August Domestic Tax Paids Show Month's Best Trends Since 2010

FILED SEPTEMBER 23, 2016

Dear Client:

Yesterday the Beer Institute reported that August domestic tax paids were up an estimated 3.3%. August 2016 removals were 16,172,000 barrels.

That's this year's best showing since the month of February, when domestic tax paids were up 4%. Every month thereafter has been flat to down: July was down almost 5%.

BUT IT'S ALL IN THE SELLING DAYS. July's dismal performance was explained away by the loss of two selling days, and the way July 4 fell. Adjusted on a selling day basis, BI economist Michael Uhrich said it actually would have been up low-single digits.

August, by contrast, gained two selling days this year. That helped this past month snag the month's best showing for domestic beer shipments growth since 2010. "Above normal" temps helped, too.
This set of data brings YTD domestic beer shipments to down 0.4%.

2016 BEER SHIPMENTS EXPECTED TO BE UP. Total beer shipments, including domestic and imported, are expected to increase 0.25% to 0.5% in 2016.

ABI LARGE FORMAT SALES CHIEF REPLACES MARCELO ABUD TO LEAD REGION 4

Earlier this month, we reported that Marcelo Abud would depart his regional VP post in the Midwest for Anheuser-Busch to serve as Business Unit President, Canada (Labatt).

A-B has just announced that, effective after the close of MegaBrew, Marcelo's replacement will be the former head of their large format sales channel, Chris Williams.

"As the Region 4 vice president, he will lead our area sales teams and work with you and our retailers to drive strategic initiatives," per internal memo.

Ari Kertesz, a recent hire from McKinsey "with more than 20 years of retail consulting experience and five years working specifically on Anheuser-Busch projects," will be the new VP of large format and retail business development.

MILLERCOORS BRINGS IN NEW AD AGENCY FOR HIGH LIFE; NEW MARKETING ON TAP FOR KEYSTONE LIGHT AS WELL

MillerCoors has appointed Philadelphia-based Quaker City Mercantile to "lead creative and digital strategy" for its economy brand Miller High Life, reports Ad Age.

NEW WORK WON'T DEBUT TILL NEXT YEAR. Quaker City takes over the reigns from Publicis Groupe's Leo Burnett, who came on in 2014 to lead the "I Am Rich" campaign. That campaign will continue to run for the duration of 2016, before new creative from Quaker City replaces it.

BACKGROUND ON QUAKER. Quaker City is not your typical ad agency. The brand consultancy firm, formerly known as Gyro Worldwide, gave birth to the Sailor Jerry rum brand 17 years ago and eventually sold it to liquor marketer William Grant & Sons in 2008. A year later, Quaker City purchased a stake in Narragansett Brewery and it's handled all the advertising for the New England brewer ever since.

Pressed on conflict concerns with Quaker City, Ashley said "One of the reasons we like them is their understanding of alcohol and consumers. We are not concerned about them working on other alcohols. We have a really clear agreement with them."

SWITCHING UP ITS APPROACH TO ECONOMY. The changeup comes as MillerCoors "overhauls its approach to economy brands," writes Ad Age.

MillerCoors' VP marketing for emerging and economy brands, Ashley Selman, touched on the overhaul with Ad Age: "We need to look at the whole gamut within economy," she said. To do that, MillerCoors has recently invested in "consumer research, including ethnography work," per report. "Part of economy is getting back to delivering value," she told the publication.

KEYSTONE GETTING HELP TOO. High Life isn't the only economy brand with new creative in the pipeline. MillerCoors also assigned San Francisco ad agency, Mekanism, to lead Keystone Light, "which had not been using a creative agency of late," per report. Recall, Redd's, Smith & Forge and the Henry's Hard Soda line were awarded to Mekanism late last year.

MORE LOCAL MARKETING. Under Mekanism's lead, Keystone Light will start to home in on local marketing, Ashley said. "We needed to go back and take a fresh look at some of the brand positioning," she told Ad Age. "This isn't about unveiling this enormous TV and big comprehensive communication plan." No word yet on when the new creative for Keystone will debut.

Until Monday, Harry

"I'm a mog: half man, half dog. I'm my own best friend!" - Barf from Spaceballs

---------- Sell Day Calendar ----------
Today's Sell Day: 17
Sell days this month: 22
Sell days this month last year: 22
This month ends on a: Fri.
This month last year ended on a: Wed.
YTD sell days Over/Under: +1


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