Separate from Boston results, chairman Jim Koch praised beer distribs as best option for beyond beer/4th category products during conference call when asked about recent distribution moves by Sazerac. "The beer system is just better at building brands there, gaining distribution, merchandising," and more, and these products are mostly made in breweries, packaged and sold like beer. But "most of the liquor brands" are likely to end up in liquor distribs, and the Sazerac moves are "not going to be an opening of the floodgates" for liquor brands moving to beer distribs, in his view. Those brands' primary volume is "outside of the cold box" and Boston Beer is "always going to be at a much higher level of priority at our beer distributors," he added. That said, Sazerac move is mainly "just a recognition that the liquor system" and "route to market is disadvantaged in this fourth category."

It's the beginning of the end for a multi-billion-dollar agreement. Mexican corporation FEMSA announced plans this morn to divest its effective 15% stake in Heineken within 2-3 yrs. Recall, FEMSA took ~20% stake when Heineken bought FEMSA in 2010. It subsequently sold 5% in 2017, but now it's lookin' to get out completely. "FEMSA intends to divest its full shareholding" and its appointed directors will resign from Heineken's board immediately, co announced. Heineken added that it "respects FEMSA's decision to refocus its strategic priorities" and thanked co for its contributions.

During his state-of-city address yesterday, Seattle Mayor Ed Murray proposed 2-cent-per-oz tax (at distrib level) on sugared bevs to raise $16 mil towards youth and education programs, per AP. "Other cities including Boulder and San Francisco, Philadelphia and Oakland have passed similar policies both to fund youth services and to achieve positive public health impacts," noted Murray, in hopes to bolster his plan. He failed to mention that smaller tax (1.5 cents) in much larger Philly has had bev distribs "gearing up for layoffs" after bev sales plunged 30-50%, "worse than the city predicted," noted report. Murray is asking Seattle city council to put measure on Aug ballot. Murray's been a "taxing" Mayor so far, noted Seattlepi.com, with this proposal coming just 3 months after he pushed Seattle residents to back hikes in sales tax, property tax and motor vehicle fees. But if this tax, which would include energy drinks and juices, were to also include sugary coffee drinks, that's where tax "might arouse other opposition" from city's famously java-lovin' residents, noted Seattlepi.com, given that "a proposed latte tax generated a civic uproar a few years back."

Denver-based New Age Beverages closed public offering of 4.29 mil common shares at offering price of $3.50 per share, netting $17.25 mil before discounts, commissions and other expenses. Proceeds were boosted by underwriter exercising overallotment to purchase additional 643K shares. New Age is rollup of brands that include Xingtea, Bucha Live Kombucha, Marley Mellow Mood and others.

In potential sign of how seriously PepsiCo views its stable of refrigerated natural and organic brands, rising marketing star Seth Kaufman has segued from cmo job to head of N Amer nutrition biz that includes brands like Quaker, Tropicana, Naked and newly acquired KeVita. Shift, first reported by Beverage Digest, puts svp marketing Greg Lyons in cmo spot, following year-long run by Kaufman in post. "He is a top talent for us and we wanted to continue to grow him," PEP cfo Hugh Johnston told Bev Digest. "The nutrition businesses tend to be very marketing-intensive. We really want to bring in a big time marketer to run these businesses and Seth is one of the best we have" . . . Steve Finn, longtime Conagra and Danone Waters exec, has segued to LA Libations, where he's picked up title of svp for sales strategy and FSOP. Besides building sales strategies for LA-based incubator, Steve adds particular focus on Coke's Illy coffee brand, at time that it must compete for attention within Coke system with newly launched Dunkin' Donuts brand and forthcoming Gold Peak brand. Finn comes off year and a half as svp sales/marketing at Fla-based Sun Orchard Juicery, following vp sales role at Danone (Evian and Volvic brands). Earlier in career, he worked at Peet's Coffee & Tea, giving him direct experience on coffee front.

Dean Foods leadership team last week offered its take on Organic Valley joint venture while promising intensified push to move into adjacent categories from their core Class 1 milk biz and saying door is open to M&A following recent deal to purchase Friendly's ice cream co. "We are open for business," said ceo Ralph Scozzafava. "Folks who have a business to sell know that they can call us and it's not a wasted phone call." Co seems open to broad range of opportunities, including items that would be warehouse-shipped rather than moving to retail aboard Dean's DSD fleet, Ralph indicated.

CSD volume declined 3.5% (down from -2% for 12 wks) as avg price increases improved to avg of +2% last 4 wks thru Feb 11 in Nielsen all-channel data reported by Morgan Stanley's Dara Mohsenian. Coca-Cola went from slight gain (+0.2%) for 12 wks to 1% decline last 4 wks as avg prices edged up to +1% last 4 wks. PepsiCo CSD pricing remained solid, up 3.8% last 4 wks, which slowed volume even further to -7.4%. Dr Pepper Snapple volume was off 0.3% on flat prices last 4 wks. Private-label brands fell 8% on avg 1.5% price hike last 4 wks.