BMI Archives Entry
2015 Update CD-ROM Now Available
We just wrapped up our annual beer stats compilation 2015 Beer Industry Update. You name it, Update’s got it: industry trends, brewer/importer numbers, segments, brands, region/state data, retail data and much, much more in detailed tables, text and graphs. You get insightful analysis from execs with decades of experience tracking the US beer biz. The CD-ROM version is available for immediate delivery. Print version to follow. Click here for details. Click here to order.
Yuengling hired Tyler Simpson to “newly created role” of director of mktg, reporting to chief oper officer Dave Casinelli. Tyler came from AB, where he most recently was director of mktg on hot Mich Ultra brand as well as Bud Select. He’d only been with AB about 2 yrs, previously with Wrigley. This hire part of push by Yuengling to beef up its sales/mktg infrastructure.
Month-to-month trends a bit choppy, but running 12-mo volume gain for spirits in control states in 2.2 - 2.6% range for last 5 mos. That followed period in much of 2014 when running 12-mo gain had dipped below 2%. In Apr, spirits volume up 2.9% and 12-mo trend was +2.3%. What’s more, spirits volume up in each of 17 control states and Md’s Montgomery County for 12 mos thru Apr, with gains ranging from 0.9% in Vt to +3.9% in NC/Oh, +4.6% in Wyo.
Beer Prices Flat in April
The skid stopped at two months but still no gain to boast about. Consumer price index for beer was even in Apr vs Apr 2014 after declines of 0.1% in both Feb and Mar. That still lagged CPI for All Items (+0.1%) but was ahead of CPI for all food items which dipped 0.2%. Spirits prices were up 1% for 3d straight mo in Apr while CPI for wine slowed from 0.8% gain in Feb & Mar to 0.5% increase in Apr vs yr ago. Beer CPI is flat YTD while spirits and wine prices increased 0.9% and 0.5% respectively.
Predictably, ex-MC veep David Colletti and co-defendants in alleged $7+ mil fraud scheme pled not guilty in US Dist Ct in Chi. Recall US atty filed charges against Colletti and 7 co-defendants, MC has separate suit seeking $13.3 mil in state ct and Colletti sued MC seeking pension benefits. “Now that all three cases are active and pending, we are anxious to get them resolved with both MillerCoors and the government,” David’s atty told Law360.
A lawsuit was filed May 12 in Calif District Court on behalf of nearly 70 Anheuser Busch distributors that have lost rights to Monster brands. Suit claims in deal to get Monster brands, Coca-Cola interfered with 20-yr contracts AB distribs had with Monster and misappropriated trade secrets to its own Coke distribs taking over those brands. At jury trial, AB distribs seek “no less than the fair market value” for distribution rights to MNST brands, which they estimate to be worth “between 6 and 7 times each Plaintiff’s annual gross profits generated from Monster products.” Suit seeks costs and attorney’s fees from KO as well. “Without the efforts of the Plaintiffs, Monster would not have enjoyed the immense growth that it has in the industry and the corresponding increase in the value of its company,” to approx $10 bil, suit contends.
After Monster deal with Coca-Cola was announced last Aug, it “raised regulatory concerns” and was on hold for regulatory approval, yet Coca-Cola “continued its efforts to cause termination of the Agreements,” with AB distribs, suit alleges. “In particular,” KO “required Monster to circulate drafts of distribution agreements to the CCC Distributors.” Also complains that Coca-Cola distribs began to distribute Monster “in certain territories bound by one or more of Plaintiffs’ agreements with Monster,” even tho the AB distrib “still retained the exclusive right” in that area. Plaintiffs sent a cease and desist letter on Christmas Eve and suit said so far Coca-Cola “has not responded.” While AB distribs still had exclusive rights until termination date of Apr 5, “several CCC Distributors continued to distribute Monster products to Plaintiff’s exclusive customers, including Walmart.”
After 12-day trial in Jackson, Miss, AB distrib Mitchell Dist won jury verdict in suit brought by retail chain Major Mart. Recall, fed ct judge failed to toss rare antitrust charges vs Mitchell last fall. After delays earlier this yr, trial kicked off May 1, ended earlier this week and jury just decided in Mitchell’s favor yesterday. This has been going on for almost 5 yrs. Charges stemmed from 2010 dispute over pricing matter (involving $1200) that deteriorated relationship between Mitchell and Major Mart. Each side claimed the other retaliated. Major Mart said Mitchell used “monopoly power” (it had 70+ share) to hurt its biz by eliminating support, reducing deliveries, aiding competing stores with coupons/discounts it didn’t get, trying to force Major Mart to raise prices, providing old beer and more. Mitchell countered that it was Major Mart who retaliated by reducing shelf space, signs and displays and lowering prices on competing brands to hurt AB brands, which worked. Mitchell insisted there was no monopoly power, no pricing power, no exclusion, no injury to Major Mart, that Mitchell acted “within the realm of legitimate competition.” Looks like jury agreed.
“I’m glad it’s over,” Mitchell prexy Adam Mitchell told INSIGHTS. “I hope everyone that read the allegations understands from the verdict that we didn’t do anything wrong. Our goal is to grow our business by fostering positive relationships with all our retailers.”
Wal-Mart is largest beer account, betting big on beer and over 25 share of all grocery sales. So what happens at Wal-Mart matters for beer. The retail giant had just “slim gain” in US, noted Wall St Jnl. Same store sales up 1.1%, excluding fuel. That was below analyst estimates of 1.5%. Factor in stronger $$ and effect on intl mkts, and Wal-Mart’s overall sales fell. Profits dropped 7% in fiscal 1st qtr. So stock down 4% this AM, biggest drop on Dow. What about cheap gas prices and improving economy? “We know that many of our US consumers are using their tax refunds and the extra money from lower gas prices to pay down debt or put it into savings,” said Wal-Mart ceo Doug McMillon. “They’re also using these funds for everyday expenses.”
OK, these are outliers, but gotta note there’s a little more than usual crazy pricing popping up out there. Someone sent picture from PA of Old Milwaukee cases advertised for $11.56, with a $6 rebate. Final price: $5.56 or $1.39 a sixer. Meanwhile, we keep hearing about Shock Top draft pricing around $60 in many different mkts, but $44 half bbls in DC about takes cake so far. Got more prices to report? Send to
OK, these are outliers, but gotta note there’s a little more than usual crazy pricing popping up out there. Someone sent picture from PA of Old Milwaukee cases advertised for $11.56, with a $6 rebate. Final price: $5.56 or $1.39 a sixer. Meanwhile, we keep hearing about Shock Top draft pricing around $60 in many different mkts, but $44 half bbls in DC about takes cake so far. Got more prices to report? Send to

