bmiHeader2

Subscribers-Archives Access

LIKE US ON FACEBOOK

Public Archives Search

Keyword

STOCKS

Market quotes are powered by TradingView.com

Beer Marketer's INSIGHTS

Order Beer Marketer's INSIGHTS

Beer Marketer's INSIGHTS, our flagship newsletter, is published 23X a year. For the last 38 years, it has frequently been the first and often only publication to report the most important beer industry facts, trends, and insights. Each issue features four info-packed pages. Inside, you'll find the latest news and numbers about the US beer business, with a special focus on exclusive articles and analysis. Readers of Beer Marketer's INSIGHTS get the info necessary to stay abreast of the latest industry events, and the understanding of those events. Here's just a small sampling of what you'll find inside:

Beer Marketer's INSIGHTS is written by the most experienced and knowledgeable staff serving the industry. More execs keep up-to-date by reading Beer Marketer's INSIGHTS than any other beer industry publication.

Join thousands of beer industry executives, ad agency representatives, government regulators, bankers, analysts, attorneys, and others who need to know as much as possible about the beer industry. These execs benefit from INSIGHTS' authoritative reporting and analysis. Put that advantage to work for you. A one year-subscription is priced at $750 dollars (add $25 outside of US). As with all our newsletters, we offer a money-back guarantee: if Beer Marketer's INSIGHTS fails to meet your expectations, we will gladly refund the unused portion of your subscription.

Only early Jan, but 2002 malternative mkt already shaping up to be action-packed, more crowded and hugely advertised. In face of competitive onslaught, GBIC (owned by Diageo) is upping ante. It expects to sell 100 mil cases in 2002, GBIC prexy John Replogle told INSIGHTS. If so, GBIC would double for 2d straight yr, including lots more Smirnoff Ice, other new ready-to-drink brands and its beer biz. Smirnoff Ice reportedly getting big boost in ad budget and personnel. It will be advertised in 35 top local mkts on Super Bowl. Meanwhile, Diageo will launch at least 2 new ready-to-drink brands in 02, say distribs; they expect Captain Morgan announcement shortly. AB expects to intro Bacardi Silver next mo; plans $50 mil of media (about $20 mil paid for by distribs at $2 per case). AB expects to sell 800,000 bbls, and most distribs think it can sell more. AB in tricky position; wants to play in segment, but doesn’t want to hurt its beer volume. What’s more, its Silver margin may be less than Bud and Bud Light as it splits profits with Bacardi. Silver is not 1 of AB’s top 2 high-end priorities; those would be Michelob Light and…

Publishing Info

  • Year 2002
  • Volume 33
  • Issue # 1
As group, specialty brewers eked out slight 1-2% gain again in 2001, INSIGHTS estimates. So segment stayed at approx 3 share of US beer biz for 6th straight yr. Specialty segment averaged just 2.4% annual growth since 96, following 6 straight yrs of double-digit growth from 1 mil bbls in 90 to 5.5 mil bbls in 96. Among top-10 specialty players, only Boston Beer took appreciable hit: down about 60,000 bbls, 5%. That put Boston back to its 99 shipments level and 83,000 bbls, 7% below its peak in 96. #2 Sierra Nevada failed to grow at a double-digit pace for 1st time in memory. Still, Sierra gained 42,000 bbls, 8.4%, passed the half-mil-bbls milestone and picked up half share of specialty volume. Since 96, Sierra doubled volume while specialty segment up just 12%. Miller?s Leinekugel up slightly for 4th time in last 5 yrs. Spoetzl (Shiner), owned by Gambrinus, up 4%. Hot New Belgium squeezed past Redhook for #5 slot with smokin? 64,000-bbl, 39% increase. That was only change in top-10 ranking last yr. New Belgium more than quadrupled volume last 5 yrs and built share of specialty segment from 1 to 3.7. Redhook up 5% in 2001, following…

Publishing Info

  • Year 2002
  • Volume 33
  • Issue # 3
Ain’t just AB makin’ lotsa moolah in alc bev biz these days. Look at 2 of its leading US/intl competitors, which are growin’ profits at faster rate. Heineken oper income jumped $177 mil, 22% to $978 in 2001 on revs of $8 bil. Attributed much of that increase to acquisitions. Its oper margin jumped almost 1 full point to 12.3. That’s about same as Miller’s. Meanwhile, Diageo oper income (on its premium drinks biz only) also had huge jump in fiscal 1st half: up $191 mil, 16% to $1.38 bil on revs of $6.4 bil. That’s a 21.7% oper margin. (Compare to AB’s 26.8% on domestic beer.) Diageo total North American revs up 19% and oper income up 20% to $360 mil. That’s "as a result of the increased proportion of ready-to-drink" volume and "driven by the continued rollout of Smirnoff Ice" as well as spirits brand price increases and growth in "global priority brands." Diageo also inked deal to sell off Malibu rum brand to Allied Domecq for $800 mil; it should get a couple bil $$ for Burger King sometime this yr too. So Diageo about as profitable in drinks biz as AB, growing faster and amassing cash.…

Publishing Info

  • Year 2002
  • Volume 33
  • Issue # 4
Lotsa talk about global consolidation by key execs from several of the world’s largest brewers at Credit Suisse/First Boston global bev conference. Interbrew, Heineken, South African Breweries (SAB), Carlsberg and Ambev--#2-#6 intl brewers which sold over 300 mil bbls between ‘em in 2001—plus a little co called Diageo all presented. (AB did not.) Interbrew CEO Hugo Powell reiterated position that Interbrew now focused on "organic growth," but said it will do more deals (Interbrew made 33 acquisitions since 91) if they "create value." SAB CEO Graham Mackay pointed out that tho everyone assumes Miller will sell, "I don’t know why Miller has to be sold." Mackay thinks global consolidation will occur "in fits and starts," in part because buyers "can’t drive profitability with prices high." Heineken CFO David Hazelwood pointed out Heineken sees "acquisition opportunities" in Latin America, Africa, Asia, Russia and "some selected" mature mkts (i.e. Germany), tho didn’t focus on deals in Heineken strategy going forward. Bluntest: Jim Grover, director of strategy for Diageo, said it’s "unlikely" that Diageo will make a "straight acquisition of a major beer company" anytime soon. Indeed, he said, may be "easier" to expand wine holdings than beer. Why? Diageo has internal criteria…

Publishing Info

  • Year 2002
  • Volume 33
  • Issue # 6
Ranks of distribs keep thinning. In more and more markets it’s getting down to 2 distribs. Calif going Miller/Coors in a hurry. Over 1/2 dozen distrib deals there in just last 6 mos. So far in 2002, new Miller/Coors distribs in all these cities: Van Nuys, San Jose, Redwood City, Santa Maria and Visalia. That followed Oakland and Long Beach/Anaheim late last yr (when Coors sold its Anaheim branch to Reyes family, that seemed to open floodgate). Here are some of players: Allied Bevs (owned by Kevin Williams) bought 2-mil-case Coors/import distrib Sierra; it also sold Miller in Santa Maria to new Central Coast (partnership between Coors distrib Larrabee Bros and ex-Sierra owner Frank Clark). South Bay Bevs (owned by Bob Fransechini Jr) bought 3.2 mil-case Miller/ Coors distrib in San Jose. That was 4th new owner there in 4 yrs. Bob also sold Coors West in Redwood City to Maita Dist to form new Miller/Coors distrib there. And Valley Wide of Fresno bought 1-mil-case Coors distrib C&S in Visalia; it already has Miller there. But 1 state well ahead of Calif on consolidation curve: the whole state of Fla is now consolidated Miller/Coors. Other recent Miller/Coors deals also inked…

Publishing Info

  • Year 2002
  • Volume 33
  • Issue # 7
Annual oppty for distribs to rate suppliers on 9 "key competencies," Tamarron Consulting’s survey of 500 wholesalers, once again has good news/bad news. Most suppliers are getting better in distribs’ eyes: 8 of 11 suppliers in survey since 2000 "scored their highest average scores in 2002," Tamarron wrote. But when asked for an overall letter grade measuring supplier performance and supplier-distrib relationship, wholesalers not so positive. On performance, "the majority of suppliers were graded between B and C with an average of C+." Only 1 supplier (AB) scored a B+ in performance. Wholesalers scored supplier relationship a little higher: "all suppliers received at least a C, with an average of B-." Again, only AB scored better than B. Recall Tamarron asks distribs to rate suppliers on 9 competencies using 1-5 scale. Most important competencies to distribs in order: mktg mgmt, portfolio mgmt, retail execution, leadership/planning, communications, operations. Since 2000, portfolio mgmt and retail execution gained importance, leadership and communication dipped. When asked for general rating, nearly 90% of distribs said relationships with suppliers met or exceeded expectations, but when distribs took closer look "average competency score totaled 2.86 – indicating supplier performance was short of having met expectations." What’s more,…

Publishing Info

  • Year 2002
  • Volume 33
  • Issue # 15