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Lynn M. Walding, Administrator


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 e - NEWS

February 27, 2004


1. College Square Hy-Vee Offers "Scaled Up" Liquor Store

2. Trade Deal May Help Distillers

3. Diageo Launches Latest Flavored Malt Beverages (FMB) - Twisted V

4. HPNOTIQ Offers the Perfect Complement to Today's Stylish Weddings

5. State Considers Easing Revocation

6. Anheuser-Busch Unveils New Alcohol Awareness Campaign



More than 1,000 varieties of wine fill the cherry wood shelves at Hy-Vee Wine and Spirits. The store will feature the largest selection of liquor in the Cedar Valley.

RICK CHASE / Courier Staff Photographer





1. College Square Hy-Vee Offers "Scaled Up" Liquor Store

By Charles Emerick, Waterloo/Cedar Falls Courier

February 20, 2004

CEDAR FALLS --- Thousands of varieties of wine, spirits and beer will soon fill the shelves and coolers of a former sporting goods store.

Hy-Vee Wine and Spirits will open late next week in the former Scheel's All Sports building on University Avenue. The tentative opening date is Feb. 27.

The 6,626-square-foot store in College Square will be managed by P.J. Holbach, and it will boast the largest selection of liquor in the area, according to Cedar Falls Hy-Vee store director Wade Chalstrom.

"We haven't found anything nearby that is bigger," Chalstrom said. "We should have the largest variety in the Cedar Valley."

The West Des Moines-based, employee-owned corporation began building separate liquor stores near its grocery locations about four years ago. Hy-Vee Regal in Waverly is similar to the Wine and Spirits store.

Wine and Spirits will carry 1,356 varieties of wine including many high-end brands. Also available will be 842 different spirits and 326 varieties of domestic, import and specialty beers. A 22-by-38-foot walk-in beer cooler also is located inside.

Cherrywood displays have been erected for the numerous bottles of wine. The wine section also has a wood-looking parquet floor to "enhance the look," Chalstrom said.

"It is a lot different than a regular store display case. The Wine and Spirit stores are scaled up and look a lot nicer than a basic white tile floor with a display case," he added.

The liquor store also will sell soda, ice, tobacco products and other accessories. Store hours are 10 a.m. to 8 p.m. Sunday, 8 a.m. to 10 p.m. Monday through Wednesday and 8 a.m. to 11 p.m. Thursday through Saturday.

While Wine and Spirits nears completion another Hy-Vee project is just beginning down the road.

Construction recently began on Hy-Vee Gas located directly in front of the supermarket. Gas tanks are being placed in the ground this week, and framework for the building will start next week, Chalstrom said.

Chalstrom has been attempting for many years to get a Hy-Vee Gas in front of his building where Citgo once stood.

"We've lost some gas stations in Cedar Falls during the last couple months," he said. "And with all the traffic along University and the lack of gas stations, you have to go a mile or two just to get to the closest one. We think it will do very well."

Hy-Vee opened a similar 12-pump self-service gas station/convenience store in September near its Crossroads Center location in Waterloo.


2. Trade Deal May Help Distillers

By David Goetz -The Courier-Journal

February 20, 2004


Australia would lift 5% duty on U.S. spirits 

 LOUISVILLE, KY -- A free-trade agreement worked out with Australia this month could help U.S. whiskey brands such as Jim Beam, Jack Daniel's and Wild Turkey raise profits Down Under.

The trade deal, which needs approval by the legislative bodies in both countries, would lift the 5 percent duty on distilled spirits shipped from the United States to Australia, a large and growing market for American whiskey.


Last we knew:

Australia is a major overseas market for American-made whiskeys and bourbons like Jack Daniel's and Jim Beam.

The latest:

A new trade agreement with Australia will eliminate a 5 percent import duty on U.S. whiskey headed Down Under, if it wins approval in both countries, and reserve the terms bourbon and Tennessee whiskey for American-made products.

Why it's news:

It would make Kentucky and Tennessee products more competitive.

For more info:


U.S. distillers would get a second bonus from the agreement — exclusive use of the terms bourbon and Tennessee whiskey.

Nobody outside the United States drinks more bourbon and straight whiskey than the Aussies, who like to down it in flavored, ready-to-drink cocktails as well as by the bottle.

In dollar terms, Australia is the fourth-largest export market for all categories of U.S. spirits, according to the U.S. Trade Commission, running up a tab of nearly $60 million last year, a 7 percent increase. Bourbon and Tennessee whiskey accounted for about 83 percent of those exports.

So U.S. distillers stand to pick up some $3 million or more a year to improve their marketing, make their pricing more competitive or refresh the bottom line.

"At the margin a reduction in tariffs or duties or taxes is always helpful for your competitive positioning in the market," said Max Shapira, president of Heaven Hill Distilleries, of Bardstown, Ky. The company markets its Evan Williams and Elijah Craig brands in Australia and sells bourbon in bulk there. "I think it bodes well for the continued growth of bourbon in Australia."

Australia is the third-largest overseas market for Jack Daniel's, Southern Comfort liqueur and BrownForman'sother whiskey brands, spokesman Phil Lynch said. If the free-trade windfall comes about, the company will evaluate what the competition does there before deciding how to spend the extra cash.







3. Diageo Launches Latest Flavored Malt Beverages (FMB)-Twisted V

February 20, 2004


Smirnoff Twisted V Offers Consumers Unique Flavor Range - Green Apple, Raspberry, Mandarin Orange and Cranberry

STAMFORD, Conn. – PRNewswire/ -- Diageo, the world's leading premium drinks company, has added a new "twist" to the flavored malt beverage market (FMB), with the introduction of Smirnoff Twisted V (Five), the first line of fruit flavored malt beverages of its kind to be introduced into the US market. Smirnoff Twisted V uses natural flavors to create a unique tasting beverage that is smooth, flavorful and refreshing. It is currently available in four flavors -- Green Apple, Raspberry, Mandarin Orange and Cranberry.

"We are excited to bring Smirnoff Twisted V to the vibrant FMB category," said Michael Ward, Diageo North America. "This new line of flavorful alcohol beverage drinks is an example of Diageo's commitment to innovative products that meet the evolving tastes of our loyal adult consumers."

Twisted V, which features distinct "twisted" packaging will launch a national television and print advertising campaign in support of the new line and will include a social responsibility message that adheres to Diageo's strict marketing code, the strongest in the industry.

The product line launched nationally during this past holiday season in response to strong consumer interest in 16-week trial run in markets across the country. Consumer response from those who tried the brand indicated more than 90% would purchase the brand. Smirnoff Twisted V quickly became the number two selling FMB across these markets and the product launch has highlighted the viability and potential for future volume growth within the FMB category. Smirnoff Twisted V will be manufactured in Diageo's Plainfield, Illinois plant and will be similarly priced to premium beers.








4. HPNOTIQ Offers the Perfect Complement to Today's Stylish Weddings

February 18, 2004


``Drink of Choice of Celebrities'' Meets All the Criteria For Spring and Summer Nuptials



Spring Beauty & Bridal






Whether served in special recipes like a "Something Blue" (HPNOTIQ, Champagne and mint leaf garnish) or a "Bluely Yours" Cosmopolitan (HPNOTIQ, Citrus Vodka and white cranberry juice), HPNOTIQ adds an element of style to any reception, providing an upscale alternative to traditional wine, beer and champagne.





BARDSTOWN, Ky.--(BUSINESS WIRE)- Well, it clearly has the "something blue" covered...But HPNOTIQ Liqueur is also old (it contains aged Cognac), new (it has been in national distribution for less than a year) and borrowed (it is based on the time-honored French drink, Pineau Des Charentes), making it the ultimate spirit accompaniment for a spring or summer wedding.

An alluring combination of fine Cognac, triple-distilled vodka and proprietary tropical fruit juices, HPNOTIQ, owned by Heaven Hill Distilleries, Inc., has taken the cocktail world by storm. Most recently featured at the Grammy awards festivities, HPNOTIQ's icy aqua blue color, stylish frosted champagne bottle and tart, not-too-sweet taste are winning fans over by the millions. And with nationally known mixologists like Gary Regan and Dale DeGroff extolling its virtues, HPNOTIQ makes the perfect accessory for an unforgettable wedding.

Whether served in special recipes like a "Something Blue" (HPNOTIQ, Champagne and mint leaf garnish) or a "Bluely Yours" Cosmopolitan (HPNOTIQ, Citrus Vodka and white cranberry juice), HPNOTIQ adds an element of style to any reception, providing an upscale alternative to traditional wine, beer and champagne. Guests may recognize HPNOTIQ from the many movies, music videos and events that have made it the hottest new spirit launch in the nation, but even if they are trying it for the first time, its delicious taste and mixability will have them raising their glasses often. Plus, HPNOTIQ's aqua blue color is all the rage and makes it easy to coordinate with wedding or shower themes. Visit www.hpnotiq.com, or contact info@hpnotiq.com to request the special "Something Blue--HPNOTIQ" wedding planning brochure.












5. State Considers Easing Revocation

By Vanessa Miller -  Iowa City Press-Citizen

February 24, 2004

Liquor infraction wouldn't mean losing multiple licenses

IOWA CITY, IA -- Alcohol-selling establishments could be getting a break despite a local push to strengthen alcohol enforcement and statewide efforts to increase underage drinking penalties.

Currently all alcohol licenses held by a business or individual are revoked if one of the licensed establishments is charged with serving an underage patron four times in three years. That means, should the Ames Hy-Vee qualify for license revocation, the Hy-Vee in Iowa City would lose its license as well.

"We are proposing that if an establishment has a fourth violation for selling to a minor, the revocation would only apply to the individual license holder, not the whole corporation," said Lynn Walding, administrator for the state's Alcoholic Beverages Division.

Iowa lawmakers discussed the proposed bill that would dilute penalties for multiple-licensed retailers during a public safety subcommittee meeting Monday. Other proposed legislation would make underage alcohol possession punishable by prison time and driver's license suspension.

Walding said if approved, he expects this bill to be the year's only change in alcohol laws pertaining to retailers.

"I am hopeful it will get out of subcommittee, that seems to be the consensus on this bill," he said, adding that license holders and the Alcoholic Beverages Division are pushing for the change. "This has benefit for the retailers."

Walding said he is not aware of any multiple-license holders who have had their corporate license revoked because they usually turn in the individual license voluntarily upon the third violation. They go without serving alcohol at the one site for three years - until their slate is wiped clean - and then re-apply for a new license.

"That is pretty punitive to say that the entire corporate license is at the whim of one location," said Al Dix, store director of the Hy-Vee, 1720 Waterfront Drive. "I think it should change so that each license is on its own rather than being with the whole corporation. I think it should be individually handled."

Walding said the proposed bill also includes a change in the language that would alter when alcohol license suspensions for lesser violations would begin. Currently, an establishment's license is suspended for 30 days for a second conviction in two years, and 60 days for a third conviction in three years.

The bill changes the word "conviction" to "violation," meaning a court no longer has to rule before license suspension can begin.

"In Iowa City, it may take six months before the court makes a conviction," Walding said.

Jim Clayton, co-director of the Stepping Up Project, a community coalition against underage drinking, said he would like to see the bill differentiate between major corporations and bar owners with two to three establishments.

"I have no problem with this because of the economic impact it could have on Iowa should Hy-Vee lose its corporate alcohol license," he said. "(But) a bar has a lot more responsibility than a convenience store. If someone owns three bars, you are supposed to be in charge of those bars. I think they should all be at risk."



6. Anheuser-Busch Unveils New Alcohol Awareness Campaign

February 25, 2004


Spending on Responsibility Efforts Over 20 Years to Exceed $500,000,000 In 2004


ST. LOUIS, MO -- PRNewswire/ -- One of the most-watched television events of the year will be the stage for the introduction of a new spot from Anheuser-Busch in the fight against underage drinking, part of the company's latest alcohol awareness campaign, "Responsibility Matters." The brewer will unveil the new ad during the telecast of the 76th Annual Academy Awards ceremony Feb. 29, 2004.

The 30-second commercial, entitled "What A Night," begins with three moms talking about what their sons are doing together that evening. One mom thinks they went out for pizza, one thinks they're playing basketball, and one thinks they're at the movies. It turns out the boys actually did all three activities during the evening -- reinforcing that when parents talk with their children and are involved in their lives, kids will make smart choices, including not drinking when they're underage.

This is the second spot in the new "Responsibility Matters" campaign. The first ad featured country singer Tim McGraw and the L.A. Lakers' Rick Fox envying the special attention a designated driver receives. It aired during the 2004 Super Bowl broadcast.

"The new theme says in a few words what research, practical experience and common sense say are most important in addressing all forms of alcohol abuse -- responsibility matters," said John Kaestner, vice president of Consumer Affairs at Anheuser-Busch.

Kaestner explained that efforts that have urged greater personal responsibility are paying off. He noted that according to the U.S. Department of Transportation, drunk-driving fatalities among adults have declined 37 percent since 1982. Among teens, drunk-driving fatalities plunged 61 percent since 1982. Further, 82 percent of adolescents are doing the right thing by not drinking, according to the U.S. Department of Health and Human Services.

Kaestner also explained that Anheuser-Busch has promoted responsibility messages for nearly 100 years, beginning with an ad that ran in 1914 with the message "Budweiser means moderation."

Over time, Anheuser-Busch and its network of more than 600 beer distributors have implemented a wide range of educational efforts to fight abuse. In 1985, the company became the first in the brewing industry to bring responsibility messages to network television with its "Know When To Say When" campaign, which encouraged adults to drink responsibly.

Anheuser-Busch's newest alcohol awareness initiative, "Responsibility Matters," reinforces and encourages adults to drink moderately, designate a driver or call a cab if they may have had too much to drink, and talk to their children about underage drinking. The new ads were created by DDB Chicago and will appear in national prime time network, cable programs and in sports programming. Radio, print and billboard ads are also part of the campaign.

Kaestner explained that Anheuser-Busch distributors also play a key role in fighting abuse through implementing effective community-based programs. They implement efforts to help train bartenders, waitresses, convenience store clerks and others in proper serving techniques and how to handle check IDs to prevent illegal sales. In addition, distributors bring speakers to high schools and colleges to talk with young people about making smart, safe decisions and respecting themselves and the law. Distributors also provide educational materials free of charge to parents of middle, high and college-age children to help them initiate discussions about drinking.

"There is no doubt that our efforts have helped promote responsible drinking among adults, as well as encouraging parents to sit down with their children and talk about important issues such as underage drinking," said Kaestner. "When it comes to fighting underage drinking and drunk driving, we all need to be a part of the solutions to these issues. When you think about it, it's responsibility that really matters."

Since 1982, Anheuser-Busch and its wholesalers have invested more than $465 million in alcohol awareness and education efforts to help fight underage drinking and drunk driving and to promote personal responsibility. For more information on these efforts and the progress being made, visit http://www.beeresponsible.com .