Subj: HOT TRUB TEST
Date: 10/31/00 4:56:20 PM Eastern Standard Time
From: PLFROG
To: PLFROG

HOT TRUB
November 1, 2000

Edited by: Peter LaFrance (plfrog@aol.com)

Presented by: American Brewer


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Vol.1 No.2
Greetings,
This is the second posting of a news-alert e-mail service provided by American Brewer.
This newsletter will post items of special interest to brewers, members of the brewing and distilling community, and members of the media that covers the beverage alcohol business.
These postings follow-up the press releases distributed by services and discovers the story-behind-the story. Should you wish to contribute in any way to this venture please contact Peter LaFrance at plfrog@aol.com
If you wish to be dropped from this list please respond to this posting to plfrog@aol.com and include the word remove in the Subject: line.

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Brewery Alliances Forming up
in Battle of the Industry Survivors
Coors to Move Molson Brands in US

On October 26 it was reported that Molson Breweries announced that it would form an unnamed joint venture with Adolph Coors Co.'s Coors Brewing Co. to import and distribute Molson brands in the United States. That announcement came two weeks after Molson cut a $133 million deal with Philip Morris Cos. Inc.'s Miller Brewing Co. and Foster's Brewing Group to buy back all of its brands in the United States.
Under the proposed agreement, the joint venture will obtain the exclusive rights to Molson brands currently sold in the U.S. including Molson Canadian, Molson Golden and Molson Ice, as well as future Molson brands that may be developed for export to U.S. markets.
All products will be brewed and packaged by Molson in Canada for import by the joint venture to the U.S. market. Coors will pay Molson approximately $65 million and will have a 49.9 percent interest in the joint venture. The brewing and packaging arrangement would give Coors access to some of Molson's available production capacity in Canada to meet some of the growing U.S. demand for Keystone Light. The Molson capacity available to Coors under this agreement is expected to reach an annual contract-brewing rate of up to 700,000 barrels over the next few years.
Coors Brewing Company announced that the deal is "…a natural fit with our strategy of focusing on high-growth, high-margin segments and selectively pursuing strategic partnerships."
According to recent reports, Molson claimed that its market share declined 0.2 points to 44.8 percent in the quarter "reflecting the strategic decision to walk away from unsupported brands and unprofitable draft beer."


Interbrew announces 25% float in record-breaking IPO

BRUSSELS, Oct 20 (Reuters) - Belgium's Interbrew, the second biggest brewer in the world, said on Friday it would float at least a quarter of the company in December, raising the prospect of the biggest share issue in the country's history
Interbrew spokesman Corneel Maes said Interbrew had called an extraordinary shareholders meeting for a two-month mandatory lock-up of the 165 million shares. It said the lock up would come into effect on the first day of trading of the stock. This two month mandatory lock-up...will be followed by a contractual lock-up of a majority of the same shares for an additional period of four months it added. Maes said the number of existing shares would double once shareholders approve a two-for-one stock split at their annual meeting on October 31.
Analysts had expected the brewer, which first announced plans to go public last April, to float between 10-25 percent of its capital. said the float would include an undetermined number of new shares. Interbrew's share capital currently consists of roughly 165 million shares spread among three families that control the brewer.
U.S. investment bank Merrill Lynch & Co. and Belgian-Dutch financial services group Fortis are the global coordinators of the offering. Lehman Brothers and Schroder Salomon Smith Barney are the senior co-lead managers, while Lazard Freres is financial advisor.
Interbrew became the second biggest brewer in the world behind Anheuser-Busch of the United States after buying Bass Brewing and Whitbread Plc's beer business earlier this year. Last year Interbrew earned 230.3 million euros on sales of 3.24 billion euros, prior to the acquisitions.

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