Recall, Indy gas stations, c-stores, grocers and pharmacies sued the state in fed ct earlier this yr to get the right to sell cold beer.  The case goes to trial this week, with 2-day hearing scheduled, Indy Star and others report.  Indy (and only Indy) restricts cold beer sales to on-premise outlets and package stores.  Previous bids to change the law in the legislature have failed.  Retailers argue that law violates their equal protection rights, citing recent Ky case that ruled state could not similarly discriminate between retail outlets.  Liquor stores defend status quo, charge that changing law would be unfair to them and rely on 21st Amendment’s grant of broad states’ rights to regulate. 

Indy has become a hotbed of alc bev regulation debate.  It was focal point for direct shipping yrs back.  More recently, there’s attempt by AB distribs to broaden franchise protection against wishes of brewers, MC distribs, others.  Then too, big MC distrib Monarch in fed lawsuit to obtain right to add liquor to its biz.  Legislature is considering bill to allow alc bev sales at state fair.  And there will be another bid to expand Sunday sales via legislation in 2015, same retailers bringing suit promise. 

Not just Boston Beer execs who took advantage recently of their co’s surging share price (see last Express). Constellation ceo/prexy Rob Sands exercised options for 192K shares at $16.63 and sold same amount at mkt price of $79.15 and $79.30 last week, for gain of $12 mil.  Brother Richard did same deal on 243K shares for $15.2 mil gain.  And exec veep/genl counsel Thomas Mullin cashed in 60K shares for gain of $3.7 mil.  Musta made for Happy Valentine’s Day in Victor, NY, Constellation’s hometown.       

It’s early days, but lotsa buzz around Miller Fortune, biggest new bet from MC in above premium.  Brand’s getting good distribution quickly, we keep hearing, so key will be pull-through.   Fortune is “largest launch of a new product” since MC formed in 2008, cmo Andy England told NY Times ad columnist Stuart Elliott.  “Significant spending” will exceed Redd’s  spend last yr, Andy said (Stuart cites figure from Kantar Media of $23.1 mil on media for Redd’s for 9 mos 2013). Ads coming soon use Brit actor Mark Strong as “mysterious character,” said Andy, and include tag lines “Open Pandora’s  bottle” and “Your Fortune awaits.”  More about media approach from ad agency officer: Fortune aims to expand oppys for beer beyond typical “beervertising,” tailgates, parties and sophomoric humor to spirits occasions/drinkers, as MC has said all along.  Fortune could be “mood enhancer, a trigger for change in your night versus ‘you know where it’s going,’” she said.  While Times gave Fortune solid play, coverage elsewhere a bit spottier.  Not everyone making distinction between “bourbon-inspired” (which Fortune kind of is) to target spirits occasions and “bourbon-flavored” (which it isn’t).  But perhaps MC trying to make too fine a distinction.  Then too, MC can’t be too happy with headlines like “Miller Coors hikes beer alcohol level to entice younger drinkers” or “MillerCoors Releases Miller Fortune, New Highly Alcoholic Dark Beer Designed to Compete with Spirits.”

Meanwhile, yesterday AB announced new “Rise As One” global ad campaign and limited edition gold bottle, other new packaging for Budweiser tied to upcoming World Cup tournament in Brazil.  In US, pkgs include 16-oz aluminum bottle, 25-oz can and 11.3-oz bowtie can.  New ads will break online Mar 5, with plenty of natl television, local programs, outdoor and social media components to follow.        

Nothing like serious new competition and disagreement over franchise protection to heat up a freezing New England state in Feb.  But Mass a hot spot on both fronts right now.  Pending Yuengling intro being treated as big deal, not only by Yuengling and its distribs, but key competitors as well.  AB prepared to spend $10+ mil in response, is number that’s floating around.  And Craft Brewers Guild (L. Knife’s craft arm) threw big bash for retailers to welcome Yuengling last week, reports Brewbound.com.  AB’s March pricing plans call for reductions (wholesale to retail) of 80 cents per 24/12 case on Bud family to $15.85 (we’ve also heard lower prices on loose cans), almost a buck on Michelob family, plus deals for Platinum, Shock Top. MC responding too, we hear, tho not as aggressively for now.  Recall that in first few mos of Yuengling intro in Ohio at end of 2011, it grabbed nearly 10 share across 3 channels, more in grocery stores.  AB and MC surely don’t want repeat of those numbers.  Meanwhile, sales sheet has appeared in Boston mkt warning retailers that “excitement” surrounding Yuengling intro “could cost you a lot of money.”  Why’s that?  Buyers of brands like Sam Adams, Blue Moon, Harpoon, wine and spirits, flyer depicts, will try Yuengling at retailers’ expense.  “To protect your bottom line,” flyer advises retailers to “price Yuengling like a craft beer” (which Yuengling does not advise), “sell it only in bottles,” trade domestic drinkers up and “make your $$$$ while you can.”  Did someone say beer biz is a bit competitive?

Meanwhile, small brewers in Mass continue to seek franchise reform that would allow brewers to terminate without cause if distrib that loses brand gets fair mkt value.  Distribs claim current law and process to move brands work just fine.  In latest round of press, Boston Globe came out again in defense of small brewers in editorial today.  “Small brewers are hemmed in by rules that restrict one key aspect of their business,” Globe sez: distribution.  Globe countered hearing testimony from Bill Kelley, prexy of Beer Distribs of Mass, that bill would lead to “arbitrary and capricious” decision by small brewers to terminate.  Speculated that Mass distribs less concerned about tiny craft brewers than those “that straddle the line between niche and mass-market status” (i.e. Boston Beer) and fear that bigger brewers could seek similar rights.  In any case, “to encourage growth” of craft brewing, “lawmakers should be willing to cut these small-scale breweries a break,” Globe concludes. 

Today’s editorial follows op-ed by Bill Kelley in Globe last week.  Bill attributed “much” of craft’s success in state to distribs’ support as they play “vital part” in sales/mktg of craft.  Proposed bill would change already “flexible laws” that regulate brewer-distrib relationship and allow brands to move.  Then too, proposal would create “instability that would directly impact the ability and willingness” of distribs to make needed investments, could harm new small brewers, consumer choice, etc.  Bill wrote too that it’s “unfortunate that giants like Sam Adams and Harpoon would push such unfair legislation.” Op-ed really stirred up small brewers, we’re told. Did someone say franchise reform is sensitive topic?