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Beverage Industry Insider - June 10, 2008

June 10, 2008

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MillerCoors gets the go-ahead

SABMiller plc and Molson Coors Brewing Co. got the nod from the U.S. Department of Justice’s Antitrust Division and are free to proceed with the merger of their U.S. and Puerto Rico operations. The companies expect the transaction to close at the end of this month.

Leo Kiely, chief executive officer of Molson Coors, said: “While we recognize that regulatory clearance is just one step in creating a dynamic U.S. competitor, it is a critical milestone, and we’re obviously very happy about the outcome. We’re actively engaged in the various planning elements and are ready to get out of the gate smoothly and quickly upon close.”

Yesterday, Miller and Coors announced the leadership team that will head the newly combined brewing company. Kiely will be chief executive of MillerCoors, and Tom Long, chief executive officer of Miller Brewing Co., will serve as president and chief commercial officer of the new company. Tim Wolf, chief financial officer of Molson Coors, will become chief integration officer, and Gavin Hattersley, senior vice president of finance at Miller, will be the chief financial officer of MillerCoors.

In addition, Tom Cardella has been named eastern division president; Ed McBrien, western division president; Andy England, chief marketing officer; Dennis Puffer, chief operations officer; Karen Ripley, chief legal officer; Jeanine Wasielewski, head of information technology; Cornell Boggs, chief responsibility and ethics officer; Steve Woodward, chief human resources officer; Chris Kozina, chief of staff; and Nehl Horton, chief communications and government affairs officer.

“As we continue to name the next levels of leadership, we will tap into the great talent at both Miller and Coors,” Kiely commented. “We have already begun planning the core elements of the integration process, including developing our corporate, sales and marketing structures so we will be able to hit the ground running on July 1st.”



McLean to serve on OTA board

Matt McLean, founder and chief executive officer of juice-maker Uncle Matt’s Organic, Clermont, Fla., has been selected to serve a one-year term as vice president of the Organic Trade Association. He also was re-elected as an OTA board member. The Organic Trade Association has more than 1,700 members, and was created to promote and protect the growth of organic trade.



Craft Beer Distributor of the Year nominations open

The National Beer Wholesalers Association (NBWA), Alexandria, Va., and the Brewers Association (BA), Boulder, Colo., announced nominations are open for the 2nd Annual Craft Beer Distributor of the Year award. The award recognizes an American beer distributor who actively markets, sells and promotes craft beer, and will be presented Oct. 11 at the Great American Beer Festival in Denver.

Beer distributors and craft brewers can nominate the wholesaler they believe is deserving of the award at NBWA’s Web site. Nominations will be accepted until Sept. 1.

“Without America’s beer distributors, we wouldn’t be seeing the enthusiasm for the wide array of flavor and diversity of American beer," Brewers Association President Charlie Papazian said in a statement. “This award recognizes the extra efforts distributors are making on behalf of craft beer.”



Higher prices drive private label growth

Private label products are experiencing rapid growth, but it is driven by rising commodity and food prices, not a result of consumers turning away from national brands, The Nielsen Co. announced at its Consumer 360 Conference in Phoenix last week. During the past year, private label sales of CPG products have grown nearly 9 percent to $50 billion in supermarket sales, or a 17.5 percent share of supermarket dollar sales, Nielsen says. In supermarkets, mass merchandise and drug stores combined, private label sales are up 9.1 percent to $77 billion.

Nielsen’s research finds, however, that while dollar sales of private label products are up, unit sales are down slightly, indicating that higher unit pricing is the main driver of growth.

“When private label dollar share started to spike, it appeared that shoppers were shifting to store brands in order to save money,” said Tom Pirovano, Nielsen’s director of industry insights. “That’s always been the conventional wisdom during economic downturns. Digging beyond the numbers, however, it’s clear that private label unit share is essentially flat. Higher prices in commodity categories like eggs, milk and cheese are driving private label dollars, not consumers deserting traditional brands.”

For a complete look at the results, visit Nielsen’s Web site.



Starbucks Doubleshot with energy

Starbucks Doubleshot with Energy

Starbucks introduced Doubleshot Energy + Coffee, a beverage containing coffee, B-vitamins, guarana and ginseng. The drink is available in three flavors: Mocha, Vanilla and Coffee. Each is packaged in a single-serve 15-ounce can. Four-packs and 12-packs will be available this fall. Find out more about the new Starbucks Doubleshot products.



VBlast

VBlast

New York Spring Water Inc. introduced VBlast, a bottled water with an innovative cap design. When the Infusions cap is twisted counterclockwise, liquid vitamins are released into the water. The liquid vitamins used in VBlast remain fresh for up to one year, the company says. The five flavors are: Multi-Vitamin, a combination of strawberry and kiwi; Health Twist, a grape flavor; Focus, with a green tea flavor; Power, a berry flavor; and Espirit, a citrus flavor. Read more about VBlast.



Campaign Cola

Jones Soda Candidate Cola

Jones Soda Co. introduced Campaign Cola, a line of drinks featuring Democratic presidential candidates Hillary Clinton and Barack Obama, and Republican candidate John McCain. Consumers can purchase the cola online and cast virtual votes for the nominees. Results of the “voting” are updated every 15 minutes. Find out more about Jones Soda.




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