Ouch. Interbrew announced it will take hefty $1.1 bil charge against its 2000 earnings to deal with "consequences" of Brit regulators' decision that it's gotta sell Bass PLC to a single buyer within six months. Recall Interbrew paid $3.3 bil for Bass last yr. CEO Hugo Powell told conference call that trade commission's decision was "unnecessarily inflexible" and that Interbrew will "seek judicial review." He hopes to stretch six-month deadline to a year or two so it can "revamp the assets" and make Bass more attractive to potential buyers. Powell wouldn't answer question of whether co might seek partial divestiture. Despite Bass troubles, a bright spot: Interbrew earnings up 25% outside UK in 2000.

Light beer sales very bright last yr in supers, convenience stores, drug stores and warehouse outlets, according to ACNielsen: $$$ sales up 10.5%, volume up 7.8%, with good gains in every channel. These channels sell about 45% of all beer in US. But in these channels $$ sales of regular beer segment that includes imports and premium/sub-premium domestic brands up just 2.3% and case volume of that segment actually declined 1% even while imports hot, hot, hot. In tiny segments: ale $$$ up 7.4%, but stout/porter down 9.5%, no-alc bevs down 1.1% and malt liquor got whacked, down 9.2%.

Lee Garfinkel, who is widely credited with coming up with Heineken’s current successful campaign, is leaving Lowe Lintas, where he is chairman, ceo and chief creative officer.  He’s “deployed a visual subtlety rare in the category to transform Heineken into a trendy beer,” wrote Ad Age columnist Randall Rothenberg upon his departure. 

Capital Bev Corp, public beer distrib, has revived its dormant deal to buy Brooklyn-based Prospect Bev, which got nixed back in 98 by Stroh.  This time, the 2 distribs need Pabst approval. Capital sells Olde English, Prospect sells Colt 45 in NYC.  Under terms of transaction, Prospect shareholders get 500,000 shares of Capital stock (about 20% of co’s shares) valued at a whopping 50 cents a share or $250,000.  Also get  employment contracts with “various financial considerations.”  Capital stock had peaked at about $8.   This “acquisition will add approximately $20 million in revenue to Capital’s existing $17 million gross revenue,” Capital’s press release said.  

Up another 84,000 bbls, 6.4% in Nov.  That put yr-to-date gain very close to 2 mil bbls, 12.3%.  After several stellar mos, shipments from Mexico eased in Nov; down 5%.  But still up 900,000 bbls, 14% for 11 mos.  Dutch shipments up nearly 600,000 bbls, 14% for 11 mos too. 

More distrib-importer disputes in NY metro area.  Following termination of its approx 200,000 cases of Guinness, Nash Distribs of northern NJ filed suit against Guinness Bass Import Co in US Dist Court.  While Guinness had calculated that it owed Nash $538,000 under terms of its 94 agreement, Nash argues that same contract obligates GBIC to pay Nash $4.2 mil.   Nash also charges Guinness concealed its plans to terminate while distrib invested in brands which “constitutes a breach of its obligation of good faith and fair-dealing.”  Interesting twist: Guinness appointed neighboring Peerless Dist, a large Coors/Corona distrib as GBIC’s Guinness and Smirnoff Ice distrib in Nash territory.  Those are only brands that Peerless sells in Nash territory.  More details in Beer Marketer’s INSIGHTS.

Here's a revealing quote from atty for direct shipping forces in Va case. "We think the case is going to blow some of the cobwebs off the 21st Amendment and reveal its limitations as a source of protectionist legislation." Direct shippers argue 21st Amendment not designed to "foster 3-tier system," as distribs, others insist, but to simply allow states to stay dry "without running afoul of the…Commerce Clause." Heineken Ad Whiz Leaves Lowe Lintas Lee Garfinkel, who is widely credited with coming up with Heineken's current successful campaign, is leaving Lowe Lintas, where he is chairman, ceo and chief creative officer.

Since Foster's bought #3 winemaker Beringer last yr, it's increasingly viewed as attractive takeover target. Global alc bev giants such as Diageo and others eyeing Foster's, according to Business Week Online. Maybe that's what Foster's had in mind all along. CFO said "we spend no time or money on takeover defense." Asking price would start at about $6.7 bil, plus "acquisition premium," he told Biz Week. If buyer interested only in wine biz, Foster's beer brands could go up for grabs. Foster's up 10% in US in 2000, it sez. Total about 10 mil cases. Let's Try This Again Capital Bev Corp, public beer distrib, has revived its dormant deal to buy Brooklyn-based Prospect Bev, which got nixed back in 98 by Stroh. This time, the 2 distribs need Pabst approval. Capital sells Olde English, Prospect sells Colt 45 in NYC. Under terms of transaction, Prospect shareholders get 500,000 shares of Capital stock (about 20% of co's shares) valued at a whopping 50 cents a share or $250,000. Also get employment contracts with "various financial considerations." Capital stock had peaked at about $8. This "acquisition will add approximately $20 million in revenue to Capital's existing $17 million gross revenue," Capital's press release said.