|
www.IowaABD.com |
Lynn M. Walding, Administrator |
|
|
e - NEWS |
|
August 22, 2003 |
|
1. Brown-Forman Settles Diageo Suit for $14.3 Million
4. Allied Domecq Stock Jumps On Talk of U.S. Bid
1. Brown-Forman
Settles Diageo Suit for $14.3 Million
August 14, 2003
CHICAGO (Reuters) - Brown-Forman Corp. (NYSE:BFa - News;
NYSE:BFb - News), The maker of Jack Daniel's whiskey, on Thursday said it
settled a lawsuit with Britain's Diageo Plc. (London:DGE.L - News) over
distribution of Jack Daniels in the United Kingdom.
Brown-Forman said it would pay Diageo 8.9 million pounds,
or about $14.3 million, to end the dispute, which involved Diageo's contract to
distribute the spirits brand.
Brown-Forman said Diageo had distributed Jack Daniels
in the United Kingdom under a contract that expired on July 31, 2002. Diageo
wanted to extend the contract for an additional three years, Brown Forman said.
The spirits are now distributed by Brown-Forman under
a cost-sharing agreement with Bacardi.
August 12, 2003
Source: Beernet online
MILWAUKEE - As reported yesterday in an Alert, Miller
Brewing Company will cut about 200 positions in its corporate headquarters in
Milwaukee.
The job cuts are part of a company-wide restructuring
which will result in "multiple role and job changes" to ensure that
people are in the right jobs in the right places to effect positive change for
the brewer, which has experienced tough sales trends and market share loses of
about a point since SAB bought Miller just over a year ago.
The 200 job losses account for about 20% of the
workforce at its Milwaukee offices (not including brewery workers).
Miller spokesman Mike Hennick told Beer Business
Daily that no breweries are planned for shuttering. Miller has about 950
employees at its Milwaukee offices and about 825 at its Milwaukee brewery.
Beer Business Daily has learned that Norman Adami
called several key distributors yesterday morning to talk about the changes and
to reassure them.
EXECS STILL THERE. The higher ups at Miller are safe
(Mikulay, Broadman & Co). The upper management was essentially already
restructured with the departure of John Bowlin. Spokesman Mike Hennick said
that "this is the team that Norman put together" to turn this baby
around, and he's sticking with it.
Miller management met with employees all day Monday,
and the meetings will continue Tuesday and Wednesday. The meetings, we gather,
are intended either to discuss their new positions or to lay off. Tough duty,
to be sure.
Miller field reps we spoke to were no less jittery,
even though the 200 deleted jobs are in Milwaukee. "Many of the changes in
the field have already taken place," said one Miller employee under
condition of anonymity. "But more could be coming, we don't know."
A influential distributor said, "Is it good? It
depends on how they use the money they save. We'll see."
Another distributor wrote: "Miller has a fair
amount of weak links from top to bottom that hopefully the light will shine on.
Once they get the right people, then we can roll up our sleeves together to get
the job done that we all know needs to."
3. US
Drinkers Lighten Up
Beverage
Daily
August 21,
2003
Light and imported beers are giving a much-needed boost to
the stagnating US beer market, according to a new report from market analysts
Canadean.
The total beer market in the US has grown by just 1 per cent
since 1998, but sales of light and imported beer have risen by over 4 per cent
and almost 9 per cent respectively during the same period. Premium beer,
popular beer and ice beer have all declined in the US, with the gap in
consumption being filled mainly by imported beer. The fact that there is
virtually no licensed production of foreign brands in the US has helped imported
beer to grow strongly, with brands from neighbouring countries Mexico and
Canada in particular appealing strongly to American consumers. These two
countries account for almost 60 per cent of all beer imports.
Light beers, which are low in calories but not lower in
alcohol, are unique in North America, and it is now easily the biggest sector
of the beer market in the US, Canadean claims. It is still growing steadily,
however, with many light versions of major brands now outperforming their
regular counterparts.
Second placed premium beer has come under increasing
pressure from imported and light beers and has seen its share of the market
eroded to less than 20 per cent. Conversely, significant new product development
activity helped consumption of super-premium and speciality beers to grow by
over 7 per cent in 2002.
Although still comparatively small, the craft beer sector
has become one of the most vibrant in the market. Mainly produced by
microbreweries and brewpubs, the popularity of craft beer has grown strongly
with 2002 consumption 20 per cent greater than it was in 1998, claims the
report.
Over the last three to four decades, the US beer industry
has been through a period of intense consolidation, resulting in the emergence
of a small number of brewing giants. Furthermore, the five best selling brands
now account for almost two thirds of all beer consumed. It is also worth noting
that vertical consolidation is not possible due to the US liquor industry's
unique regulations that dictate that producers, wholesalers and retailers must
be independent from each other. Consolidation has also continued amongst
wholesalers, albeit at a slower pace than previously.
Cans are the most popular pack type but are declining.
Non-returnable glass, predominantly in 35.5cl size, is the fastest growing pack
format. This growth has been fuelled not only by the success of imported
brands, but by domestic brands trying to follow the lead of their foreign
competitors.
The US economy remains sluggish and economic forecasts are
gloomy, but the future could yet be rosy for beer, the report claims. Plans to
introduce new legislation doubling the excise tax on FAB's and prevent them
being sold in many outlets could turn many consumers back to beer. Nonetheless,
Canadean expects total beer consumption to increase by not more than 1 per cent
in 2003.
4. Allied Domecq Stock
Jumps On Talk of U.S. Bid
Thursday
August 21, 2003 ET / Reuters
Allied shares jumped as much as
5.6 percent to a seven-month high of 403p in early trade.
At 0840 GMT, the shares were 4.3
percent higher at 398-1/4p, valuing the maker of Ballantine's scotch whisky,
Beefeater gin and Kahlua liqueur at about 4.4 billion pounds ($7.0 billion).
Allied declined to comment and
Brown-Forman were not immediately available for comment.
Analysts have long been looking
for further consolidation in the mature spirits industry as second-tier players
try to catch up with market leader Diageo Plc (London:DGE.L - News).
Teather & Greenwood's Nigel
Popham said Brown-Forman, France's Pernod Ricard (Paris:PERP.PA - News) and
privately-owned Bacardi were all possible partners for Allied.
Buyers would have to pay at least
450 pence per share, or about 5.0 billion pounds for Allied, Popham said.
A friendly merger was just as
likely, he added, given the cost-savings and procurement benefits that could be
extracted from a deal.
