HOT TRUB

February 28, 2001

Edited by: Peter LaFrance (peter.lafrance@beerbasics.com)


Presented by: American Brewer
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Vol. 2 No. 9
This news letter will post items of special interest to brewers, members of the brewing and distilling community, and members of the media that cover the beverage alcohol business.
Should you wish to contribute in any way to this venture please contact Peter LaFrance at peter.lafrance@beerbasics.com
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Heineken 2000 bottom line up 20 pct

Reuters reports this morning from Amsterdam that Heineken NV reporting a 20 percent rise in net profit in 2000 and predicted more earnings growth this year. Net profit climbed to $574.5 million from 1999's $516 million with operating profit up 15.3 percent.

 

Much of the growth was due to the acquisitions of Spanish brewer Cruzcampo, Slovakian Gemer and Martiner and Aflligem in Belgium.

 

The Group's total beer volume, including that of the two affiliated companies in Latin America, rose to 97.9 million hectoliters. Sales of the Heineken brand worldwide rose by 5.9% to a volume of 21.6 million hectoliters. In the United States, sales volume of Heineken beer increased by 15% and those of Amstel by 13%.

 

Heineken executives say they expects a further increase in net profit for 2001 and remains positive with regard to the long-term profit outlook. The company also announced plans for a five-for-four share split.

 

A Jug of Wine a Loaf of Bread and Thou ... now possible in Minnesota

A "Wine With Dinner" legislation was introduced on February 27th in the Minnesota State legislature. Senate bill number SF 1107; and House bill HF 1205 are sponsored by Sen. Linda Scheid (DFL-Brooklyn Park) and Rep. Barbara Sykora (R-Excelsior). The bills will change existing law to allow wine sales at grocery stores.  Grocery stores will have to follow the same laws regulating the sale of wine as liquor stores.  Regular beer, liquor and fortified (high alcohol) wine are not allowed under this bill.

"This bill is long overdue," said Sen. Scheid.  "Shoppers in 33 other states can make one stop and buy their dinner items and a bottle of wine. This bill will meet consumer demand and provide for the responsible sale of wine in grocery stores."

"In addition to the convenience and efficiency of one-stop shopping, wine in grocery stores will also add market competition to wine sales," said Rep. Sykora.  "In many cities there remains an outdated government monopoly on the sale of wine -- a consumer item people buy every day.  I believe that more competition and more choice will be good for consumers."

A Sign of Things to Come?

BevAccess Consolidates Wine & Spirits Distribution in 17 Major Markets

Recently, BevAccess announced an agreement with beverage alcohol wholesalers Charmer-Sunbelt Group, Glazer's Wholesale Distributors, Young's Market Company and the Romano Brothers Beverage Company.  According to industry sources these wholesalers collectively represent 20% of the U.S. wine and spirits industry and manage operations in 17 markets (New York, Texas, California, Florida, Illinois, South Carolina, Arizona, Washington DC, Hawaii, Connecticut, Louisiana, Indiana, Arkansas, Maryland, Ohio, Missouri, Iowa).  

"This is a great opportunity for us to establish our commitment to deliver an open and neutral exchange for the beverage industry," said Mark Sanders, CEO of BevAccess.  "We will continue to invite the nation's wholesalers to participate in the BevAccess exchange to develop superior communications, e-commerce and technology services."

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