MillerCoors sez that its aluminum bottle weighs far less than AB’s, contrary to what AB claimed in recent meetings.  MillerCoors Alumi-Tek 16 oz bottle at 23.5 grams, compared to AB’s 30.91, sez MC veep Pete Marino, adding that’s 32% less.  

Calif class action atty Joe Alioto refuses to go away.  Recall, US Dist Ct judge dismissed challenge to ABI-Modelo deal in Sep, finding Alioto’s antitrust arguments on behalf of consumer-plaintiffs “unpersuasive.”  (See Sep 17 Express.)  But Alioto is now claiming Constellation and ABI made “misrepresentations” in legal docs and at Aug hearing in this case that create a reason to reconsider.  Alioto cites our Aug 19 beer marketer’s INSIGHTS report that Crown “more aggressive on price than it has been in years,” that it had plans to increase prices in Calif and Fla this fall and that Crown would be “much more likely” to follow AB price hikes given current price gaps.  (Actually, we had reported Crown Fla/Calif hikes as early as Jun 17.) 

To Alioto this “newly discovered evidence” means that Crown/Constellation claims to “compete vigorously” vs ABI (and take share from it) “had already been discarded” and supports his original theory that Constellation would be ABI’s “puppet” and raise prices at expense of his consumer plaintiffs.  He also cites “intended inferences” made by Constellation that it would not raise prices or follow AB price hikes, even tho it was already implementing plan to do so.  Judge should vacate decision to toss original suit, Alioto now argues, and “grant discovery” for all data on pricing, including depositions of ABI ceo Brito, Constellation ceo Rob Sands and any Crown exec “responsible for the pricing and price increases.”

ABI/Constellation responded to this “spurious motion” by arguing: 1) “alleged misrepresentations” don’t affect reasons why judge “properly dismissed” lawsuit’s claims in Sep; 2) current claims “have failed to show that any misrepresentation occurred”; 3) so-called “newly discovered” info (from INSIGHTS) was available to Alioto “well before” judge decided case. 

Court dismissed suit based on “specific agreements” between ABI, Modelo and Constellation, not “statements made outside the scope of the pleadings and about future intended conduct,” ABI and other defendants insist.  New info is “irrelevant” and “simply reports on Crown’s independent business decision with respect” to Modelo pricing in the US, which has “nothing to do” with original claims that ABI will “control” Constellation.  Nor does new info indicate any agreement between ABI and Constellation to fix prices.  Besides, “raising prices by itself,” defendants remind, “is not inconsistent with vigorous competition, especially where the price mover continues to take market share from rivals.”  Then too, Crown execs never said they’d not hike prices.  So this “latest attempt to resurrect this case should be summarily denied” ABI, et al, conclude.

The red-hot cider segment continues to score big gains, up 52% in 3d qtr and up 53% YTD on-premise thru early Nov, per GuestMetrics report.  Cider is still just 1 share of on-premise volume in US.  Distribution for ciders on-premise is up to 70% at bars/clubs while just 47% casual and 24% fine dining restaurants carry ’em so far.  “While we track about 240 cider brands,” ceo Bill Pecoriello noted, the Angry Orchard family of brands along with Strongbow and Stella Artois Cidre “together account for 45% of total cider volumes and drove 99% of the volume growth.”  The “230 or so” other ciders managed gain of just 0.3%.  He also noted it will be “interesting to track closely” the pricing of those top-3 brands, as HUSA’s strategy to position Strongbow as an upscale cider has its avg on-premise price at $5.64, “a 13% premium above” Angry Orchard at $4.99.   

NYC could raise $49 mil per yr if it nearly tripled beer and liquor tax and added new wine tax, said city’s Independent Budget Office today, recommending move as part of its annual wish list.  It looks for beer tax of 34 cents a gallon, up from 12 cents, $2.80 per gallon on liquor up from $1 and new wine tax of 30 cents per gallon.  These moves would need to be approved in Albany, notes Politicker. 

Meanwhile, just yesterday, NY Post editorialized against fed beer excise taxes.  It wants ’em eliminated entirely: “the best and fairest course would be to get rid of this tax altogether,” the Post noted.  Post also favored big brewers’ BEER bill over small brewer BREW bill because BEER “would lower excise taxes across the board.” 

Some relief for import trend.  Shipments up 159,000 bbls, 7.6% in Oct, reports Lester Jones from Beer Inst, based on Commerce Dept data.  Big gain in Dutch and Irish (+25% each) and Belgian (+35%) beers, plus an 8% pop in Mexican shipments drove the Oct gain.  Yr-to-date trend, -686,000 bbls, -2.8%, still hard to accept given other known data.  Key is that Commerce reports show Mexican shipments up just 78,000 bbls, 0.6% for 10 mos.  But Crown shipments alone up over half-mil bbls thru Sep.  And HUSA’s Mexican portfolio also growing.  Elsewhere, imports from Netherlands, Canada, Belgium, Ireland and UK each still down in mid-single digit range yr-to-date.  Other than Mexico, only Germany showing gain among significant import source countries.  We’ll see if imports gain more ground in Nov and Dec, which combined for 381,000-bbl, 10% drop (much of that Mexican beer) last yr.  So very easy comps.   

Some relief for import trend.  Shipments up 159,000 bbls, 7.6% in Oct, reports Lester Jones from Beer Inst, based on Commerce Dept data.  Big gain in Dutch and Irish (+25% each) and Belgian (+35%) beers, plus an 8% pop in Mexican shipments drove the Oct gain.  Yr-to-date trend, -686,000 bbls, -2.8%, still hard to accept given other known data.  Key is that Commerce reports show Mexican shipments up just 78,000 bbls, 0.6% for 10 mos.  But Crown shipments alone up over half-mil bbls thru Sep.  And HUSA’s Mexican portfolio also growing.  Elsewhere, imports from Netherlands, Canada, Belgium, Ireland and UK each still down in mid-single digit range yr-to-date.  Other than Mexico, only Germany showing gain among significant import source countries.  We’ll see if imports gain more ground in Nov and Dec, which combined for 381,000-bbl, 10% drop (much of that Mexican beer) last yr.  So very easy comps.   

7G Distributing, a merger formed in 2010 between Lee Distributing and Kirchoff Distributing, has deal to buy 1.5 mil case Vanguard Dist in Davenport, Iowa.  The deal will close Jan 1 and Vanguard will be renamed 7G, which will now be almost 6 mil cases.  “We were in a good position financially and Bill Wallace wanted to exit the business,” Joe Lee told The Gazette.  Vanguard is contiguous and “we expect to achieve a number of synergies.”  This is “just the right time,” Bill told INSIGHTS.  He’s 61, been doing this since 1977.  Some may recall that Bill had bought a stake in the biz in 1998 and then purchased it outright from Duncan Cameron in 2005.  So this is unusual; 2d time in last decade that this AB distrib changed hands.   AB still has 62 share in Ia tho it has lost a couple share there in last 4 years.  Following this deal, two distribs, Doll and 7G, will be 70% or more of AB’s biz in state.  

ABI digital marketing veep for North America Lucas Herscovici spoke at ANA (Assn of Natl Advertisers)  “Real-Time Marketing Conference” earlier today, touching on hot topics ABI has addressed numerous times this fall. The message was similar: ABI is “betting big” on digital;  Lucas showed slide that sez AB looks to shift marketing focus from 90% paid advertising model to 50% earned media (word-of-mouth, consumer-created content, other social media talking about your brands, etc), 25% paid and 25% owned (website) media, and become “the best CPG company in digital.”  Asked how far along ABI is toward making this happen, Lucas declined to comment.  He again cited Facebook case study where Bud Light got 3.3% sales lift and 6:1 return on investment spend from Facebook posts with the highest engagement (boosted thru paid media). “ Sales” and “brand health” are the two key indicators of success via social media for ABI, sez Lucas.  This shift towards much higher % of earned media is “one of the biggest challenges we have,” he added.  

This is the 2d Miller distrib selling to a Coors distrib in NJ in last yr or so.   Shore Point (Coors/Crown) deal to buy Point Pleasant (Miller/HUSA) was announced to employees yesterday, with deal expected to close as soon as possible, pending supplier approvals.  Shore Point is about 7 mil cases and Point Pleasant about 2 mil cases.  The other MC transaction in NJ was Peerless Bev purchase of Kristen at the end of last yr, putting Peerless over 8 mil cases. Until then there was a separate Miller and Coors network in most of state, but following 2 deals, that’s certainly much less the case. 

Following this purchase, Shore Point and Peerless combined will represent over 25% of volume in state of NJ. Recall, AB has just 29 share in NJ, 1 of its lowest in US.  But its share about even since 2008.  Meanwhile, MC at 33.6 share last yr, down from 35.9 in 2008.   MC lost 146,000 bbls, 8.5% of its volume in NJ in last 4 yrs, while AB and total mkt down about 3%.  Crown at 13 share in NJ, up slightly, and HUSA at 8, down more than 1 share in last 4 yrs.  Recall, New Jersey shipments among softest in US in 2013, down 4.2% thru Oct.   

AB’s series of new videos on Bud Light’s YouTube channel that riff on running “Hold my beer” jokes featured in NY Times today.  Those videos were one of hits at AB’s sales conference last mo.  While phrase “hold my beer” is usually followed with “reckless stunts” in online clips, for Bud Light they will be more “sketch-oriented” comedy spots created by comedian John Krasinski, known for his years on “The Office.”  Videos will be promoted through social media via hashtag #holdmybeer (they can be seen on our Twitter page).  These videos are part of ongoing effort to “make Bud Light humor more relevant and more contemporary,” said mktg veep Paul Chibe.  “The big issue I saw was that we were making fun of our drinker; instead of laughing with, we were laughing at,” he added.  Videos are planned for online only but “if something pops” they could hit TV.