This week on Just Drinks – Here’s what we think

Why brand owners’ online activity needs to align with environmental credentials – Consumer Trends In our increasingly digitised world, it’s very easy to forget that not everyone uses the internet. In fact, roughly 40% of the world’s population aren’t currently active internet users. This is likely to change in the coming years. Supply Chain Special – What’s the impact on spirits? – comment Following our considerations of how the supply chain squeeze is affecting the soft drinks and wine categories, Richard Woodard turns his attention to spirits. Winter Olympics 2022 – Just Drinks considers the future for soft drinks in China – data As the Winter Olympics enter their final weekend in Beijing, Just Drinks, with the help of exclusive GlobalData figures, considers the value of the soft drinks category in China. Constellation Brands silent on Monster Beverage Corp merger reports Constellation Brands has declined to comment on recent speculation linking the group with a possible merger with Monster Beverage Corp. Why a Constellation Brands, Monster Beverage Corp merger has its issues – focus The exact structure of any deal between Constellation Brands and Monster Beverage Corp remains unclear, but if reports are to be believed the two companies are mulling a full-scale merger, which could be announced in a matter of weeks. Just Drinks thinks: Given Monster’s vocal disinterest in producing alcoholic versions of its namesake energy drinks giant and Constellation’s previous brand extension rap sheet - a Corona hard seltzer spin-off that got Anheuser-Busch InBev all riled up - a merger of the two looks like a match both parties might be better swiping left on at present. [Deputy editor James Beeson] In our coverage of brand owners' results: Heineken bounceback begins with double-digit sales lift in 2021 – results data Heineken has maintained its double-digit sales growth throughout 2021, with the 12-month top-line coming in up by just over 12%. Just Drinks thinks: Price increases - both current and future - were front and centre in Heineken’s results announcement this week. CEO Dolf van den Brink warned of “off the charts” inflation that has increased the brewer’s costs by almost 15% and will force it to put up prices. However, coming off the back of double-digit sales growth and an 80% leap in profits - and against a backdrop of a growing cost-of-living crisis - could Heineken not have timed its price-rise talk a little more sensitively? [Deputy editor James Beeson] Treasury Wine Estates acclimatises to lack of China as six-month sales dip – results data A strong showing in the ‘Americas’ provided a fillip for Treasury Wine Estates in the second half of last year, as the absence of sales in China for the group continue to bed in. ‘Away from home’ boosts Coca-Cola Europacific Partners in 2021 – results data Coca-Cola Europacific Partners has closed out 2021 with a healthy final quarter, contributing to a 12-month sales increase of 7.5%. Boston Beer Co expects flat-to-10% growth for US hard seltzer as Q4 sales take a beating – results data The Boston Beer Co suffered a torrid end of 2021, with the brewer reporting a near-25% slide in sales from the three months to the end of December. Cuervo holds firm to end 2021 up double digits – results data Cuervo has built on its impressive 2020, today posting 12-month sales approaching US$2bn. PepsiCo beverage sales climb 8% in Q4 – results PepsiCo saw its North America Beverages’ division finish strongly last year, pulling up sales for the 12 months of 2021 by double digits. On Just Drinks' news pages: PepsiCo open to further brand licensing in alcohol PepsiCo is keen to participate further in the alcohol sector beyond the launch of Hard Mtn Dew later this month. Portfolio consolidation frees up “mind space” for The Coca-Cola Co – CEO Brand eliminations at The Coca-Cola Co had a “minimal” effect on both sales and profits last year, according to CEO James Quincey. Asahi Group review prompts site closures in Japan, health-focus worldwide Asahi Group Holdings has unveiled plans to restructure its supply chain network in Japan, resulting in the closure of several facilities. Just Drinks thinks: Asahi’s strategy may look like simple supply chain optimisation, but it's deeply connected to climate change and wider investment in sustainable production. The group's renewable energy and C02-capturing brewery showcases the path Asahi is looking to take. ESG is at the heart of Asahi’s restructuring and, as BlackRock CEO Larry Fink continually warns in his annual letters: “Every company and every industry will be transformed by the transition to a net-zero world. The question is, will you lead, or will you be led?” [Reporter Conor Reynolds] UK gin exports slide again as COVID, Brexit disruption continues Gin exports from the UK have fallen for the second year in a row, according to the latest figures announced by Her Majesty’s Revenue & Customs (HMRC) today. Anheuser-Busch InBev targets e-sports in Latin America with Riot Games tie-up – video Anheuser-Busch InBev is looking to bring the virtual and physical environments together in Latin America through a partnership with developer Riot Games. Boxer Tyson Fury takes on Red Bull and Monster with Furocity energy brand Heavyweight boxer Tyson Fury is rolling out his own brand of energy drink in the UK this month. From our parent company, GlobalData: Beverage brand owners have their eye on the cloud with job hirings – data The proportion of beverage companies hiring for cloud-related positions was up again, according to recent research, with 55.9% recruiting for at least one position in the area. Robotics rise continues in North America for drinks brand owners – data North America has extended its dominance for ‘robotics’ hirings among beverage companies, according to recent research. Supply chain, logistics headaches made real in beverage filings – data References to the terms ‘supply chain’ and ‘logistics’ in beverage companies’ filings have risen markedly in recent months, according to recently-released data. Artificial Intelligence hiring levels on the rise in beverages – data The proportion of beverage companies hiring for Artificial Intelligence-related positions rose significantly last month, according to recent research, with 41.2% recruiting for at least one position in the area.