Industry Issues

September 1, 2005
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‘Slam’ Dunk for CCE, Bravo!
Coca-Cola Enterprises, Atlanta, and Bravo! Foods International Corp., North Palm Beach, Fla., have signed an exclusive 10-year distribution agreement for CCE to distribute Bravo!’s Slim Slammers, Pro-Slammers, 3-Musketeers Slammers, Starburst Slammers and Milky Way Slammers nationwide. The agreement will cover convenience retail, education channels, vending and small independent stores.
The companies dropped discussions about CCE acquiring a majority stake of Bravo!, but part of the distribution deal includes 30 million warrants that have been granted to CCE that, if exercised within three years, would give the bottler a minority share of the company. BI
Cott buys U.K. business
Cott Corp., Toronto, has acquired Macaw Soft Drinks in the United Kingdom for approximately $135 million (U.S.). Macaw is the largest privately owned manufacturer of private label carbonated soft drinks in the United Kingdom. It has six production lines — four carbonated soft drink, one dilute-to-taste, and one aseptic — in two manufacturing plants.
Cott says the acquisition significantly expands its U.K. business and expect the purchase to add approximately $100 million in annual sales.
“The purchase of Macaw represents a significant strategic investment in our U.K. business,” said John Sheppard, president and chief executive officer at Cott Corp. “The additional production capacity and Macaw’s manufacturing capability in the fast-growing aseptic beverage segment will allow us to expand the variety of products and packages we offer and enhance the service we provide to our customers.” BI
Russia investigates PepsiCo
Allegations have been made against PepsiCo in Russia that accuse the soft drink company of forbidding retailers to carry competitors’ products, according to newspaper reports. Russian officials conducted a similar investigation of Coca-Cola earlier in the year, but said the company had brought operations into compliance. BI
Sierra Nevada goes Ultra-Clean
California Governor Arnold Schwarzenegger recently joined Sierra Nevada Brewing Co., Chico, Calif., and officials from three participating companies to dedicate a 1-megawatt fuel cell power plant that is the largest commercial high-temperature fuel cell installation in the state and is classified as an Ultra-Clean technology under California law.
“Like any business, Sierra Nevada was looking for stable, affordable, reliable power, and they wanted to limit the environmental impact of their operation,” said Schwarzenegger at the event. “They found the answer in a hydrogen fuel cell that generates power on site.”
Designed to create energy without combustion, the power plant consists of four 250-kilowatt Direct FuelCell power plants from FuelCell Energy Inc. Its waste heat will be harvested in the form of steam and used for the brewing process as well as other heating needs. One megawatt of electricity will supply 100 percent of the brewery’s base load power requirements, allowing it to not only lower its overall energy costs but also eliminate air pollutant emissions. When the fuel cells generate more power than the brewery requires, Sierra Nevada will send excess electricity back to the grid system and receive credit for a portion of its generation costs. BI
Grey Goose creates entertainment
Grey Goose Entertainment, the newly created show-biz division of Grey Goose Vodka, announced its venture with the Sundance Channel, an original, hour-long television series called “Iconoclasts,” will premier Nov. 17. Created in conjunction with Conde Nast Media Group, each episode of the program will feature two innovators from different fields who will discuss their passions and creative processes. Participants will include chef Mario Batali on musician Michael Stipe, fashion designer Tom Ford on artist Jeff Koons, actor Samuel L. Jackson on basketball player Bill Russell, and producer Brian Grazer on Viacom Chairman and Chief Executive Officer Sumner Redstone. BI
Drinks purchases premium wine distributor
Drinks Americas, Wilton, Conn., signed a letter of intent to acquire an interest in Dancing Bear Cellars LLC and its affiliated import company, Liquid Assets Group LLC. Dancing Bear Cellars imports, distributes and bottles fine wines from California, Italy and other regions from its offices in Florence, New York and San Francisco.
Eric Munson, founder and managing member of Dancing Bear Cellars, will be joining Drinks Americas in a senior management capacity as head of a new division to be called Drinks International Wines. "Our quality products and distribution network are an excellent fit with the global brands of Drinks Americas," Munson said. "Our shared strategic vision results in a dynamic organization focused on providing our customers the best quality and value products in the marketplace.” BI
go figure
1.8
Million jobs provided by the U.S. beer industry, according to the National Beer Wholesalers Association. Its Economic Impact Study estimates the industry contributes $162 billion to the U.S. economy, with more than $54 billion in annual wages.
5
Percent increase in alcohol sales in the United Kingdom, led by wine, between 1999 and 2004, according to Mintel’s “Drinking Habits in Europe.” During the same period, alcohol sales dropped 6 percent in France, and 8 percent in Germany.
6.8
Billions of dollars in U.S. tea sales, fueled by exotic tea blends, according to the Packaged Facts report “The U.S. Market for Tea and Ready-to-Drink Tea.” The report predicts the market will reach $10 billion by 2010.
20
The number of products introduced by Coca-Cola Mexico in one day last month, doubling the size of its portfolio. The new products are part of three lines, Ciel Dasani, Minute Maid and Spacio Leve.
38
Number of states that have proposed bills on school nutrition, including limits or bans on soft drinks. Fourteen of those bills have passed, according to the National Conference on State Legislatures, and reported by the Atlanta Journal Constitution.
49
Percent of Americans 18 and older who drink some type of coffee beverage each day, according to the National Coffee Association and reported by MSNBC.com. The cafe segment of the specialty coffee market reached $8.47 billion in 2003.

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