Guess which leading brewer not mentioned once in PM presentation to analysts in Phoenix last Wednesday? Yep, Miller.  Not one question either, despite all that recent talk about a deal. Then, newly-minted exec veep Bob Mikulay updated Mich/Ill distribs next day on Miller's progress.   Surprisingly, no questions for Bob about a deal either.  One informed source has noted that incoming PM ceo Louis Camilleri  is “very objective realist who has never believed in an easy internal solution for Miller,” which "promotes" that “deal will get done before Miller’s challenges are on Louie’s watch.”   And yet, S&N, SAB, Miller merger ran into roadblocks recently.  Talking about improved biz at annual PM Invitational, Miller prexy John Bowlin told audience of not-quite convinced leading distribs and retailers that Miller is “fixed.”

This time Maine distrib Cumberland and York argued that since Coors’ contract provision which gives it exclusive right to negotiate sale violates Maine franchise law, arbitration not necessary.  Magistrate disagreed.  Recommended US Dist Ct give Coors “stay pending prompt arbitration.”  Remember atty Mike Dady’s advice at NBWA: if contract has arbitration clause, you will arbitrate.

The 3.3-mil-case AB distrib Golden Eagle in Little Rock sold to owner of non-contiguous much smaller Bud distrib Eagle Dist in Texarkana for around $25 mil, including everything.

AB chairman and group veep, Busch papa and son, filed forms proposing sales of 62,700 shares (III) and 65,848 shares (IV) of AB stock, with “estimated proceeds” respectively of $3.04 mil and $3.226 mil.  Meanwhile, Miller prexy also Bowlin for $$$.  John set to sell 17,505 Phil Mor shares for proceeds of $868,545.  Don’t know what these guys paid for any of these shares.  August III still has about 5 mil shares of AB, John Bowlin has about 200,000 shares of PM.

Boston Beer?s oper income dropped $4.7 mil, 29% to $11.4 mil in 2001, including $4.3 mil hit in 4th qtr related to getting rid of hop contracts. That?s lowest oper income since 95. Revs dropped $3.8 mil, 2%, even tho rev per bbl up 4.4%. Volume down about 6%. Stock dropped about 20% to 12 after release, then bounced some. Boston Beer total depletions down 2.5% in 2001, but Sam Adams Boston Lager and Seasonals down 0.4%. Orders on hand suggest core biz up 3% in 1st qtr 2002, with Sam Ad-ams Light only in a few states. Hi-end light beers "largely an uncreated market," ceo Jim Koch said on confer-ence call. Pointed out "25-30%" of the "full calorie-beer market... is at 'better beer' pricing," but "98% of" light beer market "is at domestic pricing." No decision on whether Sam Light will roll out nationally.

Questions concerning whether consumers confused about malternatives and what’s in ‘em keep poppin’ up.  And now they’ll get aired out at Texas Alcohol Bev Control Commission hearing on Mar 19.  Notice went out today to all manufacturers. “We are well aware that any rulemaking may have a potential impact on how people are doing business,” wrote TABC official, but since BATF has done nothing since 1996, “we must go forward.”  Some other regulators from other states expected to attend. Then too, Mike’s Hard Lemonade officially complained to the NAD division of Better Biz Bureau that Smirnoff Ice misleads consumers.  NAD sent it on to FTC and BATF for further review. And there’s an ongoing FTC investigation after neos complained last yr. Lurking in background, possible Congressional hearings on liquor ads, maybe other issues. The fun has just begun.

Coors had well-received 2-hour meeting with Wall St Wednesday, after which several analysts upgraded earnings estimates, if not ratings.  Stock back over $60, up 14% yr-to-date.  Coors said its big Carling deal added to earnings per share from day 1, earned more last yr than Coors had known back in late Dec. Deal adds 40%, 9.3 mil bbls to volume, 50% to revs and 60% to earnings.  Coors 2002 EBITDA should be about $500 mil, $300 mil US and $200 mil UK, sez CFO Tim Wolf.  Coors currently #8 world brewer, said Coors prexy Leo Kiely, and “when 4 or 5 of those guys ahead of us consolidate, we’ll be #4 or # 5” he added, maybe half-jokingly.

 

Coors EBITDA numbers of $300 US and $200 UK were pro forma for 2001, not 2002. No 2002 projections given. And prexy Leo said deal adds 60% to Coors? operating earnings.

Less than 3 mos after Tacoma got Washington state govt to ban most malt liquors, fortified wines and ice beers from a downtown neighborhood, Seattle’s mayor seeks  to do the same for Pioneer Square district, according to Express sources and press reports.  As in Tacoma, Seattle mayor wants state to declare district an “Alcohol Impact Area” to ban the products.  But mayor wants to broaden ban to end all alc bev sales between hours of 6 and 9 AM, and ban lotsa single-serve sales of beer/malt liquor, wrote The Oregonian.

As many now know, the beer wholesaling industry lost one of its bright young lights, when Jeff Clinton, 38, was tragically killed in an auto racing accident last Friday.  Jeff was president and chief operating officer of Grey Eagle, the St Lou AB distrib.   At AB’s natl sales conference this week, AB chairman August Busch III began with a moment of silence for Jeff.  St. Lou Post Dispatch columnist wrote  Jeff “was one of the nicest people you’d ever want to meet. Just a class act.  Warm and generous with his friends, strangers, charities—anyone who needed his help.  Jeff was there and always with a smile.”