In case you missed WSJ feature "Is Food the Next Tobacco?" parallels to similar concerns about alc bevs goin? down tobacco road could not have been more explicit. Look: 1) health experts claim obesity rates at "epidemic" levels; 2) activists want higher taxes on junk food, label changes and legislation; 3) activists smack industry for marketing to kids; 4) attys pondering class action/liability suits. Food folks? response rings bells too. Execs cite vast differences between food and tobacco, say individuals responsible for their own eating and (non-) exercise habits. Industry is funding education/public service campaigns to advocate healthy (moderate) eating habits. Even came up with term to dub anti?s as "food police." Finally, WSJ quotes CSPI (of course) on one side, and Rick Berman, who also represents alc bev retailers, on the other.

It’s only 1 mo in 1 mkt, but Tex was biggest mkt for Smirnoff Ice last yr where it sold 215,000 bbls.  In Apr 2002, down 1050 bbls,  9%.  But Smirnoff Ice still up 11,000 bbls, 24% yr-to-date there.  Got 1 share and shipped 59,000 bbls.  Meanwhile Bacardi Silver  shipped 30,000 bbls and got 0.5 share while SKYY Blue shipped 24,000 bbls and got 0.4 share.  All these are virtually identical to share in supers nationwide.  Interestingly, SKYY Blue at almost 10,000 bbls in Apr, just behind Smirnoff, while Bacardi dropped from 17,000 in Mar to 5600 in Apr.  Other fascinating factoids:  AB total shipments up 103,000 bbls, 14% in Apr in Tex and 260,000 bbls, 9% there yr-to-date, led by 15% Bud Light growth.

The numbers say what former Miller prexy John Murphy, who just passed away, did. When he took over helm of Miller in 71, it did 5.2 million bbls. It sold 6.9 mil bbls in 73, 9.07 in 74, 12.86 in 75, 18.4 in 76, and 40.3 in 1981. He sure had distribs scrambling to keep up pace; building warehouses, buying trucks, hiring new people, investing and reinvesting. He was driving force behind 4 key words: Miller Time and Miller Lite. Miller was never same after John's departure to join Philip Morris leadership in 1984. He was dynamo who led transformation of industry into lighter beers.

FEMSA’s "theory -- which the district court adopted lock, stock and barrel -- was that there simply ‘must’ be a new agreement [between LUSA & Beck's] even though none could be identified,” wrote Interbrew and Labatt USA atty in vigorously-argued 12,500-word appeal. This 1st unsealed document in case provides revealing window into 1 side’s thinking. “Rather than requiring plaintiff to offer evidence showing that LUSA had entered or would enter into a new agreement with an affiliate,” Interbrew attys wrote that judge said: “'I am persuaded there has to be an agreement’ in order to add the Beck’s brands."  So Interbrew's attys concluded: "Entering an injunction without any evidence, based simply on judicial intuition and absent any reason or logic is wrong.”  US Appeals Court hearing won't be until at least early August.  Separately, Interbrew execs said “not necessary” to integrate Beck’s, that if it doesn’t prevail in lawsuit, it could live without cost savings.  More details in Beer Marketer’s INSIGHTS.

Domestic taxpaid beer shipments dropped 100,000 bbls, 0.6%, estimates Beer Inst?s Matt Hein, ending 6-mo streak of shipment gains. May?s shipment softness was no surprise considering strong Apr shipments and recent reports of big brewers' weak retail trends last mo. But in face of another wave of malternative rollouts (Citrona, Sauza and the Captain), this slight drop is sign that industry sluggish. For 5 mos, domestic taxpaids still up 1.1 mil bbls, 1.5%.

Over the years, a disproportionate number of most unusual distribution situations occurred in Sunshine State. Frequently they?ve involved AB. The latest: a lengthy airing of divorce and business details about Tom Pepin, owner of Pepin Dist, AB dist in Tampa appeared in St. Petersburg Times in early Jun. Tom pulled in $5 mil from biz last yr, according to his tax return, Times reported. Biz grosses $120 mil (between 8-9 mil cases) and has 250 employees. Tom and siblings paid their father $12.5 mil for biz back in 86, according to article. Tom now owns 90% of biz, the rest in a trust for his daughters. His ex-wife argues she?s entitled to part of profits from biz in spite of pre-nup and post-nup agreements to contrary. Meanwhile, Tom spending $20 mil to build new 241,000 sq ft hq and warehouse.

All Others, that is brewers and importers below top 4, did even better in group of states where data not reported individually.  Grabbed another 2 share in 2001, continuing strong ascent. (Non-reporting states include corridor of  East coast states where imports do especially well: Conn, NY, NJ, Pennsy, Del, Md, Va, NC and DC, plus Ky, Alas and exports.  About 1 share of gain comes from including Molson in All Others in 2001, instead of Miller.)  Since 96, All Others have gained 7 share to 23.4 while total mkt stayed flat.  So All Others got 1/3 of their US total in 10 non-reporting states and exports that were 50.3 mil bbls in 2001, about 1/4 of volume.   Gained 1 mil bbls, 9.5% in 2001 in 10 non-reporting states, DC and exports, while total mkt dipped slightly. 

After yrs of declines in this group, AB up just slightly in 01.  It gained 0.3 share to 39.4.  AB gained almost no share in this group of states over last 5 yrs (at 39.0 in 96).  Meanwhile, Miller off 640,000 bbls, 7.5% in 2001, but a good chunk of that was Molson brands it sold in 2000 (especially in NY) but not in 2001.  Amounted to almost 1/3 of Miller’s natl drop.  Miller at 15.7 share in this group, down 3 in last 5 yrs.  Coors passed Miller by dropping less in region.  Off 2% after yrs of growth, but still shipped 7.9 mil bbls, almost 40% of its volume in this group.  And Pabst dropped 540,000 bbls, 16% in these states and exports; fell to under 6 share. 

With 300,000-bbl, 16% gain in Apr, imports up about 600,000 bbls, 9% yr-to-date, according to govt numbers compiled by Beer Inst. But not every leading import country sharing spoils. German shipments down 6% and Canadian shipments down 15% for 4 mos (as Smirnoff Ice shifted production to US). Even Dutch beers were off slightly in Apr, tho still up 6% yr-to-date. Leading charge yet again, Mexican imports up over 580,000 bbls, 20.7% for 4 mos with strong growth in Apr even tho that?s after prices went up in much of country. One would assume that has to pull back a bit at some point, but ya never know.

BATF still investigating malternatives, what they?re really made of and how they should be labeled, BATF official said at recent conference of state liquor administrators (NCSLA). Denied that in 96 it formally "ruled" there was no limit on how much alcohol could come from spirits "flavor" as long as final alc content less than 6%. (But that?s how it turned out in practice the way BATF cleared malternative labels.) BATF doesn?t want to "rashly interrupt business," he said, and will decide by end of July whether to make more changes. Looks like just one state?Tennessee?taking extreme view that if any alcohol comes from spirits flavors, it ain?t a malt beverage and should be regulated as spirit product.

Heineken prices went up in NY metro on Jun 1st. Matched Corona pricing. Heineken prices go up in Jersey and Pennsy on Jul 29.