For 2d time this year, MC selling off real estate, raising some extra dough. City of Golden news release said it has deal to buy 7.1 acres and 4-story 160K sq ft office building from MillerCoors for $12.25 mil.  Building will house city admin offices, Golden Police Dept, Golden History museum and “community cultural entities,” reported Business Den. Coors employees currently occupy 1/3 of building “and likely would stay until early next year,” city official said.  The other time MC sold off real estate: in early Jan, MC sold off much larger Eden brewey (1365 acres of land) for just $2.8 mil.  So $15 mil between the 2.  Why is Golden building worth so much more than massive parcel of land that housed Eden brewery?  Location, location, location.  

This fight just ratcheted up several notches as MC filed its motion for preliminary injunction, including 45-pg brief in support, a survey that shows confusion, conducted by top mktg expert, Yoram (Jerry) Wind, and his lengthy report (he gets paid $1,000 an hour) plus numerous other declarations.  Some think MC marketing/posturing through the courtrooms, but this avalanche of paper should put that to rest.  

MC serious about stopping what it views as a “sustained false advertising attack” by AB, which has “already had dramatic impact on consumer opinions” of Miller Lite and Coors Light and indeed caused “irreparable harm,” MillerCoors argues.  Ads imply MC beers contain corn syrup or high fructose corn syrup when they don’t; corn syrup used as fermentation aid and eliminated in brewing process.   Citing social media postings, MC sez “the campaign caused confusion, health concerns, and disgust toward Miller Lite and Coors Light beers.”  But can MC meet stringent standards needed to get preliminary injunction? 

Survey may well be key (as experts quoted in Law 360 suggested the other day). Dr. Wind’s survey of 2034 consumers includes test group of 1016 who saw AB’s “Mountain Folk” ad where medieval guys on mountain tops proclaim ingredients of respective beers.  In control group, 1018 saw same ad with prominent disclaimer: “While Miller Lite and Coors Light are brewed using corn syrup, there is NO corn syrup in the Miller Lite and Coors Light you drink.” 

61% of Test Group Who Saw Bud Light “Mountain Folk” Ad Thought Corn Syrup in the Beers  And guess what?  “Dr. Wind’s survey found that 61% of the test group came away convinced there is corn syrup present in the Miller Lite and Coors Light that they drink,” wrote MC in brief.   Compared to control group “a net of 35% of consumers who saw the ‘Mountain Folk’ ad were misled.”  (Huh? Weirdly, 26% in control group still thought there was corn syrup in Lite and Coors Light even after viewing disclaimer.)   Dr. Wind calls that “both economically and statistically significant.”  Significantly more respondents who saw test ad vs control also “believed that the commercial implied that corn syrup and HFCS are the same.”  So Dr. Wind concludes “a significant number of consumers are deceived by the campaign.”  

170 Consumer Complaints; Social Media “Negative” and “Confused”   Before Bud Light campaign launched, MC “received virtually no consumer communications related to corn syrup.”  But after Super Bowl, it got 170 consumer communications regarding corn syrup and 18% of those said they would “likely cease or decrease their purchases of Miller Lite or Coors Light.”  That’s 31 consumers (98 million watched Super Bowl).  Is that enuf to hang your “irreparable harm” hat on?   Dr. Wind also analyzed social media activity, finding Campaign “triggered substantial amount of online activity” and “consumers expressed negative sentiment toward corn syrup in connection with beer or beer brewing more than twice as often as positive sentiment.”  He also found that over a quarter (28.6%) “of consumer posts indicated that the author was confused regarding the presence of corn syrup in the final beer products.”  After social media analysis, Dr. Wind “concluded…Campaign created confusion, health concerns and disgust” towards Miller Lite and Coors Light. 

MC “Already Suffering Real Reputational Harm” MC spends last 15 pages of its brief making “argument” that it passes thresholds required to grant preliminary injunction.  MC 1) “likely to succeed on the merits” because AB ads “make false and deceptive implied claims”; 2) “AB’s own statements show that AB intended the Campaign to mislead consumers in exactly the ways it has”; 3) AB’s campaign is “causing MillerCoors irreparable injury to its reputation and credibility with consumers”; 4) MC “lacks a remedy at law adequate to abate the injury.”  MC sez: “The evidence conclusively shows that MillerCoors is already suffering real reputational harm and business injury as a result of the campaign” and MC “can also show that the Campaign makes materially false claims that confuse and mislead consumers about the contents of Miller Lite and Coors Light.”  So MC “is highly likely to prevail on its Lanham Act claim,” it concludes.  How will AB respond? With whom will judge agree? 

Craft Brew Alliance hired ex-New Belgium ceo Christine Perich, as chief financial and strategy officer starting next week, Apr 1, 2019, co announced. Recall, CBA’s previous cfo Joe Vanderstelt resigned in Jul 2018 after 3.5 yrs. Opening gave CBA an oppy to hire for a “broader” role beyond “just a financial specialist,” ceo Andy Thomas told INSIGHTS.  Christine spent 16 yrs with New Belgium, including as cfo, coo, and eventually prexy/ceo. She spent recent yrs mostly as consultant in broader beverage space, including as board member to HealthAde Kombucha and Laws Whiskey House, and working for AB’s ZX Ventures brand, Owl’s Brew, among other projects. This fits well with CBA’s newest initiative via pH Experiment to study consumer trends and launch innovative new products beyond traditional beer brands, both Christine and Andy acknowledged. “Lifting my head outside of beer…I have a different perspective now too,” that should help to “meld nicely into this role,” Christine told INSIGHTS.  (This article appeared in different form in Craft Brew News.)   

HUSA just named Josephine (Fein) Bertrams as its new Chief Corporate Affairs Officer. She comes to HUSA from Heineken hq in Holland, where she “led a slew of our communications,” HUSA director Bjorn Trowery noted.  Recall, previous chief corporate affairs officer Tara Rush left at end of Jan.  Both HUSA and Constellation named new top govt affairs execs this week (Constellation named Matt Stanton).  And MC also named new govt affairs veep Will Kinzel earlier this year.  Between Corngate and all these new sr govt/corporate affairs execs, this year’s Beer Inst meeting (in St Lou) should be interesting.

Sun Liquor, which opened bar in Seattle in 2006, then a distillery nearby in 2011, made offer in compromise to TTB earlier this mo for $1.3 mil.  It “failed to timely file and pay excise taxes” on spirits sold to airline carriers that were “ineligible for export credit” from Jul 2012 thru Dec 2017, TTB charged.  Full liability was over $1.6 mil, but TTB accepted the $1.3 mil offer, “to be paid in installments.”  TTB’s collected $115K so far.  Sun put its popular Liquor Lounge up for sale last yr to focus on its growing wholesale biz, per Puget Sound Biz Jnl.

AB reformulated Bud Light Lemon Tea after wholesaler concerns voiced at SAMCOM (about whether flavor too tea forward).  Now it’s reportedly more lemon forward.  And AB ready to spend big behind it.  Bud Light Lemon Tea launch will get $17 mil in media support, source sez.  That’s a little more than Corona Refresca.  Refresca front-line priced considerably higher than other FMBs, as is Crook and Marker.  So far, that pricing is an impediment for Crook and Marker as well as lack of name recognition.  All 3 of those new FMB product launches are betting on new and enhanced flavors as what’s next for this hot segment.   

Yet #1 hard seltzer is betting the other way.  Today, White Claw announced White Claw Pure, which tastes like… seltzer.  White Claw Pure “answers the unmet consumer need for a convenient and refreshing alternative to vodka and soda,” said Mike’s, “tapping into the insight that 55 percent of vodka consumption is mixed with soda, tonic or water.”  It got enthusiastic reception at Mike’s distrib meeting last Sep; hits shelves April 1.

Domestic brewers’ taxpaid shipments dipped 47K bbls, 0.4% in Feb, estimates Beer Inst economist Michael Uhrich.  That followed 209K-bbl, 1.7% increase in Jan.  So, taxpaids up 163K bbls, 0.7% for 2 mos,  Recall, scans showed flattish volume Jan-Feb.

Domestic brewers’ taxpaid shipments dipped 47K bbls, 0.4% in Feb, estimates Beer Inst economist Michael Uhrich.  That followed 209K-bbl, 1.7% increase in Jan.  So, taxpaids up 163K bbls, 0.7% for 2 mos,  Recall, scans showed flattish volume Jan-Feb.

As Opening Day arrives for vast majority of Major League Baseball tomorrow, Budweiser will be honoring Jackie Robinson (born a century ago) with a 60-second TV ad directed by acclaimed Spike Lee and narrated by Jackie’s daughter Sharon. Ad highlights a 3-min film titled “Impact” directed by Lee that was “inspired by Robinson’s quote that ‘a life is not important except in the impact it has on other lives.’”  Bud “will also sell limited-edition Jackie Robinson ‘42’ aluminum bottles” during season and donate 42 cents per bottle to the Jackie Robinson Foundation, which gives education scholarships to minority youth.

Coors Light plans on keeping Seattle Mariners fans happy with an ice cold Coors Light when they win chance to view games from the Coors Light Silver Seats, per MC Behind the Beer Blog. Not only do “Silver Seats” recline, have a center field view, most importantly, they come with equipped with “exclusive Coldr Side Tables alongside each recliner,” that have “special cup holders, which actually make beverages colder than when they were originally served.” To get into those seats, legal drinking age fans in Wash, Oreg and Ida can enter a sweepstakes to win them at no cost.  Winners will also score a Coors Light branded YETI cooler and a $100 Mariners gift card.  Coors Light is planning on taking Silver Seats on the road “at baseball stadiums across the country, with SunTrust Park in Atlanta on the docket for the coming months,” per blog.

We are also seeing first promotional deals materialize at start of season tying brands with players after MLB relaxed rules barring active players from endorsing alcohol brands. Philadelphia Phillies ace pitcher Aaron Nola will be a Yuengling Brewery brand ambassador, per local NBC affiliate. As part of deal, Nola “will make personal appearances at special events to promote the beer,” and Yuengling will also be running a promo for fans to win their own Yuengling vending machine for home, as well as other “media sweepstakes and giveaways.”  

Elsewhere, Boulevard Brewing has deal with Kansas City Royals 2d baseman Whitt Merrifield to tout its beers as part of its “Unfiltered Whitt” campaign, which is set to begin in May, as sister pub Craft Brew News reported yesterday… Arizona Diamondback fans will score best price on beer this season with a 14-oz going for $4, per Arizona Central report. Diamondbacks have “the lowest number on the Fan Cost Index” for 11 years running. 

Could it really happen in spirits too? That #1 (Diageo) and #2 (Pernod Ricard) global players get together. “Speculation has swirled since February,” notes Barron’s today, and tho cos either denied deal or refused to comment, “where there’s smoke there’s often fire.” The attraction: “Together, it’s a massive assortment of high-profile spirits brands and assets.” Is it doable?  Diageo mkt cap is $97 bil, while Pernod at $41.6 bil.  So that would be far less pricey than ABI’s acquisition of SABMiller.  What about antitrust concerns?  Recall, to make beer deal happen, SABMiller had to sell its stake in MC.  Similarly, speculates Barron’s, Diageo would have to sell its stake in Moet Hennessy, already 2/3 owned by giant conglomerate LVMH.