"There seem to be signs" malternatives "are peaking," AB CFO Randy Baker said in conference call Jul 24. AB sees "nothing there that supports further significant growth," Randy added. YTD thru Jul 14, malternatives had 3.1 share of supermarket volume, according to IRI, up 0.8. Several Wall St analysts echo Randy. "We continue to expect malternatives to peak in the 3Q and forecast a 3.5% share for this segment, basically a niche segment similar in size to the craft or microbrewers," Morgan Stanley’s Bill Pecoriello wrote recently. (In 2001, micros had 3 share, malternatives had 2.5 share.) "We believe that the FAB category is going through a period of accelerated brand rationalization (akin to that of the wine cooler, ice beer, craftbrew, etc) as a result of recent disappointing FAB introductions such as Captain Morgan Gold and Sauza Diablo. We believe the lack of traction by these products have made wholesalers and retailers hesitant to stock up their shelves with new brands," Caroline Levy at UBS Warburg wrote. Biggest disappointment so far: Captain Morgan Gold, which Diageo supported heavily during 2d-qtr launch. The brand just did not sell. In fact, Diageo already pulling some excess inventory from distribs. At presstime, Diageo announced Smirnoff Black Ice intro in UK "to lure men" to RTDs, wrote Dow Jones. Black Ice coming to US in 4^th qtr too, we hear.