:03:58,640 Speaker 3: that they've been in for decades. 83 00:03:59,760 --> 00:04:02,440 Speaker 4: That a good question. I think you see just a 84 00:04:02,480 --> 00:04:06,640 Speaker 4: lot of them really starting to invest in the seltzer companies, 85 00:04:08,200 --> 00:04:10,960 Speaker 4: and they're you know, even like I'm sitting outside of 86 00:04:11,000 --> 00:04:14,440 Speaker 4: sun King right now. Sun King is getting into spirits 87 00:04:14,440 --> 00:04:18,480 Speaker 4: and distilling, and I think the firstification and you're also 88 00:04:18,520 --> 00:04:20,840 Speaker 4: seeing a blend of it used to be beer, wine 89 00:04:20,839 --> 00:04:23,760 Speaker 4: and spirits, Well now You're starting to see ready to 90 00:04:23,839 --> 00:04:26,719 Speaker 4: drink cocktails that sometimes are made with spirits, other times 91 00:04:26,720 --> 00:04:30,359 Speaker 4: are wine based, and you're really blurring the lines of 92 00:04:30,360 --> 00:04:33,560 Speaker 4: what the industry is and I think that's going to continue. 93 00:04:33,960 --> 00:04:37,839 Speaker 4: Consumer cases have always been whatever flavor is familiar to people, 94 00:04:37,920 --> 00:04:39,960 Speaker 4: So like ciders really had a big run, and it's 95 00:04:40,000 --> 00:04:43,240 Speaker 4: because those when those people were kids, they gret apple juice. 96 00:04:43,680 --> 00:04:45,040 Speaker 4: And now you're seeing the same thing. 97 00:04:45,640 --> 00:04:47,120 Speaker 2: Brat Kloppenstein is joining us. 98 00:04:47,120 --> 00:04:50,560 Speaker 1: We're talking about the announcement that michelob Ultra is now 99 00:04:50,880 --> 00:04:55,200 Speaker 1: the best selling beer in the country, just surpassing Medello. 100 00:04:55,600 --> 00:04:58,159 Speaker 1: I'm curious about the data that they used. Of course 101 00:04:58,440 --> 00:05:02,440 Speaker 1: they define this unit so versus revenue. So Brett, how 102 00:05:02,480 --> 00:05:05,760 Speaker 1: do you think the michelob Ultra aligns with like current 103 00:05:05,839 --> 00:05:10,360 Speaker 1: consumer trends like the health consciousness or active lifestyles. 104 00:05:10,520 --> 00:05:12,440 Speaker 2: Do you think that contributes to it at all? 105 00:05:13,200 --> 00:05:16,240 Speaker 4: Oh? It does? I mean it. If you remember the 106 00:05:16,240 --> 00:05:17,880 Speaker 4: old there used to be a knock on what they 107 00:05:17,920 --> 00:05:20,200 Speaker 4: called three two beer, so like in a lot of states, 108 00:05:20,200 --> 00:05:22,880 Speaker 4: Ohio is one. I think Minnesota might still have it 109 00:05:23,320 --> 00:05:26,359 Speaker 4: where you could only buy beer on certain days or 110 00:05:26,400 --> 00:05:29,400 Speaker 4: certain ages that is three point two percent alcohol. Or less. 111 00:05:29,720 --> 00:05:33,440 Speaker 4: Michelolo Ultra is a three point two percent beer, so 112 00:05:33,720 --> 00:05:37,920 Speaker 4: you know, the alcohol content is going down and consumers 113 00:05:37,960 --> 00:05:41,280 Speaker 4: are a lot more health conscious, and as you mentioned, 114 00:05:41,360 --> 00:05:43,680 Speaker 4: the non alcoholic beers are really starting to have a 115 00:05:43,680 --> 00:05:44,160 Speaker 4: good run. 116 00:05:44,440 --> 00:05:46,520 Speaker 1: How much do you think the bud Light boycott and 117 00:05:46,560 --> 00:05:50,440 Speaker 1: their sales drop contributed to Micultra going to the top. 118 00:05:51,520 --> 00:05:54,720 Speaker 4: It's certainly contributed to it. I find it funny they're 119 00:05:54,760 --> 00:06:00,320 Speaker 4: the same company, right they Yeah, if at last I 120 00:06:01,080 --> 00:06:04,080 Speaker 4: heard Hammer saying on his show that he went to 121 00:06:04,120 --> 00:06:05,600 Speaker 4: a ball game and he had the option of bud 122 00:06:05,640 --> 00:06:07,920 Speaker 4: Light or BC Ultra, and he chose the Biculture because 123 00:06:07,960 --> 00:06:10,160 Speaker 4: he wasn't going to drink bud Light. And like, you know, 124 00:06:10,240 --> 00:06:11,159 Speaker 4: it's the same people. 125 00:06:11,400 --> 00:06:14,960 Speaker 1: It's all Ann Haeuser Busch, it's just different packaging. 126 00:06:15,240 --> 00:06:17,119 Speaker 4: Yeah, that's exactly right. 127 00:06:17,279 --> 00:06:17,559 Speaker 2: Yeah. 128 00:06:17,640 --> 00:06:21,040 Speaker 4: There was a Simpsons episode where they Homer went to 129 00:06:21,160 --> 00:06:24,760 Speaker 4: the Duff brewery and they had one vat that was 130 00:06:24,760 --> 00:06:27,800 Speaker 4: feeding three lines of Duff, Duff dry and tough light. 131 00:06:30,200 --> 00:06:32,120 Speaker 4: Especially with the an Hyder Bush, there's a lot to 132 00:06:32,120 --> 00:06:33,760 Speaker 4: that that. It's a lot of it is all the 133 00:06:33,800 --> 00:06:35,440 Speaker 4: same base, and that's a matter of how they thin 134 00:06:35,520 --> 00:06:35,960 Speaker 4: it out. 135 00:06:35,920 --> 00:06:38,560 Speaker 3: More marketing than actually product differentiation. 136 00:06:38,800 --> 00:06:42,320 Speaker 4: Yeah, it is it. Really the beer business is really 137 00:06:42,360 --> 00:06:44,200 Speaker 4: born on marketing. I don't think there's a person out 138 00:06:44,200 --> 00:06:46,080 Speaker 4: there where they had the first sip of beer and said, Man, 139 00:06:46,120 --> 00:06:47,479 Speaker 4: this is great. I'm gonna drink this the rest of 140 00:06:47,480 --> 00:06:50,880 Speaker 4: my life. It is kind of an acquired taste, so 141 00:06:51,160 --> 00:06:54,359 Speaker 4: given that people aren't just initially drawn to it, A 142 00:06:54,400 --> 00:06:57,080 Speaker 4: lot of it is marketing and imaging and what you 143 00:06:57,120 --> 00:06:58,280 Speaker 4: want to be associated with. 144 00:06:58,640 --> 00:07:01,719 Speaker 1: You do you know about any specific marketing campaigns or 145 00:07:01,800 --> 00:07:04,680 Speaker 1: sports partnerships that have helped Micultra. 146 00:07:05,800 --> 00:07:08,520 Speaker 4: Mic Culture went all in on like World Cup soccer, 147 00:07:08,920 --> 00:07:11,560 Speaker 4: and I know that has helped them a lot. 148 00:07:11,720 --> 00:07:14,560 Speaker 1: That's probably helped them globally more than in the United 149 00:07:14,600 --> 00:07:16,360 Speaker 1: States though it has. 150 00:07:16,560 --> 00:07:20,640 Speaker 4: And yeah, and so I know a lot of products 151 00:07:20,680 --> 00:07:23,200 Speaker 4: and they say this in a beer business, a lot 152 00:07:23,200 --> 00:07:25,360 Speaker 4: of brands will have a life cycle that runs about 153 00:07:25,360 --> 00:07:28,679 Speaker 4: thirty years. And you know, I think Bud Light, Miller 154 00:07:28,800 --> 00:07:30,480 Speaker 4: Light are kind of at the end of their life cycle. 155 00:07:30,920 --> 00:07:34,760 Speaker 4: Core's Light might be getting there, whereas Micultra, I still 156 00:07:34,760 --> 00:07:36,400 Speaker 4: think of it as new, but it's been under market 157 00:07:36,440 --> 00:07:40,360 Speaker 4: now for probably twenty years, and it's kind of it's 158 00:07:40,360 --> 00:07:42,480 Speaker 4: having its day and there will be something else that 159 00:07:42,480 --> 00:07:43,320 Speaker 4: will come up behind it. 160 00:07:43,560 --> 00:07:45,920 Speaker 3: Well, if they invested that much in World Cup soccer, 161 00:07:46,520 --> 00:07:49,760 Speaker 3: they'll probably see more start to reap those rewards next year, 162 00:07:49,920 --> 00:07:52,440 Speaker 3: as the World Cup is coming to the United States 163 00:07:52,440 --> 00:07:55,320 Speaker 3: in twenty twenty six, and so that's probably more of 164 00:07:55,360 --> 00:07:56,880 Speaker 3: a long term play for Mick Cultra. 165 00:07:57,120 --> 00:07:59,960 Speaker 4: Yeah, oh, I'm sure it was. Yeah, you lock it 166 00:08:00,080 --> 00:08:02,600 Speaker 4: down early knowing that you're going to need it when 167 00:08:02,880 --> 00:08:05,440 Speaker 4: when it comes to the United States. That's smart marketing. 168 00:08:05,480 --> 00:08:08,280 Speaker 4: I mean, and isier Bush has really been the best 169 00:08:08,280 --> 00:08:10,800 Speaker 4: in the industry on locking down. They've done it with 170 00:08:10,880 --> 00:08:15,440 Speaker 4: baseball football getting into the stadiums, and you know, it's 171 00:08:15,480 --> 00:08:17,440 Speaker 4: what really launched them into being number one in the 172 00:08:17,480 --> 00:08:18,360 Speaker 4: seventies and eighties. 173 00:08:18,440 --> 00:08:21,119 Speaker 2: Brett Kloppenstein is joining us. We're talking about Bear. 174 00:08:21,520 --> 00:08:24,640 Speaker 1: Do you think other brands like Medela or even bud 175 00:08:24,760 --> 00:08:26,560 Speaker 1: Light could regain the top spot. 176 00:08:27,760 --> 00:08:30,880 Speaker 4: Medilla certainly could. Madela had a couple of things at play. 177 00:08:30,960 --> 00:08:34,600 Speaker 4: I think half of their consumers are actually Hispanic, So 178 00:08:36,080 --> 00:08:39,760 Speaker 4: I think that the Hispanics just in general are getting 179 00:08:39,800 --> 00:08:42,440 Speaker 4: together less to socialize out of you know, some beer 180 00:08:42,600 --> 00:08:46,480 Speaker 4: ice coming in, and I think that there's some of 181 00:08:46,480 --> 00:08:48,679 Speaker 4: those people that are just going back to Mexico or 182 00:08:48,720 --> 00:08:52,440 Speaker 4: wherever they were, so they are just by definition, drinking less. 183 00:08:53,240 --> 00:08:56,000 Speaker 4: I think the tariffs have not helped at all, just 184 00:08:56,040 --> 00:08:58,959 Speaker 4: because it's more expensive for them to bring medello in 185 00:08:59,000 --> 00:09:01,959 Speaker 4: from Mexico now, so their price point is going to 186 00:09:02,000 --> 00:09:06,920 Speaker 4: continually go higher. Right, So, but I think it'll probably 187 00:09:06,920 --> 00:09:08,719 Speaker 4: settle in about where it is and stay this way 188 00:09:08,880 --> 00:09:10,120 Speaker 4: for at least a couple of years. 189 00:09:10,400 --> 00:09:12,440 Speaker 1: Okay, A couple last questions for you? What are you 190 00:09:12,440 --> 00:09:14,560 Speaker 1: doing at sun King? What are you doing there? Are 191 00:09:14,600 --> 00:09:15,920 Speaker 1: you just like stalking them? 192 00:09:16,280 --> 00:09:17,520 Speaker 2: Open the door? 193 00:09:19,000 --> 00:09:23,040 Speaker 4: Pretty much? Is it every morning? Now? Indianapolis Brewing Company 194 00:09:23,120 --> 00:09:26,439 Speaker 4: is a beer of theirs that used to be my brain. 195 00:09:26,559 --> 00:09:28,840 Speaker 4: I own that logo and I sold that to him, 196 00:09:29,040 --> 00:09:32,199 Speaker 4: and part of my deal I get beer every once 197 00:09:32,240 --> 00:09:33,800 Speaker 4: in a while, and today happens to be that. 198 00:09:34,720 --> 00:09:36,640 Speaker 3: He's there to pick up his order, right, got the 199 00:09:36,679 --> 00:09:38,440 Speaker 3: weekend coming up? Need some supplies? 200 00:09:38,679 --> 00:09:40,040 Speaker 2: Gotcha right now? 201 00:09:40,080 --> 00:09:42,839 Speaker 1: You mentioned you mentioned back in college. I know you're 202 00:09:42,880 --> 00:09:46,599 Speaker 1: a perdue grad. Were you doing Kegstans in Lafayette in 203 00:09:46,640 --> 00:09:47,080 Speaker 1: your day? 204 00:09:48,160 --> 00:09:52,520 Speaker 4: I've done at least a couple Let's see upside down. 205 00:09:52,559 --> 00:09:57,120 Speaker 4: Margarita's were a thing. Yeah, man, I missed those days. 206 00:09:57,160 --> 00:09:59,480 Speaker 3: But back in the day, that's how you judged how 207 00:09:59,559 --> 00:10:02,199 Speaker 3: much of a rager that party was by the number 208 00:10:02,200 --> 00:10:05,600 Speaker 3: of kegs. Oh you know what, seven keg party, twenty 209 00:10:05,679 --> 00:10:06,920 Speaker 3: five keg party? 210 00:10:07,000 --> 00:10:07,920 Speaker 2: Oh my god. 211 00:10:08,040 --> 00:10:10,880 Speaker 3: I mean that was the metric that was used to 212 00:10:10,920 --> 00:10:12,440 Speaker 3: talk about how great the party was. 213 00:10:13,160 --> 00:10:15,880 Speaker 4: Yep. Well, I remember the beer delivery truck coming down 214 00:10:15,960 --> 00:10:17,720 Speaker 4: the alley and there was like six fratern of these 215 00:10:18,240 --> 00:10:20,400 Speaker 4: three on each side of the alley, and we get 216 00:10:20,440 --> 00:10:23,040 Speaker 4: an announcement over our intercom. Stand, hey, we need like 217 00:10:23,120 --> 00:10:25,280 Speaker 4: six people with IDs to come down here because we 218 00:10:25,320 --> 00:10:29,120 Speaker 4: can only get two kegs per ID. So that was 219 00:10:29,160 --> 00:10:32,640 Speaker 4: a Friday afternoon all to get down here. 220 00:10:32,720 --> 00:10:33,040 Speaker 3: Uh huh. 221 00:10:33,080 --> 00:10:34,960 Speaker 2: And you're putting that degree to good use, are you. 222 00:10:35,559 --> 00:10:38,080 Speaker 4: Oh yeah, let's say we run a chamber of commerce. 223 00:10:37,760 --> 00:10:43,640 Speaker 1: Now, okay, Well, thank you very much for joining us. Brad, 224 00:10:43,720 --> 00:10:44,640 Speaker 1: have a great weekend. 225 00:10:44,960 --> 00:10:48,160 Speaker 2: Thanks guys, Thanks for yeah cheers. This is the Kendilly 226 00:10:48,240 --> 00:10:50,360 Speaker 2: Casey Show. It's ninety three WIBC.