Beer Marketer's Insights
02/22/2001
More Good News About Moderate Drinking
Ongoing Harvard-based study of 22,000 male doctors found big, big reductions in heart disease risk among those who consumed 1 drink per day. Depending on genetic makeup, moderate drinkers had 40% to almost 90% lower risk than non-drinkers. Another key finding: ?it is the alcohol in alcoholic beverages that is responsible for the reduction in heart disease, not other ingredients,? according to the lead researcher.
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02/22/2001
Top 3 Gained in Ga
Another good yr for AB in Georgia. Up 90,000 bbls, 2.8% in 2000, following 6% gains in 98 and 99. Gained over 450,000 bbls last 3 yrs there, built share from 54.1 to 57.3. Miller eked out 0.2% gain, but share dipped 0.3 to 20. Coors up about 5% for 2d straight yr; tho still just 6.1 share, passed Pabst for #3 spot. Pabst/Pearl whacked: down 58,000 bbls, 15%. Big importers did well: Gambrinus, Heineken, Guinness each up double-digits; Labatt up 9%. Total shipments in Ga, 9th biggest state mkt in US, up 106,000 bbls, 1.9%. Took big hit in Dec tho: down 58,000 bbls, 14%.
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02/22/2001
Ex-Pabst Master Distrib Loses Suit vs S&P
Barry Kanner was master distrib for S&P/Pabst brands in 6 southeast states 86-98. Had helped build Pabst?s volume there from 361,000 bbls in 88 to 950,000 bbls in 92. Slipped to 577,000 bbls in 97. (Barry was paid 10 cents/case.) Barry had oral, then written agreement with ex-Pabst CEO Lutz Issleib that if S&P failed to comply, Barry would get $3 mil. In 98, after Lutz left, successors trimmed Barry?s territory to Fla-only. Barry sued, claiming they had breached contract. But US Dist Ct just ruled for S&P. Said it was Barry who breached contract by selling soft drink and a coupla tiny-volume specialty beer brands for 3 1/2 yrs. Tho income from those brands less than 1/3 of 1% of total income of Barry?s co, enuf to breach contract which called for Barry?s ?full-time commitment? to Pabst brands.
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?I am going to resist the Christmas-tree effect of tax policy,? Pres Bush said in his 1st press conference yesterday. Added: ?I will resist the temptation by folks to pile on their pet projects onto our tax cut.? Among those in line with ornaments in hand: beer, wine and spirits lob-byists who are all seeking a rollback of the 1991 excise tax hikes. Question is whether Congress will be as resis-tant to add-ons as Bush sez he?ll be. Another possibility: a 2d tax bill to accommodate corporate interests after income tax issue resolved. Re alc bev taxes: will be interesting to watch whether beer, wine and liquor interests work together or not, given equivalence issues and past acrimony. And whither the small brewers? tax break, which is now $11 per bbl? Stay tuned.
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02/22/2001
No Dec Slump for Imports
Unlike domestic shipments, imports kept rollin? in Dec 2000. Import shipments up 160,000 bbls, 12.8%. For the yr, up 2.2 mil bbls, 12.4%. That?s the biggest import bbls gain on record. Imports also passed 20-mil-bbl mark (including import no-alcs) and grabbed 10 share of US beer biz for 1st time. Note too, for 1st time since 1990, Dutch shipments (+14.8%) had better % gain than Mexican shipments (+13.7%). Mexican volume gain (915,000 bbls) still much bigger than Dutch gain (643,000 bbls) tho. Lots more detail in next BMI.
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02/20/2001
Another ?Body Blow? for 21st Amendment?
So suggests alc bev atty Charlie Smarr as US Dist Ct in Kansas ruled that state?s residency requirements?gotta live there 10 yrs to be a liquor/wine distrib, 1 yr for beer distrib, different time periods for different retail licenses?are unconstitutional, economic protectionism and not saved by 21st Amendment. Why not? Because law does not promote temperance, court ruled. Decision not a big sur-prise, since residency laws ?have been suspect for quite some time,? Charlie points out. Kansas hasn?t decided whether it will appeal.
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All Others (suppliers below the top-4) including Genesee passed 29 share in Vt in 2000! Up another 2.4 share last yr. Imports have approx 17 share; Genny 2.9; specialty the rest. Meanwhile, top domestic brewers? 2000 results in Vt and nearby Maine nothing to rave about. AB up 3% in Me for 3rd straight yr in 2000 but off 1% in Vt for 3rd drop in last 4 yrs. Miller down 4% in Me, 7% in Vt. That?s 6th straight yr Miller slipped in Vt. Coors regained volume it lost in Me in 99 with 3% 1800-bbl gain last yr but down slightly in Vt. Pabst up 200 bbls, only top-4 brewer to gain in Vt. That?s scary.
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02/20/2001
Barton Beers Had a Helluva Yr:
In 2000, Barton sold 34.5 mil cases of Corona, up 11%; 4.1 mil cases of Modelo, up 21%; 2.7 mil cases of Pacifico (!) up 60% and 1.9 mil cases of Corona Light, up 23%. Even St. Pauli Girl up 14% to 2.4 mil cases in 2000. Barton?s main objective over next 5 yrs: grow 12% a yr.
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02/20/2001
A Blast at Miller Gen Draft Ads
It?s only 1 man?s opinion, but that man, Bob Garfield, has been Ad Age?s ad critic for over a decade, widely-read in ad biz. In unusually harsh rebuke, he called new Miller Gen Draft ads a ?drastic leap to the cultural bottom.? Said too Miller ?making every wrong move? on Lite over past 7 yrs and ?squandering the once-promising? Genuine Draft. Called recent Gen Draft ads ?a desperate attempt to regain traction somewhere?anywhere.? Biggest flaw in latest ad approach, according to Garfield: ?It says not one sin-gle thing to commend Miller Genuine Draft.?
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02/20/2001
Miller/Coors in Cincinnati
Another major metro area just went Miller/Coors. Cinci Miller distrib H.Dennert Dist (owned by former NBWA chairman Jay Morgeson and Ron Plattner) bought 1.4-mil-case Bennett Bev Coors distrib. That makes it well over 4.5 mil cases. Jay and Ron also own standalone Miller distrib in Phoenix. Meanwhile, continuing another trend, Bennett?s Gambrinus brands going to AB distrib Heidelberg.
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