Recall 1999 jury verdict in NY found gun makers guilty of “negligent marketing” because some guns are sold illegally. That raised fear of similar suits against alc bev suppliers, since illegal/underage sales occur. But top NY court rejected theory in this case that gun makers had special duty to assure guns didn’t get in wrong hands. Also rejected theory that gun makers shared respon-sibility if illegal sale couldn’t be traced. Yet judge didn’t kill notion. In fact, suggested gun makers might be liable if they knew dealers “routinely” sold guns illegally, according to NY Times’ reading of decision.

Important antitrust case just got reversed by US Court of Ap-peals. Higher court blocked merger between #2 and #3 baby food companies and deal now abandoned. To-gether they would have had about 33 share (coincidentally, Miller-Coors would be 32 share). They argued merger was necessity to compete with #1 Gerber which has 65 share. US Dist Court had allowed merger. But FTC pushed hard on appeal that such a merger reduced competition because 3 players down to 2. US Court of Appeals said the cos failed to prove efficiencies could only happen thru merger. Outgoing FTC chairman said this was 1 of most important cases in his tenure. Told NY Times

Data from DISCUS shows liquor shipments up in 41 of 50 states in 2000. Some good gains in states where beer biz hasn

Media coverage for Miller following its natl sales conference this yr accurately reflected improved distrib mood despite soft sales. Ad Age (ain

Ex-Coors/Schlitz Fla distrib Greg Margerum told jury there are lotsa legit reasons for repackag-ing beer: slow sales, goods damaged in transit and/or in warehouse, etc. Distribs buy repackaging materials all the time. Also: court ordered Maris to move trucks/trailers with Bud signage outta sight. Had been on ware-house lot in full view since 97 termination. Greg continues Tues.

First Maris witness in effort to prove AB had plan to terminate Maris: former secy in AB field sales. She had told Rudy she worked on

…and an apology read by John Stroh 3rd to the descendents of the In-dian warrior Crazy Horse settled this long running suit (almost 10 yrs) over the mkting of a malt liquor brand using his name. Lawsuit outlasted Stroh Brewing Co by 2 yrs.

Ain’t getting’ much easier for top Seattle specialty brewers Redhook and Pyramid. Red-hook reported solid 7% volume growth in 1st qtr. That was its 7th straight gain. But Redhook oper income loss deepened to $752K. Pyramid’s beer shipments dipped 3% and oper loss more than doubled to $828K. Neither has made $$$ since 96. The two top-10 specialty players lost almost $1.50 a case between them in 1st qtr.

In Ariz, AB volume up 94,000 bbls, 4% in 2000 and share jumped 1.6 to over 60 for 1st time. Meanwhile, Miller down 73,000 bbls, 10% and Coors volume down 3.5%. Miller lost almost 2 share and Coors down 0.5 share in state. Together they have 28 share. Total Ariz shipments up 1% in 2000, but down 53,000 bbls, 2.5% for 6 mos. Miller down 14% for 6 mos and Coors down 6%. Recall that in Phoenix metro, which is majority of volume in 4.3-mil-bbl state, Miller and Coors distribs scheduled to merge in early Jun.

In courtroom, you can feel heat as 2 hotshot legal pros face off. Maris has Willie Gary, who won $250 mil verdict vs Disney, was featured on 60 Minutes, just named as 1 of top plaintiff lawyers by Forbes, etc. AB