
Beer Marketer's Insights
"Responsibility Must Be Part of Your Business Culture" Coors Vice President Urges Distributors
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Industry and states’ rights advocates now have more difficult legislative battles ahead as Congress passed the mandate that states adopt .08 BAC levels or lose highway funds beginning in 2004. Under the bill that passed, states that don’t adopt .08 BAC limits won’t lose as much as they would have under the original proposal (2% in the first year, graduating to 8% in the 4th year, instead of 5% graduating to 20%), but it’s still a lot of money for states to forgo. The mandate comes at a time when most state .08 proposals are being defeated. AB recently reported that while 2 states passed .08 bills since the federal government offered incentives to pass such bills in 1998, 25 other states rejected .08. (Six states have bills pending.) What’s next? Rick Berman, president of the American Beverage Institute (which represents large chain retailers), told INSIGHTS there may be an attempt to reverse the mandate over the next few years before the states must act. NBWA vice president Craig Purser indicated states will be "encouraged" to tie any .08 proposals to the loss of funds so they do not take effect until 2004. Meanwhile, brewers will continue to focus attention on hard-core drunk drivers. AB president Pat Stokes told a meeting of northwest distributors recently that as .08 "moves back to the state level, it’s important that we continue to support proactive legislation that effectively targets the hard-core drinking driver who causes most of the drunk driving problems¼ . It’s time for legislators to focus on measures that effectively target this group and it’s time for our industry to uniformly support such measures." Will activists follow the industry’s lead? Berman suggested otherwise: "Now that the federal threshold is .08, activists who have been seeking .08 have the opportunity to seek .05. We have seen a significant pick-up in that area."
Academics Debate "Social Norms"
As a result of the growing acceptance of the social norms approach, academics and public health activists who prefer to focus on "binge drinking" and/or advance broad restrictive policies have responded with predictable criticisms. Indeed, in its front-page story about social norms, the NY Times reported that a "bitter debate about the difference between heavy drinking and youthful experimentation" has erupted. The Times, while noting "marked declines" in heavy drinking on some campuses that have adopted social norms, gave equal space to Harvard
USA Today, The New York Times and a handful of other newspapers recently featured stories about "social norms," a rational approach to campus drinking adopted by a handful of colleges about a decade ago. These programs educate students that contrary to popular belief, the majority of their peers do not drink heavily. When students understand this, the theory goes, they then drink to the more "moderate" norm. Evaluations from a number of campuses have reported declines in heavy drinking when these programs have been adopted in place of more typical scare campaigns about widespread, so-called "binge" drinking. Meanwhile, AB has just launched a national program that follows the social norms approach. Together with the National Association of State Universities and Land-Grant Colleges, AB rolled out an ad campaign at 210 colleges and asked its wholesalers to distribute the material to all colleges in their territories. Ads and posters provide information about college drinking in a context of "True or False?" trivia-type statements, and address "the misperception of some students who think they need to drink heavily to fit in." Included in the information: nearly 2/3 of college students consume less than 1 drink per day, and the statements: "College students are making responsible choices about drinking. Thanks for making intelligent choices about the norm."
The usual suspects cleaned up for 4 weeks around Jul 4th in supers, according to IRI. AB $$ sales up 5.4% for 4 weeks thru Jul 13. Gained 1.2 share of $$ to 41.7. Heineken and Modelo each gained 0.3 share of $$ with 13% and 6% gains respectively. Modelo at nearly 8 share of $$ nationally in supers for 4 weeks over Jul 4th. Miller share losses accelerated. Dropped 1.5 share to 17.7 for 4 weeks as $$ down 5.5%. Coors $$ stayed even, but it lost 0.2 share in period. Pabst $$ fell 5% and its share declined to 2.6 in period. That's less than 1/3 of Modelo.
Initial results of statewide efforts to reduce student alcohol abuse at the California State University
system (23 campuses, over 400,000 students) indicate some notable early successes in CSU
Several recent developments suggest a ratcheting up of fed meddling in alc bev biz. First: in handful of ongoing US District and Appeals Ct cases about direct shipments of wine to consumers some fed judges give short shrift, if any, to uniqueness of alc bevs. That includes tuff Tex decision we reported last issue that opened Tex to direct sales. Second: early-Jul Fed Trade Commission (FTC) staff report heartily endorsed direct shipments. Touted benefits of convenience, increased choice, lower consumer prices. Pooh-poohed arguments that direct sales attract underage buyers and make it hard to collect tax. FTC staff didn
Tex Light Beer Battleground: Bud Light 30 Share, Miller Lite Off 15%, Coors Light Down 8%
In Tex, by far the biggest beer light mkt and 2d biggest beer state overall, all light beers have over 60 share and still growing. Wow! Some shocking shipment and share shifts in Tex thru mid 03. Bud Light still flying. Up 192,000 bbls, 9% thru May; Gained 3 full share to 29.6. But Miller Lite fell 148,000 bbls, 15% and Coors Light fell 60,000 bbls, 8% for 5 mos. That
In blockbuster deal, Lewis family, owners of Foothill Bev and Antelope Valley Dist, 2 AB distribs in Southern Calif totaling about 9.5 mil cases, agreed to sell to AB. Deal expected to close in Sep. That gives AB 7 branch locations in S. Calif totaling over 37 mil cases (over 2.5 mil bbls). That
Dennis Nauslar, ex-owner of Willow Dist in Tex who sued Coors for nixing a 2001 deal that was richer than what Willow subsequently sold for, "does not have standing to assert these claims," Coors argues. Therefore, Dennis