Beer inventories turn faster than wine or spirits so supermkt chains can make more money on ‘em even if margin lower per unit, according to IRI exec veep Bump Williams in conference call with Legg Mason Jun 29. He characterized difference between 'em: beer brings “quick nickels” vs wine/spirits “slow dimes.” And yet in chains, wine and spirits are introducing more new products than beer while beer getting decreased merchandising, fewer displays/features and temporary price reductions as they’ve “switched to spirits,” he said. So message ain’t getting thru. Armed with info about faster turns, beer folks gotta tell those chains, “don’t take my shelf space,” sez Bump.

Separately, Diageo and Heineken detailed new joint venture in South Africa called brandhouse, which will have about $500 mil in sales, including beer and spirits, according to the Independent. Brandhouse goes against dominant SABMiller there. Meanwhile, “premium sector” of liquor biz “growing very fast” in SA, brandhouse exec said. Diageo ceo Paul Walsh believes Heineken and Diageo “could enjoy significant synergies” with their “respective ranges” of premium drinks, wrote Independent. JV will be watched “closely” for “clues as to whether Diageo and Heineken plan to forge similarly close links in other markets.”  

AB prexy August Busch IV is one of 200 “business leaders” who support Democratic Presidential candidate John Kerry, according to a list provided by the Kerry campaign yesterday (August the 4th, of course) and published by the Wall Street Journal. No other top beer executives are on the list, but ex-Seagram chairmen Edgar Bronfman (Jr and Sr), Philadelphia Coke bottler Bruce Llewellyn, Brown Forman chairman Owsley Brown, plus Costco’s president and chairman, are on board with Kerry.  

As federal Alc & Tobacco Tax and Trade Bureau (TTB) mulls over CSPI’s Dec 03 petition to require suppliers to include more nutrition info, including alcohol content, calories, etc on alc bev labels, TTB is planning to allow suppliers to include that info on labels and in advertising. Several industry members have apparently requested permission to provide such info. TTB is seeking comment from industry members by next week. Tho providing info will be optional, TTB very specific about what must be included, how data is presented, down to type size and format. Label on product or in ad would have to include: serving size in fluid oz, servings per container, calories, grams of fat, carbs and protein, and ounces of ethanol per serving. And here’s the kicker: label would have to include the statement: “A standard drink contains 0.6 fl. oz of alcohol. A serving of this beverage is [x] standard drink(s).” Sample “Serving Facts” label includes familiar “drink is a drink is a drink” equivalence graphic of 1.5-oz shot of spirits = 5-oz glass of wine = 12-oz mug of beer. Wonder which “industry members” asked TTB if they could provide this info. Perhaps those who typically sell products in larger packages that can more easily accommodate a new label than a 12-oz bottle/can of beer? Planned ruling would precede any final rulemaking TTB might hand down in response to CSPI petition 

That’s title of interesting article in St Lou Post Dispatch last week which dovetailed neatly with some key themes at AB’s brand exchange meetings in Vegas. Lots of talk in Vegas about elevating beer’s image and competition from distilled spirits, especially on-premise. And sure nuff, sr veep Mike Owens talked to Post Dispatch too about answering spirits challenge by “doing more on-premise” and protecting key “beer occasions” like sporting events, after work socializing, picnics etc. “When you see spirits trying to do NASCAR, which is beer’s bread and butter, you know that they’re trying to take our occasions,” said Mike.  

New book by economics prof Douglas Whitman bein’ used by Costco to hammer 3-tier system. Whitman doesn’t like middle tier much, and is especially harsh on franchise laws that protect distribs. He concludes: “The existence of monopoly protection laws represents the victory of special interest legislation. Consumers of alcohol do not benefit, and the benefits to the general public are questionable at best. The only clear beneficiaries are the alcohol wholesalers.” You get the point. Costco quoted book at beginning of its legal response to Wash regulators and distrib assn motions to dismiss Costco case in fed ct. Predictably, Costco blasted their legal arguments, asked judge to keep case alive. “Strange Brew” published by think tank Independent Inst. 

SABMiller is in talks with Ian Molson and Onex Corp “that could lead to a rival hostile bid for Molson Inc,” reported Toronto Globe and Mail. When Molson ceo Dan O’Neill signaled deal might not fly, that “probably encouraged everyone to go back and have another look at the file,” said “a person close to the discussions.” Is Toronto paper simply carrying Ian’s water, just as WSJ appeared to a couple mos back, or could this become a real deal? No comment from SABMiller or Molson at presstime.  

Interesting article in Ad Age today profiles Miller’s group director-mktg services Steve Buerger and how his changed media plan reflects Miller’s strategic positioning as alternative to AB. Basically, new plan “dials up” print, cable, digital efforts and other outlets where AB doesn’t dominate as much. “It means not imitating the buying strategy of a dominant player with bigger budgets,” wrote Ad Age. Since 1st qtr, Miller jumped # of cable stations it advertises on from 10 to 60 and “scaled back its weight in TV sporting events.” Turns out, “a few strategically placed ads” can reach “as many people as saturation during a given game,” according to Steve. 

No details yet, but NJ state Court apparently ruled that Alc Bev Comm director’s letter putting hold on reg that prevented draft-line cleaning “rendered moot” AB’s bid to hold all regs. AB has already filed another request seeking hold on all regs.  

Miller sr vp Doug Brodman sent bulletin to all Miller distribs today: “Because our conversations with Coors have yet to produce an acceptable resolution to disagreements” over the contract amendment, “we are suspending the signing deadline until further notice.” Acknowledged “last thing any of you want is to be caught in the middle of a dispute between two of your suppliers,” and assured: Miller “determined to minimize any distraction caused by this issue.” Repeated Miller’s intention with amendment: “Simply to avoid having a competitor assert unfair control over the long-term fate of our brands.” Miller will continue to “engage” with Coors to resolve disagreement, and will communicate with distribs “as the situation evolves.”