Dear Client:
The fact that Bang has to come back to beer wholesalers, having allegedly “fired” Pepsi from an exclusive distribution agreement, and apparently wanting to launch a hard seltzer — well, it ain’t gonna be without significant concessions from Bang. That’s clear, from distributors who are already being courted again by the bombastic company.
And there are some potential legal landmines to navigate, too.
Consider this take from an industry insider:
“Post Bang, many A-B wholesalers back-filled with C-4, and I suspect you might find many also agreed to C-4’s energy drink exclusivity requirement,” they shared with BBD.
“Also, Bang made overtures toward terminating several A-B wholesalers for cause on the way out, wanting to avoid the no-fault termination buyouts. So, the A-B network appears unlikely, even though a beer wholesaler can swallow a lot of pride for depletions and margin. The MC network knows how Bang treated AB. You can bet your ass I will buy a new red pen if a Bang agreement hits my desk again.”
SURVEY SAYS… BANG CONTRACTS NEED REVISION. Indeed, we asked a couple of distributors who had been burned during Bang’s exodus from the beer wholesaler world if they’d take Bang back. This answer, from a Molson Coors distrib, says it all:
“Sure!” wrote one distributor.
“Not for a price and now that we’ve added another well-known energy supplier, it would have to be on our terms. We have 80% of the hard seltzer business already so I’m not sure what Bang brings there yet but I’d rather have a shot at it than my competitor.”
Here’s another Molson Coors distributor: “We represented them before and are open to it but with caution on the agreement and related terms.”
On the other hand, a much more jilted A-B distributor (naturally, considering how Bang treated that network before) had a much bigger “but” before they’d get to any sort of “yes.”
Indeed, this source offered confirmation that Bang is actively trying to win them back:
“As you mentioned in an earlier article, I’d love to replace the lost GP BANG provided. I’m still pretty bitter about how they handled my termination but agreed to consider bringing BANG back pending details. My thought was, if I could get myself past the termination, I’d be happy BANG was part of my portfolio today. 2 years from now, with BANG contributing the way it did before, the sting would be gone and I’d be happy to have the brand again.
“That said, there is absolutely NO WAY I’m able to sign the agreement they sent me. Add to it, I have no desire to jump in the middle of this pending BANG/Pepsi fight. So, at this point our discussions over the past 3 weeks have been a waste of time…I’m a NO without SIGNIFICANT changes to their new distribution agreement and complete certainty that distributing BANG won’t create a legal problem for me down the road.”
REX CASE FINALLY RESOLVED
After nearly four years of litigation, the Rex – Adams – Yuengling – AB – Mitchell distributor situation in Mississippi has finally been settled. All of the parties have taken their balls and gone home, and it is settled.
Recall, Two days before A-B/Yuengling Rex Distributing’s sale to Adams Distributing (also A-B and Yuengling) was to close, A-B informed Rex it was exercising a right under the distribution contract to “match and snatch” the sale of Rex and direct it to another distributor of its choosing, in this case A-B distributor Mitchell Distributing. Yuengling terminated Rex and diverted to FEB Distributing. Rex sued, and it went through various courts with all sides winning some and losing some. Now it’s been resolved “amicably.”
As A-B told BBD: “Rex Distributing, Mitchell Distributing, Anheuser-Busch, and Yuengling have reached a global resolution of all the litigation pending among them in Mississippi.”
“We’re happy that we’re friendly with everybody around the board,” said Adam Mitchell of Mitchell Distributing.
MITCHELL QUIETLY GREW BUSINESS
Meanwhile, Mitchell Distributing spent the time growing their business. “We’ve done really well,” Mitchell’s Evan Athanas told BBD. “It’s a great growth area of the state.” They’ve centralized shared services among their branches, and have acquired more cases. On the coast they increased case volume by 15% by adding Keurig Dr Pepper right before Covid. Also, recall six years ago they purchased a piece of Winner Distributing, and recently bought out the rest of that company from Mark Winner. And they purchased the Constellation brands from Better Brands, (the other brands went to Clark Beverage). In all, it’s been 5 transactions in six years, tripling volume, and “looking for more.”
MOLSON COORS ADDING 377 JOBS TO MILWAUKEE
It’s looking like Molson Coors is going to meet their goal to add 377 jobs to Milwaukee by the end of the year. So far, the company has added 225 jobs in the city, reports the Milwaukee Journal Sentinel.
The additions are part of a larger plan announced in late 2019 to close their Denver office and move jobs to Milwaukee.
All of the new jobs will be salaried, white-collar positions in Miller’s offices in Milwaukee, with wages averaging out to about $57 per hour, according to a report to Wisconsin’s economic development agency. If every position is added and no current office jobs are lost, MC could qualify for $25 million in state tax credits over eight years, the Sentinel notes.
The new jobs mark 33% employment increase over the current 540 corporate positions and 601 brewery positions at its offices and brewing facilities in the city. MC also has 46 positions at its smaller brewery in Milwaukee in addition to 90 others at nearby Leinenkugel Brewing and Watertown Hops locations.
MILLER LITE LAUNCHES NEW AD WITH ARTIST ALEX PRAGER
Miller Lite is celebrating the end of holiday office parties in its latest ad spot, created alongside acclaimed visual artist Alex Prager.
The spot features a series of scenes of life-like sculptures modeling awkward scenarios at work holiday gatherings, like “the co-worker wearing a wreath, the close-talking colleague, the crying co-worker, and even the catered meals,” per the company’s blog.
“Most workers have mixed feelings about the company holiday party, and the silver lining is canceled holiday parties means more time for Miller Time, those meaningful moments with close friends and family,” says Miller Lite’s VP of marketing, Sofia Colucci. “Now Alex Prager is lending her unique perspective to show the contrast between forced fun and the authentic interactions that Miller Time is all about.”
The characters from the ad will be part of a Miller Lite-sponsored art exhibit at the Los Angeles County Museum of Art (LACMA), on display from Saturday through January 3. The exhibit is free to the public and will be available virtually.
Until tomorrow,
Harry, Jenn and Jordan
“We make a living by what we get, we make a life by what we give.”
– Sir Winston Churchill
———- Sell Day Calendar ———-
Today’s Sell Day: 16
Sell days this month: 21
Sell days this month last year: 21
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: 0
