sold over fifty beers under the Samuel Adams® or the Sam Adams® brand names, seven flavored malt beverages under the Twisted Tea® brand name, three hard cider beverages under the Angry Orchard™ brand name and one hard cider under the HardCore® brand name
produces malt beverages and hard cider at Company-owned breweries and under contract arrangements at other brewery locations [more contract manufacturing]
After the end of Prohibition, most domestic brewers shifted production to less flavorful, lighter beers, which use lower-cost ingredients, and can be mass-produced to take advantage of economies of scale in production. This shift towards mass-produced beers coincided with consolidation in the beer industry. Today, two major brewers, Anheuser-Busch InBev (“AB InBev”) and MillerCoors LLC (“MillerCoors”), comprise over 90% of all United States domestic beer production, excluding imports. [yep, it’s a duopoly]
Samuel Adams® is one of the largest brands in the Better Beer category of the United States brewing industry, trailing the imports Corona® and Heineken®.
in 2011 the craft beer category grew approximately 12% to 14%, while the Better Beer category was up approximately 6%, while the total beer category was down approximately 1% to 2%.The Company believes that the Better Beer category is approximately 20% of United States beer consumption by volume.
decline is due to declining alcohol consumption per person in the population, drinkers trading up to drink high quality, more flavorful beers and increased competition from wine and spirits companies. [bacardi breeze?]
The Company’s Twisted Tea product line competes primarily within the flavored malt beverage (“FMB”) category of the beer industry. FMB’s, such as Twisted Tea, Smirnoff Ice®, BacardiSilver® and Mike’s Hard Lemonade®, are flavored malt beverages that are typically priced competitively with Better Beers. The Company believes that the FMB category comprises approximately 2% of United States beer consumption.
The Company’s Angry Orchard and HardCore product lines compete within the hard cider category. Hard ciders, such as Angry Orchard, HardCore, Woodchuck®, Hornsbys®, Strongbow® and Magners®, are typically priced competitively with Better Beers. The Company believes that the hard cider category comprises approximately 0.2% of United States beer consumption
sells its products to a network of approximately 400 wholesale distributors.
With few exceptions, the Company’s products are not the primary brands in distributors’ portfolios.
Historically, wholesalers carry three to five weeks of packaged inventory (usually at ambient temperatures) and three to four weeks of draft inventory.
sales force of approximately 300 people,
Noble hops are rare and more expensive than most other varieties of hops. Traditional English hops, namely, East Kent Goldings and English Fuggles, are used in most of the Company’s ales [Germany, Czech Republic, England]
The brewing and packaging agreements with MillerCoors and Nestlé Professional Vitality are expiring during the first quarter of 2012 and the Company does not expect them to be renewed.
the Company estimates there are approximately 770 shipping craft breweries, up from approximately 420 craft breweries in 2006. [wow, what a boom for the *sellers* of equipment] There are also an approximately 800 new craft breweries in planning stages that will likely result in an additional 300 or more shipping craft breweries in next 2 to 3 years. [bubble? lot more competition anyway] Also, existing craft breweries are building more capacity, expanding geographically, adding more SKUs and styles as distributors and retailers are promoting and making more shelf space available for more craft beer brands.
employed approximately 840 people, of which approximately 72 were covered by collective bargaining agreements at the Cincinnati Brewery. ”
Madeleine doing her Billie impression on one of the great old George Cory & Douglass Cross songs … I like Billie’s version too but, as usual, think that Nina Simone’s is best (her version of the lyrics below).
I’ll look around and when I’ve found me somebody
Who laughs like you
I know somewhere spring must fill the air With sweetness just as rare As the flower that you gave me to wear So I’ll look around, sweetheart, and when I’ve found me somebody Somebody who laughs like you I’ll know this love that I’ve been dreaming of And it won’t be the old love that I always knew
“Topics are incredibly unimportant to [the Coen brothers] — it’s structure and style and words. If you ask them for their priorities, they’ll tell you script, editing, coverage, and lighting.”—Barry Sonnefeld
“one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America
focused on minimizing retailers’ investment in inventory, while seeking to maximize their sales
Manufacturers benefit from our broad retail coverage, inventory management and efficient processing of small orders. Convenience retailers benefit from our distribution capabilities by gaining access to a broad product line, optimizing inventory management and accessing trade credit.
total in-store sales at convenience retail locations … approximately $190.4 billion and were generated through an estimated 146,000 stores across the U.S.
he number of convenience stores in the U.S. grew 1.2% in 2011 to approximately 148,000 stores. We estimate that approximately 50% of the products that these stores sell are supplied by wholesale distributors such as Core-Mark.
The products we distribute include cigarettes, other tobacco products, candy, snacks, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise and health and beauty care products.
Our traditional convenience store customers include many of the major national and super-regional convenience store operators, as well as thousands of multi- and single-store customers. Our alternative outlet customers comprise a variety of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college bookstores, casinos, movie theaters, hardware stores, airport concessions and other specialty and small format stores that carry convenience products.
We distribute in excess of 45,000 Stock Keeping Units (“SKUs”) of packaged consumable goods
Cigarettes comprised approximately 70.4% of total net sales in 2011 [lot of cigs, 32% gross profits]
approximately 68.3% of our gross profit was generated from food/non-food products. [lot of profit in little bags of Cheetos and nail clippers and “other tobacco”]
the ability to service large national chain accounts
capitalizing on the highly fragmented nature of the distribution channel that services the convenience retail industry
Core-Mark sells about 50% of what a convenience retailer purchases from their vendors [consolidation and simplifying the supply chain]
there is an increasing trend among consumers to purchase fresh food and dairy products from convenience stores.
78% of sales are cigs and other tobacco … other tobacco listed as a ‘non-food product’
we anticipate overall cigarette consumption will continue to decline, we expect to offset the majority of the impact from these declines through market share expansion, growth in our non-cigarette categories and incremental gross profit that results from cigarette manufacturer price increases.”