On-trade drinking: US market to grow at just 1.3% CAGR

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Diageo: it's good, but not that good

Diageo [DEO] will see profits rise 6%, compared to its original target of 8-10%. This isn't surprising. As the market leader in a low-growth industry, Diageo cannot maintain near double-digit growth levels. Last year's 9% figure was due to Smirnoff Ice's US success - and it's becoming clear that the malternative's meteoric rise was a one-off.<BR /><BR />

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Starbucks: Japanese ideas could cross to US

Shareholders of Starbucks Coffee Japan [STBJF.PK] have approved a change to the corporate charter allowing the sale of alcohol at any outlet. The move comes alongside the debut of a series of new products aimed at reviving sales. Successful introductions could well translate into new offerings in the US.<BR />

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Interbrew: Green light for low carb beer

The maker of Rolling Rock is preparing to launch its light beer offering, Rock Green Light. The product follows rising demands for low carbohydrate products by health conscious consumers. Restaurants are also increasingly trying to get a piece of the pie with innovative low carbohydrate offerings and the trend for such products looks set to make a big impact.<BR />

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High-carb foods: fighting the low-carb craze

The food industry is getting ready to fight the surging popularity of low-carb diets with multi-million dollar marketing campaigns that tout the nutritional benefits of various high-carb foods. While such campaigns might help lift depressed sales they are unlikely to stop the low-carb craze.

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Molson: going for gold

The 2004 Summer Olympic Games are just around the corner and CPG companies are hustling hard for the spotlight. Molson's [MOLA.TO] sustained guerilla marketing has now significantly impacted Labatt's longstanding relationship with the Olympics, highlighting the difficulties of exclusivity deals with the enormous and unpredictable event.

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V&S Group: cutting through the clutter

After experiencing phenomenal growth during the early days, manufacturers' and consumers' enthusiasm for the RTD market has since waned, especially in recognition of growing market clutter. However, the V&S Group's focus on taste and image in designing Absolut Cut should ensure a positive reception, particularly in Europe.

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SABMiller / Anheuser-Busch: see you in court?

SABMiller [SAB.L] may be backing down a little in its fight against Anheuser-Busch's [BUD] marketing, but dropping the case altogether could be less than ideal for both sides. The legal battle has made interesting news, and increased media coverage has resulted in greater consumer awareness of both brands. This may conceivably boost sales of both of their beers.

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Molson: family dispute leaves future uncertain

While Molson [MOLA.TO] has been a Canadian brewing icon for 218 years, board-level arguments, poorly performing subsidiaries and lackluster North American sales have raised question marks over the company's future. It may yet need to form a partnership with a larger rival to compete in an increasingly consolidated beer market.

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Pittsburgh Brewing Co: brewing new beer bottles

The new Iron City aluminum beer bottles are expected to achieve success through their prolonged beer-cooling properties and unbreakable design. However, the higher price charged for these beers means that the majority of sales will come from image-conscious rather than practical-minded consumers.

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