MC placed ton of emphasis on chains, understandably. Chains are 40% of biz, up 2.5% in 08 for MC, and it expects chains to be over half of biz in 5 yrs or so. A key objective: to "drive Wal-Mart volume." As consumer shifts to Wal-Mart, Wal-Mart is shifting to beer," noted veep Kevin Doyle. Beer is a 110-mil case, $2 bil biz in Wal-Mart and it wants to double that in next few yrs. Yep, that's right. Wal-Mart would like to be over 220 mil cases in 3-4 yrs (7-8% of total US beer biz). No wonder MC has goal of growing revs 27% in Wal-Mart in 2009. Kevin called Wal-Mart, MillerCoors' "single biggest opportunity to win as one in the next few years." He also cited MC's recent win as category captain of largest Midwest regional chain Meijer's. Articulated another audacious goal for MC: gain 1 share point in c-stores in 09. In all channels, MC seeks 250,000 new placements in 09, and 12,000 new points of draft distribution.
MC went from 61% of its volume consolidated in July to "more than 70%" now, said prexy East Tom Cardella. Noted there were 52 transactions in last 6 mos of 08. MC "must and will create a unified distribution system," said Tom, asking distribs to "please be pragmatic and open-minded to having conversations about the options." Noted benefits of mergers in Manchester and Memphis, which gave newly combined distribs shares over 40 in AB strongholds. "We will not win if we are fragmented," said Tom. "We will win if we are one." MC will adopt new simplified standards in May, endorsed by distrib council. Reduced from 86 pages to 21. Finally, MC has new "win as one" sales incentive: distribs get 2 cents/case if they hit vol/net rev target and another 2 cents if MillerCoors hits its EBITA target. That 4 cents/case represents a potential $35 mil to MC distribs.
MillerCoors Chain Biz Up 2.5%; Progress on Consolidation; New Standards; Incentive
Publishing Info
- Newsletter: Beer Marketer's INSIGHTS
- Published: 03/23/2009
- Volume: 40
- Issue #: 6