Canadian Beer Sales (TAP)
Total beer sales in Canada decreased 5.8% in April, decelerating from the 3.8% decrease in March. Domestic beer sales decreased 4.3% in April, decelerating from the 2.6% decrease in March. Imported beer sales decreased 10.9%, improving slightly from the 12.3% decrease in March. Canada represents ~10% of Molson Coors sales. The U.S. business, where it will not have enough inventory, is ~70% of sales.
Greenwashing (OTLY)
A New York federal judge tossed out a class action lawsuit against Oatly. The plaintiffs said Oatly was engaged in “greenwashing,” the practice of making the business more eco-friendly than it actually is. The lawsuit stems from allegations outlined in a short report in 2021. The FTC is currently updated its “Green Guides” which dictates the types of environmental marketing in which companies can engage. At least Oatly avoids the ignominy of a successful greenwashing lawsuit. The short report still landed enough punches.
Drought in corn country (TSN)
34% of the corn crop is currently in drought and 28% of the soybean crop. The Midwest is seeing a deepening drought after the third driest May in over three decades. This week is forecast to be one of the driest first full weeks of June in more than 30 years.
The corn crop conditions are still better than last year. Last week the USDA-NASS reported 73% of the corn crop is rated good to excellent compared to 69% last year. The Plains region has seen a recovery in drought conditions. Corn prices have been under pressure due to predictions for a record crop. Lower input costs have been a tailwind for the protein producers, who have quickly turned their attention from feed costs to demand.
