For years, Rick Berman, atty for alc bev retail assns, has argued that antis trying to end all drinking and driving, not just drunk driving.  Two recent incidents support Berman’s view.  First, at MADD press conference in DC in Dec, former police chief said: “If you choose to drive after drinking, government will give you a ride.  But you will go directly to jail and you will not pass ‘Go.’ Your bond will be more than $200.”  Didn’t limit remarks to those over BAC limit.  Second, DC papers reported this week that Virginia police are pulling patrons from bars at random, takin’ ‘em outside for sobriety tests and hauling some away, regardless of whether they’re planning to drive.  Cops call it legit police work; bar owners (and Rick) call it harassment.  Actually, Rick, with characteristic understatement, calls it “an anti-alcohol jihad.”

In case you had any doubt about what direct shippers lookin’ to accomplish, gotta see quote in Jan 7 NY Times from NY winemaker and state economic development “czar” John Dyson: “We’re trying to open the market to make life easier by getting rid of the middleman.” Is that official state policy?

Diageo will spend millions buyin’ three 30-second slots on Super Bowl from 64 local stations to intro its line extension Smirnoff Ice Triple Black, according to Wall St Jnl. AB has purchased 5 minutes of time on Super Bowl and has malt bev exclusive nationally, but Diageo can easily buy time locally. Did so last yr when Smirnoff Ice was still spiralling upwards. Diageo’s persistence in face of big recent malternative declines amounts to a bold gesture that it ain’t givin’ up.

Dollar sales up 5.5%, according to ACNielsen.  AB, Modelo and Heineken built share, Coors held, Miller and Pabst lost.  AB grabbed 62.7 share of volume in C-stores nationally, up 0.7 YTD.  That’s 14 share higher than AB’s overall avg in US.  Miller share off a point to 19.  Miller close to it total US share in C-stores, but Coors about 2.5 share lower in C-stores than its total share.  Similarly, tho Modelo and Heineken have 4.1 and 2.5 share of total US biz respectively, each still below 2 share in C-stores across US.  Among top brands, gainers were Bud Light, Coors Light, Nat Light, Heineken, Corona and High Life.  Down in C-stores: Bud, Lite and Busch.  Import volume up 8%.  Specialty biz (including malternatives) flew.  Up 55%, but still just 2.4 share of C-store volume. 

AB hit 101.8 mil bbls of domestic beer shipments in 02 (including Puerto Rico), up 2.1 mil bbls, 2.1% it reported.  Sales-to-retailers grew 1.6%, including 0.3% decline in 4th qtr.  That 4th qtr STR number a little less than anticipated, especially including Ultra rollout.  Suggests total beer biz retail sales soft in 4th qtr.  AB cited tuff comparison with 5% STR gain in 4th qtr 01.  Wholesaler inventories “essentially the same” at end of 02 as 01, it said.

Miller told employees this morning that it will close its smallest and least efficient brewery in Tumwater, Wash by Jul 1.  Following 2 days of intense front-page local press coverage and speculation in the Olympian, Miller made it official.  Closing necessary to “improve Miller’s overall operating costs and system flexibility,” it said. Tumwater has about 400 employees, including  350 hourly workers.  In latest numbers we have (thru 2000), Miller had about 59 mil bbls of total capacity.  But it only shipped about 49 mil bbls of Miller and Pabst  in 02.   Miller said it produced about 1.7 mil bbls of 4 brands it acquired from Pabst in Tumwater in 02, but it never produced any trademark Miller brands there.

“Two Buck Chuck” aka Charles Shaw wine priced at $2 per bottle flying off shelves at Trader Joe’s stores in Calif, reported Reuters. “Nobody is buying it by the bottle…They’re buying it by the case,” said store vp. Because of excess supply in state and worldwide, cheap “quality” wines here to stay for some time. Grape glut expected to last up to 5 yrs, according to a wine industry watcher.

Surprisingly strong trend in 3d biggest state. Each of top-3 brewers up in Fla thru 3d qtr but Pabst off 14%, 39,000 bbls. AB up 4%, 215,000 bbls and grew to 58.3 share in Fla last 12 mos. Miller up 1.5%, 25,000 bbls thru Sep, but off 1%, 22,000 bbls; 0.8 share in Fla last 12 mos. Coors up 3%, 13,000 bbls YTD. Held steady at just 5.5 share. Heineken jumped 17%, 57,000 bbls while Gambrinus up 6.3%, 25,000 bbls.

2003 kicked off with yet more good news about moderate beer drinking.  Israeli researchers found men with coronary artery disease who drank a beer a day for a month had “positive changes in blood chemicals…associated with decreased heart attack risk,” compared to men who drank mineral water.  Drinkers had higher levels of good cholesterol and antioxidants, but lower levels of bad cholesterol.  These researchers also found a new benefit to moderation: “a decrease in levels and activity of fibrinogens,” which makes clotting less likely.   New good news followed on heels of lengthy NY Times story on New Year’s Eve that noted: “A drink or two a day…is , experts say, often the single best nonprescription way to prevent heart attacks.”  Quoted long-time alc bev researcher Dr. Curtis Ellison that “the science supporting the protective role of alcohol is indisputable. No one questions it anymore.” 

Late entries Stoli Citrona and Sauza Diablo lingered too long on shelves without sellin’. While brands survive (barely), Miller will pull all that excess inventory from mkt at cost of $10-12 mil, spokesperson told Mil Jnl Sentinel. Unlike Diageo, suppliers will reportedly absorb all of cost, but unclear how cost will be split between SABMiller and Allied Domecq. SABMiller told Fin Times that expense shared under joint venture agreement, but Allied maintained inventory mgt is Miller’s responsibility. Hmmm. Those must be some interesting discussions. Meanwhile, Miller sez brand remains natl, but will only get regional mktg support.