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Hey {{first_name}} ,

Last week was big. The UK's 50 fastest-growing food and drink brands are out, Tesco announced the latest Accelerator cohort, matcha had arguably its biggest couple of weeks for NPD, and we sat down with James Grundy, co-founder of Small Beer Brew Co., the brewery that brought mid-strength beer back from the history books.

Let’s get into it 👇

📱 From the Feed

What we posted on our socials this week

  • 📈 The Alantra Food and Beverage Fast 50 is out. The top five averaged 190% CAGR, with DIRTEA, Goodrays and Tonic Health leading the pack. Around a third of the entire list operates in health and wellness. 23 new entrants. The UK challenger scene is in good shape.

  • 🔥 The new Tesco Accelerator cohort has landed. 15 brands across health, sustainability and better-for-you, including DIRTEA, SURREAL, Symprove, Free Soul and MOTHER ROOT among others. What stands out: a lot of these brands are already well known in the challenger space. This isn't early-stage exposure, it's a serious retail launchpad.

  • 🍵 Four brands launched matcha NPD in the space of a couple of weeks. Oatly, Bio and Me, PerfectTed and Alpro all dropped new lines. RTDs are leading the charge and the formats are getting more interesting. People called matcha a fad. The innovation is telling a different story.

👀 ICYMI: Brand Moves

Things you might’ve missed this week

Whole Foods Market, Angel 📍

💡 5 Minutes With…

James Grundy, Co-founder of Small Beer Brew Co.

In 2017, James and Felix built the world's first brewery dedicated exclusively to mid-strength beer. They didn't just launch a product. They brought back a category that had been gone since the 1800s.

Check out SMALL BEER: Website - LinkedIn - Instagram

Felix & James 🍻 (LTR)

Tell us about yourself and what SMALL BEER is all about.

“I'm James Grundy, Co-Founder at SMALL BEER. We're an independent brewery in South East London that specialises in crafting mid-strength beers. Launching in 2017 we have pioneered the category with an unwavering belief that great beer and bright mornings can go hand in hand. My business partner Felix and I were both working in the drinks industry prior to launch. Felix had worked for many years in beer and my background was in spirits and wine. We were both holding down busy work-lives, young families and trying to fit in some sort of social life. Great beer had always been a social glue for us, bringing friends, family and colleagues together, but we were quickly realising that the standard 5% 'premium' continental lagers or higher ABV craft offerings were no longer aligning with the lifestyles that we aspired to lead. We wanted both sociability and sessionability but without the sore head (and more fun than drinking at 0%).”

You built the world's first brewery dedicated exclusively to small beer, a long forgotten category. What does it actually take to create a category from scratch, not just a product?

“Building brand is challenging, building net new category is even more so, because it comes with the need to communicate your reason for existence. Although the category is rooted in history and was as common as bread when written about by Shakespeare, Chaucer and Dickens, it was difficult to do well and was lost to the history books by the end of the 1800s. However, we firmly believed that it was exactly what a more modern drinker was looking for. We knew that we certainly were! If we were going to recreate it, it had to taste better than a standard 5% beer. We knew a hurdle for us was going to be people saying "there's less alcohol so surely it won't taste as good", so it was our job to prove them wrong! Personally we wanted to brew our beers classically, no funny business. No cooking off the alcohol, stripping it out, diluting down and no bulking agents. We wanted to responsibly source the very best of homegrown ingredients and brew to strength. Then we had to communicate to prospective drinkers the occasion that it suited so well. It's always amazing to see the lightbulb moment that so many people have when we share our 'why' when talking about mid-strength and SMALL BEER.”

Mid-strength March 💪

The Mid-Strength March happened. When brands that could be considered competitors are literally marching alongside you for the same cause, how do you think about that relationship?

“I think it's only a fantastic thing for the category and for the consumer. All of the data that we've seen suggests that society is not looking to socialise less, nor consume less volume. We are however looking to reduce the subsequent impact that alcohol has on us. Greater choice on supermarket shelves, in independent retailers and throughout pubs, restaurants and bars I see only as a positive for a customer looking to shop the category and socialise in these settings. We're proud to have pioneered the mid-strength movement in the UK and hope to be welcoming more entrants from a multitude of categories over the coming years. I was introduced to a mid-strength coffee not so long back... as a coffee lover, that's a concept that I could certainly get on board with!”

At what point did you feel the market actually start moving toward you, rather than you pushing against it?

“I think the pack mentality of the consumer has gradually changed through the rise of 0%. People are most confident in ordering the drink that aligns with their lifestyle. They know they don't need to struggle through that morning presentation the following day after an evening with colleagues. "Oh you're not drinking, what's up?" was the question asked by many in the past. A bar call for a SMALL BEER now is often viewed as the smart and considered choice. We like to call it the nirvana of hitting and maintaining the two pint buzz, but you've in fact enjoyed a whole evening of SMALL BEER.”

Box of Small Beer 📦

The big players are circling now. Beavertown's Satellite, Heineken putting weight behind mid-strength. When the big dogs start joining the party you pioneered, is that validation or does it make life harder?

“In all honesty I think it's both. We know that big corporate contracts tend to completely exclude smaller independents from bar tops and shelves, reducing the range for the consumer and making it more difficult for brewers and brand owners like ourselves to run a sustainable business. In the same breath, we welcome those who have budgets to help build the category. It's a fine line to tread. We're mindful that we're on the shoulders of giants and these majors' historical brands are such because of work that has been put in over many years. However if fresh thinking is stifled by the inability for smaller businesses like ourselves to compete from a budgets perspective, it feels like everyone loses out. As London's first B Corp Brewery, and the original mid-strength brewers, for those who look to shop the category from a quality, sustainability and innovation perspective (we like to call them Big Thinkers) we hope that they'll always reach for a SMALL BEER. It's a conscious choice that we aim to capture in our company motto: Think Big Drink Small.”

Check out SMALL BEER: Website - LinkedIn - Instagram

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