Big brewers find price war seems to have no end

Article Abstract:

What started as a summer discounting tradition in the beer industry has turned into a permanent strategy among some companies such as Anheuser-Busch Cos. and Miller Brewing Co. However, such strategies have led to a protracted price war that has forced most beer manufacturers in the industry to reduce their prices or risk losing percentage points of market share. Other makers such as Stroh Brewery Co. and Coors Brewing Co. have opted to stay out of the price war in order to keep profitability high, even at the expense of some market share. The trend threatens to cheapen the value of heavily advertised brands, which can prompt some drinkers to "trade up" to a higher-priced beer. This can be seen in higher sales for such brands as Cornona and Heineken.

Comment:

Discounting is now a full-time strategy for some brewers, but is beginning to cut into profits or market share

Miller Brewing Co.

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Anheuser-Busch, paying $556 million, raises stake in brewer Grupo Modelo

Article Abstract:

Anheuser-Busch Companies Inc is boosting its stake in Grupo Modelo to 50.2% by acquiring 13.2% for $556 million, a figure decided upon by an international arbitration panel. The falling Mexican peso is thought to have helped Anheuser-Busch conclude the deal, which some analysts had valued at $900 million. Modelo has 55% of the rapidly growing, 39 million barrel Mexican market, which is the world's seventh largest. Modelo will continue to be controlled by its founding Fernandez family, and will retain the same US distributor for its Corona Extra brand.

Comment:

Pays $556 million to raise its stake in Grupo Modelo from 37% to 50.2%

Asset sales & divestitures, Acquisitions & mergers, Mexico, Grupo Modelo S.A. de C.V.

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Distillers consider health-benefit labels

Article Abstract:

Some, but not all, liquor companies are considering applying for the same labels regarding possible health benefits that winemakers were awarded by the ATF. Those that do apply for and win the right to use the labels can probably expect a lot of resistance, though. Seagrams, for one, with its other interests in film, music and theme parks, isn't showing any interest in promoting booze as a health benefit.

Distilled and blended liquors, Liquor, Distilleries, Legal/Government Regulation, Consumer Attitudes, Marketing, Investigations, Abstract, Alcoholic beverages, Liquor industry, United States. Bureau of Alcohol, Tobacco and Firearms

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