Morning Brew - ☕ Lighten up

Heineken goes light on beer at big games.
August 10, 2023

Retail Brew

It's Thursday, everyone. Can’t say it’s much of a surprise, but Amazon has announced its second Prime Day sales event of the year that’s expected to take place in October ahead of the holiday shopping season. Part 1 was a success for the company, but can the sequel outshine the original? Just take a look at Growns Ups 2, and you’ll have your answer.

In today’s edition:

—Erin Cabrey, Alex Vuocolo, Andrew Adam Newman

MARKETING

Beering it all

Heineken's Formula One partnership Heineken

This year, Heineken has been making a push into the light beer space, and is using Formula One, tennis, and music festivals to do it.

In March, just days before the beer market would be shaken by Bud Light’s partnership with Dylan Mulvaney, Heineken debuted Heineken Silver—a lower-carb, lower-calorie premium beer—in the US to help the world’s second-largest beer company gain a foothold in the US light beer market.

While Heineken reported a tough second quarter last week, with a 5.6% drop in volume, CEO Dolf van den Brink said on its earnings call that Silver had grown its volume by 45%, and in the US is seeing “encouraging early results in distribution build-up and rate of sale.” He also said the company has “significantly” boosted US marketing spend to build on “the momentum that we’re now gaining” on Silver.

Part of that marketing strategy is introducing the product through new and existing event partnerships, Frank Amorese, VP of media and partnerships at Heineken USA, told Retail Brew. He said the brewer made the decision before the product debuted to do the “full changeover” to lead with Heineken Silver and introduce the product to new and existing customers.

That includes both longstanding partnerships, like music festival Coachella and this month’s US Open Tennis Championships, and a newer focus in the US, Formula One, capitalizing on the rising stateside interest in the sport, Amorese said, in the hope of giving fans an experience (and, of course, a beer) they’ll never forget.

Keep reading here.—EC

     

FROM THE CREW

How to work with influencers

The Crew

Did you know 69% of creators report that a brand’s relevancy to their audience is a top priority when considering a partnership? Each influencer has a unique voice, perspective, and ability to connect with audiences ranging from niche communities to millions-strong followings. Tapping into these influencers and forging powerful partnerships can be a major boost for your brand.

But creating a beneficial partnership can be challenging, so Marketing Brew created a comprehensive guide to drafting contracts, measuring KPIs, and picking the right influencers to represent your brand. Equip your team with the essential knowledge to venture into this thriving landscape.

Download the guide here.

OPERATIONS

Popping off

Closed Party City location at 125th Street in Manhattan Alex Voucolo

Bankrupt Party City might cut its successful balloon business loose.

The party supply chain is weighing a spinoff of Anagram, a leading manufacturer of foil balloons, according to a Bloomberg report citing anonymous sources—and some partners aren’t surprised.

“It’s a fantastic business,” Elissa Mast, owner of E&R Sales, a wholesale balloon distributor in Virginia, said. “So it’s not gonna go away.”

Indeed, while Party City struggled prior to declaring Chapter 11 bankruptcy earlier this year, Anagram was generating profits, which the cash-strapped parent company borrowed. A global shortage of helium and a shift in consumption away from non-essential items were partially to blame.

Party’s not over: Anagram’s strong position relative to Party City was well-known among wholesalers. David Hays, owner of Midwest Balloon & Party in Nebraska, said he assumed that the bankruptcy would be followed by a spinoff.

Keep reading here.AV

     

STORES

LaForge-ing ahead

Illustrated collage of portraits of Margaret Getchell LaForge, Stephanie Forshee Illustration: Francis Scialabba, Photos: Stephanie Forshee

Margaret Getchell LaForge is by many accounts the first woman ever hired as a retail executive when Rowland Hussey Macy promoted her, in 1866, to the superintendent of his then eight-year-old dry-goods store in Lower Manhattan, R.H. Macy. LaForge’s story has been largely lost to history (had you heard of her?), so business journalist Stephanie Forshee has written a biography of the executive for children called Hidden Gems: Margaret Getchell LaForge.

We asked Forshee about the hurdles LaForge faced later in her career, whether Macy’s has done enough to honor her legacy, and why Forshee herself took to Kickstarter to fund the book.

This interview has been edited and condensed for clarity.

In 1872, Rowland Macy was getting older and, Succession-style, let it be known that he was going to name his successor. Although Margaret at this point had stepped away from the second-in-command spot temporarily since she’d gotten married and had children, she was still working at Macy’s part-time. So was she in the running? There is an account that says there were rumors that Margaret would be named partner in the company. It’s unclear what her expectations were for that, but Macy does decide to name his nephew Robert Valentine and Margaret’s husband Abiel LaForge as partners in the company.

And then there’s the matter of what happens to Margaret’s pay when Macy names her husband as a partner and he gets an ownership stake. Margaret’s pay is taken away. Rowland [Macy] gives his reason [that] the money is still going to the same pot of money. And…she continued to work even though she was technically not paid for her individual labor.

Keep reading here.—AAN

     

JOBS

Are you an exec looking to make your next career move or join a board of directors? We’ve partnered with ExecThread, where you can find thousands of confidential job opportunities and board roles that aren’t listed anywhere else. Check out positions like:

SWAPPING SKUS

Today’s top retail reads.

Beauty behind the madness: In the not-so-distant past, Farfetch has made a number of moves to expand its beauty business, including acquiring Violet Grey for $49 million, but it seems the company hasn’t done enough to distinguish itself in the space. (Beauty Independent)

Lovin’ it: Like it or not, McDonald’s Grimace birthday campaign worked, so the fast-food chain is digging up an old character from its commercials in the ’80s and ’90s to test a new concept that is slated to go live early next year. (USA Today)

Throwback: Gap is in need of a win and might have found it. Demand for its vintage clothing items has hit a fever pitch at a time when resale and secondhand clothing is also in vogue. (Forbes)

NUMBERS GAME

The numbers you need to know.

UPS drivers scored a huge dub recently, and because of the new deal the company reached with Teamsters union, the average full-time driver will now make $170,000 a year, including healthcare and benefits.

But as we all know, not all states are created equal and that $170,000 a year might not go as far in some places. Plus, the victory was for UPS, not delivery drivers broadly—84% of whom feel underpaid, according to a survey data from e-bike rental platform Whizz.

  • New York is the worst state for last-mile workers, according to Whizz’s research, which says the average monthly income for drivers in the Empire State doesn’t cover basic cost of living and leaves workers, on average, $136 in debt by the end of the month.
  • The next worst states for drivers include Hawaii, Vermont, Delaware, Tennessee, California, North Carolina, Georgia, Washington, and Massachusetts.

“Everybody that relies on this vital workforce owes it to them to ensure they’re earning enough to survive,” Whizz CEO Mike Peregudov said in a statement. “After all, if those tips don’t cover the bills, the sector will soon lose its appeal among job seekers. Then who will we rely on to collect our orders when we don’t feel like leaving the house?"

On the other hand, North Dakota ranked as the best state for delivery workers, followed by Montana, Kansas, South Dakota, Wyoming, Iowa, Arkansas, Michigan, Minnesota, and New Hampshire rounding out the top 10.

  • Last mile workers in the top three states are could be able to save anywhere from $1,300 to $1,500 a month despite current economic conditions given lower living expenses.

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Written by Erin Cabrey, Alex Vuocolo, and Andrew Adam Newman

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