A-B InBev reported its third quarter earnings on Wednesday with trends consistent with what we saw in the previous quarter.

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Management comments:

In the United States:
• Volumes: Following three challenging years, the industry has shown encouraging
improvement in 2012, driven by good weather in 1Q12 and innovations throughout the year. We estimate that industry selling-day adjusted STRs declined by 0.4% in 3Q12, but grew by 0.3% in 9M12. The trend of our own selling-day adjusted STRs has also improved this year. Our STRs declined by 0.9% in 3Q12 but are down by only 0.2% in 9M12

Our market share trends also continue to show solid improvement, with estimated share, based on STRs, down by only 23 bp in 3Q12 and by 26 bp in 9M12. Share gains in the quarter were led by Bud Light Platinum and Bud Light Lime Lime-A-Rita which resulted in the Bud Light family gaining approximately three-quarters of a share point in 3Q12, reaching an estimated 21.5%. Michelob Ultra and our high-end brands also grew share, led by Stella Artois and Shock Top, the latter achieving growth in STRs of almost 70% in 9M12.

These gains were offset by share losses due to a decline in the value segment across the industry, as well as a decline in premium regular, including Budweiser
Shipments to wholesalers (STWs) were up 1.5% in the quarter and ahead by 0.1% in 9M12.

• Focus Brands: The Focus Brands strategy is working well in the US. STRs for the Bud Light family grew by 3.2% in 3Q12 and by 3.6% in 9M12, driven by Bud Light Platinum and Bud Light Lime Lime-A-Rita. Michelob Ultra STRs grew by 7% in both 3Q12 and 9M12, while Stella Artois STRs grew by 17% in 3Q12 and by 19% in 9M12. Budweiser STRs declined by 7% in 3Q12 and by 6% in 9M12, partly due to a shift in retail execution focus to our innovations

• Renovations and innovations: During the quarter we rolled out new 22oz bottle and 12oz bottle/18 pack presentations for Bud Light Platinum, to supplement the existing 6 and 12 packs. We estimate that the brand has achieved a market share, based on STRs, of over 0.9% since launch at the end of January.

Bud Light Lime Lime-A-Rita was rolled-out in April and has quickly become one of the fastest growing brands in the industry, second only to Bud Light Platinum. The brand has achieved over 80% distribution in the off-trade, achieving an estimated market share of over 0.4%, based on STRs, in 3Q12. Initial research shows that over 40% of the brand’s volume is being sourced from hard liquor and other beverages outside the beer category

• Revenue management: Revenue per hl remains strong, growing by 5.7% in 3Q12. This includes approximately 200 bp of favorable brand mix driven by the growth in Michelob Ultra, Bud Light Platinum, Bud Light Lime Lime-A-Rita, Shock Top, Stella Artois and our other high end brands, as well as consumer trade-up from our value brands. There was also some benefit from own distribution, which is partly offset by an increase in transport costs

We continue to see good momentum in our US business, supported by a solid
commercial plan, a healthy innovation pipeline and good revenue per hectoliter
performance. In the US we expect growth in STWs in 4Q12, with absolute STWs and STRs for FY12 closely aligned.

Budweiser:

• Budweiser global volumes remain healthy, growing by 6.2% in both 3Q12 and 9M12

• In the United States, the Budweiser performance in 3Q12 was below our expectations although we continue to see encouraging brand consideration results in the important 21-27 year-old age group. We will continue to work hard to stabilize market share. In 3Q12 the brand was supported by both the “Budweiser Made in America” Music Platform and our enhanced Major League Baseball (MLB) programs. During the quarter we also renewed our sponsorship of MLB until the end of the 2018 season.

• Stella Artois grew by 5.0% globally in 3Q12, mainly driven by results in the US. In 9M12, Stella Artois is ahead by 0.7%

• In the US, the brand continues to show strong growth with STRs up by 17% in 3Q12 and 19% in 9M12

• Social media continues to increase its role in our brand development and consumer connection strategies, providing opportunities to forge deeper connections with our consumers. At the end of 3Q12 our brands had attracted 60 million fans to our social media pages and consumer databases, an increase of nearly 50% since the second quarter. Also during the third quarter, Budweiser became the largest social beer brand in the world. Many of our local champions have also emerged as the number one beer brand in their respective
markets, including Quilmes in Argentina, Skol in Brazil and Bud Light in the US. On October 9th, Bud Light crossed the 5 million Facebook fan mark and celebrated with a billboard in Times Square to thank the brand’s loyal fans.

Press Release:

(Fort Collins, CO) – New Belgium Brewing’s Lips of Faith Series is rolling out its fourth and final round of Lips of Faith beers for 2012. The selections are Imperial Coffee Chocolate Stout and Biere de Garde, a collaboration ale with Michigan-based Brewery Vivant.

New Belgium recently began selling its products in Michigan, affording the opportunity to collaborate with Grand Rapids-based Brewery Vivant. The breweries first worked together to create Escoffier, which was met with high regard, and now they’ve created a beer for the Lips of Faith series. The bright and refreshing Biere de Garde ale has a citrus bite from the peels of oranges and bergamots, reinforced with Sorachi Ace hops. The copper-colored beer is brewed with pale malt, oats for creaminess, and a hint of clove from Vivant’s house yeast, which brings a spicy bite to the finish. Alcohol by volume: 9%.

To read more about the friendship that has formed between the breweries, visit http://www.newbelgium.com/Community/Blog/12-09-13/Dear-Brewery-Vivant.aspx and http://www.breweryvivant.com/index.php/blog/.

Another match made in heaven – coffee and chocolate – is showcased in New Belgium’s other Lips of Faith selection, Imperial Coffee Chocolate Stout. This strong stout is packed with Fort Collins’-own Cafe Richesse espresso, brewed with roasted barley and Midnight Wheat Malt, and spiced with fair trade cocoa nibs. The beer is an extra dark color with a mocha-colored head. Alcohol by volume is 10%.

“Lips of Faith has become a perfect venue for collaborating with brewing brethren around the country,” said New Belgium brewer Grady Hull. “We’ve always been inspired by Brewer Vivant’s beers and this collaboration speaks to our mutual respect.”

“Our Imperial Stout answers the call for beer drinkers seeking the rich, full character of a coffee stout,” added Hull. “The coffee and chocolate combine to offer a bold flavor with a warming brace of alcohol for those cold winter months.”

Imperial Coffee Chocolate Stout and Biere de Garde will be available in November within select markets. Pricing varies by location.

The Lips of Faith series features New Belgium’s more esoteric and palate-elevating creations. The beers are only available in certain locations and for about three months, or as long as supplies last.

To find New Belgium beers in your area, you can use the New Belgium Libation Location tool: http://www.newbelgium.com/beer.aspx. You can also follow New Belgium on Facebook at http://www.facebook.com/newbelgium and Twitter @NewBelgium.

About New Belgium Brewing Company
New Belgium Brewing Company, makers of Fat Tire Amber Ale and a host of Belgian-inspired beers, began operations in a tiny Fort Collins basement in 1991. Today, the third largest craft brewer in the U.S., New Belgium produces nine year-round beers; Fat Tire Amber Ale, Sunshine Wheat, Ranger IPA, Belgo IPA, Shift Pale Lager, Blue Paddle Pilsner, 1554 Black Ale, Abbey and Trippel, as well as a host of seasonal releases. In addition to producing world-class beers, New Belgium takes pride in being a responsible corporate role model with progressive programs such as employee ownership, open book management and a commitment to environmental stewardship. For more information, visit www.newbelgium.com.

[Photo credit: Heavy Seas barrels by Krossbow]

(Baltimore, MD) – Just received the following information from Heavy Seas Beer. Big changes to the portfolio are in store for 2013.

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A number of modifications have been made to the 2013 portfolio to better reflect the Heavy Seas’ brand and its focus, including: an overhaul of our Mutiny Fleet beers; preliminary plans for canned beers; expanded cask ale offerings; changes to select year-round products; and a new seasonal beer.

The biggest change Heavy Seas has in store for 2013 is the repositioning of our line of higher gravity beers (the Mutiny Fleet). This line will now be known as the Uncharted Waters line and all of the beers under that category will be influenced by wood in one way or another. Siren Noire Imperial Chocolate Stout aged in bourbon barrels will come out in January 2013. In March, we will release Oak Aged Big DIPA (double IPA). Holy Sheet Über Abbey Ale aged in brandy barrels will be released in May. Great’ER Pumpkin (our imperial pumpkin ale aged in bourbon barrels) will be released in September. Yule Tide, our November release, will take the place of our ongoing Plank project—aging beers on wood. That style will be determined closer to November of 2013.

We have preliminary plans to release three products in cans in 2013. While we haven’t determined availability at this juncture, we will be offering Loose CANnon, Davey Jones’ Lager, and an Oktoberfest style in cans next year.

As the largest producers of cask ale in the country, Heavy Seas is focused on expanding the number of offerings for retailers. We will continue to offer dry-hopped firkins of Loose Cannon and Powder Monkey (pale ale) year-round. We will also incorporate preset quantities of all seasonal beers and Unchartered Waters beers.

Year-round, we will continue to offer Loose Cannon, Small Craft Warning, and Peg Leg. In order to better reflect our brand personality, we have renamed our Clipper Fleet beers: Heavy Seas Märzen will now be Cutlass Amber; Heavy Seas Pale Ale will now be Powder Monkey; Heavy Seas Gold Ale will now be Gold. Heavy Seas Classic Lager will be discontinued.

Seasonally, we will offer Black Cannon in January through March. We wanted to add a new style to our seasonal catalog, therefore Dubbel Cannon will be replaced by Riptide White IPA, which is currently in formulation; Riptide will be offered April through June. Red Sky at Night, our saison, will be offered July through September. Winter Storm Imperial ESB will be offered October through December. Additionally, the new seasonal lineup will include 12 oz. bottles of Great Pumpkin, offered in Sunken Sampler packs exclusively in August and September.

[Credit: brostad on Flickr (via Creative Commons)]

Press Release:

(Cincinnati, OH) – Colorado-based Oskar Blues Brewery, the first craft brewery in the country to put craft beer in a can in November 2002, continued its red-hot new-market rollout plan by distributing 14,000 case equivalents in the first week in Ohio.

The partnerships with Superior Beverage Group and Stagnaro Distributing produced over 4,000 points of distribution and more than 400 draft handles in the Cincinnati, Cleveland and Columbus distribution areas marking the brewery’s largest roll out to date.

“Ohio is a great beer state,” said Curt McCamon, chief operating officer of Superior Beverage. “We had fantastic support from our customers from day one and once they had the opportunity to meet with the Oskar Blues crew and taste the incredible craft beer in a can they were quick to get on board.”

“We are very pleased with our first week of sales,” said Mike Stagnaro, President of Stagnaro Distributing. “Thanks to the tremendous support and efforts of our distribution teams, Oskar Blues Brewery and our valued retail customers, Oskar Blues craft beers ‘CAN’ now be found throughout the Greater Cincinnati/Northern Kentucky marketplace.”

The record setting Ohio/Northern Kentucky roll-out followed similar successes in Alabama and Chicagoland earlier this year.

Oskar Blues recently posted a 53 percent increase in revenue and 48 percent increase in depletions in its established markets over the first six months of 2012. They were also named one of the “Biggest Momentum Gainers” on the Brewers Association annual Top 50 Craft Brewers List this past spring and included on the Denver Business Journal’s “Fastest Growing Private Companies Listing” in August.

Oskar Blues has grown to become the largest American craft brewery to package beer exclusively in cans, producing 59,000 barrels of beer in 2011, and is on pace for 90,000 barrels in 2012.

The outdoor loving brewery will begin brewing at its new Brevard, NC location and taproom in December 2012. The small town will also be home to a separate restaurant and live music venue as well. The addition of the 30,000 sq. foot Brevard brewery is expected to brew 40,000 barrels in 2013 and increase brewery capacity to 140,000 BBLS.

About Oskar Blues Brewery
Founded by Dale Katechis in 1997 as a brewpub and grill, Oskar Blues Brewery launched their craft-brewed beer canning operations in 2002 in Lyons, Colo. They were the first American craft brewery to brew and can their beer. Today there are more than 180 craft breweries canning their beers. The original crew used a hand-canning line on a tabletop machine that sealed one can at a time. Oskar Blues Brewery in Longmont packaged 41,000 barrels in 2010 and grew to 59,000 in 2011. Visit www.oskarblues.com for more information.

About Superior Beverage Group
Superior Beverage Group is a family-owned business with roots dating back to 1922 when Marion N. Antonucci formed the Superior Wholesale Grocery Company in Youngstown, Ohio. Shortly after the depression, Marion decided to go into the wholesale beer and wine business and established the Superior Beverage Company. From the late 1940’s until 1984, the company prospered under the leadership of Marion’s son, John (Jack) R. Antonucci. Under the leadership of current chairman, John M. Antonucci, the company has expanded from its Youngstown roots into several new markets including: Akron, Steubenville, Canton, Mansfield, Columbus and Cleveland. For more information, visit www.superiorbeveragegroup.com.

About Stagnaro Distributing
Stagnaro Distributing is a full service beverage distributor servicing Southwest Ohio and Northern Kentucky. The companies represent a variety of import, craft and domestic brands from supplier partners around the world. For more, visit www.stagnarodistributing.com