Beer Marketer's Insights
03/06/2001
USA Today Whacks ?Middlemen?
Despite pending win for distribs over OSHA, media drumbeat against 3-tier system continues. USAT editorial yesterday took shot at wine wholesalers as middlemen who ?squeeze shoppers.? ?Real purpose? of franchise laws, claimed USAT, ?is to protect middlemen against new competi-tion.? Scoffed at distribs? argument that laws against direct shipping help stop underage purchase. Said requir-ing buyers to show ID at delivery ?would accomplish the same goal,? as if UPS driver is gonna check proof. Exec from car dealer assn defended services dealers provide but looks like wholesalers have big P R job.
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03/06/2001
Will Today Be V-E Day?
Could be celebratin? Victory over Ergonomics as early as tonight with House on tap to vote whether to kill onerous OSHA work rules. Senate vote of 56-44 yesterday included 6 Dems (5 southern), and all 50 Repubs on side of bizzes against regs. NBWA and lotsa other biz groups busted their backs to get this done. Assuming House concurs?Pres Bush has said he?d sign bill killing regs (Gore would have vetoed it) ?means rollback of 1991 excise tax hike will be front and center at upcoming NBWA/Brewers legis conference.
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03/01/2001
Clarification
In Kansas residency law article in issue #4, US Dist Ct declared just the residency requirement for wholesalers unconstitutional. Residency laws for retailers weren?t challenged, tho Kans retailers reportedly antsy that state ABC may stop enforcing retail residency laws too.
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03/01/2001
AB Goes Hollywood
AB scored three 30-second ad slots for upcoming Academy Awards at going rate of $1.4 mil each, according to USA Today. Big previous sponsors Revlon and Merill Lynch ain't participating this yr and ad mkt tuff, so wholesome Hollywood marketers decided to abandon "image concerns" and let AB run ads? first time any beer co allowed to do so. Last yr, Academy Awards had 46 mil viewers, 60% female.
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03/01/2001
Soda Biz Fizzlin´
While carbonated soft drink biz bubbled thru middle of 90's with 3+% annual gains, beer biz struggled with flattish sales. But in last two years, that relationship has reversed: carbonated soft drink volume lost steam in 99 (+0.5%), while beer biz got 1.6% growth for yr. And in 2000, carbonated soda biz flat (accord-ing to Bev Digest), while beer had another decent year, up 0.9%
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03/01/2001
AB and Barton Gaining Share in Calif
Nov-Dec reportedly ruff in nation's largest mkt, but with data avail-able thru Oct, AB and Barton looked good. AB up 4.5%, 349,000 bbls in Calif thru Oct. Up 1.2 share to 45.5 last 12 mos. Barton rolled to 12%, 166,000-bbl gain. That follows 16%, 238,000-bbl gain in 99. Up to 8.8 share. Miller dropped 8%, 262,000 bbls YTD. Lost 1.2 share last 12 mos, down to 16.8. Coors holding onto 1% gain. Heineken looking for 3rd straight yr of double-digit gains in Calif. Up 13%, 42,500 bbls thru Oct. Sierra Nevada had solid 12.5%, 26,500-bbl gain. Boston Beer flat.
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03/01/2001
Mighty Fine Yr for Modelo Too
Beer volume up 1.8 mil bbls, 6.1% to 31.2 mil bbls. Held on to #8 spot among intl brewers. $$ sales up healthy 9.5% to $2.8 bil. Exports (almost 90% comes to US) up 14.5%, to 7.3 mil bbls worth $672 mil. Modelo oper income at $740 mil, up $111 mil, 17%. Modelo?s Mexican biz up 4.1% while key competitor Femsa down slightly.
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03/01/2001
Heineken Made Hay in 2000; Hot For Bass?
A banner year for Heineken. Net profit up 20% to $560 mil, oper profit jumped 15.3% to $830 mil in 2000. Total worldwide sales up double-digits, too: hit $7.3 bil. In US, Heineken brand up 15%, about 525,000 bbls, and surpassed 4 mil-bbl mark for first time. Amstel Light hot in US too: up 13%. According to analysts, US is about 25% of parent co's oper profit, about $200 mil smackeroos. That's considerbly more than Coors. Heineken lookin' at Bass deal, too. CEO Karel Vurnsteen told press con-ference "we are interested" in purchasing Bass brands and "maybe" whole shebang from Interbrew, which was ordered to divest Bass unit by Brit regs last Dec.
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Tho beer volume up 1.6% YTD thru 2/11 in supermkts, sales soft just prior to Super Bowl. That reversed 5-yr pattern, according to IRI data. In fact, supermkt beer volume dipped 2.4% Jan 15-28 this yr. Compare that to 4% gains in 99 and 2000 during Super Bowl run-up, and avg 2.7% gains 96-2000. Even biggest Super Bowl advertiser AB lost biz in run-up this yr, -1.7%. AB had scored solid gains each of 5 prior yrs; got 8% pop last yr and in 99. Similarly, Coors supermkt biz off slightly this yr following pre-Super Bowl gains 96-2000. Miller down 6% this yr following tiny drop last yr, small gains 97-99. Even Corona off slightly; it had big gains 96-2000. Gainers: Heineken up 4.5%; import total up 5%. With most majors down, silver lining for AB: it still gained share those 2 weeks.
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02/22/2001
Heineken Gets Bigger; AB Connection
Heineken just pumped up presence in German beer mkt with purchase of 49.9% stake in Paulaner's parent co, Bayerische BrauHolding AG. Purchase will give Heineken half-stake in about 4 mil bbls in Germany and much-improved distribution there. Will export Paulaner Weiss worldwide. Also got stake in same Chilean brewer, CCU, that AB just bought 17% of. Strange bedfellows.
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