Dogfish Head sales up 20% in 2012 as family of eight IPAs pace growth

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(Milton, DE) – Last week, BeerPulse reached out to Dogfish Head VP of Sales, Adam Lambert, after he sent a note to wholesalers detailing the company’s sales performance in 2012. Lambert shared it with us to pass along to our faithful readers…

As for 2013, Dogfish Head is in the midst of an 18-month, $52 million expansion according to Lambert and Co-Founder, Sam Calagione, adds that the brewery is “putting almost 400,000 barrels of new capacity in the ground and we are committed to high-teen or low-twenties percent growth for years to come.”

“While we are not opening any new states in 2013 our family of wholesalers has grown with the addition of nine new members in one of our long time existing footprints,” says Lambert. “As our family of wholesalers grows so will our family of Regional Managers. In 2013 we will add three new positions bringing our sales force to a total of 12 outstanding Dogfish Head Regional Managers covering all 27 states.”

In 2012 we accomplished the following:

  1. Our barrels (bbls) shipments to wholesale grew by 20%. We passed our anticipated goal of 170,112 bbls by 2,505 bbls reaching an annual shipped number of 172,617 bbls.
  2.  

  3. Our total case-equivalent (CE) wholesale depletions grew at an annual pace of 22%.
  4.  

  5. Our portfolio mix and growth consisted of the following:
    1.  

    2. Seven core beers accounted for 82% of our total volume and grew at a pace of 20%
    3.  

    4. Five seasonal beers (including Tweason’ale) accounted for 11% of our total volume and grew at a pace of 38%
    5.  

    6. Twenty occasional beers accounted for 7% of our total volume and grew at a pace of 45%
    7.  

  6. Brand Highlights
  7.  

    1. Fastest growing core brands were Burton Baton at 80% on a small base and 90 Minute IPA at 31% on a large base.
    2.  

    3. Fastest growing seasonal brand was Festina Peche growing 51%
    4.  

    5. Fastest growing occasional brand was 120 Minute growing 82% making it our number one occasional beer sold in 2012.

     

  8. 2012 Success stories:
  9.  

    1. We sold 3,900,426 four packs in 2012 at an average ABV of 9.1%
    2.  

    3. Our IPA portfolio consisted of eight different beers and grew at a pace of 25%. This portfolio contributed to 76% of our total annual volume.
    4.  

    5. We released two new beer-hybrids, one a cider-beer hybrid and one a wine-beer hybrid. Combined these two beers accounted for well over 14k CE’s.
    6.  

    7. Our newest seasonal and first entrance into the Gluten Free Category was released four times in 2012 and reached over 37K CE’s sold.
    8.  

    9. Our living beer / bottle conditioned series continued to grow reaching 350,676 750ml bottles sold in 2012.
    10.  

  10. Account / Distribution Recap:
  11.  

    1. Off Premise accounted for 66% of our total business and grew at a solid pace of 20%.
    2.  

    3. On Premise accounted for 34% of our total business and grew at a solid pace of 25%.
    4.  

    5. Our number one packaged brand distribution base increased by 4,100 points of distribution over a 12 month period. Our turns increased in the same period of time by well over half a case per point of distribution. Thus the accounts we were placed in were the right accounts. We experienced no dilution from added shelf placements.
    6.  

    7. Our number one draft brand distribution base increased by 580 points of distribution over a 12 month period. As with our case turns we had an increased rate of sale within these accounts. Right handles in the right accounts.
    8.  

  12. States and Territories:
  13.  

    1. We still sell 51% of our total volume within the surrounding states of Delaware. The markets we classify as our home markets grew at an annual pace of 20%.
    2.  

    3. Our second largest growth came from what we have defined as Multi-unit-focused states. Markets where our wholesalers get at least 40% of their total house volume from on and off premise chains. These states reached 30% growth in 2012.
    4.  

    5. Overall, out of the 27 states we do business in, 10 of them account for 70% of our total business. Meaning we have incredible upside with the other 17 states.
    6.  

  14. IRI Recap:
  15.  

    1. Our total family of Dogfish Head brands increased 31% in volume, 33% in dollar sales on a minimal increase of 4% in distribution. We sold more beer in existing accounts.
    2.  

    3. Our average price per case was the second highest out of the top 11 craft brands as defined by the BA.
    4.  

    5. We were $12.87 per case higher than the next craft brand.
    6.  

    7. Our brands highlights within the grocery channel were as follows:
    8.  

      1. 60 Minute IPA +25%
      2.  

      3. 90 Minute IPA +40%
      4.  

      5. Seasonals +69%
      6.  

      7. Raison D’Etre +27%
      8.  

      9. Indian Brown Ale +17%

 

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