Beer Marketer's Insights
Miller really cranked up its media spending in 3d qtr, according to data from CMR, which tracks spending in 10 media. Spent $67.2 mil on major brands, up 130%, and spent slightly more than AB did on its major brands for qtr. AB jumped spending 50% in 3d qtr, doubling support for Bud Light, nearly doubling support for Michelob family. Coors was only big supplier that didn
Mixed Miller Messages: Makin
Mixed Miller Messages: Makin
The biggest got bigger and major importers continued to build their bizzes in 2002. BMI volume estimates -- only AB has reported a figure so far -- of major suppliers
I’ve got a new wish this year. Based on recent reading, I wish each of you would have the special gene of a Sardinian (not sardine). What’s so special about that? Well, Sardinia, with 1.6 million people, has 5 of the 40 oldest people in the world, and twice the world rate of reaching 100. On top of it, those 100-yr-olds look to be in excellent shape. Tho I surely can’t trace any ancestor to Sardinia, as the lucky guy I’ve always said that I am, I’ve got a good shot at that 100 goal, hopefully in good shape. Hey, I’m already what a lot of people mistakenly think of as old, almost 79 and my wife Irene is ??? years old--- none of your business. We’re both in great shape, have many friends, 2 wonderful sons and daughters-in law, and marvelous grandchildren. I still spend a lot of time at the office every day, like other older guys do, hang out and offer a little advice, usually unneeded or unheeded. Irene still manages circulation and other aspects of this little co that Benj owns. But I also have fun another way: I write and send to many folks in many countries an almost weekly e-mail Jerry’s Digest filled with lotsa political and colorful info that I find, like the Sardinian bit, in my wide reading. So as an older, lucky, healthy guy I continue to enjoy life, even if I don’t have the pleasure of being the ultimate producer of Beer Marketer’s INSIGHTS as in days of yore. Benj and his super, experienced long-time staff do it all, don’t need me. Yet I’m still part of this great beer biz with so many wonderful people. And I want to wish, as I’ve done each of the previous 32 years, all of you a marvelous Holiday Season and a very peaceful year, in which bin Laden gets his due and Hussein sez "I cave." But if we have to straighten him out we will. Add to that wish that you all get to be at least my age, have something akin to a Sardinian gene and live even longer with good health in an era of peace, thankful every day you’re in the good old U.S.A. Stay well.
Best Wishes, Jerry
PA Lawsuit on Hold
Yuengling withdrew termination of Northeastern (reported in Nov 4 INSIGHTS) and there are settlement talks. Note too: Yuengling sez distrib had signed "Secondary Distribution Agreement" in Sep 99 that characterizes Yuengling as "primary or original supplier of its products in the entire" state. And under Pennsy law, in
When docs’ org screams, media listens. Latest salvo in ongoing neo-attacks on alc bev ads: American Medical Assn asked networks and cable stations to either: 1) only run beer/wine ads after 10 pm, or 2) limit ads to shows where underage audience is less than 15% of viewers. Also asked stations to nix any ads that use "mascots, celebrities or sports figures." In effect, AMA just slightly modified its long-standing call for full ban. But got lotsa ink, as it tied request to as-yet unpublished review of studies that suggests heavy drinking by youth damages their brains. And so press ran another round of supporting comments from neos on one side, industry execs on other, who noted (again) that advertisers already have effective guidelines, and that ads don’t cause kids to drink. Another front in this battle: Nationally known Harvard "binge drinking" researcher Henry Wechsler called on colleges/NCAA to "end their relationships with the alcohol industry," in op-ed article in USA Today. He even trashed industry efforts to educate students about responsible drinking, because they "legitimize the role of the industry as an alcohol educator." Obviously, some folks don’t think industry can or should be "part of the solution." While latest round of media attention and neo attacks has whiff of "same old, same old," gotta keep in mind polls show lotsa Americans still disapprove of even moderate drinking, and many support higher taxes, ad bans and the like. Net-net: these issues ain't goin' away, industry’s public/govt affairs efforts remain a priority.
Direct Shippers Go Into 2003 With Momentum
As 2002 ends, direct shipping battles continue, but direct shippers clearly grabbed momentum from distribs this yr. All but one court challenge on appeal or sent back to lower court for clarification. Cases line up this way: courts have upheld (so far) direct shipping bans in Ind, Mich and Wash. Courts have shot down (for now) bans in NY, Tex, Fla, Va and NC. Most recent move: US Dist Ct in NY ruled that proper "remedy" to NY law, which prohibits out-of-state vintners from shipping direct but allows in-state vintners to do so, is to open door to allow everyone to ship direct. But he put enforcement on hold pending NY
Recent comments by supplier execs, distribs, and consultants suggest an important shift, at least in public stance, from brewer dominance to more-equal sharing of power and investment, especially in shared-house distribs. Miller "realizes that to earn a preferred status in our distributors we have to do more in terms of services and products," sr veep sales Doug Brodman said at Beer INSIGHTS Seminar. Doug
Here’s another view of why AB increasing its focus on hi-end: in 3 regions where hi-end now has over 20 share (Pacific, New England, and Non-reporting states -- mostly mid-Atlantic down to NC plus Ky, Ill, Alas -- and exports), AB lost volume and share over last 10 yrs thru 2001 while hi-end racked up huge gains. Total industry volume in those 3 regions at 95.1 mil bbls in 2001, and about 46% of biz. Had been 97.1 mil bbls and 49.6% of beer biz in 91. AB shipped 39 mil bbls in those 3 regions for a 41 share in 01. That’s down 2.5 mil bbls and 1.6 share from 10 yrs ago. AB dropped 1.2 mil bbls, 9% in Pac region over last 10 yrs and dropped 3.4 share to 43.9. In New Eng, AB volume down 213,000 bbls, 5% since 91; its share dropped 3.7 to 51.0. And in non-reporting states, AB dropped 1 mil bbls; share dipped from 39.2 to 38.5. So in almost half of mkt, AB biz has actually declined over last 10 yrs. And in those same regions, All Others (brewers and importers below top 4) gained 10 mil bbls and 11 share to 23 since 91.
You know what that means about rest of country: AB kicked butt. In all other regions in south, midwest and mountain, AB gained a total of 16.8 mil bbls, and 10 share to 55 over last 10 yrs. Gained 5 mil bbls and 14 share to 54 in West South (mostly Tex) and gained 4.4 mil bbls, 6 share to 61 in Southeast, including Fla where hi-end also did extraordinarily well, and 2.8 mil bbls and 15 share to 56.5 in West North Central.