A great day for my first post, it all starts with AB’s third quarter financials that were released yesterday. Always important because it gives us an indication of where half the market is heading, here are the key takeaways:
- Total revenue up 4.5%; total volume up .2%; EBITA +7.5%.
- US revenue +1.5%; volume continuing to decline, down -.5%; EBITA -1.9%.
- Beer continuing to lose share of throat to wine and spirits in US.
- Bud, Corona and Stella leading global brand growth, +6.4%, +5.7% and +10.6% respectively outside of home markets.
- Ultra continues to shine. Nearly a 10 share in the Southern US, with big dog Texas leading the way.
- Market share in the US down 50 bps this quarter, down 45 bps this year.
- Rebasing, or cutting, dividend in half to claw back $4 billion for debt, warning that dividend growth will be modest in the future because of said debt.
- Bright spots are Latin America and South America because of premiumization and price increases; Asia because of the high end growth.
- Shares were off nearly 10% in trading Thursday afternoon to under $75, a six year low.
- Debt stands at $109 billion due to takeover of SABMiller a couple years ago.
Now my take. I’m looking at this from the outside in and that’s easy without anything to risk financially. I’m no genius, far from it LOL, but I think AB should consider the following:
- The dividend has got to go in the short term. You’re the largest beer company in the world. Focus on the synergies, but give yourself a little breathing room where you can. The loyal shareholders will always be faithful, they know their payday is coming.
- Give a little more share of mind to what got you here. Bud, Bud Light, Mich, Busch, Natty. New products are fun and a nice distraction from the ordinary, but most are temporary. They come and go. Distributors start to lose focus on the real issues.
- Make less investments in craft brewers. I know that craft is the future, but the public is not fooled. Sooner or later, the customer finds out who owns these brands. It’s all about local ownership and the little guy these days.
I liked that Brito said going forward they would take a more local approach, giving regional teams the autonomy to leverage local market knowledge. He also spoke about hyper-local commercial initiatives in Philly and Cleveland – this is where everyone is going.
$109 billion in debt is massive. They should consider selling off more brands to cut debt faster. They’re gonna need to do something, their commitment to net debt is 2x. I believe they’re at 4.6x, setting off a loud alarm – over 3x is where folks get nervous.
Beer Domain Name Picks
In the second part of my daily post, I feature a curated list of today’s expiring domain names. I research the domain name aftermarket and drop lists everyday to find the best domain names for beer, wine and spirits companies including breweries, wineries, distillers, distributors, retailers, vendors, etc., even cannabis companies. You never know, your company’s perfect domain name may be on the list and you can acquire it cheap in the aftermarket.
Click on the links below to see the current price: (I am not including hyperlinks the first week because I’m still getting my process down. The domains below are expiring at GoDaddy and NameJet today, if you have any questions about a domain please email me – email@example.com – and I can help you get it.)
Beer Distro Domain of the Day: GreatPair.com – My favorite domain on the list. Wine or beer and food pairing site. Terrific marketing domain name for breweries or distributors to pair their brands with food.
Today’s GoDaddy Expiring Domain Names for October 26, 2018
LocalSourcing.com – Great name for a website about sourcing local products and supporting your community.
OverIce.com – Catchy advertising slogan or tagline for a cocktail.
LocalPilsner.com – Memorable name for a Pilsner, it’s all about marketing around your home base. I like it because you could promote this brand as a local brand anywhere.
OurCode.com – Let everyone know what you stand for.
RetailProjects.com – Good for a brewery retail calendar; let distros know retail plans ahead of time.
AreYouLost.com – Short and catchy; fun programming for small brewery.
MoonPetal.com – I see IPA or Hazy all over this one.
NameJet Auctions Ending Today October 26, 2018
DeltaValley.com – Great distributor name here. Delta Valley Beverage or Delta Valley Distributing.
DancingLeaf.com – I guess from seeing so much Turning Leaf. Flat out, great domain for a Cannabis brand.
HighLion.com – Short and memorable brand name.
Racetown.com – I love this name for a convenience store chain.
FairAlliance.com – I like alliance names for beer distributors; when you add fair to it, it sounds respectable. Alliance, quality, premium, allied, major, superior, etc.
EasternMystic.com – Another IPA name.
StormDragon.com – Now, this is a brand name. Storm Dragon Malt Liquor, Storm Dragon Barley Wine. I can sell this stuff.
StrawberryValley.com – There is a Strawberry Valley in California. Nice brand name, kind of long to use as domain, though.
DedicatedLogistics.com – Awesome domain name for a trucking company. I’m a bidder here.
Effendi.com – This is a title of respect in the Mediterranean and Middle East. Great brand name for a wine label from that region.
LongWide.com – I’ve driven from Mississippi to Las Vegas a couple times. Now that is a long wide, LOL.
TexasMud.com – I’ve had my fill of Mississippi Mud, is Texas Mud good, too?
BrewGift.com – I guess this could be brand or brewery reward program, but there could definitely be legal issues.
BrewGiftcard.com – Same here for giftcards. Catchy and memorable, that’s what it’s all about.
CoolingSolutions.com – Great domain name for HVAC or refrigeration companies. Or, how about a marketing program for cold beer?
Tassets.com – It’s a word and that’s what matters. These are plates of armor that hang from the breastplate, covering the thighs on a suit of armor. Pretty cool name – short, easy to spell, easy to remember. Just what you’re looking for in a brand – Tassets.com/Tassets Brewing Company – a memorable one-word domain to identify your brand.
Gangling.com – Tall, thin and skinny. It’s a word. One-word dotcom’s are hard to come by these days.
FreshFloral.com – This one has Canna written all over it. Great name.
There you go, the first Beer Distro newsletter is in the books. Hopefully, it’s the first of a few thousand, but let’s not get ahead of ourselves. I hope you enjoyed it. I’m going to try to keep the posts simple at first.
First, I’ll write about the beer industry, then about beer industry related domain names – with lots of wine, spirits and cannabis sprinkled throughout. My objective is that I write about topics that inform to help you sell more products and make more money. Hope you enjoyed the news and the domains! See you tomorrow.