1812 Brewing Company Eyes Opportunities in Alcohol-Free Beverages Markets

Rhea-AI Summary

1812 Brewing Company (KEGS) is strategically exploring the alcohol-free beverage market, focusing on craft sodas and ready-to-drink teas in addition to its core beer business. The global craft soda market is projected to grow from $641.24 million in 2021 to $768.08 million by 2027. Simultaneously, the ready-to-drink tea and coffee market is set to increase from $86.8 billion in 2021 to $117.6 billion by 2028. The company is also considering nutraceuticals, leveraging the potential health benefits of Australian Jelly Bush Honey. This diversification could significantly expand its market reach.

Positive

• Exploration of the alcohol-free beverage market could diversify revenue streams.
• Growing craft soda market offers expansion possibilities with a projected increase of 19.8% by 2027.
• The ready-to-drink tea and coffee segment is expected to grow from $86.8 billion to $117.6 billion by 2028, indicating demand for healthier options.
• Potential utilization of Australian Jelly Bush Honey in nutraceutical products reflects innovative product development.

Negative

• None.

Craft Sodas, Ready-to- Drink Teas and the Health and Wellness Markets Offer Broad Growth Opportunities

Watertown, NY, Oct. 25, 2022 (GLOBE NEWSWIRE) -- 1812 Brewing Company (OTC Pink: KEGS) (the "Company" or "KEGS") is making a strategic decision to explore alcohol-free beverages market, including but not limited to craft sodas, teas and the fast-growing nutraceutical and wellness market.  Along-side aggressively growing its core beer business, the Company could leverage its current beer manufacturing and distribution infrastructure to address these potential alcohol-free markets with its own unique and novel range of flavors and potential wellness formulations.

Industry Summaries

The global Craft Soda market size was valued at $641.24 million in 2021 and is expected to expand $768.08 million by 2027.  Craft sodas are defined as being manufactured in smaller batches with more natural ingredients.  Major players in the Craft Soda market report include Reed’s, Inc., The Original Craft Soda Company, Wild Poppy Company, Crooked Beverage Co., and Jones Soda Co.  1812 Brewing Company does have a history producing root beer, so entry into this marketplace isn’t outside the Company’s immediate capabilities.

The Ready-To-Drink (“RTD”) Tea & Coffee industry is an alternative for carbonated drinks and is primarily considered a healthier drink than sodas.  The RTD Tea & Coffee industry generated revenues of $86.8 billion in 2021 and is anticipated to generate $ 117.6 billion by 2028.  Driven by consumers that are increasingly more conscious towards healthy drinks and diet due to the rise in diseases such as obesity and diabetes, ready to drink tea and coffee is safer to consume with proven health benefits that are expected to drive the growth of RTD Tea & Coffee market in coming years.  

Finally, the global immune health supplements or “Nutraceutical” market is projected to grow from $20.18 billion in 2021 to $31.50 billion in 2028 at a cumulative average growth rate of 6.6%.   Even before COVID-19 hit the United States, consumers already were taking a more holistic approach to health and wellness, scanning store shelves and searching online for clean labels and functional beverages, powders, and supplements to keep them best suited to fight disease and now to fight the next “pandemic.”   

“In particular and as it relates to the nutraceutical market,” stated Chairman & CEO Tom Scozzafava, “based on our market research we are intrigued by certain rare natural extracts demonstrating health benefits and the potential associated with the medicinal-grade Australian Jelly Bush Honey.  Australian Jelly Bush Honey is relatively nascent in its use in America, but it is regarded as the one of nature’s most precious gifts. Recent research is showing that compounds found in Manuka honey stimulates the production of immune response proteins in the body that may facilitate enhanced healing and recovery.  These proteins, called cytokines, are the chemical messengers expressed by your immune cells to organize immune responses.

Antiviral properties, anti-inflammatory and antioxidants are found in Jelly Bush/Manuka Honeys.  Mr. Scozzafava continued, “these honeys and their potential application in a nutraceutical beverage as its delivery mechanism is potentially exciting to us.”

According to the Cleveland Clinic, the honey has been traditionally used to heal wounds, soothe sore throats, prevent tooth decay and prevent ulcers.  According to the site the “antibacterial effects of manuka honey [a similar but less potent honey from New Zealand] are a lot higher than other honey counterparts … about 100 times higher than other traditional honey.”  In summary, this honey is said to: 

• Treat Wounds
• Aid in Oral Health
• Help with Sore Throats
• Help Prevent & Treat Gastric Ulcers
• Treat Acne

“This is at an early stage for the Company,” Mr. Scozzafava stated, “but immune boosting beverages for the health-conscience consumer is both an immense new market as well as a diversification for the brand portfolio.”

About 1812 Brewing Company (“KEGS or the “Company”):

KEGS is an operator of and investor in companies in the craft beer industry.   The Company seeks to build a nation-wide network of craft breweries to develop and foster respective brand growth at the local, regional, and national level.  KEGS looks to build a network wherein certain economies of scale can be shared across it such as production, distribution footprint expansion, inter-member contract brewing, new product development, sharing of best brewery practices and scale logistics and transportation.  The network is to be built through investment by 1812 Brewing Company while maintaining the members’ respective local and regional uniqueness, brand autonomy and direct involvement with its consumers.  The Company seeks to be an “incubator” of growth for its holdings in the industry.  

The Company’s current holding, 1812 Brewing Co., produces award-winning beers such as War of 1812 Amber Ale (“1812 Amber Ale”), 1812 Light, Hazy Oasis Pale Ale, Thousand Islands IPA, Malicious Intent XX IPA, Route 11 Lager, Railroad Red Ale, Helles Bells Pilsner, St. Stephens Stout, Third Rail Porter, Featherhammer Maibock.

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Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.

Contact: contact@1812ale.com

FAQ

What is 1812 Brewing Company's strategy for growth?

1812 Brewing Company (KEGS) plans to explore the alcohol-free beverage market, including craft sodas and ready-to-drink teas, to diversify its offerings.

What markets is KEGS targeting for new product development?

KEGS is targeting the craft soda, ready-to-drink tea, and nutraceutical markets.

What are the growth projections for the craft soda market?

The craft soda market is projected to grow from $641.24 million in 2021 to $768.08 million by 2027.

How much is the ready-to-drink tea and coffee market expected to generate by 2028?

The ready-to-drink tea and coffee market is anticipated to generate $117.6 billion by 2028.

What potential benefits does KEGS see in using Australian Jelly Bush Honey?

KEGS sees potential health benefits in using Australian Jelly Bush Honey, which may enhance immune responses and offer antioxidant properties.