Consumers shoppin' for Corona or Heineken in chains like Krogers, Albertsons, or Safeway increasingly likely to see similarly-packaged "privileged-label" (read: private label) brands Cajuma or Hollande 1620, wrote Supermkt News. While still tiny % of total beer category, private label grew faster than hi-end in supers in '02, and on same shelf space, with price points in between premium and import beers. Ain't just import knockoffs, either: chains tryin' everything from pale ale and cream stout to beer in cans targeting Bud, Miller, and Coors. One driver of private label, claims one producer: consolidation, cuz "retailers are left with fewer choices." No mention that big retail chains squeezin' brewers and distribs.

Tho biz soft in much of country, total beer biz pricing holding up well so far.  But interesting to note that Miller didn’t take Feb 1 price hike this yr in its largest mkt Chi.  And  it took smaller increase in 03 than 02 in Wisc, other mkt where it’s price leader.  Still, avg prices paid for Miller products up 3.8% in supers yr-to-date thru Feb 9, according to IRI. That’s pretty much on par with avg price hikes for AB brands, 3.9%.  AB raised price or reduced discounts in most of Northeast in early Feb, including 75 cents in NY.  Miller and Coors followed in most states.

Among top beer brands that is. Corona is #1 brand in nation’s capitol, according to annual surveys by Scarborough Research; 12% of adults said they’d had a Corona in month before asked in most recent survey. Next 3 brands all rounded to 10%: Coors Light, Heineken and Bud Light. Ranked next, also at 10%: “other import.” Bud, Miller Lite and Sam Adams follow at 8-9% each. Then it’s “any microbrew.” Less than half (46%) of DC adults said they’d had a beer in last mo (questions asked 8/01-9/02). That’s about avg for top-10 metro mkts in US, according to Scarborough. Highest: 49.6% in Boston. Lowest: 42.8% in Houston.

That followed 7% gain in 01 and HUSA expects 7% gain in 03, Heineken chairman Thony Ruys told analysts. Shipments to US up 10%, with Amstel Light up 17% in 02.

It’s all new brand intros. New brands from top-2 sold 143,000 bbls in Tex in 02, much more than 102,000 bbls, 32% that malternative segment gained. Malternatives sold 418,000 bbls in Tex, got 2.3 share. #1 Smirnoff Ice down 23,000 bbls, 11% in its #1 mkt and off 0.2 share to 1. Skyy Blue was #2 at 57,000 bbls, just ahead of Bacardi Silver. Zima dropped to #4, down 26,000 bbls, 1/3.

AB gained 459,000 bbls, 4.9% and sold 9.9 mil bbls in Tex in 02, easily surpassing Calif as AB’s #1 state.  AB jumped 2 full share to 53.9 in nation’s 2d-largest beer state.  Meanwhile, Miller lost 229,000 bbls, 6%, including 9% drop in 2d half.  Ouch!  Share fell 1.5 to 20.  Coors also lost volume and share.  Down 54,000 bbls, 2% and fell 0.4 share to 13. 4.  Top 3 at 87 share.  Gambrinus hit 3.5 share: Modelo brands up 62,000 bbls, 17% and Shiner brands down 10,000 bbls, 5%.   Bud Light Over 5 Mil Bbls in Tex Even in face of malternative onslaught (see below), Bud Light jumped 439,000 bbls, 9.5% and hit 5.1 mil bbls in Tex for 28 share.  At same time, Miller Lite got clobbered.  Down 209,000 bbls, 8.7%.  Coors Light also hurt; down 90,000 bbls, 5%.   Brand Bud also continued to fall: down 68,000 bbls, 3.4%.  

Soft drink biz up 0.8% in 02, following 0.6% gain in 01, according to newsletter Beverage Digest. Coke up 2% and gained 0.6 share to 44.3, while Pepsi up 0.2 and lost 0.2 share to 31.4. Dr Pepper/Seven Up dropped 3% and lost 0.6 share to 15. So top 3 soft drink cos at 90 share of soft drinks, even more concentrated than beer. Other share gainer: Cott Corp volume up 12% and gained 0.4 share to 4.2 with private label brands. Four of top 5 soft drink brands declined: Coke Classic down 2%, Pepsi down 4%, Mountain Dew down 4% and Sprite down 2.5%. Only Diet Coke gained: up 3%.

Supreme Court declined to hear Maris family appeal of Federal anti-trust case against AB, without comment. So Maris claim that AB violated antitrust laws by banning public ownership of distribs shot down for 3rd time. District court decision upheld by Circuit court last Aug.

State Supreme Ct just threw out Wash franchise law, declared it unconstitutional.  Law required a supplier to notify, have cause to terminate a distrib, but court tossed it because it exempted in-state wineries.   (Several state direct shipping bans have fallen for same reason: exempting in-state suppliers.)  Tho judges focused on wine, beer got caught in crossfire.  What’s more, sweeping ruling suggested every clause in a state law on alc bevs “must be justified by core concerns” under 21^st Amendment.  Distribs didn’t offer legit justifications for exempting in-state suppliers, court ruled.  Decision also shifted burden to prove that laws are legit to state, instead of making challenger show law flawed.  Adding insult to injury, Constellation and Sebastiani won atty fees from distribs.  More analysis in next BMI.

Following big Nov increase (17%) imports shipments dipped 34,000 bbls, 2% in Dec. Gotta look at comps here too: imports jumped 22% in Dec 2001. For the yr, imports up 1.3 mil bbls, 6%, smallest bbls gain since 96, smallest % gain in 10 yrs. Imports avg gain 97-2001 was 1.9 mil bbls. Even so, imports picked up another half-share of US biz to 11.3. Another milestone: for 1st time ever more import beer sold in US than Coors products. Mexican shipments led way again in 02: up 12%. Dutch shipments up 10%. Canadian, UK and German shipments each flat or down.