Is A-B “Running Out of Opportunities” Globally?

Rumors it may make a run for Russian brewer.

Might Anheuser-Busch make a run for the biggest Russian brewer?

Baltik Beverages Holding, the No. 1 Russian brewer, currently is jointly owned by Scottish & Newcastle and Carlsberg SA. But Carlsberg, which teamed up with Heineken NV in a bid for S & N, is poised to take over the whole entity.

But the Daily (London) Telegraph is reporting rumors that A-B might try to crash the party.

From the report:

Anheuser Busch, the US brewing monolith behind the Budweiser brand, has long coveted the Russian business and the coming weeks could present it with its last chance to get its hands on one of the world's fastest growing brewers.

Carlsberg looks set to take full control of BBH, the Russian joint venture, after Scottish & Newcastle accepted a £7.8bn joint takeover bid from the Danish brewer and Heineken last month. However, industry insiders believe there is a chance Anheuser could still crash the party.

The reason is that while A-B has a dominant market share in the United States, it has a limited presence in developing markets that will drive the growth of the global beer industry in years to come.

From the Telegraph story:

One insider at a European brewer said: "For Anheuser it is decision time because it has a problem. They have an historic opportunity with S&N or InBev because they are running out of opportunities. "

Speaking of Russia, SABMiller plc CEO Graham Mackay said the brewer is eyeing expanding its presence in Russia, through acquisition or organic growth.

The Telegraph story can be seen here.

The Financial Times' coverage of Mackay's comments on Russia can be seen here.

A-B-InBev Combo Rumors Heat Up

Could things get hostile?

The perennial rumors of a combination between Anheuser-Busch and InBev heated up this week.

A Belgian business magazine reported that the two were in talks that could lead to a merger.

From a Reuters report:

InBev, the world's second-largest beer producer by volume, and. Anheuser-Busch are in talks that could lead to a merger of the two, Belgian business magazine Trends said on Thursday.

The New York Times’ Deal Book blog, citing Breakingviews, suggested that now -- as opposed to last year when similar rumors surfaced -- InBev would hold the upper hand in a deal. That’s due to its higher market valuation and the superior performance of its stock.

Rumors of InBev-A-B Deal Surface – Again

A-B declines comment.

The Wall Street Journal on Friday reported that the long-rumored combination of InBev and Anheuser-Busch is once again on the table.

From the story:

“InBev and Anheuser already have held discussions, say people in the industry familiar with both brewers' thinking. Although reports of the talks surfaced as long as a year ago, they have become more serious, and a deal is possible this year, people in the industry say.”

The report came on the heels of A-B reporting fourth quarter earnings that missed Wall Street estimates. Equity income from A-B’s stake in Grupo Modelo, which long has buoyed A-B’s profits, declined during the quarter.

Scottish & Newcastle Agrees to Sale

Heineken would pick up U.S. operation.

After months of drama, Heineken NV and Carlsberg A/S are poised to take over Scottish & Newcastle.

Scottish & Newcastle, the brewer of Newcastle Brown Ale, McEwan’s and Strongbow cider, has agreed to a $15.3 all-cash offer, the companies announced Friday.

As noted by Conde Naste’s Portfolio, that price is 10 percent higher than Heineken and Carlsberg’s earlier – rebuffed – offer last fall.

Assuming the deal goes through, Heineken would take over S&N’s operations in the United States and the Americas and in other markets including the United Kingdom and India.

Carlsberg, meanwhile, would gain control of Baltic Beverages Holding and S&N’s French, Greek and Chinese operations.

A-B to Tap Russian Beer Market?

Reportedly in talks to help S&N buy Baltic Beverages Holding.

Is Anheuser-Busch poised to crack into the Russian beer market?

Anheuser-Busch and some private equity groups have met with Scottish & Newcastle to discuss a joint bid to take over Baltic Beverages Holding, the No. 1 Russian brewer, news reports over the weekend said.

BBH is a joint venture between Scottish & Newcastle and Carlsberg. But now that S&N is in the sights of a buyout bid by Carlsberg and Heineken, it is moving to take full control of BBH.

Getting a stake in BBH would enhance A-B’s international presence.

From the UK’s Daily Telegraph:

"S&N's plan would be to finance a bid for BBH by offering a 25 per cent stake to a minority partner.

"Anheuser-Busch has long coveted a place in the rapidly expanding Russian beer market and replacing Carlsberg in a new joint venture with S&N would offer it part ownership of the country's leading brewer."

The Telegraph story can be seen here.

Carlsberg, Heineken to Buy S&N?

Brewers in talks to make a run at brewer.

Carlsberg and Heineken are discussing forming a consortium to take out the U.K. brewer Scottish & Newcastle plc, the companies confirmed.

From a joint release:

"Carlsberg A/S and Heineken N.V. confirm that they are in discussions regarding the formation of a consortium to make an offer for the entire issued share capital of Scottish & Newcastle plc. An offer, if made, is likely to be in cash. It is currently intended that Carlsberg will ultimately acquire Scottish & Newcastle plc's interest in BBH, France and Greece and that Heineken will ultimately assume control of Scottish & Newcastle's business in the UK and other European markets."

S&N, however, calls the bid “unwelcome,” according to a report in Bloomberg. It said it’s ``confident in its future as an independent group'' and ``strongly urges shareholders to take no action.''

A British analyst quoted by Bloomberg says the deal is driven partly by Carlsberg’s desire to take control of BBH, its Russian venture with S&N.

From the Bloomberg report.

``Carlsberg is desperate to get its hands on BBH and control over the biggest-growth part of its business, which has been half-owned,'' said Bruce Davidson of Blue Oar Securities in London, who has a ``sell'' rating on Scottish & Newcastle. ``The driving force is the need to get into emerging markets.''

The Bloomberg report can be seen here.

The Carlsberg/Heineken release can be seen here.

InBev-A-B Merger Rumors Surface Again

InBev execs see a deal as destiny, Belgian report says.

InBev executives believe that an eventual merger with Anheuser-Busch “belonged to the nature of things,” according to a report in a Belgian business magazine.

From the Reuters report on the story, which appeared in the Belgian weekly Trends:

"Trends magazine said on Thursday that senior figures at Belgium's InBev believed a merger with Anheuser-Busch at some point 'belonged to the nature of things.'"

Recall in February that a Brazilian newspaper, citing an unnamed investment banker, said a merger had “big chances of happening one day.”

The Belgian report becomes the latest bit of speculation that outside parties are interested in acquiring the country’s biggest brewer. Hedge fund manager Eddie Lampert has been rumored to be interested in the company. Rumors about hedge fund manager William Ackoff’s interest surfaced this week.

The Reuters story can be seen here.

Beer Business Daily mentioned the report here (subscription required).

Bacardi Eyes Absolut

Rum maker’s CEO says vodka “would be a perfect fit.”

Bacardi Ltd, which shook up the spirits industry a few years ago by acquiring Grey Goose vodka for $2 billion, now has Absolut vodka in its sights.

Bacardi has informed the Swedish government that it wants to buy Vin & Spirit, the state-owned distiller of Absolut, the No. 1 imported vodka in the U.S.

From the Financial Times:

“V&S and Absolut especially would be a terrific fit for Bacardi,” (Bacardi CEO Andreas Gembler) told the Financial Times. “Of the few global brands that are really left to acquire, V&S – and in particular Absolut – obviously represents a jewel for a company like ours.”

The future of Vin & Spirit has been the subject of much speculation since last year, when pro-privatization conservatives came to power in the Swedish parliament.

Rumors swirled that Anheuser-Busch, which has made no secret it’s interested in spirits, might be a potential buyer. But A-B CEO August Busch IV has said the brewer will not go after Absolut.

Other contenders for Absolut include Pernod Ricard and Fortune Brands, which has a U.S. marketing joint venture with V&S.

Could Potential InBev-A-B Merger Get Hostile?

Speculation continues to swirl around rumored deal.

Might InBev, the world’s biggest brewer by volume, make a hostile run at Anheuser-Busch?

That was the speculation reported last week by Beer Marketer’s Insights Express -- which also noted such a scenario was difficult to imagine.

From the report:

Some sources even suggest possibility of an attempted hostile takeover.  It is wild and unprecedented to imagine such a scenario, but these days nothing seems out of the question. 

BMI also reported that late last week that A-B CEO August Busch IV sent a note to distributors and employees saying the media were “essentially passing on the rumor” reported in a Brazilian paper about merger talks. Busch said it was the company’s policy to not comment on rumors.

A Belgian newspaper added fuel to the speculation last week, according to a report in AFX News Service. From the story:

A source close to InBev's family shareholders told daily Le Soir today that the tie-up is 'written in the stars'.

The AFX story also quoted analysts from Rabo Securities saying a deal would make sense:

'From a strategic point of view, InBev and Anheuser-Busch have a good geographic fit and mainly complementary market positions,' the analysts said.

Go here for Beer Marketer's Insights.

The AFX story can be found at forbes.com.

InBusch?

Brazilian news report fuels speculation of InBev-A-B deal.

The longstanding rumor of a combination between Anheuser-Busch and InBev is getting hotter thanks to a Brazilian newspaper story.

Valor Economico reported that the two brewers -- which last fall reached a U.S. distribution deal for InBev’s European brands -- are in preliminary merger talks. The story was attributed to a source close to three of InBev’s directors, who previously managed AmBev.

From a Reuters story:

"Valor said at the end of 2006 InBev's market cap at $40.3 billion was higher than $37.7 billion for Anheuser."

It cited an unnamed source close to InBev's management as saying this number is important because it gives InBev "the possibility of negotiating a merger with Anheuser in better conditions."

Some analysts said a deal would make sense, given the ongoing consolidation in the global beer business and the lack of geographic overlap between the two brewers.

Matthew Jordan, analyst for Dresdner Kleinwort -- who gave the InBusch moniker to the potential new entity -- said “we had long considered the two companies to be obvious partners.”

He added: “Management might be shared initially but we would expect the Brazilian aggressive cost reduction culture to dominate within a year or two.”

Carlos Laboy, analyst for Bear Stearns, has previously argued that A-B is the “most viable candidate in any potential merger with InBev.” In a note he said:

"Our concern is whether the control-obsessed InBev controlling shareholders (former AmBev management) would be willing to be diluted in any major equity transaction."

Deutsche Banc analyst Marc Greenberg, meanwhile, said he did not assign a high degree of probability to the rumored deal.

Harry Schuhmacher, publisher of Beer Business Daily, said he was “mildly skeptical.” Read BBD here (subscription required).

The Reuters story can be seen here.

Constellation Buying Svedka vodka

Pays big price for hot brand.

Constellation Brands today announced it was buying the fast-growing Svedka vodka brand for $384 million.

The deal gives Constellation a solid entry in the vodka segment, the fastest-growing part of the spirits business. It also gives Constellation a bigger presence in the premium part of the market. And Svedka, owned by Guillaume Cuvelier and Belgium-based Alcofinance SA, has grown at a torrid rate: It moved 1.1 million cases in 2006, up 60 percent from 2005.

But as Morgan Stanley analyst Bill Pecoriello notes, while the deal “makes strategic sense” it comes with a price. The deal will be dilutive for three years.

Wrote Mark Swartzberg: “On its face, three years of EPS dilution is not value creation, but the Svedka brand is on a strong, multi-year trend of growth, and Constellation emphasized its intention to plow profits back into the brand for the sake of future growth.”

The deal underscores the fact that the cost of acquiring premium spirits brands -- following Bacardi Ltd.’s $2 billion acquisition of Grey Goose a few years back -- is steep. The upcoming sale of Absolut by Sweden’s Vin & Spirit could set another benchmark. Anheuser-Busch is rumored to have an interest in that brand.

UBS analyst Kaumil Gajrawala notes:

We believe the acquisition of Sweden-produced Svedka, makes it less likely at this stage that (Constellation) would also look to acquire Swedish-produced Absolut vodka.

Constellation markets a variety of wine and spirits brands and, with Grupo Modelo, is a participant in Crown Imports, which markets Corona Extra and other Modelo brands in the U.S.

The Constellation release can be seen here.

InBev Makes Move in Canada

Bids for Lakeport Brewing.

Seeking to expand its Canadian footprint, InBev has made a friendly offer worth $171 million to acquire Ontario’s Lakeport Brewing.

The offer by InBev, the parent of Canadian brewing giant Labatt, represents a 36 percent premium on Lakeport’s January 31 closing price.

Bloomberg has a story.

Lakeport competes in the value segment of the Canadian beer industry and has affected the pricing environment in Ontario. It commands about 10 percent share of Ontario’s beer market and 3.5 percent of national share, according to a note from Stifel Nicolaus analyst Mark Swartzberg.

Swartzberg and other analysts gave the deal a thumb’s up.

Bear Stearns analyst Carlos Laboy said the deal would “reintroduce order to the Ontario marketplace where Lakeport has been taking share with its value brands from the two market leaders.” He added that it’s not good news for the other big player in Canada, Molson Coors Brewing Company.

He wrote:

On the surface, seeing a discounter that was eating their lunch disappear may seem positive. But the fiscal advantages for Lakeport appeared threatened anyhow and instead of passively waiting for them to fade, Molson must now deal with a stronger Labatt.

Because of Labatt’s scale, the deal needs to receive approval from Canadian antitrust authorities.

Pernod Ricard Eyeing Expansion

Spirits marketer looking to buy new brands.

Pernod Ricard, the world’s second-biggest marketer of wine and spirits, wants to acquire tequila and vodka brands and strengthen its presence in the United States, it said on Tuesday.

Pernod, which surged to its position more than a year ago by (along with Fortune Brands) carving up Allied Domecq brands, wants to secure the rights to Stolichnaya, which it now markets, according to this report in Reuters.

Also in its sights: Absolut vodka, which is marketed by Sweden’s Vin & Spirit. The new conservative Swedish government has said it wants to sell off state owned companies, spurring speculation that V&S might go on the block.

Anheuser-Busch, which hasn’t been shy about its interest in spirits, has been cited as a potential bidder for V&S.

Tequila brands also are on Pernod’s shopping list. Pernod was reportedly in the hunt for Mexico’s Herradura, but Brown-Forman (maker of Jack Daniel’s) scooped up the tequila company.

The Reuters story quotes Pernod managing director Pierre Pringuet:

“There are very good reasons for further consolidation in the spirits business, because it is very profitable and has good synergies, but as most companies are private, timing is unpredictable…”

Pernod’s brand lineup includes Kahlua, Chivas Regal and Beefeater gin.

Future rules?

The brewers are laying the groundwork for future changes in the beer business.

Over the past week, Brew Blog has looked at how the rules of the beer game are changing.

Today it looks ahead to future rules.

The past few years have demonstrated that business plans that have delivered results for years can become obsolete overnight. And given changes in the consumer landscape, change will only come faster.

Here are seven dynamics that stand to shape the beer business in years to come.

Innovation In the past two years, Anheuser-Busch’s new product assembly line has been working overtime, throwing off more than three dozen new products ranging from Bud Select to a blueberry beer. Miller Brewing Company bought Sparks and struck a new product development alliance with McKenzie River Corp.

Diversification Anheuser-Busch has made no secret it is looking at extending into spirits. It already rolled out a liqueur brand, Jekyll & Hyde. Media reports speculated it might make a run for Absolut vodka if it goes on the market. Other suppliers may follow into non-beer products, including non-alcohol beverages.

Distributor evolution Expect distributors to branch beyond beer. Says Eric Levin, vice chairman of South Florida’s Gold Coast Beverage Distributors, which handles Miller and other brands: “We, along with other beer distributors in Florida, have launched a wine and spirits division to 'steal back' some customers who have migrated away from beer.” Distributors will continue to seek high-growth, high-margin complementary beverage products. Indeed, some may branch beyond beverages. Consolidation will continue apace, driven by rising costs and increased complexity. Industry consultant Michael Mazzoni earlier this year envisioned a scenario in which A-B distributors acquire their competitors.

Premiumization of light The initial success of Heineken Premium Light has sparked speculation that light beer – the biggest slice of the beer business and dominated by the big brewers – is due for a trading-up trend. Will other importers and craft brewers make this a reality? And how will the domestic brewers respond?

Consolidation Merger and acquisition activity in the new millennium transformed the industry by creating InBev, SABMiller plc and MolsonCoors. Consolidation is going to continue. The only question is who will be the next at the altar.

Next-Generation Imports Heineken and Corona Extra dominate the business, but a lot is happening beneath them. Which import brand will be the next sensation? Rising imports such as Stella Artois and Newcastle Brown Ale are close to cracking the top 10 imports list. Meanwhile, the major breweries are getting into the act. Anheuser-Busch, seeking to give its restricted wholesalers high-margin brands, has inked distribution deals for Grolsch and Tiger. Miller Brewing Company has been pushing SABMiller premium import brands Peroni Nastro Azzurro and Pilsner Urquell. Miller now is preparing to roll out additional SABMiller brands aimed at consumers who know them from the brands’ countries of origin — Aguila (Colombia), Cristal (Peru) and Cusquena (Peru). And Miller also is expanding distribution of the Polish brew Tyskie.

Cruising crafts After stumbling in the late 1990s, craft beers are back. Distributors can’t wait to get their hands on beers made by the hot New Belgium Brewery. The big brewers recognize the consumer demand for distinctive flavors and are hurrying to meet it. Anheuser-Busch has reached a distribution deal with Chicago’s Goose Island Beer Company and has rolled out seasonal craft-style brews such as Beach Bum Blonde Ale. Miller Brewing Company’s Jacob Leinenkugel Brewing Company has expanded its recently launched Leinenkugel’s Sunset Wheat outside its Upper Midwest stronghold. And Miller is ramping up efforts behind Henry Weinhard’s.

If you would like a subscription to the print version of Brew, please drop us an email.

What’s the Next Big Deal?

Beer Business Daily lays out speculative scenarios.

If you’re in the mood for intriguing speculation about the beer industry’s next major transformational deal, Brew Blog recommends Monday’s installment of Beer Business Daily.

A quick rundown of hypothetical scenarios:

SABMiller acquiring MolsonCoors. The trigger for this is a recent research note from investment bank Cazenove.

A-B loosening its exclusivity requirement so that its distributors can purchase Coors or even Miller wholesalers. BBD notes, “Nothing’s off the table at this point, but A-B isn’t ready to fold on the issue of exclusivity.”

A-B acquiring the Absolut brand. Brew Blog has reported on this matter at length.

A-B being purchased or merging. BBD says the most likely buyers would be Diageo or InBev. BBD publisher Harry Schuhmacher adds “I think at this point I have a better chance of being struck by an asteroid. But it could happen.”

Read the whole thing here (subscription required).

Brown-Forman Acquires Tequila Brand

Casa Herradura acquisition gives Jack Daniel's marketer more exposure in hot spirit category.

Brown Forman, marketer of Jack Daniels and Southern Comfort, spent $876 million to acquire Casa Herradura, the company announced yesterday.

Brew Blog previously reported Brown Forman was in the hunt for the Mexican tequila maker, along with Bacardi Ltd. and Pernod-Ricard.

Distillers were drawn to the brand because it was one of the last, big independents in the hot tequila category. Brown-Forman does market some regional and small super-premiumt tequila brands.

Wine & Spirits Daily wrote:

It seems like a lot to pay for a brand that is little known in the U.S., so why would B-F bother? For one, it allows the company to take on a new brand without having to build it from scratch, which can be a considerably risky move. Many large beverage companies take on niche brands to keep themselves from looking too big or too mainstream, while at the same time pushing sales with extended distribution networks and marketing.

Sapporo Bids for Canada’s No.3 Brewer

Ends months of takeover speculation.

Sapporo has reached an agreement with Sleeman to acquire the Canadian brewer for $300 million.

Sleeman, a distant No. 3 to Labatt (part of InBev) and Molson (part of Molson Coors Brewing Co.) has been evaluating strategic options since late spring.

A release announcing the deal can be seen here.

In a report Monday, Bear Stearns analyst Carlos Laboy laid out the implications of the deal for Molson as well as SABMiller plc, the parent of Miller Brewing Company.

Regarding Molson he wrote:

Molson will have to go forward with its current portfolio. By passing, TAP missed an opportunity to gain some scale versus Labatt or develop a closer working relationship with FEMSA – Sleeman distributes Sol & Dos Equis. Probably the smart call as TAP has its hands full in other markets and may not have the scale or management depth to handle a new project.

He made this observation regarding SABMiller:

SABMiller's decision to pass is not surprising to us. The company has shown little interest in acquiring low-growth, developed-market assets. However, the company is now essentially locked out of purchasing an asset in a major North American market. We expect Mr. Adami's efforts long term will now be focused on Latin America.

Molson Coors Bidding for Canadian Brewer, Says Report

Sleeman acquisition would give Molson Coors nearly half of Canadian market.

Molson Coors Brewing Co. is bidding for Sleeman Breweries, Canada’s largest independent brewer, according to a report by the Toronto Globe and Mail.

Sleeman, which has about 7 percent market share, has been exploring strategic options since May.

Molson, which brews Coors Light, is one of a number of brewers believed in the running for Sleeman. Others believed to be in contention include InBev (owner of Canadian brewer Labatt’s), Royal Grolsch NV and Sapporo Breweries Ltd.

The paper said SABMiller, owner of Miller Brewing Company, is not in the running.

If Molson or Labatts buys Sleeman, it would have about 49 percent share of the Canadian beer market.

The Rocky Mountain News reports that opinions are split on whether such a deal would raise antitrust concerns from Canadian regulators:

But Joseph D'Cruz, a professor of strategic management at the Rotman School of Management in Toronto, isn't so sure. He says regulators probably will launch an informal query. But since neither company would have undue share in any geographic region, and the loser still would have a significant share, a formal probe is unlikely.

"The two big players are very rivalrous, and there isn't any reason to believe that after this acquisition they would be any less rivalrous," D'Cruz said.

Seven-Year Itch?

Is the Corona distribution issue really settled, and for how long?

While most non-A-B distributors are breathing a big sigh of relief that A-B won’t be involved in the new national distribution joint venture between Barton and Modelo, different key players have expressed very different points of view about A-B’s potential influence on future distribution decisions.

Modelo Chairman Carlos Fernandez sounded the most conservative in a July 18 interview with BBD. Fernandez said, “We will continue working with most of the current distributors that are currently doing a great job with our brands in the United States.” He also said the established policy of choosing distributors would remain the same: All decisions on distributors will be made by the JV, i.e. 50-50 between Barton and Modelo. So, A-B indirectly could have a say in distribution rights for Corona.

In today’s BBD, Barton chief Bill Hackett confirmed that A-B wholesalers have been soliciting Barton for Corona brand rights in the East and West. Hackett said they will be looking at their current wholesaler relationships and making the decision that is “best for the business.”

A-B CFO Randy Baker told analysts yesterday, “We would expect (our wholesalers) will be considered (for Corona) in the future…,” pointing to the strong results that A-B distributors with Corona have demonstrated.

In its July 24 edition, Beer Marketer’s Insights quoted Sanford Bernstein analyst Robert Van Brugge, who said it was “highly likely” that Modelo will buy Barton parent Constellation, thus making A-B the majority owner directly in the enterprise making distribution decisions on Corona’s U.S. rights.

While seven years may seem far away, it could be well worth the wait for A-B. If Corona continues on its double-digit growth trajectory of the past decade, it will be the No. 4 brand in the U.S, approaching 17 million barrels.

Look for more on this brand-switching topic to be explored in greater detail in the new issue of Brew magazine, which is currently at the printer. The issue will come out in the second week of August. If you aren’t on our mailing list, let us know and we will get a copy of it out to you.

Announcement on Corona’s Future Expected “Soon,” Report Says

Barton likely to be in, A-B out.

Beer Business Daily reports it believes Barton Beers (a unit of Constellation Brands) and Grupo Modelo are “very close to coming to terms, if they haven’t already” on distributing Corona Extra and other Modelo brands in the eastern United States.

Under this scenario, Barton – which already handles Modelo brands in the western U.S. – would add the territory currently handled by Gambrinus, which lost its distribution rights this year.

The BBD story also discusses distributors’ concerns about inventory disruptions.

Anheuser-Busch is apparently on the sidelines. For months, rumors swirled that A-B was seeking distribution rights for Corona Extra as part of its “funnel” strategy to bring imports to its restricted wholesalers who have not participated in the import surge.

Nabbing Corona would have been a coup for A-B. But it appears, at least for now, that it’s not to be.

One quibble with Harry’s story: He describes – accurately – how important Corona is for many of its distributors. But he goes on to say this:

But we don’t think Miller or Coors sees it that way. Corona, to them, is a competitor, and it is a brand that often sucks the oxygen out of a distributor’s focus on their lower margin domestic mainstream brands.

Brew Blog suspects brewers always want to get as much focus as possible. But Miller also has acknowledged that the fact its distributors handle imports has been a source of strength for them and – by extension – Miller.

At the Miller Distributor Conference this spring, none other than Miller President and CEO Norman J. Adami said:

Today, years of entrepreneurial street-fighting and resourceful portfolio management have put you in a far better position than the local A-B distributor across the street … a local competitor who is now finding out just how challenging life can be when the Clydesdales stop laying golden eggs for them. And suddenly, almost overnight, most of you have never been in a better competitive position relative to your local A-B counterparts than you are right now … with far less exposure to the effects of the discounting … and a far greater access to the fastest-growing segments of the industry.