Coronado Brewing reports strong Q1

Coronado Brewing Company (CBC), a leading San Diego-based craft brewery known for its award-winning West Coast ales, is pleased to announce its impressive performance in the first quarter of 2023. Surpassing a strong +8% growth in the first quarter of 2022, the company saw depletions increase +19.3% in the first quarter of 2023. Shipments grew +16.2% as did the company’s net revenue, increasing +20.6%. Flagship brands Weekend Vibes IPA and Salty Crew Blonde led the way with strong growth, with Q1 depletions coming in at +13.4% and 57.2%, respectively.

Following the company’s recent move into Southern California wholesaler, Stone Distributing Co. (SDC), CBC’s Q1 sales grew +20.6% in its home state. It has now been six months since CBC moved most of its SoCal business into SDC.

“The transition into SDC couldn’t have gone any smoother, and the excitement between CBC and SDC is in full force,” says CBC CCO Clinton Smith. “It’s imperative that we continue to win in our home market of Southern California, and we believe that we have the right partners in place to keep this strong momentum going for the long term.”

CBC reports Southern California depletions coming in at +27.1% with every major market in the region showing double-digit growth. 

According to Nielsen scan data (Craft Brand Families SoCal Food) through the first 13 weeks of 2023, CBC achieved +15.5% growth in case sales, cementing the company as the 12th largest craft brand family in the region. This achievement is marked by double-digit growth in both dollar sales and case sales, with CBC owning the third-best growth trends for Q1 in Southern California Food.

Weekend Vibes IPA and Salty Crew Blonde have emerged as formidable contenders in the craft-beer scene, with both brands earning spots in the top 30 craft brands in SoCal Food at number 20 and number 27, respectively. Weekend Vibes IPA six-packs have seen a 19% increase in sales, making it the fourth best-selling IPA six-pack or four-pack SKU and the eighth overall best-selling IPA SKU, encompassing all styles, sizes, pack sizes and containers. Salty Crew Blonde has soared as the third best-selling Blonde/Golden Ale brand, with an impressive growth rate of 35.1%. Both the six-packs and 12-packs of the so-called “boat beer” have secured spots in the top 10 SKUs for dollar sales in the Blonde/Golden Ale category.

Surpassing pre-pandemic growth levels, CBC’s on-premise depletions increased +35.0% in the first quarter of the year, led by Salty Crew (+54.7%) and Weekend Vibes (+28.6%) draft offerings. In the same period, draft shipments increased +23.1% over Q1 2022.

“We are working closely with our distributor partners to apply the incredible momentum in the off-premise to succeed in the on-premise lead by our top two brands,” says CBC Vice President of Sales David Schreiber. “It’s great to see the on-premise coming back and, while we have more work ahead of us, we have a clear and aligned direction on our brand priorities.”

New Brands Driving Growth in 2023

Innovation remains a core focus for CBC, as demonstrated by the success of Rocky Point Hazy IPA, the first installment in the company’s new Surf Break Series, a rotating hazy IPA offering that kicked off in January, replacing CBC’s previous seasonal program. This offering has outsold the previous Q1 seasonal beer, Haze on the Horizon, by an impressive 102%. The introduction of new brands in 2023, including Nado Japanese Lager, Rocky Point Hazy IPA and The Mariner Double IPA (a collaboration with San Diego-based Societe Brewing), accounted for over 7% of total depletions in Q1.

Replacing Rocky Point as Coronado’s newest Surf Break Series seasonal release, Cloudbreak Hazy IPA will be available in four-packs of 16-ounce cans, May through August. The beer is named after Fiji’s heaviest left-hand reef break known to be one of the most challenging and awe-inspiring barrels in the world. The beer showcases the complex flavors and aromas of a unique blend of hop varieties. It’s brewed with a combination of Idaho 7 and Citra Incognito, and dry-hopped with Amarillo, El Dorado and Motueka hops for an explosion of juicy tropical-fruit flavors. Pouring a hazy, golden hue, expect aromatic notes of apricot, papaya, melon and lime.

With a strong start to the year, CBC is poised for continued success. The company remains committed to delivering exceptional craft brews, and anticipates further growth in the coming quarters with new innovations and core offerings.