For 1 qtr at least, red ink turned to black for 2 of top micros. Redhook had oper income of $46,000 and Pyramid made almost $500,000 in 2d qtr, tho both still lost $$ for 6 mos. Redhook volume up 5% in 2d qtr, which ceo Paul Shipman noted was its 12th consecutive qtr of volume growth. Jul shipments up 15% too. Pyramid beer shipments up 3% in 2d qtr.

No progress in talks yesterday and no date set for new ones between Teamsters and AB’s statewide RI distrib McLaughlin & Moran, Providence Jnl reported.  Potential fallout: two state pols vowed to repeal RI’s franchise law.  One of ‘em trashed distrib as “arrogant, union-busting” co running “greedy monopoly,” and said new law will “remove this irresponsible corporate citizen’s bullet-proof vest.”

“Inflammation” may be “even bigger trigger of heart attacks” than cholesterol problems, AP reported.  Why's that matter? Turns out that one way inflammation “can be readily lowered” is, you guessed it, “moderate alcohol intake.”  New findings about inflammation “will change everything we do in heart disease,” one cardiologist told AP.  Stay tuned.

Once again Coors shows willingness to ante up for high-profile US mktg events, as it struck multiyear pact with Miramax Films which includes “co-hosting of premieres and special events" and "product placement and promotional opportunities” in some flicks.  Follows on heels of Coors’ NFL deal, $10-20 mil campaign with new Hispanic agency, and efforts to find a 2d creative shop for some “very surgical smart-bombs” as sr veep mktg Ron Askew told Ad Age.  Will these moves improve sales picture? 

Bad news. That?s 2d-straight increase following declines in 12 of previous 13 yrs. Ten-yr trend still shows 15% drop and % of all deaths that are alc-related stayed same. Note: govt revised figures for alc-related deaths upwards for previous yrs. Details in Aug Alc Issues INSIGHTS.

As AB upping stake in #1 Chinese brewer Tsingtao (which had 11 share of 194-mil-bbl Chinese beer mkt in 2001) sets up interesting battle of top-2 worldwide brewers in soon-to-be #1 beer mkt. SAB is #3 in China through its joint venture CRE Bev (6.4 share).  SAB’s made 27 acquisitions in China in recent yrs, and is “committed to growing our position in China,” SAB spokesman told South African paper Business Day this week.  Some speculation in foreign press that AB may raise current 5 share of Tsingtao to as much as 25%.  Interestingly, AB’s biggest partner in Tsingtao would be Chinese govt, which owns about 40%.

They’re everywhere in beer biz these days, those high-paid McKinsey and Co consultants, or so it seems. McKinsey and Co is certainly in Milwaukee for SABMiller during transition.  Also has done lotsa work for Interbrew.  Connection goes deeper tho.  In '99, McKinsey consultants authored what now appears prophetic paper about  coming globalization of beer biz.  It praised consolidators like… Interbrew and SAB.  Hmm.  Same paper put Miller in category of  “dressed-up for sale.”  Finally, 1 of authors, McKinsey consultant Richard Benson Armer, gave statement in current lawsuit between Interbrew and FEMSA.  Richard said he worked with Interbrew for the last 7 yrs (before joining McKinsey, he worked for SAB), and described himself as "leader of teams charged with assessing Beck's North America business."   

 

Despite selling 2% less beer in 2d qtr, Brazil's Ambev managed to nearly triple earnings to $127 mil. How? Try 10% price hike last year plus strong demand during World Cup. Also gained 1 share point of Brazilian mkt, to 68.8. On other side of globe: brutal price wars and slowing happoshu (low-malt) mkt in Japan means brewers' profits gettin' slammed there. Top-3 brewers all dropped forecasts for '02: #1 Asahi lowered net profit forecast over 20%, and #2 Kirin dropped '02 earning forecast over 10% (so far in '02, 6-mo net profit down 27%). #3 Sapporo chopped annual earnings forecasts by 74%. Ouch.

Brent Willis is new Chief, Mktg, Sales and Distribution officer for Interbrew worldwide.   He’s 42 from US and used to work for K-Mart, Kraft and Coke (including chief mktg officer at K-Mart.)   This is new slot for Interbrew; Paul Cooke, once Labatt USA prexy and recently chief mktg officer (once a McKinsey consultant too), recently left the co.  

Former NBWA chairman and longtime leader of 1 of largest US distribs, Houston Dist Co, Joe Huggins died last week at just 64. Joe was a dynamo with tremendous force of personality and a longtime change agent in beer biz, very active in govt affairs at state and Federal level, but he was slowed in recent yrs by illness. His son Bo is current prexy of HDC.