No Tie-Up

This is an interesting development in the wine and spirits industry, as we may be seeing a bit of turnaround in how large organizations view merging. My belief is that smaller companies have a lot of positives right now, and this could have made things very tough on both the retailer and supplier had it happened.


Southern Wine & Spirits and Glazer's Terminate Strategic Talks
Tuesday, 22 September 2009
MIAMI — Southern Wine & Spirits of America, Inc. and Glazer's Distributors have terminated their discussion for a strategic collaboration. Glazer's Chairman & Chief Executive Officer Bennett Glazer said, "Following more than a year of wide-ranging planning efforts with Southern Wine & Spirits, we have made the decision that it is in our company's long-term best interests to end these meetings and discussions. Since August 2008, we have explored numerous options and concepts about how best to forge an association with Southern to generate enhanced value for both companies. However, our decision today has been driven by the sheer complexity of the transaction." Glazer added, "We value our personal relationships with the Chaplin Family, hold their management team in high esteem and wish them well in their future endeavors." Southern Wine & Spirits Chairman & Chief Executive Officer Harvey R. Chaplin added, "Today's decision was a very difficult one. We continue to hold the Glazer's Family -- and all that their company has accomplished over the last 100 years -- in high regard." Glazer's President Jerry Cargill said, "Today's announcement in no way impacts Glazer's long-term strategy of being recognized as the industry leader in the distributor tier for brand building and customer service. Glazer's will continue to proactively pursue its blueprint for sustained expansion and growth. We look forward to energizing and growing our relationships with both our suppliers and our customers, and we will continue building on the Glazer's teams' best-in-class capabilities." Southern Wine & Spirits President & Chief Operating Officer Wayne E. Chaplin said, "While today's announcement is a disappointment to us all, Southern will continue to seek opportunities to grow and expand our business as we strive to exceed our trading partners' expectations. We remain committed to providing unsurpassed brand-building, sales and service value to both suppliers and customers alike across our industry-leading 29-state footprint."

iPhone even helps with wine

A Sommelier In Your Pocket
Thursday, 10 September 2009
Shopping for wine is a lot like parenting a teenager. You feel stupid when you're in the middle of it, and when you finally emerge, you're desperately ready for a drink.There is, alas, no app for raising teens. But mobile software developers have begun targeting oenophiles, and in so doing, they have established one of the more useful categories of wireless apps.Appropriately enough, choosing the right app can be puzzling and tedious. Some of the refined entries in the current vintage include Cor.kz ($4), Wine Enthusiast ($5), Nat Decants ($3) and Pair It! ($3). I'd give them a rating of 87, with an asterisk. They're fairly good now, and they should age nicely.Before digging into the details, though, consider the overall value of these services for a moment. Let's say you're at your favorite wine shop with about 15 free minutes, and you want a bottle that will make your dinner guests coo, without maxing out your credit card.The shop owner is helping someone near the Mouton Rothschilds, and the other employees are 23-year-olds with extensive beer-stocking skills. Rather than choosing a random bottle or asking the beer guys, you can now just reach for the sommelier in your cellphone.From there you have a couple of options. Some apps, like Wine Enthusiast, let you find the most highly rated wines at specific price levels, so you can quickly browse the store -- or, if you're in a restaurant, the wine list -- for matches.If you have Cor.kz or, to a lesser extent, Nat Decants, you can reverse the process, and look through the wine list or shelves until you find a promising label. Then it's a matter of doing a quick check on its rating. This approach has limits, simply because it takes too long to type in, say, "2004 Hochheimer Koenigin Victoria Berg Riesling Trockenbeerenauslese," to say nothing of the likelihood of a typo or the time it might take to click through the ratings and then move onto another bottle.Smartphone mavens are already wondering why you can't just use the phone's camera to scan the bottle's bar code and have the app display the wine's rating. In the coming weeks, you'll be able to get fairly close to that bit of grape-soaked geekery, thanks to a new feature from Cor.kz.But first, more about the core features of this app, already on the iPhone and soon available to BlackBerry users and owners of Android devices like T-Mobile's MyTouch 3G.Cor.kz stands on the shoulders of an Internet giant, CellarTracker.com, which houses more than one million reviews by roughly 85,000 wine aficionados. Cor.kz can also help users manage their wine cellar inventory, but it is perhaps best used by those who just want to buy more intelligently.Type in the name of the wine you are considering -- Del Dotto, say -- and Cor.kz retrieves everything in CellarTracker's database about the wine. This can be a blessing and a curse. Wines from Del Dotto, a small but much-beloved vintner in Napa Valley, yield 581 tasting notes. If you type something more specific into your iPhone, like "2005 Del Dotto Cabernet," Cor.kz returns 95 matches.Some of these results include a numerical rating. To save yourself wasted clicks, choose those listings. The rating represents the average from CellarTracker's reviewers, and those entries will also include detailed reviews and retail prices.The bar-code scanning feature, cool as it sounds, will have handicaps. Wine makers often use the same bar code for every vintage, and some makers allow distributors to paste different bar codes on the bottles. Still, with this method, users should at least be able to retrieve a short list of bottles from which to choose.The Wine Enthusiast Guide is simpler to navigate than Cor.kz, but it is much less comprehensive, with 73,000 wine reviews in the database. Del Dotto, as well as other wines like Educated Guess from Roots Run Deep Winery, are two examples of wines that the app overlooked.To be fair, though, the Wine Enthusiast reviews cover many of the most widely sold wines, as well as a fair selection of lesser-known vintners. When you type the name of a wine, the search results are nicely arrayed, with the maker's various wines listed on the first page. Click through to a specific type of wine -- like, say, the Lancaster Estates Cabernet Sauvignon -- and the app offers a review and a rating for specific vintages.It is available for iPhone only, and several users on the Wine Enthusiast Web forums have complained that they cannot connect outside the United States. They were told that Wine Enthusiast was looking into the issue.The app offers users the ability to select specific criteria -- like price, rating and varietal -- and browse a list of wines that qualify.That feature is at the core of another app, Nat Decants, available for iPhone, BlackBerry and Android. But this app belongs in a different subset of wine-related software -- those that help users pair wine with food.Nat Decants is the creation of Natalie MacLean, a wine journalist and registered sommelier, and includes much of the information available on her Web site, Nat Decants (at NatalieMacLean.com). To use it, select from a drop-down menu of either food or wine, and the software offers you suitable options.It only goes so far, in that you are given, for instance, 18 wine varieties that go well with lobster. If you want to drill down and read reviews on specific wines, you must click through to Ms. MacLean's Web site and purchase a monthly subscription for about $2. She said she hoped to integrate her reviews into the app, but in the meantime, users who have a poor cellular connection will find this additional step a source of frustration.To get pairing suggestions from the kitchen instead of the bar, consider Pair It! (for iPhone only), created by Bruce Riezenman, a chef based in Sonoma County, California. Compared to Ms. MacLean, Mr. Riezenman offers more context around his suggestions, helping you refine your own choices.I was initially surprised that, of the services I tested, none suggested the best wine to pair with a specific occasion -- like, say, reaching the end of school vacation. But maybe that would be silly; the best choice for that, clearly, is the first bottle you can get your hands on.(C) 2009 International Herald Tribune. via ProQuest Information and Learning Company; All Rights Reserved

Defeating urban myths

Study Indicates Regular Drinkers Exercise More Than Teetotalers
Wednesday, 02 September 2009
Regular drinkers are likely to do more than tone their biceps with 12-ounce beer can curls, according to a new study.Those who imbibe - regardless of how much - get more exercise than teetotalers, researchers reported in the current issue of the American Journal of Health Promotion.Surprisingly, the effect was strongest with heavier drinkers, who "were more likely to exercise than light drinkers and exercised for more minutes," said lead researcher Michael French, a professor of health economics at the University of Miami.Though it seems counterintuitive, there are several plausible explanations, said French, who studies the consequences of addictive behavior. Some drinkers may use exercise to negate the calories from the alcohol. Others might have a thrill-seeking nature; those gunning for a runner's high may drink for a similar sensation. (The Chicago Hash House Harriers are "a drinking group with a running problem.") And soccer, softball and other team sports participants might hit a bar after a game.Still, while the researchers found a strong statistical relationship between alcohol and exercise, you can't jump start an exercise program by pounding down more beers, said French, adding that the effects of heavy drinking don't outweigh the benefits of exercise.Moreover, it's wise to consider the timing of the two activities. You might think you golf better after you've had a few, but French's team has yet to confirm it.(c) 2009, Chicago Tribune. Distributed by Mclatchy-Tribune News Service.

beer and anti-trust?

Comment: Beer price rises will test Obama's tolerance
27 August 2009 Source: breakingviews.com
Both Anheuser-Busch InBev - purveyor of the president's favorite tipple - Bud Light - and MillerCoors are raising prices at the same time, during a recession and while beer demand is slumping. With an 80% market share between them, it almost begs for an anti-trust review of the industry.
While the increases are not unusual or unexpected, they still raise a red flag. Both companies typically re-adjust the price tag on a six-pack every year to reflect changes in the costs of, say, barley or hops. But the ability of the two big brewing groups to do so now, while their customers are hurting most, highlights the tremendous pricing power that has accompanied consolidation in the industry.
While Anheuser-Busch, acquired last year by Belgium's InBev, has long held a dominant share of the US market, the number of big players in the industry has steadily decreased over the years. From 1947 to 1995 the number of beer companies fell by over 90%. Though a surge in craft brewers followed, few of them competed directly with mass-market suds like Budweiser and Miller.
That was ok so long as the big three - Anheuser, Miller and Coors - were at each other's throats. And boy, were they. After South African Breweries bought Miller in 2002 it set out to nab market share from Bud. Its bigger rival responded by slashing prices, which the others were then forced to match. This competition fostered a better outcome for consumers - indeed, the summer of 2005 was a beer drinkers' dream.
That's all changed. Miller and Coors kicked off a joint-venture last year that combines the market powers of the second and third largest players. InBev, meantime, has no stomach for a price war following its $52bn debt-financed splurge on Anheuser. So despite slumping appetite for beer and tough times, prices are going up.
The Obama administration is taking a tougher line on monopolistic behaviour. Department of Justice anti-trust head Christine Varney has even signalled a willingness to re-examine deals that were approved under the previous, more permissive, Bush administration.
Taking on Big Beer might be politically popular. Moreover, there's precedent for doing so. Fifty years ago, the DOJ sued to prevent the merger of Pabst, then the 10th largest brewer with the 18th biggest, Blatz. The case went to the Supreme Court, which in 1966 ruled the deal was anti-competitive and forced Pabst to divest Blatz.
That's not an outcome Molson Coors, SABMiller or AB InBev shareholders would toast with pleasure.
By Aliza Rosenbaum and Rob Cox
Breakingviews.com is the world's leading source of agenda-setting financial insight. Breakingviews.com has 22 correspondents and columnists based in London, New York, Hong Kong, Paris, Washington, San Francisco and Madrid. Its aim is to become the lingua franca for the global financial community.

Price Rise

Brewers Raising the Bar on Beer Prices
Thursday, 27 August 2009
ST. LOUIS—U.S. beer drinkers thirsty for lower prices are in for a disappointment, brewers say.Beer consumers will soon be socked by higher prices, as Anheuser-Busch InBev, the world's largest brewer and maker of Budweiser, and other producers around the world have announced price increases, CNNMoney.com reported Wednesday.In a statement, the U.S.-Belgian company said: "We plan on taking price increases on a majority of volume and in a majority of markets this fall. The increase helps cover some input costs," adding that prices will rise "across different price tiers," including its low-end brands.CNNMoney.com said MillerCoors, maker of Miller Lite, Coors Lite and Blue Moon, will also raise prices in certain markets."What is going to be a little bit out of the ordinary is that (prices) are going to be able to go up less than in a normal year because economic conditions are tighter," Benj Steinman, editor of industry trade publication Beer Marketer's Insights told the Web site.Anheuser-Busch InBev reported this month that total beer volumes were down 1.5 percent in the second quarter compared with the year-earlier period.Copyright 2009 by United Press International

Gluten free

Gluten-Free Beer Can Be Labeled As Such, FDA Says
Tuesday, 18 August 2009
When is a beer not a beer? When it's gluten-free.And as of Monday, the Alcohol and Tobacco Tax and Trade Bureau, which regulates the labeling of beer, wine and spirits, handed off regulation of said cold, sudsy brews to the Food and Drug Administration.That's good news for the nation's estimated 2 million sufferers of celiac disease, for whom consuming any kind of gluten can cause chronic diarrhea, arthritis, bone loss and a host of other symptoms. Their immune systems react to gluten, a protein found in wheat, rye and barley, which causes inflammation in their small intestine and interferes with the absorption of nutrients.Beers brewed the traditional way, with malted barley, contain gluten. But small craft brewers and then Anheuser-Busch began making beer from malted sorghum, an African grain, and sometimes rice. Both are gluten-free. That was great for celiacs but didn't fit in the Federal Alcohol Administration Act of 1935's definition of beer, which was a beverage brewed from malted barley and other grains.On Monday, the FDA issued new guidelines covering non-barley beers. To the benefit of the one in 133 Americans who can't eat anything containing gluten, the beverages can now be labeled gluten-free once they've been tested by the FDA."For the longest time, I couldn't put 'gluten-free' on the label, because there wasn't a definition" under previous regulations, says Russ Klisch, whose Lakefront Brewery in Milwaukee makes a popular sorghum beer, New Grist.Gluten-free beer makes up less than 0.1% of the beer market, says Paul Gatza of the Brewers Association in Boulder, Colo. The biggest players are Anheuser-Busch's Red Bridge, Klisch's Lakefront in Milwaukee and Bard's Tail of Norwalk, Conn., he says.Celiacs have been buying these gluten-free beers for years, says Elaine Monarch, executive director of the Celiac Disease Foundation in Studio City, Calif. But accurate labels will be nice, and the new FDA regulations may make it easier for European gluten-free beverages to enter the market, she says.Copyright 2009 USA TODAY, a division of Gannett Co. Inc.

On the way to zero

Anheuser-Busch Debuts 55-Calorie Beer

Wednesday, August 12, 2009

St.Louis - Anheuser-Busch announced the launch of Select 55, touted as the world's lightest beer, in select test markets throughout the US. Described by the brewer as a smooth, golden lager with 55 calories and 1.9g carbohydrates per each 12-ounce serving, Select 55 answers a growing demand among a segment of drinkers who are seeking lower-calorie alcohol beverages to complement their busy lifestyles.

Whether adult drinkers are looking for light refreshment after a busy day or if they simply enjoy delicious calorie-conscious foods and beverages, Select 55 offers an unparalleled clean, crisp flavor with fewer calories any other beer currently available, according to A-B.

"Select 55 is ideal for adults who want to enjoy beer without feeling guilty about the calories," said Pat McGauley, Vice President of Innovation, Anheuser-Busch, Inc. "Perfect for a variety of occasions, adults will enjoy Select 55 at a double-header baseball game, while grilling on a hot summer day or relaxing a home with friends."

Featuring a light, golden color, Select 55 is made with caramel malts and a blend of imported and domestic hopping. Brewed to complement the full flavor of Budweiser Select, Select 55 features a unique recipe that gives the beer its crisp finish with aroma notes of toasted malt and subtle hopping.

Select 55 is available in 15 markets across the country including: Tampa, Ft. Myers, Orlando (FL), Chicago, Peoria (IL), Louisville, Green Bay, Bloomington (IN), Cincinnati/Dayton, Des Moines (IA), San Diego, Dallas, Austin, Wichita Falls (TX) and Arizona.

Brewed at Anheuser-Busch's St. Louis brewery, Select 55 is available in 12-ounce, clear signature crown glass bottles in 6- and 12-packs, and 12-ounce aluminum cans in 12- and 18-packs.

Copyright (C) 2009 PRNewswire. All rights reserved.